BAE Consent Agreement Published
On July 8, 2026, BAE Systems, Inc. entered into a consent agreement with the Department of State, Directorate of Defense Trade Controls (DDTC). This agreement settled allegations of ITAR violations, including unauthorized exports and retransfers, unauthorized furnishing of defense services, and violations of terms, conditions, and provisos of DDTC authorizations. The agreement includes a $36 million civil penalty and strengthened compliance policies, procedures, and training under a Special Compliance Officer (SCO).
The charging letter, agreement, and order are posted on the DDTC website.
BIS Eases UAE Export Controls
On July 14, 2026, the Department of Commerce, Bureau of Industry and Security (BIS) issued a rule (91 FR 43034) enhanced favorable treatment for the United Arab Emirates (UAE) under the Export Administration Regulations (EAR). The UAE was removed from Country Groups D:3 (Chemical & Biological) and D:4 (Missile Technology) and added to Country Group A:5. As a result, additional license exceptions including Strategic Trade Authorization (STA) and improved access to access to advanced computing items will be available for UAE.
BIS also published a press release on this action.
State Sponsor of Terrorism Determination Regarding Syria Rescinded
Continuing the trend of relaxed controls on Syria, on August 31, 2026 (91 FR 55965), the Department of State rescinded Syria’s State Sponsor of Terrorism Determination originally issued December 29, 1979.
Syria remains on the ITAR 126.1 prohibited destination list and Country Group E:1 (terrorist supporting countries) under the Export Administration Regulations. It is also subject to country-specific license requirements under EAR § 746.9. Further updates should be expected.
Cyprus § 126.1 Waiver Renewed
Cyprus remains in the unique situation of being found in the ITAR § 126.1 list of proscribed destinations, but with an annually suspended status. On September 11, 2026, DDTC published a rule (91 FR 57787) suspending Republic of Cyprus’ status as a proscribed destination through September 30, 2027 (Fiscal Year 2027).
Silencers Move from USML to CCL
On July 23, 2026, DDTC and BIS published a pair of rules (91 FR 46279 and 91 FR 46252) moving silencers, mufflers, and sound suppressors for non-automatic and semi-automatic firearms from USML Category I(e) to the Commerce Control List under Export Control Classification Numbers (ECCNs) 0A501.f and 0A502.f effective November 20, 2026.
The change was based on a determination that the items do not “provide a critical military or intelligence advantage or, in the case of weapons, have an inherently military function.” Silencers, mufflers, and sound suppressors specially designed for fully automatic firearms will remain on the USML.
BIS also published a press release on this action.
USML Category XI(b) Extended for Two Years
On August 28, 2026, DDTC published a rule (91 FR 55461) continuing the current text controlling intelligence-analytics software in USML Category XI(b). The previous extension had been announced in 2021, anticipating a wholesale revision of the category expected by 2026.
Export Control Reform measures were originally scheduled to remove “software” from XI(b) as well as the capability to analyze and produce information from the electromagnetic spectrum. Some software would remain controlled under XI(d). Based concerns that a revised category would no longer clearly control “certain intelligence-analytics software,” DDTC has continued to “amend” XI(b) to maintain the original text.
USML Revised to Exclude Civil Aircraft with Survivability Equipment
On August 28, 2026, DDTC published an interim final rule (91 FR 55457) excluding survivability-enhanced aircraft from USML Category VIII(a)(8).
Effective October 13, 2026, a definition of Aircraft Survivability Equipment (ASE) will be added to ITAR § 121.0 along with an exclusion from the definitions of exports, reexports, and retransfers in § 120.54. ASE will remain controlled under USML Category XI(a)(4), but “secured ASE” will not automatically subject aircraft to authorization requirements.
As noted in the rule:
“ASE specifically refers to directed infrared countermeasures (DIRCM) and infrared or ultraviolet missile warning systems necessary for the operation of DIRCM. Survivability-enhanced aircraft are often used to mitigate risk in the transport of passengers or goods, in various threat environments. These aircraft incorporate ASE described on the USML to protect the aircraft and its occupants from man-portable air defense systems (MANPADS) and other guided weapons that can pose a serious threat to aircraft. Foreign governments also utilize civil aircraft incorporating ASE to transport heads of state and other persons, and some airlines have incorporated ASE to protect passengers traveling in higher risk areas.”