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DDTC Increases Registration Fees, Etc. for Certain USML Manufacturers, Exporters and Brokers

The State Department's Directorate of Defense Trade Controls (DDTC) has issued an interim rule, effective December 8, 2004, which amends the International Traffic in Arms Regulations (ITAR, 22 CFR Parts 122 and 129) by increasing registration fees, changing the registration renewal periods, and making other minor administrative changes.

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Maximum DDTC Registration Period Reduced; DDTC Registration Fees Increased

The State Department's interim rule amends 22 CFR 122.3 so that the maximum registration period is two years (from four years).

In addition, the State Department's interim rule revises the DDTC registration fees, effective December 8, 2004, as follows:

Length of registrationRegistration Fee
1 year$1,750 (from $600)
2 years$3,500 (from ($1,200)

The State Department notes that registration fees (including 4-year renewals) received (or postmarked) prior to December 8, 2004, will be honored under the previous fee rates and schedule.

Revised DS-2032 to be Issued in Near Future, Registration Code Format is Being Changed

In a notice posted to its Web site, the State Department also notes that:

While Form DS-2032 (Statement of Registration) has the old registration fee schedule, registrants are still required to pay the new registration fee. A revised form will be issued in the near future.

DDTC is changing the registration code format. The registration code will now include the letter prefix M (designating a manufacturer and/or exporter) or K (designating a broker) before the registrant's four- or five-digit registration number. The code will no longer include the four-digit prefix containing the month and day on which the registration will expire.

Administrative Changes

According to the DDTC, the interim rule also makes the following minor administrative changes:

amends 22 CFR 122.2(a) to reflect 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;

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;

amends 22 CFR 122.3(a), 123.3(a), and 129.4(a) in order to reference Form DS-2032 (Statement of Registration) in lieu of Form DSP-9, as the applicable form for registration purposes; and

amends 22 CFR 122.2(c) by removing its reference to 22 CFR 60.2(c), because it no longer exists.

(The DDTC states that all manufacturers, exporters, and brokers of defense articles, defense services, or related technical data, as defined on the U.S. Munitions List (USML), are required to register with the DDTC. According to DDTC, registration is primarily a means to provide the U.S. government with necessary information on who is involved in certain manufacturing and exporting activities. The State Department also states that registration does not confer any export rights or privileges, but is a precondition for the issuance of any license or other approval for export.)

- written comments must be received by 01/07/05

DDTC contact - David Trimble (202) 663-2807

DDTC interim rule (Public Notice 4920, FR Pub 12/08/04) available at

http://a257.g.akamaitech.net/7/257/2422/06jun20041800/edocket.access.gpo.gov/2004/pdf/04-26954.pdf.

DDTC Web site notice available at www.pmdtc.org/registration.htm.