On Friday, September 18, 2026, the U.S. Department of State issued two rules amending the International Traffic in Arms Regulations (ITAR). The first, an interim final rule effective October 19, narrows U.S. Munitions List (USML) Category XX(a) controls on certain uncrewed underwater vehicles. The second, a final rule effective immediately, clarifies policy-of-denial provisions, updates country policies for Ethiopia and Somalia, and adds Saudi Arabia and Peru to the list of major non-NATO allies.

1. USML Category XX(a)

The interim final rule removes certain uncrewed underwater vehicles (UUVs) from the ITAR and makes conforming changes to related controls. The Department is also soliciting comments on further refinements to ITAR controls on UUVs and possible enhancements to related license exemptions. Comments are due on October 19, 2026.

USML Category XX(a)(10) currently describes certain vessels exceeding 3,000 pounds gross weight that are designed to operate without human interaction for extended durations or distances. With the concurrence of the Department of Defense, the Department now assesses that such vessels with a gross weight rating of up to 8,000 pounds provide a critical military or intelligence advantage only when described elsewhere on the USML or specially designed to possess navigation capabilities beyond basic waypoint following, station-keeping, and collision avoidance.

The rule revises paragraph (a)(10) to:

• Continue describing vessels at or under 8,000 pounds only if specially designed to possess such navigation capabilities, and
• Add a new paragraph (a)(11) covering vessels with a gross weight rating exceeding 8,000 pounds specially designed to operate without human interaction for longer than 24 hours or for more than 70 nautical miles.

Vessels removed from USML Category XX(a)(10) that are not described elsewhere on the USML will become subject to the Export Administration Regulations (EAR). The Department also notes its intent to review ITAR controls on autonomous capabilities, including maritime navigation systems described in USML Category VI.

• Updates to Country Policies

The second is a final rule that was effective when published on September 18. It clarifies certain policy-of-denial provisions, updates country policies for Ethiopia and Somalia, adds Saudi Arabia and Peru to the list of major non-NATO allies, and makes other miscellaneous corrections.

Clarifying Policy of Denial-Related Prohibitions

The final rule makes clarifying amendments to ensure that the scope of these prohibitions is consistently stated across the ITAR’s exemption provisions.

• The rule modifies § 126.1(a) to specify that its prohibitions apply to exports, reexports, retransfers, and temporary imports of defense articles and defense services destined for, or originating in, certain countries, and to clarify that brokering-related prohibitions are set forth in § 129.7.
• Conforming revisions to §§ 120.15(c) and 123.16 similarly clarify that the prohibitions and exemption limitations extend to exports, reexports, retransfers, and temporary imports involving proscribed destinations identified in § 126.1.

Ethiopia and Somalia

• The rule removes the entry for Ethiopia in § 126.1(n), implementing a February 2026 policy determination by the Secretary of State terminating the policy of denial for defense exports destined to Ethiopian security forces.
• The rule revises the entry for Somalia to clarify the exclusion from the policy of denial. Case-by-case review may authorize the supply of weapons, ammunition, or military equipment intended solely for the support of certain authorized forces and activities, including those of the European Union (EU), Turkey, the United Kingdom, the United States, and other United Nations (UN) Member States with a status of forces agreement or memorandum of understanding with the Federal Republic of Somalia, provided they inform the relevant UN Security Council committee of such agreements.

Saudi Arabia and Peru

• The list of “major non-NATO allies” (MNNA) in § 120.23 is revised to add Saudi Arabia and Peru.
• The updated list of MNNAs in § 120.23 now includes 21 designated countries, with Taiwan treated as though it were so designated.

MNNA status carries practical significance under the ITAR, including eligibility for defense cooperation agreements and preferential treatment in U.S. defense export licensing.

Separately, the rule corrects the Canadian exemptions at § 126.5(b) and (d) to remove requirements to obtain Nontransfer and Use Certificates (Form DSP-83) that contradicted § 123.10. Defense exporters trading with Canada should review their compliance procedures in light of these corrections.

Crowell & Moring will continue to monitor these and other regulatory developments affecting the ITAR and U.S. defense trade controls.