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ITAR, EAR, and OFAC Recent Developments
International Traffic in Arms Regulations (ITAR) Recent Developments
Title: Prohibited Exports, Imports, and Sales To or From Certain Countries-Cyprus
- ITAR or EAR? International Traffic in Arms Regulations (ITAR)
- State of the Rule:
- Type of Rule: Final rule
- Effective Date: 10/1/2025
- Open for Comment: N/A
Summary:
From October 1, 2025, through September 30, 2026, the policy of denial and the status of Cyprus as a proscribed destination is suspended.
Title: U.S. Munitions List Targeted Revisions
- ITAR or EAR? International Traffic in Arms Regulations (ITAR)
- State of the Rule:
- Type of rule: Final rule; interim final rule adopted with changes
- Effective Date: 9/15/2025
- Open for Comment: N/A
Summary:
On August 27, 2025, DDTC published a rule that amends the interim final rule published on January 27, 2025. Effective September 15, 2025.
- Definition Updates (22 CFR 121.0)
- Clarifies that AESA fire control radar is an “advanced military capability.”
- Clarifies that “integrated” applies to both electronic warfare (EW) systems and signature management systems.
- Category III (Ammunition)
- Excludes common lead-free birdshot ammunition (including tungsten or steel) from ITAR.
- BIS classifies this ammunition as EAR99.
- Category IV (Missiles, Rockets)
- Confirms that improvised explosive devices (IEDs) are not controlled on the USML just because they are IEDs.
- Defense articles that are incorporated into IEDs are still considered defense articles and remain controlled under ITAR § 120.11(c)
- Category V (Explosives and Propellants)
- Adds a second Chemical Abstract Service (CAS) Registry Number for pentaborane to align with the Wassenaar Arrangement Munitions List.
- Adds a second Chemical Abstract Service (CAS) Registry Number for pentaborane to align with the Wassenaar Arrangement Munitions List.
- Category VIII (Aircraft)
- Adds the F-47 (Next Generation Air Dominance fighter) to Category VIII so its parts remain ITAR-controlled once production begins.
- Adds the F-47 (Next Generation Air Dominance fighter) to Category VIII so its parts remain ITAR-controlled once production begins.
- Category XI (Military Electronics)
- Narrows the definition of counter-jamming equipment to exclude Global Navigation Satellite System (GNSS) anti-jam and GNSS anti-spoofing systems to a specific entry.
- Narrows the definition of counter-jamming equipment to exclude Global Navigation Satellite System (GNSS) anti-jam and GNSS anti-spoofing systems to a specific entry.
- Category XX (Submersibles)
- Adds two new paragraphs that cover additional types of uncrewed, untethered vessels and vehicles that offer significant military advantages.
- Systems that are tethered are specifically excluded from both of these new controls.
- Additionally, DDTC introduced a new license exemption for certain activities involving unmanned underwater vehicles (UUVs).
- It applies to the export, reexport, and temporary import of UUVs listed under USML Category XX(a)(10).
- Vessels must weigh under 8,000 pounds.
- Activities must be limited to scientific research, natural resource exploration, civil or commercial infrastructure (maintenance, installation or repair), or search-and-rescue purposes.
- Ownership, registration, or control must not transfer to a foreign entity.
Title: Foreign Trade Regulations (FTR): Clarification of Filing Requirements Regarding In-Transit Shipments and Other FTR Provisions
- ITAR or EAR? ITAR and EAR
- State of the Rule:
- Type of Rule: Final rule; correction.
- Effective Date: 09/15/2025
- Open for Comment: N/A
Summary:
On August 14, the Census Bureau released a final rule updating the Foreign Trade Regulations (FTR), effective September 15, 2025. The change broadens who can be considered the U.S. Principal Party in Interest (USPPI) for in-transit shipments that are later exported abroad.
- Expanded USPPI Definition – Customs brokers and operators of warehouses, bonded warehouses, and FTZs can now be designated as the USPPI when goods are later exported.
- Consent Requirement – Customs brokers filing EEI using import data must have explicit consent from the importer of record.
- USPPI Filing Responsibility – If a warehouse, storage facility, FTZ, or bonded warehouse operator is designated as the USPPI, they are fully responsible for EEI filings using all available export data.
- New Data Requirements – Entry numbers must now be included in EEI for foreign goods stored in bonded warehouses or FTZs prior to export.
- Routed Transactions Appendix – A new appendix details which data elements must be provided by the USPPI vs. the authorized agent.
- Other Clarifications – Updates to definitions, confidentiality, penalties, filing exclusions, and voluntary self-disclosures for greater clarity and compliance consistency.
- In-Transit Exemption – EEI filing is not required for goods transiting the U.S., Puerto Rico, or the U.S. Virgin Islands, as long as they do not enter for consumption or warehousing.
- 30-Day Rule – If a customs broker is the importer of record and the goods are exported within 30 days without alteration, the broker must be listed as the USPPI. After 30 days, the broker may remain the USPPI or transfer responsibility to the facility holding the goods.
On August 27, 2025 the Census Bureau published a clarification rule to Part 30 which included changes to Appending B to Part 30-AES Filing Citation, Exemption and Exclusion Legends. Effective September 15, 2025.
Title: Updates to Certain Proscribed Countries and Other Changes
- ITAR or EAR? International Traffic in Arms Regulations (ITAR)
- State of the Rule:
- Type of Rule: Final rule.
- Effective Date: 7/7/2025
- Open for Comment: N/A
Summary:
Final rule from July 7, 2025 amends the ITAR. Effective date July 7, 2025.
- Updates to Proscribed Countries
- The U.S. Department of State revised ITAR Section 126.1 in response to recent United Nations Security Council resolutions involving several countries (DRC, Haiti, Libya, Somalia, Central African Republic, South Sudan, Sudan).
- The U.S. Department of State revised ITAR Section 126.1 in response to recent United Nations Security Council resolutions involving several countries (DRC, Haiti, Libya, Somalia, Central African Republic, South Sudan, Sudan).
- Corrections & Clarifications in Other ITAR Sections
- NATO members (ITAR §120.23): Now include Finland and Sweden; “Czech Republic” updated to Czechia.
- Major non-NATO allies: Added Colombia, Kenya, and Qatar; removed Afghanistan.
- Wassenaar Arrangement member list: Updated “Czech Republic” to “Czechia.”
- Style and numbering fixes
- Spell-out errors and duplication removed (e.g., duplicate mention of “Russian Federation” from ITAR § 120.54(a)(5)(iv) and (v).
- Revised formatting of ITAR §126.1(a) and the table in §126.1(d)(2) for improved clarity.
Title: Department of State 2025 Civil Monetary Penalties Inflationary Adjustment
- ITAR or EAR? International Traffic in Arms Regulations (ITAR)
- State of the Rule:
- Type of Rule: Final rule.
- Effective Date: 1/10/2025
- Open for Comment: N/A
Summary:
Maximum civil penalty for most ITAR violations increased to $1,127,078 or 2x transaction value
Title: ITAR Registration Fees
- ITAR or EAR? International Traffic in Arms Regulations (ITAR)
- State of the Rule:
- Type of Rule: Final rule.
- Effective Date: 1/9/2025
- Open for Comment: N/A
Summary:
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Title: U.S. Munitions List Categories IV and XV
- ITAR or EAR? International Traffic in Arms Regulations (ITAR)
- State of the Rule:
- Type of Rule: Proposed rule.
- Effective Date: N/A
- Open for Comment: on or before 11/22/2024
Summary:
On October 23, 2024, DDTC proposed revisions to USML Categories IV and XV
- Category IV highlights
- Move all launch systems into Category IV, rather than with platforms
- Expand/reduce the scope of a few Category IV(h) entries
- Category XV highlights
- Some loosening of remote sensing satellite control thresholds
- Decontrol of autonomous collision avoidance spacecraft
- Narrowing of certain other spacecraft controls
- New controls on spacecraft with non-cooperative grappling, in-orbit construction of defense articles, and deploying multiple spacecraft into different orbits
- Many clarifications, new or revised definitions and explanatory notes
- New exemptions at 126.8 for official space agency programs, specific activities
- Conforming changes to USML Categories VI, VII, VIII, XI, and XX