US Commerce Dept. cuts some requirements to advance AUKUS

The U.S. Commerce Department’s Bureau of Industry and Security (BIS) published an interim final rule significantly reducing licensing requirements for Australia and the United Kingdom (UK) to foster defence trade and technological innovation. BIS anticipates these changes will reduce licensing burdens for trade with Australia and the UK by over 1,800 total licenses valued at over $7.5 billion per year.

BIS is removing Commerce Control List (CCL) license requirements to allow Commerce-controlled military items, missile technology-related items, and hot section engine-related items to be exported or reexported to Australia and the UK without a license. As a result, many Commerce-controlled items, including certain satellite-related items, will now be eligible for export or reexport to Australia and the UK without a license.

“Australia and the United Kingdom are among our closest and most longstanding allies.  Our nations have robust collective security arrangements and have fought side-by-side for over a hundred years,” said Alan Estevez, Under Secretary of Commerce for Industry and Security. “BIS is taking action today to advance the AUKUS partnership by using export control authorities to support defence trade and innovation with Australia and the UK.”

The AUKUS Enhanced Trilateral Security Partnership, launched in 2021, is a collaborative multinational effort between the United States., the UK, and Australia with the goals of (1) supporting collective security and defence interests, (2) deepening information and technology sharing, and (3) fostering integration of security and defence-related science, technology, industrial bases, and supply chains.

“Today’s action dramatically reduces the scope of BIS export controls for trade with Australia and the UK,” said Thea D. Rozman Kendler, Assistant Secretary for Export Administration. “We support the principles of AUKUS, and look forward to the joint innovation that will come from this move. This rule also enables BIS to further focus our resources on scrutinizing high-risk exports to countries of concern.”  Both the UK and Australia welcomed the announcement, saying it would bring huge benefit to the delivery of the AUKUS partnership.

To promote innovation and realise the goals of AUKUS, Australia, the UK, and the United States are each committed to reducing export control restrictions to facilitate secure trade between and among the AUKUS partners.

Existing license requirements for the following items will remain in place:

• Certain satellites and related items;
• Certain items controlled pursuant to the Chemical Weapons Convention, and items controlled for short supply reasons (e.g., certain petroleum products and Western red cedar);
• Certain law enforcement restraints and riot control equipment, implements of torture or execution, and horses exported by sea.

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