[Federal Register Volume 88, Number 105 (Thursday, June 1, 2023)]
[Notices]
[Pages 35992-35994]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-11678]


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DEPARTMENT OF STATE

[Public Notice: 12033]


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

ACTION: Publication of updated general licenses.

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SUMMARY: The Department of State, Directorate of Defense Trade Controls 
is publishing two updated 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: Dilan Wickrema, 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 pursuant to the International 
Traffic in Arms Regulations (ITAR), 22 CFR parts 120-130, Sec.  
120.22(b). These open general licenses were originally published with a 
validity date of one year, effective August 1, 2022, through July 31, 
2023.
    The Department of State, Directorate of Defense Trade Controls 
(DDTC) is now updating both open general licenses to extend the 
validity period and to update citations for ITAR sections moved by 
rulemaking subsequent to the issuance of the open general licenses on 
July 13, 2022. Extending the validity period of the open general 
licenses by three years is necessary in order to allow DDTC to collect 
sufficient data to consider the usefulness of the Open General License 
pilot program and to provide industry with sufficient comfort to be 
able to rely on the open general licenses without fear that they will 
expire more quickly than a traditional license.
    DDTC is also making certain non-substantive edits to both open 
general licenses to clarify that multiple defense articles need not be 
reexported or retransferred simultaneously and the open general 
licenses can be used to reexport or retransfer a single defense 
article.
    Both updated Open General License No. 1 and Open General License 
No. 2 have been published on DDTC's website and are now being published 
in the Federal Register. 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) 120.22(b), hereby 
provides the following Open General License No. 1. Open General License 
No. 1 licenses the retransfer (as defined in ITAR120.52) 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 
126.16(d), at all locations in Australia;
    (3) members of the United Kingdom Community as defined in ITAR 
126.17(d), at all locations in the United Kingdom; or
    (4) Canadian-registered persons as defined in ITAR 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 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:
    (i) the defense article to be retransferred was 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 
126.16), or the Defense Trade Cooperation Treaty between the United 
States and the United Kingdom, (ITAR 126.17);
    (ii) a defense article originally exported pursuant to ITAR 
126.6(c) may not be retransferred under this license;
    (iii) a defense article described in ITAR 126.16(a)(5) or 
126.17(a)(5) may not be retransferred under this license;
    (iv) a defense article may not be retransferred under this license 
if it is listed on the Missile Technology Control Regime (MTCR) Annex 
or identified as Missile Technology (MT)

[[Page 35993]]

on the United States Munitions List (USML) in ITAR part 121;
    (v) a defense article may not be retransferred under this license 
if it 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;
    (vii) 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;
    (viii) any major defense equipment (as defined in ITAR 120.37) 
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 
120.16(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 an other approval as defined in 
ITAR 120.57(b), 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 three years, effective 
August 1, 2023 through July 31, 2026. The Department may later consider 
reissuing Open General License No. 1 prior to July 31, 2026 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 120.22(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].

Jessica Lewis,
Assistant Secretary Bureau of Political-Military Affairs.
Dated: March 23, 2023.

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) 120.22(b), hereby 
provides the following Open General License No. 2. Open General License 
No. 2 licenses the reexport (as defined in ITAR120.51) 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 
126.16(d), at all locations in Australia;
    (5) members of the United Kingdom Community as defined in 
ITAR126.17(d), at all locations in the United Kingdom; and
    (6) Canadian-registered persons as defined in ITAR 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 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 article was 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 (ITAR126.16), or the Defense 
Trade Cooperation Treaty between the United States and the United 
Kingdom, (ITAR126.17);
    (ii) a defense article originally exported pursuant to ITAR126.6(c) 
may not be reexported under this license;
    (iii) a defense article described in ITAR126.16(a)(5) or Sec.  
126.17(a)(5) may not be reexported under this license;
    (iv) a defense article may not be reexported under this license if 
it is 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) a defense article may not be reexported under this license if 
it 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 ITAR120.37) valued 
(in terms of its original acquisition cost) at $25,000,000 or more and 
any defense article or related training or other

[[Page 35994]]

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 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 ITARSec.  
120.16(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 an other approval as defined in 
ITAR120.57(b), 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 three years, effective 
August 1, 2023 through July 31, 2026. The Department may later consider 
reissuing Open General License No. 2 prior to July 31, 2026 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 ITAR120.22(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]. Jessica Lewis Assistant 
Secretary Bureau of Political-Military Affairs.

    Dated: March 23, 2023.
Jessica Lewis,
Assistant Secretary Bureau of Political-Military Affairs, Department of 
State.
[FR Doc. 2023-11678 Filed 5-31-23; 8:45 am]
BILLING CODE 4710-25-P