75 Questions
What is required for persons engaged in the business of brokering activities according to the Arms Export Control Act?
Register and pay a registration fee
Which items do the brokering activities regulations apply to?
Both defense articles and items in 27 CFR 447.21
Who is considered a broker under the regulations?
Any person engaged in the business of brokering activities as defined
What is a requirement for a foreign person located outside the United States and owned or controlled by a U.S. person to be considered a broker?
Meeting the definition of a broker in the regulations
What action is prohibited without a license issued under the Arms Export Control Act?
Brokering activities
What additional requirement is needed for engaging in the business of brokering activities besides registration?
Obtaining a license
What does it mean for a firm to be 'controlled by a U.S. person'?
One or more U.S. persons have authority or ability to establish general policies.
What does 'brokering activities' include?
Financing and arranging purchase of defense articles.
Which of the following is NOT categorized as 'brokering activities'?
Providing office space and equipment.
What is required for a person who engages in brokering activities?
To register with the Directorate of Defense Trade Controls.
When is a firm presumed to be 'controlled by a U.S. person'?
When U.S. persons own 25 percent or more of outstanding voting securities.
What activities are excluded from 'brokering activities'?
'Collecting product and pricing information to prepare a response to Request for Proposal.'
'Engaging in the business of brokering activities' requires how many occasions of brokering?
1
'Brokering activities' do NOT include which type of action?
'Activities that facilitate the manufacture in the United States.'
'Brokering activities' involve actions related to which of the following processes?
'Transportation and freight forwarding.'
What is necessary for 'U.S. person control' to be rebuttably presumed?
U.S. persons owning 25 percent or more of outstanding voting securities.
What is required of any person who is mandated to register under this part?
To submit a report of brokering activities on an annual basis
Who is responsible for certifying the completeness and accuracy of the report of brokering activities?
The empowered official signing the report
What is one of the requirements for each brokering activity to be included in the report?
Identification of all persons who participated in the activities
When should a report of brokering activities be submitted if the registrant is not renewing their registration?
Within 30 days after expiration of registration
What should be included in the report regarding consideration received by persons who participated in brokering activities?
Type and U.S. dollar value of consideration received
What action should be taken in the report if there were no brokering activities?
Include certification that no activities took place
What must all requests for approval of brokering activities include?
A certification stating whether certain individuals have been charged with violating U.S. criminal statutes
Who must sign the requests for approval of brokering activities?
An empowered official
What is required in the description of brokering activities that will be undertaken?
Information about all persons who may participate in the brokering activities
What should be included in the description of each defense article or defense service involved in the brokering activities?
Estimated quantity and U.S. dollar value of defense articles and services
Who should include a certification that the request for approval is complete and accurate?
An empowered official signing the request
What happens if certain information required by paragraph (b) is not yet available at the time of submission?
The fact must be stated and explained in the certification
What is the maximum period of validity for an approval?
Four years
In obtaining approval for brokering activities, what specific information must be provided about defense articles or services?
The name or military nomenclature of each defense article
Which of the following individuals is mentioned in the requirement for approval of brokering activities?
General counsel
What is an essential requirement when describing each defense article involved in brokering activities?
Estimated quantity and U.S. dollar value of each article
Who is not required to register, approve, keep records, or report under the section mentioned?
Foreign governments acting in an official capacity
Under what circumstances are banks, firms, or persons providing financing for defense articles or services required to register?
When they are directly involved in arranging transactions involving defense articles or services
What is the consequence for U.S. persons registered as manufacturers or exporters if more than 50% of the voting securities are owned by them?
Not required to submit a separate broker registration or pay a fee
What is the precondition for obtaining approval for brokering activities as stated in the text?
Registration under the mentioned section
Which category of U.S.-origin defense articles or services requires approval for brokering activities?
Category I(a) through (d) and Category II(a) and (d)
Under what circumstances are banks, firms, or persons providing financing not exempt from registration?
When they are directly involved in arranging defense transactions
What happens if U.S. persons registered as manufacturers or exporters have subsidiaries and affiliates listed on their Statement of Registration?
They are not required to submit a separate broker registration or pay a fee if conditions are met
'Registration under this section' refers to a precondition for which specific action?
$129.4 brokering activities approval
What is required before engaging in brokering activities involving any country, area, or person referred to in § 126.1 of this subchapter?
Obtaining the approval of the Directorate of Defense Trade Controls
Who must sign the Statement of Registration (form DS-2032) when submitting it to the Office of Defense Trade Controls Compliance?
A U.S. person senior officer or a foreign broker
What is the consequence if a registrant's Statement of Registration (form DS-2032) is incomplete?
The entire registration package is returned
When must a person who is required to register submit a completed Statement of Registration (form DS-2032) and a fee?
On an annual basis
Which individuals may sign the Statement of Registration (form DS-2032) for a foreign broker?
Foreign senior officer empowered by a U.S. person
What brokering activities require approval from the Directorate of Defense Trade Controls?
Any activities that involve any country, area, or person listed in § 126.1
Which statement accurately describes submitting the Statement of Registration?
'Form DS-2032' must be submitted annually for registration
What action does the Department of State take regarding requests for approval related to brokering activities involving restricted countries?
'Requests are denied'
'Form DS-2032' can be signed by a foreign senior officer if which condition is met?
'If the registrant seeks only to register as a foreign broker'
What type of defense articles are described by Category IV(a) of § 121.1?
Rockets, bombs, and grenades
Which of the following is exempt from the requirement for approval when arranged wholly within and destined exclusively for NATO countries?
Submersible vessels
Which category of defense articles includes night vision-related articles?
Category XII(c)
In which section of the subchapter does it mention the exemption for brokering activities involving U.S. Government agencies?
§ 129.5
What is required for brokering activities regarding a foreign defense article or defense service destined exclusively for NATO countries?
Approval from Directorate of Defense Trade Controls
Who must comply with all other provisions of part 129 when using the exemptions mentioned?
The broker
Under what conditions are brokering activities undertaken for a U.S. Government agency exempt from approval requirements?
When they concern defense articles solely for the use of the agency
What happens if a broker involved in brokering activities is not registered as required by § 129.3?
They are not exempt from obtaining approval from the Directorate of Defense Trade Controls
'Ineligible as defined in § 120.16(c)' refers to which group of individuals or entities?
$120.16(c) individuals or entities
What must a U.S. or foreign registrant provide written notification for at least sixty days in advance?
Ownership or control transfer to a foreign person
When a registrant merges with another company, what information must be provided to the Directorate of Defense Trade Controls?
New firm name and previous firm names
What happens to any brokering activity approval not notified during a merger or acquisition?
It becomes invalid
What is the consequence if a registrant's registration lapses due to non-renewal?
Payment for the intervening period
What must be included in a request for guidance on brokering activities?
Estimated quantity of defense articles
When does a registrant need to provide written notification under paragraph (e)?
60 days before a sale or transfer to a foreign person
If certain information is not yet available at the time of submission for guidance, what should be done according to the text?
' Clearly state and explain this circumstance in the request
What action should a registrant take if they combine an existing broker registration with an existing manufacturer/exporter registration?
' Provide written notification to the Directorate of Defense Trade Controls
What information must be provided if requesting guidance on brokering activities?
' Description of each defense article involved, including quantity
When must a registrant submit a request for registration renewal?
Between 30 to 60 days prior to the expiration date
What must a registrant do if they fail to renew their registration and want to register again after an intervening period?
Pay registration fees for the intervening period when engaged in brokering defense articles or services
Who is required to provide a certification regarding certain criminal matters in the Statement of Registration?
An authorized senior officer of the intended registrant
What information must be provided by a registrant if they are foreign owned or controlled?
Details of the foreign person who ultimately owns or controls the registrant
When should a written notification be provided to the Directorate of Defense Trade Controls?
Within five days of a change in any information in the Statement of Registration
Which officers are required to sign and submit written notifications to the Directorate of Defense Trade Controls?
The chief executive officer, president, or partner
What event triggers the need for a written notification to be provided to the Directorate of Defense Trade Controls?
Change in ownership of a subsidiary
In addition to a chief executive officer, who else can sign written notifications?
A partner or member within the company structure
This quiz covers the regulations outlined in PART 129 regarding the registration and licensing of brokers under the Arms Export Control Act. It focuses on the purpose, requirements, and procedures related to brokering activities.
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