DDTC Regulatory Agenda: Ten ITAR Initiatives on Deck

Chris Stagg and his team at Holland & Knight have published a survey of the U.S. Department of State’s Directorate of Defense Trade Controls (DDTC) regulatory agenda, highlighting ten planned International Traffic in Arms Regulations (ITAR) and U.S. Munitions List (USML) initiatives expected in the coming year.

“Following one of the most significant years of rulemaking activity, the U.S. Department of State’s Directorate of Defense Trade Controls (DDTC) is planning another year of substantial International Traffic in Arms Regulations (ITAR) rulemaking over the next 12 months,” the September 4th client alert notes.

“DDTC’s rulemaking plans include considerable attention on the U.S. Munitions List (USML), as Congress now mandates the list is reviewed every three years.”

Initiatives include:

• USML revisions: three separate actions, including an interim final rule on space-related controls (Categories IV and XV), an omnibus USML proposal consolidating prior updates to semiconductors, circuit boards, and harmonization of Category XVI, and a long-anticipated final rule on defense services, enumerating military and intelligence services under Category IX.

• Allied exemptions: a final rule implementing new licensing exemptions for Australia and the U.K. under ITAR §126.7, and expedited review under §126.15 for Australia, the U.K., and Canada.

• Deemed exports: an interim final rule narrowing controls to countries where a foreign person currently holds citizenship or permanent residency.

• Employment and reporting reforms: a proposed rule updating the definition of “regular employee” to account for remote work, and another proposed rule raising thresholds for Part 130 transaction reporting, shifting from transactional to annual submissions.

• Additional measures: updates to the personal protective equipment exemption, finalization of non-controlled events under ITAR §120.54 (including cloud computing), and a broad clarification and corrections rule to standardize ITAR text.

Stagg observes that “there are 10 total rulemakings planned, including three that are specific to the USML and cover space-related items,” underscoring a strong focus on technical list management and compliance modernization.

Link to Holland & Knight Alert [Here]

Practitioner Profile Chris Stagg [14015]