DOS Amends ITAR Brokering Regulations

October 2, 2013

DOS Amends ITAR Brokering Regulations

On August 26, 2013, the Department of State’s (DOS) Directorate of Defense Trade Controls published an interim final rule amending the provisions in the International Traffic in Arms Regulations (ITAR) concerning brokering of defense articles and defense services. Under the new rule, the definition of brokering has been expanded and now includes “any action on behalf of another to facilitate the manufacture, export, permanent import, transfer, re-export, or re-transfer of a U.S. or foreign defense article or defense service, regardless of its origin.” However, the interim rule clarifies that this definition does not include individuals providing administrative services, legal services limited the provision of legal advice, or the actions of an affiliate on the behalf of another affiliate. In addition to redefining “brokering,” the interim rule also clarifies the application of the brokering provisions to foreign persons, applying the provisions to foreign persons within the United States and those foreign persons outside the United States that are owned/controlled by a U.S. person. Finally, the interim rule eliminates the prior notification requirements of the brokering provisions and clarifies that the prior approval requirements apply whenever an activity involves any defense articles or services enumerated in the new rule. The interim rule becomes effective October 25, 2013, but interested parties may submit comments on the rule until October 10, 2013. (78 Fed. Reg. 52680, 8/26/2013.)    






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