Guidance

AUKUS - exemption from U.S. ITAR regulations

Published 17 September 2024

The U.S. government approved the new ITAR 126.7 exemption on 16 August.

This removes the requirement for U.S. ITAR licenses or other approvals for the export, re-export, re-transfer (in-country), or temporary import of Defence articles, the performance of defence services or engaging in brokering activities.

To be exempt, these activities must occur between or among AUKUS nations and persons within the Authorised User Community (AUC), which officially commenced on 2 September 2024.

AUC membership

The AUC is a group of persons approved to make use of the U.S. ITAR 126.7 exemption.

The MOD’s initial priority is to establish government-to-government transfers; and manage applications for onboarding the initial industry pilot group members and AUC members under the UK-U.S. Defence Trade Co-Operation Treaty (DTCT). 

Any potential UK applicant involved in the handling of ITAR-exempted items will need to join the AUC to realise the benefits of the exemption. This includes intermediate consignees, logistics providers, and providers of raw materials if they are handling items which appear on the United States Munitions List (USML). They should also consider joining the AUC if they are likely to re-transfer U.S. AUKUS-exempted items between AUC members in the UK.

Potential AUC applicants

The UK Ministry of Defence (MOD) requires potential AUC applicants to arrange the completion of an Expression of Interest (EOI) form by a senior responsible official with have the suitable authority and knowledge to represent their organisation. This will enable a better understanding of applicant volumes and allow the onboarding process to operate efficiently.

The EOI response will be automatically submitted to the International and Industrial Cooperation Team (IIC team) who will review it. Once validated, the team will then contact your responsible officer with the expected application processing timeline.

Applicants will be able to download a copy of the response provided which will also be retained by the MOD. Applicants are asked to only submit one form per legal entity. Please note that the EOI has been built in Microsoft forms - your organisation will need to have this software to respond.

Obligations of the exemption

As well as joining the AUC, obligations of the exemption include:

• The need to meet the specific compliance requirements for effective management of the ITAR exemption, set out in the U.S. Federal Registry Notices dated 1 May 2024 and 16 August 2024.
• The ability to use HMG’s new Open General Licence (OGL) for AUKUS. This is published by the Export Control Joint Unit (ECJU) for the export of dual-use items or military goods, software or technology and trade of military goods, to, between and among AUKUS nations.
• Certain goods and technology are not included in the exemption and are set out in an excluded technology list which forms part of the OGL and the other AUKUS nation’s reciprocal arrangements. The excluded technology list includes certain items on which there are international obligations and items which the U.S., Australia or UK have asked to be excluded.

The exemption will require the MOD to implement new compliance processes which will impact industry. This includes the need for specific new AUC record-keeping requirements.

The AUC onboarding process

The purpose of the onboarding process is to enable the MOD, in coordination with the U.S. Department of State’s Directorate of Defense Trade Controls (DDTC), to judge whether the applicant is a suitable candidate for entry into the AUC. Particular attention will be paid to the risks of diversion to undesirable consignees or end-users.

The MOD is adopting a deliberate and phased approach for AUC applicants to allow for the effective and efficient processing of applications. Early feedback from pilot testing will be captured to facilitate refinements as the application process is opened more widely.

Initial phases will focus on applicants with existing membership of the DTCT approved community, for which there has been a specific agreement with the U.S. Department of State to undergo an expedited membership process.

This will be followed by organisations with existing Defence Suppliers Forum membership or other established, secure and formal relationships with the MOD.

The MOD is aware, from recent discussions with industry and trade associations, that stakeholders have raised several queries relating to the phased approach and when they will be able to apply for AUC membership. Prioritisation of membership applications will be based on operational requirements as well as processing time. This approach will allow benefits to be realised early and risks to be managed. The MOD will continue to work closely with all relevant trade associations (including those representing small and medium-sized enterprises) to ensure access to the AUC as effectively and efficiently as possible. 

Members of the AUC

Members of the AUC can start taking advantage of the U.S. ITAR 126.7 exemption upon receipt of written confirmation from the IIC export control team that it has been officially onboarded.

AUC members must ensure compliance with U.S. ITAR requirements. Members must also register for and meet the conditions of the new UK Open General Licence (OGL) for AUKUS. They must also be aware of any new MOD F680 requirements, if applicable.

Contact

MOD International and Industrial Cooperation Team: desirg-ukauc@mod.gov.uk

Further information

Future updates will be communicated on this webpage as well as through Defence Suppliers Forum communications to members and relevant trade associations.

• Historic Breakthrough in defence trade between AUKUS partners
• Open general licence (AUKUS nations) guidance note
• Defence Suppliers Forum