On Apr. 24, US State Dept proposed to increase ITAR registration fees.
US State Dept proposed to amend International traffic in arms regulations (ITAR) by increasing registration fees required for Directorate of defense trade controls (DDTC).
Proposed Amendments
In accordance with Arms export control act (AECA) (22 USC 2778(b)), persons who engage in the business of defense articles are required to register with DDTC.
To compute new fees, US State Dept looked at DDTC's past, projected fee collections projected against future operating costs; found operating costs exceed fee revenues.
Need to increase fees to keep up with inflation, increased costs re enhanced services; DDTC would have to cut back on certain services if registration fees are not adjusted.
Tier 1, Tier 2 registrants to have increased fees in line with inflation for last 15 years.
Annual flat fee for Tier 1 would increase from $2,250 to $3,000, Tier 2 annual flat fee would increase from $2,750 to $4,000, Tier 3 to increase beyond adjusted inflation.
For Tier 3 registrants, baseline would rise from $2,750 to $4,000 and the additional fee multiplier for favorable determinations, would rise from $250 to $1,100 for each.
Consultation
Comments on proposed amendments are due by Jun. 10, 2024.
Dec. 2024 Fed Reg Final Rule
On Dec. 10, 2024, US State Dept published final rule in fed reg, effective Jan. 9, 2025.
Only one change was made from the proposed rule, due to a typo, the final rule changed Tier 3 fee multiplier in two places from $1,110 to correct amount of $1,100.
Regulators
US State Dept
Entity Types
Corp
Reference
Nt 12542, 89 FR 99081, 12/10/2024; 89 FR 31119, 4/24/2024; RIN 1400-AF78; Citation: 22 USC 2778(b);
