NOTICE TO EXPORTERS – 2010/30

US-UK Defence Trade Cooperation Treaty – Ratification by US Congress and impact on

UK export licensing system

You may have heard reported in the press that the US Congress has now ratified the
US-UK Defence Trade Cooperation Treaty. This is excellent news which reflects the
close relationship between both the US and UK.

To clear up any misunderstanding, the ratification of the Treaty by Congress has no

immediate impact on controls of exports from the UK to the US. If you needed an
export licence before, you still need one now.

The UK will however, now proceed to implement the Treaty over the course of the
coming year. During this process, we plan to consult with businesses about the
practicalities, before its formal adoption.

1. Background

UK-US equipment, research and technology cooperation has been hindered over the
years by US export control regulations – principally the International Traffic in Arms
Regulations (ITAR) (the US State Department’s regulations that govern the export of
military equipment). Exports of controlled military goods and information from the US
require export licences to be obtained from the US Administration which can be
bureaucratic and time consuming.

The UK-US Defence Trade Cooperation Treaty was negotiated to facilitate

cooperation between the UK and US Governments by removing the need for US
ITAR export licences for less sensitive categories of technology which are
destined for UK or US government end-use (i.e. it is not to be used for exports to
third parties). The Treaty was signed by Prime Minister Blair and President Bush in
June 2007 and cleared by the UK Parliament in 2007. The associated Implementing
Arrangement was then agreed in 2008.

The Treaty is a significant change to how exports are managed and will allow the
movement and transfer of equipment and information between pre-approved US and
UK government agencies and contractors (the ‘approved community’) without ITAR
export licenses. By doing so, it will improve interoperability between UK and US forces
and support to operations and facilitate cooperation between our industries. The quid
pro quo for the removal of the need for export licences is that, while Treaty material is
in the UK, it will be protected under the Official Secrets Act.

US agreement required the approval of the Senate Foreign Relations Committee

(SFRC), the Senate itself and the House of Representatives. Congress has now
agreed the Treaty, enabling implementation to begin.

The Treaty represents a significant change in how the transfer of defence goods is
managed between the UK and US, and Congress understandably gave it thorough
consideration, hence the delay in the Treaty being agreed.

Export Control Organisation Page 1 1 October 2010

2. Contact the ECO

For further details of strategic export controls please contact:

Export Control Organisation

Department for Business, Innovation and Skills
1 Victoria Street
London SW1H 0ET
Tel:020 7215 4594 or Fax 020 7215 2635
Email: eco.help@bis.gsi.gov.uk
Website:
http://www.businesslink.gov.uk/exportcontrol or http://www.bis.gov.uk/exportcontrol

This notice is for information purposes only and has no force in law. Please note that
where legal advice is required exporters should make their own arrangements.

Export Control Organisation

1 October 2010
NTE201030

Export Control Organisation Page 2 1 October 2010