International Traffic in Arms Regulations (ITAR): Review of the U.S. Munitions List and Related Definitions and License Exemptions

Issuing agencies

Abstract

The Department of State (the Department) proposes to amend the International Traffic in Arms Regulations (ITAR) to ensure that the U.S. Munitions List (USML) focuses ITAR controls on the most sensitive technologies, to improve regulatory transparency and clarity, and to reduce regulatory burdens. The revisions proposed in this rule would remove certain items from the USML, update definitions and standardize the regulatory text, and add a new exemption to the licensing requirements of the ITAR. The Department also requests public comments to further refine ITAR controls.

Full Text

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<title>Federal Register, Volume 91 Issue 189 (Thursday, October 1, 2026)</title>
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[Federal Register Volume 91, Number 189 (Thursday, October 1, 2026)]
[Proposed Rules]
[Pages 62361-62368]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-20079]


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DEPARTMENT OF STATE

22 CFR Parts 120, 121, and 123

[Public Notice: 13123]
RIN 1400-AF40


International Traffic in Arms Regulations (ITAR): Review of the 
U.S. Munitions List and Related Definitions and License Exemptions

ACTION: Proposed rule; request for comments.

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SUMMARY: The Department of State (the Department) proposes to amend the 
International Traffic in Arms Regulations (ITAR) to ensure that the 
U.S. Munitions List (USML) focuses ITAR controls on the most sensitive 
technologies, to improve regulatory transparency and clarity, and to 
reduce regulatory burdens. The revisions proposed in this rule would 
remove certain items from the USML, update definitions and standardize 
the regulatory text, and add a new exemption to the licensing 
requirements of the ITAR. The Department also requests public comments 
to further refine ITAR controls.

DATES: Send comments by November 30, 2026.

ADDRESSES: Interested parties may submit comments to the Department by 
any of the following methods:
    <bullet> Visit the <a href="http://Regulations.gov">Regulations.gov</a> website at: <a href="https://www.regulations.gov">https://www.regulations.gov</a> and search for the docket number DOS-2026-0991.
    <bullet> Email: <a href="/cdn-cgi/l/email-protection#ffbbbbabbcaf8a9d93969cbc9092929a918b8cbf8c8b9e8b9ad1989089"><span class="__cf_email__" data-cfemail="d39797879083a6b1bfbab090bcbebeb6bda7a093a0a7b2a7b6fdb4bca5">[email&#160;protected]</span></a>. Commenting parties 
must include RIN 1400-AF40 in the subject line of the email message.
    See SUPPLEMENTARY INFORMATION for other information about 
electronic filing in the ``Comment Submission Instructions'' section.

FOR FURTHER INFORMATION CONTACT: Chris Weil, Office of Defense Trade 
Controls Policy, Department of State, telephone 202-663-1282, email 
<a href="/cdn-cgi/l/email-protection#5014140413132523243f3d3522033522263933351023243124357e373f26"><span class="__cf_email__" data-cfemail="165252425555636562797b7364457364607f757356656277627338717960">[email&#160;protected]</span></a>; SUBJECT: International Traffic in Arms 
Regulations: Omnibus Proposed Changes (RIN 1400-AF40).

SUPPLEMENTARY INFORMATION: The Department's Directorate of Defense 
Trade Controls (DDTC) administers the ITAR (22 CFR parts 120 through 
130) to, among other things, regulate the export, reexport, retransfer, 
and temporary import of the defense articles and defense services 
identified on the USML at 22 CFR 121.1. Items not subject to the ITAR 
or to the exclusive licensing jurisdiction of certain other departments 
or agencies of the U.S. Government are subject to the Export 
Administration Regulations (EAR, 15 CFR parts 730 through 774, which 
includes the Commerce Control List (CCL) in supplement no. 1 to part 
774). The EAR is administered by the Department of Commerce, Bureau of 
Industry and Security (BIS). The changes proposed by this rule would 
not modify the list of defense articles and defense services controlled 
for purposes of permanent import by the Attorney General, as enumerated 
on the U.S. Munitions Import List (USMIL) at 27 CFR 447.21.
    Section 38 of the Arms Export Control Act (AECA) (22 U.S.C. 2778), 
the authority from which the ITAR is derived, requires periodic review 
to determine what articles and services, if any, no longer warrant 
designation on the USML at ITAR Sec.  121.1. Further, Executive Order 
14268 directs the Department to focus ITAR protections ``. . . on our 
most sensitive and sophisticated technologies . . .'' DDTC's Office of 
Defense Trade Controls Policy (DTCP) identifies articles and services 
for potential removal from or addition to the USML, or clarification on 
how they are described on the USML, through a variety of methods, 
including public feedback and interagency consultations, commodity 
jurisdiction reviews, advisory opinions, and technology monitoring. The 
Department maintains the USML such that it is composed of those defense 
articles or defense services that provide a critical military or 
intelligence advantage. The Department, informed by consultations with 
its interagency partners, assesses that the items this rule proposes to 
remove from the USML no longer meet this standard, and therefore 
proposes to transfer them to the jurisdiction of the EAR.
    This rule proposes the removal of items ranging from specific types 
of items to much broader sets of items described in catch-all controls 
(i.e., controls that refer to unspecified parts, components, 
accessories, or attachments if they are specially designed for an 
enumerated item; see Sec.  120.42(g)). It also proposes to create a new 
exemption from the licensing requirements of the ITAR for the temporary 
export of a foreign defense article to its foreign manufacturer. In 
addition, the Department proposes to revise parts 120 and 121 to 
improve the clarity, consistency, and syntax of the regulatory text, 
and to align with evolving technologies and update internal references 
within the USML, with no change in the scope of the regulation.
    The Department invites feedback from industry and other interested 
parties on revisions proposed by this rule, which are further explained 
in this supplementary information. In accordance with 5 U.S.C. 
553(b)(4), a summary of this proposed rule may be found at <a href="https://www.regulations.gov">https://www.regulations.gov</a>.

Proposed Changes to Part 120

Sec.  120.31--Defense Article

    To clarify the definition of defense article at Sec.  120.31, the 
Department proposes to restructure, revise, and relocate paragraph (b) 
to new paragraphs in Sec.  120.35. These changes would clarify the 
terms ``basic marketing information on function or purpose'' and 
``general system descriptions'' in proposed paragraphs Sec.  
120.35(b)(1) and (2), with no intended change in scope. Additional 
details are included in the section of this preamble discussing changes 
to Sec.  120.35.

Sec.  120.32--Defense Service

    The Department proposes to revise the definition of defense service 
in Sec.  120.32 by adding a cross-reference in paragraph (a) to 
proposed Sec.  120.35, which would exclude certain services from the 
USML. Additional details are included in the section of this preamble 
discussing changes to Sec.  120.35.

Sec.  120.33--Technical Data

    The Department proposes to revise the definition of technical data 
in Sec.  120.33 by moving the last sentence in paragraph (a)(1) to a 
new note 1 to paragraph (a)(1). The Department proposes this move, and 
minor revisions for clarity, as the list of examples in the sentence is 
a subset of the definition, which includes information in all forms.

Sec.  120.35--Items That Are Excluded From the U.S. Munitions List

    The Department proposes to remove the reserved Sec.  120.35 and add 
a new Sec.  120.35 to identify certain items that would be excluded 
from control under the ITAR. Proposed paragraphs (a) and (b) would 
exclude certain items from the Sec.  120.31 definition of defense 
article.
    Proposed paragraph (a) would clarify specific circumstances in 
which,

[[Page 62362]]

following demilitarization, certain commodities are no longer described 
in a USML paragraph that uses the term ``specially designed.'' In 
analyzing whether an article has been modified such that it is no 
longer described on the USML, practitioners must assess whether all 
characteristics that made the item a defense article have been 
permanently removed. This may require specific development and 
engineering knowledge from the original equipment manufacturer (OEM). 
Removing all components described on the USML (e.g., armor and weapons) 
may be insufficient if, for example, structural elements or other 
features remain that result in the article continuing to be described 
on the USML.
    Consider, for example, a helicopter that was designed to deliver 
munitions. Such aircraft are described in USML Category VIII, even if 
the specific aircraft is now used exclusively for fighting wildfires, 
as it has an airframe that was designed to meet the requirements for 
delivering munitions. Removing components supporting that function 
(e.g., hard points, ballistically tolerant systems, weapons, and 
mission systems) would not remove all the airframe properties that were 
included in the design to support the vertical stub-wing loads for 
carrying munitions and the horizontal stub-wing loads to accommodate 
forces from munitions launches. Such a helicopter still has properties 
that are only in its design to enable the delivery of munitions, and 
thus it remains described in USML Category VIII.
    An example of an article that has been modified such that it is no 
longer a defense article described in USML Category VII(b) would be a 
vehicle variant designed to launch missiles, from which all of its 
weapons, mission systems, and armor have been removed such that the 
remaining vehicle chassis and systems are also common to variants of 
the same vehicle that were not designed as a firing or launch platform. 
Specifically, provided the vehicle no longer has defense articles 
incorporated, and no properties that meet paragraph (a)(1) of Sec.  
120.41 in the context of USML Category VII(b), it would no longer be 
described therein.
    Proposed paragraph (b) would revise the text relocated from Sec.  
120.31(b), with no intended change to the scope of control, to better 
describe the information this paragraph excludes from the defense 
article definition.

Sec.  120.41--Specially Designed

    The Department proposes revisions to paragraph (b) of the 
definition of specially designed in Sec.  120.41. Specifically, the 
Department proposes to revise paragraph (b)(3), with no change to the 
scope of control, to add and reserve paragraph (b)(6) to prevent 
conflation with paragraph (b)(6) in the EAR's parallel definition, to 
add paragraphs (b)(7) and (8) to reduce the scope of items designated 
on the USML, and to make conforming changes to the notes to paragraph 
(b).
    In paragraph (b)(3), the Department proposes to remove the phrase 
``and fit'' as an artifact of language that has no practical effect and 
has caused confusion among practitioners. Specifically, the definition 
of equivalent at Sec.  120.42(e) requires a difference in fit. Thus, 
the Department assesses the correct term is ``equivalent form'' when 
referring to a change in form solely for fit purposes. Stated another 
way, if the fit is the same, any change in form would not be for fit 
purposes and thus would not be equivalent.
    The Department proposes to revise paragraph (b)(3)(i) to account 
for the proposed revisions to the definitions of production and 
development. This change is intended to have no effect on the scope of 
the controls, as the current and proposed text both require that 
production has begun and development has ended.
    Additionally, the Department proposes to add paragraph (b)(7) to 
Sec.  120.41 to prevent certain items from being described in a catch-
all control on the USML. Specifically, the Department is proposing to 
remove from the USML certain items originally designed for a defense 
article that were not described on the USML within the first year after 
leaving development but are later used, without modification, in 
another defense article that results in their post hoc description on 
the USML in a catch-all control. The proposed paragraph (b)(7) would 
establish distinct conditions in which an article would not meet the 
ITAR's ``specially designed'' definition despite its subsequent use in 
or with additional defense articles if it did not meet the definition 
initially and all modifications for subsequent use were solely for fit 
purposes.
    This new exclusion from the USML via the specially designed 
definition is intended to ensure that the ITAR does not inadvertently 
control articles that were designed and produced for defense articles 
with no catch-all control on the USML and are later used in defense 
articles with a catch-all control on the USML. For example, consider a 
component originally developed for an electronic support system 
described in paragraph (a)(4)(i) of USML Category XI. If the component 
is not described elsewhere on the USML, it is subject to the EAR and 
described in Export Control Classification Number (ECCN) 3A611.x. Years 
later, the unmodified component is reused in an electronic support 
system specially designed for a naval submarine described in paragraph 
(a)(1) of USML Category XX, which has a catch-all control in paragraph 
(c) of Category XX. In the context of that catch-all control, the 
component meets the definition of ``specially designed'' in ITAR Sec.  
120.41(a)(2) as a component for use in or with the Category XX(a)(1) 
submersible. It does not meet the criteria in the current carve-out 
language in paragraphs (b)(3) through (5) of Sec.  120.41 because it 
was developed exclusively for a defense article and is still used only 
in defense articles. As a result, the component previously subject to 
the EAR becomes described on the USML in Category XX(c) solely due to 
its subsequent use in a Category XX(a)(1) submersible. New paragraph 
Sec.  120.41(b)(7) would ensure such a component is not described in 
USML Category XX(c) if it has the same or equivalent form when 
comparing the versions used in each defense article.
    Additionally, the Department proposes to add paragraph (b)(8), 
which will expand the list of commodities that are explicitly excluded 
from catch-all controls on the USML. Proposed paragraph (b)(8) is 
intended to have a similar effect as paragraph (b)(2). Paragraph (b)(2) 
currently excludes fasteners and other basic commodities that the 
Department has determined do not provide a critical military or 
intelligence advantage. However, unlike paragraph (b)(2), paragraph 
(b)(8) would not have a similar provision in the EAR definition of 
specially designed. As a result, while commodities described in 
paragraph (b)(2) are not described in catch-all controls on either the 
USML or the CCL, being described in paragraph (b)(8) means that a 
commodity is not described in any catch-all controls on the USML. The 
Department assesses that the removal of these commodities, which the 
Department has determined do not provide a critical military or 
intelligence advantage, would promote U.S. industry participation in a 
range of international supply chains without adversely affecting U.S. 
national security.

Sec.  120.42--Form, Fit, Function, Performance Capability, Equivalent, 
Enumerated, and Catch-All Control

    The Department proposes to clarify the definition of ``equivalent'' 
in paragraph (e) of Sec.  120.42 by adding the word ``form'' to clarify 
that a commodity has ``equivalent form'' when its form

[[Page 62363]]

has been modified solely for fit purposes. This is intended to provide 
clearer guidance and reinforce that the reason for the form change is 
what is being assessed, not the fit. The Department also proposes to 
adjust the heading of Sec.  120.42 to reflect that adjustment in 
terminology defined therein.

Sec.  120.43--Development, Production, and Related Terms; Basic and 
Applied Research

    The Department proposes revising paragraphs (a) and (b) in Sec.  
120.43 to provide greater clarity on the scope of the development and 
production phases in the product lifecycle. The proposed revisions to 
Sec.  120.43 add subparagraphs to paragraph (a) that detail specific 
development activities, while noting when development ends, and correct 
the structure of paragraph (b).
    The proposed revisions would amend paragraph (a) to clarify the 
definition of development. Note this rule uses the name ``Department of 
Defense'' (DoD) as opposed to the ``Department of War,'' as the name of 
the agency designated with these authorities in the Arms Export Control 
Act, which the ITAR partially implements. Proposed paragraph (a)(2) 
would maintain that development concludes when design is finalized and 
tested to support serial production (or its equivalent), with all key 
design decisions, integration, and validation activities complete. 
Proposed paragraph (a)(3) would relocate language from current 
paragraph (b)(2) and clarify existing provisions that routine 
enhancements to sustainability, reliability, maintainability, quality 
improvements, cost reductions, or feature enhancements do not restart 
the development cycle for articles already in production. These 
revisions would also provide that cosmetic changes do not restart the 
development cycle.
    Similarly, a portion of current paragraph (b)(1) would be moved to 
the unused paragraph (b) and revised for clarity. Paragraph (b)(1) 
would be revised to refine the definition, with adjustments to 
encompass equivalents to serial production. Having moved a portion of 
the existing scope of current paragraph (b)(2) to proposed paragraph 
(a)(3), the Department proposes to revise paragraph (b)(2) to provide 
more precise guidance on when post-production modifications constitute 
development versus production activities, distinguishing between 
routine enhancements that remain in production status and changes that 
alter function or performance capabilities that restart the development 
cycle. These revisions are intended to harmonize the definitions and 
resolve classification uncertainty during product transitions.

Sec.  120.54--Activities That Are Not Exports, Reexports, Retransfers, 
or Temporary Imports

    The Department proposes to revise the language in Sec.  
120.54(a)(1) to clarify that for the launch of a defense article out of 
the United States to not constitute an export, reexport, retransfer, or 
temporary import under the ITAR, the defense article must be launched 
into or beyond orbit. The Department proposes this change for 
transparency and regulatory clarity and consistent with the scope of 
the current language, as launches into space that do not reach orbit 
and return directly to the United States are not currently exports (see 
Sec.  120.54(a)(4)). The proposed revisions would provide a clear 
criterion for determining which launches are included in this 
regulatory provision, as the term ``into space'' is not defined.

Proposed Changes to Part 121

USML Category II--Guns and Armament

    The Department proposes to narrow USML Category II(a)(4) to remove 
smooth-bore, fixed-barrel canister launchers. This change would remove 
the less-lethal and less-precise canister launchers from the USML while 
retaining grenade launchers with rifled or removable barrels. The 
Department assesses the items proposed for removal no longer provide a 
critical military or intelligence advantage.

USML Category VIII--Aircraft and Related Articles

    The Department proposes to remove and reserve USML Category 
VIII(h)(10), which would remove most radar altimeters from the USML, 
based on its assessment these items no longer provide a critical 
military or intelligence advantage.

USML Category X--Personal Protective Equipment

    The Department proposes to modify USML Category X(a)(7) to adjust 
the control text parameters to remove from the USML certain goggles, 
spectacles, visors, vision blocks, canopies, or filters for optical 
sights or viewers that it assesses no longer provide a critical 
military or intelligence advantage. The Department also proposes to 
remove the parenthetical examples as unnecessary. Additionally, the 
Department requests public comments on ways to further refine the scope 
and clarity of paragraph (a)(7) and the related controls in paragraph 
(d)(3).

USML Category XX--Submersible Vessels and Related Articles

    The Department proposes to revise USML Category XX(c) in several 
ways. First, the Department proposes to restructure paragraph (c) by 
moving the items described therein into three new subparagraphs (1) 
through (3). Proposed paragraph (c)(1) would clarify controls on items 
specially designed for naval nuclear propulsion plants or facilities 
described in paragraph (b)(1) and newly designate them as Significant 
Military Equipment (SME), consistent with related paragraph (f)(5) of 
USML Category VI. Proposed new paragraph (c)(2) would describe the 
remaining systems and equipment currently described in paragraph (c). 
The remaining catch-all control in current paragraph (c), for items 
other than nuclear propulsion, would move to proposed paragraph (c)(3).
    In addition, the Department proposes to narrow what would be 
described in proposed paragraph (c)(2) by replacing the single broad 
paragraph with multiple focused subparagraphs. Currently, paragraph (c) 
describes all specially designed parts, components, accessories, 
attachments, and associated equipment for military submersible and 
semi-submersible vehicles, which is one of the broadest control 
paragraphs on the USML. The Department assesses that certain articles 
described by this paragraph do not provide a critical military or 
intelligence advantage. Although the proposed changes would increase 
the number of subparagraphs to paragraph (c)(2), their addition would 
significantly narrow the scope of controls currently implemented 
through paragraph (c).

Proposed Changes to Part 123

Sec.  123.26--Temporary Export for Servicing or Repair of Foreign 
Defense Articles

    The Department proposes a new exemption to ITAR licensing 
requirements at Sec.  123.26 to allow the temporary export of foreign 
defense articles from the United States when the export is solely for 
certain activities, such as servicing or repair by the OEM or its 
authorized service provider. An export license would not be required 
when specific conditions are met, including that the defense article is 
unclassified and is temporarily exported from the United States to the 
OEM or its authorized service provider for specific authorized 
activities. This exemption from export licensing requirements does not 
relate to the import requirements that may be imposed by the United 
States Munitions Import List (USMIL),

[[Page 62364]]

found at 27 CFR part 447, which is administered by the Bureau of 
Alcohol, Tobacco, Firearms, and Explosives (ATF), Department of 
Justice. The Department assesses this change would reduce unnecessary 
regulatory burdens while maintaining appropriate controls on sensitive 
items.

Updating of Licenses and Agreements

    As part of the Department's USML modernization efforts, the USML 
classification for some defense articles and defense services would 
change or be removed. Consistent with prior revisions of USML 
categories, additional guidance on the treatment of such items, 
including the impact of the change on the treatment of items previously 
exported under an ITAR license, is provided on DDTC's website.

Request for Comments

Comments Requested

    Consistent with its ongoing USML review process, the Department is 
requesting public comments on the revisions proposed in this 
rulemaking. In particular, the Department is requesting comment on ways 
to streamline the descriptions and criteria on the USML, so that it may 
continue to protect U.S. national security and foreign policy interests 
while benefitting U.S. industry and international partners. Describing 
items more precisely could lower administrative burdens and regulatory 
compliance costs and present an opportunity for increased exports, thus 
bolstering the U.S. commercial sector and industrial base.
    The Department encourages the public to provide both comments 
directly related to this proposed rule and responses to the questions 
presented in the rule. To facilitate timely review and assessment of 
comments, the Department recommends beginning with a concise summary 
sentence or paragraph, followed by explanations and supporting facts or 
evidence. Multiple comments should be submitted in separate paragraphs 
from each other. The Department specifically requests comments focused 
on the following questions:
    1. Paragraph (a)(7) of USML Category X describes certain ocular 
personal protective equipment ``employing other than common broadband 
absorptive dyes or UV inhibitors as a means of protection,'' and 
provides a non-exhaustive list of examples. The Department requests 
comments on the following questions to assist in refining the scope and 
clarity of paragraph (a)(7) and the related controls in paragraph 
(d)(3).
    a. Are there other specific functions, performance levels, or 
characteristics that could better delineate the ocular protection items 
on the USML from those widely available for civil applications such as 
laboratory work and manufacturing?
    b. How useful do you find the optical density criterion? Should the 
thresholds be different for paragraphs (a)(7)(i), (ii), and (iii)? What 
is involved in changing the application process for a specific dye to 
reliably achieve greater optical density, and how challenging is it to 
make those changes?
    c. Would a percentage of visible light transmission (VLT) be a 
useful criterion for distinguishing capabilities for this equipment? 
Please provide examples of VLT for ocular protection used in civil 
applications and that used in military applications.
    2. The Department previously noted in 90 FR 41778 that paragraph 
(c)(10)(iv) of USML Category XI is not intended to describe antennas 
developed exclusively for civil airborne weather radar. If there are 
specific examples of antennas developed exclusively for civil airborne 
weather radar currently described therein, the Department requests 
detailed examples and technical criteria it could use to differentiate 
these antennas from other antennas described in paragraph (c)(10).
    3. The Department emphasizes that paragraph (x) within the various 
categories of the USML is not an export classification. Instead, it 
serves as a mechanism to streamline export licensing by enabling a 
unified method to apply for an authorization to export both articles 
subject to the ITAR and related items subject to the EAR. Practitioners 
can utilize paragraph (x) to simplify the licensing process for such 
mixed shipments involving items controlled under both regulatory 
frameworks. The Department invites public comment on ways to enhance 
clarity and understanding for practitioners to avoid the erroneous 
application of this paragraph while maintaining this paragraph's ease 
of use and understanding.
    4. The Department is considering removing references to 
``software'' from paragraphs (a)(2), (b), (b)(3), and (b)(5) of the 
specially designed definition at Sec.  120.41, as well as modifying 
paragraph (a) to read ``Except for commodities described in paragraph 
(b) of this section, a commodity or software is specially designed if . 
. .'' With this potential revision, an (a)(1) analysis would remain 
applicable to software, but the (a)(2) and (b) analyses would not. 
(Note that this proposed change would affect only USML entries where 
software is described as specially designed and not where software is 
described as technical data--which uses the definition at Sec.  
120.33(a)(4).) The Department is considering this change to address the 
implementation reality that system- and equipment-level controls, such 
as those in USML Category XI(b), generally do not release software 
despite the text of Sec.  120.41(b). It would also be counterintuitive 
to potentially control software via Sec.  120.41(a) because it was 
designed explicitly for intelligence purposes, then not do so via Sec.  
120.41(b)(4) merely because it was developed to run on both defense 
articles and EAR items. Specifically, in the case of software, even 
when portions of the code meet the text of Sec.  120.41(b), the see-
through rule at Sec.  120.11(c) continues to control portions of the 
code that do not meet the text of Sec.  120.41(b) and Sec.  
120.33(a)(4) continues to apply to software described in the technical 
data paragraphs that are directly related to the combined system or 
equipment (consisting of (1) the software running (2) on hardware 
subject to the EAR). Removing ``software'' from the specified 
paragraphs would ensure that software designations are applied more 
consistently by practitioners, consistent with the software's intended 
national security purpose. The Department invites comments on this 
potential revision, including locations within the regulations where 
practitioners would find guidance on reviewing software most useful.
    5. The Department invites comments on the following questions to 
assist in refining the scope and clarity of the development and 
production phases in the product lifecycle, as defined in paragraphs 
(a) and (b) of Sec.  120.43:
    a. The Department considered using Technology Readiness Levels 
(TRLs) and DoD Acquisition Milestones; however, they only generally 
align with the development and production phases and the definitions 
apply broadly outside of DoD acquisitions. For example, in DoD Major 
Capability Acquisitions, the Milestone C decision generally aligns with 
the decision to enter into the Production and Deployment Phase; 
however, for the purposes of the ITAR, the Milestone C decision does 
not necessarily indicate the end of the development phase. The end of 
the development phase, for the purposes of the ITAR, is more aligned 
with entrance into Full Rate Production or equivalent production at 
scale. To what extent would you find an accompanying note to the 
definitions beneficial, if it only identifies general

[[Page 62365]]

DoD TRL or milestone alignments (and is thus not determinative)?
    b. Do you believe the proposed definitions provide sufficient 
clarity for applicability or would other types of references be useful 
in the definition or explanatory notes? For example, do they 
sufficiently address the continuous integration and continuous 
deployment (CI/CD) or custom-build contexts?
    c. Are there any other product lifecycle scenarios you believe 
these definitions do not fully address or incorrectly address?
    6. Proposed paragraph (b) of Sec.  120.35 is intended to relocate 
and more clearly identify the provision in Sec.  120.31(b) that ``basic 
marketing information on function or purpose or general system 
descriptions'' is excluded from the definition of a defense article, 
with no change in scope. The Department welcomes suggestions on ways to 
further enhance clarity of the proposed paragraph (b) of Sec.  120.35 
and any perceived change in scope from the existing text.
    7. Are there commodities, services, or technical data closely 
related to the proposed revisions that warrant ITAR control, but are 
currently either not described on the USML, or not described with 
sufficient clarity? If so, please provide examples and a concise 
explanation.
    8. Are there specific commodities, services, or technical data 
described on the USML following these proposed revisions that are, or 
have previously been, in normal commercial use, that were previously 
removed from the USML, or that were previously determined not to be 
subject to the ITAR via a commodity jurisdiction determination issued 
pursuant to Sec.  120.12? If so, please include supporting 
documentation.
    9. Are there specific commodities, services, or technical data 
described on the USML following these proposed revisions for which 
civil use is proposed, intended, or anticipated in the next five years? 
Please include supporting documentation and a point of contact familiar 
with the details.
    10. Are there specific articles or services described on the USML 
following these proposed revisions with such widespread foreign 
availability that they, and their directly related technical data and 
defense services, do not provide a critical military or intelligence 
advantage? Please include supporting documentation and a point of 
contact familiar with the details.
    11. Are there specific functions, performance levels, or 
characteristics related to these proposed revisions that could better:
    a. Distinguish between the commodities that do, and do not, warrant 
ITAR control;
    b. Delineate the criteria for control, in lieu of using the term 
``specially designed''; or
    c. Align with the constructions or language used in other USML 
entries?
    12. Can any of these revisions be more concisely stated?
    13. Are these revisions unclear to you in any way? For example, 
please identify any:
    a. Terms that you find ambiguous in definition or context; or
    b. Constructions or regulatory text that varies from existing USML 
paragraphs.
    14. Are there other technical issues directly related to these 
paragraphs which you believe the Department should address in future 
rulemaking?

Comment Submission Instructions

    Include the Regulatory Information Number (RIN) (1400-AF40) or 
agency name and docket number for all submissions related to this rule. 
Parties who wish to comment anonymously may do so by submitting their 
comments via <a href="http://www.regulations.gov">www.regulations.gov</a>, leaving the fields that would 
identify the commenter blank and including no identifying information 
in the comment itself. Commenters are cautioned not to include 
proprietary, export-controlled, or other sensitive information that 
they are not comfortable making public in their comments. If such 
information would provide useful insight to the comment, (1) assemble 
that information in a separate document with proprietary markings; (2) 
include ``Proprietary supplement on file with: [provide Point of 
Contact]'' as the first line in the body of the email submission; (3) 
submit the public portion of the comment via email; and (4) call DDTC 
at (202) 663-1282 to coordinate submission of the proprietary 
supplement.

Regulatory Analysis and Notices

Administrative Procedure Act

    This rulemaking is exempt from the rulemaking requirements of the 
Administrative Procedure Act (APA) pursuant to 5 U.S.C. 553(a)(1) as it 
involves a military or foreign affairs function of the United States. 
Nevertheless, and without prejudice to this determination, the 
Department elects to seek public comment on this rule.

Regulatory Flexibility Act

    Since this rule is exempt from the notice-and-comment rulemaking 
provisions of 5 U.S.C. 553, it does not require analysis under the 
Regulatory Flexibility Act.

Unfunded Mandates Reform Act of 1995

    This rulemaking does not involve a mandate that will result in the 
expenditure by State, local, and tribal governments, in the aggregate, 
or by the private sector of $100 million or more in any year and it 
will not significantly or uniquely affect small governments. Therefore, 
no actions were deemed necessary under the provisions of the Unfunded 
Mandates Reform Act of 1995.

Executive Orders 12372 and 13132

    This rulemaking does not have sufficient federalism implications to 
require consultations or warrant the preparation of a federalism 
summary impact statement. The regulations implementing Executive Order 
12372 regarding intergovernmental consultation on Federal programs and 
activities do not apply to this rulemaking.

Executive Orders 12866 and 13563

    Executive Order 12866, as supplemented and reaffirmed by Executive 
Order 13563, directs agencies to assess all costs and benefits of 
available regulatory alternatives and, if regulation is necessary, to 
select regulatory approaches that maximize net benefits (including 
potential economic, environmental, public health and safety effects, 
distributed impacts, and equity). Executive Order 13563 emphasizes the 
importance of quantifying both costs and benefits, of reducing costs, 
of harmonizing rules, and of promoting flexibility. The Department 
specifically welcomes public comment on the impact, including costs and 
benefits, of this rule. After review by the Office of Management and 
Budget (OMB), this rule has been deemed a significant regulatory 
action.
    This rule was undertaken pursuant to a statutory directive to 
periodically review the items on the USML. The Department generally 
determines which items warrant addition to, or removal from, the USML 
by assessing whether each provides a critical military or intelligence 
advantage based on national security and foreign policy considerations. 
Because the costs and benefits of changing what is controlled focus on 
the effect or utility of the item or service, rather than its market 
prevalence or economic value, quantitative analyses cannot be usefully 
estimated and are not available, particularly since the global 
prevalence or availability of the item or service are

[[Page 62366]]

not known. Moreover, the Department does not have useful estimates or 
models to predict whether or how frequently the items added to the USML 
by this rule will be applied for export or to which countries, or for 
temporary import and from which countries. Qualitatively, this rule was 
assessed for costs and benefits. Because listing individual items or 
model numbers would necessarily lead to incomplete controls when an 
item is renamed or slightly modified, the USML contains many 
descriptive controls that are based on broader characteristics, 
including form, fit, function, and performance capability. To more 
accurately describe only what the Department intends to control, and to 
provide companies and individuals with better certainty, some USML 
revisions made by this rule are intended to clarify and otherwise 
improve various entries and to more precisely focus controls. These 
revisions are also informed by confidential commodity jurisdiction 
determination and advisory opinion requests submitted by industry. The 
Department considers common questions and strives to streamline and 
simplify USML entries based on and consistent with industry's 
experience parsing the USML.
    The Department assesses that the benefits of this rulemaking 
outweigh any costs, that modifying the USML in this manner is the most 
cost-effective method to achieve the Department's regulatory objectives 
on this matter, and that doing so will result in a net reduction of the 
burden on the regulated community.

Executive Order 13175

    The Department of State has determined that this rulemaking will 
not have tribal implications, will not impose substantial direct 
compliance costs on Indian tribal governments, and will not preempt 
tribal law. Accordingly, the requirements of Executive Order 13175 do 
not apply to this rulemaking.

Executive Order 14192

    This rule is exempt from Executive Order 14192 as it is a 
regulation issued with respect to a foreign affairs or national 
security function of the United States.

Executive Order 12988

    The Department of State has reviewed this rulemaking in light of 
sections 3(a) and 3(b)(2) of Executive Order 12988 to eliminate 
ambiguity, minimize litigation, establish clear legal standards, and 
reduce burden.

Paperwork Reduction Act

    This rulemaking does not impose or revise any information 
collections subject to 44 U.S.C. Chapter 35.

List of Subjects

22 CFR Parts 120 and 121

    Arms and munitions, Classified information, Exports.

22 CFR Part 123

    Arms and munitions, Exports, Reporting and recordkeeping 
requirements.

    Accordingly, for the reasons set forth above and under the 
authority of 22 U.S.C. 2778, the Department of State proposes to amend 
22 CFR parts 120, 121, and 123, the United States Munitions List, as 
follows:

PART 120--PURPOSE AND DEFINTIONS

0
1. The authority citation for part 120 continues to read as follows:

    Authority: 22 U.S.C. 2651a, 2752, 2753, 2776, 2778, 2779, 2779a, 
2785, 2794, 2797; E.O. 13637, 78 FR 16129, 3 CFR, 2013 Comp., p. 
223.

0
2. Amend Sec.  120.31 by revising paragraph (a) and removing and 
reserving paragraph (b) to read as follows:


Sec.  120.31  Defense article.

    (a) Defense article means, except as noted in Sec.  120.35 of this 
subchapter, any item or technical data designated in Sec.  121.1 of 
this subchapter and includes the following:
* * * * *
    (b) [Reserved]
* * * * *
0
3. Amend Sec.  120.32 by revising paragraph (a) to read as follows:


Sec.  120.32  Defense service.

    (a) Defense service means, except as noted in Sec.  120.35 of this 
subchapter:
* * * * *
0
4. Amend Sec.  120.33 by revising paragraph (a)(1) and adding note 1 to 
paragraph (a)(1) to read as follows:


Sec.  120.33  Technical data.

    (a) Technical data means for purposes of this subchapter:
    (1) Information, other than software as defined in Sec.  120.40(g), 
that is required for the design, development, production, manufacture, 
assembly, operation, repair, testing, maintenance, or modification of 
defense articles.

    Note 1 to paragraph (a)(1):  This includes information in any 
form (e.g., blueprints, drawings, photographs, plans, instructions, 
or documentation).

* * * * *
0
5. Add Sec.  120.35 to read as follows:


Sec.  120.35  Items that are excluded from the U.S. Munitions List.

    (a) Commodities, as follows:
    (1) End-items, systems, and equipment that are described only in 
USML paragraphs pursuant to Sec.  120.41(a)(1) and are subsequently 
modified by removing all properties peculiarly responsible for 
achieving or exceeding the control criteria in those USML paragraphs; 
or
    (2) [Reserved]

    Note 1 to paragraph (a): Certification of an item as 
``demilitarized'' or ``DEMIL'' by the cognizant DoD agency does not 
mean that item is no longer described on the USML.

    (b) Information, as follows:
    (1) Unclassified descriptions of a commodity or software's 
functions, or the purpose it serves, that do not convey details on how 
the functions or purpose are performed; or
    (2) Unclassified descriptions of a commodity or software's 
performance capabilities that do not convey requirements or 
specifications.
    (c) [Reserved]
0
6. Amend Sec.  120.41 by revising paragraph (b) to read as follows:


Sec.  120.41  Specially designed.

* * * * *
    (b) For purposes of this subchapter, a part, component, accessory, 
attachment, or software is not specially designed if it:
    (1) Is subject to the EAR pursuant to a commodity jurisdiction 
determination;
    (2) Is, regardless of form or fit, a fastener (e.g., screws, bolts, 
nuts, nut plates, studs, inserts, clips, rivets, pins), washer, spacer, 
insulator, grommet, bushing, spring, wire, or solder;
    (3) Has the same function, performance capabilities, and the same 
or equivalent form as a commodity or software used in or with a 
commodity that:
    (i) Was in production after leaving development; and
    (ii) Is not enumerated on the USML;
    (4) Was or is being developed with knowledge that it is or would be 
for use in or with both defense articles enumerated on the USML and 
also commodities not on the USML;
    (5) Was or is being developed as a general-purpose commodity or 
software, i.e., with no knowledge for use in or with a particular 
commodity (e.g., a F/A-18 or HMMWV) or type of commodity (e.g., an 
aircraft or machine tool);

[[Page 62367]]

    (6) [Reserved]
    (7) Was not described in Sec.  121.1 of this subchapter within the 
first year after leaving development, and is subsequently used, in the 
same or equivalent form, in or with a defense article that is described 
in a USML entry that has a catch-all control on the USML; or
    (8) Is, regardless of form or fit, a knob, tire, visible spectrum 
light bulb, light fixture, analog gauge or indicator, audio selector 
panel, nameplate, magnetic compass, rheostat, manual electrical switch, 
solenoid, circuit breaker utilizing solely thermal-magnetic overcurrent 
protection, fuse, glass preform, latch, hinge, bracket, pneumatic hose, 
or passenger seat.

    Note 1 to paragraph (b): For a defense article not to be 
specially designed on the basis of paragraph (b)(4), (5), or (7) of 
this section, documents contemporaneous with its development, in 
their totality, must establish the elements of paragraph (b)(4), 
(5), or (7). Such documents may include concept design information, 
marketing plans, declarations in patent applications, or contracts. 
Absent such documents, the commodity may not be excluded from being 
specially designed by paragraph (b)(4), (5), or (7).

    Note 2 to paragraph (b): For the purpose of paragraphs (b)(4) 
and (5) of this section, ``knowledge'' includes not only the 
positive knowledge a circumstance exists or is substantially certain 
to occur, but also an awareness of a high probability of its 
existence or future occurrence. Such awareness is inferred from 
evidence of the conscious disregard of facts known to a person and 
is also inferred from a person's willful avoidance of facts.

    Note 3 to paragraph (b): Items described in paragraph (b)(2) of 
this section may only have functions described in paragraph (b)(2). 
Thus, a flange nut (i.e., a nut integrated with a washer) would 
qualify, whereas a hose connecting bolt (i.e., a bolt with internal 
piping for fluid transfer) would not. Similarly, items described in 
paragraph (b)(8) of this section may only have functions described 
in paragraphs (b)(2) and (8). Thus, a bracket with integrated 
fasteners is eligible for paragraph (b)(8) of this section, but not 
paragraph (b)(2). For items meeting paragraph (b)(2), see also 
paragraph (b)(2) of the EAR definition for specially designed in 15 
CFR 734. Coatings and other materials described on the USML remain 
ineligible for paragraph (b) of this section when applied to items 
otherwise described in paragraph (b).

0
7. Amend Sec.  120.42 by revising paragraph (e) to read as follows:


Sec.  120.42  Form, fit, function, performance capability, equivalent 
form, enumerated, and catch-all control.

* * * * *
    (e) Equivalent form. With respect to a commodity, equivalent form 
means its form has been modified solely for fit purposes.
* * * * *
0
8. Amend Sec.  120.43 by revising paragraph (a) and (b) to read as 
follows:


Sec.  120.43  Development, production, and related terms; Basic and 
applied research.

    (a) Development is related to all product life cycle stages prior 
to full production.
    (1) This includes design, design research, design analyses, design 
concepts, assembly and testing of prototypes, pilot production schemes, 
low-rate initial production, design data, the process of transforming 
design data into a product, configuration design, integration design, 
and layouts.
    (2) Development ends once the functional design decisions, 
integration, validation, and testing activities are complete, except as 
provided in paragraph (b)(2) of this section, and the design is 
approved for full-rate production, serial production, standardized 
production, software production release, deployment to production, or 
other equivalent transfer to full production.
    (3) For articles in production, the following development 
activities do not place the article back in development: activities 
that would result only in cosmetic changes, or enhancements or 
improvements in the sustainability, reliability, or maintainability of 
the article, including those pertaining to quality improvements, cost 
reduction, or feature enhancements.
    (b) Production is related to product life cycle activities after 
completion of development and includes production-focused product 
engineering, manufacture, integration, assembly, mounting, inspection, 
testing, quality assurance, and other stages following approval for 
full production.
    (1) This includes serial production, or equivalent, when 
commodities have passed production readiness testing; have an approved, 
standardized design ready for full production; and are being or have 
been produced on an assembly line, or equivalent process, for multiple 
commodities using an approved, standardized design. If multiple 
quantities are not planned, such as custom builds, the equivalent is 
the production run for intended delivery or deployment for intended 
use. Production does not include runs to validate the manufacturing 
process.
    (2) Articles in production reenter development when they are 
subjected to development activities that would result in changes to 
their function or performance capability. Such articles reenter 
production once the criteria in paragraph (a)(2) of this section are 
met again. The original version of the article may remain in production 
while the modified version is in development.
* * * * *
0
9. Amend Sec.  120.54 by revising paragraph (a)(1) to read as follows:


Sec.  120.54  Activities that are not exports, reexports, retransfers, 
or temporary imports.

    (a) * * *
    (1) Launching a spacecraft, launch vehicle, payload, or other 
article into or beyond orbit;

PART 121--THE UNITED STATES MUNITIONS LIST

0
10. The authority citation for part 121 continues to read as follows:

    Authority: 22 U.S.C. 2752, 2778, 2797; 22 U.S.C. 2651a; Sec. 
1514, Pub. L. 105-261, 112 Stat. 2175; E.O. 13637, 78 FR 16129, 3 
CFR, 2013 Comp., p. 223.

0
11. Amend Sec.  121.1 as follows:
0
a. In Category II, revise paragraph (a)(4);
0
b. In Category VIII, remove and reserve paragraph (h)(10);
0
c. In Category X, revise paragraph (a)(7) and Note 1 to paragraph 
(a)(7); and
0
d. In Category XX, revise paragraph (c).
    The revisions and additions read as follows:


Sec.  121.1  The United States Munitions List

* * * * *

Category II--Guns and Armament

    (a) * * *
    * (4) Grenade launchers with rifled or removable barrels or tubes; 
or
* * * * *

Category X--Personal Protective Equipment

    (a) * * *
    (7) Goggles, spectacles, visors, vision blocks, canopies, or 
filters for optical sights or viewers, employing other than common 
broadband absorptive dyes or ultraviolet (UV) inhibitors as a means of 
protection that meet any of the following:
    (i) Have an optical density greater than 4 and protect against 
multiple visible laser wavelengths;
    (ii) Protect against thermal flashes associated with nuclear 
detonations, achieving an optical density greater than 3; or
    (iii) Have an optical density greater than 3 and protect against 
near infrared or ultraviolet laser wavelengths; or

    Note 1 to paragraph (a)(7):  See paragraphs (d)(2) and (3) of 
USML Category X for

[[Page 62368]]

controls on related parts, components, and materials.

* * * * *

Category XX--Submersible Vessels and Related Articles

* * * * *
    (c) Parts, components, accessories, attachments, systems, and 
equipment for articles described in paragraphs (a) and (b) of USML 
Category XX (MT for launcher mechanisms specially designed for rockets, 
space launch vehicles, or missiles capable of achieving a range greater 
than or equal to 300 km), as follows:
    * (1) Parts, components, accessories, attachments, systems, and 
equipment, including tooling and production, testing, or inspection 
equipment, specially designed for plants or facilities described in 
paragraph (b)(1) of USML Category XX (see also Sec.  120.5(c) of this 
subchapter for nuclear related controls);
    (2) Systems and equipment, including production, testing, and 
inspection equipment and tooling, specially designed for articles 
described in paragraph (a) of USML Category XX, as follows:
    (i) Habitability systems (e.g., air purification, air circulation, 
oxygen generation/supply, temperature and humidity control, or other 
life-supporting systems);
    (ii) Water treatment, distillation, or desalination systems;
    (iii) Hulls or superstructures, including support structures 
therefor;
    (iv) Steering and dive plane control systems not otherwise 
described on the USML;
    (v) Weight and balance management systems;
    (vi) Emergency and safety systems;
    (vii) Communications and identification systems not otherwise 
described on the USML;
    (viii) Systems and equipment, not otherwise described, specially 
designed to function at depths exceeding 600 meters;
    (ix) Armaments and weapon delivery systems, not otherwise described 
on the USML (MT for launcher mechanisms specially designed for rockets, 
space launch vehicles, or missiles capable of achieving a range greater 
than or equal to 300 km);
    (x) Power generation, distribution, and storage systems; or
    (xi) Hydraulic and pneumatic systems.
    (3) Parts, components, accessories, and attachments specially 
designed for articles described in paragraphs (b)(2) or (c)(2) of USML 
Category XX.
* * * * *

PART 123--LICENSES FOR THE EXPORT AND TEMPORARY IMPORT OF DEFENSE 
ARTICLES

0
12. The authority citation for part 123 continues to read as follows:

    Authority: Secs. 2, 38, and 71, Pub. L. 90-629, 90 Stat. 744 (22 
U.S.C. 2752, 2778, 2797); 22 U.S.C. 2753; 22 U.S.C. 2651a; 22 U.S.C. 
2776; Pub. L. 105-261, 112 Stat. 1920; Sec. 1205(a), Pub. L. 107-
228; Sec. 520, Pub. L. 112-55; Section 1261, Pub. L. 112-239; E.O. 
13637, 78 FR 16129.

0
13. Add Sec.  123.26 to read as follows:


Sec.  123.26  Temporary export for servicing or repair of foreign 
defense articles.

    Exemption for temporary export. A license is not required for the 
temporary export of an unclassified foreign defense article when the 
export is solely for the purpose of servicing, inspecting, testing, 
calibrating, repairing, overhauling, upgrading, reconditioning, or one-
to-one replacement of a defective item by the original equipment 
manufacturer (OEM) or its authorized service provider.
* * * * *

Thomas G. DiNanno,
Under Secretary for Arms Control and International Security, Department 
of State.
[FR Doc. 2026-20079 Filed 9-30-26; 8:45 am]
BILLING CODE 4710-25-P


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