# "Consolidated" ITAR

**Note from the Directorate of Defense Trade Controls:** Users are
reminded that the official version of the International Traffic in Arms
Regulations (ITAR) can be found in Subchapter M, Title 22, Code of
Federal Regulations, Parts 120 through 130 (22 CFR 120-130) and is
published by the U.S. Government Printing Office. The following version
will generally be current because of DDTC's effort to provide a
"consolidated" ITAR which integrates amendments to the ITAR that appear
in **Federal Register** notices throughout the year with the CFR text.

**TITLE 22\--FOREIGN RELATIONS**

**CHAPTER I\--DEPARTMENT OF STATE**

**PART 122 \-- REGISTRATION OF MANUFACTURERS AND EXPORTERS**

**Section Contents**\
§ 122.1   Registration requirements.\
§ 122.2   Submission of registration statement.\
§ 122.3   Registration fees.\
§ 122.4   Notification of changes in information furnished by
registrants.\
§ 122.5   Maintenance of records by registrants.

**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.

**Source:**   58 FR 39298, July 22, 1993, unless otherwise noted.

##### § 122.1   Registration requirements.

\(a\) Any person who engages in the United States in the business of
either manufacturing or exporting defense articles or furnishing defense
services is required to register with the Directorate of Defense Trade
Controls. For the purpose of this subchapter, engaging in the business
of manufacturing or exporting defense articles or furnishing defense
services requires only one occasion of manufacturing or exporting a
defense article or furnishing a defense service. Manufacturers who do
not engage in exporting must nevertheless register.

\(b\) *Exemptions.* Registration is not required for:

\(1\) Officers and employees of the United States Government acting in
an official capacity.

\(2\) Persons whose pertinent business activity is confined to the
production of unclassified technical data only.

\(3\) Persons all of whose manufacturing and export activities are
licensed under the Atomic Energy Act of 1954, as amended.

\(4\) Persons who engage only in the fabrication of articles for
experimental or scientific purpose, including research and development.

\(c\) *Purpose.* Registration is primarily a means to provide the U.S.
Government with necessary information on who is involved in certain
manufacturing and exporting activities. Registration does not confer any
export rights or privileges. It is generally a precondition to the
issuance of any license or other approval under this subchapter.

\[58 FR 39298, July 22, 1993, as amended at 71 FR 20540, Apr. 21, 2006\]

##### § 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 one of
the fees prescribed in §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 package is incomplete.

\(b\) *Transmittal letter* . A letter of transmittal, signed by an
authorized senior officer of the intended registrant, shall accompany
each Statement of Registration.

\(1\) The letter shall state whether the intended registrant, chief
executive officer, president, vice-presidents, other senior officers or
officials (e.g. comptroller, treasurer, general counsel) or any member
of the board of directors:

\(i\) Has ever been indicted for or convicted of violating any of the
U.S. criminal statutes enumerated in §120.27 of this subchapter; or

\(ii\) Is ineligible to contract with, or to receive a license or other
approval to import defense articles or defense services from, or to
receive an export license or other approval from, any agency of the U.S.
Government.

\(2\) The letter shall also declare whether the intended registrant is
owned or controlled by foreign persons (as defined in §120.16 of this
subchapter). If the intended registrant is owned or controlled by
foreign persons, the letter shall also state whether the intended
registrant is incorporated or otherwise authorized to engage in business
in the United States.

\(c\) *Definition.* For purpose of this section, *ownership* means that
more than 50 percent of the outstanding voting securities of the firm
are owned by one or more foreign persons. *Control* means that one or
more foreign persons have the authority or ability to establish or
direct the general policies or day-to-day operations of the firm.
Control is presumed to exist where foreign persons own 25 percent or
more of the outstanding voting securities if no U.S. persons control an
equal or larger percentage.

\[58 FR 39298, July 22, 1993, as amended at 69 FR 70889, Dec. 8, 2004;
71 FR 20540, Apr. 21, 2006\]

##### § 122.3   Registration fees.

(a) A person who is required to register may do so for a period up to 2
years upon submission of a completed Form DS--2032, transmittal letter,
and payment of a fee as follows:

  ----------------------------- -----------------------------------------
  1 year                        \$1,750.00

  2 years                       \$3,500.00
  ----------------------------- -----------------------------------------

\(b\) *Expiration of registration.* A registrant must submit its request
for registration renewal at least 30 days prior to the expiration date.

\(c\) *Lapse in registration.* A registrant who fails to renew a
registration and, after an intervening period, seeks to register again
must pay registration fees for any part of such intervening period
during which the registrant engaged in the business of manufacturing or
exporting defense articles or defense services.

\[58 FR 39298, July 22, 1993, as amended at 62 FR 27497, May 20, 1997;
69 FR 70889, Dec. 8, 2004; 70 FR 50959, Aug. 29, 2005\]

##### § 122.4   Notification of changes in information furnished by registrants.

(a) A registrant must, within five days of the event, notify the
Directorate of Defense Trade Controls by registered mail if:

\(1\) Any of the persons referred to in §122.2(b) are indicted for or
convicted of violating any of the U.S. criminal statutes enumerated in
§120.27 of this subchapter, or become ineligible to contract with, or to
receive a license or other approval to export or temporarily import
defense articles or defense services from any agency of the U.S.
government; or

\(2\) There is a material change in the information contained in the
Statement of Registration, including a change in the senior officers;
the establishment, acquisition or divestment of a subsidiary or foreign
affiliate; a merger; a change of location; or the dealing in an
additional category of defense articles or defense services.

\(b\) A registrant must notify the Directorate of Defense Trade Controls
by registered mail at least 60 days in advance of any intended sale or
transfer to a foreign person of ownership or control of the registrant
or any entity thereof. Such notice does not relieve the registrant from
obtaining the approval required under this subchapter for the export of
defense articles or defense services to a foreign person, including the
approval required prior to disclosing technical data. Such notice
provides the Directorate of Defense Trade Controls with the information
necessary to determine whether the authority of §38(g)(6) of the Arms
Export Control Act regarding licenses or other approvals for certain
sales or transfers of defense articles or data on the U.S. Munitions
List should be invoked (see §§120.10 and 126.1(e) of this subchapter).

\(c\) The new entity formed when a registrant merges with another
company or acquires, or is acquired by, another company or a subsidiary
or division of another company shall advise the Directorate of Defense
Trade Controls of the following:

\(1\) The new firm name and all previous firm names being disclosed;

\(2\) The registration number that will survive and those that are to be
discontinued (if any);

\(3\) The license numbers of all approvals on which unshipped balances
will be shipped under the surviving registration number, since any
license not the subject of notification will be considered invalid; and

\(4\) Amendments to agreements approved by the Directorate of Defense
Trade Controls to change the name of a party to those agreements. The
registrant must, within 60 days of this notification, provide to the
Directorate of Defense Trade Controls a signed copy of an amendment to
each agreement signed by the new U.S. entity, the former U.S. licensor
and the foreign licensee. Any agreements not so amended will be
considered invalid.

\(d\) Prior approval by the Directorate of Defense Trade Controls is
required for any amendment making a substantive change.

\[58 FR 39298, July 22, 1993, as amended at 71 FR 20540, Apr. 21, 2006\]

##### § 122.5   Maintenance of records by registrants.

(a) A person who is required to register must maintain records
concerning the manufacture, acquisition and disposition (to include
copies of all documentation on exports using exemptions and applications
and licenses and their related documentation), of defense articles; of
technical data; the provision of defense services; brokering activities;
and information on political contributions, fees, or commissions
furnished or obtained, as required by part 130 of this subchapter.
Records in an electronic format must be maintained using a process or
system capable of reproducing all records on paper. Such records when
displayed on a viewer, monitor, or reproduced on paper, must exhibit a
high degree of legibility and readability. (For the purpose of this
section, "legible" and "legibility" mean the quality of a letter or
numeral that enables the observer to identify it positively and quickly
to the exclusion of all other letters or numerals. "Readable" and
"readability" means the quality of a group of letters or numerals being
recognized as complete words or numbers.) This information must be
stored in such a manner that none of it may be altered once it is
initially recorded without recording all changes, who made them, and
when they were made. For processes or systems based on the storage of
digital images, the process or system must afford accessibility to all
digital images in the records being maintained. All records subject to
this section must be maintained for a period of five years from the
expiration of the license or other approval, to include exports using an
exemption (See §123.26 of this subchapter); or, from the date of the
transaction (e.g., expired licenses or other approvals relevant to the
export transaction using an exemption). The Managing Director,
Directorate of Defense Trade Controls, and the Director of the Office of
Defense Trade Controls Licensing, may prescribe a longer or shorter
period in individual cases.

\(b\) Records maintained under this section shall be available at all
times for inspection and copying by the Directorate of Defense Trade
Controls or a person designated by the Directorate of Defense Trade
Controls (e.g., the Diplomatic Security Service) or U.S. Immigration and
Customs Enforcement, or U.S. Customs and Border Protection. Upon such
request, the person maintaining the records must furnish the records,
the equipment, and if necessary, knowledgeable personnel for locating,
reading, and reproducing any record that is required to be maintained in
accordance with this section.

\[70 FR 50959, Aug. 29, 2005\]