Who says life does not get simpler with Export Control Reform?

Effective October 25, 2013, the US Department of State’s Directorate of Defense Trade Controls (DDTC) issued new rules allowing manufacturer/exporter and broker registrants to consolidate their registrations and pay one fee.  Effective November 2013, renewing applicants may consolidate registrations.
 
The New DS-2032 Statement of Registration may be submitted either electronically (via Electronic Form Submission (EFS))  or by registered mail or express mail until December 31, 2013.  Effective January 1, 2014, only electronic submissions will be permitted.
 
In the consolidation process, the brokering registration form is essentially collapsed into the manufacturer/exporter registration form, which now has added boxes for Manufacturer/Exporter and Broker not only for the parent company, but also for the subsidiaries.
 
For companies holding both manufacture/exporter and brokering registrations, the consolidation takes place as follows:
 
Consolidating where the manufacturer/exporter registration expires before the brokering registration

  • Registrants whose manufacturer/exporter registration comes due prior to their brokering registration can simply add the brokering registration when they renew the manufacturer/exporter registration.  In the new form, they will have to identify for each listed subsidiary whether they are manufacturers, exporters, or brokers.
  • Registrants should continue to submit the manufacturer/exporter registration fee in advance, record the information on the new DS-2032, and attach a copy of the electronic payment confirmation with submission of the DS-2032 package.
  • Registrants do not need to send a separate broker registration fee with the consolidated M and K registration.  M and K codes will both continue to exist; however, the broker expiration date will be aligned to coincide with the manufacturer/exporter registration expiration date.
  • Renewing registrants may submit consolidation up to 60 days prior but no later than 30 days prior to the expiration of their manufacturer/exporter registration. Registrants who submit their consolidated registration renewal package less than 30 days prior to expiration of their manufacturer/exporter registration risk their registration lapsing during registration review.
  • Registrants will continue to receive two registration complete letters, one for the M code and one for the K code, simultaneously delivered by email.

Consolidating where the brokering registration expires before the manufacturer/exporter registration

  •  Registrants with broker registrations expiring on or after November 30, 2013, and prior to the manufacturer/exporter registration should request extensions of the broker registration until the manufacturer/exporter registration is due in order to consolidate.  See instructions below regarding the precise letter to request an extension.
  • Once the manufacturer/exporter registration is due, registrants should consolidate the forms per the above.

An added bonus is that DDTC is now requiring that the annual broker activity report be submitted with the consolidated registration renewal package. The broker activity report should cover all broker activity not previously reported up to three months prior to the date the manufacturer and/or exporter registration expires. This means that some companies who had two registrations and an annual brokering activity report will go from three filings to a single DDTC filing, albeit a larger one.

To request an extension of a registrant’s broker registration, registrants MUST submit a letter with the following required elements:

  1. Prepared on the registrant’s letterhead.
  2. Copied verbatim as written below, except for the sections in parentheses and italicized. In those sections, include specific information. (See sample letter below.)
  3. Include registrant’s manufacturer/exporter and broker registration codes and expiration dates.
  4. Include a point of contact, including name, phone number, and the email address of the person to whom you would like DDTC to send the broker registration complete letter containing the updated expiration date.
  5. Signed by an authorized senior officer listed in block 7 of the DS-2032 form.
  6. Prepared using the same business legal name as the US or Foreign equivalent Government or State (endorsed or issued) documentation supporting legal name and organizational type of the registrant (e.g. articles of organization, articles of incorporation, State Incorporation Certificate).
  7. Addressed to Mr. Daniel Buzby, Acting Director, Office of Defense Trade Controls Compliance, in hard copy to one of the following addresses:

Registered Mail or Express Mail (such as FEDEX, DHL, UPS, etc.) Delivery
(Express mail is recommended for tracking and faster delivery)

U.S. Department of State
Directorate of Defense Trade Controls
Compliance and Registration Division
2401 E Street NW, SA-1, Room H1200
Washington, DC 20037
 
Note: Due to screening procedures at the Department of State, at this time only UPS and FEDEX are able to deliver directly to the courier service address 20037 zip code. While other service providers may be used, please allow an additional two weeks for actual delivery to the Office of Defense Trade Controls Compliance, Compliance and Registration Division.
 
Regular Mail Delivery (US Postal Service)

U.S. Department of State
Directorate of Defense Trade Controls
Compliance and Registration Division
2401 E Street NW, SA-1, Room H1200
Washington, DC 20522
 
Or by fax to: (202) 261-8695
 
THE LETTER SHOULD STATE:
 
Dear (Insert name of current Director of the Office of Defense Trade Controls Compliance):
 
Subject: (Insert company name) Requests to Extend Broker Registration to Align with
Manufacturer/Exporter Registration Expiration for Future Registration Consolidation
 
Manufacturer/Exporter Registration Code: M____

Expiration Date: ______ (MM/DD/YYYY)
Broker Registration Code: K- Expiration Date: ____

(MM/DD/YYYY)
 
(Insert company name) intends to consolidate our manufacturer and/or exporter registration with our broker registration. However, our broker registration expires prior to the expiration of our manufacturer and/or exporter registration. Therefore, we request the Directorate of Defense Trade Controls to extend our broker registration to align with the expiration of our manufacturer/exporter registration, so that we may consolidate our registrations upon renewal, and will not be subject to a separate fee for renewing our broker registration.
 
We will submit our broker activity report with our consolidated registration renewal package. The broker activity report will cover all broker activity not previously reported up to three months prior to our manufacturer and/or exporter registration expiration date.
We certify that no change in our eligibility from what is represented in our previously submitted DS–2032 Statement of Registration has occurred for our broker registration (otherwise specify change in eligibility status).
 
Under penalty according to Federal Law (22 C.F.R. 127.2, 22 U.S.C. 2778, 18 USC 1001), I (insert name of person signing letter), as a senior officer, authorized by (name of registered entity), warrant the truth of the statements herein.
 
If DDTC has any questions pertaining to this request, please contact (insert contract person name) at (insert phone number). Additionally, please email a copy of the registration extension complete letter to (insert email address).


Respectfully,
 
(Signature, in ink, of Senior Officer as their name appears in block 7 of the DS2032 form)
(Print Full Name)
(Insert Official Title)