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    What is this 'no undercut' policy we always hear about?

    In the Missile Technology Control Regime, the Nuclear Suppliers Group, and the Australia Group, there is a no undercut policy. This means that members of these regimes will notify each other of their denials of exports licenses for items covered by the regimes, and other members agree to consult the denying country before approving an export of the same or similar items to the same end-user. This does not apply to 'catch all' denials of items not on the MTCR annex, but in practice, many countries take into consideration denials by regime partners when reviewing other license applications.

    Bureau of Industry & Security (BIS),USDOC

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