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State Dept. Regulatory Agenda Includes New Mention of Amendment to ITAR

The Department of State published its spring 2019 regulatory agenda. The agenda includes a new mention of a proposal to amend the International Traffic in Arms Regulations to include definitions for "activities that are not exports, re-exports, or retransfers." The activities include "launching items into space; providing technical data to U.S. persons within the United States or within a single country abroad; and moving a defense article between the states, possessions, and territories of" the U.S., State said. The proposal also "removes from ITAR licensing requirements the electronic transmission and storage of unclassified technical data via foreign communications infrastructure when the data is secured sufficiently to prevent access by foreign persons." Under the proposal, State would also amend the ITAR to create definitions for “access information” and revise definitions of release to include “the improper provision of access information to foreign persons.” State is aiming to issue the proposal in September, it said.

The agenda also includes a rule that would revise Categories I, II and III of the U.S. Munitions List to include items that gives the U.S. a “critical military or intelligence advantage or otherwise warrant control at the highest level.” The rule states that exports of “commercially available firearms and ammunition,” removed from Category I and III, will continue to be controlled under the Bureau of Industry and Security’s Commerce Control List. State said the transition from the Munitions List to the CCL “will result in a net reduction in regulatory burden for the affected manufacturing and export community.” State aims to issue the rule in May 2019, it said.

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The agenda also continues to mention a proposal to reorganize part 125 of the ITAR to combine all ITAR exemptions “into one part and to organize the exemptions in a manner that enhances their clarity and ease of use,” State said. State said it also plans to reorganize parts 123 and 124 of the ITAR to “consolidate regulatory provisions relevant to licenses for the export of defense articles and defense services.” State said it plans to organize it in a “manner that enhances its clarity and ease of use.” State aims to issue the proposal in December 2019, it said.

State again mentioned an advance notice of proposed rulemaking that aimed to solicit comments for ITAR controls “on launch vehicles, ballistic missiles and other items” under Category IV of the USML and for “spacecraft and related items” in Category XV. State said the notice will be used to review the current controls and “address the relevant comments.” In April, State and Commerce officials urged stakeholders to make detailed public comments to inform the review (see 19041800140).

Agenda Highlights

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

Proposed Rule Stage
International Traffic in Arms Regulation: USML Categories V, X, XI
*International Traffic in Arms Regulations: Activities Not Exports, Re-exports, or Transfers
International Traffic in Arms Regulations: ITAR Exemptions
International Traffic in Arms Regulations: Revision to USML Categories VI, VII, XIII, and XX
Notice of Inquiry; Request for Comments Regarding Review of United States Munitions List Categories IV and XV
Final Rule Stage
Amendment to the International Traffic in Arms Regulations: Corrections and Clarifications
Amendment to the International Traffic in Arms Regulations: Tunisia, Eritrea, Somalia, the Democratic Republic of the Congo, Liberia, Côte d'Ivoire, Sri Lanka, Vietnam, and Other Changes
International Traffic in Arms Regulations: Categories I, II, and III
International Traffic in Arms Regulations: Corrections and Clarifications
International Traffic in Arms Regulations: Definitions
Regulatory Reform Revisions to the International Traffic in Arms Regulations