Directorate of Defense Trade Controls Makes Several Changes to the ITAR
The Department of State's Directorate of Defense Trade Controls today published a final rule in the Federal Register making several changes to the International Traffic in Arms Regulations (ITAR). The changes pertain to Part 120 (Purpose and Definitions), Part 123 (Licenses for the Export of Defense Articles), Part 124 (Agreements, Off-Shore Procurement and Other Defense Services), Part 126 (General Policies and Provisions) and Part 127 (Violations and Penalties). Most of the amendments are minor and technical in nature. For example, the amendment include the formal transfer of responsibility for commodity jurisdictions (CJs) from the Office of Defense Trade Controls Licensing to the Office of Defense Trade Controls Policy (the Office of Policy has been responsible for handling CJs for some time) and stating that voluntary disclosures should be sent to DDTC's Office of Defense Trade Controls Compliance.
The more significant changes made to the ITAR include the establishment of new thresholds for congressional notification for major defense equipment and defense service contracts with NATO countries, Australia, Japan and New Zealand. The new threshold for these countries is $25 million for major defense equipment contracts and $100 million for defense service contracts (the previous thresholds were $14 million and $50 million respectively). The thresholds for all other countries remain the same. Congress mandated these threshold changes in the FY2003 Foreign Relations Act. Another significant change made to the ITAR relates to the requirement that exporters obtain licenses for exports of man-portable air defense systems (MANPADS) and related parts and components and technical data to Canada. The requirement is a new addition to the list of defense articles, technical data and defense services (see 22 CFR 126.5(b)) that require a license or other form of authorization for Canada.
The notice can be accessed at the following link:
http://a257.g.akamaitech.net/7/257/2422/01jan20051800/
edocket.access.gpo.gov/2005/pdf/05-11892.pdf.
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