[Federal Register Volume 76, Number 37 (Thursday, February 24, 2011)]
[Proposed Rules]
[Pages 10291-10295]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-3878]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF STATE
22 CFR Parts 120, 122, 123 and 129
[Public Notice 7338]
RIN 1400-AC74
Amendment to the International Traffic in Arms Regulations:
Electronic Payment of Registration Fees; 60-Day Notice of the Proposed
Statement of Registration Information Collection
AGENCY: Department of State.
ACTION: Proposed rule and information collection; request for comments.
-----------------------------------------------------------------------
SUMMARY: The Department of State is proposing to amend the
International Traffic in Arms Regulations (ITAR) to change the method
of payment to electronic submission of registration fees. Definitions
for ``Foreign Ownership'' and ``Foreign Control'' are to be added.
Pursuant to the Paperwork Reduction Act, public comment is requested on
the Statement of Registration, the form used for the submission of the
registration fee.
DATES: The Department of State will accept comments on this proposed
rule until April 25, 2011.
ADDRESSES: Interested parties may submit comments within 60 days of the
date of the publication by any of the following methods (for those
seeking to submit comments regarding the information collection aspect
of the Statement of Registration, contact information is supplied
below):
E-mail: [email protected] with the subject line,
``Electronic Payment of Registration Fees.''
Mail: PM/DDTC, SA-1, 13th Floor, Directorate of Defense
Trade Controls, Office of Defense Trade Controls Compliance, Attn:
Electronic Payment of Registration Fees, Bureau of Political Military
Affairs, U.S. Department of State, Washington, DC 20522-0112.
Persons with access to the Internet may also view and
comment on this notice by searching for its RIN on the U.S. Government
regulations Web site at http://regulations.gov/index.cfm.
FOR FURTHER INFORMATION CONTACT: Lisa V. Studtmann, Director, Office of
Defense Trade Controls Compliance,
[[Page 10292]]
Directorate of Defense Trade Controls, Department of State, 2401 E
Street, NW., SA-1, Room H1200, Washington, DC 200522-0112; Telephone
202-663-2477 or Fax 202-261-8198; or e-mail through
[email protected], with the subject line, ``Electronic Payment
of Registration Fees.''
SUPPLEMENTARY INFORMATION: The Directorate of Defense Trade Controls
(DDTC) is responsible for the collection of registration fees from
persons in the business of manufacturing, exporting, and/or brokering
defense articles or defense services.
To date, registration fees have been received by check or money
order and processed manually. The collection of electronic payments
will simplify the collection and verification of payments, eliminate
the need to manually process and collect returned payments, and
eliminate the possibility of lost payments.
Section 122.2(a) is to be revised to provide for electronic payment
as the sole means of registration fee submission. The form used for
obtaining registration, the DS-2032 (Statement of Registration), has
been revised to reflect that fee payments are to be made
electronically. Additionally, the certifications previously required
through the transmittal letter referenced in Sec. 122.2(b) of the ITAR
have been incorporated into the revised DS-2032. Consequently, Sec.
122.2(b) no longer will address a separate transmittal letter, but will
address certain certifications to be made on the Statement of
Registration that used to be provided via the transmittal letter. The
new Sec. 122.2(b) title will be ``Statement of Registration
Certification.'' Definitions for ``ownership'' and ``control'' have
been removed from part 122 by the removal of Sec. 122.2(c).
Definitions for ``Foreign Ownership'' and ``Foreign Control'' are to
constitute the new Sec. 120.37.
Section 122.3(a) is to be revised to remove reference to the
transmittal letter.
The proposed revision to Sec. 129.4(a) is in line with the
proposed change in part 122 regarding the provision of electronic
payment of registration fees. References to the transmittal letter are
to be removed from Sec. Sec. 129.4(a) and (b).
Title and number of the registration form is to be corrected in
Sec. 120.28(a)(2), and Sec. 123.16(b)(9) is to be revised to correct
a reference to Sec. 122.2(c) and replace it with a reference to
proposed Sec. 120.37.
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. Nevertheless, it is being published
as a Notice of Proposed Rule Making, with a 60-day public comment
period.
Regulatory Flexibility Act
Since this proposed amendment is not subject to the notice-and-
comment procedures of 5 U.S.C. 553, it does not require 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.
Executive Order 13175
The Department has determined that this proposed rulemaking will
not have tribal implications, will not impose substantial direct
compliance costs on Indian tribal governments, and will not pre-empt
tribal law. Accordingly, the requirements of Section 5 of Executive
Order 13175 do not apply to his proposed rulemaking.
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 proposed 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
The 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 12988
The Department of State has reviewed the proposed amendment in
light of sections 3(a) and 3(b)(2) of Executive Order 12988 to
eliminate ambiguity, minimize litigation, establish clear legal
standards, and reduce burden.
Paperwork Reduction Act
The Paperwork Reduction Act requires all Federal agencies to
analyze proposed regulations for potential time burdens on the
regulated community created by provisions in the proposed regulations,
which require the submission of information. The information collection
requirements must be submitted to the Office of Management and Budget
(OMB) for approval. Persons are not required to respond to a collection
of information unless it displays a currently valid OMB control number
or is exempt from the PRA.
As part of its continuing effort to reduce paperwork and respondent
burden, the Department of State proposes to change the reporting
requirement on the DS-2032, Statement of Registration. This notice
serves to inform the general public and Federal agencies of the
opportunity to comment on this information collection in accordance
with the Paperwork Reduction Act of 1995 (PRA) (44 U.S.C. 3501 et
seq.). This helps to ensure that the public understands the
Department's collection instructions, respondents provide the requested
data in the desired format, reporting burden (time and financial
resources) is minimized, collection instruments are clearly understood,
and the Department can properly assess the impact of collection
requirements on respondents.
The information collection (IC) requirements for the current
Statement of Registration are approved under OMB control number 1405-
0002.
Abstract of Proposed Collection
The export, temporary import, temporary export and brokering of
defense articles, defense services, and related technical data are
licensed by the Directorate of Defense Trade Controls (DDTC) in
accordance with the International Traffic in Arms Regulations
(``ITAR,'' 22 CFR parts 120-
[[Page 10293]]
130) and Section 38 of the Arms Export Control Act (AECA). Those who
manufacture or export defense articles, furnish defense services, or
engage in brokering activities, must register with the Department of
State. We are soliciting public comments to permit the Department to:
Evaluate whether the proposed information collection is
necessary for the proper performance of our functions.
Evaluate the accuracy of our estimate of the burden of the
proposed collection, including the validity of the methodology and
assumptions used.
Enhance the quality, utility, and clarity of the
information to be collected.
Minimize the reporting burden on those who are to respond,
including the use of automated collection techniques or other forms of
technology.
Methodology
Currently, the ITAR, Sec. 122.2(b), requires the respondent to
provide separate correspondence (via a ``transmittal letter,'' to
accompany the DS-2032, Statement of Registration, submission)
certifying criminal history, eligibility, and foreign ownership. Often,
this mandate was overlooked by the respondent, resulting in the return
without action of the incomplete application. The revised DS-2032
incorporates these certifications within the form, only requiring the
user to select the appropriate response with a single click and
providing the option to provide a response within the form.
The Department proposes to change other reporting requirements on
the DS-2032. The DS-2032 was modified to include additional data fields
necessary to match electronic payment to the DS-2032. Whereas payments
will be received electronically, respondents will continue submitting
the DS-2032 in paper format. New data elements specific to electronic
payment were not previously required on the DS-2032 because such
information is visible on U.S. and foreign bank drafts.
Additionally, data elements were added to ensure clarification
during analysis as well as standardization of responses. Specifically,
necessary information is listed in the form, only requiring the
respondent to make a selection by simply clicking the applicable
checkbox. Country and state information is now listed via a pick list
requiring a selection rather than manual insertion of information. This
enhancement eliminates typographical errors and the misinterpretation
of information requested which often results in the submission of
incorrect information.
With these proposed changes, the estimated burden time for
completion will be reduced from two (2) hours to one (1) hour.
This proposed change does not impose any new recordkeeping
requirements.
Summary of Proposed Collection: The Department of State is seeking
Office of Management and Budget (OMB) approval for the information
collection described below. The purpose of this notice is to allow 60
days for public comment in the Federal Register. We are conducting this
process in accordance with the Paperwork Reduction Act of 1995.
Title of Information Collection: DS-2032 Statement of
Registration.
OMB Control Number: 1405-0002.
Type of Request: Approved of Information Collection.
Originating Office: Bureau of Political-Military Affairs,
Directorate of Defense Trade Controls, PM/DDTC.
Form Number: DS-2032.
Respondents: Business and Nonprofit Organizations.
Estimated Number of Respondents: 10,435.
Estimated Number of Responses: 9,600.
Average Hours Per Response: 1 hours.
Total Estimated Burden: 9,600 hours.
Frequency: Annually and On Occasion.
Obligation to Respond: Mandatory.
Comments from the public on the information collection may be
submitted to OMB up to 60 days after February 24, 2011.
Comments should be sent to the Department of State Desk Officer in
the Office of Management and Budget (OMB) at the Office of Information
and Regulatory Affairs. Comments may be submitted to OMB by the
following methods:
E-mail: [email protected]. You must include the
DS form number, information collection title, and OMB control number in
the subject line of your message.
Fax: 202-395-5806. Attention: Desk Officer for Department
of State.
OMB requests that comments be received within 60 days of
publication of the Proposed Rule to ensure their consideration. Please
note that comments submitted to OMB are a matter of public record. You
must include the DS form number (if applicable), information collection
title, and OMB control number in any correspondence.
Direct requests for additional information regarding the collection
listed in this notice, including requests for copies of the proposed
information collection and supporting documents, to Tanya Phillips,
Bureau of Political Military Affairs, U.S. Department of State, SA-1,
12th Floor, Washington, DC 20522, who may be reached on (202) 663-2825
or [email protected].
List of Subjects in 22 CFR Part 120, 122, 123 and 129
Arms and munitions, Registration, Exports, Brokering.
Accordingly, for the reasons set forth above, Title 22, Chapter I,
Subchapter M, parts 120, 122, 123, and 129 are proposed to be amended
as follows:
PART 120--PURPOSE AND DEFINITIONS
1. The authority citation for part 120 continues to read as
follows:
Authority: Secs. 2, 38, and 71, Pub. L. 90-629, 90 Stat. 744
(22 U.S.C. 2752, 2778, 2797); 22 U.S.C. 2794; E.O. 11958, 42 FR
4311; E.O. 13284, 68 FR 4075; 3 CFR, 1977 Comp. p. 79; 22 U.S.C.
2651a; Pub. L. 105-261, 112 Stat. 1920.
2. Section 120.28(a)(2) is revised to read as follows:
Sec. 120.28 Listing of forms referred to in this subchapter.
* * * * *
(a) * * *
(2) Statement of Registration (Form DS-2032).
* * * * *
3. Sections 120.33 through Sec. 120.36 are added and reserved, and
a new Sec. 120.37 is added to read as follows:
Sec. 120.33 [Reserved]
Sec. 120.34 [Reserved]
Sec. 120.35 [Reserved]
Sec. 120.36 [Reserved]
Sec. 120.37 Foreign ownership and foreign control.
Foreign ownership means more than 50 percent of the outstanding
voting securities of the firm are owned by one or more foreign persons
(as defined in Sec. 120.16). Foreign control means 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. Foreign control
is presumed to exist where foreign persons own 25 percent or more of
the outstanding voting securities unless one U.S. person controls an
equal or larger percentage.
[[Page 10294]]
PART 122--REGISTRATION OF MANUFACTURERS AND EXPORTERS
4. The authority citation for part 122 continues to read as
follows:
Authority: Secs. 2 and 38, Public Law 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. 2651a.
5. Section 122.2 is revised to read as follows:
Sec. 122.2 Submission of registration statement.
(a) General. An intended registrant must submit a Department of
State Form DS-2032 (Statement of Registration) to the Office of Defense
Trade Controls Compliance by registered or overnight mail delivery, and
must submit an electronic payment via Automated Clearing House (ACH)
payable to the Department of State of one of the fees prescribed in
Sec. 122.3(a) of this subchapter. Automated Clearing House is an
electronic network used to process financial transactions in the United
States. Intended registrants should access DDTC's Web site at http://www.pmddtc.state.gov for detailed guidelines on submitting an ACH
electronic payment. Electronic payments must be in U.S. currency and
must be payable through a U.S. financial institution. Cash, checks,
foreign currency or money orders will not be accepted. In addition, the
Statement of Registration must be signed by a senior officer (e.g.,
Chief Executive Officer, President, Secretary, Partner, Member,
Treasurer, General Counsel) 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 is incomplete either by notifying the
registrant of what information is required or through the return of the
entire registration package. Registrants may not establish new entities
for the purpose of reducing registration fees.
(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, chief executive officer,
president, vice presidents, other senior officers or officials (e.g.,
Comptroller, Treasurer, General Counsel) or any member of the board of
directors:
(i) Has ever been indicted for or convicted of violating any of the
U.S. criminal statutes enumerated in Sec. 120.27 of this subchapter;
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.
(2) Whether the intended registrant is foreign owned or foreign
controlled (see Sec. 120.37). If the intended registrant is foreign
owned or foreign controlled, the certification shall also include
whether the intended registrant is incorporated or otherwise authorized
to engage in business in the United States.
6. Section 122.3 is amended by revising paragraph (a) introductory
text to read as follows:
Sec. 122.3 Registration fees.
(a) A person who is required to register must do so on an annual
basis upon submission of a completed Form DS-2032 and payment of a fee
as follows:
* * * * *
PART 123--LICENSES FOR THE EXPORT OF DEFENSE ARTICLES
7. The authority citation for part 123 continues to read as
follows:
Authority: Secs. 2, 38, and 71, Pub. L. 90-629, 90 Stat. 744
(22 U.S.C. 2752, 2778, 2797); 22 U.S.C. 2753; 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, 112 Stat. 1920; Sec. 1205(a), Pub. L. 107-228.
8. Section 123.16 is amended by revising paragraph (b)(9)
introductory text to read as follows:
Sec. 123.16 Exemptions of general applicability.
* * * * *
(b) * * *
(9) Port Directors of U.S. Customs and Border Protection shall
permit the temporary export without a license by a U.S. person of any
unclassified component, part, tool or test equipment to a subsidiary,
affiliate or facility owned or controlled by the U.S. person (see Sec.
120.37 of this subchapter for definition of foreign ownership and
foreign control) if the component, part, tool or test equipment is to
be used for manufacture, assembly, testing, production, or modification
provided:
* * * * *
PART 129--REGISTRATION AND LICENSING OF BROKERS
9. 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).
10. Section 129.4 is amended by revising paragraphs (a) and (b) to
read as follows:
Sec. 129.4 Registration statement and fees.
(a) General. An intended registrant must submit to the Department
of State Form DS-2032 (Statement of Registration) by registered or
overnight mail delivery to the Office of Defense Trade Controls
Compliance, and must submit an electronic payment via Automated
Clearing House (ACH) or Society for Worldwide Interbank Financial
Telecommunications (SWIFT), payable to the Department of State of the
fees prescribed in Sec. 122.3(a) of this subchapter. Automated
Clearing House (ACH) is an electronic network used to process financial
transactions originating from within the United States and SWIFT is the
messaging service used by financial institutions worldwide to issue
international transfers for foreign accounts. Payment methods (i.e.,
ACH and SWIFT) are dependent on the source of the funds (U.S. or
foreign bank) drawn from the applicant's account. The originating
account must be the registrant's account and not a third party's.
Intended registrants should access DDTC's Web site at http://www.pmddtc.state.gov for detailed guidelines on submitting ACH and
SWIFT electronic payments. Payments, including from foreign brokers,
must be in U.S. currency, payable through a U.S. financial institution.
Cash, checks, foreign currency or money orders will not be accepted.
The Statement of Registration must be signed by a senior officer (e.g.,
Chief Executive Officer, President, Secretary, Partner, Member,
Treasurer, General Counsel) who has been empowered by the intended
registrant to sign such documents. The intended registrant, whether a
U.S. or foreign person, shall submit documentation that demonstrates it
is incorporated or otherwise authorized to do business in its
respective country. Foreign persons who are required to register shall
provide information that is substantially similar in content to that
which a U.S. person would provide under this provision (e.g., foreign
business license or similar authorization to do business). 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. Registrants may not establish new entities
for the purpose of reducing registration fees.
[[Page 10295]]
(b) A person registering as a broker who is already registered as a
manufacturer or exporter in accordance with part 122 of this subchapter
must cite their existing manufacturer or exporter registration, and
must pay an additional fee according to the schedule prescribed in
Sec. 122.3(a) for registration as a broker.
* * * * *
Dated: January 20, 2011.
Ellen O. Tauscher,
Under Secretary, Arms Control and International Security, Department of
State.
[FR Doc. 2011-3878 Filed 2-23-11; 8:45 am]
BILLING CODE 4710-25-P