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ITAR Reorganization Rule Expected To Enter Into Force September 6 – International Trade & Investment



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The U.S. State Department’s much anticipated interim final
rule reorganizing the International Traffic in Arms Regulations
(ITAR) is expected to go into effect September 6, 2022.

The interim final rule, originally published by
the U.S. State Department’s Directorate of Defense Trade
Controls (DDTC) on March 23, 2022, will reorganize and consolidate
definitions in the ITAR. Part of a broader agency effort to
reorganize the ITAR, this new structure will improve the
organization of the regulations by concentrating authorities,
policies, and definitions into distinct and logical subparts,
removing duplicative text, and standardizing section structure and
style. The DDTC has stated that the rule does not make substantive
revisions to the regulations or impose new requirements, but
rather, improves clarity.

Prior to this rulemaking, definitions were generally spread
throughout the subchapter. Once the rule goes into effect, part 120
will be divided into three subparts: Subpart A – General
Information; Subpart B – General Policies and Processes; and
Subpart C – Definitions. This new organization is intended to
provide readers with a roadmap for the regulations.

  • Subpart A – General Information: consolidates and explains the
    legislative authority and purpose of the regulations to assist in
    understanding their importance and source.

  • Subpart B – General Policies and Processes: outlines the
    general processes and policies of the ITAR.

  • Subpart C – Definitions: provides a consolidated list of
    defined terms that are applicable throughout the ITAR. DDTC,
    however, notes that the definitions will not be in alphabetical
    order.

Part and section-specific information and definitions will
continue to be located in the applicable part or section of the
regulations.

Other than the changes described above, a list of changes
believed to be of interest to the regulated community can be found
here. This is the first of several rules in
DDTC’s ITAR reorganization project, so DDTC will gradually
implement these changes.

As of August 17, 2022, the State Department circulated and
completed interagency review of a final rule that will reorganize
and consolidate definitions in the ITAR. While the final rule has
not yet been made public, Buchanan’s International Trade and National Security team
is closely monitoring the State Department’s reorganization of the ITAR and will keep the
regulated community informed of any further State Department
action.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.

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