[Federal Register Volume 75, Number 59 (Monday, March 29, 2010)]
[Proposed Rules]
[Pages 15388-15389]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-6905]
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DEPARTMENT OF STATE
22 CFR Parts 124, 126, and 129
[Public Notice: 6931]
RIN 1400-AC62
Amendment to the International Traffic in Arms Regulations:
Removing Requirement for Prior Approval for Certain Proposals to
Foreign Persons Relating to Significant Military Equipment
AGENCY: Department of State.
ACTION: Proposed rule.
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SUMMARY: The Department of State is amending the International Traffic
in Arms Regulations (ITAR) to remove the requirements for prior
approval or prior notification for certain proposals to foreign persons
relating to significant military equipment at section 126.8 of the
ITAR.
DATES: Effective Date: The Department of State will accept comments on
this proposed rule until May 28, 2010.
ADDRESSES: Interested parties may submit comments within 60 days of the
date of the publication by any of the following methods:
E-mail: [email protected] with an appropriate
subject line.
Mail: Department of State, Directorate of Defense Trade
Controls, Office of Defense Trade Controls Policy, ATTN: Regulatory
Change, Section 126.8, SA-1, 12th Floor, Washington, DC 20522-0112.
Persons with access to the Internet may also view this
notice by going to the U.S. Government regulations.gov Web site at
http://regulations.gov/index.cfm.
FOR FURTHER INFORMATION CONTACT: Director Charles B. Shotwell, Office
of Defense Trade Controls Policy, Department of State, Telephone (202)
663-2803 or Fax (202) 261-8199; E-mail [email protected].
ATTN: Regulatory Change, Section 126.8.
SUPPLEMENTARY INFORMATION: Effective September 1, 1977, the Department
of State amended the International Traffic in Arms Regulations (ITAR)
at 22 CFR 123.16, to require Department of State approval before a
proposal or presentation is made that is designed to constitute the
basis for a decision to purchase significant combat equipment,
involving the export of an item on the U.S. Munitions List, valued at
$7,000,000 or more for use by the armed forces of a foreign country (42
FR 41631, dated August 18, 1977). Also, 22 CFR 124.06, entitled
``Approval of proposals for technical assistance and manufacturing
license agreements,'' was amended to require similar prior approval
requirements with respect to proposals and presentations for technical
assistance and manufacturing license agreements involving the
production or assembly of significant combat equipment.
``Proposals to foreign persons relating to significant military
equipment'' became section 126.8 in a final rule effective January 1,
1985 (49 FR 47682, dated December 6, 1984). Section 126.8 did not
require prior approval of the Department of State when the proposed
sale was to the armed forces of a member of the North Atlantic Treaty
Organization (NATO), Australia, Japan, or New Zealand, except with
respect to manufacturing license agreements or technical assistance
agreements.
A prior notification requirement, instead of prior approval, was
added to section 126.8 in a final rule effective March 31, 1985 (50 FR
12787, dated April 1, 1985). Prior notification to the Department of
State was required 30 days in advance of a proposal or presentation to
any foreign person where such proposals or presentations concern
equipment previously approved for export.
The current section 126.8 requires prior approval or prior
notification for certain proposals and presentations to make a
determination whether to purchase significant military equipment valued
at $14,000,000 or more (other than a member of NATO, Australia, New
Zealand, Japan, or South Korea), or whether to enter into a
manufacturing license agreement or technical assistance agreement for
the production or assembly of significant military equipment,
regardless of dollar value.
These types of proposals and presentations usually involve large
dollar amounts. Before the defense industry undertakes the effort
involved in formulating its proposals and presentations, if there is
any doubt that the corresponding license application or proposed
agreement would not be authorized by the Department of State, the
industry may request an advisory opinion (See 22 CFR 126.9). The
written advisory opinion, though not binding on the Department, helps
inform the defense industry whether the Department would likely grant a
license application or proposed agreement. Currently, the time between
submitting a license application or proposed agreement and obtaining a
decision from the Department of State whether to authorize such
transactions has been decreased sufficiently that requiring prior
approval or prior notification for proposals is unnecessary and imposes
an administrative burden on industry.
References to Sec. 126.8 have been removed at Sec. Sec. 124.1(a),
126.13, and 129.8(c).
Regulatory Analysis and Notices
Administrative Procedure Act
This proposed amendment involves a foreign affairs function of the
United States and, therefore, is not subject to the procedures
contained in 5 U.S.C. 553 and 554.
Regulatory Flexibility Act
Since this proposed amendment involves a foreign affairs function
of the United States, it does not require
[[Page 15389]]
analysis under the Regulatory Flexibility Act.
Unfunded Mandates Reform Act of 1995
This proposed amendment 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.
Small Business Regulatory Enforcement Fairness Act of 1996
This proposed amendment has been found not to be a major rule
within the meaning of the Small Business Regulatory Enforcement
Fairness Act of 1996.
Executive Orders 12372 and 13132
This proposed amendment will not have substantial direct effects on
the States, on the relationship between the national government and the
States, or on the distribution of power and responsibilities among the
various levels of government. Therefore, in accordance with Executive
Order 13132, it is determined that this amendment 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 amendment.
Executive Order 12866
This proposed amendment is exempt from review under Executive Order
12866, but has been reviewed internally by the Department of State to
ensure consistency with the purposes thereof.
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 requirement of section 5 of Executive
Order 13175 does not apply to this rulemaking.
Paperwork Reduction Act
This proposed amendment does not impose any new reporting or
recordkeeping requirements subject to the Paperwork Reduction Act, 44
U.S.C. Chapter 35.
List of Subjects
22 CFR Parts 124 and 129
Arms and munitions, Exports, Technical assistance.
22 CFR Part 126
Arms and munitions, Exports.
Accordingly, for the reasons set forth above, Title 22, Chapter I,
Subchapter M, parts 124, 126, and 129 are proposed to be amended as
follows:
PART 124--AGREEMENTS, OFF-SHORE PROCUREMENT AND OTHER DEFENSE
SERVICES
1. The authority citation for part 124 is revised to read as
follows:
Authority: Secs. 2, 38, and 71, Pub. L. 90-629, 90 Stat. 744
(22 U.S.C. 2752, 2778, 2797); E.O. 11958, 42 FR 4311; 3 CFR, 1977
Comp., p. 79; 22 U.S.C. 2651a; 22 U.S.C. 2776; Pub. L. 105-261.
2. Section 124.1 is amended by revising paragraph (a) to read as
follows:
Sec. 124.1 Manufacturing license agreements and technical assistance
agreements.
(a) Approval. The approval of the Directorate of Defense Trade
Controls must be obtained before the defense services described in
Sec. 120.9(a) of this subchapter may be furnished. In order to obtain
such approval, the U.S. person must submit a proposed agreement to the
Directorate of Defense Trade Controls. Such agreements are generally
characterized as manufacturing license agreements, technical assistance
agreements, distribution agreements, or off-shore procurement
agreements, and may not enter into force without the prior written
approval of the Directorate of Defense Trade Controls. Once approved,
the defense services described in the agreements may generally be
provided without further licensing in accordance with Sec. Sec. 124.3
and 125.4(b)(2) of this subchapter. The requirements of this section
apply whether or not technical data is to be disclosed or used in the
performance of the defense services described in Sec. 120.9(a) of this
subchapter (e.g., all the information relied upon by the U.S. person in
performing the defense service is in the public domain or is otherwise
exempt from licensing requirements of this subchapter pursuant to Sec.
125.4 of this subchapter). This requirement also applies to the
training of any foreign military forces, regular and irregular, in the
use of defense articles. Technical assistance agreements must be
submitted in such cases. In exceptional cases, the Directorate of
Defense Trade Controls, upon written request, will consider approving
the provision of defense services described in Sec. 120.9(a) of this
subchapter by granting a license under part 125 of this subchapter.
* * * * *
PART 126--GENERAL POLICIES AND PROVISIONS
3. The authority citation for part 126 continues to read as
follows:
Authority: Secs. 2, 38, 40, 42 and 71, Pub. L. 90-629, 90 Stat.
744 (22 U.S.C. 2752, 2778, 2780, 2791 and 2797); E.O. 11958, 42 FR
4311; 3 CFR, 1977 Comp., p. 79; 22 U.S.C. 2651a; 22 U.S.C. 287c;
E.O. 12918, 59 FR 28205; 3 CFR, 1994 Comp., p. 899; Sec. 1225, Pub.
L. 108-375.
Sec. 126.8 [Removed and Reserved]
4. Section 126.8 is removed and reserved.
5. Section 126.13 is amended by revising paragraph (a) to read as
follows:
Sec. 126.13 Required information.
(a) All applications for licenses (DSP-5, DSP-61, DSP-73, and DSP-
85), all requests for approval of agreements and amendments thereto
under part 124 of this subchapter, and all requests for written
authorizations must include a letter signed by a responsible official
empowered by the applicant and addressed to the Directorate of Defense
Trade Controls, stating whether:
* * * * *
PART 129--REGISTRATION AND LICENSING OF BROKERS
6. The authority citation for part 129 is revised to read as
follows:
Authority: Sec. 38, Pub. L. 104-164, 110 Stat. 1437, (22 U.S.C.
2778).
Sec. 129.8 [Amended]
7. Section 129.8 is amended by removing paragraph (c).
Dated: March 3, 2010.
Ellen O. Tauscher,
Under Secretary, Arms Control and International Security, Department of
State.
[FR Doc. 2010-6905 Filed 3-26-10; 8:45 am]
BILLING CODE 4710-25-P