State Department Plans ITAR Overhaul

The State Department is planning a complete overhaul of the International Traffic In Arms Regulations (ITARs) which govern the export of defense related articles.  The ITARs often apply to dual-use equipment that is exported.  This can include articles that were originally designed for use on defense related aircraft but subsequently used on civilian aircraft.

The State Department’s plan is to review the entire set of ITARs and to chose which elements need to be updated or revised.  For members of the public that wild like to see significant revisions to the ITARs in order to bring them up-to-date with modern export practice, and to make compliance easier, this is certainly the best opportunity to influence change and it may be the only opportunity to achieve meaningful revision.

The State Department is already looking at how best to revise the United Sates Munitions List, and has been considering making Category VIII (Aircraft and Associated Equipment) more explicit in order to better define what is regulated and what is not regulated.  Our contacts in the government have already asked for advice on how best to structure this provision.

The State Department’s work plan also includes an examination of the following elements:

(1) Review of USML Categories

(2) New licensing exemption for certain replacement parts and incorporated articles (ITAR sections 123.28 and 126.19).

(3) New licensing exemption for transfer of defense articles to dual national and third-country national employees (ITAR section 126.18).

(4) New licensing exemption for the temporary export for personal use of chemical agent protective gear (ITAR section 123.17).

(5) New electronic submission of registration payments (ITAR parts 120, 122, and 129).

(6) Clarification of records maintenance requirement (ITAR section 122.5)

(7) Discontinue submissions of form DSP–53 (ITAR section 123.4).

(8) Change in requirements for the return of licenses (ITAR section 123.22).

(9) Revision of agreements procedures (ITAR part 124).

(10) Update information on sanctioned countries (ITAR section 126.1).

(11) Clarify and reflect new policy for exports made by or for the U.S. Government (ITAR section 126.4).

(12) Revise brokering regulations (ITAR part 129).

(13) Revise definition of “defense service” (ITAR sections 120.9, 120.38, 124.1, and 124.2).

(14) New regulations implementing the Australia and UK defense cooperation treaties (ITAR parts 120, 123, 124, 126, 127, and 129).

(15) Establishment of a general program license, which would allow multiple exporters to collaborate with foreign partners on U.S. government programs (ITAR part 123).

(16) Revise/establish definitions of/for “technology,” “specially designed,” and “public domain” (ITAR part 120).

(17) Revision of Missile Technology Control Regime annex (ITAR part 121).

Factors that the State Department will take into account in assessing any proposed changes are statutory requirements, recouping the cost of service, and increase in net benefits.

The State Department’s preliminary work plan can be found online in the Federal Register at on the State Department’s preliminary work plan will be accepted until June 30, 2011.


About Jason Dickstein
Mr. Dickstein is the President of the Washington Aviation Group, a Washington, DC-based aviation law firm. He represents several aviation trade associations, including the Aviation Suppliers Association, the Aircraft Electronics Association, the Air Carrier Purchasing Conference, and the Modification and Replacement Parts Association. He also represents private clients drawn from the spectrum of the aviation industry.

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