Proposed ITAR Brokering Rules Signal Expanded Coverage

Summary: The International Traffic in Arms Regulations (ITAR) regulate not only the export of defense articles and services, but also “brokering.” As part of the effort to revise and update US export controls, the Directorate of Defense Trade Controls (DDTC) has proposed to extend the regulatory reach of the brokering rules to include many entities and activities that are currently outside the scope of the ITAR, with significantly expanded extraterritorial application. If approved, entities with only attenuated exposure to the defense trade could face potentially severe penalties for violations that arguably have only a tangential relationship to national security.