New ITAR Exemption: Dual Nationals and Third-Country Nationals Employed by End-Users

The US Department of State has amended the International Traffic in Arms Regulations (ITAR) to create a new exemption for intra-company transfers that involve dual or third-country nationals.

This is in response to last year’s proposed rule to eliminate the separate licensing requirement for dual national and third-country nationals employed by licensed end-users. The comments in response to that rule cited conflicts with foreign human rights laws and an unnecessary administrative burden. The proposed rule is therefore being implemented with minor modifications.

Per the Federal Register notice, “Prior to making transfers to certain dual national and third-country national employees under this policy, approved end-users must screen employees, make an affirmative decision to allow access, and maintain records of screening procedures to prevent diversion of ITAR-controlled technology for purposes other than those authorized by the applicable export license or other authorization.”

The rule is effective August 15, 2011.

Full text of the Federal Register notice is available here

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