All three countries have made changes to their export processes and licencing arrangements to enable the implementation of this agreement, which in effect allows for use of the US ITAR licence exemption ITAR § 126.7 (22 C.F.R. § 126.7), intending to allow for a freer flow of US controlled goods and technology between contracting parties. 

Open General Export Licence (OGEL):  Permitted goods: 

The intent of the new licence is ‘To permit the export of dual-use items or military goods software or technology and trade of military goods, to, between and among Australia, the US and the UK.’ This includes re-exporting goods, software, or technology to and from permitted destinations, even if they have been incorporated into other products. 

British businesses incorporating ITAR goods into UK manufactured goods will welcome this exemption. In general terms, incorporating ITAR goods into higher-level non-ITAR goods can place the higher-level goods under the ITAR, namely US export extraterritorial controls, making the higher-level goods subject to US licence provision and conditions. 

Compliance Evidence: 

The open licence requires that a UK business apply to join the AUKUS Authorised User List.  A UK application must be made through the ECJU SPIRE system.  The UK applications will be administered by the MoD International and Industrial Co-Operation team within DE&S and forwarded, post-applicability checks, to the US Directorate Defence Controls Team (DDTC) for US compliance purposes.  The DDTC application processing time is anticipated to be 60 days.  There is no published timescale for the SPIRE application process. 

Those parties intended to receive goods covered by the UK licence will also need to be on the Authorised User List. It is unclear yet how UK businesses will evidence this.   

The UK authorities have been testing the water by initiating a pilot Authorised User application with the industry before the formal launch of the OGEL in September 2024.  A phased implementation towards application for the Authorised User status is anticipated as the UK authorities work towards improving the process to enable a wider rollout.   

It is unclear how this will be implemented or how it will impact UK businesses intending to apply for Authorised User status, but the DBT has indicated that those entities to be on-boarded next will be members of the US-UK Defence Trade Cooperation Treaty Approved Community.  After this, those businesses, or organisations with relevant or existing relations with the MoD through List X or Facility Security Clearance will be given priority to support existing contractual relationships. 

Update to the UK F680 application process 

Applicants will notice a significant change to the F680 application process implemented as a measure to provide for the UK-to-UK movement of ITAR goods and technology.   

The F680, a UK MoD security document that can be used to support export licence compliance, will now include provisions for the movement of controlled goods and technology within the UK.   ITAR-controlled goods in the UK potentially require US licences or amendments to existing US licences to make provisions for some UK-to-UK movements.  The change to the F680 application should support the use of the US ITAR exemption and negate the requirement for US licences for UK-to-UK movements. 

Non-domiciled businesses can apply to use the OGEL 

Non-domiciled businesses supporting the trilateral contracts will also need to apply to use the licence to enable exports of intangible technology from the UK.  The DBT has published detailed information as to the licence application process for these non-UK registered businesses needing to register to use the licence without a UK EORI (Economic Operators Registration and Identification). 

A link to the NTE can be found below: 

NTE 2024/18: update on AUKUS and publication of new open general licence - GOV.UK (www.gov.uk) 

A link to the OGEL can be found here: 

Open general licence (AUKUS nations) guidance note - GOV.UK (www.gov.uk) 

If you are interested in exploring this topic further, you might find it worthwhile to consider the training courses and live clinics offered by Strong & Herd LLP: