State Dept Proposes to Eliminate Certain Electronic DSP-5 Returns
The State Department has issued a proposed rule to amend the International Traffic in Arms Regulations to change the requirements for the return of electronic export licenses (DSP-5) in order to reduce the administrative burden on those currently required to do so.
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Comments are due by August 29, 2011.
State Says Return of Electronic DSP-5s is Redundant, Unnecessary
The State Department states that return of licenses issued electronically by the Directorate of Defense Trade Controls (DDTC) is redundant and unnecessary as all of the export information has been captured and saved electronically.
Proposed Rule Would Not Require Return of Expired, Revoked, Unused Electronic DSP-5s
The proposed rule would amend 22 CFR 123.22(c)(1)1 to state that:
(1) DSP-5 licenses issued electronically by DDTC and decremented electronically by the U.S. Customs and Border Protection through the Automated Export System (AES) are not required to be returned to DDTC. The DSP-5 licenses, when fully decremented or expired, must be maintained by the applicant in accordance with 22 CFR 122.5.
It would also add new paragraphs 22 CFR 123.22(c)(4) and (5) regarding unused and revoked licenses as follows:
(4) Licenses issued but not used by the applicant do not need to be returned to DDTC, even when expired.
(5) Licenses which have been revoked by DDTC are considered expired and must be handled in accordance with paragraphs (c)(1) and (2) of this section.
(22 CFR 123.21(b) would also be amended to state that unused, expired, suspended, or revoked licenses must be handled in accordance with 22 CFR 123.22(c)2.)
Other DSP-5s, and DSP-61, -73, -85, and -94 Still Require Return to DDTC
All other DSP-5 licenses that do not meet the criteria described above would still be required to be returned by the applicant to DDTC.
All DSP-61, DSP-73, and DSP-85 licenses, and DSP-94 authorizations, are to be returned by the applicant to DDTC, as these licenses and authorizations are not decremented electronically, even if an Electronic Export Information is filed via AES.
The proposed rule would therefore amend 22 CFR 123.22(c)(2)3 as follows:
(2) DSP-5, DSP-61, DSP-73, and DSP-85 licenses issued by DDTC but not decremented electronically by the U.S. Customs and Border Protection through AES (e.g., oral or visual technical data releases or temporary import and export licenses retained in accordance with paragraph (a)(2) of this section), must be returned by the applicant to DDTC upon expiration, to include when the total value or quantity has been shipped. A copy must be maintained by the applicant in accordance with 22 CFR 122.5 of this subchapter. AES does not decrement the DSP-61, DSP-73, and DSP-85 licenses. Submitting the Electronic Export Information is not considered to be decremented electronically for these licenses.
The proposed rule would also add a new paragraph 22 CFR 123.22(c)(2) regarding DSP-94s as follows:
(3) A DSP-94 authorization filed with the U.S. Customs and Border Protection must be returned by the applicant to DDTC upon expiration, to include when the total value or quantity has been shipped. AES does not decrement the DSP-94 authorization. Submitting the Electronic Export Information is not considered to be decremented electronically for the DSP-94. A copy of the DSP-94 must be maintained by the applicant in accordance with 22 CFR 122.5.
1Paragraph (c)(1) currently states that CBP must return to the DDTC any license when the total value or quantity authorized has been shipped or when the date of expiration is reached, whichever occurs first.
222 CFR 123.21(b) currently states that unused, expired, expended, suspended, or revoked licenses must be returned immediately to the Department of State.
3Paragraph (c)(2) currently states that any license that is not filed with CBP must be returned by the applicant to the DDTC no later than 60 days after the license has been expended (e.g., total value or quantity authorized has been shipped) or the date of expiration, whichever occurs first.)
(The State Department notes that it has considered these rules in light of Executive Order 13563, "Improving Regulation and Regulatory Review." See ITT's Online Archives or 06/02/11 news, 11060204, for BP summary of the State Department's preliminary plan to review existing regulations under EO 13563.)
(Public Notice 7523, FR Pub 07/14/11)