Department of State Proposes Slate of Revisions to the ITAR and U.S. Munitions List and Removes Syria From Policy of Denial

The U.S. Department of State published two rules — one proposed and one final — that revise the International Traffic in Arms Regulations (ITAR) and its associated U.S. Munitions List (USML). The proposed rule would remove certain items from the USML, revise several foundational ITAR definitions, and add new jurisdictional exclusions and a licensing exemption. Comments are due on November 30, 2026. The final rule, effective October 1, 2026, removes Syria from the list of countries subject to a policy of denial under ITAR Section 126.1, meaning requests for licenses or other approvals to export or import defense articles and services destined for or originating in Syria will henceforth be adjudicated on a case-by-case basis.

The Proposed Rule: A Narrower USML and Sharper Definitions

The Arms Export Control Act, the legislation from which the ITAR is derived, requires periodic reassessments of the USML to ensure that only defense articles and services that provide a critical military or intelligence advantage are captured. As part of that mandate, the Department of State proposes removing and narrowing items in the following USML categories:

• Category II(a)(4): Smooth-bore, fixed-barrel canister launchers would come off the USML, while grenade launchers with rifled or removable barrels would stay.
• Category VIII(h)(10): Most radar altimeters would be removed through the deletion of paragraph VIII(h)(10).
• Category X(a)(7): The controls on certain protective eyewear and optical filters in paragraph X(a)(7) would be narrowed through optical density thresholds tied to specified laser and nuclear-flash protection.
• Category XX(c): The sweeping catch-all in paragraph XX(c) for parts and components of military submersibles would be replaced with enumerated categories of controlled items, significantly narrowing the scope of controls implemented by the paragraph. Examples of such enumerated categories of items include habitability systems, hulls, power systems, and systems designed for operation below 600 meters.

The proposed rule also revises several fundamental ITAR definitions.

Specially Designed. The rule proposes to revise the definition of “specially designed” by adding paragraphs (b)(7) and (b)(8). New paragraph (b)(7) would stop a component from being swept into a USML catch-all merely because it was later used, in the same or equivalent form, in a defense article with a catch-all entry. This would only apply if the component itself was not described on the USML within a year after leaving development. The new exclusion is intended to ensure that the ITAR does not inadvertently capture articles that were designed and produced for defense articles without a catch-all control just because they are later used in defense articles that do have a catch-all control. Notably, as with current (b)(4) and (b)(5) carve-outs, an item may only qualify for (b)(7) if documents contemporaneous with the item’s development can be produced that establish the required facts. New paragraph (b)(8) would add a list of basic commodities, including knobs, tires, fuses, latches, hinges, brackets, and passenger seats, that are excluded from USML catch-all paragraphs. 

Development and Production. The rule revises the definitions of “development” and “production” to provide greater clarity on the scope of those phases in a product’s lifecycle. The rule clarifies that development ends when the design is approved for full-rate production or its equivalent. It also clarifies that cosmetic changes and routine enhancements to sustainability, reliability, maintainability, quality improvements, cost reductions, and feature enhancements do not restart the development cycle for items in production, but changes to function or performance capability would. These timing questions are important components of “specially designed” analyses and outcomes.

Additionally, the proposed rule introduces new jurisdictional exclusions and a licensing exemption. New Section 120.35 would describe specific circumstances in which, following demilitarization, certain commodities would no longer be described in a USML paragraph that uses the term “specially designed” and would thus no longer be subject to the ITAR. For example, a vehicle specially designed to launch missiles previously described in USML Category VII(b) may no longer be described in Category VII(b) and no longer subject to the ITAR after all of its weapons, mission systems, and armor have been removed such that the remaining vehicle chassis and systems are common to variants of the same vehicle that were not specially designed to launch missiles. The rule emphasizes that a Department of Defense “demilitarized” certificate does not on its own establish that an item is no longer captured by the USML.

Section 120.54 would be revised to clarify that only launches into or beyond orbit fall outside the definition of an export under the ITAR.

New Section 123.26 would create a licensing exemption, eliminating the license requirement for the temporary export of an unclassified foreign defense article solely for certain activities, such as servicing or repair by the manufacturer or its authorized service provider.

Finally, the proposed rule would restructure, revise, and relocate the exclusion in the “defense article” definition for “basic marketing information on function or purpose” and “general system descriptions” to the previously reserved Section 120.35, as new paragraphs (b)(1) and (2). The Department of State describes the changes as clarifying these terms, with no intended change in scope.

The Department of State requests comments on the revisions proposed in the rulemaking. In particular, it requests comments relating to 14 questions focusing on: changes to the USML that would affect ocular personal protective equipment and antennas, whether it should remove “software” from certain components of the “specially designed” analysis, further refining the scope and clarity of the development and production phases in a product’s lifecycle, and whether any additional items should be added to or removed from the USML. 

The Final Rule: Syria Removed From the Section 126.1 Policy of Denial

On August 19, 2026, the Secretary of State approved a new defense trade policy for Syria permitting case-by-case review of defense article and defense service transfer authorization requests. The final rule implements that decision by removing the reference to Syria in Section 126.1.

This final rule builds on other relief the U.S. government has offered to Syria since May 2025. We discussed these other relief measures in our June 2025 and July 2025 advisories.

Practical Takeaways

Businesses that deal in ITAR-controlled defense articles and services should carefully review the proposed USML revisions and the new Section 120.41(b)(7) and (b)(8) carve-outs to confirm which classifications may change. Those that engage in product development should also make sure to preserve development records, since several carve-outs, including the new (b)(7), depend on them. Companies — and particularly those affected by the Category X, Category XX, or “specially designed” changes (including the possible removal of “software” from portions of the “specially designed” analysis) — should consider submitting comments by November 30, 2026. With respect to Syria, a policy of a case-by-case review is not the same as a policy of approval. While the U.S. government has relaxed certain restrictions applicable to Syria, ITAR-controlled transactions involving Syria remain license-dependent and will be evaluated by the U.S. government on their individual facts and circumstances.

Arnold & Porter will continue to monitor developments in this area. For help submitting comments or questions about the proposed rule, the Syria change, or other national security and trade matters, please contact the authors of this Advisory or any of their colleagues in Arnold & Porter’s National Security & Defense or International Trade practice groups.

© Arnold & Porter Kaye Scholer LLP 2026 All Rights Reserved. This Advisory is intended to be a general summary of the law and does not constitute legal advice. You should consult with counsel to determine applicable legal requirements in a specific fact situation.