[Federal Register Volume 76, Number 135 (Thursday, July 14, 2011)]
[Proposed Rules]
[Pages 41440-41441]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-17806]


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DEPARTMENT OF STATE

22 CFR Part 123

RIN 1400-AC91
[Public Notice 7523]


International Traffic in Arms Regulations: Filing, Retention, and 
Return of Export Licenses and Filing of Export Information

AGENCY: Department of State.

ACTION: Proposed rule.

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SUMMARY: The Department of State proposes to amend the International 
Traffic in Arms Regulations (ITAR) to reflect changes in the 
requirements for the return of licenses. Applicants will no longer be 
required to return certain expired or exhausted DSP-5s. This change 
will reduce administrative burden on applicants.

DATES: Effective Date: The Department of State will accept comments on 
this proposed rule until August 29, 2011.

ADDRESSES: Interested parties may submit comments within 45 days of the 
date of the publication by any of the following methods:
     E-mail: [email protected] with the subject line, 
``ITAR Amendment--License Return.''
     Internet: View this notice by searching for its RIN on the 
U.S. Government regulations Web site at http://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Nicholas Memos, Office of Defense 
Trade Controls Policy, Bureau of Political-Military Affairs, Department 
of State, (202) 663-2804 or FAX (202) 261-8199; E-mail 
[email protected], Attn: ITAR Amendment--License Return.

SUPPLEMENTARY INFORMATION: The Department of State proposes to amend 
Sec.  123.22(c) to institute changes in the requirements for the return 
of licenses. With this proposed change, applicants with DSP-5 licenses 
that have been issued electronically by the Directorate of Defense 
Trade Controls (DDTC) and decremented electronically by the U.S. 
Customs and Border Protection through the Automated Export System (AES) 
will no longer need to return them to DDTC. The return of these 
licenses is redundant and unnecessary as all of the export information 
has been captured and saved electronically.
    All other DSP-5 licenses that do not meet the criteria described 
above must be returned by the applicant to DDTC. All DSP-61, DSP-73, 
and DSP-85 licenses, and DSP-94 authorizations, are to be returned by 
the applicant to DDTC as these licenses and authorizations are not 
decremented electronically, even if an Electronic Export Information is 
filed via AES.
    Proposed Sec.  123.22(c)(4) provides that licenses issued but not 
used by the applicant do not need to be returned to DDTC
    Proposed Sec.  123.22(c)(5) provides that licenses which have been 
revoked by DDTC are considered expired.
    Section 123.21(b) is to be amended to conform to the proposed 
changes to Sec.  123.22(c).

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 is publishing this 
rule with a 45-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 rule 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 rule.

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)

[[Page 41441]]

and 3(b)(2) of Executive Order 12988 to eliminate ambiguity, minimize 
litigation, establish clear legal standards, and reduce burden.

Paperwork Reduction Act

    This rule does not impose any new reporting or recordkeeping 
requirements subject to the Paperwork Reduction Act, 44 U.S.C. Chapter 
35.

List of Subjects in 22 CFR Part 123

    Arms and munitions, Exports.

    Accordingly, for the reasons set forth above, Title 22, Chapter I, 
Subchapter M, part 123 is proposed to be amended as follows:

PART 123--LICENSES FOR THE EXPORT OF DEFENSE ARTICLES

    1. 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.

    2. Section 123.21 is amended by revising the heading and paragraph 
(b) to read as follows:


Sec.  123.21  Duration, renewal, and disposition of licenses.

* * * * *
    (b) Unused, expired, suspended, or revoked licenses must be handled 
in accordance with Sec.  123.22(c) of this subchapter.
    3. Section 123.22 is amended by revising paragraph (c) to read as 
follows:


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

* * * * *
    (c) Return of licenses. Per Sec.  123.21 of this subchapter, all 
DSP licenses issued by the Directorate of Defense Trade Controls (DDTC) 
must be disposed of in accordance with the following:
    (1) DSP-5 licenses issued electronically by DDTC and decremented 
electronically by the U.S. Customs and Border Protection through the 
Automated Export System (AES) are not required to be returned to DDTC. 
The DSP-5 licenses, when fully decremented or expired, must be 
maintained by the applicant in accordance with Sec.  122.5 of this 
subchapter.
    (2) DSP-5, DSP-61, DSP-73, and DSP-85 licenses issued by DDTC but 
not decremented electronically by the U.S. Customs and Border 
Protection through AES (e.g., oral or visual technical data releases or 
temporary import and export licenses retained in accordance with 
paragraph (a)(2) of this section), must be returned by the applicant to 
DDTC upon expiration, to include when the total value or quantity has 
been shipped. A copy must be maintained by the applicant in accordance 
with Sec.  122.5 of this subchapter. AES does not decrement the DSP-61, 
DSP-73, and DSP-85 licenses. Submitting the Electronic Export 
Information is not considered to be decremented electronically for 
these licenses.
    (3) A DSP-94 authorization filed with the U.S. Customs and Border 
Protection must be returned by the applicant to DDTC upon expiration, 
to include when the total value or quantity has been shipped. AES does 
not decrement the DSP-94 authorization. Submitting the Electronic 
Export Information is not considered to be decremented electronically 
for the DSP-94. A copy of the DSP-94 must be maintained by the 
applicant in accordance with Sec.  122.5 of this subchapter.
    (4) Licenses issued but not used by the applicant do not need to be 
returned to DDTC, even when expired.
    (5) Licenses which have been revoked by DDTC are considered expired 
and must be handled in accordance with paragraphs (c)(1) and (2) of 
this section.

    Dated: July 7, 2011.
Ellen O. Tauscher,
Under Secretary, Arms Control and International Security, Department of 
State.
[FR Doc. 2011-17806 Filed 7-13-11; 8:45 am]
BILLING CODE 4710-25-P