[Federal Register Volume 76, Number 234 (Tuesday, December 6, 2011)]
[Rules and Regulations]
[Pages 76035-76037]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-31273]


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DEPARTMENT OF STATE

22 CFR Part 126

RIN 1400-AD00
[Public Notice 7708]


Amendment to the International Traffic in Arms Regulations: 
Additional Method of 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 identify the Federal Reserve Wire Network 
(FedWire) as another method of electronic payment of registration fees, 
so as to provide a choice in and facilitate the submission of fees by 
registrants.

DATES: This rule is effective December 6, 2011.

FOR FURTHER INFORMATION CONTACT: Tanya A. Phillips, Office of Defense 
Trade Controls Compliance, U.S. Department of State, telephone (202) 
632-2797, or email [email protected]. ATTN: Registration--
Additional Method of Electronic Payment of Registration Fees.

SUPPLEMENTARY INFORMATION:  The Directorate of Defense Trade Controls 
(DDTC) is responsible for the collection of registration fees from 
persons in the business of manufacturing, exporting, and/or brokering 
defense articles or defense services.
    On February 24, 2011, the Department proposed electronic payment as 
the sole method of the submission of registration fees (see the 
proposed rule, ``Amendment to the International Traffic in Arms 
Regulations: Electronic Payment of Registration Fees; 60-Day Notice of 
the Proposed Statement of Registration Information Collection,'' 76 FR 
10291). That proposal received no public comment within the established 
comment period. The final rule (76 FR 45195, July 28, 2011) took effect 
on September 26, 2011, and identified Automated Clearing House (ACH) as 
the means by which U.S. entities may electronically submit their 
registration fees.
    Since the implementation of that rule, a considerable number of 
intended registrants have contacted the Department, inquiring if 
payment may be made using the Federal Reserve Wire Network (FedWire), 
as they were experiencing difficulties in originating ACH transactions. 
This rule seeks to address these concerns. Therefore, to Sec. Sec.  
122.2 and 129.4 of the ITAR, where registration fee payment is 
described, FedWire is added as an acceptable electronic payment method.

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 section 553 (Rulemaking) and section 554 
(Adjudications) of the Administrative Procedure Act. Since the 
Department is of the opinion that this rule is exempt from 5 U.S.C. 
553, it is the view of the Department of State that the provisions of 
section 553(d) do not apply to this rulemaking.

Regulatory Flexibility Act

    Since this amendment is not subject to 5 U.S.C. 553, it does not 
require analysis under the Regulatory Flexibility Act.

Unfunded Mandates 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.

[[Page 76036]]

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

    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 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. However, the Department has reviewed this rule to ensure its 
consistency with the regulatory philosophy and principles set forth in 
the Executive Order.

Executive Order 12988

    The Department of State has reviewed this 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.

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 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.

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 Parts 122 and 129

    Arms and munitions, Exports.
    Accordingly, for the reasons set forth above, Title 22, Chapter I, 
Subchapter M, parts 122 and 129 are amended as follows:

PART 122--REGISTRATION OF MANUFACTURERS AND EXPORTERS

0
1. 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
2. Section 122.2 is amended by revising paragraph (a) 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 or 
Federal Reserve Wire Network payable to the Department of State of one 
of the fees prescribed in Sec.  122.3(a) of this subchapter. Automated 
Clearing House (ACH) and Federal Reserve Wire Network (FedWire) are 
electronic networks used to process financial transactions in the 
United States. Intended registrants should access the Directorate of 
Defense Trade Control's Web site at http://www.pmddtc.state.gov for 
detailed guidelines on submitting an ACH or FedWire 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.
* * * * *

PART 129--REGISTRATION AND LICENSING OF BROKERS

0
3. 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
4. Section 129.4 is amended by revising paragraph (a) 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), 
Federal Reserve Wire Network (FedWire), 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 and FedWire are electronic 
networks 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, FedWire, 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 http://www.pmddtc.state.gov for detailed guidelines on submitting ACH, 
FedWire, 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

[[Page 76037]]

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.
* * * * *

    Dated: November 29, 2011.
Ellen O. Tauscher,
Under Secretary, Arms Control and International Security, Department of 
State.
[FR Doc. 2011-31273 Filed 12-5-11; 8:45 am]
BILLING CODE 4710-25-P