22 cfr 129 T f

Brokers engaged in brokering activities are required to register and pay a registration fee as stated in the Arms Export Control Act.

One can engage in the business of brokering activities without a license issued in accordance with the Arms Export Control Act.

All brokering activities mentioned in the subchapter apply only to defense articles and services designated in § 121.1.

A broker is only defined as a foreign person located in the United States.

Ownership or control by a U.S. person does not impact the definition of a broker for foreign persons located outside the United States.

The registration and licensing requirements for brokers are outlined in E.O. 13637.

A U.S. person is considered to control a firm if they own 50% or more of the outstanding voting securities.

U.S. person control is automatically assumed if foreign persons own 25% or more of the outstanding voting securities of a firm.

Brokering activities encompass actions related to finance, insurance, and transportation of defense articles and services.

Engaging in brokering activities is a mandatory requirement for registering with the Directorate of Defense Trade Controls.

Activities by a U.S. person limited to U.S. domestic sales are considered brokering activities.

Providing legal advice to clients falls under brokering activities.

Persons acting as end-users of defense articles are engaging in brokering activities.

Registering with the Directorate of Defense Trade Controls is a pre-requisite for using exemptions related to brokering activities.

Brokering activities only require one instance of brokering to be considered engaging in the business.

Activities to facilitate the export of items subject to EAR qualify as brokering activities.

All requests for approval of brokering activities must be submitted to the Directorate of Defense Trade Controls unsigned.

The empowered official signing the request for approval must certify that the request is incomplete and inaccurate.

The period of validity for an approval can exceed five years.

The request for approval should not include the estimated U.S. dollar value of defense articles and defense services.

A certification is required on whether any member of the board of directors is ineligible to contract with any U.S. Government agency.

The empowered official signing the request for approval should mention that certain information required by paragraph (b) is not yet available.

Brokering activities under a sale through direct commercial sale are not required to be described fully in the request for approval.

The request for approval does not need to include the end-user and end-use for each defense article or defense service.

The certification by the empowered official signing the request for approval must confirm that any other person involved in the brokering activities is not ineligible to receive an export license.

A statement is not required in the request for approval regarding whether the brokering activities are related to a sale through direct commercial sale.

Brokering activities undertaken for an agency of the U.S. Government are always required to obtain approval.

The exemption for brokering activities does not apply if the U.S. Government agency contract with the broker does not explicitly state that the contract supports a foreign assistance or sales program authorized by law.

Brokering activities regarding foreign defense articles or services arranged wholly within and destined exclusively for NATO countries do not require approval.

Brokers engaging in exempted brokering activities must be registered as required by § 129.3.

If a person benefiting from brokering activities is ineligible as defined in § 120.16(c), the broker is exempt from obtaining approval.

Brokers engaging in exempted brokering activities must comply with all provisions of part 129 except for obtaining approval.

The exemption for brokering activities applies to all countries listed in § 129.5(b).

Approval is required for brokering activities involving defense articles or services for the use of a U.S. Government agency.

The Directorate of Defense Trade Controls must provide written concurrence for brokering activities to be exempt from approval.

Submersible vessels belong to Category XXI of § 121.1 of this subchapter.

Persons exclusively in the business of financing, insuring, transporting, customs brokering, or freight forwarding are always exempt from registration, approval, recordkeeping, and reporting under this section.

U.S. persons who are registered as a manufacturer or exporter are not required to submit a separate broker registration if more than 50% of the voting securities are owned by the registrant or its subsidiaries.

Registration under this section is not required for U.S. persons involved in brokering activities unless an exception is granted by the Department of Homeland Security.

Foreign governments or international organizations, including their employees acting in an official capacity, are always required to register under this section.

Banks or credit companies are only required to register under certain circumstances if they provide commercially available lines of credit to persons registered in accordance with parts 122 or 129 of this subchapter.

Registration under this section is a precondition for obtaining approval for brokering activities unless approval has been granted by the Department of State.

Persons exempt from registration are not subject to the policy on embargoes and other proscriptions as outlined in § 129.7.

Air carriers or freight forwarders that merely transport licensed defense articles are exempt from any registration requirements under this section.

Banks providing financing for defense articles are exempt from registration if they do not have physical custody of the defense articles involved in their transactions.

Approval from the Directorate of Defense Trade Controls is not required for U.S. persons engaging in brokering activities involving foreign defense articles.

Approval from the Directorate of Defense Trade Controls is required for all brokering activities involving any country, area, or person referred to in § 126.1.

The exemptions in § 129.5 apply to brokering activities subject to the section discussed in the text.

A U.S. person senior officer must sign the Statement of Registration for intended registrants, except for cases where a foreign senior officer may sign if the registrant is seeking to register as a foreign broker.

Foreign persons are not required to provide documentation demonstrating their authorization to do business in their respective country when submitting a Statement of Registration.

Registrants are required to submit a separate Statement of Registration and pay an additional fee annually, regardless of meeting the provisions in § 129.3(d).

Brokering activities that involve countries identified by the Department of State through notice in the Federal Register may require approval due to limitations on defense articles or services imposed for national security reasons.

An intended registrant is not required to submit a Department of State form DS-2032 (Statement of Registration) when applying for registration.

The Directorate of Defense Trade Controls will notify the registrant if the Statement of Registration is incomplete by returning the entire registration package, as stated in the text.

It is the policy of the Department of State to approve all requests for brokering activities involving countries or persons referred to in paragraph (b) or (c) of the section.

A person who is required to register must do so on a biannual basis according to the text.

A registrant must submit its request for registration renewal no earlier than 60 days prior to the expiration date.

If a registrant fails to renew a registration, they must pay registration fees for any part of the intervening period in which they did not engage in brokering defense articles or services.

The Statement of Registration (form DS-2032) must include a certification by any employee of the intended registrant.

If a registrant is foreign owned or foreign controlled, the certification shall include an explanation of such ownership or control.

A registrant must notify the Directorate of Defense Trade Controls within ten days of the event if there is a change in the information contained in the Statement of Registration.

Changes in the establishment, acquisition, or divestment of a U.S. subsidiary do not need to be reported to the Directorate of Defense Trade Controls.

If any person referred to in §129.8(c) becomes ineligible to contract with any U.S. Government agency, a registrant must notify the Directorate of Defense Trade Controls within five days of the event.

The Statement of Registration must be submitted for renewal at least 45 days prior to the expiration date.

If a registrant is a U.S. person owned by a foreign person, they are exempt from providing an explanation of ownership or control in their certification.

Failure to report changes in senior officers listed in the Statement of Registration does not result in any consequences for the registrant.

A registrant must provide written notification to the Directorate of Defense Trade Controls 30 days in advance of any intended sale or transfer to a foreign person of ownership or control.

If a registrant's registration lapses, they do not need to pay registration fees for the intervening period if they were not engaged in brokering activities during that time.

A registrant who merges with another company must advise the Directorate of Defense Trade Controls of all new firm names and registration numbers.

A person desiring guidance on brokering activities may orally request guidance from the Directorate of Defense Trade Controls.

Brokers are required to renew their registration annually if they have combined an existing broker registration with an existing manufacturer/exporter registration.

A registrant does not need to provide written notification about intended sales or transfers to foreign persons listed in its Statement of Registration.

A registrant who engages in brokering activities during a lapsed registration period does not need to pay registration fees for that period upon seeking to register again.

A registrant must provide written notification about any intended sale or transfer of ownership or control to a foreign person at least 50 days in advance.

If certain information is not yet available upon submitting a request for guidance on brokering activities, this circumstance does not need to be explained.

The guidance provided by the Directorate of Defense Trade Controls on whether an activity constitutes a brokering activity does not constitute an official determination by the Department of State.

A person required to register under this part must provide an annual report of brokering activities within 60 days after the expiration of registration.

The empowered official is responsible for certifying that the report of brokering activities is complete and accurate.

The report of brokering activities should include details about the source of funding for each activity.

Failure to engage in any brokering activities does not require the submission of a report.

Brokers are exempt from providing a report of their brokering activities if they are registered in accordance with § 129.3(d).

The report of brokering activities must be submitted separately from the registrant's annual renewal submission.