Defense Export Regulations to be Revised to Ease Reporting Burden

The State Department’s Directorate of Defense Trade Controls is accepting comments through Aug. 14 on a proposed rule that it says would revise the International Traffic in Arms Regulations to modernize, streamline, and standardize reporting on certain political contributions and fees or commissions.

In accordance with the Arms Export Control Act, DDTC requires adequate and timely reporting on political contributions, gifts, commissions and fees paid, or offered or agreed to be paid, (1) in connection with the sale or export of certain defense articles, defense services, and design and construction services, or (2) to or for the armed forces of a foreign country or international organization.

DDTC states that it is now proposing to:

– increase from $500,000 to $1 million the value of defense articles or services that triggers reporting of political contributions and fees or commissions;

– increase from $5,000 to $10,000 the aggregate total of political contributions, and from $100,000 to $200,000 the aggregate total of fees or commissions, that must be reported;

– consolidate reporting to a single annual submission rather than requiring it on a transaction-by-transaction basis; and

– implement an electronic submission form to reduce administrative burden and collect and report more accurate information.

DDTC states that this rule supports the policy directed in Executive Order 14268 to reduce rules and regulations involved in the development, execution, and monitoring of foreign defense sales and arms transfer cases.