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ITAR Part 120 Consolidation: Taking Stock of the Changes

WorldECR

In this article, Christopher Stagg examines the changes and highlights the "need-to-knows" arising from the Part 120 consolidation of the International Traffic in Arms Regulations (ITAR) implemented by the Directorate of Defense Trade Controls (DDTC). On September 6, 2022, the DDTC implemented a long-awaited rule to consolidate key regulatory provisions to within Part 120 of the ITAR. "[I]t is the most significant effort to restructure Part 120 since 1993... This revision is also the first of several planned efforts to consolidate and update the ITAR," Stagg wrote. 

Part 120 is specifically divided into three parts: Subpart A provides general information about the ITAR and other relevant statutes and export control regimes; Subpart B provides an overview of the ITAR-related processes and policies; and Subpart C provides a list of definitions organized based on the relationship between certain definitions. The DDTC's see-through rule interpretation now becomes explicit, expressly addressing the incorporation of defence articles into other items that are not defence articles, Stagg noted, adding that the specially designed definitions of "development" and "production" now apply to the entire ITAR. 

The ITAR's Missile Technology Control Regime (MTCR) Annex has also been removed, and the new provisions clarify what constitutes an MTCR item. "Now with that removal, items that are controlled for MTCR purposes are those having the '(MT)' parenthetical within any USML entry," Stagg wrote. "When the ITAR is fully consolidated and revised, it is expected that Part 123 will address licensing requirements, Part 124 will address the licensing process, and Part 125 will address licensing exemptions," he added. It is further expected that while DDTC proceeds with the initially non-substantive consolidation of the licensing provisions, it will still move forward at the same time with making substantive changes to Part 120.