Legal Authorities 3 of 4

Department of State

§ 122.2

emissivity in the microwave, infrared or ultraviolet spectra, except when specially used
for thermal control of satellites.
(c) Specially designed software or databases for analysis of signature reduction.
(d) Specially designed radar cross section
measurement systems (see § 121.1, Category
XI(a)(3)).
ITEM 18—CATEGORY II
Devices for use in protecting rocket systems and unmanned air vehicles against nuclear effects (e.g. Electromagnetic Pulse
(EMP), X-rays, combined blast and thermal
effects), and usable for the systems in Item 1,
as follows (see § 121.1, Category IV (c) and
(h)):
(a) ‘‘Radiation Hardened’’ ‘‘microcircuits’’
and detectors (see § 121.1, Category XI(c)(3)
Note: This commodity has been formally
proposed for movement to category XV(e)(2)
in the near future).
(b) Radomes designed to withstand a combined thermal shock greater than 1000 cal/sq
cm accompanied by a peak over pressure of
greater than 50 kPa (7 pounds per square
inch) (see § 121.1, Category IV(h)).
NOTE TO ITEM 18(a)
A detector is defined as a mechanical, electrical, optical or chemical device that automatically identifies and records, or registers
a stimulus such as an environmental change
in pressure or temperature, an electrical or
electromagnetic signal or radiation from a
radioactive material. The following pages
were removed from the final ITAR for replacement by DDTC’s updated version § 6(l)
of the Export Administration Act of 1979 (50
U.S.C. App. 2405(l)), as amended. In accordance with this provision, the list of MTCR
Annex items shall constitute all items on
the U.S. Munitions List in § 121.16.
[58 FR 39287, July 22, 1993, as amended at 71
FR 20539, Apr. 21, 2006]

PART 122—REGISTRATION OF
MANUFACTURERS AND EXPORTERS

§ 122.1

Registration requirements.

(a) Any person who engages in the
United States in the business of either
manufacturing or exporting defense articles or furnishing defense services is
required to register with the Directorate of Defense Trade Controls. For
the purpose of this subchapter, engaging in the business of manufacturing or
exporting defense articles or furnishing
defense services requires only one occasion of manufacturing or exporting a
defense article or furnishing a defense
service. Manufacturers who do not engage in exporting must nevertheless
register.
(b) Exemptions. Registration is not required for:
(1) Officers and employees of the
United States Government acting in an
official capacity.
(2) Persons whose pertinent business
activity is confined to the production
of unclassified technical data only.
(3) Persons all of whose manufacturing and export activities are licensed under the Atomic Energy Act of
1954, as amended.
(4) Persons who engage only in the
fabrication of articles for experimental
or scientific purpose, including research and development.
(c) Purpose. Registration is primarily
a means to provide the U.S. Government with necessary information on
who is involved in certain manufacturing and exporting activities. Registration does not confer any export
rights or privileges. It is generally a
precondition to the issuance of any license or other approval under this subchapter.
[58 FR 39298, July 22, 1993, as amended at 71
FR 20540, Apr. 21, 2006]

Sec.
122.1 Registration requirements.
122.2 Submission of registration statement.
122.3 Registration fees.
122.4 Notification of changes in information
furnished by registrants.
122.5 Maintenance of records by registrants.
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.
SOURCE: 58 FR 39298, July 22, 1993, unless
otherwise noted.

§ 122.2 Submission
statement.

of

registration

(a) General. The Department of State
Form DS–2032 (Statement of Registration) and the transmittal letter required by paragraph (b) of this section
must be submitted by an intended registrant with a payment (by check or
money order) payable to the Department of State of one of the fees prescribed in § 122.3(a) of this subchapter.
Checks and money orders must be in

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§ 122.3

22 CFR Ch. I (4–1–07 Edition)

U.S. currency, and checks must be payable through a U.S. financial institution. In addition, the Statement of
Registration and transmittal letter
must be signed by a senior officer 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 package is incomplete.
(b) Transmittal letter. A letter of
transmittal, signed by an authorized
senior officer of the intended registrant, shall accompany each Statement of Registration.
(1) The letter shall state whether the
intended registrant, chief executive officer, president, vice-presidents, other
senior officers or officials (e.g. comptroller, treasurer, general counsel) or
any member of the board of directors:
(i) Has ever been indicted for or convicted of violating any of the U.S.
criminal statutes enumerated in § 120.27
of this subchapter; or
(ii) Is ineligible to contract with, or
to receive a license or other approval
to import defense articles or defense
services from, or to receive an export
license or other approval from, any
agency of the U.S. Government.
(2) The letter shall also declare
whether the intended registrant is
owned or controlled by foreign persons
(as defined in § 120.16 of this subchapter). If the intended registrant is
owned or controlled by foreign persons,
the letter shall also state whether the
intended registrant is incorporated or
otherwise authorized to engage in business in the United States.
(c) Definition. For purpose of this section, ownership means that more than
50 percent of the outstanding voting securities of the firm are owned by one or
more foreign persons. Control means
that one or more foreign persons have
the authority or ability to establish or
direct the general policies or day-today operations of the firm. Control is
presumed to exist where foreign persons own 25 percent or more of the outstanding voting securities if no U.S.

persons control an equal or larger percentage.
[58 FR 39298, July 22, 1993, as amended at 69
FR 70889, Dec. 8, 2004; 71 FR 20540, Apr. 21,
2006]

§ 122.3 Registration fees.
(a) A person who is required to register may do so for a period up to 2
years upon submission of a completed
Form DS–2032, transmittal letter, and
payment of a fee as follows:
1 year .................................................................
2 years ...............................................................

(b) Expiration of registration. A registrant must submit its request for registration renewal at least 30 days prior
to the expiration date.
(c) Lapse in registration. A registrant
who fails to renew a registration and,
after an intervening period, seeks to
register again must pay registration
fees for any part of such intervening
period during which the registrant engaged in the business of manufacturing
or exporting defense articles or defense
services.
[58 FR 39298, July 22, 1993, as amended at 62
FR 27497, May 20, 1997; 69 FR 70889, Dec. 8,
2004; 70 FR 50959, Aug. 29, 2005]

§ 122.4 Notification of changes in information furnished by registrants.
(a) A registrant must, within five
days of the event, notify the Directorate of Defense Trade Controls by
registered mail if:
(1) Any of the persons referred to in
§ 122.2(b) are indicted for or convicted
of violating any of the U.S. criminal
statutes enumerated in § 120.27 of this
subchapter, or become ineligible to
contract with, or to receive a license or
other approval to export or temporarily import defense articles or defense services from any agency of the
U.S. government; or
(2) There is a material change in the
information contained in the Statement of Registration, including a
change in the senior officers; the establishment, acquisition or divestment of
a subsidiary or foreign affiliate; a
merger; a change of location; or the
dealing in an additional category of defense articles or defense services.
(b) A registrant must notify the Directorate of Defense Trade Controls by

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Department of State

§ 122.5

registered mail at least 60 days in advance of any intended sale or transfer
to a foreign person of ownership or control of the registrant or any entity
thereof. Such notice does not relieve
the registrant from obtaining the approval required under this subchapter
for the export of defense articles or defense services to a foreign person, including the approval required prior to
disclosing technical data. Such notice
provides the Directorate of Defense
Trade Controls with the information
necessary to determine whether the authority of § 38(g)(6) of the Arms Export
Control Act regarding licenses or other
approvals for certain sales or transfers
of defense articles or data on the U.S.
Munitions List should be invoked (see
§§ 120.10 and 126.1(e) of this subchapter).
(c) The new entity formed when a
registrant merges with another company or acquires, or is acquired by, another company or a subsidiary or division of another company shall advise
the Directorate of Defense Trade Controls of the following:
(1) The new firm name and all previous firm names being disclosed;
(2) The registration number that will
survive and those that are to be discontinued (if any);
(3) The license numbers of all approvals on which unshipped balances will be
shipped under the surviving registration number, since any license not the
subject of notification will be considered invalid; and
(4) Amendments to agreements approved by the Directorate of Defense
Trade Controls to change the name of a
party to those agreements. The registrant must, within 60 days of this notification, provide to the Directorate of
Defense Trade Controls a signed copy
of an amendment to each agreement
signed by the new U.S. entity, the
former U.S. licensor and the foreign licensee. Any agreements not so amended will be considered invalid.
(d) Prior approval by the Directorate
of Defense Trade Controls is required
for any amendment making a substantive change.
[58 FR 39298, July 22, 1993, as amended at 71
FR 20540, Apr. 21, 2006]

§ 122.5 Maintenance of records by registrants.
(a) A person who is required to register must maintain records concerning
the manufacture, acquisition and disposition (to include copies of all documentation on exports using exemptions
and applications and licenses and their
related documentation), of defense articles; of technical data; the provision
of defense services; brokering activities; and information on political contributions, fees, or commissions furnished or obtained, as required by part
130 of this subchapter. Records in an
electronic format must be maintained
using a process or system capable of reproducing all records on paper. Such
records when displayed on a viewer,
monitor, or reproduced on paper, must
exhibit a high degree of legibility and
readability. (For the purpose of this
section, ‘‘legible’’ and ‘‘legibility’’
mean the quality of a letter or numeral
that enables the observer to identify it
positively and quickly to the exclusion
of all other letters or numerals.
‘‘Readable’’ and ‘‘readability’’ means
the quality of a group of letters or numerals being recognized as complete
words or numbers.) This information
must be stored in such a manner that
none of it may be altered once it is initially recorded without recording all
changes, who made them, and when
they were made. For processes or systems based on the storage of digital
images, the process or system must afford accessibility to all digital images
in the records being maintained. All
records subject to this section must be
maintained for a period of five years
from the expiration of the license or
other approval, to include exports
using an exemption (See § 123.26 of this
subchapter); or, from the date of the
transaction (e.g., expired licenses or
other approvals relevant to the export
transaction using an exemption). The
Managing Director, Directorate of Defense Trade Controls, and the Director
of the Office of Defense Trade Controls
Licensing, may prescribe a longer or
shorter period in individual cases.
(b) Records maintained under this
section shall be available at all times
for inspection and copying by the Directorate of Defense Trade Controls or
a person designated by the Directorate

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Pt. 123

22 CFR Ch. I (4–1–07 Edition)

of Defense Trade Controls (e.g., the
Diplomatic Security Service) or U.S.
Immigration and Customs Enforcement, or U.S. Customs and Border Protection. Upon such request, the person
maintaining the records must furnish
the records, the equipment, and if necessary, knowledgeable personnel for locating, reading, and reproducing any
record that is required to be maintained in accordance with this section.
[70 FR 50959, Aug. 29, 2005]

PART 123—LICENSES FOR THE
EXPORT OF DEFENSE ARTICLES
Sec.
123.1 Requirement for export or temporary
import licenses.
123.2 Import jurisdiction.
123.3 Temporary import licenses.
123.4 Temporary import license exemptions.
123.5 Temporary export licenses.
123.6 Foreign trade zones and U.S. Customs
and Border Protection bonded warehouses.
123.7 Exports to warehouses or distribution
points outside the United States.
123.8 Special controls on vessels, aircraft
and satellites covered by the U.S. Munitions List.
123.9 Country of ultimate destination and
approval of reexports or retransfers.
123.10 Non-transfer and use assurances.
123.11 Movements of vessels and aircraft
covered by the U.S. Munitions List outside the United States.
123.12 Shipments between U.S. possessions.
123.13 Domestic aircraft shipments via a
foreign country.
123.14 Import
certificate/delivery
verification procedure.
123.15 Congressional certification pursuant
to Section 36(c) of the Arms Export Control Act.
123.16 Exemptions of general applicability.
123.17 Exports of firearms and ammunition.
123.18 Firearms for personal use of members
of the U.S. Armed Forces and civilian
employees of the U.S. Government.
123.19 Canadian and Mexican border shipments.
123.20 Nuclear related controls.
123.21 Duration, renewal and disposition of
licenses.
123.22 Filing, retention, and return of export licenses and filing of export information.
123.23 Monetary value of shipments.
123.24 Shipments by U.S. Postal Service.
123.25 Amendments to licenses.
123.26 Recordkeeping requirement for exemptions.

123.27 Special licensing regime for export to
U.S. allies of commercial communications satellite components, systems,
parts, accessories, attachments and associated technical data.
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.
SOURCE: 58 FR 39299, July 22, 1993, unless
otherwise noted.

§ 123.1 Requirement for export or temporary import licenses.
(a) Any person who intends to export
or to import temporarily a defense article must obtain the approval of the
Directorate of Defense Trade Controls
prior to the export or temporary import, unless the export or temporary
import qualifies for an exemption
under the provisions of this subchapter. Applications for export or
temporary import must be made as follows:
(1) Applications for licenses for permanent export must be made on Form
DSP–5 (unclassified);
(2) Applications for licenses for temporary export must be made on Form
DSP–73 (unclassified);
(3) Applications for licenses for temporary import must be made on Form
DSP–61 (unclassified); and
(4) Applications for the export or
temporary import of classified defense
articles or classified technical data
must be made on Form DSP–85.
(b) Applications for Department of
State export licenses must be confined
to proposed exports of defense articles
including technical data.
(c) As a condition to the issuance of
a license or other approval, the Directorate of Defense Trade Controls may
require all pertinent documentary information regarding the proposed
transaction and proper completion of
the application form as follows:
(1) Form DSP–5, DSP–61, DSP–73, and
DSP–85 applications must have an
entry in each block where space is provided for an entry. All requested information must be provided.
(2) Attachments and supporting technical data or brochures should be submitted in seven collated copies. Two
copies of any freight forwarder lists

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