[Federal Register Volume 69, Number 235 (Wednesday, December 8, 2004)]
[Rules and Regulations]
[Pages 70888-70889]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-26954]


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DEPARTMENT OF STATE

22 CFR Parts 122 and 129

[Public Notice 4920]
RIN 1400-AB97


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

AGENCY: Department of State.

ACTION: Interim rule and request for comments.

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SUMMARY: This rule amends the International Traffic in Arms Regulations 
(ITAR) (22 CFR parts 122 and 129) by increasing the registration fees, 
changing the registration renewal period, and making other minor 
administrative changes.

DATES: Effective Date: This interim rule takes effect on December 8, 
2004. Comment Date: The Department will accept written comments, which 
must be received no later than January 7, 2005.

ADDRESSES: Interested parties are invited to submit written comments to 
the Department of State, Directorate of Defense Trade Controls, Office 
of Defense Trade Controls Management, ATTN: ITAR Regulatory Change, 22 
CFR parts 122 and 129, 13th Floor, SA-1, Washington, DC 20522-0112. E-
mail comments may be sent to <a href="/cdn-cgi/l/email-protection#90d4c4d3c0c2f5e3e0fffee3f5c4f5f1fdd0e3e4f1e4f5bef7ffe6"><span class="__cf_email__" data-cfemail="b2f6e6f1e2e0d7c1c2dddcc1d7e6d7d3dff2c1c6d3c6d79cd5ddc4">[email protected]</span></a> with the 
subject line: ITAR Regulatory Change, 22 CFR parts 122 and 129. Persons 
with access to the Internet may also view this notice by going to the 
regulations.gov Web site at: http://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: David Trimble, Directorate of Defense 
Trade Controls Compliance, Bureau of Political-Military Affairs, 
Department of State (202) 663-2807 or FAX (202) 261-8199. ATTN: ITAR 
Regulatory Change, 22 CFR part 122 and part 129.

SUPPLEMENTARY INFORMATION: This interim rule increases the fee charged 
to those persons required to register with the U.S. State Department, 
Directorate of Defense Trade Controls 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 have not been adjusted since 
1997. Registration fees (including 4-year renewals) received (or 
postmarked) prior to the effective date of this amendment will be 
honored under the previous fee rates. Also, this amendment changes the 
maximum registration period from up to four years to two years.
    This amendment revises 22 CFR 122.2(a) and 122.3(a) and 129.4(a) to 
reference Form DS-2032 (Statement of Registration), in lieu of Form 
DSP-9 as the applicable form for registration purposes. The amendment 
to 22 CFR 122.2(a) also reflects that the State Department will notify 
the registrant if the Registration Statement package is incomplete, but 
will no longer return incomplete materials to the sender. 22 CFR 
122.2(c) is amended by removing its reference to 22 CFR 60.2(c) because 
that provision no longer exists.
    This amendment revises 22 CFR 122.3(a) to change the maximum 
registration period to two years from four years. In addition, this 
amendment removes 22 CFR 122.3(c). The State Department will no longer 
provide fee refunds to registrants that cease to engage in the 
manufacture or export of defense articles and defense services.

Regulatory Analysis and Notices

    This amendment is made in accordance to the following regulations:
    Administrative Procedure Act: The Department's implementation of 
this regulation as an interim rule with request for comments is based 
upon the ``good cause'' exceptions found at 5 U.S.C. 553(b)(B) and 
(d)(3). The Department has determined that notice and public procedure 
thereon in advance of the effective date are impracticable and contrary 
to the public interest as the fees are needed immediately to fund 
regulatory efforts to help ensure terrorist entities and state sponsors 
of terrorism do not gain access to exported U.S. defense articles and 
services. Further, the funds are vital to controlling sensitive weapons 
and defense technology needed to protect the national security 
interests of the United States.
    Regulatory Flexibility Act: The Department, in accordance with the 
Regulatory Flexibility Act (5 U.S.C. 605(b)), has reviewed this 
regulation and, by approving it, certifies that this rule will not have 
a significant economic impact on a substantial number of small 
entities.
    Unfunded Mandated Reform Act of 1995: This rule will not 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 Act of 1996: This rule is not 
a major rule as defined by section 804 of the Small Business Regulatory 
Enforcement Act of 1996. This rule will not result in an annual effect 
on the economy of $100 million or more; a major increase in costs or 
prices; or significant adverse effects on competition, employment, 
investment, productivity, innovation, or on the ability of United 
States-based companies to compete with foreign-based companies in 
domestic and export markets.
    Executive Order 12866: The Department of State does not consider 
this rule to be a ``significant regulatory action'' under Executive 
Order 12866, section 3(f), Regulatory Planning and Review. In addition, 
the Department is exempt from Executive Order 12866 except to the 
extent that it is promulgating regulations in conjunction with a 
domestic agency that are significant regulatory actions. The Department 
has nevertheless reviewed the regulation to ensure its consistency with 
the regulatory philosophy and principles set forth in the Executive 
Order.
    Executive Order 12988, Civil Justice Reform: The Department has 
reviewed this regulation in light of sections 3(a) and 3(b)(2) of 
Executive Order No. 12988 to eliminate ambiguity, minimize litigation, 
establish clear legal standards, and reduce burden.
    Executive Order 13132: This regulation will not have substantial 
direct effects on the States, the relationship between the National 
Government and the States, or on the distribution of power and 
responsibilities among the various levels of government. Therefore, it 
is determined that this rule does not have sufficient federalism 
implications to require consultations or warrant the preparation of a 
federalism summary impact statement.
    Executive Order 12372: This regulation does not require review

[[Page 70889]]

under Executive Order 12372, Intergovernmental Review of Federal 
Programs.
    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. Form DS-2032, which the rule 
references, bears OMB Approval No. 1405-0002 and is currently approved 
for use through July 31, 2005.

List of Subjects

22 CFR Part 122

    Arms and munitions, Exports.

22 CFR Part 129

    Arms and munitions, Exports, Technical assistance.


0
Accordingly, for the reasons set forth above, title 22, chapter I, 
subchapter M, parts 122 and 129 are amended as follows:

PART 122--REGISTRATION OF MANUFACTURERS AND EXPORTERS

0
1. The authority citation for part 122 continues to read as follows:

    Authority: Secs. 2 and 38, Pub. L. 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. 2658.


0
2. Section 122.2 is amended to revise paragraphs (a) and (c) 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 one of 
the fees 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 
package is incomplete.
    (b) * * *
    (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.

0
3. Section 122.3 is amended to revise paragraph (a) and remove 
paragraph (c) to read as follows:


Sec.  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:

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1 year.....................................................    $1,750.00
2 years....................................................    $3,500.00
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* * * * *

PART 129--REGISTRATION AND LICENSING OF BROKERS

0
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).

0
5. Section 129.4 is amended to revise 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 a 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 one of the fees prescribed in Sec.  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 
also shall submit documentation that demonstrates that it is 
incorporated or otherwise authorized to do business in the United 
States.
* * * * *

    Dated: November 1, 2004.
John R. Bolton,
Under Secretary, Arms Control and International Security, Department of 
State.
[FR Doc. 04-26954 Filed 12-7-04; 8:45 am]
BILLING CODE 4710-25-P


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