AUKUS-related changes to Export Control Regulations within the EAR

While many in Defense Tech and Defense Tech-adjacent sectors are familiar with the International Trafficking in Arms Regulation (ITAR), perhaps the most consequential AUKUS-related changes to Export Control Regulations have occurred within the Export Administration Regulations (EAR).  

  FRAMEWORK:  EAR is administered by the Department of Commerce’s Bureau of Industry and Security (BIS) and regulates items on the Commerce Control List (CCL).  The CCL regulates items with dual commercial and military purpose not listed on ITAR as well as items with sole commercial purpose but containing sensitive technology.  Included on the CCL are many advanced technologies such as certain:  

• advanced composites,   

• integrated circuits,   

• sensors, and 

• non-military unmanned aerial systems.   

  The EAR’s AUKUS-related Interim Final Rule (IFR), published on April 19, 2024, significantly curtailed the reach of the CCL for items traded between the US, the UK, and Australia. Specifically, the April 19 IFR removed the license requirements for export of items to the UK or Australia once controlled for national security, regional stability, and missile technology reasons.   

 KEY POINT:  In essence, AUKUS has facilitated the unrestricted export of most items listed on the CCL between the US, the UK, and Australia.    

  AUKUS PILLAR II:  While Pillar I of AUKUS primarily focuses on government to government nuclear submarine collaboration, these changes are a part of AUKUS’s Pillar II intended to further “enhance joint capabilities and interoperability” in the following “advanced capabilities”:  

• advanced cyber, artificial intelligence (AI), and autonomy;  

• quantum technologies;  

• hypersonic and counter-hypersonic capabilities;  

• electronic warfare;  

• innovation;  

• information sharing; and  

• additional undersea capabilities. 

 ACTIONABLE INSIGHT:  Innovators with products listed on the CCL are now well-positioned to access US, UK, and Australian markets free of many regulatory hurdles that once blocked export.