Statement of Material Change, Merger, Acquisition, or Divestiture of a Registered Party

Forms and Documents

Document Name	Status
Form DS-7789 Statement of Material Change, Merger, Acquisition, or Divestiture of a Registered Party Form	Modified
1405-0227 DS-7789 Supporting Statement 30 Day - Final.docx Supporting Statement A	2020-06-30
Final - 1405-0227 Material Change Legal Authorities.docx Supplementary Document	2020-06-30

IC Document Collections

IC ID	Document Title	Status
226586	Statement of Material Change, Merger, Acquisition, or Divestiture of a Registered Party Form	Modified

ICR Details

OMB Control No: 1405-0227	ICR Reference No: 202006-1405-005
Status: Received in OIRA	Previous ICR Reference No: 201704-1405-006
Agency/Subagency: STATE/AFA	Agency Tracking No:
Title: Statement of Material Change, Merger, Acquisition, or Divestiture of a Registered Party
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular	Date Submitted to OIRA: 06/30/2020

	Requested	Previously Approved
Expiration Date	36 Months From Approved	01/31/2021
Responses	400	1,700
Time Burden (Hours)	800	3,400
Cost Burden (Dollars)	14,000	59,500

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Abstract: The International Traffic in Arms Regulations (ITAR) §§ 122.4 and 129.8 require registrants to notify the Directorate of Defense Trade Controls of the Department of State in the event of a change in registration information, in the event a foreign person or entity acquires a registered entity, or if the registrant is a party to a merger, acquisition, or divestiture (MAD) of an entity producing or marketing ITAR-controlled items. Based on certain conditions enunciated in the ITAR, respondents must notify DDTC of these changes at differing intervals – no less than 60 days prior to the event and/or within 5 days of its culmination. This information is necessary for DDTC to ensure registration records are accurate and to determine whether the transaction is in compliance with the regulations (e.g. with respect to ITAR § 126.1); assess the steps that need to be taken with respect to existing authorizations (e.g. transfers of licenses); and to evaluate the implications for US national security and foreign policy. This information collection is estimated to take an average of 2 hours to execute, and DDTC expects to receive approximately 1,700 responses per year; therefore, the total burden for this collection will be 3,400 hours per year.

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Authorizing Statute(s): None

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking

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Federal Register Notices & Comments
60-day Notice:	Federal Register Citation:	Citation Date:
	85 FR 18324	04/01/2020
30-day Notice:	Federal Register Citation:	Citation Date:
	85 FR 39256	06/30/2020
Did the Agency receive public comments on this ICR? Yes

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Number of Information Collection (IC) in this ICR: 1

IC Title	Form No.	Form Name
Statement of Material Change, Merger, Acquisition, or Divestiture of a Registered Party	DS-7789, DS-7789	STATEMENT OF MATERIAL CHANGES ,   Statement of Material Change

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ICR Summary of Burden

	Total Request	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	400	1,700	0	-1,300	0	0
Annual Time Burden (Hours)	800	3,400	0	-2,600	0	0
Annual Cost Burden (Dollars)	14,000	59,500	0	-45,500	0	0

Burden increases because of Program Change due to Agency Discretion: No

Burden Increase Due to:

Burden decreases because of Program Change due to Agency Discretion: Yes

Burden Reduction Due to: Miscellaneous Actions

Short Statement: DDTC has removed Statement of Material Changes not related to a merger, acquisition or divestiture to the collection 1405-0002, DS-2032 as an amendment. Thus, there is a reduction in burden for this information collection.

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Annual Cost to Federal Government: $232,706

Does this IC contain surveys, censuses, or employ statistical methods? No

Does this ICR request any personally identifiable information (see OMB Circular No. A-130 for an explanation of this term)? Please consult with your agency's privacy program when making this determination.     No

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination.     No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? No

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Common Form ICR:  No

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On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).

The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(i) Why the information is being collected;

(ii) Use of information;

(iii) Burden estimate;

(iv) Nature of response (voluntary, required for a benefit, or mandatory);

(v) Nature and extent of confidentiality; and

(vi) Need to display currently valid OMB control number;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.

Certification Date: 06/30/2020

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