U.S. State Department's Directorate of Defense Trade Controls
("DDTC") has proposed new rules that would authorize exports to
Australia, Canada and the UK of items controlled by the International Traffic
in Arms Regulations ("ITAR"). The new Australia and UK rules would implement
U.S. treaties with those countries that were entered in 2007 and ratified in
2010. For Canada, the new rules would simplify a significant existing ITAR
following summarizes the main aspects of the proposed new rules:
recipients and U.S. exporters would generally also be permitted to transfer
exported ITAR items to authorized recipients in Australia. Reexport authority
would be limited essentially to certain Australian defense programs.
new rules would also impose limitations on the intermediate consignees that
could be involved and a thirty-day waiting requirement before exporting
particular sensitive items. Companies would also need to mark their exports as
being made pursuant to the exemption, keep records and make certain reports.
ITAR generally restrict the export of items that were specifically designed or
modified for a military or space application and related technical information
and services. A key issue in determining how useful the new authorizations
would be is whether a company's activities would be carved out in the new
proposed supplement listing items, data and services not covered by the
authorizations. Another key issue for Australia and the UK will be whether DDTC
authorizes a company's intended customers and partners in those countries.
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