{"id":474,"date":"2022-05-05T15:42:10","date_gmt":"2022-05-05T19:42:10","guid":{"rendered":"http:\/\/exportcompliancesolutions.com\/blog\/?p=474"},"modified":"2022-05-05T16:17:35","modified_gmt":"2022-05-05T20:17:35","slug":"itar-definitions-reorganized-new-agreement-guidelines-released-even-commerce-russia-sanctions","status":"publish","type":"post","link":"https:\/\/exportcompliancesolutions.com\/blog\/2022\/05\/05\/itar-definitions-reorganized-new-agreement-guidelines-released-even-commerce-russia-sanctions\/","title":{"rendered":"ITAR Definitions to be Reorganized, New Agreement Guidelines Released, Even More Commerce Russia Sanctions!"},"content":{"rendered":"<p><strong>ITAR Reorganization Begins With Definitions in Part 120<\/strong><\/p>\n<p>On March 23, 2022, the Department of State, Directorate of Defense Trade Controls (DDTC) issued an interim final rule (<a href=\"https:\/\/www.federalregister.gov\/documents\/2022\/03\/23\/2022-05629\/international-traffic-in-arms-regulations-consolidation-and-restructuring-of-purposes-and\">87 FR 16396<\/a>) that will consolidate International Traffic in Arms Regulations (ITAR) definitions into ITAR Part 120.\u00a0 The long-awaited rule is effective September 6, 2022 and begins what DDTC describes as \u201cthe first of a multi-year, multi-rule project to better organize the ITAR.\u201d<\/p>\n<p>The rule primarily consolidates and organize definitions currently distributed throughout the ITAR into Part 120, eliminating redundant text in the process.\u00a0 While DDTC has stated that the rule does not make substantive revisions or impose new requirements, there are some changes that reflect longstanding policy, for example (all citations to the revised ITAR):<\/p>\n<ul>\n<li>\u00a7 120.11(c) \u2013 <em>Integration of controlled items<\/em>. Defense articles described on the USML are controlled and remain subject to this subchapter following incorporation or integration into any item not described on the USML, unless specifically provided otherwise in this subchapter.<\/li>\n<\/ul>\n<ul>\n<li>\u00a7 120.17 \u2013 End-use monitoring<\/li>\n<\/ul>\n<ul>\n<li>Pursuant to section 40A of the Arms Export Control Act (22 U.S.C. 2785) and related delegations of authority, the Department of State is required to establish a monitoring program in order to improve accountability with respect to defense articles and defense services, sold, leased, or exported under Department of State licenses or other approvals under section 38 of the Arms Export Control Act and this subchapter.<\/li>\n<li>All exports of defense articles, technical data, services, and brokering activities made pursuant to this subchapter are subject to end-use monitoring by the Department of State through the Blue Lantern program.<\/li>\n<\/ul>\n<ul>\n<li>\u00a7 120.23(c) \u2013Wassenaar Arrangement background and country list<\/li>\n<\/ul>\n<ul>\n<li>\u00a7 120.57 \u2013 Includes exemptions included within definition of authorization<\/li>\n<\/ul>\n<p>To assist with the transition, DDTC also published the following documents on their website:<\/p>\n<ul>\n<li><a href=\"https:\/\/www.pmddtc.state.gov\/sys_attachment.do?sysparm_referring_url=tear_off&amp;view=true&amp;sys_id=7f3809af1bd6c910d1f1ea02f54bcbc8\">Summary of Changes to International Traffic in Arms Regulations (pdf)<\/a><\/li>\n<li><a href=\"https:\/\/www.pmddtc.state.gov\/sys_attachment.do?sysparm_referring_url=tear_off&amp;view=true&amp;sys_id=7f3809af1bd6c910d1f1ea02f54bcbc6\">Table of Moves, Edits, Removals, and Additions (pdf)<\/a><\/li>\n<li><a href=\"https:\/\/www.pmddtc.state.gov\/sys_attachment.do?sysparm_referring_url=tear_off&amp;view=true&amp;sys_id=f33809af1bd6c910d1f1ea02f54bcbc4\">ITAR Redline (Word)<\/a><\/li>\n<\/ul>\n<p>For additional information and how to submit comments, please refer to the <a href=\"https:\/\/www.federalregister.gov\/documents\/2022\/03\/23\/2022-05629\/international-traffic-in-arms-regulations-consolidation-and-restructuring-of-purposes-and\">Federal Register Notice<\/a>.\u00a0 Comments will be accepted through May 9, 2022.\u00a0 The rule is scheduled to take effect September 6, 2022, but may be revised before then.<\/p>\n<p><strong>New Agreement Guidelines<\/strong><\/p>\n<p>On February 14, 2022, DDTC released Revision 5.0 of the \u201cGuidelines for Preparing Agreements.\u201d\u00a0 The revised guidelines are 105 pages in length, down from 225 in 2016\u2019s Revision 4.4b.\u00a0 The new guidelines include some substantive changes, while reducing redundancy and moving some items to separate guidance documents.\u00a0 A summary of noteworthy changes is included on page 1, including:<\/p>\n<ul>\n<li>Under certain circumstances, cover letters are no longer required with executed copies of TAAs and WDAs (see Section 5.2.1)<\/li>\n<li>Expedited Execution is expanded to include the removal of sublicensees (see Section 13.1)<\/li>\n<li>The U.S. Sublicensing statement is no longer required (see Section 9.1)<\/li>\n<li>Optional language when utilizing \u00a7 126.18 is now provided (see Section 10.3.1)<\/li>\n<li>Clarification that the description of end-use includes the identification of platforms (throughout Part 1)<\/li>\n<li>Clarification on identifying and documenting foreign end users (see Section 12)<\/li>\n<li>Clarification on the \u201cdeployment clause\u201d (see Section 17)<\/li>\n<li>Update to documentation of space launch territories on the DSP-5 vehicle (see Section 18)<\/li>\n<li>Clarify that the 124.4(b) letter must provide an estimate of the quantity of the articles authorized to be produced. Additionally, MLAs involving the licensed manufacture of defense article abroad should identify the estimated quantity as part of the scope of the agreement (see Section 1.1.1, 2.1.1, and 5.2)<\/li>\n<\/ul>\n<p>The summary also notes that:<\/p>\n<p>Applicants are not required to submit an amendment for the sole purpose of conforming an agreement to any language or format change presented in these Guidelines. Any changes presented in the Transmittal Letter or Agreement format are intended as an aid to the applicant. These changes are not mandatory. Applications that contain additional information or a different format will still be processed.<\/p>\n<p>The new guidelines and other guidance can be found in the <a href=\"https:\/\/www.pmddtc.state.gov\/ddtc_public?id=ddtc_kb_article_page&amp;sys_id=74705f5edbb4130044f9ff621f961954\">agreements section of the DDTC website<\/a>.<\/p>\n<p><strong>Commerce Expands Russia\/Belarus Sanctions<\/strong><\/p>\n<p>On April 14, 2022, the Department of Commerce, Bureau of Industry and Security (BIS) published a rule (<a href=\"https:\/\/www.federalregister.gov\/documents\/2022\/04\/14\/2022-07937\/expansion-of-sanctions-against-russia-and-belarus-under-the-export-administration-regulations-ear\">87 FR 22130<\/a>) which expands the license requirements for Russia and Belarus to include all items on the Commerce Control List (CCL).\u00a0 Effective April 8, 2022, the rule also removes license exception eligibility for Belarusian aircraft.<\/p>\n<p>Our previous <a href=\"https:\/\/exportcompliancesolutions.com\/blog\/2022\/03\/31\/russia-sanctions-roundup\/\">Russia sanctions roundup<\/a> had noted that the Export Administration Regulations (EAR) \u00a7746.8 imposed a license requirement on Categories 3-9, with a presumption of denial.\u00a0 This now applies to Categories 0-9, or all items identified with an Export Control Classification Number (ECCN) on the CCL.<\/p>\n<p>For additional information, please refer to the <a href=\"https:\/\/www.federalregister.gov\/documents\/2022\/04\/14\/2022-07937\/expansion-of-sanctions-against-russia-and-belarus-under-the-export-administration-regulations-ear\">Federal Register Notice<\/a>.\u00a0 BIS also maintains a <a href=\"https:\/\/www.bis.doc.gov\/index.php\/policy-guidance\/country-guidance\/russia-belarus\">policy guidance page on Russia-Belarus<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>ITAR Reorganization Begins With Definitions in Part 120 On March 23, 2022, the Department of State, Directorate of Defense Trade Controls (DDTC) issued an interim final rule (87 FR 16396) that will consolidate International Traffic in Arms Regulations (ITAR) definitions into ITAR Part 120.\u00a0 The long-awaited rule is effective September 6, 2022 and begins what [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","footnotes":""},"categories":[7,10,9],"tags":[],"class_list":["post-474","post","type-post","status-publish","format-standard","hentry","category-all","category-export-control-reform","category-licensing"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>ITAR Definitions to be Reorganized, New Agreement Guidelines Released, Even More Commerce Russia Sanctions! 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