Federal Register / Vol. 89, No. 237 / Tuesday, December 10, 2024 / Rules and Regulations 99081 

If the applicant is an employee who is 

not yet honorably retired, the 

recommendation must also certify that 

the employee intends permanent 

separation from U.S. Government 

employment abroad no later than the 

date of departure for the United States 

following issuance of an immigrant visa. 

(ii) Employees of Hong Kong 

Consulate General hired on or before 

July 1, 1999, are not required to 

establish immediate intent to immigrate. 

Employees of the Hong Kong Consulate 

General who received or were approved 

for special immigrant status before July 

1, 1999, also may continue employment 

with the U.S. Government. 

Julie M. Stufft, 

Deputy Assistant Secretary, Consular Affairs, 

Department of State. 

[FR Doc. 2024–28846 Filed 12–9–24; 8:45 am] 

BILLING CODE 4710–06–P 

DEPARTMENT OF STATE 

22 CFR Parts 122 and 129 

[Public Notice: 12542] 

RIN 1400–AF78 

International Traffic in Arms 

Regulations: Registration Fees 

AGENCY: Department of State. 

ACTION: Final rule. 

SUMMARY: The Department of State 

published a proposed rule on April 24, 

2024, requesting comment on proposals 

to amend the International Traffic in 

Arms Regulations (ITAR) by increasing 

and specifying the fees required for 

registration with the Directorate of 

Defense Trade Controls (DDTC). The 

Department now responds to the public 

comments received in response to that 

proposed rule and issues this final rule. 

DATES: This rule is effective January 9, 

2025. 

FOR FURTHER INFORMATION CONTACT: 

Allison Smith, Director, Office of 

Defense Trade Controls Management, 

Department of State, telephone (202) 

663–1282; email 

DDTCCustomerService@state.gov. 

ATTN: Registration Fee Change. 

SUPPLEMENTARY INFORMATION: 

Overview 

This final rule implements a change 

and increase in registration fees for 

certain persons required under 22 

U.S.C. 2778(b) to register with the 

Department of State’s Directorate of 

Defense Trade Controls (DDTC) and pay 

a registration fee. It also returns the 

amount of fees registrants must pay to 

the International Traffic in Arms 

Regulations (ITAR) (22 CFR parts 120 

through 130) and makes clarifying 

revisions to part 122 of the ITAR. This 

final rule follows a proposed rule (89 FR 

31119), published on April 24, 2024, 

which included the proposed revisions 

to DDTC’s registration fees and 

corresponding amendments to the ITAR. 

As noted in its proposed rule, for the 

first time in fifteen years, the 

Department proposed to revise and 

increase the registration fees (also 

referred to as ‘‘fees’’) charged to those 

required to register with DDTC. This 

increase is necessary because DDTC 

operations are primarily funded by fees. 

Without a sufficient increase to meet 

operational costs that have significantly 

risen since 2008, DDTC would be faced 

with untenable budget deficits and 

would be forced to reduce its services. 

In accordance with section 38(b) of 

the Arms Export Control Act (AECA) (22 

U.S.C. 2778(b)) and ITAR § 122.1 (22 

CFR 122.1), every person who engages 

in the business of manufacturing, 

exporting, temporarily importing, or 

brokering any defense articles or 

defense services is required to register 

with DDTC, the agency charged with 

administering the relevant sections of 

the AECA. Section 38(b) of the AECA 

also requires that every person required 

to register pay a registration fee. As the 

ITAR implements section 38 of the 

AECA, and as its parts 122 and 129 (22 

CFR parts 122 and 129) address 

registration, the Department proposed to 

revise those provisions to restate 

registration requirements without 

substantive change, to revise the 

Department’s methodology for 

determining the fees paid by certain 

registrants, to increase registration fees, 

and to reinsert the actual amount of fees 

within the ITAR itself. The Department 

now provides responses to comments 

received on the proposed rule and 

amends the ITAR as of the effective date 

of this rule, with one correction from 

the proposed rule. 

Summary of Changes From the 

Proposed Rule 

In this final rule, the Department 

makes the changes it previously 

proposed, with one minor change. Due 

to a typographical error, the Tier 3 fee 

multiplier for favorable determinations 

was misidentified in two places as 

$1,110 instead of the correct amount of 

$1,100. The Tier 3 fee multiplier was 

correctly introduced in the preamble as 

$1,100 (89 FR 31121), but a subsequent 

preamble reference to the Tier 3 fee 

multiplier was misidentified as $1,110 

(89 FR 31122). In addition, the incorrect 

reference was carried forward to 

amendatory instruction 3 of the 

proposed rule and identified the Tier 3 

fee multiplier at proposed § 122.3(a)(3) 

as $1,110 (89 FR 31124). This final rule 

adopts the correct Tier 3 fee multiplier 

of $1,100 at ITAR § 122.3(a)(3). 

Response to Comments 

During the 45-day public comment 

period (April 24, 2024, through June 10, 

2024) DDTC received 19 separate 

submissions from individuals, 

corporations, and industry associations 

in response to the notice of proposed 

rulemaking, some of which discussed 

more than one aspect of the proposed 

rule. All relevant comments addressed 

only ITAR § 122.3, which included 

proposed changes to the registration 

fees. The Department received no 

questions or comments on other changes 

in the proposed rule. 

Several commenters expressed a view 

that the proposed increase is an unjust 

burden on small business and may be a 

barrier to entry for new small business 

registrants. One commenter in particular 

claimed that the increase in registration 

fees would be especially difficult for 

manufacturers who do not export but 

are required by large corporations to be 

registered with DDTC to do business 

with them and advised the new 

registration fee would subject their 

company to paying 1 percent of their 

gross revenue to be able to sell products 

domestically for DoD end-use. As a 

threshold matter, the Department is 

aware that some private sector 

businesses elect to have their own 

separate requirement for businesses 

with which they contract to be 

registered with DDTC, even when those 

contracting businesses are not legally 

required to register with DDTC under 

ITAR § 122.1. Such varying 

requirements by some private sector 

businesses are outside of the scope of 

ITAR § 122.1. Pursuant to ITAR § 122.1, 

persons who are not engaged in the 

business of manufacturing, exporting, or 

temporarily importing defense articles 

are not required by ITAR § 122.1 to 

register with DDTC. With respect to the 

fee amount, the Department notes that 

registrants who do not export fall within 

Tier 1 and pay the base fee of $3,000. 

That base fee represents a 33.1 percent 

increase from the prior Tier 1 fee, which 

is approximately 12 percent less than 

the increase for Tier 2 and is slightly 

less than it would have been had the 

Department used the 40.1 percent 

inflation adjustment based on 2008 

dollars, when the registration fees were 

last amended. 

The Department acknowledges and 

understands the commenters’ concerns 

regarding small businesses. In response, 


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the Department is instituting a planned 

one-year initiative for qualifying Tier 1 

registrants, during which the 

Department will assess impact and 

consider extension. Tier 1 registrants 

may petition DDTC for consideration of 

a $500 discount (for a total registration 

fee of $2,500). To qualify, registrants 

must provide some form of proof that 

$3,000 was 1 percent or more of their 

total revenue for the last calendar year. 

‘‘Total revenue’’ is the total amount of 

income and is not limited to sales of 

items controlled on the U.S. Munitions 

List (USML). Applicants must submit a 

complete request for special 

consideration to DDTC at least 30 

calendar days prior to expiration of their 

current registration term. More 

information is available on the DDTC 

website, by searching ‘‘registration fee.’’ 

Moreover, as a result of the feedback 

received, the Department will review its 

registration fee structure more regularly 

to avoid large-percentage changes to 

registration fees. 

In addition, the Department continues 

to have a process for registrants where 

they may address registration fee 

concerns. Tier 2 and Tier 3 registrants 

whose registration fees are greater than 

$3,500 may petition DDTC for a pre-set 

alternate payment schedule. To be 

considered for an alternate payment 

schedule, registrants must provide some 

form of proof that their registration fee 

is greater than 1 percent of their total 

sales in the given year. Total sales 

include domestic and international sales 

and are not limited to sales of items 

described on the USML. Additionally, 

the Department continues to have 

discounts available for Tier 3 renewals. 

To ensure fairness to those registrants in 

Tier 3, if the registrant timely shows 

that their total registration fee is greater 

than 3 percent of the total value of 

favorable determinations on license 

applications or other requests for 

authorization during the 12-month 

period ending 90 days prior to 

expiration of the current registration, 

the registration fee may be reduced to 3 

percent of the value of such 

authorizations, or $4,000, whichever is 

greater. The Department also has 

discounts for exporters and temporary 

importers of low-value authorizations 

who fall under Tier 3, as described on 

the DDTC website (https://

www.pmddtc.state.gov; under Support > 

Review FAQs > DECCS—Registration > 

‘‘Understanding the Renewal Fee 

Download File’’). Registrants who are 

wholly exempt from income taxation 

pursuant to 26 U.S.C. 501(c)(3) also 

qualify for the Tier 1 registration fee of 

$3,000. 

One commenter agreed the proposal is 

fair for Tier 3 registrants to pay more 

than Tier 1 and Tier 2 registrants as they 

consume more services from DDTC, 

while expressing overall concern about 

the higher registration fees for all tiers. 

Multiple commenters stated that the 

Tier 1 and Tier 2 inflationary 

adjustments are difficult for small 

businesses, citing negative economic 

impacts for their companies and that the 

registration fee increase is more than the 

rate of inflation increase since 2008. The 

Department appreciates that any 

increase in registration fees may cause 

difficulties for businesses, particularly 

small businesses. However, the 

Department assessed that after fifteen 

years of inflation, increasing 

technological improvements, and 

improved services, that an increase in 

the amount of registration fees is 

necessary for the continued and 

modernized operations of DDTC. 

Reflecting considerations such as those 

in the comments it expected to receive, 

DDTC set the Tier 1 and Tier 2 

registration fee amounts to reflect an 

increase fairly consistent with inflation 

over the last fifteen years. Several 

commenters expressed concern that the 

Tier 3 proposed registration fee is 

significantly above the inflation rate 

when the additional fee multiplier for 

favorable determinations is factored in. 

The Department acknowledges this is 

accurate. The proposed registration fee 

structure allows DDTC to fund a large 

share of the many critical functions it 

provides to exporters, importers, 

brokers, manufacturers, and the 

public—such as the DDTC Response 

Team, Help Desk, commodity 

jurisdiction determinations, advisory 

opinions, guidance on brokering, and 

support for registration—all of which 

offer services for the approximately 

14,500 current DDTC registrants and 

also for the general public. The 

Department has concluded that Tier 3 

registrants have benefited the most from 

DDTC’s improvements, specifically the 

Defense Export Control and Compliance 

System (DECCS) and customer service 

improvements, and that they are best 

positioned to contribute from their 

export-derived revenue to continue and 

improve DDTC’s services. Additionally, 

Tier 3 registrants have more frequent 

interactions with DDTC and thus 

require more DDTC services. Because 

these improvements primarily benefit 

Tier 3 registrants, it is those registrants 

that will be asked to contribute more. 

Finally, the Department again notes the 

availability of discounted registration 

fees for high-volume, low-value Tier 3 

registrants. 

One commenter asked for clarification 

of how favorable determinations are 

classified and defined, and whether the 

scope of other requests for authorization 

encompasses application amendments 

and proviso reconsiderations. The 

commenter also asked the following 

questions: Are proviso reconsiderations 

included in the total? Are agreement 

amendments included in the total? The 

Department acknowledges this comment 

and clarifies that a favorable 

determination is an approval, an 

approval with provisos (sometimes also 

referred to as an approval with 

conditions), or written authorization 

from DDTC to conduct an activity 

regulated by the ITAR. An application 

that is returned without action or 

denied is not a type of favorable 

determination. That said, amendment 

requests and requests for proviso 

reconsiderations are considered in the 

registration fee calculation when they 

are positively adjudicated. 

One commenter inquired how DDTC 

was able to temporarily reduce its Tier 

1 and Tier 2 registration fees to $500 for 

1 year due to the coronavirus (COVID– 

19) pandemic, yet the agency needs to 

increase its registration fees now. Given 

the extraordinary impact of COVID–19 

on the national economy and Defense 

Industrial Base, DDTC temporarily 

reduced registration fees for registrants 

in Tier 1 and Tier 2 to $500 to help 

mitigate against the uncertain economic 

impact of the COVID–19 public health 

emergency. The temporary reduction in 

registration fees that occurred four years 

ago was a special circumstance and is 

unrelated to the current proposed 

registration fee changes. 

One commenter suggested that DDTC 

consider implementing pricing scales 

for different types of licenses or 

consider additional streams of revenue 

available outside of registration fees. For 

example, the commenter suggested that 

DSP–6, DSP–74, and DSP–62 may be 

billed at a lower rate due to the limited 

time and resources needed to review 

and approve applications. Further, the 

same commenter also suggested limited 

fee structures may be explored for 

foreign entities that request DSP–6004 

for reexports or retransfers. The 

Department notes that under the Arms 

Export Control Act, DDTC is authorized 

to charge for registration fees, not a fee 

per license. 

One commenter noted that as a risk 

mitigation practice, companies often 

apply for a license when the regulatory 

language or environment is unclear. 

DDTC’s proposed license fee increases 

may disincentivize companies from 

submitting licenses when the regulatory 

requirements are ambiguous. The 


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Department notes the ITAR requires a 

license for the export, temporary import, 

or furnishing of defense services. 

Industry may submit a request for an 

Advisory Opinion to get more 

information on regulatory language. The 

‘‘Advisory Opinions (AO)’’ application 

in DECCS allows industry users to 

electronically submit inquiries pursuant 

to ITAR §§ 120.22(a) (for preliminary 

authorization determinations) and (c) 

(for interpretations of ITAR 

requirements other than brokering) and 

129.9(a) (for guidance whether an 

activity is a brokering activity) and (c) 

(for guidance on other areas of 

brokering). 

One commenter inquired how the 

new registration fees will increase the 

investments in DECCS and technology. 

The Department provides that DDTC 

plans include continuing to update 

DECCS with user-requested and other 

enhancements, specifically as it applies 

to the DECCS-Licensing application and 

its integrations with other external 

applications (e.g., USXports, Automated 

Export System). The DDTC IT 

Modernization Team is tracking these 

enhancements for continued 

improvements and meets periodically 

with the DECCS User Group (DUG) and 

the Defense Trade Advisory Group 

(DTAG) regarding information 

technology (IT) user matters and 

responds to feedback from both. The 

DDTC IT Modernization Team will 

continue to share periodic updates with 

and solicit feedback from both the 

DTAG and the DUG. 

One commenter suggested that DDTC 

take a phased approach to increasing its 

registration fees so that registrants may 

account for budgeting while mitigating 

their financial risks. The Department 

understands the need for entities to 

budget for this proposed increase and is 

therefore delaying the effective date and 

implementation of this new rule until 

January 2025. DDTC will continue to 

socialize the new registration fee 

structure so that registrants are aware of 

the new registration fees ahead of the 

implementation. All registrants will 

continue to receive a letter in DECCS 

that states their new registration fee 90 

days ahead of their due date. 

Additionally, DDTC plans to conduct 

registration fee analyses every twoyears, which should mitigate the need 

for a similarly significant increase in the 

future. DDTC will continue to solicit 

public comment to gather industry’s 

point of view. 

The Department received a few 

comments asking for additional detail 

about how the Department determined 

the new registration fee costs. One 

commenter suggested that DDTC should 

disclose a budget for these increased 

estimated funds ‘‘and then justify that 

spend in how it will continue to serve 

and improve industry.’’ Based on the 

Department’s analysis, the proposed 

increase in registration fees allows 

DDTC to adjust for inflation, to continue 

to make IT and other internal 

improvements, and to efficiently 

address industry’s needs, as stated 

above. The increased registration fees 

are necessary to maintain the high level 

of service of the statutorily required 

export control system. DDTC will 

continue to engage with industry (via 

the DTAG, DUG, and industry events) to 

provide insights into how the 

organization serves the regulated 

community. 

In addition to the comments 

addressed above, the Department 

received several comments outside the 

scope of this rulemaking. The 

Department takes note of these 

comments but is not entertaining 

substantive revisions to other existing 

text of the ITAR in this rulemaking. 

Regulatory Analysis and Notices 

Administrative Procedure Act 

The Department has historically 

determined that rulemakings 

implementing the Arms Export Control 

Act or amending the ITAR involve a 

military or foreign affairs function of the 

United States under 5 U.S.C. 553(a). 

However, due to Department’s interest 

in seeking public comment on this rule, 

the Department solicited comments 

during a 45-day comment period, to 

which it is now responding in this final 

rule. 

Regulatory Flexibility Act 

Since this rule is exempt from the 

notice-and-comment rulemaking 

provisions of 5 U.S.C. 553, it does not 

require analysis under the Regulatory 

Flexibility Act. 

Unfunded Mandates Reform Act of 1995 

This rulemaking 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. 

Executive Orders 12372 and 13132 

This rulemaking does not have 

sufficient federalism implications to 

require consultations or warrant the 

preparation of a federalism summary 

impact statement. The regulations 

implementing Executive Order 12372 

regarding intergovernmental 

consultation on Federal programs and 

activities do not apply to this 

rulemaking. 

Congressional Review Act 

The Department does not believe that 

this rulemaking is a major rule, as 

defined by the Congressional Review 

Act, 5 U.S.C. 800 et seq. 

Executive Orders 12866, 14094, and 

13563 

Executive Orders 12866 (as amended 

by Executive Order 14094) and 13563 

direct agencies to assess all costs and 

benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, distributed impacts, and equity). 

Executive Order 13563 emphasizes the 

importance of quantifying both costs 

and benefits, of reducing costs, of 

harmonizing rules, and of promoting 

flexibility. This final rule has not been 

designated as a significant regulatory 

action by the Office of Information and 

Regulatory Affairs under Executive 

Order 12866, as amended. 

As noted in the proposed rule, 

roughly 14,500 registrants in fiscal year 

(FY) 2023 contributed registration fees 

to DDTC’s FY 2023 collections 

amounting to $33.8 million. Based on 

projections made from registrant data 

from recent years, the new registration 

fee structure, which presumes roughly 

the same number of registrants, is 

expected to bring in an overall total of 

roughly $67.2 million per year, which 

would be an overall increase of $33.4 

million per year. Although this is a 99 

percent projected increase in collections 

overall from current registration fees for 

FY 2025, DDTC’s projected operational 

budget will be nearly $60 million, and 

that amount is expected to continue to 

increase based on inflation and other 

increases in expenses. DDTC’s $60 

million budget includes (but is not 

limited to) contract labor support, IT 

services, personnel salaries, outreach, 

and travel. Accordingly, the revised 

registration fee structure is necessary for 

DDTC to continue operating to meet its 

mission. No action or an insufficient 

increase would cause budget deficits or 

a cut in necessary services. Further to a 

qualitative benefit-cost analysis, the 

registration fee structure finalized here 

benefits DDTC by meeting its budget 

demands in a way that also reasonably 

accounts for unknown variables such as 

changes in the number of registrants, or 

potential exemptions that would not 


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99084 Federal Register / Vol. 89, No. 237 / Tuesday, December 10, 2024 / Rules and Regulations 

require specific license applications or 

approvals and therefore decreases the 

expected collections from Tiers 2 and 3. 

It also allows for benefits to the 

regulated community, enabling DDTC to 

address unexpected contingencies as it 

did in 2020, when it temporarily 

lowered registration fee amounts as a 

relief measure during the COVID–19 

pandemic. 

The largest increase, on a perregistrant basis, falls on Tier 3 

registrants. The Department believes 

this increase is justified for the reasons 

discussed previously, including that 

Tier 3 registrants derive greater benefits 

from engaging in regulated activities 

while also consuming a 

disproportionate amount of DDTC 

support services. As stated above, the 

Department continues to have discounts 

available for Tier 3 renewals. To ensure 

fairness to those registrants in Tier 3, if 

they timely show that their total 

registration fee is greater than 3 percent 

of the total value of favorable 

determinations on license applications 

or other requests for authorization 

during the 12-month period ending 90 

days prior to expiration of the current 

registration, the registration fee may be 

reduced to 3 percent of the total license 

value of such authorizations, or $4,000, 

whichever is greater, as described on the 

DDTC website (https://

www.pmddtc.state.gov) under Support > 

Review FAQs > DECCS—Registration > 

‘‘Understanding the Renewal Fee 

Download File.’’ Because we project 

registrants in Tier 3 to account for over 

22,000 of the roughly 26,000 

applications expected to be adjudicated 

by DDTC, the Department believes that 

this is a more equitable distribution of 

financial costs. Tier 1 and Tier 2 

registrants, on the other hand, will see 

a 33 percent and 45 percent increase, 

respectively, not far from the near 40 

percent inflation rate in the over fifteen 

years since the registration fees were 

last adjusted. 

As mentioned above, the Department 

is putting a new consideration in place 

for Tier 1 registrants. This was done 

both in response to comments received 

and due to a resulting benefit-cost 

analysis. Qualitatively, the Department 

does not aim to impose unnecessary 

costs on registrants, particularly smallbusiness registrants. On the other hand, 

quantitatively, the Department does not 

know how many registrants, let alone 

how many Tiers 1 registrants, are small 

businesses. Nor does it know their 

average sales or revenues. The 

Department does not collect any of this 

information. Moreover, North American 

Industry Classification System (NAICS) 

codes do not provide suitable estimates 

as there are many industry codes that 

may have certain companies become 

registrants based on their activities, and 

not based on any one or several codes. 

Consequently, estimating the impact of 

lower registration fees for such entities 

on DDTC’s necessary revenues and 

operating budget is not possible. Despite 

the quantitative uncertainty and risk, 

the qualitative benefits and the chance 

to assist some small businesses 

outweighed the costs to DDTC when the 

scope of that assistance could be 

reasonably targeted. To that end, the 

$500 registration fee-discount petition 

process introduced above for Tier 1 

registrants whose fees equal 1 percent or 

more of their total revenue in a given 

year is a way that the Department could 

mitigate against the burdens that come 

from the registration fee increase. Tier 1 

registrants who receive this discount 

would end up with a registration fee 

increase of $250 more, or 11.1 percent 

more, than their current registration fee, 

which was last adjusted sixteen years 

ago in September 2008. The $500 

registration fee discount would be 16.67 

percent less than the usual Tier 1 

registration fee this rule establishes. 

Because of the unknown volume and 

effect of this discount, the Department 

will offer the petition process for one 

year; however, based on how it affects 

the budget, the Department will 

reevaluate whether it may continue the 

process in future years. Additionally, a 

further-out delayed effective date until 

January 2025 for the new registration fee 

structure was part of the Department’s 

benefit-cost analysis and was done so as 

to give more lead time to entities to plan 

for new costs. 

Executive Order 12988 

The Department of State has reviewed 

this rulemaking in light of Executive 

Order 12988 to eliminate ambiguity, 

minimize litigation, establish clear legal 

standards, and reduce burden. 

Executive Order 13175 

The Department of State has 

determined that this rulemaking will 

not have tribal implications, will not 

impose substantial direct compliance 

costs on Indian Tribal governments, and 

will not preempt Tribal law. 

Accordingly, the requirements of 

Executive Order 13175 do not apply to 

this rulemaking. 

Paperwork Reduction Act 

This rulemaking does not impose or 

revise any information collections 

subject to 44 U.S.C. chapter 35. 

Signing Authority 

The Under Secretary, Arms Control 

and International Security, Bonnie D. 

Jenkins, having reviewed and approved 

this document, has delegated the 

authority to electronically sign this 

document to Stanley L. Brown, Acting 

Assistant Secretary, Bureau of PoliticalMilitary Affairs, for purposes of 

publication in the Federal Register. 

List of Subjects 

22 CFR Part 122 

Arms and munitions, Exports, 

Reporting and recordkeeping 

requirements. 

22 CFR Part 129 

Arms and munitions, Brokers, 

Exports, Technical assistance. 

For the reasons discussed in the 

preamble and under the authority of 22 

U.S.C. 2778, the Department of State 

amends title 22, chapter I, subchapter 

M, parts 122 and 129 of the Code of 

Federal Regulations as follows: 

PART 122—REGISTRATION OF 

MANUFACTURERS AND EXPORTERS 

■ 1. The authority citation for part 122 

continues to read as follows: 

Authority: Sections 2 and 38, Pub. L. 90– 

629, 90 Stat. 744 (22 U.S.C. 2752, 2778); 22 

U.S.C. 2651a; E.O. 13637, 78 FR 16129. 

■ 2. Amend § 122.1 by revising the 

section heading and adding a heading to 

paragraph (a) to read as follows: 

§ 122.1 Registration: requirements, 

exemptions, and purpose. 

(a) Requirement to register. * * * 

* * * * * 

■ 3. Revise § 122.2 to read as follows: 

§ 122.2 Registration: submission of 

registration statement, certification, 

frequency, renewal, and lapse. 

(a) Submission of registration 

statement. An intended registrant must 

submit a Statement of Registration 

(Department of State form DS–2032) to 

the Office of Defense Trade Controls 

Compliance by following the electronic 

filing instructions available on the 

Directorate of Defense Trade Controls 

website at www.pmddtc.state.gov. The 

Statement of Registration may include 

subsidiaries and affiliates when more 

than 50 percent of the voting securities 

are owned by the registrant, or the 

subsidiaries and affiliates are otherwise 

controlled by the registrant (see § 120.66 

of this subchapter). Registrants may not 

establish new entities for the purpose of 

reducing registration fees. The 

Statement of Registration must: 

(1) Be signed by a U.S. person senior 

officer (e.g., chief executive officer, 


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president, secretary, partner, member, 

treasurer, general counsel) who has been 

empowered by the intended registrant to 

sign such documents; and 

(2) Include documentation that 

demonstrates the registrant is 

incorporated or otherwise authorized to 

do business in the United States. 

(b) Statement of Registration 

Certification. The Statement of 

Registration of the intended registrant 

shall include a certification by an 

authorized senior officer of the 

following: 

(1) Whether the intended registrant or 

its parent, subsidiary, or other affiliate 

listed in the Statement of Registration, 

or any of its chief executive officers, 

presidents, vice presidents, secretaries, 

partners, members, other senior officers 

or officials (e.g., comptroller, treasurer, 

general counsel), or any member of the 

board of directors of the intended 

registrant, or of any parent, subsidiary, 

or other affiliate listed in the Statement 

of Registration: 

(i) Has ever been indicted or 

otherwise charged (e.g., charged by 

criminal information in lieu of 

indictment) for or has been convicted of 

violating any U.S. criminal statutes 

enumerated in § 120.6 of this subchapter 

or violating a foreign criminal law on 

exportation of defense articles where 

conviction of such law carries a 

minimum term of imprisonment of 

greater than 1 year; 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; and 

(2) Whether the intended registrant is 

foreign owned or foreign controlled (see 

§ 120.65 of this subchapter). If the 

intended registrant is foreign owned or 

foreign controlled, the certification shall 

include an explanation of such 

ownership or control, including the 

identities of the foreign person or 

persons who ultimately own or control 

the registrant. This requirement applies 

to a registrant who is a U.S. person and 

is owned or controlled by a foreign 

person. It also applies to a registrant 

who is a foreign person and is owned or 

controlled by a foreign person from the 

same country or a foreign person from 

another country. 

(c) Incomplete registration 

submission. 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. 

(d) Frequency. A person who is 

required to register and pay a 

registration fee must renew the 

registration and pay a registration fee on 

an annual basis after initial registration. 

(e) Renewal of registration. A 

registrant must submit its request for 

registration renewal at least 30 days but 

no earlier than 60 days prior to the 

expiration date. Notice of the fee due for 

the next year’s registration will be sent 

to the registrant of record at least 60 

days prior to its expiration date. 

(f) 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. 

■ 4. Revise § 122.3 to read as follows: 

§ 122.3 Registration fees. 

(a) Registration fee. A person who is 

required to register must submit 

payment of a fee following the payment 

guidelines available on the Directorate 

of Defense Trade Controls website at 

www.pmddtc.state.gov. The fee to be 

paid shall be one of the following: 

(1) Tier 1. The first tier is a set fee of 

$3,000 per year. This applies to new 

registrants. It also applies to those who 

are renewing their registrations and for 

whom the Department did not issue a 

favorable determination on a license 

application or other request for 

authorization during the 12-month 

period ending 90 days prior to the 

expiration of the current registration. 

(2) Tier 2. The second tier is a set fee 

of $4,000 for registrants renewing their 

registrations who have submitted 

license applications or other requests for 

authorization and received five or fewer 

favorable determinations during the 12- 

month period ending 90 days prior to 

the expiration of their current 

registration. 

(3) Tier 3. The third tier is a 

calculated fee for registrants who have 

submitted license applications or other 

requests for authorization and received 

more than five favorable determinations 

during the 12-month period ending 90 

days prior to the expiration of their 

current registration. For these 

registrants, the fee calculation is $4,000 

plus $1,100 times the total number of 

favorable determinations over five. 

(b) Website, discounts, and further 

guidance. Information on certain 

discounts for registrants who are wholly 

exempt from income tax pursuant to 26 

U.S.C. 501(c)(3), and for Tier 3 

registrants who are low-value exporters 

or temporary importers are available on 

the Directorate of Defense Trade 

Controls website at 

www.pmddtc.state.gov by selecting 

‘‘Conduct Business’’ on the top heading 

bar, then selecting ‘‘Registration’’ from 

the left menu bar, and finally selecting 

‘‘Payment of Registration’’ from the 

subsequent left menu bar. Other 

guidance and information relevant to 

the payment of registration fees is also 

available on the website. 

PART 129—REGISTRATION AND 

LICENSING OF BROKERS 

■ 5. The authority citation for part 129 

continues to read as follows: 

Authority: Section 38, Pub. L. 104–164, 

110 Stat. 1437, (22 U.S.C. 2778); E.O. 13637, 

78 FR 16129. 

§ 129.8 [Amended] 

6. Amend § 129.8, in the first sentence 

of paragraph (b)(1), by removing the text 

‘‘and a fee following the fee guidelines 

available on the Directorate of Defense 

Trade Controls website at 

www.pmddtc.state.gov.’’ and adding in 

its place ‘‘and the Tier 1 fee specified in 

§ 122.3(a)(1) of this subchapter, 

regardless of how many favorable 

determinations the person received 

during the 12-month period ending 90 

days prior to the expiration of their 

current registration.’’ 

Stanley L. Brown, 

Acting Assistant Secretary, Bureau of 

Political-Military Affairs, Department of 

State. 

[FR Doc. 2024–29032 Filed 12–6–24; 4:15 pm] 

BILLING CODE 4710–25–P 

DEPARTMENT OF LABOR 

Mine Safety and Health Administration 

30 CFR Parts 18 and 74 

[Docket No. MSHA–2020–0018] 

RIN 1219–AB93 

Testing, Evaluation, and Approval of 

Electric Motor-Driven Mine Equipment 

and Accessories 

AGENCY: Mine Safety and Health 

Administration (MSHA), Department of 

Labor. 

ACTION: Final rule. 

SUMMARY: The Mine Safety and Health 

Administration (MSHA) is revising its 

regulations that set out the testing, 

evaluation, and approval requirements 

for electric motor-driven mine 

equipment and accessories intended for 

use in gassy mines. Under this final 

rule, MSHA incorporates by reference 


khammond on DSK9W7S144PROD with RULES