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AUKUS: New Export Licence for Defence

Explore the latest UK AUKUS export controls general licence and what they mean for UK exporters.


What Questions We Will Answer in this Blog:

  • How does the new AUKUS Open General Export Licence impact UK exporters?

  • What are the requirements for using this new licence?

  • How can businesses ensure they comply with the updated export controls?


Introduction

In a significant development for defence exporters, the AUKUS partnership—an alliance between Australia, the UK, and the US—has led to a reform of export controls among the member nations. This blog explores the new AUKUS Open General Licence (OGL) designed to facilitate streamlined trade in defence-related goods and technology between these three nations.


Abbreviations We Use in This Blog


To make this blog easier to follow, we’ll define the abbreviations used:

  • AUKUS: An acronym for the trilateral defence partnership between Australia, the UK, and the US.

  • OGL: Open General Licence, a type of export licence that permits the export of specific goods without requiring individual applications.

  • ITAR: International Traffic in Arms Regulations, US regulations controlling the export of defence and military-related technologies.

  • ECJU: Export Control Joint Unit, the UK government body responsible for issuing export licences.


How Does the New AUKUS Open General Licence Impact UK Exporters?


1. Facilitating Defence Trade: The AUKUS partnership, established in September 2021, aims to enhance defence cooperation among the three member nations, focusing on advanced technologies such as submarine capabilities, artificial intelligence, and quantum technologies. As part of this partnership, export controls have been reformed to support licence-free trade of certain defence-related goods among the AUKUS nations.

This development is a significant step forward for UK businesses involved in the defence sector, as it allows for more straightforward and faster exports to Australia and the US, given the removal of specific export restrictions under the new OGL.


2. Alignment with US Export Controls: The certification by the US on 16th August 2024 that the UK’s export controls are compatible with US regulations marks a pivotal moment. This certification means that UK exporters can now benefit from an exemption from ITAR regulations, specifically for a range of goods and technologies agreed upon by the AUKUS members. In response, the UK has introduced a specific AUKUS Open General Licence (OGL) that mirrors the exemptions granted by the US. This AUKUS Open General Licence (OGL) can be beneficial to UK exporters, providing a streamlined process to export controlled goods and technology without needing to apply for individual licences repeatedly.


3. Impact on Dual-Use Items and Military Goods: The AUKUS Open General Licence (OGL) primarily covers dual-use items (goods that can be used for both civilian and military purposes), military goods, software, and technology. However, not all goods are included under this AUKUS Open General Licence (OGL) . There is an excluded technology list that details items not eligible for licence-free export, often due to international obligations or specific requests from the AUKUS nations.


What Are the Requirements for Using This New Licence?


1. Becoming an Authorised User: To use the AUKUS Open General Licence (OGL) , UK exporters must be registered as Authorised Users. This status ensures that only verified and compliant businesses can take advantage of the new licence. Additionally, any export, transfer, or supply of controlled goods under this OGL must be directed to recipients who are also on the Authorised Users list.


2. Registration Process: UK exporters must register on the UK’s export licensing system, SPIRE, to become an Authorised User. The process involves providing detailed information about the business, the nature of the goods to be exported, and ensuring compliance with the export control requirements.


The UK government has provided a guidance note with step-by-step instructions on how to register and use the OGL. Following this guidance carefully is essential for ensuring compliance and avoiding delays in the registration process.


3. Compliance with OGL Conditions: While the OGL simplifies the export process, it comes with specific conditions that must be met. For example, exporters must maintain detailed records of all transactions under the OGL, and these records must be available for inspection by the ECJU. Additionally, businesses must ensure that their exports do not include any items listed on the excluded technology list unless a specific licence is obtained.


How Can Businesses Ensure They Comply with the Updated Export Controls?


1. Regularly Review Guidance and Updates: The AUKUS partnership and related export controls are evolving, and businesses must stay informed about any changes. Regularly reviewing the latest notices and guidance from the ECJU will help ensure that your business remains compliant with the most current regulations.


2. Strengthen Internal Compliance Systems: Given the complexity of export controls, businesses should invest in strengthening their internal compliance systems. This includes training staff on the new AUKUS Open General Licence (OGL) requirements, maintaining detailed records of all exports, and ensuring that all transactions are conducted in line with the conditions set out in the OGL.


3. Seek Expert Advice: Navigating export controls can be challenging, particularly with the introduction of new licences and regulations. Seeking advice from customs experts or legal professionals who specialise in export controls can provide valuable guidance and help ensure that your business avoids costly mistakes.


Timeline


The OGL has been published on 16 August, but will not come into force until 1 September. This is to align with the date the US measures will come into force.


Conclusion


The introduction of the AUKUS-specific Open General Licence represents a significant opportunity for UK exporters involved in the defence sector. By simplifying the export process between Australia, the UK, and the US, the AUKUS partnership is set to enhance trade and collaboration among these nations. However, compliance with the OGL’s requirements is essential, and businesses must take proactive steps to ensure they meet all conditions.


Expert Recommendations:

  • Stay Informed: Regularly review updates and guidance on AUKUS and related export controls.

  • Strengthen Compliance: Implement robust internal processes to manage OGL requirements effectively.

  • Consult Experts: Seek professional advice to navigate the complexities of the new export controls.


How We Can Help

📦 Customs Manager Ltd offers comprehensive support for navigating the new AUKUS Open General Licence. We provide import-export operations, including bespoke consultancy and practical assistance. Our services include public, in-house, and on-demand training tailored for customs professionals, importers, exporters, and their partners. We also offer UK import and export customs clearance services. For more details on services, visit www.customsmanager.org.


Sources That We Base Our Information in This Blog On:

Where To Find More Information On This Topic

To dive deeper into AUKUS export controls and related legal frameworks, members can visit our Knowledge Hub Content Library and explore topics at www.customsmanager.info. Search our library here: CustomsManager Library.


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Disclaimer

The information provided in this blog post is for educational purposes only and should not be construed as legal advice. We recommend consulting legal professionals or specialists for specific compliance requirements and guidance. Book a free call with our expert at Customs Manager Ltd.



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