DoD Implements U.S.-U.K. Defense Trade Cooperation Treaty, Seeks Comments

DoD’s interim rule also contains information collection requirements that require the approval of the Office of Management and Budget. Comments on the interim rule and the information collection are due by July 23 to DoD and OMB, although DoD said comments on the information collection to OMB would be most useful if submitted by June 21.

(The Treaty Between the Government of the United States of America and the Government of the United Kingdom of Great Britain and Northern Ireland Concerning Defense Trade Cooperation was signed in 2007 and implemented by the Security Cooperation Act of 2010. The U.S. and U.K. subsequently exchanged diplomatic notes on April 13, 2012 bringing the treaty into force. On that date, the State Department’s final rule amending the International Traffic in Arms Regulations to implement the Treaty went into effect. See ITT’s Online Archives 10101311 for summary of entry into force of the implementing legislation, and 12032121 for summary of State’s final rule amending the ITAR. See also 12041612 for summary of State’s announcement that the U.S. and U.K. had exchanged diplomatic notes and that the Treaty had entered into force.)

Treaty Eliminates License Requirements in Certain Circumstances

The Treaty establishes an Approved Community that includes members of the U.S. government and the government of the U.K., including various Ministries, Departments, and Agencies, as well as selected defense and security companies and facilities. DoD said exports of most U.S. defense articles, including technical data and defense services, are generally permitted to move freely within this community, without the need for government approvals and licenses, provided that all persons comply with all other statutory and regulatory requirements concerning the import of defense articles and defense services or the possession or transfer of defense articles, when in support of:

• Combined U.S.-U.K. military or counterterrorism operations;
• U.S.-U.K. cooperative security and defense research, development, production, and support programs;
• Mutually agreed to security and defense projects that are for U.K. government use only; and
• U.S. government end use.

According to DoD, under the Treaty, instead of a U.S. exporter preparing and requesting approval from State of an export license or Technical Assistance Agreement for a project, which would normally take around 45-60 days, the exporter will verify information on the State Department’s website that:

• The U.K. industry member is a member of the Approved Community;
• The project is on the list of approved projects and items are for U.S. Government end use; and
• The defense article is not on the Exempted Technology List

If the members of the U.S. Community and the U.K. Community, the project, and the technology are verified, then the U.S. exporter and the U.K. member may proceed without export license. An exporter still must comply with any applicable related ITAR requirements and other applicable U.S. laws and regulations, including marking and recordkeeping, as well as DFARS requirements that relate to exports that, for example, a prospective contractor may make under a DoD solicitation or that a contractor may make in performance of a DoD contract.

Comments Requested on Related Info Collection

DoD’s interim rule also contains information collection requirements that require the approval of the Office of Management and Budget. DoD estimates the information collection, entitled “Defense Trade Cooperation Treaty with the United Kingdom," will be completed once per year by 110 respondents, and will require 0.1 hours to prepare, for a total of 11 burden hours.

Comments are requested by DoD, to be submitted to OMB, on: (1) whether this collection of information is necessary for the proper performance of functions of the DFARS, and will have practical utility; (2) whether its estimate of the public burden of this collection of information is accurate, and based on valid assumptions and methodology; (3) ways to enhance the quality, utility, and clarity of the information to be collected; and (4) ways in which we can minimize the burden of the collection of information on those who are to respond, through the use of appropriate technological collection techniques or other forms of information technology.