International Traffic in Arms Regulations: Electronic Payment of Registration Fees, 45195-45198 [2011-19115]
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Federal Register / Vol. 76, No. 145 / Thursday, July 28, 2011 / Rules and Regulations
(d)(2) of this section and we uphold our
finding, the non-attorney representative
will be ineligible to receive direct fee
payment beginning with the month after
the month we uphold our finding.
(3) If an eligible non-attorney
representative does not protest, in
accordance with paragraph (d)(2) of this
section, our finding about the criteria in
paragraph (a)(6) of this section, the nonattorney representative will be ineligible
to receive direct fee payment for 6 full
calendar months beginning with the
month after the month the protest
period ends. If the eligible non-attorney
representative protests in accordance
with paragraph (d)(2) of this section and
we uphold our finding, the non-attorney
representative will be ineligible to
receive direct fee payment for 6 full
calendar months beginning with the
month after the month we uphold our
finding. In either case, the non-attorney
representative may provide us with
documentation that he or she has
acquired and maintains the required
liability insurance coverage described in
paragraph (a)(6) of this section, no
earlier than the sixth month of the
ineligibility. The non-attorney
representative will again be eligible to
receive direct fee payment beginning in
the first month after the month we find
that we have received sufficient
documentation that the non-attorney
representative meets the requirements of
paragraph (a)(6) of this section.
(4) If an eligible non-attorney
representative does not protest, in
accordance with paragraph (d)(2) of this
section, our finding about the criteria in
paragraph (a)(7) of this section, the nonattorney representative will be ineligible
to receive direct fee payment for 6 full
calendar months beginning with the
month after the month the protest
period ends. If the eligible non-attorney
representative protests in accordance
with paragraph (d)(2) of this section and
we uphold our finding, the non-attorney
will be ineligible to receive direct fee
payment for 6 full calendar months
beginning with the month after the
month we uphold our finding. In either
case, the non-attorney representative
may provide us with documentation
that he or she has satisfied the criteria
in paragraph (a)(7) of this section at any
time. The non-attorney representative
will again be eligible to receive direct
fee payment beginning in the first
month after the month we find that we
have received sufficient documentation,
but not earlier than the month following
the end of the 6 month ineligibility
period.
(f) Reapplying. A representative may
reapply to become eligible to receive
direct fee payment under paragraph (a)
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of this section during any subsequent
application period if he or she:
(1) Did not meet the initial criteria for
eligibility in paragraphs (a)(1), (2), (3),
and (5) of this section in a prior
application period; or
(2) Failed to timely correct a defective
application in a prior application period
as described in paragraph (b) of this
section.
■ 13. Amend § 416.1520 by revising
paragraph (b)(4) to read as follows:
§ 416.1520
services.
Fee for a representative’s
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(b) * * *
(4) If your representative is an
attorney or an eligible non-attorney, and
you are entitled to past-due benefits, we
will pay the authorized fee, or a part of
the authorized fee, directly to the
attorney or eligible non-attorney out of
the past-due benefits, subject to the
limitations described in
§ 416.1530(b)(1). If the representative is
a non-attorney who is ineligible to
receive direct fee payment, we assume
no responsibility for the payment of any
fee that we have authorized.
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■ 14. Amend § 416.1530 by revising the
first sentence of paragraph (a), heading
and introductory text of paragraph
(b)(1), heading and the first sentence of
paragraph (b)(2), heading of paragraph
(c), and paragraph (c)(1) to read as
follows:
§ 416.1530
Payment of fees.
(a) Fees allowed by a Federal court.
We will pay an attorney representative
out of your past-due benefits the amount
of the fee allowed by a Federal court in
a proceeding under title XVI of the Act.
* * *
(b) Fees we may authorize—
(1) Attorneys and eligible nonattorneys. Except as provided in
paragraph (c) of this section, if we make
a determination or decision in your
favor and you were represented by an
attorney or an eligible non-attorney, and
as a result of the determination or
decision you have past-due benefits, we
will pay the representative out of the
past-due benefits, the smallest of the
amounts in paragraphs (b)(1)(i) through
(iii) of this section, less the amount of
the assessment described in paragraph
(d) of this section.
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(2) Non-attorneys ineligible for direct
payment. If the representative is a nonattorney who is ineligible to receive
direct payment of his or her fee, we
assume no responsibility for the
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payment of any fee that we authorized.
* * *
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(c) Time limit for filing request for
approval of fee to obtain direct
payment. (1) To receive direct fee
payment from your past-due benefits, a
representative who is an attorney or an
eligible non-attorney should file a
request for approval of a fee, or written
notice of the intent to file a request, at
one of our offices, or electronically at
the times and in the manner that we
prescribe if we give notice that such a
method is available, within 60 days of
the date we mail the notice of the
favorable determination or decision.
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[FR Doc. 2011–19026 Filed 7–27–11; 8:45 am]
BILLING CODE 4191–02–P
DEPARTMENT OF STATE
22 CFR Parts 120, 122, 123, and 129
RIN 1400–AC74
[Public Notice 7538]
International Traffic in Arms
Regulations: Electronic Payment of
Registration Fees
Department of State.
Final rule.
AGENCY:
ACTION:
The Department of State is
amending the International Traffic in
Arms Regulations (ITAR) to change the
method of payment to electronic
submission of registration fees. The
institution of the electronic submission
of registration fees 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. Definitions for ‘‘Foreign
Ownership’’ and ‘‘Foreign Control’’ are
also added.
DATES: Effective Date: This rule is
effective September 26, 2011.
FOR FURTHER INFORMATION CONTACT: Lisa
V. Aguirre, Director, Office of Defense
Trade Controls Compliance, Directorate
of Defense Trade Controls, Department
of State, 2401 E Street, NW., SA–1,
Room H1200, Washington, DC 20522–
0112; telephone 202–632–2798 or fax
202–632–2878; or e-mail through
DDTCResponseTeam@state.gov, 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,
SUMMARY:
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and/or brokering defense articles or
defense services.
Previously, registrants submitted
registration fees to DDTC by check or
money order, and these payments were
processed manually. The institution of
the electronic submission of registration
fees 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 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 § 122.2(b) of the ITAR are
incorporated into the revised DS–2032.
Consequently, § 122.2(b) no longer
requires a separate transmittal letter;
rather, it addresses certain certifications
to be made on the Statement of
Registration that previously were
provided via the transmittal letter. The
new § 122.2(b) title will be ‘‘Statement
of Registration Certification.’’
Definitions for ‘‘ownership’’ and
‘‘control’’ are removed from part 122 by
the removal of § 122.2(c). Definitions for
‘‘Foreign Ownership’’ and ‘‘Foreign
Control’’ constitute the new § 120.37.
Section 122.3(a) is revised to remove
reference to the transmittal letter.
The revision to § 129.4(a) is in line
with the change in part 122 regarding
the provision of electronic payment of
registration fees. References to the
transmittal letter are removed from
§§ 129.4(a) and (b).
Title and number of the registration
form is corrected in § 120.28(a)(2), and
§ 123.16(b)(9) is revised to correct a
reference to § 122.2(c) and replace it
with a reference to § 120.37.
This rule was first presented as a
proposed rule for public comment on
February 24, 2011. That comment
period ended April 25, 2011. No
comments pertinent to this rule were
received.
Having thoroughly reviewed and
evaluated the rule, the Department has
determined that it will accept, and
hereby does adopt, the proposed rule as
a final rule.
rmajette on DSK89S0YB1PROD with RULES
Regulatory Analysis and Notices
Administrative Procedure Act
The Department of State is of the
opinion that controlling the import and
export of defense articles and services is
a foreign affairs function of the United
States Government and that rules
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implementing this function are exempt
from § 553 (Rulemaking) and § 554
(Adjudications) of the Administrative
Procedure Act. Although the
Department is of the opinion that this
rule is exempt from the rulemaking
provisions of the APA, the Department
published this rule with a 60-day
provision for public comment and
without prejudice to its determination
that controlling the import and export of
defense services is a foreign affairs
function.
Regulatory Flexibility Act
Since this 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 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 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 Executive Order 13175
do not apply to this rulemaking.
Small Business Regulatory Enforcement
Fairness Act of 1996
This 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 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
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Federal programs and activities do not
apply to this amendment.
Executive Order 12866
The Department of State does not
consider this rule to be a ‘‘significant
regulatory action’’ under Executive
Order 12866, section 3(f), Regulatory
Planning and Review. The Department
is of the opinion that controlling the
import and export of defense articles
and services is a foreign affairs function
of the United States Government and
that rules governing the conduct of this
function are exempt from the
requirements of Executive Order 12866.
Executive Order 13563
The Department of State has
considered this rule in light of
Executive Order 13563, dated January
18, 2011, and affirms that this regulation
is consistent with the guidance therein.
Executive Order 12988
The Department of State has reviewed
the 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 information collection (IC)
requirements for the current Statement
of Registration (Department of State
form DS–2032) are approved under
Office of Management and Budget
(OMB) control number 1405–0002. This
rule imposes new reporting
requirements subject to the Paperwork
Reduction Act, 44 U.S.C. chapter 35.
The Department published a notice in
the Federal Register (76 FR 10291, with
correction at 76 FR 16588) soliciting
public comments on the revised
information collection and notifying the
public that this collection was
submitted to OMB for review and
approval. No comments pertinent to this
rule were received.
Formerly, the ITAR, § 122.2(b),
required 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 click
on the appropriate response.
Other changes to the Statement of
Registration include additional data
fields necessary to match electronic
payment to the form. Whereas payments
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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 are 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
clicking the applicable checkbox rather
than manually entering the information.
This enhancement eliminates
typographical errors and the
misinterpretation of information
requested, which often results in the
submission of incorrect information.
With these changes, the estimated
burden time for completion of the DS–
2032 is reduced from two hours to one
hour.
List of Subjects in 22 CFR Parts 120,
122, 123, and 129
Arms and munitions, Registration,
Exports, Brokering.
Accordingly, for the reasons set forth
in the preamble, Title 22, Chapter I,
Subchapter M, parts 120, 122, 123, and
129 are 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. In § 120.28, paragraph (a)(2) is
revised to read as follows:
■
§ 120.28 Listing of forms referred to in this
subchapter.
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(a) * * *
(2) Statement of Registration (Form
DS–2032).
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§§ 120.33–120.36
[Reserved]
3. Part 120 is amended by reserving
§§ 120.33 through 120.36 and adding
§ 120.37 to read as follows:
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■
§ 120.37
control.
Foreign ownership and foreign
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
§ 120.16). Foreign control means one or
more foreign persons have the authority
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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.
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:
■
§ 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 payable to the
Department of State of one of the fees
prescribed in § 122.3(a) of this
subchapter. Automated Clearing House
(ACH) is an electronic network used to
process financial transactions in the
United States. Intended registrants
should access the Directorate of Defense
Trade Control’s Web site at https://
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
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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 § 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
§ 120.37 of this subchapter). 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:
■
§ 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:
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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:
■
§ 123.16 Exemptions of general
applicability.
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(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 § 120.37 of this subchapter for
definition of foreign ownership and
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foreign control) if the component, part,
tool or test equipment is to be used for
manufacture, assembly, testing,
production, or modification provided:
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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:
■
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§ 129.4
Registration statement and fees.
(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) or Society for
Worldwide Interbank Financial
Telecommunications (SWIFT), payable
to the Department of State of the fees
prescribed in § 122.3(a) of this
subchapter. Automated Clearing House
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 account. Intended
registrants should access the Directorate
of Defense Trade Control’s Web site at
https://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.
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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.
(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 § 122.3(a) of this
subchapter for registration as a broker.
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Dated: July 20, 2011.
Ellen O. Tauscher,
Under Secretary, Arms Control and
International Security, Department of State.
[FR Doc. 2011–19115 Filed 7–27–11; 8:45 am]
BILLING CODE 4710–25–P
DEPARTMENT OF THE INTERIOR
Bureau of Indian Affairs
25 CFR Part 15
Office of the Secretary
43 CFR Parts 4, 30
[Docket ID BIA–2009–0001]
RIN 1076–AF07
Indian Trust Management Reform—
Implementation of Statutory Changes
Bureau of Indian Affairs, Office
of the Secretary, Interior.
ACTION: Final rule; confirmation.
AGENCY:
The Office of the Secretary of
the Department of the Interior and
Bureau of Indian Affairs (collectively,
the Department) are confirming the
interim final rule published and
effective on February 10, 2011, to
implement the latest statutory changes
to the Indian Land Consolidation Act, as
amended by the 2004 American Indian
Probate Reform Act and later
amendments (ILCA/AIPRA). The
February 10, 2011, publication stated
that the Department would review
comments on the interim final rule and
either confirm the rule or initiate a
proposed rulemaking. The Department
did not receive any adverse comments,
and therefore confirms the rule without
change.
SUMMARY:
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The February 10, 2011, effective
date of the interim final rule is
confirmed.
DATES:
FOR FURTHER INFORMATION CONTACT:
Michele Singer, Office of Regulatory
Affairs & Collaborative Action, U.S.
Department of the Interior, 1001 Indian
School Road, NW., Suite 312,
Albuquerque, NM 87104, phone: (505)
563–3805; fax: (505) 563–3811; e-mail:
Michele.Singer@bia.gov.
On
February 10, 2011, the Department
published an interim final rule (76 FR
7500), under Docket No. BIA–2009–001,
to implement the latest statutory
changes to ILCA/AIPRA. The rule’s
changes primarily affect the probate of
permanent improvements owned by a
decedent that are attached to trust or
restricted property owned by the
decedent. These changes also affect the
purchase of small fractional interests at
probate by restricting who may
purchase without consent and what
interests may be purchased without
consent.
The Department stated in the interim
final rule that it would address
comments received and, by a future
publication in the Federal Register,
confirm the interim final rule, with or
without change, or initiate a proposed
rulemaking.
The Department received one
comment that expressly indicated it was
not a substantive criticism of the rule,
but requested a definition for the term
‘‘probate.’’ The regulations being
amended by the interim final rule, 25
CFR part 15 and 43 CFR part 30, already
contain a definition of ‘‘probate.’’ See 25
CFR 15.2, 43 CFR 4.201, 30.101.
Consequently, the Department did not
make any change to the interim final
rule as a result of this comment. The
comment also included a suggestion
regarding estate planning that is outside
the scope of the interim final rule.
For these reasons, the Department is
confirming the interim final rule
without change.
SUPPLEMENTARY INFORMATION:
List of Subjects
25 CFR Part 15
Estates, Indians—law.
43 CFR Part 4
Administrative practice and
procedure, Claims, Indians, Lawyers.
43 CFR Part 30
Administrative practice and
procedure, Claims, Estates, Indians,
Lawyers.
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]]>Agencies
[Federal Register Volume 76, Number 145 (Thursday, July 28, 2011)]
[Rules and Regulations]
[Pages 45195-45198]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-19115]
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DEPARTMENT OF STATE
22 CFR Parts 120, 122, 123, and 129
RIN 1400-AC74
[Public Notice 7538]
International Traffic in Arms Regulations: Electronic Payment of
Registration Fees
AGENCY: Department of State.
ACTION: Final rule.
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SUMMARY: The Department of State is amending the International Traffic
in Arms Regulations (ITAR) to change the method of payment to
electronic submission of registration fees. The institution of the
electronic submission of registration fees 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. Definitions for ``Foreign Ownership'' and ``Foreign Control''
are also added.
DATES: Effective Date: This rule is effective September 26, 2011.
FOR FURTHER INFORMATION CONTACT: Lisa V. Aguirre, Director, Office of
Defense Trade Controls Compliance, Directorate of Defense Trade
Controls, Department of State, 2401 E Street, NW., SA-1, Room H1200,
Washington, DC 20522-0112; telephone 202-632-2798 or fax 202-632-2878;
or e-mail through DDTCResponseTeam@state.gov, 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,
[[Page 45196]]
and/or brokering defense articles or defense services.
Previously, registrants submitted registration fees to DDTC by
check or money order, and these payments were processed manually. The
institution of the electronic submission of registration fees 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 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 are
incorporated into the revised DS-2032. Consequently, Sec. 122.2(b) no
longer requires a separate transmittal letter; rather, it addresses
certain certifications to be made on the Statement of Registration that
previously were provided via the transmittal letter. The new Sec.
122.2(b) title will be ``Statement of Registration Certification.''
Definitions for ``ownership'' and ``control'' are removed from part
122 by the removal of Sec. 122.2(c). Definitions for ``Foreign
Ownership'' and ``Foreign Control'' constitute the new Sec. 120.37.
Section 122.3(a) is revised to remove reference to the transmittal
letter.
The revision to Sec. 129.4(a) is in line with the change in part
122 regarding the provision of electronic payment of registration fees.
References to the transmittal letter are removed from Sec. Sec.
129.4(a) and (b).
Title and number of the registration form is corrected in Sec.
120.28(a)(2), and Sec. 123.16(b)(9) is revised to correct a reference
to Sec. 122.2(c) and replace it with a reference to Sec. 120.37.
This rule was first presented as a proposed rule for public comment
on February 24, 2011. That comment period ended April 25, 2011. No
comments pertinent to this rule were received.
Having thoroughly reviewed and evaluated the rule, the Department
has determined that it will accept, and hereby does adopt, the proposed
rule as a final rule.
Regulatory Analysis and Notices
Administrative Procedure Act
The Department of State is of the opinion that controlling the
import and export of defense articles and services is a foreign affairs
function of the United States Government and that rules implementing
this function are exempt from Sec. 553 (Rulemaking) and Sec. 554
(Adjudications) of the Administrative Procedure Act. Although the
Department is of the opinion that this rule is exempt from the
rulemaking provisions of the APA, the Department published this rule
with a 60-day provision for public comment and without prejudice to its
determination that controlling the import and export of defense
services is a foreign affairs function.
Regulatory Flexibility Act
Since this 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 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 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 Executive Order 13175 do not apply to
this rulemaking.
Small Business Regulatory Enforcement Fairness Act of 1996
This 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 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
The Department of State does not consider this rule to be a
``significant regulatory action'' under Executive Order 12866, section
3(f), Regulatory Planning and Review. The Department is of the opinion
that controlling the import and export of defense articles and services
is a foreign affairs function of the United States Government and that
rules governing the conduct of this function are exempt from the
requirements of Executive Order 12866.
Executive Order 13563
The Department of State has considered this rule in light of
Executive Order 13563, dated January 18, 2011, and affirms that this
regulation is consistent with the guidance therein.
Executive Order 12988
The Department of State has reviewed the 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 information collection (IC) requirements for the current
Statement of Registration (Department of State form DS-2032) are
approved under Office of Management and Budget (OMB) control number
1405-0002. This rule imposes new reporting requirements subject to the
Paperwork Reduction Act, 44 U.S.C. chapter 35. The Department published
a notice in the Federal Register (76 FR 10291, with correction at 76 FR
16588) soliciting public comments on the revised information collection
and notifying the public that this collection was submitted to OMB for
review and approval. No comments pertinent to this rule were received.
Formerly, the ITAR, Sec. 122.2(b), required 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 click on the appropriate response.
Other changes to the Statement of Registration include additional
data fields necessary to match electronic payment to the form. Whereas
payments
[[Page 45197]]
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 are 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 clicking the applicable checkbox
rather than manually entering the information. This enhancement
eliminates typographical errors and the misinterpretation of
information requested, which often results in the submission of
incorrect information.
With these changes, the estimated burden time for completion of the
DS-2032 is reduced from two hours to one hour.
List of Subjects in 22 CFR Parts 120, 122, 123, and 129
Arms and munitions, Registration, Exports, Brokering.
Accordingly, for the reasons set forth in the preamble, Title 22,
Chapter I, Subchapter M, parts 120, 122, 123, and 129 are amended as
follows:
PART 120--PURPOSE AND DEFINITIONS
0
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.
0
2. In Sec. 120.28, paragraph (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).
* * * * *
Sec. Sec. 120.33-120.36 [Reserved]
0
3. Part 120 is amended by reserving Sec. Sec. 120.33 through 120.36
and adding Sec. 120.37 to read as follows:
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.
PART 122--REGISTRATION OF MANUFACTURERS AND EXPORTERS
0
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.
0
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 payable
to the Department of State of one 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 in the United
States. Intended registrants should access the Directorate of Defense
Trade Control's Web site at https://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 of this subchapter). 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.
0
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
0
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.
0
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
[[Page 45198]]
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
0
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).
0
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 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) 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 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 account. Intended registrants should access the
Directorate of Defense Trade Control's Web site at https://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.
(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) of this subchapter for registration as a broker.
* * * * *
Dated: July 20, 2011.
Ellen O. Tauscher,
Under Secretary, Arms Control and International Security, Department of
State.
[FR Doc. 2011-19115 Filed 7-27-11; 8:45 am]
BILLING CODE 4710-25-P
