On September 8, 2016, the Department of State published in the Federal Register a final rule [Public Notice: 9672] amending the International Traffic in Arms Regulations (ITAR) by revising the definition of “retransfer” and making other clarifying revisions based on comments received to the interim final rule published on June 3, 2016 (81 Fed. Reg. 35611) that revised key definitions, created several new definitions, and revised related provisions, as part of the President’s Export Control Reform (ECR) initiative.

The final rule makes the following changes to the ITAR:

  • revisions to the definition of “retransfer” in §120.51 to clarify that temporary  transfers to third parties and releases to same-country foreign persons are within the scope of the definitions;
  • addition of a new paragraph (f) in §125.1 to mirror the new sections of the ITAR in §§ 123.28 and 124.1(e) detailing the scope of licenses;
  • revising §126.16(a)(1)(iii) and §126.17(a)(1)(iii) to reflect the definitions of reexport and retransfer in the Defense Trade Cooperation Treaties with Australia and the United Kingdom, respectively, and to make appropriate revisions to the definitions of reexport in §120.19 and retransfer in §120.51 to reflect that these definitions do not apply in the treaty context;
  • revisions to §126.18(d)(1) to clarify that the provisions include all foreign persons who meet the definition of regular employee in §120.39; and
  • revisions to §130.2 to ensure that the scope of the Part 130 requirements does not change due to the revised and new definitions.