Export Control Exemptions Facilitate US Defense And Sensitive Technology Trade With Australia And The UK

• Published date: 14 January 2026
• Law Firm: Perkins Coie LLP
• Author: Todd M. Hinnen, Ann M. Nagele, Andrew Caridas and Sarah Grant

Overview

In support of the defense partnership between Australia, the United Kingdom, and the United States, over the last two years, the U.S. Department of State and the U.S. Department of Commerce have taken significant steps to remove regulatory obstacles to trade in defense articles, defense services, and other export-controlled items among these countries.

Specifically, the State Department, through its Directorate of Defense Trade Controls (DDTC), amended the International Traffic in Arms Regulations (ITAR), including most recently in a final rule published on December 30, 2025, to:

• Add a new exemption to licensing requirements for most trade in defense articles and defense services among Australia, the UK, and the United States (modified in the final rule)
• Add a list of particularly sensitive defense articles and defense services excluded from eligibility for transfer under the new exemption
• Add a separate exemption for reexports, retransfers, or temporary imports of defense articles to support the armed forces of Australia, the UK, and the United States (added in the final rule)
• Add an expedited licensing process for nonexempt exports of certain defense articles and defense services to Australia, the UK and Canada
• Add to the scope of the existing exemption for intracompany intraorganization, and intragovernmental transfers to allow for the transfer of classified defense articles to certain dual nationals who are citizens of Australia or the UK and another country (modified in the final rule)

In parallel, the Commerce Department, through its Bureau of Industry and Security (BIS), amended the Export Administration Regulations (EAR) to:

• Remove licensing requirements for exports, reexports, and transfers (in-country) to or within Australia or the UK for a range of technologies
• Expand the availability of license exceptions for Australia and the UK
• Reduce the scope of end-use and end-user-based license requirements for Australia and the UK
• Remove controls for certain spacecraft and related items for exports and reexports to Australia, Canada, and the UK

With these changes, the EAR's treatment of Australia and the UK now largely aligns with that of Canada.

Background

In September 2021, the United States, Australia, and the UK established the AUKUS partnership to build on long-standing ties and support mutual security and defense interests. A central goal of the partnership is enhanced collaboration and development of each country's industrial base...