New ITAR USML Category XX: What contractors must know about UUV controls (effective Sept. 15, 2025)

Overview On September 15, 2025 the Department of State amended the U.S. Munitions List to add a new Category XX (Submersible Vessels and Related Articles). The rule specifically brings a class of Unmanned Underwater Vehicles (UUVs) onto the USML, establishes size/autonomy thresholds that trigger ITAR control, and creates a targeted license exemption for certain civil uses. For contractors and supply‑chain partners working on UUVs, subsea mission systems, or related parts/services, this change has immediate program, contracting, export‑control, and operational implications.

 

What changed

The UUV bright line A UUV is now ITAR‑controlled if it is uncrewed, untethered and meets at least one of these criteria:

• It has an anti‑recovery feature (for example, scuttle or self‑destruct capability); or
• Its gross weight rating exceeds 3,000 lb and it is designed to operate without human interaction for longer than 24 hours or farther than 70 nautical miles.

 

Why those thresholds matter

• The 3,000‑pound threshold was selected because that size allows significant weaponization (torpedoes, mines, large payloads).
• The 24‑hour / 70‑nmi autonomy threshold reflects the operational persistence needed to provide militarily valuable ISR, targeting, or delivery capability and excludes many civilian ROVs that require shorter endurance or human control.

 

What Category XX covers

• Paragraph (a) enumerates submersibles and uncrewed untethered vessels (including large UUVs that meet the new criteria), mine-countermeasure vehicles, ASW vehicles, swimmer delivery vehicles, nuclear‑propulsion items, developmental vessels funded by DoD (with clarifying notes), and mission systems integrated on those vessels.
• Paragraphs (b)–(d) expand the category to include submarine propulsion items, specially designed motors, parts/components/tooling, technical data, and defense services directly related to Category XX articles.
• Paragraph (x) clarifies handling of EAR‑controlled commodities/software/technical data used in or with defense articles when included in license applications.

 

New license exemption for certain large UUV activities (§126.9(u))

Recognizing that some large UUVs are also valuable for scientific or commercial missions, the rule establishes a targeted exemption that authorizes:

• Temporary export/reexport/temporary import of UUVs described in Category XX(a)(10) up to an 8,000 lb gross weight limit; and
• Assistance, maintenance, repair, operation, use, and brokering in support of specified civil purposes (scientific research, resource exploration, infrastructure work, search & rescue).

Key restrictions on the exemption:

• The vessel must not be controlled elsewhere on the USML.
• Gross weight rating must be ≤ 8,000 lb.
• Activities must be limited to covered civil uses.
• The exemption does not authorize transfer of registration, control, or ownership to a foreign person.

 

Practical consequences for industry

1. Jurisdiction & classification work becomes mandatory: companies that design, build, integrate, test, or sell submersible platforms must re‑run product jurisdiction and commodity classification analyses against the new Category XX language. A UUV that was previously treated as EAR may now be ITAR.
2. Technical data and services are controlled: even if hardware shipments are limited, technical data, software, and defense services related to Category XX items are ITAR controlled. Collaborative engineering, remote diagnostics, maintenance instructions, and mission systems software now need careful gating.
3. Contracting and FMS implications: prime contractors and subcontractors must update DFARS/flow‑downs, include accurate USML classifications, and address whether foreign partners require TAAs/MLAs/DSP licenses or qualify for the limited §126.9(u) exemption.
4. New compliance processes and recordkeeping: ITAR recordkeeping and reporting obligations apply to controlled activities. The exemption contains its own restrictions and record requirements; treat it like a license for compliance purposes.
5. Opportunity to use the limited exemption but with care: the new §126.9(u) can support temporary civil missions and related assistance without a license where the restrictions are met — but it is narrow (weight cap, permitted civil uses, no foreign transfer of ownership) and should be validated before relying on it operationally.

 

Recommended immediate actions for contractors and primes

• Do a rapid triage: identify any existing UUV programs, subcomponents, mission systems, or related software that could fall within Category XX — focus on gross weight, autonomy, and anti‑recovery features.
• Run a jurisdiction/classification review: document a written determination of ITAR vs EAR for each line item and associated technical data. If in doubt, prepare to treat things as ITAR pending a CJ or license.
• Review contracts and flow‑downs: make sure purchase orders and subcontract language reflect the new USML classifications and that customers/vendors understand licensing impact on delivery timelines and costs.
• Consider the exemption only after review by a global trade expert: if you think your activity fits §126.9(u), document the civil purpose and limits and consult global trade practitioners before relying on the exemption operationally.
• Build compliance expertise: designate or hire an empowered official/export compliance lead (or engage a specialist firm) and ensure export controls are part of program planning, BD, and proposal timelines.

How Defense Trade Solutions can help

• Rapid classification/JCA: quick, documented reviews to determine whether systems/parts/software fall on the USML or CCL.
• Program readiness & TAA/MLA/DSP support: drafting, engagement, and shepherding license/agreements for cross‑border engineering, manufacturing, and foreign sales.
• Exemption evaluation: practical assessment of whether §126.9(u) applies and how to use it safely for civil missions.

Bottom line

The addition of Category XX and the new UUV thresholds are a meaningful expansion of the USML. Contractors working with large or persistent UUVs, mission systems, or related propulsion/parts/software must act now: re‑classify, contain technical data, harden access, and align contracts and supply chains with ITAR obligations. The new §126.9(u) offers carefully drafted relief for specific civil uses — but it is narrow and should be used only with clear documentation and expert review.