International Traffic in Arms Regulations: Exemption for Defense Trade and Cooperation Among Australia, the United Kingdom, and the United States, 35028-35032 [2024-08829]

Agencies

• DEPARTMENT OF STATE

[Federal Register Volume 89, Number 85 (Wednesday, May 1, 2024)]
[Proposed Rules]
[Pages 35028-35032]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-08829]


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DEPARTMENT OF STATE

22 CFR Part 126

[Public Notice: 12377]
RIN 1400-AF84


International Traffic in Arms Regulations: Exemption for Defense 
Trade and Cooperation Among Australia, the United Kingdom, and the 
United States

AGENCY: Department of State.

ACTION: Proposed rule.

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SUMMARY: The Department of State (the Department) proposes to amend the 
International Traffic in Arms Regulations (ITAR) to support the goals 
of the AUKUS partnership, the enhanced trilateral security partnership 
among Australia, the United Kingdom, and the United States. This 
exemption is designed to foster defense trade and cooperation between 
and among the United States and two of its closest allies. It is 
reflective of our nations' collective commitment to implement shared 
security standards on protecting defense technology and sensitive 
military know-how. To achieve this, the Department proposes to amend 
the ITAR to include an exemption to the requirement to obtain a license 
or other approval from the Department's Directorate of Defense Trade 
Controls (DDTC) prior to any export, reexport, retransfer, or temporary 
import of defense articles; the performance of defense services; or 
engagement in brokering activities between or among authorized users 
within Australia, the United Kingdom, and the United States. The 
Department also proposes to add a list of defense articles and defense 
services excluded from eligibility for transfer under the proposed new 
exemption; add to the scope of the exemption for intra-company, intra-
organization, and intra-governmental transfers to allow for the 
transfer of classified defense articles to certain dual nationals who 
are authorized users or regular employees of an authorized user within 
the United Kingdom and Australia; and revise the section on expediting 
license review applications by referencing new processes for Australia, 
the United Kingdom, and Canada.

DATES: Send comments on or before May 31, 2024.

ADDRESSES: Interested parties may submit comments by one of the 
following methods:
     Email: [email protected], with the subject line 
``Australia, the United Kingdom, and the United States ITAR Exemption''
     Internet: At www.regulations.gov, search for this notice 
using Docket DOS-2024-0013.
    Those submitting comments should not include any personally 
identifying information they do not desire to be made public or 
information for which a claim of confidentiality is asserted. Comments 
and/or transmittal emails will be made available for public inspection 
and copying after the close of the comment period via the Directorate 
of Defense Trade Controls website at www.pmddtc.state.gov. Parties who 
wish to comment anonymously may submit comments via 
www.regulations.gov, leaving identifying fields blank.

FOR FURTHER INFORMATION CONTACT: Ms. Engda Wubneh, Foreign Affairs 
Officer, Office of Defense Trade Controls Policy, U.S. Department of 
State, telephone (771) 205-9566; email [email protected], 
ATTN: Regulatory Change, ITAR Section 126.7 Australia, the United 
Kingdom, and the United States Exemption.

SUPPLEMENTARY INFORMATION: On September 15, 2021, the leaders of 
Australia, the United Kingdom, and the United States announced an 
intention to deepen ``diplomatic, security, and defense cooperation to 
meet the challenges of the twenty-first century'' through the creation 
of AUKUS, an enhanced trilateral security partnership. Reflective of 
the goals of AUKUS, on December 22, 2023, President Biden signed the 
National Defense Authorization Act (``NDAA'') for Fiscal Year 2024, 
Public Law 118-31, which, among other matters, established new

[[Page 35029]]

authorities and requirements relating to defense trade between or among 
Australia, the United Kingdom, and the United States. These new 
authorities and requirements are contained in section 1343 of the NDAA 
for Fiscal Year 2024, which created a new section 38(l) in the Arms 
Export Control Act (AECA) (22 U.S.C. 2778(l)). Certain of these 
requirements include a determination and certification as to whether 
Australia and the United Kingdom have implemented systems of export 
controls that are comparable to those of the United States in several 
specified areas. If one or both partner nation's systems are determined 
and certified to meet the listed standards related to export controls 
in the AECA, and if the partner nation has implemented a comparable 
exemption from its export controls for the United States, the 
Department would immediately implement an ITAR exemption, subject to 
certain statutory limitations, for the partner nation(s) to which the 
positive certification applies. A separate provision, section 1344 of 
the NDAA for Fiscal Year 2024, calls for regulatory action to establish 
an expedited decision-making process for license applications to export 
certain commercial, advanced-technology defense articles and defense 
services to Australia, the United Kingdom, and Canada. These proposed 
amendments stand to enhance security cooperation and collaboration with 
two of our closest allies.
    The Department is proposing an ITAR amendment in the interest of 
preparing for a future exemption and obtaining public feedback to shape 
a final rule following any positive certification. The proposed new 
exemption, designed to implement the provisions of new section 38(l) of 
the AECA, would be located in ITAR Sec.  126.7 and would provide that 
no license or other approval is required for the export, reexport, 
retransfer, or temporary import of defense articles; the performance of 
defense services; or engagement in brokering activities between or 
among designated authorized users within Australia, the United Kingdom, 
and the United States provided certain requirements and limitations are 
met. These include a list of excluded defense articles and defense 
services not eligible for the exemption, which can be found in a 
proposed new Supplement No. 2 to Part 126. The scope of excluded 
defense articles and defense services remain subject to revision and 
the Department welcomes comment on proposed Supplement No. 2 to Part 
126. Further details regarding the requirements and limitations of the 
proposed exemption are as follows:
     In Sec.  126.7(b)(1), the exemption may only be used for 
transfers to or within the physical territory of Australia, the United 
Kingdom, or the United States, per AECA section 38(l)(1)(C)(2).
     In Sec.  126.7(b)(2), the pool of eligible members, known 
as authorized users, is created to facilitate secure defense trade and 
cooperation. Australia and the United Kingdom's members will undergo an 
authorized user enrollment process, in coordination with DDTC, and 
those members will be listed through the DDTC website. Members located 
in the United States must be registered with DDTC and not debarred 
under ITAR Sec.  127.7. The UK and Australia authorized users may 
request that DDTC provide confirmation of the status of U.S. authorized 
users. As these lists are subject to change, DDTC will confirm the 
eligibility of parties under this exemption prior to the transfer 
(e.g., export, temporary import, reexport, etc.) of defense articles or 
defense services.
     In Sec.  126.7(b)(3), the defense articles and defense 
services listed in Supplement No. 2 to Part 126 are not eligible for 
this proposed exemption. These items are excluded from eligibility 
under the proposed exemption because (1) they are exempted from 
eligibility by statute, including AECA section 38(j)(1)(C)(ii), or (2) 
are specifically exempted by either the UK, Australia, or the United 
States, per AECA section 38(l)(4)(A). For those items excluded from 
eligibility to be transferred under this proposed exemption by the 
United States, the U.S. government assessed that the defense articles 
and defense services in the list require a license or other approval 
from DDTC due to their importance to the national security and foreign 
policy interests of the United States. These items are, however, 
subject to the expedited licensing procedures listed in Sec.  126.15 
and may be reviewed and revised during the lifetime of the exemption. 
The Department notes that Supplement No. 2 to Part 126 lists the USML 
entries in column 1 that represent the location of the excluded defense 
articles and defense services within the USML. A USML category's 
listing in column 1 does not indicate the entire USML category is 
excluded; only the portions of those entries that are further described 
in column 2 are excluded. When reviewing the list of exclusions, 
careful review of all relevant entries is required. For example, when 
determining whether manufacturing know-how and source code described in 
USML Category IV(i) is excluded, entries such as exclusions for 
technical data designated as Missile Technology (MT) or directly 
related to anti-tamper articles may apply, and manufacturing know-how 
and source code are each addressed in separate exclusion entries:
    [cir] IV(a), (b), and (g): Manufacturing know-how and source code 
directly related to articles in these paragraphs are both excluded.
    [cir] IV(c): Manufacturing know-how directly related to articles in 
this paragraph is not excluded, but directly related source code is 
excluded.
    [cir] IV(d) and (h): Manufacturing know-how directly related to 
articles in these paragraphs is excluded, but directly related source 
code is not excluded.
     In Sec.  126.7(b)(4), transferors that use this proposed 
exemption must abide by this requirement for recordkeeping purposes, 
and such records must be made available to DDTC upon request.
     In Sec.  126.7(b)(5), the limitations provided exclude 
exemption use for transfers that would require certification to 
Congress pursuant to sections 36(c) and 36(d) of the AECA.
     In Sec.  126.7(b)(6) and (7), the Department is 
reiterating other ITAR provisions to underscore that the proposed 
exemption is subject to other requirements within the subchapter, and 
the named sections are not an exhaustive list.
     In Sec.  126.7(b)(8), the Department is establishing that 
classified defense articles and defense services are eligible for 
transfer under this exemption provided the authorized users in the 
United States, Australia, and the United Kingdom meet their respective 
industrial security requirements. For authorized users in the United 
States, this is the National Industrial Security Program Operating 
Manual (NISPOM) (32 CFR part 117) and, for Restricted Data, the Atomic 
Energy Act of 1954, as amended. For Australian authorized users, this 
is the Defence Security Principles Framework (DSPF) Principle 16 and 
Control 16.1, Defence Industry Security Program, and for United Kingdom 
authorized users this is the Government Functional Standards (GovS) 
007: Security.
     The Department is also proposing to add a provision to the 
exemption in ITAR Sec.  126.18 to allow certain dual nationals of 
Australia and the United Kingdom to receive classified defense articles 
without a separate license from DDTC. These persons must be authorized 
users of the exemption in Sec.  126.7 or regular employees of such 
authorized users in Sec.  126.7, hold a security clearance approved by 
Australia, the United Kingdom, or the United States that is equivalent 
to the classification level of SECRET or above

[[Page 35030]]

in the United States, and be located within the physical territory of 
Australia, the United Kingdom, or the United States or be a member of 
the armed forces of Australia, the United Kingdom, or the United States 
acting in their official capacity. The proposed addition of Sec.  
126.18(e) is to facilitate the use of the exemption at Sec.  126.7 and 
allow dual nationals of another country, and Australia or the United 
Kingdom, to transfer classified defense articles provided the listed 
criteria, as described in Sec.  126.18(e), are met.
     Lastly, the Department is proposing to revise Sec.  126.15 
per the provisions of section 1344 of the NDAA for Fiscal Year 2024. 
This revised text would note the review of license applications for 
exports of certain commercial, advanced-technology defense articles and 
defense services to or between the physical territories of Australia, 
the United Kingdom, or Canada, and are with government or corporate 
entities from such countries, shall be processed within certain 
timeframes. The subject export must not be eligible for transfer under 
an ITAR exemption. License requests related to a government-to-
government agreement between Australia, the United Kingdom, or Canada 
and the United States must be approved, returned, or denied within 30 
days of submission. For all other license applications subject to this 
section, any review shall be completed no later than 45 calendar days 
after the date of the application. The Department notes that the 
existing language in Sec.  126.15 paragraphs (a) and (b) are separate 
ITAR provisions implementing requirements that originated in the NDAA 
for Fiscal Year 2005.
    The Department issues this proposed rulemaking noting that the AECA 
requires that an exemption must be immediately implemented when the 
Department certifies that Australia and/or the United Kingdom meet the 
requirements of section 38(l)(1)(A). The exemption contemplated by this 
proposed rule is designed to execute this requirement. This proposed 
rule is being published in order to solicit public comment on the 
clarity and utility of such an exemption, and related proposed changes, 
including the list of excluded defense articles and defense services 
found at the proposed Supplement No. 2 to Part 126.
    Finally, the Department notes the changes to Sec.  126.15 of this 
proposed rule may be implemented by a separate final rule, based on 
timing and statutory constraints.

Regulatory Analysis and Notices

Administrative Procedure Act

    This rulemaking is exempt from the notice-and-comment rulemaking 
requirements of the Administrative Procedure Act (APA) pursuant to 5 
U.S.C. 553(a)(1) as a military or foreign affairs function of the 
United States Government. Despite this exemption, the Department has 
elected to publish this proposed rule for public comment.

Regulatory Flexibility Act

    Since this rule is exempt from the notice-and-comment provisions of 
5 U.S.C. 553 as a military or foreign affairs function, the rule does 
not require analysis under the Regulatory Flexibility Act.

Unfunded Mandates Reform Act of 1995

    This rulemaking does not involve a mandate that will result in the 
expenditure by State, local, and tribal governments, in the aggregate, 
or by the private sector, of $100 million or more in any year and it 
will not significantly or uniquely affect small governments. Therefore, 
no actions are deemed necessary under the provisions of the Unfunded 
Mandates Reform Act of 1995.

Executive Orders 12372 and 13132

    This rulemaking will not have substantial direct effects on the 
States, on the relationship between the national government and the 
States, or on the distribution of power and responsibilities among the 
various levels of government. Therefore, in accordance with Executive 
Order 13132, it is determined that this proposed amendment does not 
have sufficient federalism implications to require consultations or 
warrant the preparation of a federalism summary impact statement. The 
regulations implementing Executive Order 12372 regarding 
intergovernmental consultation on Federal programs and activities do 
not apply to this rulemaking.

Executive Orders 12866, 14094 and 13563

    Executive Order 12866, as amended by Executive Order 14094, and 
Executive Order 13563 direct agencies to assess all costs and benefits 
of available regulatory alternatives and, if regulation is necessary, 
to select regulatory approaches that maximize net benefits (including 
potential economic, environmental, public health and safety effects, 
distributed impacts, and equity). Executive Order 13563 emphasizes the 
importance of quantifying both costs and benefits, of reducing costs, 
of harmonizing rules, and of promoting flexibility. Because the scope 
of this rule does not impose additional regulatory requirements or 
obligations, the Department believes costs associated with this rule 
will be minimal. Regarding the proposed exemption, Australia and the 
United Kingdom, as set forth in the Section 655 reports required 
annually by the Foreign Assistance Act of 1961, as amended, are 
ordinarily among the most commonly-licensed destinations for transfers 
subject to the ITAR. The Department expects that fewer license 
applications will be submitted as a result of this rule for authorized 
users that meet the criteria of the exemption, for eligible transfers 
of defense articles and defense services to and between Australia, the 
United Kingdom, and the United States. Consequently, this exemption 
will relieve licensing burdens for some exporters. Regarding the 
expedited licensing review process when an ITAR exemption is not 
available for use, the Department expects minimal costs associated with 
this provision for the public, with the benefit of license applications 
involving Australia, the United Kingdom, or Canada being subject to 
faster adjudication. The Department is seeking public comment on its 
assessment of the costs and benefits of this proposed rule. This rule 
has been designated as a significant regulatory action by the Office 
and Information and Regulatory Affairs under Executive Order 12866.

Executive Order 12988

    The Department of State has reviewed this rulemaking in light of 
Executive Order 12988 to eliminate ambiguity, minimize litigation, 
establish clear legal standards, and reduce burden.

Executive Order 13175

    The Department of State has determined that this rulemaking will 
not have tribal implications, will not impose substantial direct 
compliance costs on Indian tribal governments, and will not preempt 
tribal law. Accordingly, Executive Order 13175 does not apply to this 
rulemaking.

Paperwork Reduction Act

    This rulemaking does not impose or revise any information 
collections subject to 44 U.S.C. Chapter 35.

List of Subjects in 22 CFR Part 126

    Arms and munitions, Exports.

    For the reasons set forth above, title 22, chapter I, subchapter M, 
part 126 is proposed to be amended as follows:

[[Page 35031]]

PART 126--GENERAL POLICIES AND PROVISIONS

0
1. The authority citation for part 126 is revised to read as follows:

    Authority:  22 U.S.C. 287c, 2651a, 2752, 2753, 2776, 2778, 2779, 
2779a, 2780, 2791, 2797; Sec. 1225, Pub. L. 108-375, 118 Stat. 2091; 
Sec. 7045, Pub. L. 112-74, 125 Stat. 1232; Sec. 1250A, Pub. L 116-
92, 133 Stat. 1665; Sec. 205, Pub. L. 116-94, 133 Stat. 3052; Secs. 
1343 and 1344, Pub. L. 118-31, 137 Stat. 510; E.O. 13637, 78 FR 
16129, 3 CFR, 2013 Comp., p. 223.

0
2. Add Sec.  126.7 to read as follows:


Sec.  126.7  Exemption for defense trade and cooperation among 
Australia, the United Kingdom, and the United States.

    (a) No license or other approval is required for the export, 
reexport, retransfer, or temporary import of defense articles, the 
performance of defense services, or engagement in brokering activities 
as described in part 129 of this subchapter, between or among 
authorized users of this exemption, subject to the requirements and 
limitations in paragraph (b) of this section.
    (b) The exemption described in paragraph (a) of this section is 
subject to the following requirements and limitations:
    (1) The transfer must be to or within the physical territory of 
Australia, the United Kingdom, or the United States;
    (2) The transferor and recipient must be:
    (i) U.S. persons registered with the Directorate of Defense Trade 
Controls (DDTC) and not debarred under Sec.  127.7 of this subchapter; 
or
    (ii) Authorized users identified through the DDTC website;
    (3) The defense article or defense service is not identified in 
Supplement No. 2 to part 126 of this subchapter as ineligible for 
transfer under this exemption;
    (4) The transferor shall maintain records of each transfer 
available to the Directorate of Defense Trade Controls upon request, 
including a description of the defense article or defense service; 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 or defense 
service; the date of the transaction; and the method of transfer;
    (5) The value of the transfer does not exceed the amounts described 
in Sec.  123.15 of this subchapter and does not involve the 
manufacturing abroad of significant military equipment as described in 
Sec.  124.11 of this subchapter;
    (6) The transfer is subject to meeting the requirements of this 
subchapter, to include Sec. Sec.  120.15(d) and 120.16 of this 
subchapter, parts 122 and 123 of this subchapter (except insofar as 
exemption from licensing requirements is herein authorized) and Sec.  
126.1 of this subchapter, and the requirement to obtain non-transfer 
and use assurances for all significant military equipment;
    (7) Transferors must comply with the requirements of ITAR Sec.  
123.9(b) of this subchapter; and
    (8) For U.S. authorized users, transfers of classified defense 
articles and defense services must meet the requirements in 32 CFR part 
117, National Industrial Security Program Operating Manual (NISPOM) 
and, for Restricted Data, the Atomic Energy Act of 1954, as amended. 
Australian authorized users must meet the requirements in the Defence 
Security Principles Framework (DSPF) Principle 16 and Control 16.1, 
Defence Industry Security Program, and United Kingdom authorized users 
must meet the requirements in the Government Functional Standards GovS 
007: Security.
* * * * *
0
3. In Sec.  126.15, revise the section heading and add paragraphs (c) 
and (d) to read as follows:


Sec.  126.15  Expedited processing of license applications for the 
export of defense articles and defense services to Australia, the 
United Kingdom, or Canada.

* * * * *
    (c) Any application submitted for authorization of the export of 
defense articles or defense services to Australia, the United Kingdom, 
or Canada, describing an export that cannot be undertaken under an 
exemption provided in this subchapter, will be expeditiously processed 
by the Department of State. The prospective export must occur wholly 
within, or between the physical territories of Australia, the United 
Kingdom, Canada, or the United States, and between governments or 
corporate entities from such countries.
    (d) Any license application in paragraph (c) of this section to 
export defense articles and defense services related to a government-
to-government agreement between Australia, the United Kingdom, or 
Canada and the United States must be approved, returned, or denied 
within 30 days of submission. For all other license applications, any 
review shall be completed no later than 45 calendar days after the date 
of the application. The provisions of this paragraph do not apply to 
any applications which require congressional certification.
0
4. In Sec.  126.18, add paragraph (e) to read as follows:


Sec.  126.18  Exemptions regarding intra-company, intra-organization, 
and intra-governmental transfers to employees who are dual nationals or 
third-country nationals.

* * * * *
    (e) Notwithstanding any other provisions of this subchapter, no 
license is required for the transfer of classified defense articles to 
citizens of Australia or the United Kingdom who:
    (1) Are dual nationals of another country;
    (2) Are authorized users, or regular employees of an authorized 
user of the exemption in Sec.  126.7;
    (3) Hold a security clearance approved by Australia, the United 
Kingdom, or the United States that is equivalent to the classification 
level of SECRET or above in the United States; and
    (4) Are either:
    (i) Within the physical territory of Australia, the United Kingdom, 
or the United States; or
    (ii) A member of the armed forces of Australia, the United Kingdom, 
or the United States acting in their official capacity.
0
5. Add Supplement No. 2 to Part 126 to read as follows:
Supplement No. 2 to Part 126--Excluded Technology List
    Supplement No. 2 lists the defense articles and defense services 
excluded from the scope of the exemption provided at Sec.  126.7 of 
this subchapter. USML entries in column 1 represent the location of the 
excluded defense articles and defense services within the USML and does 
not indicate the entire USML entry in column 1 is excluded; only the 
portions of those entries that are further described in column 2 are 
excluded.

[[Page 35032]]



------------------------------------------------------------------------
            USML entry                            Exclusion
------------------------------------------------------------------------
I through XV, and XX..............  Missile Technology Control Regime
                                     (MTCR) articles, as annotated on
                                     the USML by an ``MT'' designation;
                                     and directly related technical data
                                     and defense services.
I through XX......................  Readily identifiable anti-tamper
                                     articles, not already installed in
                                     the commodity they are intended to
                                     protect; and directly related
                                     technical data and defense
                                     services.
II(k), III(e), IV(i), VI(g), and    Source code, directly related to
 XIX(g).                             articles described in USML
                                     Categories II(a)(4), II(d),
                                     II(j)(12) or (16), III(d)(1) or
                                     (2), IV(a), (b), (c), or (g), VI(a)
                                     or (c), or XIX(e), beyond that
                                     required for build-to-print, design-
                                     to-specification, or basic
                                     operation, maintenance, or
                                     training, unless export is pursuant
                                     to a written solicitation or
                                     contract issued or awarded by the
                                     U.S. Department of Defense for a
                                     pre-determined end-use.
II(k), III(e), IV(i), X(e), and     Manufacturing know-how (see Sec.
 XIX(g).                             120.43(e)) directly related to:
                                    --articles described in USML
                                     Categories II(d), III(d)(1) or (2),
                                     IV(a), (b), (d), (g), or (h),
                                     X(a)(1) or (2), or XIX; or
                                    --parts, components, accessories, or
                                     attachments that are only used in
                                     those articles.
XI(d) and XII(f)..................  Classified manufacturing know-how
                                     directly related to:
                                    --articles described in USML
                                     Categories XI(a)(3) or (4), or
                                     XII(d); or
                                    --parts, components, accessories, or
                                     attachments that are only used in
                                     those articles.
II(j)(9) through (11), and (k)....  Articles described in USML Category
                                     II(j)(9) through (11) that are not
                                     an element of an armament, weapon,
                                     or military platform; and directly
                                     related technical data and defense
                                     services.
III(a)(9) and (e); IV(a)(5) and     Cluster munitions and articles
 (6), (b)(2), (c), (g), (h), and     specially designed for cluster
 (i); VI(f)(6) and (g); VIII(h)(6)   munitions; and directly related
 and (i); XI(c) and (d); XII(a),     technical data and defense
 (d), (e), and (f); and XX(c) and    services.
 (d).
IV(a)(3), (9), (10), and (11),      Articles described in USML Category
 (b)(2), (h)(5), and (i).            IV(a)(3), (9), (10), or (11),
                                     (b)(2), or (h)(5); and directly
                                     related technical data and defense
                                     services.
V(a)(13)(iii) and (iv),             Articles described in USML Category
 (a)(23)(iii), (d)(3), (i), and      V(a)(13)(iii) or (iv),
 (j).                                (a)(23)(iii), or (d)(3); articles,
                                     other than propellants, described
                                     in USML Category V(i); and directly
                                     related technical data and defense
                                     services.
VI(e), (f)(5), and (g); and         Articles described in USML Category
 XX(b)(1), (c), and (d).             VI(e) or (f)(5), or XX(b)(1);
                                     articles specially designed for
                                     articles described in USML Category
                                     XX(b)(1); and directly related
                                     technical data and defense
                                     services.
VIII(a)(2), (h)(1), and (i).......  The F-22 aircraft and articles
                                     specially designed for the
                                     F[dash]22, other than those also
                                     used in aircraft other than the F-
                                     22; and directly related technical
                                     data and defense services.
X(a)(7)(ii), (d)(2) and (3), and    Articles described in USML Category
 (e).                                X(a)(7)(ii); articles specially
                                     designed therefor; and directly
                                     related technical data and defense
                                     services.
XI(a) through (d); and XIII(b) and  Classified countermeasures and
 (l).                                counter-countermeasures described
                                     in USML Category XI(a) and
                                     specially designed parts,
                                     components, accessories, and
                                     attachments therefor, other than
                                     underwater acoustic decoy
                                     countermeasures.
                                    Classified articles described in
                                     USML Category XI(b) or XIII(b).
                                    Articles specially designed for
                                     commodities or software described
                                     in USML Category XIII(b).
                                    Classified articles described in
                                     USML Category XI(c) directly
                                     related to cryptographic systems.
                                    Articles directly related to naval
                                     acoustic spectrum control and
                                     awareness described in USML
                                     Category XI(a)(1)(i) and (ii) and
                                     (c) and directly related technical
                                     data and defense services.
XII(d)(3) and (f).................  Classified articles described in
                                     USML Category XII(d)(3) and
                                     directly related technical data and
                                     defense services; and source code
                                     and classified technical data and
                                     defense services directly related
                                     to night vision commodities
                                     described in USML Category
                                     XII(c)(1) or (2), or (e), beyond
                                     basic operations, maintenance, and
                                     training information.
XIII(d)(2) and (l)................  Articles described in USML Category
                                     XIII(d)(2); and directly related
                                     technical data and defense
                                     services.
XIV(a), (b), (c)(5), (f)(1), (i),   Articles described in USML Category
 and (m).                            XIV(a), (b), (c)(5), (f)(1), or
                                     (i); and directly related technical
                                     data and defense services.
XV(a), (e), and (f)...............  Classified articles described in
                                     USML Category XV(a) or (e); and
                                     directly related classified
                                     technical data and defense
                                     services.
XVI...............................  Articles described in USML Category
                                     XVI; and directly related technical
                                     data and defense services.
XVIII.............................  Classified articles described in
                                     USML Category XVIII specially
                                     designed for counter-space
                                     operations; and directly related
                                     classified technical data and
                                     defense services.
XIX(e), (f)(1) and (2), and (g)...  Classified articles described in
                                     USML Category XIX(e), (f)(1), or
                                     (f)(2), not already integrated into
                                     a complete engine; and directly
                                     related technical data and defense
                                     services.
XX(b)(2), (c), and (d)............  Articles described in USML Category
                                     XX(b)(2); articles specially
                                     designed therefor; and directly
                                     related technical data and defense
                                     services.
XX(d).............................  Manufacturing know-how (see Sec.
                                     120.43(e)) directly related to:
                                    --crewed vessels, or classified
                                     uncrewed vessels, described in USML
                                     Category XX(a); or
                                    --articles described in USML
                                     Category XX(b) or (c) that are:
                                    [cir] used only in crewed vessels,
                                    [cir] directly related to classified
                                     payloads, or
                                    [cir] directly related to classified
                                     Uncrewed Underwater Vehicle (UUV)
                                     signature reduction techniques.
XXI...............................  Commodities, software, technical
                                     data, and defense services, unless
                                     specifically designated as eligible
                                     for the AUKUS exemption in State's
                                     written Category XXI determination.
------------------------------------------------------------------------


Bonnie D. Jenkins,
Under Secretary, Arms Control and International Security, Department of 
State.
[FR Doc. 2024-08829 Filed 4-30-24; 8:45 am]
BILLING CODE 4710-25-P