BROKERING REGISTRATION AND LICENSING (22 CFR 129)

1. BROKERING REGISTRATION AND LICENSING(22 CFR 129) DTAG BROKERING WORKING GROUP May 3, 2005

2. WORKING GROUP • David Ashby • Ginger Carney • Giovanna Cinelli • Rich Gogolkiewicz • Mona Hazera • David Isenberg • Chuck Jameson (Chair) • Joel Johnson • Peter Jordan • Dennis Kennelly • John Liebman • Joe Mariani • Ed O’Connor • Terry Otis • Suzanne Palmer • Mike Richey • Ken Williamson

3. BACKGROUND • Intent of Part 129. • Limited legislative history and statutory guidance. • Multiple interpretations

4. APRIL 25TH MEETING WITH DDTC OFFICIALS • Purpose: • To gain an understanding of DDTC’s regulatory objectives as part of fact gathering. • To set an agenda to begin a constructive dialogue aimed at achieving those objectives while minimizing potential collateral damage to legitimate U.S. defense export initiatives.

5. TOPICS OF DISCUSSION: • Intent of ITAR Part 129 • Definition of “brokering activities” • Criteria for classifying an entity as a “broker” • Licensing brokering activities • DDTC’s process for adjudication and licensing

6. STATUS: • DTAG will provide to DDTC a list defining the spectrum of activities commonly performed by consultants, commissioned sales reps, etc. The list will range from routine business assistance activities to activities that are clearly brokering. • DDTC will examine whether entities registered as brokers and identified as such in export applications need to obtain separate authorizations from DDTC. • DTAG intends to continue working with DDTC on brokering issues, including process standardization and consistency of interpretation.