The State Department has issued a final rule that, effective Jan. 9, 2025, will increase the fees charged to the approximately 14,500 entities required to register with State’s Directorate of Defense Trade Controls, as set forth below. Affected entities include every person who engages in the business of manufacturing, exporting, temporarily importing, or brokering any defense articles or defense services.
- Tier 1 registrants (new registrants and those for whom DDTC did not issue a favorable license or other authorization determination in the previous year) will pay $3,000 a year, a 33 percent increase.
- Tier 2 registrants (those who received five (down from ten currently) or fewer favorable determinations in the previous year) will pay $4,000 a year, a 45 percent increase.
- Tier 3 registrants (those who received more than five (down from ten currently) favorable determinations in the previous year) will pay $4,000 a year (a 45 percent increase) plus $1,100 (a 340 percent increase) times the total number of favorable authorizations above five.
Discounts on, and alternate payment schedules for, these fees may be available.
DDTC indicates that the higher fees, which are being increased for the first time in 15 years, are needed to fund the improved services and technological advancements it has achieved in recent years. DDTC services include commodity jurisdiction determinations, licenses and authorizations, advisory opinions, violation investigations, guidance on brokering, and educational outreach.
Copyright © 2025 Sandler, Travis & Rosenberg, P.A.; WorldTrade Interactive, Inc. All rights reserved.