Recent ITAR Amendments Expand the U.S. Munitions List and Indicate Further Expansion

The U.S. Department of State’s Directorate of Defense Trade Controls (DDTC) has finalized a significant set of amendments to the International Traffic in Arms Regulations (ITAR), effective September 15, 2025, which expand the U.S. Munitions List (USML) and introduce new definitions and a licensing exemption. These changes mark the first time in years that DDTC has expanded the USML’s coverage more than it has reduced it. The final rule amends 15 of the 21 USML categories, representing a substantial increase in the number of controlled items.

The rule also establishes new tools and frameworks for future regulation, signaling a time of renewed ITAR expansion and modernization following the post–Export Control Reform period.

Key Amendments

1. Broad USML Revisions

The final rule adds more items to the USML than it removes, expanding coverage across multiple categories. DDTC’s revisions include:

• Addition of newer technologies such as advanced sensors, propulsion systems, and unmanned underwater vehicles (UUVs).
• Removal of some outdated or overlapping items, primarily where the Export Administration Regulations (EAR) already provide sufficient coverage.
• Reclassification of certain technologies that previously fit Category XXI “catch-all” controls into explicit USML categories.

These revisions reflect DDTC’s growing use of Category XXI as a stopgap mechanism to temporarily control unclassified items pending formal inclusion on the USML.

2. New USML Definitions and Structural Modernization

As part of its ongoing effort to modernize the USML, DDTC has started relocating USML-specific definitions to a dedicated section within ITAR Section 121.0, while keeping general ITAR-wide definitions in Part 120.

• Section 121.0 currently contains eight definitions, including critical new terms such as “foreign advanced military aircraft” and “gross weight rating.”
• Over time, Section 121.0 will expand substantially; DDTC has already proposed adding 22 new definitions based on just two USML categories.
• This reorganization aims to clarify which definitions apply only to specific USML categories and which govern the ITAR more broadly, improving consistency, usability, and comprehension.

3. New ITAR Licensing Exemption under Section 126.9(u)

The amendments introduce a new licensing exemption for unmanned underwater vehicles (UUVs), which are now controlled under USML Category XX(a)(10).

• This exemption applies to certain dual-use activities such as scientific research or natural resource exploration involving UUVs weighing no more than 8,000 pounds.
• DDTC recognized that these systems, while militarily significant, also have legitimate civilian applications, and thus provided a regulatory pathway for controlled, low-risk use.
• The new exemption is part of a broader regulatory framework expected to grow in the future. DDTC reserved the earlier paragraphs (a)–(t) in that section for additional exemptions, strongly suggesting a systematic plan to create more targeted exemptions over time.

Regulatory Insights and Themes

The 2025 amendments reveal several important trends shaping DDTC’s regulatory philosophy:

The ITAR is Entering a Renewed Expansion Phase

DDTC’s additions significantly outnumber removals, reversing a decade-long contraction trend that followed the Export Control Reform initiative. Proposed rules for the coming year also indicate further expansion of USML coverage, including an effort to broaden the definition of “defense services.”

Category XXI is Gaining Renewed Importance

Historically used sparingly as a temporary control mechanism, Category XXI is now a central tool in DDTC’s regulatory model. Several of the new USML entries trace their origins to temporary Category XXI determinations, including certain UUVs, explosives-related materials, and engine components.

A New Framework for Dual-use Regulation is Emerging

The introduction of ITAR Section 126.9(u) suggests DDTC’s evolving approach to dual-use technologies. Instead of excluding dual-use items from the USML altogether, DDTC may increasingly place them under ITAR control while mitigating burdens through targeted exemptions. This approach blends new regulatory flexibility with stricter oversight of emerging technologies.

Next Steps for Regulated Parties

Given DDTC’s growing regulatory activity and expanding enforcement posture, companies subject to ITAR should take proactive steps to stay compliant:

• Reassess classification and jurisdiction for all products, technologies, services and data to determine whether updates to the USML affect existing classifications and compliance positions.
• Update compliance programs to reflect the broader scope of controlled items, including internal training on new USML definitions and licensing exemption conditions.
• Review the new ITAR Section 126.9(u) exemption if any operations involve dual-use UUVs or related systems.
• Engage in future rulemakings, as DDTC continues to solicit public feedback and appears responsive to substantive industry input.
• Monitor developments over the next year, as additional ITAR amendments are already planned, particularly in USML modernization, defense services, and licensing standardization.

The 2025 amendments underscore DDTC’s renewed focus on modernization, technology adaptation, and expanded regulation of dual-use sectors. Companies operating in aerospace, defense, maritime, and emerging technology industries should prepare for the continued evolution of ITAR requirements in 2026 and beyond.

Table 1: Removed Items and Additional Revisions

Table 2: Additional Revisions

Sources: Holland & Knight, K & L Gates, Federal Register, and Directorate of Defense Trade Controls

Preparing for Ongoing Regulatory Change

As ITAR requirements continue to evolve, companies should stay attentive to how these changes affect classification, registration, training, and broader compliance obligations. A proactive approach helps organizations navigate new definitions, revised controls, and expanding regulatory expectations that shape day-to-day operations. Redstone GCI supports government contractors with ITAR registration guidance, export control classification, compliance program development, and training on ITAR and EAR requirements, providing clarity and support as organizations adjust to ongoing regulatory change.