[Federal Register Volume 59, Number 111 (Friday, June 10, 1994)]
[Unknown Section]
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From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-13944]


[[Page Unknown]]

[Federal Register: June 10, 1994]


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DEPARTMENT OF STATE

Bureau of Political-Military Affairs
[Public Notice 2018]

22 CFR Parts 123, 124, and 126

 

Amendment to the International Traffic in Arms Regulations (ITAR)

AGENCY: Department of State.

ACTION: Final rule.

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SUMMARY: On July 22, 1993, the Department published a major revision to 
the International Traffic in Arms Regulations (ITAR) (58 FR 39280). 
After being in use by government agencies and industry for several 
months, certain issues were identified which required revision. The 
revisions made in this final rule are viewed by the Department of State 
as beneficial for U.S. persons and industry.

EFFECTIVE DATE: June 10, 1994.

FOR FURTHER INFORMATION CONTACT:
Information regarding this notice may be obtained from Department of 
State, Office of Defense Trade Controls. Rose Marie Biancaniello, 
Deputy Director for Licensing, or Glenn Smith, Licensing Officer, may 
be reached by phone at 703 875-6643 or fax at 703 875-6647.

SUPPLEMENTARY INFORMATION: On July 22, 1993, the Department published a 
major revision to the International Traffic in Arms Regulations (ITAR) 
(58 FR 39280). After several months of implementation and various 
training seminars with other government agencies and with industry, 
several issues have been identified which merit regulatory or 
procedural changes. This final rule is being published to address three 
(3) of the issues. Section 123.16(a) is revised to exclude significant 
military equipment from the exemption stated in Sec. 123.16. This 
change was deemed necessary in order to ensure compliance with the 
Department's congressional notification requirements and the ITAR 
requirement for nontransfer and use certification for defense articles 
which are defined in part 120 of the ITAR as ``significant military 
equipment''. In addition, Sec. 124.10 is amended by removing the 
requirement that a signed DSP-83 be submitted with proposed agreements. 
Compliance with this requirement has proven to be difficult, and of 
insufficient benefit to the Department to merit continuation of the 
requirement. Finally, Sec. 126.5 is amended by deleting the exception 
to the Canadian exemption which requires a license for the export to 
Canada of unclassified technical data directly related to a classified 
defense article.
    The Department of State views these changes as beneficial for U.S. 
persons and industry and has decided to implement them immediately by 
publication of a final rule. Notwithstanding this final rule, public 
comment is welcomed.
    This amendment involves a foreign affairs function of the United 
States. It is exempt from review under E.O. 12866 and has been reviewed 
internally by the Department of State to ensure consistency with the 
purposes thereof. It is also excluded from the procedures of 5 U.S.C. 
553 and 554.

List of Subjects

22 CFR Part 123

    Arms and munitions, Exports.

22 CFR Part 124

    Arms and munitions, Exports, Technical assistance.

22 CFR Part 126

    Arms and munitions, Exports.

    Accordingly, for the reasons set forth in the preamble, 22 CFR 
subchapter M, parts 123, 124 and 126 are amended as follows:

PART 123--LICENSES FOR THE EXPORT OF DEFENSE ARTICLES

    1. The authority citation for 22 CFR part 123 continues to read as 
follows:

    Authority: Secs. 2 and 38, Pub. L. 90-629, 90 Stat. 744 (22 
U.S.C. 2752, 2778); E.O. 11958, 42 FR 4311, 3 CFR 1977 Comp. 79; 22 
U.S.C. 2658.

    2. Section 123.16 is amended by revising paragraph (a) to read as 
follows:


Sec. 123.16  Exemptions of general applicability.

    (a) The following exemptions apply to exports of unclassified 
defense articles for which no approval is needed from the Office of 
Defense Trade Controls. These exemptions do not apply to: Proscribed 
destinations under Sec. 126.1 of this subchapter; exports for which 
Congressional notification is required (see Sec. 123.15 of this 
subchapter); MTCR articles; Significant Military Equipment (SME); and 
may not be used by persons who are generally ineligible as described in 
Sec. 120.1(c) of this subchapter. All shipments of defense articles, 
including those to and from Canada, require a Shipper's Export 
Declaration (SED) or notification letter. If the export of a defense 
article is exempt from licensing, the SED must cite the exemption. 
Refer to Sec. 123.22 for Shipper's Export Declaration and letter 
notification requirements.
* * * * *

PART 124--AGREEMENTS, OFF-SHORE PROCUREMENT AND OTHER DEFENSE 
SERVICES

    3. The authority citation for 22 CFR part 124 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); E.O. 11958, 42 FR 4311; 3 CFR 1977 Comp. 
p. 79; 22 U.S.C. 2658.

    4. Section 124.10 is revised to read as follows:


Sec. 124.10  Nontransfer and use assurances.

    (a) Types of agreements requiring assurances. With respect to any 
manufacturing license agreement or technical assistance agreement which 
relates to significant military equipment or classified defense 
articles, including classified technical data, a Nontransfer and Use 
Certificate (Form DSP-83) (see Sec. 123.10 of this subchapter) signed 
by the applicant and the foreign party must be submitted to the Office 
of Defense Trade Controls. With respect to all agreements involving 
classified articles, including classified technical data, an authorized 
representative of the foreign government must sign the DSP-83 (or 
provide the same assurances in the form of a diplomatic note), unless 
the Office of Defense Trade Controls has granted an exception to this 
requirement. The Office of Defense Trade controls may require that a 
DSP-83 be provided in conjunction with an agreement that does not 
relate to significant military equipment or classified defense 
articles. The Office of Defense Trade Controls may also require with 
respect to any agreement that an appropriate authority of the foreign 
party's government also sign the DSP-83 (or provide the same assurances 
in the form of a diplomatic note).
    (b) Timing of submission of assurances. Submission of a Form DSP-83 
and/or diplomatic note must occur as follows:
    (1) Agreements which have been signed by all parties before being 
submitted to the Office of Defense Trade Controls may only be submitted 
along with any required DSP-83 and/or diplomatic note.
    (2) If an agreement has not been signed by all parties before being 
submitted, the required DSP-83 and/or diplomatic note must be submitted 
along with the signed agreement.

    Note: In no case may a transfer occur before a required DSP-83 
and/or diplomatic note has been submitted to the Office of Defense 
Trade Controls.

PART 126--GENERAL POLICIES AND PROVISIONS

    5. The authority citation for 22 CFR part 126 continues to read as 
follows:

    Authority: Secs. 2, 38, 40, 42, and 71, Arms Export Control Act, 
Pub. L. 90-629, 90 Stat. 744 (22 U.S.C. 2752, 2778, 2780, 2791 and 
2797); E.O. 11958, 42 FR 4311, E.O. 11322, 32 FR 119; 22 U.S.C. 
2658.

    6. Section 126.5 is revised to read as follows:


Sec. 126.5  Canadian exemptions.

    (a) District Directors of Customs and postmasters shall permit the 
permanent or temporary export or temporary import without a license of 
any unclassified equipment or unclassified technical data to Canada for 
end use in Canada by Canadian citizens or return to the United States, 
or from Canada for end use in the United States or return to a Canadian 
citizen in Canada, with the exception of the defense articles, defense 
services or related technical data.
    (b) Exceptions. The exemptions of this section do not apply to the 
following defense articles, defense services, or related technical 
data:
    (1) Fully automatic firearms and components and parts therefor in 
Category I(a) which are not for end use by the Federal Government, or a 
Provincial or Municipal Government of Canada;
    (2) Nuclear weapons strategic delivery systems and all components, 
parts, accessories, attachments specifically designed for such systems 
and associated equipment;
    (3) Nuclear weapon design and test equipment listed in Category 
XVI;
    (4) Naval nuclear propulsion equipment listed in Category VI(e);
    (5) Aircraft listed in Category VIII(a);
    (6) Submersible and oceanographic vessels and related articles 
listed in Category XX (a) through (d).
    (7) Defense articles, defense services, or related technical data 
for use by a foreign national other than a Canadian.
    (c) Related requirements. The foregoing exemption from obtaining an 
export license does not exempt an exporter from complying with the 
requirements set forth in Sec. 123.15 of this subchapter or from filing 
the Shipper's Export Declaration or notification letter required by 
Sec. 123.22 of this subchapter.
    (d) Part 124 agreements. The requirements of part 124 of this 
subchapter must be complied with in the situations contemplated in that 
part. For example, the exemptions of this section may not be used for 
the provision of defense services except pursuant to an approved 
manufacturing license agreement or technical assistance agreement.

    Dated: May 13, 1994.
Lynn E. Davis,
Under Secretary of State for International Security Affairs.
[FR Doc. 94-13944 Filed 6-9-94; 8:45 am]
BILLING CODE 4710-25-M