State Dept. Regulatory Agenda Previews Efforts to Revise ITAR

The State Department’s recently published fall 2023 regulatory agenda mentions rules that will update defense export controls and make other changes and clarifications to the International Traffic in Arms Regulations.

The agenda mentions a new rule for the agency’s Directorate of Defense Trade Controls that would amend the ITAR to revise DDTC registration fees, a change previewed by an agency official in October (see 2310120063). That rule is expected in March.

The agency continued to mention a host of other notable rules that could soon make changes to the ITAR, including a proposed rule, due in August, that would update certain controls around “circuit boards and semiconductors.” That change would revise “paragraphs (c)(1) through (4) of” Category XI of the U.S. Munitions List to “describe more precisely the articles warranting control on the USML.”

Another proposal could lead to revisions to certain definitions and controls related to defense services. That rule, which was expected in December, would propose amendments to "certain language" in part 120 of the ITAR, which covers "purposes and definitions."

Several rules could fall under DDTC’s ongoing effort to update and reorganize the ITAR (see 2302240048), including one expected in October that would “modernize” the USML “in a manner that enhances its clarity, consistency, and ease of use.” Another proposed rule due this month would reorganize part 125 of the ITAR to consolidate all ITAR exemptions into one part and reorganize parts 123 and 124 “to consolidate regulatory provisions relevant to” certain export licenses and to organize the exemptions "in a manner that enhances their clarity and ease of use."

Other rules could revise specific controls for certain defense exports. An interim final rule due this month would make “targeted revisions” to the USML, including by removing entries that shouldn’t be subject to license requirements and adding entries for “critical and emerging technologies that warrant inclusion.” Another interim final rule expected in October would amend USML Category XVI (Nuclear Weapons Related Articles) to “better harmonize its rules” with the Energy Department’s regulations. This would make sure all items that give the U.S. “critical military or intelligence advantages” are subject to export controls at all times,” the agency said.

The agenda also continues to mention a proposed rule that would amend the ITAR’s definition of regular employee to allow certain people working with ITAR-controlled items to work remotely. The change has proven popular ever since the State Department began temporarily allowing certain workers to more easily work remotely due to travel issues caused by the COVID-19 pandemic (see 2105260008). The rule was expected in December.

Highlights of the State Department's trade-related rulemakings that are at the pre-rule, proposed, final or completed stages are below. New items are marked with an asterisk (*).