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State/DDTC Amends ITAR §§ 126.7 and 126.18 ITAR AUKUS Exemptions

News & Blog

  • In ITAR § 126.7, the section heading is revised to “Exemptions” to account for a new and separate exemption for reexports, retransfers, or temporary imports of defense articles to support the armed forces of Australia, the United Kingdom, or the United States, provided certain requirements are met. Titles have been added to the paragraphs found in § 126.7 to clearly delineate each exemption and their associated requirements and limitations. Additionally, the phrase “other approval” is removed in this section.
  • In ITAR § 126.7(a), the term “furnishing” replaces the phrase “the performance” in order to be consistent with existing language in the ITAR regarding defense services. In ITAR § 126.7(b)(2), language is added so that a United Kingdom or Australian government department or agency is identified as a transferor, recipient, or broker in § 126.7(b)(2), and language pertaining to U.S. persons registered with the applicable Directorate of Defense Trade Controls (DDTC) registration is changed from “not debarred under § 127.7” to “eligible under § 120.16” to account for all reasons a U.S. person may be ineligible to use the § 126.7 exemption.
  • In ITAR § 126.7, paragraphs (c) and (d) are added for a new exemption for certain reexports, retransfers, or temporary imports of defense articles to support the armed forces of Australia, the United Kingdom, or the United States.
  • In ITAR §§ 126.7 and 126.18, the phrase “Authorized User” replaces the phrase  “authorized user” for consistency throughout the regulations.
  • In ITAR § 126.18(e), “Australian or United Kingdom parties described in § 126.7(b)(2)(ii) or (iii) or are regular employees thereof” replaced “authorized users or regular employees of an authorized user of the exemption in § 126.7” because the parties described in § 126.7(b)(2) expanded with the addition of a United Kingdom national-level government department or agency or Australian federal government department or agency.

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