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

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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

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1 October 2010

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