Recently, the U.S. Department of State, Directorate of Defense Trade Controls (“DDTC”) published several proposed changes to the International Traffic in Arms Regulations (“ITAR”) that would redefine the scope of activities controlled as defense services. DDTC is accepting comments on this proposed rule until June 13, 2011. The changes were proposed after DDTC reviewed the treatment of defense services “with a view to enhancing support to allies and friends, improving efficiency in licensing, and reducing unintended consequences.” That review found that the current definition of defense services was “overly broad” and captured “certain forms of assistance or services that do not warrant ITAR control.” In some respects, the proposed changes narrow the scope of defense services, though a lack of clarity on certain points may cause unexpected questions and compliance risks. In other respects, however, the proposed new definition appears to expand the scope of defense services, in some cases without sufficiently clear boundaries. To view a summary of the proposed changes and possible implications, please
click here.