State Letter

United States Department of State
BlL,reau of PoliJ;i<:al-Miluary' Affairs
OireUufUU

{~/D~fellJeTrade Controls

Washing/on,

O.e. 20522-0112

OCT 1 0 >Xl
Eileen Albanese
Chief Licensing Officer
Bureau of Industry & Security
Dej;artment of Commerce
14 Street & Pennsylvania Avenue
Room #2616
Washington, DC 20230
Dear Eileen Albanese:
The President is authorized under 22 U.S.c. 2778 of the Arms Export
Control Act (AECA) to control the import and the export of defense articles and

services. Executive Order 11958, as amended, delegated the statutory authority to
regulate exports of defense articles and defense services to the Secretary of State
and the authority to regulate imports of defense articles and defense services to the
Attorney General. The Department of State's Directorate of Defense Trade
Controls (DDTC) manages the temporary import of defense articles and defense
services and the Bureau of Alcohol, Tobacco, and Fireanns manages the
permanent import of defense articles.
The International Import Certificate (HC), Form BIS-645P/ATF-4522/DPS53, is a shared form used by the Department of Commerce's (DOC) Bureau of
Industry & Security (BIS); the Department of Justice's Bureau of Alcohol,
Tobacco, & Firearms (BATF); and DDTC. The DOC is the lead agency
responsible for processing updates and changes to the ne. The current version of
the lIC, OMB No. 0694-0017, will expire on September 30, 2010.
On average, DDTC receives 300 HCs per year. Many of the lIes are
submitted to DDTC in error. There is no block on the He for the importer to
indicate the type of import (pelmanent or temporary), thus it is the applicant's
responsibility to send the IIC"to the appropriate Department. Therefore, it is not
possible for DOTC to know if it is the correct agency to receive an fIe, unless
there is a cover letter indicating the type of import. Most lIes are not submitted
with a cover letter. After discussing the lIe with a few defense companies, in
addition to reviewing the lIes submitted with cover letters, DDTC has determined

that ncs are bemg sent to DDTC for pemlanent imports. DDTC has no
jurisdiction over permanent imports. IlCs for pemlanent imports of defense
articles should be submitted to BATF, as the agency with authority overpernlanent
imports.
DDTe does receive lICs for temporary import exemptions, in which the
foreign company requests documentation for a transaction. However, even in
situations in which the applicant is submitting the lIe correctly, DDTC believes
that the lICs are unnecessary and redundant. The DSP~61 Application/License for
Temporary Import of Unclassified Defense Articles and the DSP-85
ApplicationJLlcense for Permanentffemporary Export or Temporary Import of
Classified Defense Articles and Related Classified Teclmical Data, serve the same
purpose as the lIe. A signed DSP-61 or DSP-85 is sufficient to prove to a foreign
government the U.S. Government's knowledge of and authorization for a
temporary import.

The attached draft /TAR amendment reflects DDTC's proposal to no
longer accept submissions of the He. Ifthere are no objections to DDTC's
proposal, once the Federal Register Notice announcing the amendment to the
ITAR is published, industry will have to submit DSP-61 s or DSP-85s for
transactions in which the foreign party requires documentation of a temporary
import. ATF will then. be responsible for processing lIes for all permanent
imports. The BATF and BIS should expect a marginal increase in lIe
submissions.
Since the DOC is the lead agency on this form, in 20 I0 when the fonn is
due for renewal, you are requested to make the following changes to the He:
a.

b.
c.

d.

Delete references to the Department of State from the upper lefthand block of the form that lists the relevant agencies and from
the "For U.S. Government Use" block at the upper right-hand
block of the form and at the bottom of the form;
Retain the reference to the Department of State in block 4 of the
form;
Add the word "penn anent" between the words "No" and "import"
in the block at the bottom of the fonn just before the "For U.S.
Government Use" block;
Delete references to the Department of State on the Instruction
page in the first paragraph and in the first paragraph under
"General Instructions;"

e_

f.

g.

On the Instruction page, under the heading "Issuance by U.S.
Department of State," change the paragraph to Tead: "This form
does not apply to the foreign transfer by a U.S. entity of U.S.
Munitions List articles (22 Code of Federal Regulation 121). For
such foreign transfers, communicate with the Directorate of
Defense Trade Controls, U.S. Department of State, Washington,
D.C. 20520." Also, change the heading "Issuance by U.S.
Department of State" to read: "Communication with U.S.
Department of State concerning Foreign Transfers."
On the instructions page, under the heading "Regulations
Covering Use of This Fonn" delete paragraph b.
All other references to the Department of State on the Instruction
page should be retained.

The DOC also is requested to notify DDTC once these changes to the form
have been made, so that DDTC can amend Section 120.28 of the !TAR.
Additionally, we would like the BIS ICB Liaison, Larry Hall, to forward our
proposed plan to the Office of Management & Budget for review and comment.
Please provide your comments on DOTe's proposal to no longer accept
submissions of the IntemationallmpoTt Certificate, no later than November 17,
2008, to Allie Frantz at 202-736-9220 or FrantzA(iiiState.gov.
Sincerely.

Enclosure:
1. Draft Federal Register Notice regarding the International Import
Certificate and amendment to the International Traffic in Arms
Regulations.
Cc: Larry Hall, BIS reB Liaison.

[Billing Code 4710-25]

DEPARTMENT

OF STATE

22 CFR Part 123.4

[Public Notice

J

RIN

Amendment to tbe International Traffic in Arms Regulations: International
Import Certificate BIS-645P/ATF-4522/DSP-53
AGENCY:

ACTION:

Department of State.

Final Rule.

SUMMARY: The Department of State is amending the International Traffic in
Arms Regulations (IT AR) to reflect the Directorate of Defense Trade Controls'
decision no longer to accept submissions of the International Import Certificate
(DSP-53).
DATES; Effective Date: This rule is effective on [Insert Date).
FOR FURTHER INFORMATION CONTACT: Allie Frantz, Directorate of
Defense Trade Controls, Bureau of Political-Military Affairs, Department of State,
(202) 736-9220 or FAX (202) 261-8199; E-mail [email protected],
ATIN: International Import Certificate, !TAR Part 123.4.
SUPPLEMENTARY INFORMATION; The International Import Certificate
(IIC), Form BIS-645P/ATF-4522/DPS-53, is a shared form used by the

2

Department of Commerce's Bureau of Industry & Security; the Department of
Justice's Bureau of Alcohol, Tobacco, & Firearms; and the Department of State's
Directorate of Defense Trade Controls. The Directorate of Defense Trade Controls
(DDTC) is revising 22 CFR 123.4 to reflect DDTC's decision no longer to accept
submissions of the International Import Certificate (DSP-53). For temporary
import exemptions in which the foreif,'ll exporter requires documentation, the U.S.
importer will be required to obtain a DSP-61 ApplicationILicense
for Temporary
Import of Unclassified Defense Articles or a DSP-85 Application/License
for
Permanent! Temporary Export or Temporary Import of Classified Defense Articles
and Related Classified Technical Data. The Bureau of Industry & Security and the
Bureau of Alcohol, Tobacco, & Firearms will continue to adjudicate International
Import Certificate submissions for items unde. their jurisdiction.

REGULATORY

ANALYSIS AND NOTICES

Administrative Procedure Act: This amendment involves a foreign affairs function
of the United States and, therefore, is not subject to the procedures
U.S.C. §§553 and 554.

contained in 5

Small Business Regulatory Enforcement Fairness Act of 1996: This amendment
has not been found to be a major rule within the meaning of the Small Business
Regulatory Enforcement Fairness Act of 1996.

Paperwork Reduction Act: This rule does not impose any new reporting or
recordkeeping
Chapter 35.

requirements

subject to the Paperwork Reduction Act, 44 D.S.C.

Regulatmy Flexibility Act: Because this rule is exempt from notice and comment
rulemaking under 5 U.S.C. 553, it is exempt from the regulatory flexibility analysis
requirements set forth in sections 603 and 604 of the Regulatory Flexibility Act (5
U.S.C. §§603 and 604).

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 $lOO rrriIIion 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.

3

Executive Orders j 2372 and 13132: This amendment will not have substantia!
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 goverrunent. 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. Executive Order 12372, regarding intergovernmental consultation
Federal programs and activities, does not apply to this amendment.

on

Executive Order /2866: This amendment is exempt from the review under
Executive Order 12866, but has been reviewed internally by the Department of
State to ensure consistency with the purposes thereof.

Executive Order 12988: The Department of State has reviewed the proposed
regulations 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.

List of Subjects
22 CFR Part 123
Arms and munitions, Exports, Reporting and recordkeeping

requirements.

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

PART 123-Licenses

for tbe 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 V.S.C.
2752,2778,2797);
22 U.S.C. 2753; E.O. 11958,42 FR 4311; 3 CFR, 1977 Compo
p. 79; 22 V.S.C. 2651a; 22 U.S.c. 2776; Pub. L. 105-261, 112 Stat. 1920; Sec
1205(a), Pub. L. 107-228.
2. Section 123.4 is amended by revising paragraph (c) to add part (4) to read as
follows:

§123.4 Temporary

import license exemptions.