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DDTC to Expand Authorized Defense Exports to Australia, UK, Canada

The State Department’s Directorate of Defense Trade Controls will soon expand the types of defense articles and services that can be exported to Australia, the U.K. and Canada, including items and activities involving torpedoes, submarine combat control systems, acoustic countermeasure devices and night vision items. The measures were outlined in a final rule, released April 11 and effective May 12, that will also make “clarifying amendments and conforming updates” to the International Traffic in Arms Regulations.

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DDTC previewed the rule in its fall 2022 regulatory agenda, when it said it planned to expand the types of defense items and services that can be furnished under defense trade treaties with Australia and the U.K. and under the ITAR’s Canadian exemptions (see 2301090018). The agency settled on the changes after a “series of routine consultations” with the three countries, DDTC said, adding that the measures are meant to “continue to enhance operational capabilities, interoperability, and cooperation between the armed forces of the United States and its allies and partners.” DDTC also plans to issue a “future rulemaking” to make more changes.

The final rule removes several items from Supplement No. 1 to part 126 of the ITAR, a chart that outlines goods that can’t be exported through the ITAR’s Treaty exemptions. One chart entry for U.S. Munitions List Category IV previously excluded defense articles and services “specific to torpedoes” but now excludes only “defense articles and services specific to the warhead or the sonar, guidance, and control section of torpedoes,” DDTC said. Another entry for USML Category XX(c) previously excluded items and services “specific to submarine combat control systems” but now no longer covers “mounting racks and cabinets.”

A third change amends several chart entries to remove “Underwater Acoustic Decoy Countermeasures,” devices used by submarines to deceive homing torpedoes. The DDTC also amended an “explanatory” note for the entries, which lists examples of “countermeasures and counter-countermeasures related to defense articles not exportable” under the Australia or U.K. Treaty exemptions.

Another change amends entries related to “manufacturing know-how” mentioned in USML Category IV(i) and "night vision" mentioned in USML Category XII. DDTC said the revisions describe the “specific subassemblies of other USML Category IV defense articles that remain ITAR-controlled” and update night-vision entries to “reflect the fact that first generation image intensification tubes are not subject to the ITAR.”

The changes come about a month after the U.S. released a timeline for sharing sensitive nuclear submarine technology with Australia (see 2303130035). It also comes amid a recent uptick in public criticism of the ITAR, which some trade experts say needs changes to allow the U.S. to more easily share controlled technologies with the U.K., Australia and other close allies (see 2303170045 and 2302170022). The House passed a bill last month that would direct the State Department to report to Congress on export-related issues under the AUKUS partnership and issue an “assessment of recommended improvements to export control laws" (see 2303230031).