DDTC Regulatory Agenda Previews USML Updates, ITAR Changes

The agenda shows that DDTC is planning multiple rulemakings to tweak the USML, including a proposed rule planned for September titled "International Traffic in Arms Regulations: Proposed Omnibus USML Changes." The rule could eventually add and remove items from the USML and "clarify certain items described" on the list.

DDTC also is hoping to issue an interim final rule to build on the agency's October 2024 proposal to modernize U.S. space-related export controls, including by revising controls on launch vehicles, ballistic missiles and other items in Category IV of the USML and spacecraft and related items in Category XV (see 2410180027). The rule will make changes in response to public comments received by DDTC, the agency said. Space industry associations and companies largely welcomed the revisions, but they asked for several clarifications and fewer export control guardrails, including around services for the transmission of space launch vehicle telemetry, unmanned drone rocket propulsion subsystems and more 2412300013). DDTC was hoping to issue the rule in August.

The agenda also shows DDTC is targeting a December deadline for finalizing its July 2024 proposed rule outlining a new defense services definition and revisions to various controls under the ITAR (see 2407250032). Defense industry groups and firms told DDTC that the proposed rule was too unclear and broad and would likely exacerbate the already lengthy processing times for export license applications (see 2410250026). In its previous regulatory agenda, DDTC said it was hoping to issue the rule by September.

DDTC also is preparing to issue a final rule that will build on its interim final rule last year that created an exemption for defense trade between the U.S., Australia and the U.K. under the AUKUS arrangement (see 2408160019). The agency had hoped to issue the rule in August.

Another rule, due in December, would propose changes related to Part 130 of the ITAR, which deals with political contributions, fees and commissions relating to sales of defense articles and services. The rule is expected to request public comments about increasing the threshold value for those transactions that must be reported to the government, and it would also propose revising reporting requirements from transactional to annual.

Another notable rule, which DDTC had hoped to issue in July, is expected to revise the ITAR to "better standardize language, form, style, and structure throughout the regulations, as well as to make certain clarifications and corrections." The agency said the final rule will be part of its "ongoing regulatory reorganization program" and would also aim "to remove references to specific licensing forms and to begin eliminating the use of adjectives describing certain licenses, to conform license references to approved information collections, and to make conforming revisions to sections impacted by prior regulatory amendments and that were not included in those rulemakings."

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