The Olam
Regulatory framework

ITAR (International Traffic in Arms Regulations)

The US International Traffic in Arms Regulations — administered by the Directorate of Defense Trade Controls (DDTC) within the State Department — govern the export, re-export, and transfer of defense articles and defense services on the US Munitions List (USML).

ITAR's extraterritorial reach is more aggressive than EAR. Defense articles on the USML carry no general de minimis threshold — incorporation of even minimal ITAR-controlled content can pull a foreign-made finished product into ITAR jurisdiction. The licensing process is tighter, with longer review timelines and narrower approval criteria. Re-export to third parties requires US State Department authorization on top of any local authorization. End-use monitoring applies to many controlled items, with reporting and inspection obligations.

For Israeli defense industry, ITAR is the principal US regime governing third-party transfer of Israeli systems containing US-origin USML content. Three practical consequences follow. Israeli manufacturers run dual supplier chains where market access requires it — one chain for US-integrated configurations, one for ITAR-free export-oriented configurations. Third-party export of US-integrated Israeli systems requires US State Department authorization on top of Israeli SIBAT authorization. And the architecture runs on US timelines, which can be tighter or looser than Israeli authorization for the same transaction.

The 2023-2026 period has tested ITAR coordination in specific reported cases — selective US authorization delays on Israeli third-party exports — with the underlying institutional structure continuing to function.

Sources: US State Department Directorate of Defense Trade Controls; ITAR text; US Munitions List; published trade-compliance commentary. Data current as of Q2 2026.

Read Next in The Olam: Strategic Technology Trade · The US Export-Control Regime and Israeli Dual-Use Technology · EAR · DDTC · SIBAT