Text of ITAR Fee Changes with Names, Addresses, Phone Numbers

Interested parties may want to contact the Vote Freedom First Administration’s Secretary of State Condoleezza Rice and ask about the ramifications of this change.

 

Contact Information
Main address:
U.S. Department of State
2201 C Street NW
Washington, DC 20520

Main Switchboard:
202-647-4000
TTY:1-800-877-8339 (Federal Relay Service)

Public Communication Division:
PA/PL, Rm. 2206
U.S. Department of State
2201 C Street NW
Washington, D.C. 20520
202-647-6575

SUMMARY: The Department of State is proposing to amend the International Traffic in Arms Regulations (ITAR) by increasing the registration fees, changing the registration renewal period, and making other minor administrative changes.

DATES: Effective Date: The Department of State will accept comments on this proposed rule until August 27, 2008.

ADDRESSES: Interested parties may submit comments within 30 days of the date of publication by any of the following methods:

E-mail: DDTCResponseTeam@state.gov with the subject line: ITAR Regulatory Change, 22 CFR Parts 122 and 129.

Mail: Department of State, Directorate of Defense Trade Controls,

ATTN: Regulatory Change, ITAR sections 122 and 129, SA-1, 12th floor,
Washington, DC 20522-0112.

Persons with access to the Internet may also view this notice by going to the regulations.gov Web site at: http://www.regulations.gov/index.cfm.

FOR FURTHER INFORMATION CONTACT:

 

Patricia Slygh, Directorate of Defense Trade Controls,

Bureau of Political-Military Affairs,

Department of State

(202) 663-2830 or FAX (202) 261-8199;

e-mail DDTCResponseTeam@state.gov, Attn: Regulatory Change, ITAR Parts 122 and 129.

http://edocket.access.gpo.gov/2008/E8-17232.htm

Complete Text:

[Federal Register: July 28, 2008 (Volume 73, Number 145)]
[Proposed Rules]
[Page 43653-43654]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr28jy08-14]

[[Page 43653]]

=======================================================================
———————————————————————–

DEPARTMENT OF STATE

22 CFR Parts 122 and 129

[Public Notice 6246]
RIN 1400-AC50

Amendment to the International Traffic in Arms Regulations:
Registration Fee Change

AGENCY: Department of State.

ACTION: Proposed rule.

———————————————————————–

SUMMARY: The Department of State is proposing to amend the
International Traffic in Arms Regulations (ITAR) by increasing the
registration fees, changing the registration renewal period, and making
other minor administrative changes.

DATES: Effective Date: The Department of State will accept comments on
this proposed rule until August 27, 2008.

ADDRESSES: Interested parties may submit comments within 30 days of the
date of publication by any of the following methods:
E-mail: DDTCResponseTeam@state.gov with the subject line: ITAR
Regulatory Change, 22 CFR Parts 122 and 129.
Mail: Department of State, Directorate of Defense Trade Controls,
ATTN: Regulatory Change, ITAR sections 122 and 129, SA-1, 12th floor,
Washington, DC 20522-0112.
Persons with access to the Internet may also view this notice by
going to the regulations.gov Web site at: http://www.regulations.gov/
index.cfm.

FOR FURTHER INFORMATION CONTACT: Patricia Slygh, Directorate of Defense
Trade Controls, Bureau of Political-Military Affairs, Department of
State (202) 663-2830 or FAX (202) 261-8199; e-mail
DDTCResponseTeam@state.gov, Attn: Regulatory Change, ITAR Parts 122 and
129.

SUPPLEMENTARY INFORMATION: The President has required that the U.S.
Department of State initiate a self-financing mechanism so that up to
75% of the Directorate of Defense Trade Controls’ (DDTC) mission will
eventually be self-financed.
This proposed rule increases the fee charged to those persons
required to register with DDTC in accordance with Section 38 of the
Arms Export Control Act (AECA) (22 U.S.C. 2778). ITAR registration fees
are set forth at 22 CFR 122.3 and were last adjusted in 2004.
To better align registration fees with the cost of licensing,
compliance and other related activities, the Department is adopting a
three-tier registration fee schedule. The first tier will be a set fee
of $2,250 per year for registrants who are renewing a registration,
required to register by law and who have not submitted any applications
during the twelve month period ending 90 days prior to the expiration
of their current registration. This tier includes those registering
with the Department for the first time.
The second tier is for registrants who have submitted ten or fewer
applications during the twelve month period ending 90 days prior to the
expiration of their current registration. For this tier, registrants
will pay a set fee of $2,750 per year.
The third tier is for registrants who have submitted more than ten
applications during the twelve month period ending 90 days prior to the
expiration of their current registration. For this tier, registrants
will pay a fee of $2,750 plus an additional fee that is based on the
number of applications they submitted during the twelve months ending
90 days prior to the expiration of their current registration. The
additional fee will be determined by multiplying $250 times the number
of applications over ten submitted during the twelve month period
ending 90 days prior to the expiration of the current registration.
Fees for registrants whose total registration fee is greater than
3% of the total value of applications submitted during the twelve month
period ending 90 days prior to expiration of the current registration
will be reduced to 3% of such total application value or $2,750, which
ever is greater. Fees for universities and other registrants who are
exempt from income taxation pursuant to 26 U.S.C. 501(c)(3) may be
reduced to the first tier registration fee provided proof of such
status is submitted with their registration package.
In addition, 22 CFR 129.4(a) and 22 CFR 129.4(b) is revised to
reflect the new registration fee schedule.

Regulatory Analysis and Notices

Administrative Procedure Act: This amendment involves a foreign
affairs function of the United States and, therefore, is not subject to
the procedures contained in 5 U.S.C. 553 and 554.
Regulatory Flexibility Act: Because this proposed rule is exempt
from notice and comment rulemaking under 5 U.S.C. 553, it is exempt
from the regulatory flexibility analysis requirements set forth in
sections 603 and 604 of the Regulatory Flexibility Act (5 U.S.C. 603
and 604).
Unfunded Mandates Reform Act of 1995: This amendment does not
involve a mandate that will result in the expenditure by State, local,
and tribal governments, in the aggregate, or by the private sector, of
$100 million or more in any year and it will not significantly or
uniquely affect small governments. Therefore, no actions were deemed
necessary under the provisions of the Unfunded Mandates Reform Act of
1995.
Small Business Regulatory Enforcement Fairness Act of 1996: This
amendment has been found to be a major rule within the meaning of the
Small Business Regulatory Enforcement Fairness Act of 1996.
Executive Orders 12372 and 13132: This amendment will not have
substantial effects on the States, on the relationship between the
national government and the States, or on the distribution of power and
responsibilities among the various levels of government. Therefore, in
accordance with Executive Order 13132, it is determined that this
amendment does not have sufficient federalism implications to require
consultations or warrant the preparation of a federalism summary impact
statement. Executive Order 12372, regarding intergovernmental
consultation on Federal programs and activities, does not apply to this
amendment.
Executive Order 12866: This amendment is exempt from the review
under Executive Order 12866, but has been reviewed internally by the
Department of State to ensure consistency with the purposes thereof.
Executive Order 12988: The Department of State has reviewed the
proposed regulations in light of sections 3(a) and 3(b)(2) of Executive
Order 12988 to eliminate ambiguity, minimize litigation, establish
clear legal standards, and reduce burden.
Paperwork Reduction Act: This rule does not impose any new
reporting or recordkeeping requirements subject to the Paperwork
Reduction Act, 44 U.S.C. Chapter 35.

List of Subjects

22 CFR Part 122

Arms and munitions, Exports, Reporting and recordkeeping
requirements.

22 CFR Part 129

Arms and munitions, Exports, Technical assistance.

Accordingly, for the reasons set forth above, Title 22, Chapter I,
Subchapter M, parts 122 and 129 are proposed to be amended as follows:

[[Page 43654]]

PART 122–REGISTRATION OF MANUFACTURERS AND EXPORTERS

1. The authority citation for part 122 continues to read as
follows:

Authority: Secs. 2 and 38, Public Law 90-629, 90 Stat. 744 (22
U.S.C. 2752, 2778); E.O. 11958, 42 FR 4311, 1977 Comp. p. 79, 22
U.S.C. 2651a.

2. Section 122.2 is amended by revising paragraph (a) to read as
follows:

Sec. 122.2 Submission of registration statement.

(a) General. The Department of State Form DS-2032 (Statement of
Registration) and the transmittal letter required by paragraph (b) of
this section must be submitted by an intended registrant with a payment
(by check or money order) payable to the Department of State of the fee
prescribed in Sec. 122.3(a) of this subchapter. Checks and money
orders must be in U.S. currency, and checks must be payable through a
U.S. financial institution. In addition, the Statement of Registration
and transmittal letter must be signed by a senior officer who has been
empowered by the intended registrant to sign such documents. The
intended registrant also shall submit documentation that demonstrates
that it is incorporated or otherwise authorized to do business in the
United States. The Directorate of Defense Trade Controls will notify
the registrant if the Statement of Registration is incomplete either by
notifying the registrant of what information is required or through the
return of the entire registration package. Registrants may not
establish new entities for the purpose of reducing registration fees.
* * * * *
3. Section 122.3 is amended by revising paragraph (a) to read as
follows:

Sec. 122.3 Registration fees.

(a) A person who is required to register must do so on an annual
basis upon submission of a completed Form DS-2032, transmittal letter,
and payment of a fee as follows:
(1) Tier 1: A set fee of $2,250 per year is required for new
registrants or registrants who have not submitted any applications
during a 12-month period ending 90 days prior to expiration of the
current registration.
(2) Tier 2: A set fee of $2,750 per year is required for
registrants who have submitted ten or fewer applications during a 12-
month period ending 90 days prior to expiration of the current
registration.
(3) Tier 3: The third tier is for registrants who have submitted
more than ten applications during a 12-month period ending 90 days
prior to expiration of the current registration. For this tier,
registrants will pay a fee of $2,750 plus an additional fee based on
the number of applications submitted. The additional fee will be
determined by multiplying $250 times the number of applications over
ten submitted during a 12-month period ending 90 days prior to
expiration of the current registration.
(4) For universities and other registrants exempt from income
taxation pursuant to 26 U.S.C. 501(c)(3), their fee may be reduced to
the Tier 1 registration fee provided proof of such status is submitted
with their registration package.
(5) The fee for registrants whose total registration fee is greater
than 3% of the total value of applications submitted during the 12-
month period ending 90 days prior to expiration of the current
registration will be reduced to 3% of such total application value or
$2,750, which ever is greater.
(6) For those renewing a registration, notice of the fee due for
the next year’s registration will be sent to the Senior Officer signing
the previous DS2032 at least 60 days prior to its expiration date.
(7) For purposes of this subsection, “applications” refers to the
actions enumerated within Sections 123 through 125 of the ITAR that
require DDTC to review, adjudicate and issue responses to.
* * * * *

PART 129–REGISTRATION AND LICENSING OF BROKERS

4. The authority citation for part 129 continues to read as
follows:

Authority: Sec. 38, Pub. L. 104-164, 110 Stat. 1437 (22 U.S.C.
2778).

5. Section 129.4 is amended by revising paragraph (a) to read as
follows:

Sec. 129.4 Registration statement and fees.

(a) General. The Department of State Form DS-2032 (Statement of
Registration) and the transmittal letter meeting the requirements of
Sec. 122.2(b) of this subchapter must be submitted by an intended
registrant with a payment by check or money order payable to the
Department of State of the fees prescribed in Section 122.3(a) of this
subchapter. The Statement of Registration and transmittal letter must
be signed by a senior officer who has been empowered by the intended
registrant to sign such documents. The intended registrant shall also
submit documentation that demonstrates that it is incorporated or
otherwise authorized to do business in the United States. The
requirement to submit a Department of State Form DS-2032 and to submit
documentation demonstrating incorporation or authorization to do
business in the United States does not exclude foreign persons from the
requirement to register. Foreign persons who are required to register
shall provide information that is substantially similar in content as
that which a U.S. person would provide under this provision (e.g.,
foreign business license or similar authorization to do business). The
Directorate of Defense Trade Controls will notify the registrant if the
Statement of Registration is incomplete either by notifying the
registrant of what information is required or through the return of the
entire registration package with payment. Registrants may not establish
new entities for the purpose of reducing registration fees.
* * * * *

Dated: July 3, 2008.
John C. Rood,
Acting Under Secretary for Arms Control, and International Security,
Department of State.
[FR Doc. E8-17232 Filed 7-25-08; 8:45 am]

BILLING CODE 4710-25-P

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