The United States has changed the export licensing standards for aircraft parts bound for Australia and/or the United Kingdom ("UK"). This is being accomplished under the recently-published AUKUS rules. There are two main changes:
- Elimination of most destination-based licensing restrictions when exporting to Australia or the UK (in the Commerce Country Chart)
- Expansion of the AVS exception for aircraft parts bound for Australia and the UK
Commerce Country Chart Changes
Under the exporting rules, the exporter must look at the export destination and compare it to the reason for control in the Commerce Country Chart. The licensing obligations for Australia and the UK have changed dramatically!
The United States has removed the licensing obligations for all articles being exported to Australia or the UK except for articles controlled for chemical or biological weapons reasons under column "CB1" (which still require a license).
One of the common aircraft articles that may be affected by this rule change is inertial reference units (IRUs) which are export-controlled for missile technology ("MT1") reasons. Until the recent rule change, an article controlled under the MT1 provisions needed an export license when exported to any jurisdiction other than Canada. The new rule adds Australia and the UK to the list of exceptions where the destination does not drive a license obligation for MT1 exports (this is also codified at 15 C.F.R. § 742.5(a)(1)).
This would also affect many 600-series articles (defense articles) destined for Australia or the UK, because the Australian and UK restrictions on exports controlled for reasons of regional stability (RS) and national security (NS) have also been removed.
Other licensing provisions may still apply! For example, if the aircraft parts is ordered by a business on the BIS entity list then a license will be required for the transaction, even if that company is located in the UK.
License Exception AVS
The rule change also expands the utility of license exception "AVS."
Previously, license exception AVS applied (inter alia) to exports of aircraft parts for use on U.S. or Canadian registered airplanes, as long as they are ordered by the owner/operator and the aircraft is not located in Cuba or a Country Group D:1 nation (excluding China). This has been expanded to include parts ordered by the owners/operators of Australian-registered aircraft and UK-registered aircraft. See 15 C.F.R. § 740.15(c)(1).
AVS also allowed US and Canadian airlines to order aircraft parts to be exported to their installations (e.g. airline-operated line stations) and their agents (such as an MRO). This exception has been expanded to include Australian airlines and UK airlines. This may not be used to export to Cuba or a Country Group D:1 nation (excluding China). See 15 C.F.R. § 740.15(c)(2).
Hot Section Technology
As an additional relevant note, the United States has also removed restrictions on the export of certain engine technology to Australia or the UK. This is limited to hot section technology for the development, production or overhaul of commercial aircraft engines controlled under certain subsections of ECCN 9E003. This matches Australia and the UK with the export treatment of Canada for this technology.
Public Comments
These changes are part of an interim final rule. This means that the rule was published and becomes immediately effective, but the rule is open to public comment. Public comment remains open until June 4.
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