US Preparing for More AUKUS Authorized Users, USML Changes, Official Says
The State Department is expecting to see a large uptick by the end of the year in the number of authorized users under the International Traffic in Arms Regulations' new AUKUS exemption, a senior agency official said.
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Michael Vaccaro, the State Department’s deputy assistant secretary for defense trade controls, said there are currently about 125 pre-approved authorized users for the new AUKUS exemption (see 2408160019 and 2410010030), which is designed to reduce export barriers for certain defense trade between the U.S., Australia and the U.K. “I anticipate that number will grow significantly by the end of this year,” Vaccaro said during the Dec. 4 Defense Trade Advisory Group meeting.
He encouraged exporters to continue using the new exemption, stressing that although it “supports AUKUS partners,” it’s “not limited to AUKUS projects.” Vaccaro said the exemption can “facilitate much more than simply AUKUS-labeled Pillar I or Pillar II programs,” referring to the two pillars that are meant to deliver nuclear-powered submarines to Australia and reduce trade barriers between the three nations, respectively.
“We expect that our trilateral exemptions will collectively facilitate billions of dollars in secure license free defense trade among our three countries, and we've sought to make them clear in scope and predictable in use,” he said. Based on a State Department “analysis,” Vaccaro said about 80% of licensed defense trade from the U.S. to Australia and the U.K. “should be eligible for these exemptions.”
Vaccaro also stressed that the State Department is looking to better expedite license application decisions for ITAR-controlled defense trade with other allies, such as Canada, and for items to Australia and the U.K. that aren’t captured by the AUKUS exemption.
He said “the vast majority of defense articles and services are eligible for” existing exemptions with those countries. But if a company is looking to ship those nations an item that isn’t eligible for an exemption, Vaccarro said, “my office will process that application as quickly as possible.” He said the State Department must process those applications within about 30 days to 45 days, depending on whether it involves a government-to-government sale.
Vaccaro also briefly touched on an October proposed rule that could revise space-related export controls within the U.S. Munitions List, including by moving certain items from the USML to the Commerce Department’s Commerce Control List (see 2410180027). He said some exporters were likely “pleased” about the possible transfer of those items to the CCL, and he added that the agency could make more changes soon.
“We're not done either,” Vaccaro said. “We also intend to publish targeted revisions to the USML hopefully later this year.”
He also said the agency plans to move forward with an April proposed rule that floated increased fees for registration with the Directorate of Defense Trade Controls (see 2404230033). DDTC hasn’t increased its fees in more than a decade.
“After 15 years of inflation, technological and security enhancements, and significant advancements and processes for improved services,” DDTC decided “that an increase in the amount of registration fees is necessary for the continued and modernized operation” of the agency, Vaccaro said. “This increase in fees directly supports DDTC operations and helps us to help you.”