Defense Department Issues Final Rule on DFARS Changes from U.S.-U.K., U.S.-Australia Defense Treaties

The Department of Defense published its final rule amending the Defense Federal Acquisition Regulation Supplement to reflect defense trade treaties between the U.S. and U.K. and the U.S. and Australia. The rule, effective June 17, streamlines export control regulations between the U.S. and Australia and the U.S. and the U.K., under specified circumstances. The final rule makes limited changes from DOD’s May 2012 proposed rule. The final rule includes an agreement between DOD and the U.K. Ministry of Defence to establish a joint management board to resolve determination issues, so companies can know whether items qualify for expedited export under the U.S.-U.K. treaty. The final rule also slightly revises the wording of DFARS 225.7902-4 to address the concern that program managers and contracting officers do not have authority to determine treaty eligibility.