DDTC Issues Final Rule Amending the ITAR

The United States Department of State’s Directorate of Defense Trade Controls (DDTC) issued a final rule on July 7, 2025 that immediately amended the International Traffic in Arms Regulations (ITAR).

Notably, the final rule made amendments to:

1. Update seven ITAR § 126.1 country entries
2. Update the definitions of “North Atlantic Treaty Organization,” (NATO) “major non-NATO allies,” and “Wassenaar Arrangement” in ITAR § 120.23, and
3. Implement other corrections and clarifications within the ITAR.

Companies are encouraged to review their export control compliance plans, policies, and procedures to determine if any updates are required as a result of the amendments to the ITAR.

In this alert, we provide a concise overview of the updates and key implications for businesses.

Overview of non-substantive ITAR amendments to ITAR § 126.1 and ITAR § 120.54

The final rule made the following non-substantive amendments to ITAR § 126.1 and ITAR § 120.54:

1. Restructured ITAR § 126.1(a) to clarify the applicability of exemptions for defense articles or defense services originating in or destined for any proscribed country, area, or persons. The clarifying amendments did not make any substantive changes to the circumstances under which such exemptions can be used. The table of ITAR § 126.1(d)(2) proscribed countries was amended by inverting the entries for Ethiopia and Eritrea to correct alphabetical order and reinserting an entry for Cambodia, which a previous rulemaking had inadvertently omitted.
2. Removed the duplicative reference to the Russian Federation in ITAR § 120.54(a)(5)(iv) and (v). Previously, ITAR § 120.54(a)(5)(iv) and (v) specified the Russian Federation separately from the reference to ITAR § 126.1 countries. However, as the Russian Federation was added to ITAR § 126.1 in 2021, the separate references became duplicative.
3. Amended Note 1 to ITAR § 120.54(a)(5)(iv) to clarify that data in transit via the internet is not deemed to be stored in a country it passes through.

Substantive amendments to ITAR § 126.1

The final rule made the following substantive updates to seven country entries in ITAR § 126.1:

Democratic Republic of the Congo (DRC): ITAR § 126.1(i) was amended to remove the requirement to notify the United Nations (UN) DRC Sanctions Committee in advance of exports of:

1. Defense articles and defense services to the Government of the DRC
2. Non-lethal equipment intended solely for humanitarian or protective use, and related technical assistance and training.

Haiti: ITAR § 126.1(j) was amended to allow DDTC to issue, on a case-by-case, basis, an authorization for:

1. Defense articles and defense services to or by the UN, a UN-authorized mission, or a security unit that operates under the command of the Government of Haiti
2. Other defense articles and defense services as approved in advance by the relevant UN Security Council committee concerned with Haiti, or
3. Non-lethal defense articles intended solely for humanitarian or protective use, and related defense services.

Libya: ITAR § 126.1(k) was amended to allow a case-by-case basis review of exports or imports of the following in certain circumstances:

1. Protective clothing
2. Defense services to Libyan security forces, and
3. Military aircraft and/or naval vessels temporarily exported by the United States Government into the territory of Libya.

Somalia: ITAR § 126.1(m) was amended to allow for the case-by-case review and approval of defense articles and defense services to the Government of the Federal Republic of Somalia, the Somali National Army, the Somali National Intelligence and Security Agency, the Somali National Police Force, and the Somali Custodial Corps. In addition, the final rule amended ITAR § 126.1(m) to clarify other scenarios where the same case-by-case review and approval of defense articles and services can occur. For example, the review can occur for private security contractors taking protective clothing to Somalia and vessels carrying defense articles for defensive purposes.

Central African Republic (CAR): ITAR § 126.1(u) was amended to reflect the 2024 modification of the UN arms embargo, which maintains a prohibition against the export or import of defense articles and defense services destined for or originating from armed groups and associated individuals operating within the CAR.

South Sudan: ITAR § 126.1(w) was amended to reflect the renewed UN arms embargo and related exceptions for which DDTC may issue licenses on a case-by-case basis.

Sudan: ITAR § 126.1(v) was amended to implement the renewed UN arms embargo by removing the previously specified case-by-case review of licenses or other approvals involving assistance and supplies provided in support of the implementation of the Comprehensive Peace Agreement.

Updates to the definition of NATO, major non-NATO allies, and the Wassenaar Arrangement

The final rule amended the definition of “NATO” in ITAR § 120.23(a) to:

1. Reflect that Finland and Sweden are now member states of NATO, and
2. Update “Czech Republic” to “Czechia.”

The final rule amended the definition of “major non-NATO ally” in ITAR § 120.23(b) to:

1. Add Colombia, Kenya, and Qatar to the list of countries designated as major non-NATO allies, and
2. Remove Afghanistan.

ITAR § 120.23(c) was also revised to change “Czech Republic” to “Czechia” in the list of countries that are members of the Wassenaar Arrangement.

The addition of Finland and Sweden to the ITAR definition of NATO does not result in practical changes in exemption use or congressional notification thresholds. This is because the definition already includes “any state not included here that has deposited an instrument of accession in accordance with Article 10 of the North Atlantic Treaty.” Thus, even though Finland and Sweden were not specifically listed in ITAR § 120.23(a) prior to July 7, 2025, both countries were treated as NATO members with regard to exemption use and congressional notification requirements upon formally joining.

In contrast, the addition of Colombia, Kenya, and Qatar as major non-NATO allies has a practical impact. Specifically, as a result of the amendment, DDTC is no longer required to apply the special export controls described in ITAR § 124.15 for exports of defense articles and defense services relating to space systems and space launches in or by nationals of Colombia, Kenya, and Qatar – though DDTC retains the discretion to apply such special controls.

Conclusion

The final rule reflects DDTC’s continued efforts to align the ITAR country policies with evolving international developments, including specific designations by the United States, such as major non-NATO ally status changes, and multilateral actions like the addition of countries to NATO and UN Security Council resolutions.

Companies are encouraged to monitor how the country policy changes – along with the other corrections and clarifications implemented by DDTC – may affect business activities and general compliance procedures.

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