State Dept. Regulatory Agenda Mentions Rules to Revise USML, Finalize ITAR Telework Rule

The State Department published its fall 2022 regulatory agenda, including planned publication dates for rules to amend the U.S. Munitions List, revise defense trade regulations surrounding the definition of a “regular employee” and expand the types of defense articles and services that can be exported to certain close U.S. allies.

The agency continued to mention several rules that will revise the USML, including one notice of proposed rulemaking that would amend the International Traffic in Arms Regulations by updating certain controls around “circuit boards and semiconductors.” The rule would specifically propose changes to “paragraphs (c)(1) through (4) of Category XI” of the USML, which covers military electronics, ​​to “describe more precisely the articles warranting control on the USML.” The State Department plans to issue the rule in September.

The agenda also continued to mention an interim final rule to amend USML Category XVI, which covers nuclear weapons related articles, to “better harmonize” the controls with the Energy Department’s regulations. The rule would “ensure that all items that provide the United States with a critical military or intelligence advantage are listed on the United States Munitions List and remain subject to U.S. Government export controls at all times.” The agency hopes to issue the rule in July.

Another interim final rule, expected in February, would look to exclude entries from the USML that no longer warrant inclusion and add items to the list that qualify as critical and emerging technologies. The agency also had planned to issue a notice of inquiry in December to seek public comment on the “technology frontier.” This notice would seek feedback on “specific technology capabilities that have sufficiently evolved” to warrant the State Department amending the ITAR “to revise and exclude entries on the U.S. Munitions List (USML) that no longer warrant inclusion and to add entries for critical and emerging technologies that do.”

The agency also continued to mention a final rule that would amend the ITAR’s definition of regular employee to allow certain people working with ITAR-controlled items to work remotely. The rule, expected in July, would also “clarify the contractual relationships that meet the definition of regular employee,” the State Department said. The agency in 2021 proposed to make permanent the COVID-19 pandemic-era change that has allowed certain workers to more easily work remotely (see 2105260008).

The agenda also continued to mention a final rule that will expand the types of defense items and services that can be sent to Australia, the U.K. and Canada. The rule would amend the ITAR to expand certain trade under existing defense trade treaties between the countries, and would also amend the Canadian exemptions. Other changes will make “clarifying amendments and conforming updates” to Supplement No. 1 to part 126 of the ITAR, specifically to U.S. Munitions List Categories IV(i), manufacturing know-how, and Category XII, night vision entries. The agency hopes to issue the rule this month.

The agenda includes one new mention of a final rule to adjust its civil monetary penalties for inflation. The agency expects to issue the rule this month.

Highlights of the State Department's trade-related rulemakings that are at the proposed, final or completed stages are below. New items are marked with an asterisk (*).