[Federal Register Volume 81, Number 174 (Thursday, September 8, 2016)]
[Rules and Regulations]
[Pages 62004-62008]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-21481]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF STATE

22 CFR Parts 120, 125, 126, and 130

[Public Notice: 9672]
RIN 1400-AD70


International Traffic in Arms: Revisions to Definition of Export 
and Related Definitions

AGENCY: Department of State.

ACTION: Final rule.

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

SUMMARY: On June 3, 2016, the Department of State published an interim 
final rule amending and adding definitions to the International Traffic 
in Arms Regulations (ITAR) as part of the President's Export Control 
Reform (ECR) initiative. After review of the public comments to the 
interim final rule, the Department further amends the ITAR by revising 
the definition of ``retransfer'' and making other clarifying revisions.

DATES: The rule is effective on September 8, 2016.

[[Page 62005]]


FOR FURTHER INFORMATION CONTACT: Mr. C. Edward Peartree, Director, 
Office of Defense Trade Controls Policy, Department of State, telephone 
(202) 663-1282; email [email protected]. ATTN: ITAR 
Amendment--Revisions to Definitions.

SUPPLEMENTARY INFORMATION: The Directorate of Defense Trade Controls 
(DDTC), U.S. Department of State, administers the International Traffic 
in Arms Regulations (ITAR) (22 CFR parts 120 through 130). On June 3, 
2015, the Department of State published a rule (80 FR 31525) proposing 
to amend the International Traffic in Arms Regulations (ITAR) by 
revising key definitions, creating several new definitions, and 
revising related provisions, as part of the President's Export Control 
Reform (ECR) initiative. After review of the public comments on the 
proposed rule, the Department published an interim final rule (81 FR 
35611, June 3, 2016) implementing several of the proposed revisions and 
additions, with an additional comment period until July 5, 2016. After 
reviewing the public comments to the interim final rule, the Department 
further amends the ITAR by revising the definition of ``retransfer'' in 
Sec.  120.51, adding a new paragraph (f) to Sec.  125.1, revising Sec.  
126.16(a)(1)(iii) and Sec.  126.17(a)(1)(iii), revising Sec.  
126.18(d)(1), and revising Sec.  130.2.

Changes in This Rule

    The following changes are made to the ITAR with this final rule: 
(i) Revisions to the definition of ``retransfer'' in Sec.  120.51 to 
clarify that temporary transfers to third parties and releases to same-
country foreign persons are within the scope of the definitions; (ii) 
addition of a new paragraph (f) in Sec.  125.1 to mirror the new 
sections of the ITAR in Sec. Sec.  123.28 and 124.1(e) detailing the 
scope of licenses; (iii) revising Sec.  126.16(a)(1)(iii) and Sec.  
126.17(a)(1)(iii) to reflect the definitions of reexport and retransfer 
in the Defense Trade Cooperation Treaties with Australia and the United 
Kingdom, respectively, and to make appropriate revisions to the 
definitions of reexport in Sec.  120.19 and retransfer in Sec.  120.51 
to reflect that these definitions do not apply in the treaty context; 
(iv) revisions to Sec.  126.18(d)(1) to clarify that the provisions 
include all foreign persons who meet the definition of regular employee 
in Sec.  120.39; and (v) revisions to Sec.  130.2 to ensure that the 
scope of the Part 130 requirements does not change due to the revised 
and new definitions. The remaining definitions published in the June 3, 
2015 proposed rule (80 FR 31525) and not addressed in the June 3, 2016 
interim final rule or this final rule, will be the subject of separate 
rulemakings and the public comments on those definitions will be 
addressed therein.

Response to Public Comments

    One commenter stated that Sec.  120.17 (a)(1) is ambiguous and 
could lead to misinterpretation as to whether the transfer of a defense 
article to a foreign person within the United States would be 
considered an export. The Department notes that a transfer of a defense 
article to a foreign person in the United States is not an export, 
unless it results in a release of technical data under Sec.  
120.17(a)(2), is a defense article covered under Sec.  120.17(a)(3), or 
involves an embassy under Sec.  120.17 (a)(4). The Department confirms 
that simply allowing a foreign person in the United States to possess a 
defense article does not require authorization under the ITAR unless 
technical data is revealed to that person through the possession, 
including subsequent inspection, of the defense article, or that person 
is taking the defense article into an embassy.
    One commenter stated that Sec.  120.17(a)(2) implies that only 
transfers to foreign persons that occur in the United States constitute 
an export and asked the Department to add ``or abroad'' to include 
transfers to foreign persons outside of the United States. The 
Department does not accept the comment. One of the improvements of the 
new definitions for export, reexport, and retransfer is that they more 
specifically delineate the activities described by each term. The 
Department confirms that the transfer of technical data to a foreign 
person is always a controlled activity that requires authorization from 
the Department. The shipment of technical data, in physical, 
electronic, verbal, or any other format, from the United States to a 
foreign country is an export under Sec.  120.17(a)(1). The release of 
technical data to a foreign person in the United States is an export 
under Sec.  120.17(a)(2). The release of technical data to a foreign 
person in a foreign country is a retransfer under Sec.  120.51(a)(2), 
if the person is a national of that country, or a reexport under Sec.  
120.19(a)(2), if the person is a dual or third country national (DN/
TCN). The shipment of technical data, in physical, electronic, verbal, 
or any other format, from one foreign country to another foreign 
country is a reexport under Sec.  120.19(a)(1). Finally, the shipment 
of technical data, in physical, electronic, verbal, or any other 
format, within one foreign country is a retransfer under Sec.  
120.51(a)(1).
    One commenter asked why paragraph (b) in Sec. Sec.  120.17 and 
120.19 is not within paragraph (a)(2) of each definition, as that 
paragraph deals with releases of technical data. The Department did not 
include the text of paragraph (b) in Sec. Sec.  120.17 and 120.19 as a 
note because it warrants being included in the ITAR as regulatory text. 
The Department notes that paragraph (b) applies to all of paragraph (a) 
and not just to paragraph (a)(2). The Department did not include 
paragraph (b) in Sec.  120.51 because a retransfer will only involve 
same country nationals. A release to a dual or third country national 
will be an export or reexport.
    One commenter asked if theoretical or potential access to technical 
data is a release. The Department confirms that theoretical or 
potential access to technical data is not a release. As stated in the 
preamble to the interim final rule however, a release will have 
occurred if a foreign person does actually access technical data, and 
the person who provided the access is an exporter for the purposes of 
that release.
    One commenter asked how extensively an exporter is required to 
inquire as to a foreign national's past citizenships or permanent 
residencies. The Department confirms that any release to a foreign 
person is a controlled event that requires authorization to all 
countries where that foreign person holds or has held citizenship or is 
a permanent resident. The Department also confirms that it will 
consider all circumstances surrounding any unauthorized release and 
will assess responsibility pursuant to its civil enforcement authority 
based on the relative culpability of all of the parties to the 
transaction.
    One commenter asked if an exporter is required to inquire into 
citizenships a foreign national has renounced. The Department confirms 
that any release to a foreign person is a controlled event that 
requires authorization to all countries where that foreign person has 
held citizenship.
    One commenter asked which citizenship controls (for purposes of 
DDTC authorizations) apply where a foreign national has multiple 
citizenships. The Department confirms that any release to a foreign 
person is a controlled event that requires authorization to all 
countries where that foreign person holds or has held citizenship or is 
a permanent resident, and that such authorization or authorizations 
must authorize all applicable destinations.

[[Page 62006]]

    One commenter asked if DDTC considers an individual's country of 
birth sufficient to establish a particular nationality for that 
individual for ITAR purposes (i.e., will DDTC consider a person born in 
a particular country as a national of that country, even if the person 
does not hold citizenship or permanent residency status in his/her 
country of birth?). The Department confirms that in circumstances where 
birth does not confer citizenship in the country of birth, it does not 
confer citizenship or permanent residency in that country for purposes 
of the ITAR. One commenter noted that the DDTC Agreement Guidelines 
refer to the country of origin or birth, in addition to citizenship, as 
a consideration when vetting DN/TCNs. The Department has updated the 
Agreement Guidelines consistent with the interim final rule.
    Several commenters asked whether a temporary retransfer to a 
separate legal entity within the same country, such as for the purpose 
of testing or to subcontractors or intermediate consignees, is within 
the scope of Sec.  120.51. The Department confirms that such a 
temporary retransfer is a temporary change in end-user or end-use and 
is within the scope of Sec.  120.51. The Department revises Sec.  
120.51 to clarify this point by adding ``. . . or temporary transfer to 
a third party. . . .''
    Several commenters asked that the Department remove ``letter of 
explanation'' from Sec. Sec.  123.28 and 124.1(e), stating that foreign 
parties do not have access to ``letters of explanation'' and other side 
documents which may have been submitted by the U.S. applicant, and 
which may impact the scope of the authorization. The Department does 
not accept the comments to the extent that they recommend a change to 
the regulatory text. However, the Department acknowledges the 
importance of the foreign parties being informed of the scope of the 
authorization relevant to their activities and will address the 
commenters' concerns in the licensing process.
    One commenter noted that, based upon the consolidation of Sec.  
124.16 into Sec.  126.18, the reference to Sec.  124.16 under Sec.  
126.18(a) is no longer accurate. The Department notes that amendatory 
instruction #16 in the interim final rule makes this amendment.
    One commenter asked if use of the word reexport in new Sec.  
126.18(d) means that only employees who have the same nationality as 
their employer can receive technical data directly from, or interact 
with, the U.S. exporter, with attendant responsibility on the employer 
who reexports such technical data to its DN/TCN. The Department 
confirms that, to the extent that a DN/TCN employee of an authorized 
end user, foreign signatory, or consignee acts as an authorized 
representative of that company, the provision of technical data by an 
authorized U.S. party to the foreign company through the DN/TCN 
employee is a reexport from the foreign company to the DN/TCN employee 
that may be authorized under Sec.  126.18.
    One commenter noted that new Sec.  126.18(d)(4) will require 
individual DN/TCNs to sign an non-disclosure agreement (NDA) unless 
their employer is a signatory to a relevant agreement, meaning that 
authorized DN/TCNs will have to sign an NDA for access to articles 
covered by a license. The commenter further noted that the exemptions 
progressively introduced for DN/TCNs were motivated at least in part by 
concerns among U.S. allies about domestic anti-discrimination law. The 
Department does not accept this comment. All activities that could be 
authorized under Sec.  124.16 remain available under Sec.  126.18(d). 
If a foreign party is not able to utilize the expansion of the 
authorization to non-agreement-related reexports due to its domestic 
law, the other provisions of Sec.  126.18 remain available.
    One commenter asked whether the requirement of Sec.  126.18(d)(5) 
that authorized individuals are ``[n]ot the recipient of any permanent 
transfer of hardware'' is intended to limit authorized recipients of 
temporary hardware transfers or to require, in the case of reexports to 
an individual person, the separate authorization by name or controlling 
entity on the agreement. The Department intended that permanent 
retransfers of hardware not be authorized under Sec.  126.18(d). 
Eligible individuals may receive temporary hardware transfers or 
receive hardware on a temporary basis. If a permanent retransfer to an 
individual is intended, that person should be separately authorized by 
name or controlling entity on the agreement.
    One commenter noted that in Sec. Sec.  125.4(b)(9) and 126.18(d), 
the defined term regular employee is modified. Revised Sec.  
125.4(b)(9)(iii) requires that an employee, including foreign person 
employees, be ``directly employed by'' a U.S. person. Revised Sec.  
126.18(d)(1), refers to ``bona fide regular employees directly employed 
by the foreign business entity . . . .'' The commenter requested that 
the Department clarify the use of the term ``regular employee'' and 
state clearly if conditions apply beyond those stated in the definition 
of ``regular employee'' set forth in Sec.  120.39. The Department 
accepts the comment in part. The Department also confirms that a 
regular employee is any party who meets the definition set forth in 
Sec.  120.39 and that Sec.  126.18(d) is updated to clarify that the 
control relates to regular employees as defined in Sec.  120.39. 
However, in Sec.  125.4(b)(9), the term ``directly employed'' is used 
to distinguish employees of a U.S. person from employees of related 
business entities, such as foreign subsidiaries. The Department 
confirms that all regular employees of the U.S. person, under Sec.  
120.39, are included within the authorization, including an individual 
in a long-term contractual relationship hired through a staffing 
agency.
    One commenter noted that Sec.  125.4(a) excludes use of the Sec.  
125.4(b) exemptions for Sec.  126.1 countries and stated that it would 
be advantageous for the U.S. government if U.S. exporters could utilize 
Sec.  125.4(b)(9) in the context of U.S. persons or foreign person 
employees supporting the U.S. government in a Sec.  126.1 country. The 
Department does not accept the comment. Exports by private companies to 
Sec.  126.1 countries require individual authorizations, unless 
authorized under Sec.  126.4. Changes to Sec.  126.4 to account for 
transfers in support of U.S. government efforts will be addressed in a 
separate rulemaking.
    One commenter noted that the revision to Sec.  125.4(b)(9) expands 
the scope of the provision to allow exports, reexports, and retransfers 
to and between U.S. persons employed by different U.S. companies and 
the U.S. government. The commenter stated their opinion that this 
expansion is appropriate and desirable, as it benefits the U.S. 
government in practical situations. The Department accepts this comment 
and confirms that such exports, reexports, and retransfers may be 
authorized under the revised Sec.  125.4(b)(9), if all other terms and 
conditions are met.
    One commenter asked the Department to clarify the impact of the new 
and revised definitions on the requirements under Part 130. The 
Department confirms that the changes to the ITAR in the interim final 
rule did not change the requirements under Part 130. The Department 
also revises Sec.  130.2 to clarify this understanding.
    One commenter noted that the Department did not publish a final 
rule for activities that are not exports, reexports, or retransfers, 
and that the Bureau of Industry and Security (BIS) at the Department of 
Commerce did publish such a provision. The commenter asked the 
Department to clarify if any of the activities described

[[Page 62007]]

by BIS as not being exports, reexports, or transfers under the Export 
Administration Regulations (EAR) would be exports, reexports, or 
retransfers under the ITAR. The Department confirms that it would not 
be appropriate to rely on provisions outside of the ITAR or guidance 
provided by any entity other than the Department for authoritative 
interpretive guidance regarding the provisions or scope of the ITAR. 
The Department also notes that any activity meeting the definition of 
export, reexport, or retransfer requires authorization from the 
Department unless explicitly excluded by a provision of the ITAR, the 
Arms Export Control Act, or other provision of law.
    One commenter asked if, as the Department did not publish a final 
rule defining ``required'' or ``directly related,'' exporters can rely 
on definitions in the EAR or guidance from the BIS on those two terms. 
The ITAR does not define ``required'' or ``directly related.'' The 
Department confirms that it would not be appropriate to rely on 
definitions outside of the ITAR or guidance provided by any entity 
other than the Department for authoritative interpretive guidance 
regarding the provisions or scope of the ITAR. Further questions 
regarding the application of the terms ``required'' or ``directly 
related'' should be referred to the Department for additional 
interpretive guidance.
    Several commenters submitted comments regarding definitions and 
other provisions that were included in the proposed rule, but not 
published in the interim final rule. The Department did not accept 
comments on issues not addressed in the interim final rule and will 
address those definitions and other provisions included in the proposed 
rule, but not published in the interim final rule, in a separate 
rulemaking.

Other Changes in This Rulemaking

    In this final rule, the Department has also made changes to 
Sec. Sec.  126.16 and 126.17 to ensure that they remain consistent with 
the definitions contained in the treaties (with Australia and the 
United Kingdom, respectively) that they implement. These treaties are 
controlling law, and the Department realized that, unless a correction 
were made in this final rule, the ITAR definitions of ``reexport'' and 
``retransfer'' would be inconsistent with the treaty definitions. 
Therefore, for those two sections and the matters controlled therein, 
the treaty definitions will control. Conforming edits were also made to 
the definitions in Sec. Sec.  120.19 and 120.51 to clarify that the 
definitions did not apply to matters covered by the treaties.

Regulatory Findings

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 U.S. government and that rules implementing this 
function are exempt from sections 553 (rulemaking) and 554 
(adjudications) of the Administrative Procedure Act (APA). Although the 
Department is of the opinion that this rulemaking is exempt from the 
rulemaking provisions of the APA and without prejudice to its 
determination that controlling the import and export of defense 
articles and defense services is a foreign affairs function, the 
Department provided a 30-day public comment period and is responding to 
the comments received.

Regulatory Flexibility Act

    Since this rulemaking is exempt from the rulemaking provisions of 5 
U.S.C. 553, there is no requirement for an analysis under the 
Regulatory Flexibility Act.

Unfunded Mandates Reform Act of 1995

    This rulemaking 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.

Small Business Regulatory Enforcement Fairness Act of 1996

    For purposes of the Small Business Regulatory Enforcement Fairness 
Act of 1996 (the ``Act''), a major rule is a rule that the 
Administrator of the Office of Management and Budget's Office of 
Information and Regulatory Affairs (OIRA) finds has resulted or is 
likely to result in: (1) An annual effect on the economy of 
$100,000,000 or more; (2) a major increase in costs or prices for 
consumers, individual industries, federal, state, or local government 
agencies, or geographic regions; or (3) significant adverse effects on 
competition, employment, investment, productivity, innovation, or on 
the ability of United States-based enterprises to compete with foreign-
based enterprises in domestic and foreign markets. The Department does 
not believe this rulemaking will meet these criteria.

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, it is 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). The executive orders stress 
the importance of quantifying both costs and benefits, of reducing 
costs, of harmonizing rules, and of promoting flexibility. OIRA has not 
designated this rulemaking a ``significant regulatory action'' under 
section 3(f) of Executive Order 12866.

Executive Order 12988

    The Department of State has reviewed the rulemaking 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 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 any new reporting or recordkeeping 
requirements subject to the Paperwork Reduction Act, 44 U.S.C. Chapter 
35; however, the Department of State seeks public comment on any 
unforeseen potential for increased burden.

[[Page 62008]]

List of Subjects

22 CFR 120 and 125

    Arms and munitions, Classified information, Exports.

22 CFR 126

    Arms and munitions, Exports.

22 CFR 130

    Arms and munitions, Campaign funds, Confidential business 
information, Exports, Reporting and recordkeeping requirements.

    Accordingly, for the reasons set forth above, the interim final 
rule that was published at 81 FR 35611 on June 3, 2016, is adopted as a 
final rule with the following changes:

PART 120--PURPOSE AND DEFINITIONS

0
1. The authority citation for part 120 continues to read as follows:

    Authority:  Secs. 2, 38, and 71, Pub. L. 90-629, 90 Stat. 744 
(22 U.S.C. 2752, 2778, 2797); 22 U.S.C. 2794; 22 U.S.C. 2651a; Pub. 
L. 105-261, 112 Stat. 1920; Pub. L. 111-266; Section 1261, Pub. L. 
112-239; E.O. 13637, 78 FR 16129.

0
2. Section 120.19 is amended by revising paragraph (a) introductory 
text to read as follows:


Sec.  120.19  Reexport.

    (a) Reexport, except as set forth in Sec.  126.16 or Sec.  126.17, 
means:
* * * * *

0
3. Section 120.51 is revised to read as follows:


Sec.  120.51  Retransfer.

    (a) Retransfer, except as set forth in Sec.  126.16 or Sec.  
126.17, means:
    (1) A change in end use or end user, or a temporary transfer to a 
third party, of a defense article within the same foreign country; or
    (2) A release of technical data to a foreign person who is a 
citizen or permanent resident of the country where the release or 
transfer takes place.
    (b) [Reserved]

PART 125--LICENSES FOR THE EXPORT OF TECHNICAL DATA AND CLASSIFIED 
DEFENSE ARTICLES

0
4. The authority citation for part 125 continues to read as follows:

    Authority:  Secs. 2 and 38, 90-629, 90 Stat. 744 (22 U.S.C. 
2752, 2778); 22 U.S.C. 2651a; E.O. 13637, 78 FR 16129.


0
5. Section 125.1 is amended by adding paragraph (f) to read as follows:


Sec.  125.1  Exports subject to this part.

* * * * *
    (f) Unless limited by a condition set out in an agreement, the 
export, reexport, retransfer, or temporary import authorized by a 
license is for the item(s), end-use(s), and parties described in the 
agreement, license, and any letters of explanation. DDTC approves 
agreements and grants licenses in reliance on representations the 
applicant made in or submitted in connection with the agreement, 
letters of explanation, and other documents submitted.

PART 126--GENERAL POLICIES AND PROVISIONS

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

    Authority:  Secs. 2, 38, 40, 42, and 71, Pub. L. 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, Pub. L. 108-375; Sec. 7089, Pub. L. 111-117; Pub. 
L. 111-266; Sections 7045 and 7046, Pub. L. 112-74; E.O. 13637, 78 
FR 16129.

0
7. Section 126.16 is amended by revising paragraph (a)(1)(iii) to read 
as follows:


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

    (a) * * *
    (1) * * *
    (iii) Reexport and retransfer. (A) Reexport means, for purposes of 
this section only, the movement of previously Exported Defense Articles 
by a member of the Australian Community from the Approved Community to 
a location outside the Territory of Australia.
    (B) Retransfer means, for purposes of this section only, the 
movement of previously Exported Defense Articles by a member of the 
Australian Community from the Approved Community to a location within 
the Territory of Australia;
* * * * *

0
8. Section 126.17 is amended by revising paragraph (a)(1)(iii) to read 
as follows:


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

    (a) * * *
    (1) * * *
    (iii) Reexport and retransfer. (A) Reexport means, for purposes of 
this section only, movement of previously Exported Defense Articles by 
a member of the United Kingdom Community from the Approved Community to 
a location outside the Territory of the United Kingdom.
    (B) Retransfer means, for purposes of this section only, the 
movement of previously Exported Defense Articles by a member of the 
United Kingdom Community from the Approved Community to a location 
within the Territory of the United Kingdom.
* * * * *

0
9. Section 126.18 is amended by revising paragraph (d)(1) to reads as 
follows:


Sec.  126.18  Exemptions regarding intra-company, intra-organization, 
and intra-governmental transfers to employees who are dual nationals or 
third-country nationals.

* * * * *
    (d) * * *
    (1) Regular employees of the foreign business entity, foreign 
governmental entity, or international organization;
* * * * *

PART 130--POLITICAL CONTRIBUTIONS, FEES AND COMMISSIONS

0
10. The authority citation for part 130 continues to read as follows:

    Authority:  Sec. 39, Pub. L. 94-329, 90 Stat. 767 (22 U.S.C. 
2779); 22 U.S.C. 2651a; E.O. 13637, 78 FR 16129.


0
11. Section 130.2 is revised to read as follows:


Sec.  130.2  Applicant.

    Applicant means any person who applies to the Directorate of 
Defense Trade Controls for any license or approval required under this 
subchapter for the export, reexport, or retransfer of defense articles 
or defense services valued in an amount of $500,000 or more which are 
being sold commercially to or for the use of the armed forces of a 
foreign country or international organization. This term also includes 
a person to whom the required license or approval has been given.

Rose E. Gottemoeller,
Under Secretary, Arms Control and International Security, Department of 
State.
[FR Doc. 2016-21481 Filed 9-7-16; 8:45 am]
 BILLING CODE 4710-25-P