A Federal Register notice published on Wednesday announced that the U.S. State Department has proposed to amend the International Traffic in Arms Regulations (ITAR). Their plan is to "update policies regarding end-user employment of dual nationals and third-country nationals," according to an American Shipper article. The article went on to explain:
President Obama’s Task Force on Export Control Reform warned that the current requirement for the provision of additional information within a license to cover dual national and third-country national foreign employees has 'created a tremendous administrative burden on approved end-users and has evolved into a human rights issue, which has become a focus of contention between the U.S. and allies and friends without a commensurate gain in national security.'
The State Department feels that most violations involving items on the U.S. Munitions List (USML) occur outside the scope of approved licenses rather than within foreign organizations. The proposed amendment would place responsibility on the foreign company, government, or international organization because they will operate with the understanding that, by accepting a USML item, they must comply with US laws and regulations to prevent the "diversion" of U.S. defense articles and technology. According to the State Department,
This change, by no means, reduces the due diligence requirements of the applicant to ensure, to the best of their ability, that the end-use and end-user are consistent with the approved authorization.
Comments regarding the proposed rule are due to the State Department by September 10th. My advice to exporters? Check out End-Use Manager and ensure export compliance across your organization. Better safe than sorry!