Author Archives: Export Compliance Solutions

Export Regulatory and Policy Update Roundup: February 2026

BIS Updates Cambodia Policy

On February 4, 2026, the Department of Commerce, Bureau of Industry and Security (BIS), published a rule (91 FR 5091) removing Cambodia from Country Group D:5.  This reflects the November 2025 removal of Cambodia from the International Traffic in Arms Regulations (ITAR) § 126.1 list of proscribed destinations.

Of note, Export Administration Regulations (EAR) restrictions on Cambodian military end users (§ 744.21) and  military-intelligence end users (§ 744.22) remain in effect.  Cambodia also remains in Country Group D:1 which is subject to a number of restrictions.

BIS Drone Rule

On January 21, 2026, BIS published an Interim Final Rule (91 FR 2467) titled “Streamlining Export Controls for Drone Exports.”

The rule makes two policy changes related to Export Control Classification Numbers (ECCNs) 9A012 and 9A120:

  1. Commercial UAVs with a maximum endurance of less than one hour may be exported to most Wassenaar Arrangement Participating States (Country Group A:1) without a license under ECCN 9A012.a.1.
  2. Long-range cargo delivery and agricultural spraying drones identified in ECCNs 9A012 and 9A120 may be exported to Country Group A:5 partners and allies under License Exception Strategic Trade Authorization (STA) with notification and reporting requirements.

DDTC Updates AUKUS Exemption

On December 30, 2025, the Department of State, Directorate of Defense Trade Controls (DDTC) published a rule (90 FR 61053) revising the ITAR § 126.7 license exemption which supports the AUKUS (Australia, the United Kingdom, and the United States) Trilateral Security Partnership.

The exemption now explicitly states that Australian federal-level and UK national-level departments or agencies are eligible without needing to be identified on the Authorized User List.  Reexports, retransfers, or temporary imports of defense articles to support the armed forces of Australia, the United Kingdom, or the United States are also authorized.

DDTC noted that there is an obligation to check the authorized user list in DECCS before any transfer and that they are considering improvements to the accessibility or functionality of the list.  DDTC also published a fact sheet on the updates.

OFAC Launches Voluntary Disclosure Portal

On February 6, 2026 the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced the launch of a new Voluntary Self-Disclosure Portal.  The portal is intended to streamline the disclosure submission and communications processes.

Export Regulatory and Policy Update Roundup: December 2025

BIS 50% Beneficiary Rule Suspended

On November 12, 2025, the Department of Commerce, Bureau of Industry and Security, published a rule (90 FR 50857) suspending the previously announced “50% Rule” for the Entity List and Military End User (MEU) List.

Originally scheduled to take effect with the expiration of a General License on November 28, 2025, the rule is now suspended for a year – through November 9, 2026.  Given the importance of this rule, companies should continue to work on implementing additional screening and due diligence measures on exporters and suppliers.  Keep in mind that restrictions also apply to unlisted parties worldwide and you don’t want to be caught short.  Contact us if you want a demo of ECScreening software.

USXports Tracking

The ELISA website that previously provided tracking for pending ITAR applications has been replaced with usxports.gov.  The new site is intended to provide a unified case search for applications submitted through DDTC’s DECCS and BIS’s SNAP-R licensing systems.  ELISA has been decommissioned, while BIS’s STELA (System for Tracking Export License Applications) remains online.

Cambodia Removed from ITAR § 126.1

Following our previous report that Cambodia would be removed from the ITAR 126.1 list of prohibited destinations, the Department of State, Directorate of Defense Trade Controls (DDTC) published a rule (90 FR 50489, November 7, 2025) officially making that change.

As stated in the rule:

As a result of this change, requests for authorization for transfers of defense articles and defense services to Cambodia will be adjudicated on a case-by-case basis and exemptions that are unavailable for transfers to countries listed in ITAR § 126.1 are now available for transfers to Cambodia, subject to the relevant criteria in the exemption being satisfied.

 Tri-Seal Advisory: Sanctions and Export Controls Relief for Syria

On November 10, 2025, the Department of State, Department of Commerce, and the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued a Tri-Seal Advisory: Sanctions and Export Controls Relief for Syria.  The advisory provides an overview of what business is currently permissible with Syria as well as what sanctions and other restrictions remain in place.  While some sanctions on specific persons and entities remain in place, Syria is no longer subject to comprehensive sanctions.  Many civilian items (EAR99) may generally be exported without a license, but most Commerce Control List (CCL) items require a license.  The advisory (pdf) contains additional detail on the current restrictions and opportunities.

Cambodia Arms Embargo to End

On October 27, 2025, the Department of State, Directorate of Defense Trade Controls (DDTC) announced that the United States has removed the arms embargo on Cambodia.  DDTC is now reviewing license applications for ITAR-controlled activities on a case-by-case basis for Cambodia.

An official revision to the ITAR § 126.1 list of proscribed destinations is expected, but has not yet been published.  Until then, Cambodia should continue to be treated as a prohibited destination for all relevant purposes, but licenses should be more likely to be approved.

EAR military end user restrictions on Cambodia also remain in effect.  BIS has not yet made a parallel announcement, likely due to the ongoing government shutdown.

This action follows presidential negotiations in Malaysia.  The White House has released a fact sheet on those developments.

50% Rule for Entity List, Shutdown Updates, and More!

BIS Issues 50% Rule for Entity List

On September 30, 2025, the Department of Commerce, Bureau of Industry and Security, published a rule (90 FR 47201) establishing a “50% Rule” for the Entity List and Military End User (MEU) List.

The new rule extends Entity List restrictions to other entities (e.g., subsidiaries or joint ventures) owned or controlled by entities identified on the Entity List.  It also applies to entities on the Military End User (MEU) List and Specially Designated Nationals (SDNs) under EAR § 744.8.

As we noted back in July, the change is intended to make it more difficult for sanctioned entities to route shipments through related, but unlisted entities.  The new rule imposes additional screening and due diligence responsibilities on exporters as restrictions also apply to unlisted parties worldwide.

The new rule was effective September 29, 2025, but with a Temporary General License (TGL) which essentially delays the rule until November 28, 2025.  Comments were also requested through October 29, 2025.

Our ECScreening service has been anticipating the BIS expansion of end user controls and will be offering an ownership search function to the ECScreening tool that will be deployed before the 60 day grace period expires.

Government Shutdown Update

The Department of State, Directorate of Defense Trade Controls (DDTC) initially switched the DECCS system for electronic licensing to read only mode.  DDTC has since resumed limited operations, including registration renewals and licensing.

DDTC previously stated that submissions may be reviewed if they are:

necessary to respond to emergencies involving the safety of human life or the protection of property, and those necessary for activities essential to national security, including the conduct of foreign affairs essential to national security

These submissions may be flagged for review by:

emailing DDTCCustomerService@state.gov to create a support case. The subject line of your request MUST read “Request for Emergency Submission,” and the message must include the relevant case number (if already pending with DDTC), applicant name and registration code, end-use/end-user (for licenses and agreements), and justification for needing an emergency license. DDTC will contact the requestor with guidance on how to proceed.

The Department of Commerce’s SNAP-R system for electronic licensing remains available, with a procedure available for applications “urgently required to protect U.S. national security and the safety of life and property (for example, exports in support of U.S. military operations and those of our allies and partners around the world).”

To request expedited processing of your application, please note in the “Additional Information” block that priority processing is requested during a lapse in appropriations and include a brief justification for priority processing. You should also send an email to EmergencyLicense@bis.doc.gov for both new license submissions, as well as licenses previously submitted, with a justification for priority processing, noting any nexus to urgent U.S. national security priorities or the safety of life and property.

Although rules (such as the extension of Cyprus policy and reversal of the BIS firearms licensing policy, detailed below) have taken effect since the shutdown began, the eCFR has not been updated.  As their website notes:

The National Archives and Records Administration is closed to normal operations due to a lack of appropriations. eCFR.gov will not be updated until we resume normal operations.

The Federal Register continues to publish notices with a note that publication will continue, but technical support will not be provided.

ITAR Updates – Cyprus

Cyprus remains in the unique situation of being found in the ITAR § 126.1 list of proscribed destinations, but with an annually suspended status.   Under 90 FR 43388  (September 9, 2025), the Republic of Cyprus’ status as a proscribed destination is suspended from October 1, 2025, through September 30, 2026 (Fiscal Year 2026).

EAR Updates – Firearms Policy

On September 30, 2025, BIS published a rule (90 FR 47170) rescinding most of the firearms policy which had been published in a 2024 Interim Final Rule.  The new rule maintains 2024 revisions to firearms ECCNs while otherwise returning to the previous license requirements and review policies.

Of note, the list of High-Risk Destinations for Firearms and Related Items in Supplement No. 3 to part 742 has been removed and reserved.  License applications seeking to export or reexport firearms and related items to non-government end users in these destinations had been subject to a presumption of denial.

For additional background, BIS also published a press release on this action.

State/DDTC Revises Multiple USML Categories; Commerce Relaxes Syria Controls

On August 27, 2025, the Department of State, Directorate of Defense Trade Controls (DDTC) issued a final rule (90 FR 41778) which revises multiple entries across the United States Munitions List (USML).  This follows and replaces the interim final rule published in January and will be effective September 15, 2025.

Similar, but not identical to the interim final rule, the rule revises a list of definitions in §121.0 and revises USML categories as follows:

Category III – Ammunition and Ordnance

Revises paragraph (d)(6) of USML Category III to exclude common lead-free birdshot ammunition.

Category IV – Launch Vehicles, Guided Missiles, Ballistic Missiles, Rockets, Torpedoes, Bombs, and Mines

Revises paragraph (c) to clearly control equipment specially designed for improvised explosive devices (IEDs).

Category V – Explosives and Energetic Materials, Propellants, Incendiary Agents, and Their Constituents

Makes minor revisions and corrections.

Category VII – Ground Vehicles

Revises Note 3 to USML Category VII to clarify the types of vehicles controlled to include systems described as robots:

Ground vehicles include any vehicle meeting the control parameters, regardless of: the surface upon which the vehicle is designed to operate (e.g., highway, off-road, amphibious, or rail); the manner of control of the vehicle (e.g., manual, remote, or autonomous); or the mode of locomotion of the vehicle (e.g., wheeled, tracked, or multi-pedal).

Category VIII – Aircraft and Related Articles

Clarifies catch-all controls for specially designed parts for specific U.S. and non-U.S. origin aircraft.  VIII(h)(1) parts will not be released from VIII(h)(1) through subsequent use in USML Category XXI or “foreign advanced military aircraft.”

It also revises the list of U.S.-origin aircraft identified in VIII(h)(1), updating designations and adding the F-47, MQ-25, and RQ-170.

Category IX – Military Training Equipment and Training

Removes and reserves paragraph (e)(2) as redundant.  IX(e)(2) technical data is already covered by IX(e)(1).

Category X – Personal Protective Equipment

Adds developmental exoskeletons to previously-reserved X(b) and revises the descriptions of body armor protective levels.

Category XI – Military Electronics

Revises paragraph (c)(10) to remove certain anti-jam antennas and exclude Controlled Reception Pattern Antennas (CRPAs) for Position, Navigation, and Timing (PNT).  Both revisions are intended to support civil global navigation system resiliency.

Category XII – Fire Control, Laser, Imaging, and Guidance Equipment

Updates paragraph (d)(2)(ii) GPS receiving equipment to change references from “Precise Positioning Service” to “Protected Positioning Service.”

Category XIII – Materials and Miscellaneous Articles

Updates office names, revises armor protective levels and descriptions, and adds specific fluids to new paragraph (j)(3).

Category XIV – Toxicological Agents, Including Chemical Agents, Biological Agents, and Associated Equipment

Adds nerve agents and a defoliant and clarifies CARC controls.

Category XIX – Gas Turbine Engines and Associated Equipment

Revises paragraphs (d) and (f)(1) to include additional Department of Defense-funded aircraft engines in development.  Revises paragraph (f)(2) to include related cooled structures for combustion chambers and liners.

Category XX – Submersible Vessels and Related Articles

Adds two new classes of uncrewed, untethered vessels equipped with anti-recovery features and larger systems with significant range or endurance to new paragraphs (a)(9) and (10).

Category XXI – Articles, Technical Data, and Defense Services Not Otherwise Enumerated

Moves text from paragraph (a) into a new note and adds considerations for designating an article USML Category XXI.

In response to concerns that the vessels added to XX(a)(10) are often suitable for natural resource exploration, infrastructure inspection, and oceanographic research, DDTC also added a new license exemption supporting their use to a new § 126.9(u):

This new exemption will authorize the temporary export, reexport, and temporary import of UUVs described in USML Category XX(a)(10) that meet the exemption’s size restriction of 8,000 pounds, as well as the provision of defense services in the maintenance, repair, operation, or use of those exempted UUVs, when the controlled activities involve one of the exemption’s described civil uses. It will also authorize a similar scope of brokering activities. However, this exemption will not be available if the activities entail the transfer of the vessel’s registration, control, or ownership to a foreign person.

Commerce Relaxes Export Controls on Syria

On September 2, 2025, the Department of Commerce, Bureau of Industry and Security, published a rule (90 FR 42315) relaxing export controls on Syria following the end of the Assad regime.  Among other changes, the new rule revised the Export Administration Regulations (EAR) § 742.9 and § 746.9 to relax license review policies and restrictions.  The rule also created a new License Exception Syria Peace and Prosperity (SPP) at § 740.5.  SPP authorizes the export or reexport of EAR99 items to Syria unless another end-use or end-user control applies.

In addition to license requirements for items listed on the Commerce Control List (CCL), Syria remains is an ITAR §126.1(d)(1) proscribed country subject to a policy of denial and a member of EAR Country Groups D:5 and E:1.

BIS also published a press release on this action.

BIS Considers 50% Rule for Entity List, DDTC Updates ITAR Country Lists and Policies, and OFAC Updates Syria Sanctions

BIS Expected to Issue 50% Rule for Entity List

The Department of Commerce, Bureau of Industry and Security (BIS) is expected to issue a rule extending Entity List restrictions to other entities (e.g., subsidiaries or joint ventures) owned or controlled by entities identified on the Entity List.

While details are limited prior to publication, the change is expected to cover previously unlisted entities that are owned or controlled (50% or more) by a person on the Entity List.  The change would be intended to make it more difficult for members of the Entity List to route shipments through related, but unlisted entities.  This would impose additional screening and due diligence responsibilities on exporters as restrictions would apply to unlisted parties worldwide.

The Entity List began in 1997 as a Weapons of Mass Destruction (WMD) anti-proliferation effort.  It now includes both individuals and entities involved in “activities that are contrary to the national security or foreign policy interests of the United States.” (EAR §744.11).  Listed entities are subject to license requirements for EAR-controlled items (including EAR99 or other items that would otherwise be shipped No License Required, or NLR), typically with a presumption of denial.

Revisions to ITAR Country Policies: Proscribed Countries, NATO, and Major Non-NATO Allies

On July 7, 2025, the Department of State, Directorate of Defense Trade Controls (DDTC) issued a final rule (90 FR 29720) updating the International Traffic in Arms Regulations (ITAR) country policies and lists.

The first changes were revisions to §126.1 proscribed country policies for the Central African Republic, the Democratic Republic of the Congo, Haiti, Libya, Somalia, South Sudan, and Sudan.  These revisions are based on recent United Nations Security Council resolutions.  No countries were added to or removed from the proscribed country list.

Second, Finland and Sweden were added to the list of NATO member countries and the name of the Czech Republic was updated to Czechia.

Third, the list of Major Non-NATO Allies (MNNA) was updated to add Colombia, Kenya, and Qatar while removing Afghanistan.

Fourth, redundant references to the Russian Federation were removed from §120.54.  When originally published, §120.54 (the ITAR Cloud Rule) excluded data stored or sent from 126.1 countries or Russia.  Russia’s subsequent addition to §126.1 made the reference redundant.

Finally, the text of §126.1(a) was revised for clarity and other minor changes were made.

OFAC Updates Syria Sanctions

Following an Executive Order, the Department of the Treasury, Office of Foreign Assets Control (OFAC) took multiple actions including a General License, Fact Sheet, and FAQs and changed the Syria-related sanctions program to the “Promoting Accountability for Assad and Regional Stabilization Sanctions (PAARSS) program.”

These actions also include revisions and numerous removals from the  Specially Designated Nationals and Blocked Persons List (SDN List) and Sectoral Sanctions Identifications List (SSI List).

For more information, refer to OFAC’s June 30 press release.

While these actions reduce the scale of OFAC’s comprehensive sanctions on Syria, the country remains subject to significant export restrictions under both the ITAR and Export Administration Regulations (EAR).  It is an ITAR §126.1(d)(1) proscribed country subject to a policy of denial and a member of EAR Country Groups D:5 and E:1 subject to comprehensive export restrictions under EAR §746.9.

BIS to Rescind AI Diffusion Rule, Issues Guidance

On May 13, 2025, the Department of Commerce, Bureau of Industry and Security (BIS) announced that it will rescind the January 15, 2025 Artificial Intelligence (AI) Diffusion Rule and issued guidance on export controls for AI chips.

Formal rescission of the AI Diffusion Rule as well as a replacement rule are expected in future Federal Register Notices.

The May 13, 2025 notice informs industry that compliance requirements that were scheduled to take effect on May 15 will not be enforced.

In addition, BIS issued guidance documents on the following related topics:

  • The risks of using PRC advanced computing ICs, including specific Huawei Ascend chips.
  • The potential consequences of allowing U.S. AI chips to be used for training and inference of Chinese AI models.
  • How U.S. companies can protect supply chains against diversion tactics.

The BIS press release includes additional detail and links to the guidance documents, which in turn provide additional detail including risks, red flags, and best practices.

Export Regulatory and Policy Update Roundup: February 2025

Since our last roundup was followed by a change in administrations, we have seen a flurry of activity, a regulatory freeze, a few reversals and restorations, and some business as usual.  Read on for the notable export-related changes and proposals.

Department of State: DDTC / ITAR

USML Revisions Proposed, Effective September

The Department of State, Directorate of Defense Trade Controls (DDTC) proposed revisions of fourteen USML categories, ranging from minor corrections to developmental exoskeletons and foreign advanced military aircraft.

  • 90 FR 5594, published January 17, 2025 & effective September 15, 2025
  • Comments accepted through March 18, 2025
  • See our previous post for all the details.

Department of Commerce: BIS / EAR & CCL

Implementation of Certain Australia Group Decisions

The Department of Commerce, Bureau of Industry and Security (BIS) amended the Export Administration Regulations (EAR) to implement changes agreed to by Australia Group (AG):

  • New controls on automated peptide synthesizers, dipropylamine, and neosaxitoxin
  • Revised controls on botulinum toxins, toxic gas monitors, and centrifugal separators
  • 89 FR 104408, published & effective December 23, 2024

Unmanned Aircraft Systems

BIS published an advance notice of proposed rulemaking (ANPRM) related to information and communications technology and services (ICTS) transactions integral to unmanned aircraft systems (UAS).

  • 90 FR 271, published January 3, 2025
  • Comments on 50 specific issues accepted through March 4, 2025
  • Press release

Connected Vehicles

BIS published a final rule related to ICTS transactions integral to connected vehicles.

  • Prohibits transactions involving Chinese or Russian origin Vehicle Connectivity System (VCS) hardware and software
  • 90 FR 5360, published January 16, 2025 & effective March 17, 2025
  • Press Release

Biotechnology Laboratory Equipment

BIS published an Interim Final Rule increasing controls on advanced biotechnology tools:

  • High-parameter flow cytometers and certain mass spectrometry equipment moved from ECCN 3A999 into new ECCN 3A069, with development and production technology controlled under new ECCN 3E069.

Due Diligence Measures for Advanced Computing Integrated Circuits

BIS published an Interim Final Rule providing additional due diligence procedures regarding advanced computing integrated circuits

Framework for Artificial Intelligence Diffusion

BIS published an Interim Final Rule relating to Artificial Intelligence (AI) hardware and models.

  • Revised controls on advanced computing integrated circuits (ICs)
  • New ECCN 4E091 for artificial intelligence (AI) model weights for certain advanced closed-weight dual-use AI models.
  • Updates Data Center Validated End User authorization
  • Expands and adds new related license exceptions
  • 90 FR 4544 published January 15, 2025, effective January 13, 2025
  • Comments accepted through May 15,2 025
  • Press Release

Export Enforcement 2024 Year in Review

BIS published its annual Year in Review, highlighting enforcement activities, including:

  • Indictments, convictions, and civil penalties
  • Release of the antiboycott Requester List and additions to the Entity List
  • Updates to guidelines, guidance, and best practices
  • Webinars and outreach
  • Press Release

Sanctions Programs

 ICC Sanctions Return

 Following an Executive Order, the Department of the Treasury, Office of Foreign Assets Control (OFAC) implemented sanctions on the International Criminal Court on February 6, 2025.  Similar sanctions had been in place from 2020-2021.

Cuba Restricted List Rescinded and Reinstated

The State Department’s Cuba Restricted List was rescinded on January 16, but republished and updated on February 6.  Cuba’s status as a State Sponsor of Terrorism was also briefly rescinded and reinstated.

 Civil Monetary Penalties

The Departments of State, Commerce, and Treasury each published their annual inflation adjustments for export-related civil monetary penalties.

 Executive Orders and Memos

America First Trade Policy

This January 20, 2025 memo included, among other directives:

  • A review of the United States export control system by the Secretary of State and the Secretary of Commerce including making recommendations
    • how to maintain, obtain, and enhance our Nation’s technological edge;
    • how to identify and eliminate loopholes in existing export controls; and
    • regarding export control enforcement policies and practices, and enforcement mechanisms to incentivize compliance by foreign countries.
  • The Secretary of Commerce was also directed to review Office of Information and Communication Technology and Services (ICTS) rulemaking on connected vehicles and consider whether ICTS controls should be expanded to additional connected products.

Unleashing Prosperity Through Deregulation

Executive Order 14192, dated January 31, 2025 (90 FR 9065) establishes a regulatory cap, considering both numbers and cost of regulations.  The impact on export compliance may be limited, however, as “regulations issued with respect to a military, national security, homeland security, foreign affairs, or immigration-related function of the United States” are excluded from the regulatory cap.

Multiple USML Categories Revised Effective September 15, 2025

On January 17, 2025, the Department of State, Directorate of Defense Trade Controls (DDTC) issued an interim final rule (90 FR 5594) which revises fourteen United States Munitions List (USML) categories.  Unless another rule is issued in response to comments, the revisions will be effective September 15, 2025Previously proposed changes to USML Categories IV and XV are not addressed in this rule.

The rule revises a list of definitions in §121.0 and revises USML categories as follows:

Category II – Guns and Armament
Corrects a typographical error in Note 2 to paragraph (a)(5)

Category IV – Launch Vehicles, Guided Missiles, Ballistic Missiles, Rockets, Torpedoes, Bombs, and Mines
Revises paragraph (c) to clearly control equipment specially designed for improvised explosive devices (IEDs)

Category V – Explosives and Energetic Materials, Propellants, Incendiary Agents, and Their Constituents
Makes minor revisions and corrections

Category VII – Ground Vehicles
Revises Note 3 to USML Category VII to clarify the types of vehicles controlled to include systems described as robots:

Ground vehicles include any vehicle meeting the control parameters, regardless of: the surface upon which the vehicle is designed to operate (e.g., highway, off-road, amphibious, or rail); the manner of control of the vehicle (e.g., manual, remote, or autonomous); or the mode of locomotion of the vehicle (e.g., wheeled, tracked, or multi-pedal).

Category VIII – Aircraft and Related Articles
Clarifies catch-all controls for specially designed parts for specific U.S. and non-U.S. origin aircraft.  VIII(h)(1) parts will not be released from VIII(h)(1) through subsequent use in USML Category XXI or “foreign advanced military aircraft.”

Foreign advanced military aircraft, as newly defined in § 121.0, include non-U.S. origin aircraft and foreign derivatives of U.S. origin aircraft, either in development or entering production after 2023, with one or more of the following advanced military capabilities: Active Electronically Scanned Array (AESA) fire control radar, integrated signature management, electronic warfare systems, or the ability to engage targets beyond visual range (BVR).

The new rule supersedes and terminates the temporary modification to USML Category VIII last extended in November, which was focused on parts used in the South Korean KF-21 aircraft.  It also further revises the list of U.S.-origin aircraft identified in VIII(h)(1), updating designations and adding the MQ-25 and RQ-170.

 Category IX – Military Training Equipment and Training
Removes and reserves paragraph (e)(2) as redundant.  IX(e)(2) technical data is already covered by IX(e)(1).

Category X – Personal Protective Equipment
Adds developmental exoskeletons to previously-reserved X(b) and revises the descriptions of body armor protective levels in X(a)(1).

Category XI – Military Electronics
Revises paragraph (c)(10) to remove certain anti-jam antennas and exclude Controlled Reception Pattern Antennas (CRPAs) for Position, Navigation, and Timing (PNT).  Both revisions are intended to support civil global navigation system resiliency.

Category XII – Fire Control, Laser, Imaging, and Guidance Equipment
Updates paragraph (d)(2)(ii) GPS receiving equipment to change references from “Precise Positioning Service” to “Protected Positioning Service.”

Category XIII – Materials and Miscellaneous Articles
Updates office names, revises armor protective levels and descriptions, and adds specific fluids to new paragraph (j)(3).

Category XIV – Toxicological Agents, Including Chemical Agents, Biological Agents, and Associated Equipment
Adds nerve agents and a defoliant and clarifies CARC controls.

Category XIX – Gas Turbine Engines and Associated Equipment
Revises paragraphs (d) and (f)(1) to include additional Department of Defense-funded aircraft engines in development.  Revises paragraph (f)(2) to include related cooled structures for combustion chambers and liners.

Category XX – Submersible Vessels and Related Articles
Adds two new classes of uncrewed, untethered vessels and vehicles equipped with anti-recovery features and larger systems with significant range or endurance to new paragraphs (a)(9) and (10).

Category XXI – Articles, Technical Data, and Defense Services Not Otherwise Enumerated
Moves text from paragraph (a) into a new note and adds considerations for designating an article USML Category XXI.

Comments will be accepted through March 18, 2025.  Comments are requested especially for the following questions:

  1. How much would practitioners benefit from the Department defining the term “Controlled Reception Pattern Antennas (CRPAs)” as used in USML Category XI(c)(10)? Are there criteria, other than those described in the preamble of this rule, that may help better distinguish between CRPAs described in paragraph (c)(10)(v) and antennas described in paragraph (c)(10)(i)?
  1. The addition of paragraph (h)(1)(iii) to USML Category VIII ensures that parts, components, accessories, and attachments specially designed for aircraft listed in paragraphs (h)(1)(i) and (ii) are not released from paragraph (h)(1) due to their use in foreign advanced military aircraft described in paragraphs (a)(1) and (2) of USML Category VIII.
    1. The Department requests comment on its consideration of adding to paragraph (h)(1) a new paragraph (h)(1)(iv), to retain parts used in paragraphs (h)(1)(i) or (ii) aircraft even when they are used in “aircraft described in paragraph (a)(3) of USML Category VIII,” as the Department assesses that training aircraft described in paragraph (a)(3) often serve as proving grounds for future paragraph (a)(1) or (2) aircraft.
    2. The Department requests comment on its consideration of expanding paragraph (h)(1) to add parts, components, accessories, and attachments specially designed for the foreign advanced military aircraft listed in paragraph (h)(1)(iii), even if they are not utilized in an aircraft listed in paragraph (h)(1)(i) or (ii), commensurate with the Department’s regulation of similar items for the advanced U.S. aircraft described in paragraphs (h)(1)(i) and (ii). For example, what effect would describing these foreign articles in paragraph (h)(1) have on existing international defense industrial cooperation and supply chains?
  1. With this rule, the Department changes paragraph (d) of USML Category XIX to read “The following engines:” and then describes specific aircraft engines in paragraphs (d)(1) and (2). The Department requests comment on its consideration of changing that language to “The following engine series:” in order to more completely describe engines that provide a critical military or intelligence advantage.
  1. Paragraphs (d)(1) and (2) of USML Category XIX describe specific aircraft engines. The Department requests comment on its consideration of expanding that scope to include “military variants” of those engines, similar to its regulation of certain gas turbine engine parts in paragraph (f)(1)(i) of USML Category XIX for military variants of the listed engines.
  1. Are there commodities, services, or technical data closely related to these revisions that warrant ITAR control, but are currently either not described on the USML, or not described with sufficient clarity? If so, please provide examples and a concise explanation.
  1. Are there specific commodities, services, or technical data described on the USML following these revisions that are, or have previously been, in normal commercial use, that were previously transitioned to another agency’s jurisdiction, or that were previously determined not to be subject to the ITAR via a Commodity Jurisdiction determination? If so, please include supporting documentation.
  1. Are there specific commodities, services, or technical data described on the USML following these revisions for which civil use is proposed, intended, or anticipated in the next five years? Please include supporting documentation and a point of contact familiar with the details.
  1. Are there specific functions, performance levels, or characteristics related to these revisions that could better:
    1. Distinguish between the commodities that do, and do not, warrant ITAR control;
    2. Delineate the criteria for control, in lieu of using the term `specially designed’; or
    3. Align with the constructions or language used in other USML entries?
  1. Can any of these revisions be more concisely stated?

The Federal Register Notice contains additional details on how to submit comments.

The rule also notes that some items removed from a USML paragraph may still be described in other USML paragraphs or may become subject to the Department of Commerce’s Export Administration Regulations (EAR).  For items moving to EAR control, licenses may be submitted to the Department of Commerce, but will be held without action (HWA) until the effective date of the rule (currently September 15, 2025).  Existing DDTC licenses and other approvals may continue to be used.

Watch this space for more upcoming summaries of the winter flurry of rulemaking.

Export Regulatory and Policy Update Roundup: December 2024

As the year winds down, regulatory activity continues.  Most are rules that renew, formalize, or build on earlier actions, plus a small expansion of controls on items destined for Pakistan related to non-proliferation concerns.

Department of State: DDTC / ITAR

Temporary Modification of USML Category VIII(h)(1)

On November 26, 2024, the Department of State, Directorate of Defense Trade Controls (DDTC) issued a final rule (89 FR 93170) which extends the temporary modification of United States Munitions List (USML) Category VIII (aircraft).

VIII(h)(1) currently controls “Parts, components, accessories, and attachments specially designed for the following U.S.-origin aircraft: The B-1B, B-2, B-21, F-15SE, F/A-18 E/F, EA-18G, F-22, F-35, and future variants thereof; or the F-117 or U.S. Government technology demonstrators.”

The temporary modification allows Category VIII(h)(1) to continue to control specially designed parts, components, accessories, and attachments for listed aircraft if also used in the KF-21 aircraft. Without this note, use of a part for one of the listed aircraft on the KF-21 would have released it form ITAR control.

Registration Fee Increase

On December 10, 2024, DDTC issued a final rule (89 FR 99081) which, effective January 9, 2025 will increase registration fees for manufacturers, exporters, and brokers.

Originally proposed in April, the new fee structure will be as follows:

  • Tier 1: $3000
    • New registrants and registrants with no authorization approvals
    • Increase from $2250
  • Tier 2: $4000
    • Registrants with five or fewer approvals
    • Increase from $2750
    • Previous threshold was ten approvals
  • Tier 3: $4000 + $1100 for each approval after the first five
    • Registrants with more than five approvals
    • Increase from $2750 + $250 for each approval after the first ten

Brokering registration fees remain tied to Tier 1, regardless of the number of brokering authorizations submitted or approved.  No additional fee is required for brokers already registered as manufacturers or exporters.  Limited discounts are available.

Department of Commerce: BIS / EAR & CCL

Commerce Increases Controls on Pakistan

On November 26, 2024, the Department of Commerce, Bureau of Industry and Security (BIS) published a rule (89 FR 93164) adding export controls for certain items destined for Pakistan.

Effective immediately, the new rule adds a license requirement for items listed on the Commerce Control List under Export Control Classification Numbers (ECCNs) 1B999, 2A992, 2B999,1 3A992, 3A999, and 6A996, including:

  • Particle accelerators
  • Certain stainless or alloy pipes and valves
  • Certain pumps and welders
  • Oscilloscopes
  • Chromatographs and spectrometers
  • Magnetometers

The primary concern is whether items may be used in nuclear or missile activities, or may be diverted to any of the currently 162 Entity List members located in Pakistan.  Based on these concerns, the availability of license exceptions is also limited.

BIS also issued a press release on the new rule, which also notes the existence of specific Pakistan Due Diligence Guidance on the BIS website.

Advance Computing Foreign Direct Product Rule

On December 5, 2024, BIS issued an interim final rule (89 FR 96790) expanding the Foreign Direct Product (FDP) rules for advanced computing and semiconductor manufacturing items.  Effective December 2, 2024, comments will be accepted through January 31, 2025.

ICTS Supply Chain Rule

On December 6, 2024, BIS issued a final rule (89 FR 96872) on Securing the Information and Communications Technology and Services (ICTS) Supply Chain.  This follows an interim final rule published in 2021 and will be effective February 4, 2025.

The original rule was intended to provide a process to review information and communications technology and services (ICTS) supply chain transactions, “similar to the process by which entities may inform the Committee on Foreign Investment in the United States (CFIUS) of investments in U.S. businesses” and requested comments.  The new rule “responds to public comments on the interim final rule and finalizes the practices guiding review of ICTS Transactions, amending and, in some cases, removing terms or concepts which experience has shown to be unnecessary, inefficient, or ineffective.”