International Law Advisory - DDTC Issues Regulation Amending Various ITAR Provisions

April 25, 2006

On Friday, April 21, 2006, the Department of State, Directorate of Defense Trade Controls (“DDTC”) issued a regulation implementing numerous changes to the International Traffic in Arms Regulations (“ITAR”). See 71 Fed. Reg. 20,534. For the most part, the amendments in the regulation constitute non-substantive revisions and updating of the language of the ITAR—the ITAR language had included a number of internal inconsistencies and out-dated terminology. Among the most significant revisions are the following:

Section 127.1(d) has been amended to provide that no person may “knowingly” or willfully cause, or aid, abet, counsel, demand, induce, procure or permit the commission of any act prohibited by, or the omission of any act required by the ITAR or its enabling statute, the Arms Export Controls Act. The previous version of section 127.1(d) had included the willfulness standard, but not the knowledge standard.
Sections 122.1(a) and 127.1(a) have been clarified to state explicitly that a “defense service” under the ITAR can be accomplished by the performance of a single act. Previously, some had interpreted the ITAR definition of “defense services” to require multiple acts before a license requirement is triggered.
Section 129.4 has been amended to make explicit that the registration requirements for brokers in Part 129 of the ITAR apply to both US persons and foreign persons who are subject to US jurisdiction who engage in “brokering activities” as defined in ITAR Section 129.2(b). Foreign persons are required to provide information in their registration statement that is “substantially similar” to information required of U.S. persons on DDTC form DS-2032.

A revised version of the ITAR should be available shortly on the DDTC website.

If you have any questions regarding the ITAR revisions summarized above, please contact Ed Krauland at 202-429-8083 or David Lorello at 202-429-6757.