DDTC Publishes Open General License Pilot
The State Department’s Directorate of Defense Trade Controls this week published two open general licenses to authorize reexports and retransfers of certain defense items and services to Australia, Canada and the U.K. The two authorizations, which are the first open general licenses issued by DDTC, will be valid starting Aug. 1 through July 31, 2023, as part of a new pilot program.
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The agency last year previewed the open general license concept as a way to allow U.S. exporters and others to ship to and between certain trusted trading partners without having to apply for a specific license (see 2109290056 and 2204290032). DDTC hopes the licenses help the U.S better support close allies and reduce the workload for its licensing officers, leading to faster turnaround times for other pending license applications involving items controlled under the International Traffic in Arms Regulations.
Open General License No. 1 will authorize retransfers of unclassified defense articles to the Australian, Canadian and U.K. governments; members of the Australian and U.K. communities as defined in the ITAR; and Canadian-registered persons as defined in the ITAR. Open General License No. 2 will authorize reexports of defense articles to the same recipients in Australia, Canada and the U.K as Open General License No. 1
For both licenses, users must maintain various records relating to the shipments, DDTC said, including a description of the defense article and information on the recipient and end-user. Both licenses also contain certain limitations and provisions, DDTC said, and can’t be used for items that will eventually help support or build certain missiles, drones or space-launch vehicles controlled by the Missile Technology Control Regime. Other restrictions apply to technical data, shipments of certain “major defense equipment,” and certain items that were previously exported.
A DDTC spokesperson said the licenses will be posted on its website this week. The agency said it may reissue the licenses after they expire, extend their period of validity or revise their scope. Questions should be directed to the Office of Defense Trade Controls Policy at (202) 663-1282 or DDTCCustomerService@state.gov.