DDTC Considering Making ITAR Telework Exception Permanent

The State Department’s Directorate of Defense Trade Controls is considering permanently revising the International Traffic in Arms Regulations to allow industry employees involved in ITAR-related activities to work remotely, DDTC said in a notice released July 28. DDTC also said that in response to industry requests it will extend temporary telework measures, which had been set to expire July 31, through Dec. 31 (see 2007230033). The agency said it will use that time to “fully investigate the possibility and ramifications of making this modification, or a variation thereof, a permanent revision,” and may seek comments on the change.

DDTC said the extension will “provide regulated entities with staffing flexibilities” during the COVID-19 pandemic. “It is apparent to DDTC that regulated entities will continue to engage in social distancing measures for the foreseeable future,” the notice said. “A failure to extend these temporary suspensions, modifications, and exceptions will have a negative impact on regulated entities’ ability to safely engage in continued operations.” The measure also applies to remote work under technical assistance agreements and manufacturing agreements.

Although DDTC extended the telework measure, it did not renew other actions announced in April to mitigate the pandemic's impact on industry (see 2004240017). DDTC specifically did not renew an exception related to annual registration fees because it “did not receive any request from industry” to do so. Some companies said an extension would be “unnecessary,” DDTC said.

The agency also did not renew the temporary suspensions, modifications and exceptions on limits of durations of ITAR licenses and agreements. Three commenters asked for an extension, but DDTC said it “is not accepting those requests.” The agency said “continued extensions to all existing authorizations is an overbroad response to the current situation,” adding that industry has had “several months” to adjust to the pandemic.

DDTC also rejected requests to take “additional measures” to help industry, saying the proposed measures “would involve major infrastructure revisions to DDTC automated systems and are therefore not feasible.” Other suggestions “involved matters of internal policy and practice and not regulatory matters.”