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ARTICLE · 05 DECEMBER 2019

Department Of State Proposes Amending ITAR Definitions, Creating Encryption Carve-Out

The export community has anticipated a harmonization of the ITAR with the EAR encryption rule.

GlobalGovernment, Public Sector

In a recently published Notice of Proposed Rulemaking,1 the Department of State proposes an amendment to the International Traffic in Arms Regulations ("ITAR") provisions defining activities that are not exports, re-exports, or retransfers. Such activities that will not be exports, re-exports, or retransfers under the proposed definition include (1) launching items into space, (2) providing technical data to U.S. persons within the United States or within a single country abroad, and (3) moving defense articles between U.S. states, possessions, and territories. Importantly, the proposed revisions will allow for the electronic storage and transmission of unclassified technical data through foreign communications infrastructure without requiring ITAR licensing when the technical data is sufficiently secured to prevent access by foreign persons. The proposed amendments also include the creation of a definition for "access information" and the revision of the "release"

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