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06 Sep 2024

AUKUS US ITAR Exemption Ruling - Expression of Interest to join Authorised User Community

Following US Governnment's recent approval of the new ITAR §126.7 exemption for AUKUS nations and organisations, expressions of interest are now open for companies wishing to join the Authorised User Community (AUC).

Authorised User Community Expression of Interest Form

For techUK members interested in joining the AUC, the MOD requires that a Responsible Official from your organisation complete the EOI form contained in this link. 

For more information on the requirements of AUC membership and the application and onboarding process please read the below summary. 

AUKUS ITAR Exemption Summary

Following the UK government's announcement on 16 August, the US government approved the new ITAR §126.7 exemption to remove the requirement for US ITAR licenses or other approval requirements for the export, re-export, retransfer (in-country), or temporary import of US origin Defence articles and services subject to ITAR between or among AUKUS nations and organisations, when part of the Authorised User Community (AUC). The AUC will officially commence on 02 September.

This ITAR exemption is a historic and ground-breaking new agreement to enable approved UK members of the AUC to operate without US ITAR licenses for specified ITAR controlled articles and services. Whilst offering the potential for significantly reduced administrative burden and overall lead times for operation, the exemption does require participants to meet several key compliance obligations, including achieving membership of the AUC for UK entities.

In addition to joining the AUC, other obligations of this exemption will include:

  • The need to meet the specific compliance requirements for effective management of the ITAR exemption, as set out in the US Federal Registry Notice (dated 16 August 2024)
  • Once new members have been approved by the UK MOD and US Department of State to join the AUC, they will be able to use the UK Government’s new Open General Licence (OGL) 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 Australia, the U.S. and the UK.

Requirements for AUC membership

The AUC is a group of approved entities (member governments, industry, academic institutions etc.) that are approved to make use of the US §ITAR 126.7 exemption. The Go Live date for UK AUC was 02 September 2024. The initial focus will be government to government transactions and transfers, as well as applications for onboarding the initial pilot group and some specific non-government entities.

Any entity involved in the handling of ITAR exempted items will need to join the AUC to realise the benefits of this US ITAR exemption. This includes intermediate consignee, logistics providers and providers of raw materials if they appear on the USML. Entities should also consider joining the AUC if you are likely to retransfer US AUKUS-exempted items between AUC members in the UK, irrespective of whether they have direct business with Australian entities. Note, the ITAR exemption and the AUC requirement does not extend to an AUC member in the UK who wants to export AUKUS exempted items to an AUC member in Australia. In this instance they will need to use the OGL administered by Department of Business and Trade (DBT)’s ECJU.

The AUC application form and onboarding process

As previously stated, the MOD is adopting a deliberate and phased approach for AUC applicants, to allow effective and efficient processing of applications. Early feedback will be captured from pilot testing and other early phase organisations, to allow refinements as the application process is rolled out more widely.

The AUC application form has been simplified (in comparison to the previous application form which required membership of the Approved Community under the existing US -UK Defence Trade Co-Operation Treaty (DTCT) and will enable the MOD to assess whether each UK entity meets the requirements for AUC membership, agreed with the US Department of State.

Initial phases will focus on entities with existing membership of the US -UK DTCT Approved Community, for which there has been a specific agreement with the US Department of State to undergo an expedited membership process. This will be followed by organisations with existing Defence Supplier Forum (DSF) membership or other established secure and formal relationships with Defence.

The MOD is aware from recent discussions with industry and trade associations that there have been a number of questions raised regarding the phased approach towards onboarding. Specifically, as to when SMEs will be able to apply for AUC membership. The intention is to prioritise membership applications based on operational requirements as well as processing time, so that benefits of the ITAR exemption can be realised quickly and with managed risks. We will therefore continue to work closely with all relevant trade associations (including those representing SMEs) to ensure access is enabled as effectively and efficiently as possible.

The MOD is expecting a large number of applications for the AUC but has limited resources to process them and will therefore use the EOI to prioritise applications. To manage expectations those companies without existing delivery contracts requiring access to ITAR controlled items will not be processed this year.

The EOI Form is only eligible for UK legal entities and must be completed accurately and in full by a responsible official who has suitable authority and knowledge to represent your organisation.

Following submission of an EOI, the response will be automatically submitted and reviewed by the MOD’s DE&S International & Industry Cooperation (IIC) team. Once validated, the Team will then contact your responsible officer with your application processing timeline. You will be able to download a copy of the answers provided upon submission of the form. Please only submit one form per organisation. It should be noted that the response provided will be retained by the UK MOD.

Update on how transfers will work once part of the AUC

Only upon receipt of written confirmation from the IIC EC team that an entity is officially onboarded as an AUC member, can that entity start taking advantage of the ITAR 126.7 exemption.

AUC members must still ensure compliance with US ITAR requirements and register for, and meet the conditions of, the new UK OGL for AUKUS. They must also be aware of any new potential MOD F680 requirements, if applicable.

The MOD is currently reviewing and refining the complete, end to end, processes to ensure they are effective and fit for purpose. Further guidance on the transfer process will be provided in future communications through the Defence Suppliers Forum portal and mailing list.

Key contacts:

[email protected] MOD, DE&S, IIC EC (Multi-User)

Related communications: 

Fred Sugden

Fred Sugden

Associate Director, Defence and National Security, techUK

Matthew Evans

Matthew Evans

Chief Operating Officer & Director of Markets, techUK

 

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