On February 2, 2022, the State Department’s Directorate of Defense Trade Controls (DDTC) issued a Federal Register notice proposing various amendments and clarification to the International Traffic in Arms Regulations (ITAR). Most significantly, DDTC is proposing to revise the definitions of “export” and “reexport” to clarify that any release of technical data to a foreign person described within these definitions “is a release only to any countries in which that foreign person currently holds citizenship or permanent residency.” Historically, DDTC has always considered and included in these definitions, the current and prior citizenship or permanent resident status of individuals in assessing a foreign person’s access to ITAR-regulated activities. With this proposed amendment, DDTC acknowledges that the former citizenship or permanent residency status in another country “should not be deemed to automatically result in an export or reexport to that country.” DDTC notes that such a change to these two definitions will “provide greater opportunities for foreign persons who are no longer citizens or permanent residents of certain countries to participate in ITAR-regulated activities.” While not noted in the notice, this proposed amendment will also bring DDTC more in alignment with the Department of Commerce’s position on considering only the current citizenship status of an individual under the Export Administration Regulations (EAR).

In addition, DDTC is proposing to replace the term “national” with “person” in the Canadian exemptions; revise the exemption for intra-company, intra-organization, and intra-governmental transfers to dual nationals or third-country nationals; and correct administrative errors in the section of the ITAR regarding voluntary disclosures.

Interested parties must submit comments on these proposed amendment no later than April 4, 2022. Comments may be filed via the U.S. government e-filing portal at www.regulations.gov, under Docket DOS–2021–0031, or via email to DDTCPublicComments@state.gov with the subject line: ‘‘Regulatory Change: ITAR Sections 120, 126 and 127.”