International Traffic in Arms Regulations: International Trade Data System, Reporting, 15-19 [2016-31655]

Download as PDF Federal Register / Vol. 82, No. 1 / Tuesday, January 3, 2017 / Rules and Regulations dated October 27, 2014: Airbus Service Bulletin A340–25–5046, Revision 02, dated February 5, 2007. sradovich on DSK3GMQ082PROD with RULES (i) Credit for Previous Actions (1) This paragraph provides credit for the actions required by paragraph (g) of this AD, if those actions were performed before the effective date of this AD using Airbus Service Bulletin A330–25–3534, Revision 01, dated October 23, 2014; or Airbus Service Bulletin A340–25–4349, Revision 01, dated October 27, 2014, as applicable. These service bulletins are not incorporated by reference in this AD. (2) This paragraph provides credit for the actions required by paragraph (h) of this AD, if those actions were performed before the effective date of this AD using the applicable service information specified in paragraphs (i)(2)(i), (i)(2)(ii), and (i)(2)(iii) of this AD. This service information is not incorporated by reference in this AD. (i) Airbus Service Bulletin A340–25–4217, dated October 12, 2004. (ii) Airbus Service Bulletin A340–25–5046, dated October 12, 2004. (iii) Airbus Service Bulletin A340–25– 5046, Revision 01, dated May 11, 2005. (j) Other FAA AD Provisions The following provisions also apply to this AD: (1) Alternative Methods of Compliance (AMOCs): The Manager, International Branch, ANM–116, Transport Airplane Directorate, FAA, has the authority to approve AMOCs for this AD, if requested using the procedures found in 14 CFR 39.19. In accordance with 14 CFR 39.19, send your request to your principal inspector or local Flight Standards District Office, as appropriate. If sending information directly to the International Branch, send it to ATTN: Vladimir Ulyanov, Aerospace Engineer, International Branch, ANM–116, Transport Airplane Directorate, FAA, 1601 Lind Avenue SW., Renton, WA 98057–3356; telephone: 425–227–1138; fax: 425–227– 1149. Information may be emailed to: 9ANM-116-AMOC-REQUESTS@faa.gov. Before using any approved AMOC, notify your appropriate principal inspector, or lacking a principal inspector, the manager of the local flight standards district office/ certificate holding district office. The AMOC approval letter must specifically reference this AD. (2) Contacting the Manufacturer: For any requirement in this AD to obtain corrective actions from a manufacturer, the action must be accomplished using a method approved by the Manager, International Branch, ANM– 116, Transport Airplane Directorate, FAA; or the European Aviation Safety Agency (EASA); or Airbus’s EASA Design Organization Approval (DOA). If approved by the DOA, the approval must include the DOA-authorized signature. (3) Required for Compliance (RC): If any service information contains procedures or tests that are identified as RC, those procedures and tests must be done to comply with this AD; any procedures or tests that are not identified as RC are recommended. Those procedures and tests that are not identified VerDate Sep<11>2014 22:11 Dec 30, 2016 Jkt 241001 as RC may be deviated from using accepted methods in accordance with the operator’s maintenance or inspection program without obtaining approval of an AMOC, provided the procedures and tests identified as RC can be done and the airplane can be put back in an airworthy condition. Any substitutions or changes to procedures or tests identified as RC require approval of an AMOC. (k) Related Information (1) Refer to Mandatory Continuing Airworthiness Information (MCAI) EASA AD 2015–0037, dated March 2, 2015, for related information. This MCAI may be found in the AD docket on the Internet at http:// www.regulations.gov by searching for and locating Docket No. FAA–2015–3631. (2) Service information identified in this AD that is not incorporated by reference is available at the addresses specified in paragraphs (l)(3) and (l)(4) of this AD. (l) Material Incorporated by Reference (1) The Director of the Federal Register approved the incorporation by reference (IBR) of the service information listed in this paragraph under 5 U.S.C. 552(a) and 1 CFR part 51. (2) You must use this service information as applicable to do the actions required by this AD, unless this AD specifies otherwise. (i) Airbus Service Bulletin A330–25–3213, Revision 02, dated August 12, 2016. (ii) Airbus Service Bulletin A330–25–3534, Revision 02, dated May 18, 2015. (iii) Airbus Service Bulletin A340–25– 4217, Revision 01, dated April 25, 2005. (iv) Airbus Service Bulletin A340–25– 4349, Revision 02, dated September 4, 2015. (v) Airbus Service Bulletin A340–25–5046, Revision 02, dated February 5, 2007. (vi) Airbus Service Bulletin A340–25– 5212, Revision 01, dated October 27, 2014. (3) For service information identified in this AD, contact Airbus SAS, Airworthiness Office—EAL, 1 Rond Point Maurice Bellonte, 31707 Blagnac Cedex, France; telephone: +33 5 61 93 36 96; fax: +33 5 61 93 45 80; email: airworthiness.A330-A340@airbus.com; Internet: http://www.airbus.com. (4) You may view this service information at the FAA, Transport Airplane Directorate, 1601 Lind Avenue SW., Renton, WA. For information on the availability of this material at the FAA, call 425–227–1221. (5) You may view this service information that is incorporated by reference at the National Archives and Records Administration (NARA). For information on the availability of this material at NARA, call 202–741–6030, or go to: http:// www.archives.gov/federal-register/cfr/ibrlocations.html. Issued in Renton, Washington, on December 6, 2016. Dionne Palermo, Acting Manager, Transport Airplane Directorate, Aircraft Certification Service. [FR Doc. 2016–30280 Filed 12–30–16; 8:45 am] BILLING CODE 4910–13–P PO 00000 Frm 00011 Fmt 4700 Sfmt 4700 15 DEPARTMENT OF STATE 22 CFR Parts 120, 123, and 126 [Public Notice: 9811] RIN 1400–AE07 International Traffic in Arms Regulations: International Trade Data System, Reporting Department of State. Final rule. AGENCY: ACTION: The Department of State amends the International Traffic in Arms Regulations (ITAR) to enable U.S. Customs and Border Protection (CBP) to implement the International Trade Data System (ITDS), which will allow businesses to electronically submit the data required to import or export cargo, as provided by Executive Order 13659 and the Security and Accountability for Every Port Act of 2006 (SAFE Port Act). DATES: This final rule is effective on December 31, 2016. FOR FURTHER INFORMATION CONTACT: Mr. C. Edward Peartree, Director, Office of Defense Trade Controls Policy, Department of State, telephone (202) 663–2792; email DDTCResponseTeam@ state.gov. ATTN: International Trade Data System, reporting. SUPPLEMENTARY INFORMATION: The Directorate of Defense Trade Controls (DDTC) of the Department of State regulates the export and temporary import of defense-related goods and defense services under the Arms Export Control Act (AECA) and its implementing regulations, the International Traffic in Arms Regulations (ITAR). This rule is being issued to conform DDTC’s regulations to ITDS, ‘‘an electronic information exchange capability, or ‘single window’, through which businesses will transmit data required by participating agencies for the importation or exportation of cargo’’ (Executive Order 13659, Sec. 3, Feb. 19, 2014). Executive Order 13659 requires government-wide implementation of ITDS by December 31, 2016. Additionally, Section 405 of the Security and Accountability for Every Port Act of 2006 (SAFE Port Act) mandates agency participation in ITDS for all Federal agencies that have oversight of imports and exports. A consortium of 47 Federal agencies led by CBP are implementing ITDS. ITDS represents a shift in the way that imports and exports are declared to CBP by importers and exporters engaged in international commerce. Traders will only need to create and submit a single set of data for each import or export, thus significantly reducing the SUMMARY: E:\FR\FM\03JAR1.SGM 03JAR1 16 Federal Register / Vol. 82, No. 1 / Tuesday, January 3, 2017 / Rules and Regulations paperwork and reporting burden currently experienced by importers and exporters. Beginning on December 31, 2016, traders will access the ITDS system via an integrated web portal hosted by CBP. Users may visit https:// www.cbp.gov/trade/automated for more information on the single portal. Through the CBP Partner Government Agency (PGA) program, DDTC promulgated a PGA Message Set that requires traders to enter data relevant to DDTC’s jurisdiction. Beginning December 31, 2016, when declaring permanent or temporary exports and/or temporary imports of defense articles controlled by the U.S. Munitions List (USML), traders will input data relevant to DDTC in CBP’s electronic system(s). CBP will transmit the relevant shipment details to DDTC via an electronic data exchange, eliminating the need for traders to notify DDTC separately. This rule amends pertinent provisions throughout the ITAR to reflect this new submission mechanism and allow for successor systems to be put in place. This rule will make the following changes to the ITAR (22 CFR parts 120– 130): Section 120.28—Listing of Forms Referred to in This Subchapter Section 120.28 is revised to strike the reference to the Automated Export System and add, in its place, ‘‘U.S. Customs and Border Protection’s electronic system(s)’’. Section 120.30—The Automated Export System (AES) Section 120.30 is removed and reserved. Section 123.4—Temporary Import License Exemptions Section 123.4(d)(2) is revised to strike the reference to the Automated Export System (AES) and add, in its place, instructions to electronically file information with CBP. Section 123.5—Temporary Export Licenses sradovich on DSK3GMQ082PROD with RULES Section 123.5(b) is revised to update certain reporting procedures and to clarify that license information will be submitted to CBP electronically. Section 123.16—Exemptions of General Applicability Sections 123.16(b)(4) and (5) are revised to clarify that certifications will be sent to CBP electronically and not via hard copy. VerDate Sep<11>2014 22:11 Dec 30, 2016 Jkt 241001 Section 123.17—Exports of Firearms, Ammunition, and Personal Protective Gear All references to AES in § 123.17 are struck and, in their place, instructions to electronically file with CBP are inserted. Additionally, § 123.17(g)(2) and (h) are revised to update certain documentation procedures. Section 123.22—Filing, Retention, and Return of Export Licenses and Filing of Export Information Section 123.22 of the ITAR is revised by making certain grammatical changes and to clarify procedures for the electronic reporting of exports and temporary imports of defense articles, services, and technical data pursuant to a license or other approval. All references to AES in § 123.22 are struck and, in their place, instructions to electronically file with CBP are inserted. Section 123.22(a) is revised to clarify electronic reporting procedures for exports. Paragraphs (a)(1) and (a)(2) are also revised for clarification of certain procedures. Section 123.22(b)(2) is revised to clarify that emergency shipment data shall no longer be required to be sent directly to DDTC, but rather be electronically declared to CBP, which will make the data available to DDTC via an electronic data exchange. Section 123.22(b)(3)(iii) is revised to update electronic reporting procedures for technical data and defense service exemptions. Section 123.22(c) is revised to strike a provision relating to the return of licenses and to reorder the subparagraphs. Section 123.24—Shipments by U.S. Postal Service Section 123.24 is revised to strike references to AES and insert, in their place, instructions to electronically file with CBP. The underlying content of this section is not affected by this change. Section 126.4—Shipments by or for United States Government Agencies Section 126.4(d) is amended by revising the first sentence to account for electronic reporting, and by striking the second sentence. Section 126.6—Foreign-Owned Military Aircraft and Naval Vessels, and the Foreign Military Sales Program Section 126.6(c) is revised to clarify certain procedures relating to the declaration of information to CBP, and to remove references to form DSP–94. Section 126.6(c)(5)(iii) is revised to require that the exporter provide CBP PO 00000 Frm 00012 Fmt 4700 Sfmt 4700 with a copy of the transportation plan under the Department of Defense National Industrial Security Program Operating Manual for shipments of classified defense articles exported pursuant to a Foreign Military Sale Letter of Offer and Acceptance. Section 126.6(c)(6)(iii) is revised to correct a punctuation error made in a previous rulemaking. Section 126.16—Exemption Pursuant to the Defense Trade Cooperation Treaty Between the United States and Australia Section 126.16(l) is revised to strike references to the Automated Export System and insert, in their place, instructions to electronically file with CBP. The underlying content of this section will not be affected by this change. Section 126.17—Exemption Pursuant to the Defense Trade Cooperation Treaty Between the United States and the United Kingdom Section 126.17(l) is revised to strike references to the Automated Export System and insert, in their place, instructions to electronically file with CBP. The underlying content of this section will not be affected by this change. Regulatory Analysis 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 sections 553 (rulemaking) and 554 (adjudications) of the Administrative Procedure Act. As this rule serves to implement the requirements of the Security and Accountability for Every Port Act of 2006 (Pub. L. 109–347), the Department of State is publishing this final rule using the ‘‘good cause’’ exception to the Administrative Procedure Act, as this rule is being published to fulfill the requirements outlined in Executive Order 13659. The Department has determined that public comment on this rulemaking would be impractical, unnecessary, and contrary to the public interest. Regulatory Flexibility Act Because this rulemaking is exempt from Section 553 of the Administrative Procedures Act, a Regulatory Flexibility Analysis is not required and has not been prepared. Unfunded Mandates Reform Act of 1995 This rule does not involve a mandate that will result in the expenditure by E:\FR\FM\03JAR1.SGM 03JAR1 Federal Register / Vol. 82, No. 1 / Tuesday, January 3, 2017 / Rules and Regulations 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 The Department does not believe this rulemaking is a major rule within the definition of 5 U.S.C. 804. Executive Orders 12372 and 13132 This rulemaking 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, the Department has determined that this rulemaking 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 rulemaking. sradovich on DSK3GMQ082PROD with RULES Executive Orders 12866 and 13563 Executive Orders 12866 and 13563 direct agencies to assess costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributed impacts, and equity). These executive orders stress the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. The Department has determined that the benefits of this rulemaking outweigh any cost to the public, which the Department believes will be minimal. OMB has designated this rule non-significant. Executive Order 12988 The Department of State has reviewed the proposed amendment in light of Executive Order 12988 to eliminate ambiguity, minimize litigation, establish clear legal standards, and reduce burden. Executive Order 13175 The Department of State has determined that this rulemaking will not have tribal implications, will not VerDate Sep<11>2014 22:11 Dec 30, 2016 Jkt 241001 impose substantial direct compliance costs on Indian tribal governments, and will not preempt tribal law. Accordingly, Executive Order 13175 does not apply to this rulemaking. Paperwork Reduction Act This rulemaking does not impose or revise any information collections subject to 44 U.S.C. Chapter 35. List of Subjects 22 CFR Part 120 Approvals, Arms and munitions, Definitions, Forms. 22 CFR Part 123 Arms and munitions, Exemptions, Licenses, Reporting, Shipments. 22 CFR Part 126 Arms and munitions, General policies and provisions. For the reasons set forth above, title 22, chapter I, subchapter M, parts 120, 123 and 126 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, Public Law 90–629, 90 Stat. 744 (22 U.S.C. 2752, 2778, 2797); 22 U.S.C. 2794; 22 U.S.C. 2651a; Public Law 105–261, 112 Stat. 1920; Public Law 111–266; Section 1261, Public Law 112– 239; E.O. 13637, 78 FR 16129. 2. Amend § 120.28 (b)(2) to read as follows: ■ § 120.28 Listing of forms referred to in this subchapter. * * * * * (b) * * * (2) Electronic Export Information submitted using U.S. Customs and Border Protection’s electronic system(s). * * * * * § 120.30 ■ [Removed and Reserved] 3. Remove and reserve § 120.30. PART 123—LICENSES FOR THE EXPORT AND TEMPORARY IMPORT OF DEFENSE ARTICLES 4. The authority citation for part 123 continues to read as follows: ■ Authority: Secs. 2, 38, and 71, Public Law 90–629, 90 Stat. 744 (22 U.S.C. 2752, 2778, 2797); 22 U.S.C. 2753; 22 U.S.C. 2651a; 22 U.S.C. 2776; Public Law 105–261, 112 Stat.1920; Sec. 1205(a), Public Law 107–228; Sec 520, Public Law 112–55; Section 1261, Public Law 112–239; E.O. 13637, 78 FR 16129. 5. Section 123.4 is amended by revising paragraph (d)(2) to read as follows: ■ PO 00000 Frm 00013 Fmt 4700 Sfmt 4700 17 § 123.4 Temporary import license exemptions. * * * * * (d) * * * (2) At the time of export, in accordance with the U.S. Customs and Border Protection (CBP) procedures, the Directorate of Defense Trade Controls (DDTC) registered and eligible exporter, or an agent acting on the filer’s behalf, must electronically file the export information with CBP, identify 22 CFR 123.4 as the authority for the export, and provide, as requested by CBP, the entry document number or a copy of the CBP document under which the article was imported. ■ 6. Section 123.5 is amended by revising the last three sentences of paragraph (b) to read as follows: § 123.5 Temporary export licenses. * * * * * (b) * * * The license for temporary export must be electronically submitted to U.S. Customs and Border Protection, unless electronic reporting of such information is unavailable, in which case U.S. Customs and Border Protection will issue instructions. In the event a physical license is required by U.S. Customs and Border Protection, the licensee is to retain the duly endorsed license for temporary export in accordance with § 123.22(b) of this subchapter. In the case of a military aircraft or vessel temporarily exported under its own power, evidence that the Department of State has duly authorized it to leave the United States must be readily available on board the aircraft or vessel. * * * * * ■ 7. Section 123.16 is amended by revising the penultimate sentence of paragraph (b)(4), and the last sentence of paragraph (b)(5), to read as follows: § 123.16 Exemptions of general applicability. * * * * * (b) * * * (4) * * * U.S. persons who avail themselves of this exemption must electronically submit a certification to U.S. Customs and Border Protection that these conditions are met, unless directed by U.S. Customs and Border Protection to provide such a certification in another manner. * * * (5) * * * U.S. persons who avail themselves of this exemption must electronically submit a certification to U.S. Customs and Border Protection that these conditions are met, unless directed by U.S. Customs and Border Protection to provide such a certification in another manner. * * * * * E:\FR\FM\03JAR1.SGM 03JAR1 18 Federal Register / Vol. 82, No. 1 / Tuesday, January 3, 2017 / Rules and Regulations 8. Section 123.17 is amended by revising paragraphs (a)(2)(iii), (a)(3)(iii), (c)(1), (f)(1), the second sentence of paragraph (g)(2), and the penultimate sentence of paragraph (h) to read as follows: ■ sradovich on DSK3GMQ082PROD with RULES § 123.17 Exports of firearms, ammunition, and personal protective gear. (a) * * * (2) * * * (iii) The exporter makes an electronic declaration to U.S. Customs and Border Protection pursuant to § 123.22(a), and the exporter is eligible to export under this exemption pursuant to § 120.1(c) of this subchapter, unless the electronic submission of such declaration is unavailable, in which case U.S. Customs and Border Protection will issue instructions; or (3) * * * (iii) The exporter makes an electronic declaration to U.S. Customs and Border Protection pursuant to § 123.22(a), and the exporter is eligible to export under this exemption pursuant to § 120.1(c) of this subchapter, unless the electronic submission of such declaration is unavailable, in which case U.S. Customs and Border Protection will issue instructions. * * * * * (c) * * * (1) The person declares the articles to a CBP officer upon each departure from the United States, presents the Internal Transaction Number from submission of the export information through CBP’s electronic system(s) per § 123.22 (unless electronic reporting of such information is unavailable, in which case U.S. Customs and Border Protection will issue instructions), and the articles are presented to the CBP officer for inspection; * * * * * (f) * * * (1) The person declares the articles to a CBP officer upon each departure from the United States, presents the Internal Transaction Number from submission of the export information through CBP’s electronic system(s) per § 123.22 (unless electronic reporting of such information is unavailable, in which case U.S. Customs and Border Protection will issue instructions), and the articles are presented to the CBP officer for inspection; * * * * * (g) * * * * * * * * (2) * * * The person shall electronically submit documentation to this effect, along with the Internal Transaction Number from U.S. Customs and Border Protection’s electronic VerDate Sep<11>2014 22:11 Dec 30, 2016 Jkt 241001 system(s), unless electronic reporting of such information is unavailable, in which case U.S. Customs and Border Protection will issue instructions. (h) * * * The person shall electronically submit documentation to this effect, along with the Internal Transaction Number using U.S. Customs and Border Protection’s electronic system(s), unless electronic reporting of such information is unavailable, in which case U.S. Customs and Border Protection will issue instructions. * * * * * * * * ■ 9. Section 123.22 is amended by: ■ a. Revising paragraph (a); ■ b. Revising paragraphs (b)(1) introductory text, (b)(2) introductory text, (b)(2)(ii), and (b)(3)(iii); and ■ c. Revising paragraph (c). The revisions read as follows: § 123.22 Filing, retention, and return of export licenses and filing of export information. (a) Any export, as defined in this subchapter, of a defense article controlled by this subchapter, to include defense articles transiting the United States, requires the electronic reporting of export information. The reporting of the export information shall be to the U.S. Customs and Border Protection using its electronic system(s), or directly to the Directorate of Defense Trade Controls (DDTC), as appropriate. Before the export of any hardware, via a license or other authorization, the DDTC registered applicant/exporter, or an agent acting on the filer’s behalf, must electronically submit export information to U.S. Customs and Border Protection, unless electronic reporting is unavailable, in which case U.S. Customs and Border Protection will issue instructions (see paragraph (b) of this section). In addition to electronically providing the export information to U.S. Customs and Border Protection before export, all mandatory supporting documentation (e.g. attachments, certifications, proof of filing in U.S. Customs and Border Protection’s system(s) such as the Internal Transaction Number (ITN)) must be submitted electronically, unless electronic reporting of such information is unavailable, in which case U.S. Customs and Border Protection will issue instructions. (1) If necessary, an export may be made through a port other than the one designated on the license if the exporter complies with the procedures established by U.S. Customs and Border Protection. (2) When a defense article is temporarily exported from the United States and subsequently moved from PO 00000 Frm 00014 Fmt 4700 Sfmt 4700 one destination authorized on a license to another destination authorized on the same or another temporary license, the applicant, or an agent acting on the applicant’s behalf, must ensure that U.S. Customs and Border Protection decrements both temporary licenses to show the exit and entry of the hardware. (b) * * * (1) Filing of export information with the U.S. Customs and Border Protection. Before exporting any hardware controlled by this subchapter using a license or exemption, the DDTC registered applicant/exporter, or an agent acting on the filer’s behalf, must electronically file the export information with U.S. Customs and Border Protection in accordance with the following timelines: * * * * * (2) Emergency shipments of hardware that cannot meet the pre-departure filing requirements. U.S. Customs and Border Protection may permit an emergency export of hardware by truck or air by a U.S. registered person when the exporter is unable to comply with the Electronic Export Information (EEI) filing timeline in paragraph (b)(1)(i) of this section. The applicant, or an agent acting on the applicant’s behalf, must provide documentation required by the U.S. Customs and Border Protection and this subchapter. The documentation provided to U.S. Customs and Border Protection must include the Internal Transaction Number (ITN) for the shipment and must be accompanied by an explanation for urgency. The export filing via U.S. Customs and Border Protection’s electronic system(s) must be made at least two hours prior to any departure by air from the United States. When shipping via ground, the filing in U.S. Customs and Border Protection’s electronic system(s) must be made when the exporter provides the articles to the carrier or at least one hour prior to departure from the United States, when the permanent export of the hardware has been authorized for export: * * * * * (ii) On a valid license, and the ultimate recipient and ultimate end-user identified on the license is a foreign government. (3) * * * (iii) Technical data and defense service exemptions. In any instance when technical data is exported using an exemption in this subchapter (e.g., §§ 125.4(b)(2), 125.4(b)(4), 126.5) from a U.S. port, the exporter must provide the export data electronically to DDTC. A copy of the electronic notification to DDTC must accompany the technical data shipment and be made available to E:\FR\FM\03JAR1.SGM 03JAR1 Federal Register / Vol. 82, No. 1 / Tuesday, January 3, 2017 / Rules and Regulations the U.S. Customs and Border Protection upon request. * * * * * (c) Return of licenses. Licenses issued by the Directorate of Defense Trade Controls are subject to return requirements as follows: (1) A license issued electronically by DDTC and electronically decremented by U.S. Customs and Border Protection through its electronic system(s) is not required to be returned to DDTC. A copy of the license must be maintained by the applicant in accordance with § 122.5 of this subchapter. (2) Licenses issued by DDTC but not decremented by U.S. Customs and Border Protection through its electronic system(s) (e.g. oral or visual technical data releases) must be returned by the applicant, or the government agency with which the license was filed, to DDTC upon expiration, to include when the total authorized value or quantity has been shipped. A copy of the license must be maintained by the applicant in accordance with § 122.5 of this subchapter. (3) A license issued by DDTC but not used by the applicant does not need to be returned to DDTC, even when expired. (4) A license revoked by DDTC is considered expired and must be handled in accordance with paragraphs (c)(1) and (c)(2) of this section. ■ 10. Amend § 123.24 by revising paragraph (a) as follows: § 123.24 Shipments by U.S. Postal Service sradovich on DSK3GMQ082PROD with RULES (a) The export of any defense hardware using a license or exemption in this subchapter by the U.S. Postal Service must be filed with U.S. Customs and Border Protection using its electronic system(s) and the license must be filed with U.S. Customs and Border Protection before any hardware is actually sent abroad by mail. The exporter must certify the defense hardware being exported in accordance with this subchapter by clearly marking on the package: ‘‘This export is subject to the controls of the ITAR, 22 CFR (identify section for an exemption) or (state license number) and the export has been electronically filed with U.S. Customs and Border Protection.’’ * * * * * PART 126—GENERAL POLICIES AND PROVISIONS 11. The authority citation for part 126 continues to read as follows: ■ Authority: Secs. 2, 38, 40, 42, and 71, Public Law 90–629, 90 Stat. 744 (22 U.S.C. VerDate Sep<11>2014 22:11 Dec 30, 2016 Jkt 241001 2752, 2778, 2780, 2791, and 2797); 22 U.S.C. 2651a; 22 U.S.C. 287c; E.O. 12918; 59 FR 28205; 3 CFR, 1994 Comp., p. 899; Sec. 1225, Public Law 108–375; Sec. 7089, Public Law 111–117, Public Law 111–266; Section 7045, Public Law 112–74; Section 7046, Public Law 112–74; E.O. 13637, 78 FR 16129. 12. Section 126.4 is amended by revising paragraph (d) as follows: ■ § 126.4 Shipments by or for United States Government agencies. * * * * * (d) An Electronic Export Information (EEI) filing, and a statement by the exporter that these requirements have been met, must be submitted to U.S. Customs and Border Protection using its electronic system(s) at the time of export, unless electronic submission of such information is unavailable, in which case U.S. Customs and Border Protection or the Department of Defense transmittal authority will issue instructions. ■ 13. Section 126.6 is amended by revising paragraphs (c)(5)(ii), (c)(5)(iii), and (c)(6)(iii) as follows: § 126.6 Foreign-owned military aircraft and naval vessels, and the Foreign Military Sales program. * * * * * (c) * * * (5) * * * (ii) At the time of shipment, U.S. Customs and Border Protection is provided the Electronic Export Information, Internal Transaction Number and any other documents required by U.S. Customs and Border Protection in carrying out its responsibilities. The invoices for the shipment must be annotated: ‘‘This shipment is authorized for export pursuant to 22 CFR 126.6(c), under FMS Case [insert case identification]. The U.S. Government point of contact is ll, telephone number ll,’’ and (iii) Any classified hardware and related technical data involved in the transfer must have the requisite U.S. Government security clearance and transportation plan and be shipped in accordance with the Department of Defense National Industrial Security Program Operating Manual. The exporter shall provide an electronic copy of the transportation plan via the U.S. Customs and Border Protection’s electronic system(s), unless electronic reporting of such information is unavailable, in which case U.S. Customs and Border Protection will issue instructions, or (6) * * * (iii) In instances when the defense service involves the transfer of classified technical data, the U.S. person transferring the defense service must PO 00000 Frm 00015 Fmt 4700 Sfmt 9990 19 have the appropriate USG security clearance and a transportation plan, if appropriate, in compliance with the Department of Defense National Industrial Security Program Operating Manual. ■ 14. Section 126.16 is amended by revising paragraphs (l)(1)(xv) and (l)(2) introductory text to read as follows: § 126.16 Exemption pursuant to the Defense Trade Cooperation Treaty between the United States and Australia. * * * * * (l) * * * (1) * * * (xv) The Internal Transaction Number for the Electronic Export Information filing using U.S. Customs and Border Protection’s electronic system(s); * * * * * (2) Filing of export information. All exporters of defense articles under the Defense Trade Cooperation Treaty between the United States and Australia and this section must electronically file Electronic Export Information (EEI) using U.S. Customs and Border Protection’s electronic system(s), citing one of the four below referenced codes in the appropriate field in the EEI for each shipment: * * * * * ■ 15. Section 126.17 is amended by revising paragraphs (l)(1)(xv) and (l)(2) introductory text to read as follows: § 126.17 Exemption pursuant to the Defense Trade Cooperation Treaty between the United States and the United Kingdom. * * * * * (l) * * * (1) * * * (xv) The Internal Transaction Number for the Electronic Export Information filing using U.S. Customs and Border Protection’s electronic system(s); * * * * * (2) Filing of export information. All exporters of defense articles under the Defense Trade Cooperation Treaty between the United States and the United Kingdom and this section must electronically file Electronic Export Information (EEI) using U.S. Customs and Border Protection’s electronic system(s), citing one of the four below referenced codes in the appropriate field in the EEI for each shipment: * * * * * Dated: December 23, 2016. Thomas Countryman, Under Secretary (Acting), Arms Control and International Security, Department of State. [FR Doc. 2016–31655 Filed 12–29–16; 11:45 am] BILLING CODE 4710–25–P E:\FR\FM\03JAR1.SGM 03JAR1

Agencies

[Federal Register Volume 82, Number 1 (Tuesday, January 3, 2017)]
[Rules and Regulations]
[Pages 15-19]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-31655]


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DEPARTMENT OF STATE

22 CFR Parts 120, 123, and 126

[Public Notice: 9811]
RIN 1400-AE07


International Traffic in Arms Regulations: International Trade 
Data System, Reporting

AGENCY: Department of State.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Department of State amends the International Traffic in 
Arms Regulations (ITAR) to enable U.S. Customs and Border Protection 
(CBP) to implement the International Trade Data System (ITDS), which 
will allow businesses to electronically submit the data required to 
import or export cargo, as provided by Executive Order 13659 and the 
Security and Accountability for Every Port Act of 2006 (SAFE Port Act).

DATES: This final rule is effective on December 31, 2016.

FOR FURTHER INFORMATION CONTACT: Mr. C. Edward Peartree, Director, 
Office of Defense Trade Controls Policy, Department of State, telephone 
(202) 663-2792; email DDTCResponseTeam@state.gov. ATTN: International 
Trade Data System, reporting.

SUPPLEMENTARY INFORMATION: The Directorate of Defense Trade Controls 
(DDTC) of the Department of State regulates the export and temporary 
import of defense-related goods and defense services under the Arms 
Export Control Act (AECA) and its implementing regulations, the 
International Traffic in Arms Regulations (ITAR). This rule is being 
issued to conform DDTC's regulations to ITDS, ``an electronic 
information exchange capability, or `single window', through which 
businesses will transmit data required by participating agencies for 
the importation or exportation of cargo'' (Executive Order 13659, Sec. 
3, Feb. 19, 2014). Executive Order 13659 requires government-wide 
implementation of ITDS by December 31, 2016. Additionally, Section 405 
of the Security and Accountability for Every Port Act of 2006 (SAFE 
Port Act) mandates agency participation in ITDS for all Federal 
agencies that have oversight of imports and exports. A consortium of 47 
Federal agencies led by CBP are implementing ITDS.
    ITDS represents a shift in the way that imports and exports are 
declared to CBP by importers and exporters engaged in international 
commerce. Traders will only need to create and submit a single set of 
data for each import or export, thus significantly reducing the

[[Page 16]]

paperwork and reporting burden currently experienced by importers and 
exporters. Beginning on December 31, 2016, traders will access the ITDS 
system via an integrated web portal hosted by CBP. Users may visit 
https://www.cbp.gov/trade/automated for more information on the single 
portal.
    Through the CBP Partner Government Agency (PGA) program, DDTC 
promulgated a PGA Message Set that requires traders to enter data 
relevant to DDTC's jurisdiction. Beginning December 31, 2016, when 
declaring permanent or temporary exports and/or temporary imports of 
defense articles controlled by the U.S. Munitions List (USML), traders 
will input data relevant to DDTC in CBP's electronic system(s). CBP 
will transmit the relevant shipment details to DDTC via an electronic 
data exchange, eliminating the need for traders to notify DDTC 
separately.
    This rule amends pertinent provisions throughout the ITAR to 
reflect this new submission mechanism and allow for successor systems 
to be put in place.
    This rule will make the following changes to the ITAR (22 CFR parts 
120-130):

Section 120.28--Listing of Forms Referred to in This Subchapter

    Section 120.28 is revised to strike the reference to the Automated 
Export System and add, in its place, ``U.S. Customs and Border 
Protection's electronic system(s)''.

Section 120.30--The Automated Export System (AES)

    Section 120.30 is removed and reserved.

Section 123.4--Temporary Import License Exemptions

    Section 123.4(d)(2) is revised to strike the reference to the 
Automated Export System (AES) and add, in its place, instructions to 
electronically file information with CBP.

Section 123.5--Temporary Export Licenses

    Section 123.5(b) is revised to update certain reporting procedures 
and to clarify that license information will be submitted to CBP 
electronically.

Section 123.16--Exemptions of General Applicability

    Sections 123.16(b)(4) and (5) are revised to clarify that 
certifications will be sent to CBP electronically and not via hard 
copy.

Section 123.17--Exports of Firearms, Ammunition, and Personal 
Protective Gear

    All references to AES in Sec.  123.17 are struck and, in their 
place, instructions to electronically file with CBP are inserted. 
Additionally, Sec.  123.17(g)(2) and (h) are revised to update certain 
documentation procedures.

Section 123.22--Filing, Retention, and Return of Export Licenses and 
Filing of Export Information

    Section 123.22 of the ITAR is revised by making certain grammatical 
changes and to clarify procedures for the electronic reporting of 
exports and temporary imports of defense articles, services, and 
technical data pursuant to a license or other approval. All references 
to AES in Sec.  123.22 are struck and, in their place, instructions to 
electronically file with CBP are inserted.
    Section 123.22(a) is revised to clarify electronic reporting 
procedures for exports. Paragraphs (a)(1) and (a)(2) are also revised 
for clarification of certain procedures.
    Section 123.22(b)(2) is revised to clarify that emergency shipment 
data shall no longer be required to be sent directly to DDTC, but 
rather be electronically declared to CBP, which will make the data 
available to DDTC via an electronic data exchange.
    Section 123.22(b)(3)(iii) is revised to update electronic reporting 
procedures for technical data and defense service exemptions.
    Section 123.22(c) is revised to strike a provision relating to the 
return of licenses and to reorder the sub-paragraphs.

Section 123.24--Shipments by U.S. Postal Service

    Section 123.24 is revised to strike references to AES and insert, 
in their place, instructions to electronically file with CBP. The 
underlying content of this section is not affected by this change.

Section 126.4--Shipments by or for United States Government Agencies

    Section 126.4(d) is amended by revising the first sentence to 
account for electronic reporting, and by striking the second sentence.

Section 126.6--Foreign-Owned Military Aircraft and Naval Vessels, and 
the Foreign Military Sales Program

    Section 126.6(c) is revised to clarify certain procedures relating 
to the declaration of information to CBP, and to remove references to 
form DSP-94. Section 126.6(c)(5)(iii) is revised to require that the 
exporter provide CBP with a copy of the transportation plan under the 
Department of Defense National Industrial Security Program Operating 
Manual for shipments of classified defense articles exported pursuant 
to a Foreign Military Sale Letter of Offer and Acceptance. Section 
126.6(c)(6)(iii) is revised to correct a punctuation error made in a 
previous rulemaking.

Section 126.16--Exemption Pursuant to the Defense Trade Cooperation 
Treaty Between the United States and Australia

    Section 126.16(l) is revised to strike references to the Automated 
Export System and insert, in their place, instructions to 
electronically file with CBP. The underlying content of this section 
will not be affected by this change.

Section 126.17--Exemption Pursuant to the Defense Trade Cooperation 
Treaty Between the United States and the United Kingdom

    Section 126.17(l) is revised to strike references to the Automated 
Export System and insert, in their place, instructions to 
electronically file with CBP. The underlying content of this section 
will not be affected by this change.

Regulatory Analysis

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 sections 553 (rulemaking) and 554 
(adjudications) of the Administrative Procedure Act. As this rule 
serves to implement the requirements of the Security and Accountability 
for Every Port Act of 2006 (Pub. L. 109-347), the Department of State 
is publishing this final rule using the ``good cause'' exception to the 
Administrative Procedure Act, as this rule is being published to 
fulfill the requirements outlined in Executive Order 13659. The 
Department has determined that public comment on this rulemaking would 
be impractical, unnecessary, and contrary to the public interest.

Regulatory Flexibility Act

    Because this rulemaking is exempt from Section 553 of the 
Administrative Procedures Act, a Regulatory Flexibility Analysis is not 
required and has not been prepared.

Unfunded Mandates Reform Act of 1995

    This rule does not involve a mandate that will result in the 
expenditure by

[[Page 17]]

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

    The Department does not believe this rulemaking is a major rule 
within the definition of 5 U.S.C. 804.

Executive Orders 12372 and 13132

    This rulemaking 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, the Department has determined that this rulemaking 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 rulemaking.

Executive Orders 12866 and 13563

    Executive Orders 12866 and 13563 direct agencies to assess costs 
and benefits of available regulatory alternatives and, if regulation is 
necessary, to select regulatory approaches that maximize net benefits 
(including potential economic, environmental, public health and safety 
effects, distributed impacts, and equity). These executive orders 
stress the importance of quantifying both costs and benefits, of 
reducing costs, of harmonizing rules, and of promoting flexibility. The 
Department has determined that the benefits of this rulemaking outweigh 
any cost to the public, which the Department believes will be minimal. 
OMB has designated this rule non-significant.

Executive Order 12988

    The Department of State has reviewed the proposed amendment in 
light of Executive Order 12988 to eliminate ambiguity, minimize 
litigation, establish clear legal standards, and reduce burden.

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, Executive Order 13175 does not apply to this 
rulemaking.

Paperwork Reduction Act

    This rulemaking does not impose or revise any information 
collections subject to 44 U.S.C. Chapter 35.

List of Subjects

22 CFR Part 120

    Approvals, Arms and munitions, Definitions, Forms.

22 CFR Part 123

    Arms and munitions, Exemptions, Licenses, Reporting, Shipments.

22 CFR Part 126

    Arms and munitions, General policies and provisions.

    For the reasons set forth above, title 22, chapter I, subchapter M, 
parts 120, 123 and 126 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, Public Law 90-629, 90 Stat. 744 
(22 U.S.C. 2752, 2778, 2797); 22 U.S.C. 2794; 22 U.S.C. 2651a; 
Public Law 105-261, 112 Stat. 1920; Public Law 111-266; Section 
1261, Public Law 112-239; E.O. 13637, 78 FR 16129.


0
2. Amend Sec.  120.28 (b)(2) to read as follows:


Sec.  120.28  Listing of forms referred to in this subchapter.

* * * * *
    (b) * * *
    (2) Electronic Export Information submitted using U.S. Customs and 
Border Protection's electronic system(s).
* * * * *


Sec.  120.30  [Removed and Reserved]

0
3. Remove and reserve Sec.  120.30.

PART 123--LICENSES FOR THE EXPORT AND TEMPORARY IMPORT OF DEFENSE 
ARTICLES

0
4. The authority citation for part 123 continues to read as follows:

    Authority: Secs. 2, 38, and 71, Public Law 90-629, 90 Stat. 744 
(22 U.S.C. 2752, 2778, 2797); 22 U.S.C. 2753; 22 U.S.C. 2651a; 22 
U.S.C. 2776; Public Law 105-261, 112 Stat.1920; Sec. 1205(a), Public 
Law 107-228; Sec 520, Public Law 112-55; Section 1261, Public Law 
112-239; E.O. 13637, 78 FR 16129.

0
5. Section 123.4 is amended by revising paragraph (d)(2) to read as 
follows:


Sec.  123.4  Temporary import license exemptions.

* * * * *
    (d) * * *
    (2) At the time of export, in accordance with the U.S. Customs and 
Border Protection (CBP) procedures, the Directorate of Defense Trade 
Controls (DDTC) registered and eligible exporter, or an agent acting on 
the filer's behalf, must electronically file the export information 
with CBP, identify 22 CFR 123.4 as the authority for the export, and 
provide, as requested by CBP, the entry document number or a copy of 
the CBP document under which the article was imported.

0
6. Section 123.5 is amended by revising the last three sentences of 
paragraph (b) to read as follows:


Sec.  123.5  Temporary export licenses.

* * * * *
    (b) * * * The license for temporary export must be electronically 
submitted to U.S. Customs and Border Protection, unless electronic 
reporting of such information is unavailable, in which case U.S. 
Customs and Border Protection will issue instructions. In the event a 
physical license is required by U.S. Customs and Border Protection, the 
licensee is to retain the duly endorsed license for temporary export in 
accordance with Sec.  123.22(b) of this subchapter. In the case of a 
military aircraft or vessel temporarily exported under its own power, 
evidence that the Department of State has duly authorized it to leave 
the United States must be readily available on board the aircraft or 
vessel.
* * * * *

0
7. Section 123.16 is amended by revising the penultimate sentence of 
paragraph (b)(4), and the last sentence of paragraph (b)(5), to read as 
follows:


Sec.  123.16  Exemptions of general applicability.

* * * * *
    (b) * * *
    (4) * * * U.S. persons who avail themselves of this exemption must 
electronically submit a certification to U.S. Customs and Border 
Protection that these conditions are met, unless directed by U.S. 
Customs and Border Protection to provide such a certification in 
another manner. * * *
    (5) * * * U.S. persons who avail themselves of this exemption must 
electronically submit a certification to U.S. Customs and Border 
Protection that these conditions are met, unless directed by U.S. 
Customs and Border Protection to provide such a certification in 
another manner.
* * * * *

[[Page 18]]


0
8. Section 123.17 is amended by revising paragraphs (a)(2)(iii), 
(a)(3)(iii), (c)(1), (f)(1), the second sentence of paragraph (g)(2), 
and the penultimate sentence of paragraph (h) to read as follows:


Sec.  123.17  Exports of firearms, ammunition, and personal protective 
gear.

    (a) * * *
    (2) * * *
    (iii) The exporter makes an electronic declaration to U.S. Customs 
and Border Protection pursuant to Sec.  123.22(a), and the exporter is 
eligible to export under this exemption pursuant to Sec.  120.1(c) of 
this subchapter, unless the electronic submission of such declaration 
is unavailable, in which case U.S. Customs and Border Protection will 
issue instructions; or
    (3) * * *
    (iii) The exporter makes an electronic declaration to U.S. Customs 
and Border Protection pursuant to Sec.  123.22(a), and the exporter is 
eligible to export under this exemption pursuant to Sec.  120.1(c) of 
this subchapter, unless the electronic submission of such declaration 
is unavailable, in which case U.S. Customs and Border Protection will 
issue instructions.
* * * * *
    (c) * * *
    (1) The person declares the articles to a CBP officer upon each 
departure from the United States, presents the Internal Transaction 
Number from submission of the export information through CBP's 
electronic system(s) per Sec.  123.22 (unless electronic reporting of 
such information is unavailable, in which case U.S. Customs and Border 
Protection will issue instructions), and the articles are presented to 
the CBP officer for inspection;
* * * * *
    (f) * * *
    (1) The person declares the articles to a CBP officer upon each 
departure from the United States, presents the Internal Transaction 
Number from submission of the export information through CBP's 
electronic system(s) per Sec.  123.22 (unless electronic reporting of 
such information is unavailable, in which case U.S. Customs and Border 
Protection will issue instructions), and the articles are presented to 
the CBP officer for inspection;
* * * * *
    (g) * * *
* * * * *
    (2) * * * The person shall electronically submit documentation to 
this effect, along with the Internal Transaction Number from U.S. 
Customs and Border Protection's electronic system(s), unless electronic 
reporting of such information is unavailable, in which case U.S. 
Customs and Border Protection will issue instructions.
    (h) * * * The person shall electronically submit documentation to 
this effect, along with the Internal Transaction Number using U.S. 
Customs and Border Protection's electronic system(s), unless electronic 
reporting of such information is unavailable, in which case U.S. 
Customs and Border Protection will issue instructions. * * *
* * * * *

0
9. Section 123.22 is amended by:
0
a. Revising paragraph (a);
0
b. Revising paragraphs (b)(1) introductory text, (b)(2) introductory 
text, (b)(2)(ii), and (b)(3)(iii); and
0
c. Revising paragraph (c).
    The revisions read as follows:


Sec.  123.22  Filing, retention, and return of export licenses and 
filing of export information.

    (a) Any export, as defined in this subchapter, of a defense article 
controlled by this subchapter, to include defense articles transiting 
the United States, requires the electronic reporting of export 
information. The reporting of the export information shall be to the 
U.S. Customs and Border Protection using its electronic system(s), or 
directly to the Directorate of Defense Trade Controls (DDTC), as 
appropriate. Before the export of any hardware, via a license or other 
authorization, the DDTC registered applicant/exporter, or an agent 
acting on the filer's behalf, must electronically submit export 
information to U.S. Customs and Border Protection, unless electronic 
reporting is unavailable, in which case U.S. Customs and Border 
Protection will issue instructions (see paragraph (b) of this section). 
In addition to electronically providing the export information to U.S. 
Customs and Border Protection before export, all mandatory supporting 
documentation (e.g. attachments, certifications, proof of filing in 
U.S. Customs and Border Protection's system(s) such as the Internal 
Transaction Number (ITN)) must be submitted electronically, unless 
electronic reporting of such information is unavailable, in which case 
U.S. Customs and Border Protection will issue instructions.
    (1) If necessary, an export may be made through a port other than 
the one designated on the license if the exporter complies with the 
procedures established by U.S. Customs and Border Protection.
    (2) When a defense article is temporarily exported from the United 
States and subsequently moved from one destination authorized on a 
license to another destination authorized on the same or another 
temporary license, the applicant, or an agent acting on the applicant's 
behalf, must ensure that U.S. Customs and Border Protection decrements 
both temporary licenses to show the exit and entry of the hardware.
    (b) * * *
    (1) Filing of export information with the U.S. Customs and Border 
Protection. Before exporting any hardware controlled by this subchapter 
using a license or exemption, the DDTC registered applicant/exporter, 
or an agent acting on the filer's behalf, must electronically file the 
export information with U.S. Customs and Border Protection in 
accordance with the following timelines:
* * * * *
    (2) Emergency shipments of hardware that cannot meet the pre-
departure filing requirements. U.S. Customs and Border Protection may 
permit an emergency export of hardware by truck or air by a U.S. 
registered person when the exporter is unable to comply with the 
Electronic Export Information (EEI) filing timeline in paragraph 
(b)(1)(i) of this section. The applicant, or an agent acting on the 
applicant's behalf, must provide documentation required by the U.S. 
Customs and Border Protection and this subchapter. The documentation 
provided to U.S. Customs and Border Protection must include the 
Internal Transaction Number (ITN) for the shipment and must be 
accompanied by an explanation for urgency. The export filing via U.S. 
Customs and Border Protection's electronic system(s) must be made at 
least two hours prior to any departure by air from the United States. 
When shipping via ground, the filing in U.S. Customs and Border 
Protection's electronic system(s) must be made when the exporter 
provides the articles to the carrier or at least one hour prior to 
departure from the United States, when the permanent export of the 
hardware has been authorized for export:
* * * * *
    (ii) On a valid license, and the ultimate recipient and ultimate 
end-user identified on the license is a foreign government.
    (3) * * *
    (iii) Technical data and defense service exemptions. In any 
instance when technical data is exported using an exemption in this 
subchapter (e.g., Sec. Sec.  125.4(b)(2), 125.4(b)(4), 126.5) from a 
U.S. port, the exporter must provide the export data electronically to 
DDTC. A copy of the electronic notification to DDTC must accompany the 
technical data shipment and be made available to

[[Page 19]]

the U.S. Customs and Border Protection upon request.
* * * * *
    (c) Return of licenses. Licenses issued by the Directorate of 
Defense Trade Controls are subject to return requirements as follows:
    (1) A license issued electronically by DDTC and electronically 
decremented by U.S. Customs and Border Protection through its 
electronic system(s) is not required to be returned to DDTC. A copy of 
the license must be maintained by the applicant in accordance with 
Sec.  122.5 of this subchapter.
    (2) Licenses issued by DDTC but not decremented by U.S. Customs and 
Border Protection through its electronic system(s) (e.g. oral or visual 
technical data releases) must be returned by the applicant, or the 
government agency with which the license was filed, to DDTC upon 
expiration, to include when the total authorized value or quantity has 
been shipped. A copy of the license must be maintained by the applicant 
in accordance with Sec.  122.5 of this subchapter.
    (3) A license issued by DDTC but not used by the applicant does not 
need to be returned to DDTC, even when expired.
    (4) A license revoked by DDTC is considered expired and must be 
handled in accordance with paragraphs (c)(1) and (c)(2) of this 
section.

0
10. Amend Sec.  123.24 by revising paragraph (a) as follows:


Sec.  123.24  Shipments by U.S. Postal Service

    (a) The export of any defense hardware using a license or exemption 
in this subchapter by the U.S. Postal Service must be filed with U.S. 
Customs and Border Protection using its electronic system(s) and the 
license must be filed with U.S. Customs and Border Protection before 
any hardware is actually sent abroad by mail. The exporter must certify 
the defense hardware being exported in accordance with this subchapter 
by clearly marking on the package:
    ``This export is subject to the controls of the ITAR, 22 CFR 
(identify section for an exemption) or (state license number) and the 
export has been electronically filed with U.S. Customs and Border 
Protection.''
* * * * *

PART 126--GENERAL POLICIES AND PROVISIONS

0
11. The authority citation for part 126 continues to read as follows:

    Authority: Secs. 2, 38, 40, 42, and 71, Public Law 90-629, 90 
Stat. 744 (22 U.S.C. 2752, 2778, 2780, 2791, and 2797); 22 U.S.C. 
2651a; 22 U.S.C. 287c; E.O. 12918; 59 FR 28205; 3 CFR, 1994 Comp., 
p. 899; Sec. 1225, Public Law 108-375; Sec. 7089, Public Law 111-
117, Public Law 111-266; Section 7045, Public Law 112-74; Section 
7046, Public Law 112-74; E.O. 13637, 78 FR 16129.

0
12. Section 126.4 is amended by revising paragraph (d) as follows:


Sec.  126.4  Shipments by or for United States Government agencies.

* * * * *
    (d) An Electronic Export Information (EEI) filing, and a statement 
by the exporter that these requirements have been met, must be 
submitted to U.S. Customs and Border Protection using its electronic 
system(s) at the time of export, unless electronic submission of such 
information is unavailable, in which case U.S. Customs and Border 
Protection or the Department of Defense transmittal authority will 
issue instructions.

0
13. Section 126.6 is amended by revising paragraphs (c)(5)(ii), 
(c)(5)(iii), and (c)(6)(iii) as follows:


Sec.  126.6  Foreign-owned military aircraft and naval vessels, and the 
Foreign Military Sales program.

* * * * *
    (c) * * *
    (5) * * *
    (ii) At the time of shipment, U.S. Customs and Border Protection is 
provided the Electronic Export Information, Internal Transaction Number 
and any other documents required by U.S. Customs and Border Protection 
in carrying out its responsibilities. The invoices for the shipment 
must be annotated: ``This shipment is authorized for export pursuant to 
22 CFR 126.6(c), under FMS Case [insert case identification]. The U.S. 
Government point of contact is __, telephone number __,'' and
    (iii) Any classified hardware and related technical data involved 
in the transfer must have the requisite U.S. Government security 
clearance and transportation plan and be shipped in accordance with the 
Department of Defense National Industrial Security Program Operating 
Manual. The exporter shall provide an electronic copy of the 
transportation plan via the U.S. Customs and Border Protection's 
electronic system(s), unless electronic reporting of such information 
is unavailable, in which case U.S. Customs and Border Protection will 
issue instructions, or
    (6) * * *
    (iii) In instances when the defense service involves the transfer 
of classified technical data, the U.S. person transferring the defense 
service must have the appropriate USG security clearance and a 
transportation plan, if appropriate, in compliance with the Department 
of Defense National Industrial Security Program Operating Manual.

0
14. Section 126.16 is amended by revising paragraphs (l)(1)(xv) and 
(l)(2) introductory text to read as follows:


Sec.  126.16  Exemption pursuant to the Defense Trade Cooperation 
Treaty between the United States and Australia.

* * * * *
    (l) * * *
    (1) * * *
    (xv) The Internal Transaction Number for the Electronic Export 
Information filing using U.S. Customs and Border Protection's 
electronic system(s);
* * * * *
    (2) Filing of export information. All exporters of defense articles 
under the Defense Trade Cooperation Treaty between the United States 
and Australia and this section must electronically file Electronic 
Export Information (EEI) using U.S. Customs and Border Protection's 
electronic system(s), citing one of the four below referenced codes in 
the appropriate field in the EEI for each shipment:
* * * * *

0
15. Section 126.17 is amended by revising paragraphs (l)(1)(xv) and 
(l)(2) introductory text to read as follows:


Sec.  126.17  Exemption pursuant to the Defense Trade Cooperation 
Treaty between the United States and the United Kingdom.

* * * * *
    (l) * * *
    (1) * * *
    (xv) The Internal Transaction Number for the Electronic Export 
Information filing using U.S. Customs and Border Protection's 
electronic system(s);
* * * * *
    (2) Filing of export information. All exporters of defense articles 
under the Defense Trade Cooperation Treaty between the United States 
and the United Kingdom and this section must electronically file 
Electronic Export Information (EEI) using U.S. Customs and Border 
Protection's electronic system(s), citing one of the four below 
referenced codes in the appropriate field in the EEI for each shipment:
* * * * *

    Dated: December 23, 2016.
Thomas Countryman,
Under Secretary (Acting), Arms Control and International Security, 
Department of State.
[FR Doc. 2016-31655 Filed 12-29-16; 11:45 am]
 BILLING CODE 4710-25-P