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On July 13, 2022, the U.S. Department of State’s Directorate of Defense Trade Controls (“DDTC”), as part of a pilot program, issued two Open General Licenses (“OGLs”), which were subsequently was published via the Federal Register on July 20. , authorizing the retransfer and re-export of defense articles subject to the International Traffic in Arms Regulations (“ITAR”) within or between Australia, Canada and the United Kingdom. Similar to general licenses issued by the Office of Foreign Assets Control of the United States Department of the Treasury, OGL #1 and OGL #2 apply if the transaction meets the stated requirements, without specific request to the DDTC.
OGL No. 1, “Qualifying Retransfers within Australia, Canada, and the United Kingdom”, and OGL No. 2, “Qualifying Reexports Between or Among Australia, Canada, and the United Kingdom”, follow similar structures and are limited by similar rules. limitations and reservations. OGL No. 1 allows retransfer (that’s to say., change of end user within the same country) to, and GLO No. 2 permits re-export between or among the governments of Australia, Canada and the United Kingdom, members of the Australian community (such as defined in 22 CFR § 126.16(d)), United Kingdom Community Members (as defined in 22 CFR § 126.17(d)) and Persons Registered in Canada (as defined in § 126.5(b) )) of unclassified defense articles, provided the transferor complies with the ITAR Final Destination and Record Keeping Requirements.
In particular, the transferor must maintain the following records: a description of the defense article, including technical data; the name and address of the recipient and the end user, as well as other contact information available (for example., telephone number and e-mail address); the name of the natural person responsible for the transaction; the declared end use of the defense article; the date of the transaction; and transfer method. Licensors shall make such records available to the DDTC upon request, and “Open General License 1/2” shall be used as the license or other approval number or exemption citation.
The limitations and conditions that apply to both OGLs restrict retransfers and re-exports of defense articles originally transferred under certain foreign military sales programs, certain missile-related defense articles and certain equipment major defenses and high value defense articles or services. The limitations and conditions also state that the transfers take place entirely within the physical territory of Australia, Canada or the United Kingdom, and that the Defense Articles are for use by or on behalf of the governments of Australia. , Canada, the United Kingdom, or the United States (for re-exports).
These OGLs take effect on August 1, 2022 and are valid for one year, until July 31, 2022.
The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.
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