Compliance

The Australia-US Defence Trade Cooperation Treaty (the Treaty) includes compliance requirements for Australian Community members. 

Australian Community members must ensure that:

  • facilities for the handling and storage of Treaty articles are accredited to handle and store Treaty articles commensurate with the classification of the article
  • personnel requiring access to Treaty articles hold a current security clearance at, or equivalent to, baseline or higher
  • articles intended for transfer have been exported from the United States using the ITAR Treaty exemption, or, if already in Australia, have been transitioned into the Treaty
  • the receiver is a member of the Approved Community
  • an approved intermediate consignee is used to transfer the articles
  • all Treaty articles are appropriately marked.

Any instances of non-compliance to these obligations mused be reported to the United States Government. Australian Community members can contact Defence via email to help facilitate this.

Treaty transfer quick reference guide (PDF, 392.13 KB)

Treaty markings guide (PDF, 484.51 KB)

Conditions of approval

Conditions of approval are attached to all membership notices provided to new Australian Community members. In addition, an Australian Community member must meet the requirements of the Defence Trade Controls Act 2012 and the Defence Trade Controls Regulation 2013.

The following membership conditions are to be adhered to at all times, and underpin a compliance approach for any Australian Community member:

  • Any changes that may affect membership of the Australian Community must be reported to Defence within 5 business days. Changes may include:
    • a change in nominated senior executives
    • a change in facility, including relocation to a new business address
    • the acquisition or divestment of a subsidiary or foreign affiliate
    • a merger
    • a takeover or a change of location.
  • Written notification must be provided to Defence at least 60 calendar days in advance of any intended sale or transfer of ownership or control of a company that has been granted Australian Community membership to a foreign person. Once this change has taken place, the change must be reported to Defence within 5 business days.
  • Any unauthorised export, transfer, re-transfers or re-export of a Defence Article must be reported to Defence within 48 hours.
  • The Approved Australian Community member must obtain and keep security accreditation from Defence for any facilities and information and communication technology (ICT) systems used for storing, handling or manufacturing of Defence Articles.
  • An Australian Community member must not re-transfer or re-export US Defence articles as defined in section 5 of the Act (Defence Articles) without authorisation from the Government of Australia and/or the Government of the United States of America. 

Changes, reports and requests are to be submitted by email.

Reporting and record-keeping

Australian Community members must report changes or incidents that may impact their membership or matters of national security. Australian Community members must adhere to the following requirements:

  • annual compliance reporting to Defence
  • notification of any changes to personnel, facilities or Information and communications technology systems that may affect membership in the Australian Community
  • notification of any changes to foreign ownership, control and influence
  • reporting all security incidents such as theft, loss or unauthorised access involving Treaty articles.

When a Treaty activity occurs a record of that activity must be made. The record must identify the article and provide details on the activity that has occurred. The level of detail should be sufficient enough for ease of auditing.

The annual compliance report must be submitted within 30 days of the end of the Australian financial year (30 June) regardless of the number of Treaty transfers that have occurred.

The annual compliance report form is available via the Treaty tile on the MADE portal landing page.

The record-keeping requirements for Australian community members are listed in the Defence Trade Controls Regulation 2013.

Record keeping template (PDF, 400.94 KB)

Compliance monitoring activities

Compliance monitoring supports and verifies Australian Community member compliance with Treaty obligations. Defence conducts compliance monitoring activities in consultation with Australian Community members.

Compliance monitoring powers include the power to enter, search, inspect and create copies of anything relevant to the Treaty on the premises of an Australian Community member. Only Defence personnel who are appointed as authorised officers can undertake compliance activities that require entry to a facility.

Defence is required to report on Australian Community member compliance with Treaty obligations within 30 days of the end of each financial year. Australian Community members be notified to submit annual compliance reports prior to the end of each financial year.