State Dept Proposes Overhaul of U.S. Munitions List and Exemptions
Published Date: 10/1/2026
Proposed Rule
Summary
The U.S. Department of State wants to update the rules that control the export of military gear and tech to focus only on the most sensitive stuff. They’re making the list clearer, removing some items, and adding new ways to skip licenses for certain exports. If you deal with defense exports, get ready to review these changes and send your thoughts by November 30, 2026!
Analyzed Economic Effects
8 provisions identified: 7 benefits, 0 costs, 1 mixed.
Narrowing USML; transfers to EAR
The Department proposes to remove certain items from the U.S. Munitions List (USML) and transfer them to the Commerce Control List under the Export Administration Regulations (EAR). The rule says this shift focuses ITAR controls on the most sensitive technologies and is intended to reduce regulatory burdens and increase clarity for exporters.
Temporary export exemption to OEMs
The Department proposes a new exemption at ITAR Sec. 123.26 to allow the temporary export of a foreign defense article from the United States to its original equipment manufacturer (OEM) or an authorized service provider for servicing or repair without an ITAR export license when specific conditions are met. The exemption applies to unclassified articles and is intended to reduce unnecessary licensing burdens for servicing and repair activities.
Most radar altimeters removed
The Department proposes to remove and reserve USML Category VIII(h)(10), which would remove most radar altimeters from the USML based on the assessment they no longer provide a critical military or intelligence advantage. Affected radar altimeter items would move out of ITAR control.
Tighter 'specially designed' carve-outs
The Department proposes changes to the ITAR 'specially designed' definition (Sec. 120.41) that add exclusions: (b)(7) excludes items that were not described on the USML within the first year after leaving development even if later reused in a defense article, and (b)(8) explicitly excludes basic commodities (e.g., fasteners, washers, springs, wires, solder, knobs, tires, light bulbs, manual switches, fuses, brackets, passenger seats) from catch-all USML controls. The Department says these exclusions are intended to promote U.S. industry participation in international supply chains.
Redefining development and production phases
The Department proposes revisions to Sec. 120.43 to clarify when 'development' ends and 'production' begins, including that development ends once design decisions, validation, and testing are complete and the design is approved for full production. The rule also states routine improvements, cosmetic changes, or sustainment activities do not restart development.
Canister launchers removed from USML
The Department proposes to narrow USML Category II(a)(4) by removing smooth-bore, fixed-barrel canister launchers from the USML while keeping grenade launchers with rifled or removable barrels. The Department says these less-lethal, less-precise canister launchers no longer provide a critical military or intelligence advantage.
Eyewear controls tied to optical density
The Department proposes to revise USML Category X(a)(7) to control only goggles, spectacles, visors, vision blocks, canopies, or filters for optical sights or viewers that meet specified optical density thresholds: optical density greater than 4 against multiple visible laser wavelengths; optical density greater than 3 for protection against thermal flashes from nuclear detonations; or optical density greater than 3 and protection against near infrared or ultraviolet laser wavelengths. The Department requests public comment on further refining paragraph (a)(7).
Clarifies space launch export rule
The Department proposes to clarify Sec. 120.54(a)(1) to state that launching a spacecraft, launch vehicle, payload, or other article into or beyond orbit does not constitute an export, reexport, retransfer, or temporary import under the ITAR. The change defines the criterion as 'into or beyond orbit' to remove ambiguity about which launches are covered.
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