Today DDTC published an interim final rule amending the brokering regulations under ITAR Part 129. This rule is effective October 25, 2013 and interested parties may submit comments by October 10, 2013.  Key changes include:

Clarification of registration requirements

  • Only foreign persons outside the U.S. that are owned / controlled by a U.S. person are required to register
  • Foreign subsidiaries can be included on a parents registration
  • Brokering does not include the provision of advice to clients by an attorney

Updating the scope of brokering activities

  • Excludes activities of foreign subsidiaries to a U.S. parent when promoting defense products and services of the parent

New prior approval requirements and exemptions for brokering activities

Revised reporting and recordkeeping for such activities

  • All persons involved must be identified by name, address, nationality, country location and function
  • Include quantity, description and U.S. dollar value of defense articles and services
  • Indicate the source and value of fees and commissions received or expected

Full details of the rule can be found at:

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