[Federal Register Volume 87, Number 138 (Wednesday, July 20, 2022)]
[Notices]
[Pages 43366-43368]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-15433]


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DEPARTMENT OF STATE

[Public Notice: 11792]


International Traffic in Arms Regulations: Issuance of Open 
General Licenses 1 and 2

ACTION: Publication of general licenses available on the Directorate of 
Defense Trade Controls website.

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SUMMARY: The Department of State, Directorate of Defense Trade Controls 
is publishing two open general licenses, permitting certain reexports 
and retransfers as provided therein, in the Federal Register: Open 
General License No. 1 and Open General License No. 2, each of which was 
previously issued on DDTC's website.

FOR FURTHER INFORMATION CONTACT: Robert Hart, Office of Defense Trade 
Controls Policy, U.S. Department of State, telephone (202) 663-1282, or 
email [email protected]. ATTN: Open General Licenses 1 and 
2.

SUPPLEMENTARY INFORMATION: On July 13, 2022, pursuant to the authority 
of section 38(a) of the Arms Export Control Act (22 U.S.C. 2778(a)), as 
delegated to the Secretary of State by E.O. 13637, 78 FR 16129, and as 
further delegated by the Secretary of State, the Deputy Assistant 
Secretary of State for Defense Trade Controls issued two open general 
licenses as part of a pilot program described in the International 
Traffic in Arms Regulations (ITAR), 22 CFR parts 120 through 130, Sec.  
126.9(b). This pilot program involves open general licenses that may be 
used by certain persons in Australia, Canada, and the United Kingdom to 
retransfer certain defense articles within each of the three countries 
and to reexport certain defense articles between and among the three 
countries. These open general licenses are valid for one year, 
effective August 1, 2022, through July 31, 2023.
    The Office of Management and Budget has approved the information 
collection revision (OMB Control 1405-0173) described in each open 
general license via emergency processing under 5 CFR 1320.13 for six 
months. In the coming weeks, the Directorate of Defense Trade Controls 
will begin the process for a standard associated clearance.
    Open General License No. 1 permits the retransfer (as defined in 
ITAR Sec.  120.51) of unclassified defense articles to the Governments 
of Australia, Canada, or the United Kingdom, and to members of the 
Australian and United Kingdom communities (as defined in ITAR 
Sec. Sec.  126.16(d) and 126.17(d)) and Canadian-registered persons (as 
defined in ITAR Sec.  126.5(b)). Open General License No. 2 permits the 
reexport (as defined in ITAR Sec.  120.19) of unclassified defense 
articles between or among the Governments of Australia, Canada, or the 
United Kingdom, and to members of the Australian and United Kingdom 
communities (as defined in ITAR Sec. Sec.  126.16(d) and 126.17(d)) and 
Canadian-registered persons (as defined in ITAR Sec.  126.5(b)). Both 
licenses are subject to requirements, limitations, and provisos as 
described in each open general license.
    The text of Open General License No. 1 and Open General License No. 
2 are provided below.

Open General License No. 1

Qualifying Retransfers Within Australia, Canada, and the United 
Kingdom

    (a) The Directorate of Defense Trade Controls (DDTC), pursuant 
to the International Traffic in Arms Regulations (ITAR) Sec.  
126.9(b), hereby provides the following Open General License No. 1. 
Open General License No. 1 licenses the retransfer (as defined in 
ITAR Sec.  120.51) of unclassified defense articles to:
    (1) the Government of Australia, the Government of Canada, or 
the Government of the United Kingdom;
    (2) members of the Australian Community as defined in ITAR Sec.  
126.16(d), at all locations in Australia;
    (3) members of the United Kingdom Community as defined in ITAR 
Sec.  126.17(d), at all locations in the United Kingdom; or
    (4) Canadian-registered persons as defined in ITAR Sec.  
126.5(b).
    (b) The retransfer of any unclassified defense article to any of 
the parties listed in section (a) is subject to all the following 
requirements, limitations, and provisos:
    (1) Requirements. The transferor shall:
    (i) comply with the requirements of ITAR Sec.  123.9(b);
    (ii) maintain the following records of each retransfer: a 
description of the defense article, including technical data; the 
name and address of the recipient and the end-user, and other 
available contact information (e.g., telephone number and electronic 
mail address); the name of the natural person responsible for the 
transaction; the stated end use of the defense article; the date of 
the transaction; and the method of transfer;
    (iii) ensure that such records are made available to DDTC upon 
request; and
    (iv) utilize Open General License No. 1 as the license or other 
approval number or exemption citation.
    (2) Limitations and provisos:

[[Page 43367]]

    (i) the defense articles to be retransferred were originally 
exported pursuant to a license or other approval issued by DDTC 
pursuant to section 38 of the Arms Export Control Act (AECA), the 
Defense Trade Cooperation Treaty between the United States and 
Australia (ITAR Sec.  126.16), or the Defense Trade Cooperation 
Treaty between the United States and the United Kingdom, (ITAR Sec.  
126.17);
    (ii) a defense article originally exported pursuant to ITAR 
Sec.  126.6(c) may not be retransferred under this license;
    (iii) defense articles described in ITAR Sec.  126.16(a)(5) or 
Sec.  126.17(a)(5) may not be retransferred under this license;
    (iv) defense articles may not be retransferred under this 
license if they are listed on the Missile Technology Control Regime 
(MTCR) Annex or identified as Missile Technology (MT) on the United 
States Munitions List (USML) in ITAR part 121;
    (v) defense articles may not be retransferred under this license 
if they will be used to support the design, development, 
engineering, manufacture, production, assembly, testing, repair, 
maintenance, modification, operation, demilitarization, destruction, 
or processing of a missile, UAV, space-launch vehicle, item listed 
on the MTCR Annex, or item listed as MT on the USML in ITAR part 
121;
    (vi) technical data may only be retransferred under this license 
for the purpose of organizational-level, intermediate-level, or 
depot-level maintenance, repair, or storage of a defense article;
    (vii) any major defense equipment (as defined in ITAR Sec.  
120.8) valued (in terms of its original acquisition cost) at 
$25,000,000 or more and any defense article or related training or 
other defense service valued (in terms of its original acquisition 
cost) at $100,000,000 or more, may only be retransferred under this 
license for the purpose of:
    i. maintenance, repair, or overhaul defense services, including 
the repair of defense articles used in furnishing such services, if 
the retransfer will not result in any increase in the military 
capability of the defense articles and services to be maintained, 
repaired, or overhauled; or
    ii. a temporary retransfer of defense articles for the sole 
purpose of receiving maintenance, repair, or overhaul;
    (viii) the retransfer must take place wholly within the physical 
territory of Australia, Canada, or the United Kingdom;
    (ix) any retransfer of a defense article other than technical 
data is for end use by, or operation on behalf of, the Government of 
Australia, the Government of Canada, or the Government of the United 
Kingdom; and
    (x) Open General License No. 1 may not be utilized by persons to 
whom a presumption of denial is applied by DDTC pursuant to ITAR 
Sec. Sec.  120.1(c) or 127.11(a), including, among other reasons, 
for past convictions of certain U.S. criminal statutes or because 
they are otherwise ineligible to contract with or receive an export 
or import license from an agency of the U.S. Government.
    (c) Open General License No. 1 is a license or other approval as 
defined in ITAR Sec.  120.20, including for purposes of ITAR part 
127. Any retransfer that satisfies the requirements specified herein 
may be undertaken pursuant to Open General License No. 1.
    (d) No liability will be incurred by or attributed to the U.S. 
Government in connection with any possible infringement of privately 
owned patent or proprietary rights, either domestic or foreign, by 
reason of any retransfer conducted pursuant to Open General License 
No. 1.

Entry Into Force

    Open General License No. 1 is valid for one year, effective 
August 1, 2022 through July 31, 2023. The Department may later 
consider reissuing Open General License No. 1 prior to July 31, 2023 
and extend the period of validity, or otherwise amend the license.
    Open General License No. 1 is limited to transactions described 
herein, all other transactions subject to the ITAR require a 
separate license or approval as described in the ITAR.
    The Department of State approves Open General License No. 1 
pursuant to ITAR Sec.  126.9(b) and subject to the enumerated 
limitations, provisos, and requirements as well as the requirements 
contained elsewhere in the ITAR. Open General License No. 1 may not 
be utilized unless and until these limitations, provisos, and 
requirements have been satisfied.
    Please direct any questions regarding Open General License No. 1 
to the Office of Defense Trade Controls Policy at telephone (202) 
663-1282, or email [email protected].

Michael F. Miller,

Deputy Assistant Secretary for Defense Trade Controls.

    Dated: July 13, 2022.

Open General License No. 2

Qualifying Reexports Between or Among Australia, Canada, and the 
United Kingdom

    (a) The Directorate of Defense Trade Controls (DDTC), pursuant 
to the International Traffic in Arms Regulations (ITAR) Sec.  
126.9(b), hereby provides the following Open General License No. 2. 
Open General License No. 2 licenses the reexport (as defined in ITAR 
Sec.  120.19) of unclassified defense articles between or among:
    (1) the Government of Australia;
    (2) the Government of Canada;
    (3) the Government of the United Kingdom;
    (4) members of the Australian Community as defined in ITAR Sec.  
126.16(d), at all locations in Australia;
    (5) members of the United Kingdom Community as defined in ITAR 
Sec.  126.17(d), at all locations in the United Kingdom; and
    (6) Canadian-registered persons as defined in ITAR Sec.  
126.5(b).
    (b) The reexport of any unclassified defense article to any of 
the parties listed in section (a) is subject to all the following 
requirements, limitations, and provisos:
    (1) Requirements. The transferor shall:
    (i) comply with the requirements of ITAR Sec.  123.9(b);
    (ii) maintain the following records of each reexport: a 
description of the defense article, including technical data; the 
name and address of the recipient and the end-user, and other 
available contract information (e.g., telephone number and 
electronic mail address); the name of the natural person responsible 
for the transaction; the stated end use of the defense article; the 
date of the transaction; and the method of transfer;
    (iii) ensure that such records are made available to DDTC upon 
request; and
    (iv) utilize Open General License No. 2 as the license or other 
approval number or exemption citation.
    (2) Limitations and provisos:
    (i) the defense articles were originally exported pursuant to a 
license or other approval issued by DDTC pursuant to section 38 of 
the Arms Export Control Act (AECA), the Defense Trade Cooperation 
Treaty between the United States and Australia (ITAR Sec.  126.16), 
or the Defense Trade Cooperation Treaty between the United States 
and the United Kingdom, (ITAR Sec.  126.17);
    (ii) a defense article originally exported pursuant to ITAR 
Sec.  126.6(c) may not be reexported under this license;
    (iii) defense articles described in ITAR Sec.  126.16(a)(5) or 
Sec.  126.17(a)(5) may not be reexported under this license;
    (iv) defense articles may not be reexported under this license 
if they are listed on the Missile Technology Control Regime (MTCR) 
Annex or identified as Missile Technology (MT) on the United States 
Munitions List (USML) in ITAR part 121;
    (v) defense articles may not be reexported under this license if 
they will be used to support the design, development, engineering, 
manufacture, production, assembly, testing, repair, maintenance, 
modification, operation, demilitarization, destruction, or 
processing of a missile, UAV, space-launch vehicle, item listed on 
the MTCR Annex, or item listed as MT on the USML in ITAR part 121;
    (vi) technical data may only be reexported under this license 
for the purpose of organizational-level, intermediate-level, or 
depot-level maintenance, repair, or storage of a defense article;
    (vii) any major defense equipment (as defined in ITAR Sec.  
120.8) valued (in terms of its original acquisition cost) at 
$25,000,000 or more and any defense article or related training or 
other defense service valued (in terms of its original acquisition 
cost) at $100,000,000 or more, may only be reexported under this 
license for the purpose of:
    i. maintenance, repair, or overhaul defense services, including 
the repair of defense articles used in furnishing such services, if 
the reexport will not result in any increase in the military 
capability of the defense articles and services to be maintained, 
repaired, or overhauled; or
    ii. a temporary reexport of defense articles for the sole 
purpose of receiving maintenance, repair, or overhaul;
    (viii) the reexport must take place wholly within or between the 
physical territory of Australia, Canada, or the United Kingdom;
    (ix) any reexport of a defense article other than technical data 
is for end use by, or operation on behalf of, the Government of

[[Page 43368]]

Australia, the Government of Canada, the Government of the United 
Kingdom, or the Government of the United States; and
    (x) Open General License No. 2 may not be utilized by persons to 
whom a presumption of denial is applied by DDTC pursuant to ITAR 
Sec. Sec.  120.1(c) or 127.11(a), including, among other reasons, 
for past convictions of certain U.S. criminal statutes or because 
they are otherwise ineligible to contract with or receive an export 
or import license from an agency of the U.S. Government.
    (c) Open General License No. 2 is a license or other approval as 
defined in ITAR Sec.  120.20, including for purposes of ITAR part 
127. Any reexport that satisfies the requirements specified herein 
may be undertaken pursuant to Open General License No. 2.
    (d) No liability will be incurred by or attributed to the U.S. 
Government in connection with any possible infringement of privately 
owned patent or proprietary rights, either domestic or foreign, by 
reason of any reexport conducted pursuant to Open General License 
No. 2.

Entry Into Force

    Open General License No. 2 is valid for one year, effective 
August 1, 2022 through July 31, 2023. The Department may later 
consider reissuing Open General License No. 2 prior to July 31, 2023 
and extend the period of validity, or otherwise amend the license.
    Open General License No. 2 is limited to transactions described 
herein, all other transactions subject to the ITAR require a 
separate license or approval as described in the ITAR.
    The Department of State approves Open General License No. 2 
pursuant to ITAR Sec.  126.9(b) and subject to the enumerated 
limitations, provisos, and requirements as well as the requirements 
contained elsewhere in the ITAR. Open General License No. 2 may not 
be utilized unless and until these limitations, provisos, and 
requirements have been satisfied.
    Please direct any questions regarding Open General License No. 2 
to the Office of Defense Trade Controls Policy at telephone (202) 
663-1282, or email [email protected].

    Dated: July 13, 2022.
Michael F. Miller,
Deputy Assistant Secretary for Defense Trade Controls, Department of 
State.
[FR Doc. 2022-15433 Filed 7-19-22; 8:45 am]
BILLING CODE 4710-25-P