Suspensions, satellite parts and underwater vehicles

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1. The power to suspend or modify

The International Traffic in Arms Regulations (ITAR) contain a power to change their own effect quickly. Under section 126.2, the Deputy Assistant Secretary for Defense Trade Controls can suspend or change any part of the regulations for a time, where American security and foreign policy call for it (22 CFR 126.2). A separate power lets the same official make an exception in a case of exceptional or undue hardship, or where it is otherwise in the government’s interest (22 CFR 126.3).

The temporary power has been used on Category XI(b) since 2015 (91 FR 55461). A rule effective 30 August 2026 extends a temporary modification of Category XI(b) for two more years, to 30 August 2028 (91 FR 55461). The State Department explained that exporters could read the 2014 revision of that paragraph to exclude certain intelligence analytics software that remained controlled. The modification keeps the scope of control that existed before 30 December 2014 for paragraph (b) and related software in paragraph (d) (91 FR 55461). It does so by reinserting the words "analyze and produce information from" and by adding software to the items described (91 FR 55461). The extension runs while the State Department and other agencies continue the Munitions List reviews required by 22 U.S.C. 2778(f), and every three years by section 1345 of the defense authorization act for fiscal year 2024. The category is covered in USML Category XI: sonar, radar and electronic warfare.

2. A licensing regime for satellite parts

Section 123.27 sets up a special regime for commercial communications satellite components (22 CFR 123.27(a)). It is open to registered American persons in the business of exporting specifically designed or modified components, systems, parts, accessories, attachments, associated equipment and certain associated technical data for those satellites. They may apply for licenses covering multiple permanent and temporary exports and temporary imports, for expeditious consideration. They need not first meet the usual documentary requirements for purchase orders, letters of intent, contracts and nontransfer and end use certificates. Nor need they first meet the documentary requirements for approval of reexports and retransfers under section 123.9.

3. Six conditions

The regime applies only if six requirements are all met. The exports or reexports must concern only member countries of the North Atlantic Treaty Organization or designated major non-NATO allies (22 CFR 123.27(a)(1)). They must concern only foreign companies or governments in those countries, and satellite programs, on a government-approved list published on the Directorate of Defense Trade Controls (DDTC) website (22 CFR 123.27(a)(2)).

Large contracts are excluded (22 CFR 123.27(a)(3)). The regime does not cover major defense equipment on a contract worth $14 million or more, nor defense articles or services on a contract worth $50 million or more. Exporters may not split contracts or purchase orders to get under those limits. Items at or above them need a separate license application, so that Congress can be notified under section 36(c) of the Arms Export Control Act. Detailed design, development, manufacturing or production data is also excluded, as is anything involving manufacture abroad of significant military equipment (22 CFR 123.27(a)(4)).

The exporter reports each shipment to DDTC within 15 days (22 CFR 123.27(a)(5)). The report describes the item and gives its quantity, value, port of exit, end user and country of destination. At that point the exporter also meets the documentary requirements that were deferred, and any others a license imposes, such as parts control plans for items controlled under the Missile Technology Control Regime. Any retransfer outside the approved territory, programs or persons needs DDTC’s prior written consent under section 123.9 (22 CFR 123.27(a)(6)). The regulation’s example is a part built into a satellite to be launched beyond the approved territory.

4. Reexports and additions

Reexports and retransfers of the licensed articles, including to specified reexport destinations, need no separate prior written approval if all the requirements are met (22 CFR 123.27(b)). DDTC will consider, case by case, adding companies and programs from members of the European Space Agency or the European Union not otherwise covered (22 CFR 123.27(c)). The regime can never be used for countries subject to section 1514 of the Strom Thurmond National Defense Authorization Act for Fiscal Year 1999, on national security controls for satellite export licensing. Registered exporters may also ask, when they apply, for more foreign persons or programs to be added to the public lists (22 CFR 123.27(d)). Reexport approvals in general are covered in reexports, retransfers and end use assurances.

5. An exemption for large underwater vehicles

Paragraphs (a) through (t) of section 126.9 are reserved, and paragraph (u) holds an exemption for certain large unmanned underwater vehicles in Category XX(a)(10) (22 CFR 126.9(u)(1)). No license or other approval is needed for three kinds of activity involving these vessels, subject to four restrictions. The first is the temporary export, reexport or temporary import of such vessels (22 CFR 126.9(u)(1)(i)). The second is helping a foreign person maintain, repair, operate or use one (22 CFR 126.9(u)(1)(ii)). The third is brokering to facilitate the temporary export, reexport or permanent import of such a vessel, or assistance of the second kind (22 CFR 126.9(u)(1)(iii)).

Four restrictions apply (22 CFR 126.9(u)(2)). The vessel may not be described in any other Munitions List paragraph (22 CFR 126.9(u)(2)(i)). Its gross weight rating, a term defined in section 121.0, may not exceed 8,000 pounds (22 CFR 126.9(u)(2)(ii)). The activity must be limited to scientific research or natural resource exploration, commercial or civil infrastructure maintenance, installation or repair, or search and rescue (22 CFR 126.9(u)(2)(iii)). It also may not transfer registration, control or ownership of the vessel to a foreign person (22 CFR 126.9(u)(2)(iv)). The category is covered in USML Categories VI and XX: naval vessels.

Key terms

Temporary modification	A time-limited change to the regulations ordered under section 126.2.
Expeditious consideration	Faster review for qualifying satellite component license applications.
Approved program list	The public list of foreign persons and satellite programs the regime covers.
Shipment report	The report due to DDTC within 15 days of each satellite regime shipment.
Gross weight rating	The defined weight measure, which must not exceed 8,000 pounds for the exemption.

Every statement above links to the document behind it. The full source list for this piece is on the sources page.

This page describes public United States government programs for general information. It is not legal, regulatory or procurement advice, and it does not address the facts of any particular case.

How Sentfore supports this

Specialist equipment still needs secure handling between licensed parties. Sentfore works at the delivery end of defense programs in difficult environments, providing secure movement, protective security, facilities and life support. Requirements can be sent through the contact page.