The State Department began an interagency review Sept. 11 for a final rule involving an exemption within the International Traffic in Arms Regulations for defense trade between the AUKUS nations of Australia, U.K. and the U.S. The rule could build on the agency's August 2024 interim final rule that created the exemption and aimed to remove certain export control barriers for a range of items that had previously faced strict license requirements under the ITAR (see 2408160019).
Although Australia, the U.K. and the U.S. have taken steps to ease defense trade restrictions, companies are still being cautious because progress around AUKUS appears to have stalled, researchers and U.K. lawmakers said this week. They also said it’s still too early for the three nations to invite other countries to join, adding that they need to first prove that the concept works among themselves.
The State Department’s recently published spring 2025 regulatory agenda previews several export control rules that the Directorate of Defense Trade Controls is hoping to issue this year, including revisions to the U.S. Munitions List, updates to the definition for defense services, updates to its AUKUS exemption, and more.
The State Department this week issued a minor correction to last month's final rule that will add and remove items on the U.S. Munitions List and clarify the control scope of others (see 2508260011). The agency said “an asterisk was inadvertently omitted from the amendatory text.”
The State Department's Directorate of Defense Trade Controls will again renew relaxed export restrictions for certain defense goods and services involving Cyprus, it said in a final rule released this week and effective Oct. 1. The agency has issued the renewal each year since 2020 (see 2309130028), suspending its policy of denial for exports, reexports and transfers of defense articles on the U.S. Munitions List to Cyprus. The move also suspends the policy of denial for retransfers and temporary imports destined for or originating in Cyprus and brokering activities involving Cyprus. The latest renewal expires Sept. 30, 2026.
The Commerce Department’s spring 2025 regulatory agenda for the Bureau of Industry and Security features more than 20 new rulemakings that could introduce new or update existing export controls, including restrictions over advanced AI chips, emerging technologies, Russia-related controls and other revisions to the Export Administration Regulations.
The House approved several export control and sanctions bills late Sept. 2, including two aimed at China.
House lawmakers have proposed dozens of export control-, sanctions- and foreign investment-related amendments to their chamber’s version of the FY 2026 National Defense Authorization Act (NDAA), including measures aimed at China, Russia and Turkey.
The Bureau of Industry and Security on Aug. 26 suspended the export privileges of 19 people after they were convicted of export-related offenses, including illegal shipments involving guns, gun parts, ammunition, microdisplays and vehicles. The suspensions took effect from the date of their convictions.
The State Department is seeking public comments on an information collection related to Part 130 of the International Traffic in Arms Regulations, which deals with political contributions, fees and commissions relating to sales of defense articles and services. Under the ITAR, defense exporters shipping certain goods worth more than $500,000 to a foreign armed service, international organization or others must notify the Directorate of Defense Trade Controls about certain political contributions or fees associated with the sale, the agency said. Comments are due Oct. 27.