DDTC Regulatory Agenda Previews Target Dates for Final Defense Services, Space Rules

The agenda shows DDTC is targeting September as the month by which it hopes to finalize its July 2024 proposed rule that outlined a new defense services definition and revisions to various controls under the International Traffic in Arms Regulations (see 2407250032). Defense industry groups and firms told DDTC that the proposed rule was too unclear, broad and would likely exacerbate the already lengthy processing times for export license applications (see 2410250026).

DDTC also is hoping to finalize by September its October proposed rule that would help to modernize U.S. export controls over space-related items by moving certain items from the USML to the Commerce Department’s Commerce Control List (see 2410180027). It also could finalize certain updates to controls on launch vehicles, ballistic missiles and other items in USML Category IV and spacecraft in Category XV.

Space industry associations and companies largely welcomed the proposal, although several asked the agency to eliminate some added export control guardrails and requested an extended timeline to allow space firms to update their compliance programs (see 2412300013).

The agenda also previews a proposed rule that would update ITAR controls involving circuit boards and semiconductors. The rule would “revise paragraphs (c)(1) through (4) of Category XI” of the USML to “describe more precisely the articles warranting control on the USML. The agency previously said it expected to issue the rule in August 2024 (see 2312280016) and then January 2025 (see 2407160022), but it’s now scheduled for July.

DDTC also is behind on another rule that would make “targeted revisions” to the USML, including by revising and excluding USML entries that don’t warrant inclusion, and adding entries for critical and emerging technologies that warrant inclusion. The interim final rule, which DDTC had hoped to issue last year, also “seeks to limit the items categorized in USML Category XXI," which covers defense articles and services that are “not otherwise enumerated” under other USML categories.

Another proposed rule, due in April, would build on the agency’s USML “modernization” efforts, including by proposing changes to the USML and to Supplement No. 1 to Part 126 of the ITAR in a “manner that enhances its clarity, consistency, and ease of use.”

Highlights of the State Department's trade-related rulemakings that are at the pre-rule, proposed, final or completed stages are below.