Archive for the ‘Australia’ Category

BIS Amends CCL to Implement Australia Group Understandings

Wednesday, August 21st, 2013 by Brooke Driver

By: Brooke Driver

As it has revised the EAR to implement changes laid down in the Wassenaar Arrangement and Missile Technology Control Regime this summer, BIS also has finalized changes to the Commerce Control List based on the decisions of the Australia Group at the 2012 plenary meeting. Specifically, this final rule revises the CCL by amending ECCN 1C351 that controls human and zoonotic pathogens and “toxins” in accordance with changes to the AG “List of Biological Agents for Export Control.” The aforementioned changes include the addition of three pathogens and clarifications to two other items. It also revises the controls on plant pathogens, adding five pathogens and six clarifications to the “List of Plant Pathogens for Export Control,” adds certain spray-drying equipment to the AG “Control List of Dual-Use Biological Equipment and Related Technology and Software.”

For details, visit:

http://www.gpo.gov/fdsys/pkg/FR-2013-06-05/html/2013-13270.htm

New ITAR Exemption for Australia

Tuesday, June 18th, 2013 by Brooke Driver

By: Brooke Driver

 
In accordance with the US-Australia Defense Trade Cooperation Treaty, the Department of State has submitted a final revision of ITAR, 22 CFR Parts 120 and 126 to create a licensing exemption for export to the country of Australia Specifically, the rule amends ITAR §120.1 to provide updated authorities and editorial changes. ITAR §120.33 will also be added to provide a definition of the treaty itself, while ITAR §120.35 will define the Implementing Arrangement pursuant to the Treaty. ITAR §126.16 will actually describe the exemption and provide guidance on its use. Supplement No. 1 to part 126 will be amended to identify defense articles that may not be exported and defense services are not subject to the exemption. The supplement will also remove the phrase, “defense articles and services related to” from the row regarding USML Category I articles, and shift the USML citation for armored plates from USML Category XIII(c) to XIII(e).

 
The Department of State’s notice of the rule also includes a long list of comments and criticisms it received regarding the new rule and the State’s response to those suggestions. This section can basically be summarized, “people complained about this, this and this…and we didn’t listen.” Although the Department did incorporate certain small recommended changes, mainly those that helped clarified meaning, it did not simplify the requirements and procedure for the exemption, so you will be disappointed if you expect an easy-peasy solution to your Australian exporting issues. In fact, the rule is fairly similar to the ITAR UK exemption in its complexity, discussed in this article:
http://learnexportcompliance.bluekeyblogs.com/tag/itar-exemption-for-uk/

 
This rule will not come into effect until the treaty itself enters into force, and although June 6, 2013 is the current proposed effective date, we all know dates like these are tentative at best when the government is involved. We will post a more detailed analysis when the rule becomes effective.

New US Export Licensing Requirements for Ceramic Lined Valves

Monday, July 6th, 2009 by Danielle McClellan

BIS has issued a final ruling amending the EAR to implement the 2008 Australia Group (AG) decisions. Effective July 6, 2009, ECCN 2B350 in the EAR will now control valves that have contact surfaces lined with certain ceramic materials and software related to toxic gas monitoring systems. This EAR changes brings the US rules into conformation with the AG “Control List of Dual-Use Chemical Manufacturing Facilities and Equipment and Related Technology and Software.” The rule also revises controls on cross (tangential) flow filtration equipment. The EAR controls such equipment that uses disposable or single-use filtration components. (more…)

Senate Postpones Consideration of Relaxed ITAR Treatment for UK and Australia

Sunday, November 16th, 2008 by Danielle McClellan

United Kingdom and Australia will be deferred until next year. The delay is prompted by the Senate’s concern that the State Department needs to amend the ITAR in order for the treaties to be enforceable. The FRC became frustrated after waiting for such amendments to be drawn up, and after receiving another excuse from the State Department for the lag they decided to simply deem both treaties incomplete and view them once again in 2009.

The delay has caused aggravation with UK officials who explain that, “All the UK government wants is clarity of message from the US government on what’s happened and whether or not they are motivated to get this ratified as soon as their processes are complete, Right now, we’re getting all sorts of messages from each of the three strands of government.”

No word on the frustrations of the Australians.

More information:

President Bush Wants to Relax Defense Export Controls on UK and Australia

Saturday, July 5th, 2008 by Danielle McClellan

Last year President Bush signed defense trade cooperation treaties with Britain and Australia to make trade in military items easier. The treaties are intended to eliminate the many export licenses companies must obtain before they can sell their products. These treaties will create “approved communities” consisting of companies whom can freely buy and sell MOST military items under circumstances. This should eliminate about two-thirds of the export licenses that the US Department will have to issue for military goods going to Britain and Australia.

This week President Bush has made it clear that he wants senate to put a rush on the ratifications of both treaties. Unfortunately, for both Bush and exporters the Senate has made it very clear that they will not be rushed. On May 21, 2008 members of the Senate Foreign Relations Committee explained that they need to see all the treaties details and the implementing regulations before anything will be ratified. Currently these details are being drafted, but will not be ready until the end of the summer. (more…)

DDTC Publishes Deal with Australian Government

Friday, May 16th, 2008 by Danielle McClellan

The DDTC has published Implementing Arrangement for US-Australia Defense Trade Cooperation Treaty (Word doc). The 24-page Word document consists of 16 sections that recognize principals established between the two governments concerning their Defense Trade Cooperation.

DDTC Clarifies NATO+ Parts Exemption

Friday, May 16th, 2008 by Danielle McClellan

The Department of State issued a final rule amending section 123.9(e) of the International Traffic in Arms Regulations to allow for NATO and its agencies, the governments of NATO members, and the governments of Australia and Japan to reexport or retransfer US origin components incorporated into a foreign defense article without any prior approval from the Directorate of Defense Trade Controls. Prior to the revision/clarification, 123.9(e) did not authorize retransfers to agencies of NATO-it only authorized retransfers to the member governments themselves, plus Australia and Japan.

To refresh your memory on the ITAR 123.9(e) NATO+ parts exemption, there are several limits however to what components can be reexported or retransferred. First of all, to qualify for the exemption the US origin components must have been initially authorized for export from the US either through license or an exemption. The following are US origin components that are NOT eligible for the exemption:

  • Significant military equipment;
  • Major defense equipment sold under a contract in the amount of US $14 million or more;
  • Defense articles or defense services sold under a contract in the amount of US $50 million or more;
  • Identified as items in the Missile Technology Control Regime of ITAR.

Finally the person reexporting the defense article must provide written notification to DDTC about the retransfer no later than 30 days after the transaction, and the notification must identify the articles reexported and the recipient government or NATO entity. After receiving this documentation the DDTC has the option to place restrictions on the component.

More information:

Australia Government Allows BAE to Discriminate for ITAR Reasons

Monday, February 4th, 2008 by Danielle McClellan

BAE Systems in South Australia, a defense company, has been granted an exemption from the equal opportunity laws. The company may discriminate on the basis of nationality when selecting employees for US contracts in order to satisfy the US International Traffic in Arms Regulations.

Linda Matthews, the South Australia Equal Opportunity Commissioner argued that basic human rights should not be overridden by commercial considerations. Her strong opposition of BAE’s application was not enough to convince the Department of Justice to deny their application. BAE’s legal counsel is denying all allegations that the company ever violated South Australia Equal Opportunity laws before the date of the approval of the company’s application.

This development allows BAE to comply with US ITAR requirements that certain foreign nationals not access US defense articles without violating the laws of Australia.

More information:

http://www.tradingmarkets.com/.site/news/Stock News/1058903/

Some Nuts and Bolts of New ITAR Agreements Requirements

Wednesday, December 19th, 2007 by Danielle McClellan

On December 19, 2007, an amendment to the ITAR was published that revised the licensing procedures with regards to third party/dual nationals for technical assistance and manufacturing license agreements. It is no longer required that additional approval for a release of technical data, defense services, and access to defense articles for third part/dual national employees from NATO, EU, Australia, New Zealand, Japan, and Switzerland. (more…)

DDTC Announces New Dual and Third Country National TAA and MLA Rule

Wednesday, December 19th, 2007 by John Black

“Beware of apparently good news.” — John Black

In the December 19, 2007 Federal Register, the Directorate of Defense Trade Controls (DDTC) of the State Department announced its new policy for dual and third country nationals. The change primarily is related to the requirement that when you apply for a Technical Assistance Agreement (TAA) or Manufacturing License Agreement, you must identify the foreign nationalities of the foreign signatories to the agreement. (more…)