New DDTC Rejection Policy for Registration Requests Failing to Meet Minimum Acceptance Standards
The State Department's Directorate of Defense Trade Controls has posted a message to its Web site announcing that nearly 50% of company registration requests analyzed in a recent DDTC review did not meet the minimum standard for acceptance. To assist companies in avoiding common registration request problems, DDTC has noted some common errors and updated and expanded its "Helpful Hints" guide. DDTC has also adopted a new rejection policy (see below).
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(According to DDTC, all manufacturers, exporters, and brokers of defense articles, defense services, or related technical data, as defined on the U.S. Munitions List of the International Traffic in Arms Regulations (ITAR), are required to register with DDTC. Registration primarily serves to inform DDTC of who is involved in certain manufacturing and exporting activities and does not confer any export rights or privileges. Registering is a precondition for the issuance of any license or other approval for export.)
New DDTC Policy Rejects Registration Requests Not Meeting Basic Acceptability
DDTC has adopted a policy of rejecting registration requests that do not meet basic criteria for acceptance. Rejected requests (and payments) will be returned via certified mail with the reason(s) for the rejection.
Previously, DDTC worked with registrants to obtain corrected documentation, but the drain on personnel, additional steps to the review, and delays on final action led DDTC to change its policy.
Basic Registration Facts
A complete registration package includes: form DS-2032, Transmittal Letter, documentation of incorporation or other authorization to do business in the U.S. (or equivalent for foreign brokers outside U.S.), fees, form and letter signed by senior officer who also qualifies as an empowered official under ITAR.
Registration fees are $1,750 for 1 year, and $3,500 for 2 years.
Registration code must include either the letter prefix M (designating a manufacturer and/or exporter) or K (designating a broker) before the registrant's 4 or 5 digit registration number (e.g., K-1234 or M12345). (Registration code no longer includes a 4-digit prefix containing the month and day on which the registration expires.)
New and renewal registrations determined to be complete are generally acted on in 3-4 weeks. Incomplete registrations have to be followed-up on or returned, extending the process.
Renewal Registrations
Renewal registration packages require all of the same documentation as an initial submission and should be received by DDTC at least 30 days prior to the expiration date (though DDTC recommends 60 days).
DDTC must be notified of any material changes contained in the Registration Statement (ITAR 122.4) or transmittal letters for registration to be considered current.
Lapses in registration by registrants who fail to renew and then seek renewal after an intervening period result in registration fees for any part of the intervening period that the registrant was in the business.
Common Registration Errors Noted by DDTC
Form DS-2032 - not properly completed or blocks on the form were either left blank or the information provided was wrong.
Transmittal letter pursuant to ITAR 122.2(b) - not provided, not on company letterhead, not signed by an authorized senior official or did not fully address information on foreign ownership in ITAR 122.2(b)(2).
Copy of certificate of incorporation or authorization to do business - not provided or the document copy did not meet one of the acceptable criterions.
Check payment - incorrect dollar amount, not drawn on a U.S. financial institution (not required for foreign brokers), not a corporate account.
For additional information, see DDTC "Helpful Hints" registration guide (available at http://www.pmddtc.state.gov/registration/registration_helpful_hintsguide.pdf).
DDTC registration contact - Response Team (202) 663-1282
DDTC guide to preparing a complete registration package available at http://www.pmddtc.state.gov/registration.htm
DDTC message (updated 04/12/07) available at http://www.pmddtc.state.gov/registration_rwa_policy.htm