Highlights
- The U.S. Department of State's Directorate of Defense Trade Controls (DDTC) recently expanded the scope of the International Traffic in Arms Regulations (ITAR) by adding more items to the U.S. Munitions List (USML).
- This Holland & Knight alert discusses how the latest amendments offer key insights into DDTC's regulatory approach and how the government is using new and existing tools in deciding whether to control items on the USML.
- The alert also details the revisions that DDTC made to 15 of the 21 USML categories, the new USML definitions and new ITAR licensing exemption. Regulated parties should carefully review these changes.
In a notable shift, the U.S. Department of State's Directorate of Defense Trade Controls (DDTC) has expanded the scope of the International Traffic in Arms Regulations (ITAR), adding more items to the U.S. Munitions List (USML) than it removed. DDTC plans to issue other rulemakings over the next 12 months that indicate further USML expansion. These developments signal a new post-Export Control Reform era of more ITAR controls on a wider range of industries and technologies.
The recent ITAR amendments, which became effective on Sept. 15, 2025, also made other USML revisions and created a new licensing exemption. In total, these amendments impact 15 of 21 USML categories. This Holland & Knight alert summarizes these latest changes to the USML and the ITAR's new licensing exemption. It also discusses the emerging framework and tools available to DDTC for further ITAR expansion (which takes place against the backdrop of increasing ITAR enforcement) and next steps for industry.
Latest Amendments
The final rule amending the ITAR makes the following revisions: 1) adds and removes items from the USML, 2) makes other revisions to the USML, 3) creates several USML-specific definitions and places them within ITAR Section 121.0, and 4) creates a new licensing exemption. DDTC initiated this rulemaking with an interim final rule on Jan. 17, 2025, that invited public comments until March 18, 2025. The final rule, published on Aug. 27, 2025, and effective on Sept. 15, 2025, incorporated several changes from the interim version.
USML Changes. The amendments implement a significant number of changes across 15 of 21 USML categories. Given the number of changes, the following two tables describe the affected areas and revisions. The first table highlights USML changes that added or removed items. The second table highlights other changes to the USML, which may also include substantive changes. Regulated parties should carefully review the updated USML to determine whether the changes affect the jurisdiction and classification of their items. For example, although DDTC removed certain anti-jam systems from Category XI(a)(4)(iii), another entry in Category XII(d)(3) still enumerates some anti-jam systems.
Table 1: Added or Removed Items
|
USML Provision |
Addition |
Removal |
|---|---|---|
|
III(d)(6) |
Removes "steel or tungsten shotgun pellets with diameters less than or equal to 0.230 in" from paragraph (d)(6) |
|
|
IV(c)(2) |
Adds controls on certain equipment for improvised explosive devices under new paragraph (c)(2) |
|
|
VIII(h)(1) |
Adds several specified aircraft (F-47, MQ-25, RQ-170), certain types of aircraft (e.g., "foreign advanced military aircraft"), and aircraft determined under Category XXI to the catch-all controls for specially designed parts, components, accessories and attachments |
|
|
VIII(h)(29) |
Adds controls on specified production equipment for the updated list of specified aircraft in paragraph (h)(1)(i), certain "foreign advanced military aircraft" described in paragraph (h)(1)(iii) and for developmental aircraft described in paragraph (f) |
|
|
X(b) |
Adds developmental exoskeletons and an associated catch-all control for specially designed parts, components, accessories and attachments |
|
|
XI(a)(4)(iii) |
Removes certain Global Navigation Satellite System (GNSS) anti-jam and GNSS anti-spoofing systems from paragraph (a)(4)(iii) |
|
|
XI(c)(10) |
Adds three subparagraphs, (v) through (vii), for Controlled Reception Pattern Antennas (CRPA) specially designed for functions other than Position, Navigation and Timing (PNT) meeting specified performance thresholds |
Removes certain CRPAs from paragraph (c)(10) and adjusts the performance thresholds in subparagraphs (i) and (ii) |
|
XI(c)(10) |
Removes certain antennas for Airborne Collision Avoidance Systems (ACAS) from paragraph (c)(10) |
|
|
XIII(j)(3) |
Adds certain types of fluids (including greases) that are specially designed for specified defense articles |
|
|
XIV(a)(1) |
Adds five entries to control additional nerve agents with new controls in (iv) through (viii) |
|
|
XIV(j) |
Adds a specified constituent element of a defoliant |
|
|
XIX(d)(2) |
Adds the XT900 engine |
|
|
XIX(f)(1) |
Adds several specified aircraft engines to the catch-all controls for specially designed parts, components, accessories and attachments |
|
|
XIX(f)(2) |
The controls on hot section components involving "combustion chambers and liners" now include "related cooled structures" |
|
|
XX(a)(9) |
Adds controls on uncrewed, untethered vessels that have an anti-recovery feature |
|
|
XX(a)(10) |
Adds controls on uncrewed, untethered vessels with a gross weight rating exceeding 3,000 pounds that are designed to operate without human interaction for longer than 24 hours or for more than 70 nautical miles |
Table 2: Additional Revisions
|
USML Category |
Change |
|---|---|
|
IV |
Revises "apparatus and devices" to "equipment" within paragraph (c) and revises the note to paragraph (c) by placing an "e.g." before "transporters, cranes, and lifts" and making several minor edits |
|
V |
Revises paragraph (c)(2) to add the CAS Registry Number for pentaborane and replaced the comma after "pentaborane" with a semicolon; revises paragraph (f)(4)(x) to correct the CAS Registry Number; revises paragraphs (e)(10), (f)(19) and (g)(4) to fix typographical errors |
|
VII |
Revises note 3 to provide examples of the various types of vehicles covered by Category VII |
|
VIII |
Revises certain entries in paragraph (h)(1) to clarify the specified aircraft (e.g., B-1B now B-1, F-15SE now F-15SE (Silent Eagle)), revises note 1 to paragraph (h)(1), adds note 2 to paragraph (h)(1) and moves the category note to note 1 to paragraph (h) with some editorial revisions |
|
IX |
Removes paragraph (e)(2) and places it into reserve because that control is redundant with paragraph (e)(1) |
|
X |
Revises paragraphs (a)(1), (a)(6) and (d)(1) to reflect the updated terminology from NIJ Type IV to NIJ RF3; revises note 1 to paragraph (a)(1) and note 1 to paragraphs (a) and (d) to reflect the updated NIJ terminology |
|
XI |
Revises paragraph (a)(4)(iii) to break the control into two types of controlled items; adds note 1 to paragraph (a)(4)(iii) to provide the examples previously included in the control criteria; removes the note to paragraph (c)(10), placing the text into paragraph (c)(10) and updating the terminology |
|
XII |
Revises paragraph (d)(2)(ii) to reflect that Precise Positioning Service is now called Protected Positioning Service |
|
XIII |
Revises paragraph (b)(4) to reflect the name change from Unified Cross Domain Management Office to the National Cross Domain Strategy and Management Office; revises paragraph (e)(2) to break the control into two types of controlled items; revises the paragraph (e) entries and paragraph (m)(10) to reflect the updated terminology from NIJ Level III to NIJ RF1; revises paragraph (j) to include "treatments" and "fluids"; and revises the equation's explanations in paragraph (m)(9) |
|
XIV |
Revises paragraph (f)(7) to reflect DDTC's policy that the USML control on Chemical Agent Resistant Coatings (CARC) applies "prior to the application and curing thereof" |
|
XVIII |
Reserves paragraphs (h) through (w) to correct an administrative oversight from the original rulemaking in 2018 |
|
XIX |
Moves the note to paragraph (d) to note 1 to paragraph (d)(1); revises note 1 to paragraph (f)(1); revises paragraph (f)(2) by replacing hot section components with hot section parts and components |
|
XX |
Revises note 1 to paragraph (a)(8) to remove the reference to catch-all parts, components, accessories and attachments; revises note 2 and note 3 to paragraph (a)(8) to reference paragraph (a)(8); and revises paragraph (b)(2) to state the control differently |
|
XXI |
Revises paragraph (a) to move some of the text to the newly created category note; creates note 1 to Category XXI to address the potential applicability of catch-all controls, significant military equipment designations or any exclusion from using a licensing exemption |
New USML Definitions. As part of a broader effort to "modernize" the USML, DDTC is moving definitions specific to only the USML to a dedicated section in ITAR Section 121.0. Meanwhile, defined terms that are used throughout the ITAR will remain in Part 120. Currently, Section 121.0 has eight defined terms, most notably "foreign advanced military aircraft" and "gross weight rating." Over the long term, this section will grow considerably. For instance, DDTC is proposing to add 22 definitions to ITAR Section 121.0, which reflect definitions for only two USML categories.
New ITAR License Exemption. The amendments introduce a new licensing exemption under ITAR Section 126.9(u) for some of the unmanned underwater vehicles (UUVs) now controlled in Category XX(a)(10). While DDTC found that these UUVs warrant USML control because they provide a critical military or intelligence advantage, the agency recognizes that the UUVs have dual-use applications. The licensing exemption offers a regulatory middle ground, covering certain activities (e.g., scientific research or natural resource exploration) for a subset of the newly controlled UUVs (e.g., not having a gross weight rating exceeding 8,000 pounds). As discussed further below, this exemption indicates a new framework that DDTC will use more in the future.
Notes and Observations
The latest amendments offer three key insights into DDTC's regulatory approach and how it is deploying both existing tools (Category XXI) and new ones (licensing exemptions) in deciding whether to control items on the USML:
The ITAR Is in Expansion Mode. The amendments reflect a significant shift, with the number of items covered by the USML increasing as the additions outnumber removals. Zooming out, other targeted revisions similarly indicate that further USML amendments will add more items than they remove. Furthermore, DDTC is proposing to expand the scope of defense services, even though it has long recognized that the current scope is already "overly broad." The regulated community should be on alert that the ITAR's scope is now expanding after a long period of the USML contracting through the Export Control Reform initiative.
Category XXI Takes Center Stage. A rarely used control, Category XXI became a key driver of these amendments. Category XXI provides DDTC discretion to control any item that is not otherwise currently on the USML while the government amends the list. Several of the new controls originated from these Category XXI determinations, including certain fluids, greases, equipment for improvised explosive devices, items relating to hot section combustion chambers and UUVs. The amendments also now position Category XXI to take on a greater role, with areas of Categories VIII and XIX now referencing it for additional coverage, indicating DDTC expects to use it more.
New License Exemption Framework for Dual-Use Items. Recent rulemaking efforts have shown DDTC's increasing consideration of using licensing exemptions as a solution for controlling items with dual-use applications. In this case, DDTC created a new licensing exemption regulation in ITAR Section 126.9 and added an exemption for certain activities involving controlled UUVs. The title of the new regulation, however, covers "certain activities involving defense articles" – not just UUVs – and the placement of the first exemption under paragraph (u) reserves the previous 20 entries for future use. This development indicates a new framework that provides DDTC with tools to address civilian applications of defense articles, meaning the USML could increasingly include dual-use items rather than excluding them.
Next Steps
As the ITAR's scope expands and DDTC enforcement scrutiny intensifies, regulated parties should reassess their risk profiles and compliance programs. This assessment should include whether the existing compliance program infrastructure is ready for an expanding rather than contracting USML. Regulated parties should also revisit previous jurisdiction and classification determinations to ensure they reflect these latest regulatory changes. Those dealing with the newly controlled UUVs should review the new exemption in ITAR Section 126.9(u) to determine if it applies to their activities. Finally, with multiple rulemakings planned over the next 12 months and DDTC's demonstrated responsiveness to public input, regulated parties should consider engaging in the comment process.
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.
