On July 29, 2024, the U.S. State Department released a proposed rule to revise the definition of "defense services" and the scope of related controls in the International Traffic in Arms Regulations (ITAR). The proposed rule comes as a result of the Department's recent review of the term defense services in which it identified certain military, cyber, and intelligence services that can, currently, be provided to foreign persons without a license, and areas that require clarification.
Key proposed changes include:
- Amending the list of regulated activities currently found in 120.32(a)(1) to include two new references, "disabling" and "degradation." The Department proposes these terms to make explicit that the act of reducing a military capability through the disabling or degradation of defense articles via any method remains controlled.
- Proposing two new United States Munitions List (USML) Categories IX(s)(2) and (3), which describe defense services relating to intelligence and military assistance that do not necessarily involve defense articles.
The Department also determined that rather than relying solely on the definition of defense service, it would be more effective to direct users to a new paragraph in the USML, § 120.32, for export clarification purposes. This approach is consistent with the current approach to defense article classification. Comments on the proposed rule will be accepted through September 27, 2024.
If you have questions regarding this development, or are interested in learning more about how the proposed rule might impact your business, reach out to Fluet's International Trade team.
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.