[Federal Register: October 27, 2003 (Volume 68, Number 207)]
[Rules and Regulations]               
[Page 61098-61103]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr27oc03-6]                         

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DEPARTMENT OF STATE

22 CFR Parts 120, 123, 124 and 125

[Public Notice 4520]
RIN 1400-AB72

 
Amendment to the International Traffic In Arms Regulations: 
Mandatory Electronic Filing of Shipper's Export Declarations With U.S. 
Customs Using the Automated Export System (AES)

AGENCY: Department of State.

ACTION: Final rule.

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SUMMARY: This amendment to the International Traffic in Arms 
Regulations (ITAR) implements the Congressional requirement of the Arms 
Export Control Act (AECA) for exporters of U.S. Munitions List (USML) 
articles to provide to the Department of State a report containing all 
shipment information, to include a description of the item, quantity, 
value, port of exit, end user and country of destination of the item; 
and, the Congressional mandate in Public Law l06-113 that amended 
Section 30l, of Title 13 of the U.S. Code authorizing the Secretary of 
Commerce to require the mandatory electronic filing of export 
information through the Automated Export System (AES) for items 
identified in the Commerce Control List (CCL) and the Department of 
State's U.S. Munitions List (USML) that require a Shipper's Export 
Declaration (SED). In implementing these mandates it was determined 
that for shipments requiring a SED the use of the AES system by the 
Department of State would be the least burdensome to the exporting 
community. Also, adoption of the AES system by the State Department 
will be economically beneficial to the USG and provide information on 
exports of defense articles using a U.S. Port in a more timely, 
consistent and accurate manner. It will also serve to improve the 
quality, timeliness and consistency of Congressionally mandated 
reports.

EFFECTIVE DATE: October 27, 2003.
    Public Comment: Interested parties are invited to submit written 
comments to the Department of State, Office of Defense Trade Controls 
Compliance, ATTN: Regulatory Change, ITAR Mandatory Electronic Filing 
of Export Information, 12th Floor, SA-1, Washington, DC 20522-0112.

FOR FURTHER INFORMATION CONTACT: David C. Trimble, Director, Office of 
Defense Trade Controls Compliance, Bureau of Political-Military 
Affairs, Department of State, Telephone (202) 663-2700 or FAX (202) 
261-8199. ATTN: Regulatory Change, ITAR

[[Page 61099]]

Mandatory Electronic Filing of Export Information.

SUPPLEMENTARY INFORMATION: The Automated Export Systems (AES) is the 
electronic equivalent of filing with the U.S. Bureau of Customs and 
Border Protection a paper Form No. 7525V, Shipper's Export Declaration 
(SED). This electronic filing of export information is mandatory for 
export of USML articles, unless a written exception is granted by the 
Department of State. Implementation of the electronic filing of the 
export information using the AES system for shipments of USML articles 
is mandatory on October 18, 2003. To ensure a seamless transition from 
paper to electronic reporting, the exporter, or an agent acting on the 
exporter's behalf, shall, until December 18, 2003, also file with the 
Bureau of Customs and Border Protection a paper copy of the AES 
document.
    However, there are circumstances (e.g., oral, visual, or electronic 
transmissions of technical data and defense services) when exports 
subject to the controls of the ITAR are made and the transfer is not 
monitored by the Bureau of Customs and Border Protection. The 
Department has determined that all technical data and defense services 
export information shall be provided directly to Directorate of Defense 
Trade Controls (DDTC), regardless of the type of ITAR authorization 
(e.g., license, agreement, or exemption). A copy of the notification to 
DDTC shall be provided by the exporter, or an agent acting on the 
exporter's behalf, to the Bureau of Customs and Border Protection upon 
request for those shipments that are exported using a U.S. Port (e.g., 
hand carried exports of technical data). DDTC is finalizing the system 
for direct electronic reporting of export data to DDTC. Such electronic 
reporting will be mandatory on January 18, 2004 for reporting exports 
against DSP-5 technical data licenses, Manufacturing License 
Agreements, and Technical Assistance Agreements. While AES becomes 
mandatory on October 18, 2003, the electronic reporting for licenses 
and agreements to DDTC is being delayed in order to ensure that AES is 
fully operational prior to implementation of the DDTC direct reporting 
requirement. Mandatory reporting on all exemptions is being further 
delayed, and will be implemented in a future Federal Register Notice 
amending Section 122.23. DDTC anticipates reporting will include the 
applicant's registration code, the USML category of the technical data 
or defense service, license and/or exemption number, and country of 
ultimate and, if applicable, intermediate destination. In the interim 
period, reporting of the export of technical data under a Form DSP-5 
and defense services under an MLA/TAA will be as follows:
    1. For reporting exports of technical data that are licensed on a 
Form DSP-5, the applicant must self validate the initial export on the 
original of the DSP-5 and return the license to DDTC. Exports of 
additional copies of the licensed technical data (i.e., the transaction 
must be identical, to include the same technical data to the identical 
end use and end users) would be the subject of the exemption in Section 
125.4.
    2. The initial export of technical data and defense services using 
an agreement or a license shall be reported by letter to DDTC with the 
ATTN Line reading ``Initial Export Notification for Agreement (or 
License) [insert agreement/license number].''
    Should an instance arise when the technical data authorized by a 
license or agreement is to be exported using a U.S. Port, the exporter 
shall file the export information in accordance with Section 
123.22(b)(3)(iii) of this subchapter.
    Although DDTC is delaying mandating reporting of all exports using 
an exemption, effective January 18, 2004 all paper filing of export 
information for USML shipments shall cease. Also, effective on the date 
of this publication, use of the Department of State's Direct Shipment 
Validation Program and the Department of Commerce, Bureau of the Census 
Option 4 SED filing alternative will be discontinued for all shipments 
of USML articles.
    The Proliferation Prevention Enhancement Act of 1999, Public Law 
106-113, Appendix G, and Section 38(i) of the Arms Export Control Act 
(AECA) mandate reporting from U.S. exporters of export shipment data. 
In particular, the law requires the Department of State to collect 
electronically all Shipper's Export Declaration (SED) data on exports 
of USML articles. The Department of Homeland Security, Bureau of 
Customs and Border Protection and the Department of Commerce, Bureau of 
Census have implemented a process for the electronic filing of the Form 
7525V, Shipper's Export Declaration (SED), using a system known as the 
Automated Export System (AES). The AES shall serve as the Department of 
State's primary collection of data on exports of defense articles. To 
provide the required information, the AES has been enhanced to add 
additional information requirements, to include (a) DDTC registration 
number of the authorized exporter; (b) identification of Significant 
Military Equipment (SME) as defined in section 120.7 of the ITAR; (c) a 
certification that all parties in the transaction are eligible in 
accordance with the ITAR (i.e., section 120.1, paragraphs (c) and (d); 
(d) identification of the USML Category (section 121.1 of the ITAR) of 
the item being shipped; (e) additional fields to report the DDTC 
quantity and unit of measure as described on the license or exemption; 
and (f) a field for identification of the ITAR exemption authorizing 
the export. Further changes to the AES are being considered, such as 
identification of the article being exported against the line item of 
the article authorized on the export license.
    Also, the AES requires the use of external and internal transaction 
numbers to track the transaction. The External Transaction Number (XTN) 
is generated at the time of the AES filing by the DDTC registered 
applicant/exporter, or an agent acting on the filer's behalf. The 
Internal Transaction Number (ITN) is generated by the AES and returned 
to the filer electronically once the submitted information has been 
verified for accuracy and completeness and accepted by the AES. When an 
AES submission is rejected by the Bureau of Customs and Border 
Protection (e.g., Customs is unable to validate the XTN in its system 
or the exporter does not receive an ITN), it will be considered as not 
having met the regulatory requirements of the ITAR and export may not 
be made. Future changes to the regulations may be required to expand 
the use of the ITN in the AES in order to make obvious that the SED was 
correctly filed through the AES, to include a requirement for the ITN 
on the bill of lading, air waybill, or other loading documents. Any 
additional AES requirements affecting export of USML articles will be 
the subject of a Department of State Federal Register Notice.
    A new definition has been added to Part 120 of the ITAR. A new 
Sec.  120.30 now defines the AES as the electronic filing of the export 
information. Part 120 is also amended in Sec.  120.28, paragraph (b) to 
reflect the new name of the Department of Commerce component formerly 
known as the Bureau of Export Administration. The Bureau is now known 
as the Bureau of Industry and Security (BIS). Also, while not the 
subject of an amendment in this publication, exporters are advised that 
any reference in the ITAR that currently reads ``U.S. Customs'', refers 
to the activities of the Bureau of Customs and

[[Page 61100]]

Border Protection and the Bureau of Immigration and Customs 
Enforcement, both of which are now part of the Department of Homeland 
Security.
    In addition, Part 123 is amended in Sec.  123.4 to clarify the 
procedure for electronic filing of export information and the 
accompanying documentation. Also, in Part 123, the title of Sec.  
123.22 is amended to better reflect the requirements and now reads, 
``Filing, retention, and return of export licenses and filing of export 
information.'' Section 123.22 also has been reformatted to address the 
specific requirements of the new procedures, to include in paragraph 
(a) filing and retention of licenses authorized by the DDTC; paragraph 
(b) filing and reporting of export information; and, paragraph (c) 
return of licenses.
    From time-to-time, exports are required of licensed hardware when 
the applicant is unable to provide the export information in the 
mandated timelines. Section 123.22, paragraph (b)(2) provides that the 
Bureau of Customs and Border Protection may permit the license holder, 
or an agent acting on the filer's behalf, to electronically file urgent 
shipments in a shorter time period, provided certain conditions are 
met.
    While all exports of hardware, regardless of the type of approval 
(e.g., license, agreement, or exemption) controlled by the ITAR will 
require filing of the export information using AES, exports of 
technical data and defense services made using a license, agreement or 
exemption shall be electronically reported directly to DDTC. Section 
123.22 has been amended accordingly. Reporting to DDTC of the export 
data electronically for licensed technical data (DSP-5) and defense 
services (MLA and TAA) will be mandatory January 18, 2004 to require 
initial reporting and reporting in any instance where the exporter is 
using a U.S. port. This delay, and the further delay related to 
reporting exports using exemptions, should permit sufficient time for 
implementation of the AES. Guidelines for use of the DDTC export data 
system will be published on the DDTC Web site (http://www.pmdtc.org).
    Section 123.24 is also amended to require, for shipments of U.S. 
Munitions List hardware by the U.S. Postal Service, the electronic 
filing of export information using the AES and the filing of the 
license with the Bureau of Customs and Border Protection at a U.S. 
Port. Shipments of technical data in furtherance of a license or 
agreement by mail shall be reported directly to DDTC.
    Section 124.3(a) has been amended to eliminate the requirement that 
the U.S. party to a manufacturing license or technical agreement 
certify on an SED that the export of unclassified technical data being 
exported does not exceed the scope of the agreement and any limitations 
imposed pursuant to this part. This requirement is no longer needed 
because unclassified technical data exports will no longer be reported 
using an SED.
    Section 125.6 is amended to change the requirement that an 
exporter, claiming an exemption for the export of technical data under 
the provisions of sections 125.4 and 125.5, certify on the SED that the 
proposed export is covered by one of those sections. Section 125.6 will 
now require that this certification be made by marking the package or 
letter containing the technical data. The exporter must retain this 
certification for a period of 5 years. For exports of technical data 
that are oral, visual or electronic, the certification must still be 
completed and retained for 5 years.
    Finally, section 125.8 is being removed and reserved for future 
use.
    Regulatory Analysis and Notices: This amendment involves a foreign 
affairs function of the United States and, therefore, is not subject to 
the procedures required by 5 U.S.C. 553 and 554. It is exempt from 
review under Executive Order 12866 but has been reviewed internally by 
the Department to ensure consistency with the purposes thereof. This 
rule does not require analysis under the Regulatory Flexibility Act or 
the Unfunded Mandates Reform Act. It is not a major rule within the 
meaning of the Small Business Regulatory Enforcement Act of 1966. It 
will not have substantial direct effect on the States, the relationship 
between the National Government and the States, or on the distribution 
of power and responsibilities among the various levels of government. 
Therefore, it is determined that this rule does not have sufficient 
federalism implications to warrant application of the consultation 
provisions of Executive Orders 12372 and 13123. The reporting or 
record-keeping actions required from the public under the rule require 
the approval of the Office of Management and Budget (OMB) under the 
Paperwork Reduction Act. OMB has approved all such actions required 
under this rule, which are done under four information collections; the 
Department of State is responsible for three (OMB control numbers 1405-
0003, 1405-0093, and 1405-0148), and the Department of Commerce is 
responsible for one (OMB control number 0607-0152).

List of Subjects

22 CFR 120

    Arms and munitions, Classified information, Exports.

22 CFR 123

    Arms and munitions, Exports.

22 CFR 124

    Arms and munitions, Exports, Technical assistance.

22 CFR 125

    Arms and Munitions, Exports.


0
Accordingly, for the reasons set forth above, Title 22, Chapter I, 
Subchapter M, Parts 120, 123, 124 and 125 are amended as follows:

PART 120--PURPOSE AND DEFINITIONS

0
1. The authority citation for part 120 continues to read as follows:

    Authority: Secs. 2, 38, and 71, Pub. L. 90-629, 90 Stat. 744 (22 
U.S.C. 2752, 2778, and 2797); 22 U.S.C. 2794; E.O. 11958, 42 FR 
4311; 3 CFR, 1977 Comp. p. 79; 22 U.S.C. 2658; Pub. L. 105-261, 112 
Stat. 1920.

0
2. Sec.  120.28 is amended by revising paragraphs (b) introductory text 
and (b)(1) to read as follows:


Sec.  120.28  Listing of forms referred to in this subchapter.

* * * * *
    (b) Department of Commerce, Bureau of Industry and Security:
    (1) International Import Certificate (Form BIS-645P/ATF-4522/DSP-
53).
* * * * *

0
3. Sec.  120 is amended by adding Sec.  120.30 to read as follows:


Sec.  120.30.  The Automated Export System (AES).

    The Automated Export System (AES) is the Department of Commerce, 
Bureau of Census, electronic filing of export information. The AES 
shall serve as the primary system for collection of export data for the 
Department of State. In accordance with this subchapter U.S. exporters 
are required to report export information using AES for all hardware 
exports. Exports of technical data and defense services shall be 
reported directly to the Directorate of Defense Trade Controls (DDTC). 
Also, requests for special reporting may be made by DDTC on a case-by-
case basis, (e.g., compliance, enforcement, congressional mandates).

PART 123--LICENSES FOR THE EXPORT OF DEFENSE ARTICLES

0
4. The authority citation for part 123 continues to reads as follows:


[[Page 61101]]


    Authority: Secs. 2, 38, and 71, Pub. L. 90-629, 90 Stat. 744 (22 
U.S.C. 2752, 2778, and 2797); 22 U.S.C. 2753; E.O. 11958, 42 FR 
4311; 3 CFR, 1977 Comp. p.79; 22 U.S.C. 2658; Pub. L. 105-261, 112 
Stat. 1920.


0
5. Sec.  123.4 is amended by revising paragraph (d)(2) to read as 
follows:


Sec.  123.4  Temporary import license exemptions.

* * * * *
    (d) * * *
    (1) * * *
    (2) At the time of export, in accordance with the Bureau of Customs 
and Border Protection procedures, the Directorate of Defense Trade 
Controls (DDTC) registered and eligible exporter, or an agent acting on 
the filer's behalf, must electronically file the export information 
using the Automated Export System (AES), and identify 22 CFR 123.4 as 
the authority for the export and provide, as requested by the Bureau of 
Customs and Border Protection, the entry document number or a copy of 
the Bureau of Customs and Border Protection document under which the 
article was imported.

0
6. Sec.  123.5(c) is revised to read as follows:


Sec.  123.5  Temporary export licenses.

* * * * *
    (c) Any temporary export license for hardware that is used, 
regardless of whether the hardware was exported directly to the foreign 
destination or returned directly from the foreign destination, must be 
endorsed by the Bureau of Customs and Border Protection in accordance 
with the procedures in Sec.  123.22 of this subchapter.

0
7. Sec.  123.22 is revised to read as follows:


Sec.  123.22  Filing, retention, and return of export licenses and 
filing of export information.

    (a) Any export, as defined in this subchapter, of a defense article 
controlled by this subchapter, to include defense articles transiting 
the United States, requires the electronic reporting of export 
information. The reporting of the export information shall be to the 
Bureau of Customs and Border Protection using the Automated Export 
System (AES) or directly to the Directorate of Defense Trade Controls 
(DDTC). Any license or other approval authorizing the permanent export 
of hardware must be filed at a U.S. Port before any export. Licenses or 
other approvals for the permanent export of technical data and defense 
services shall be retained by the applicant who will send the export 
information directly to DDTC. Temporary export or temporary import 
licenses for such items need not be filed with the Bureau of Customs 
and Border Protection, but must be presented to the Bureau of Customs 
and Border Protection for decrementing of the shipment prior to 
departure and at the time of entry. The Bureau of Customs and Border 
Protection will only decrement a shipment after the export information 
has been filed correctly using the AES. Before the export of any 
hardware using an exemption in this subchapter, the DDTC registered 
applicant/exporter, or an agent acting on the filer's behalf, must 
electronically provide export information using the AES (see paragraph 
(b) of this section). In addition to electronically providing the 
export information to the Bureau of Customs and Border Protection 
before export, all the mandatory documentation must be presented to the 
port authorities (e.g., attachments, certifications, proof of AES 
filing; such as the External Transaction Number (XTN) or Internal 
Transaction Number (ITN)). Export authorizations shall be filed, 
retained, decremented or returned to DDTC as follows:
    (1) Filing of licenses and documentation for the permanent export 
of hardware. For any permanent export of hardware using a license 
(e.g., DSP-5, DSP-94) or an exemption in this subchapter, the exporter 
must, prior to an AES filing, deposit the license and provide any 
required documentation for the license or the exemption with the Bureau 
of Customs and Border Protection, unless otherwise directed in this 
subchapter (e.g., Sec.  125.9). If necessary, an export may be made 
through a port other than the one designated on the license if the 
exporter complies with the procedures established by the Bureau of 
Customs and Border Protection.
    (2) Presentation and retention by the applicant of temporary 
licenses and related documentation for the export of unclassified 
defense articles. Licenses for the temporary export or temporary import 
of unclassified defense articles need not be filed with the Bureau of 
Customs and Border Protection, but must be retained by the applicant 
and presented to the Bureau of Customs and Border Protection at the 
time of temporary import and temporary export. When a defense article 
is temporarily exported from the United States and moved from one 
destination authorized on a license to another destination authorized 
on the same or another temporary license, the applicant, or an agent 
acting on the applicant's behalf, must ensure that the Bureau of 
Customs and Border Protection decrements both temporary licenses to 
show the exit and entry of the hardware.
    (b) Filing and reporting of export information. (1) Filing of 
export information with the Bureau of Customs and Border Protection. 
Before exporting any hardware controlled by this subchapter, using a 
license or exemption, the DDTC registered applicant/exporter, or an 
agent acting on the filer's behalf, must electronically file the export 
information with the Bureau of Customs and Border Protection using the 
Automated Export System (AES) in accordance with the following 
timelines:
    (i) Air or truck shipments. The export information must be 
electronically filed at least 8 hours prior to departure.
    (ii) Sea or rail Shipments. The export information must be 
electronically filed at least 24 hours prior to departure.
    (2) Emergency shipments of hardware that cannot meet the pre-
departure filing requirements. Bureau of Customs and Boarder Protection 
may permit an emergency export of hardware by truck (e.g., departures 
to Mexico or Canada) or air, by a U.S. registered person, when the 
exporter is unable to comply with the SED filing timeline in paragraph 
(b)(1)(i) of this section. The applicant, or an agent acting on the 
applicant's behalf, in addition to providing the export information 
electronically using the AES, must provide documentation required by 
the Bureau of Customs and Border Protection and this subchapter. The 
documentation provided to the Bureau of Customs and Border Protection 
at the port of exit must include the External Transaction Number (XTN) 
or Internal Transaction Number (ITN) for the shipment and a copy of a 
notification to DDTC stating that the shipment is urgent and why. The 
original of the notification must be immediately provided to DDTC. The 
AES filing of the export information when the export is by air must be 
at least two hours prior to any departure from the United States; and, 
when a truck shipment, at the time when the exporter provides the 
articles to the carrier or at least one hour prior to departure from 
the United States, when the permanent export of the hardware has been 
authorized for export:
    (i) In accordance with Sec.  126.4 of this subchapter, or
    (ii) On a valid license (i.e., DSP-5, DSP-94) and the ultimate 
recipient and ultimate end user identified on the license is a foreign 
government.
    (3) Reporting of export information on technical data and defense 
service. When an export is being made using a DDTC authorization (e.g., 
technical data license, agreement or a technical data

[[Page 61102]]

exemption provided in this subchapter), the DDTC registered exporter 
will retain the license or other approval and provide the export 
information electronically to DDTC as follows:
    (i) Technical data license. Prior to the permanent export of 
technical data licensed using a Form DSP-5, the applicant shall 
electronically provide export information using the system for direct 
electronic reporting to DDTC of export information and self validate 
the original of the license. When the initial export of all the 
technical data authorized on the license has been made, the license 
must be returned to DDTC. Exports of copies of the licensed technical 
data should be made in accordance with existing exemptions in this 
subchapter. Should an exemption not apply, the applicant may request a 
new license.
    (ii) Manufacturing License and Technical Assistance Agreements. 
Prior to the initial export of any technical data and defense services 
authorized in an agreement the U.S. agreement holder must 
electronically inform DDTC that exports have begun. In accordance with 
this subchapter, all subsequent exports of technical data and services 
are not required to be filed electronically with DDTC except when the 
export is done using a U.S. Port. Records of all subsequent exports of 
technical data shall be maintained by the exporter in accordance with 
this subchapter and shall be made immediately available to DDTC upon 
request. Exports of technical data in furtherance of an agreement using 
a U.S. Port shall be made in accordance with Sec.  125.4 of this 
subchapter and made in accordance with the procedures in paragraph 
(b)(3)(iii) of this section.
    (iii) Technical Data and Defense Service Exemptions. In any 
instance when technical data is exported using an exemption in this 
subchapter (e.g., Sec. Sec.  125.4(b)(2), 125.4(b)(4), 126.5) from a 
U.S. port, the exporter is not required to report using AES, but must, 
effective January 18, 2004, provide the export data electronically to 
DDTC. A copy of the electronic notification to DDTC must accompany the 
technical data shipment and be made available to the Bureau of Customs 
and Border Protection upon request.


    Note to paragraph (b)(3)(iii): Future changes to the electronic 
reporting procedure will be amended by publication of a rule in the 
Federal Register. Exporters are reminded to continue maintaining 
records of all export transactions, including exemption shipments, 
in accordance with this subchapter.

    (c) Return of Licenses. All licenses issued by the Directorate of 
Defense Trade Controls (DDTC) must be returned to the DDTC in 
accordance with the following: (1) License filed with the Bureau of 
Customs and Border Protection). The Bureau of Customs and Border 
Protection must return to the DDTC any license when the total value or 
quantity authorized has been shipped or when the date of expiration is 
reached, whichever occurs first.
    (2) Licenses not filed with the Bureau of Customs and Border 
Protection. Any license that is not filed with the Bureau of Customs 
and Border Protection (e.g., oral or visual technical data releases or 
temporary import and export licenses retained in accordance with 
paragraph (a)(2) of this section), must be returned by the applicant to 
the DDTC no later than 60 days after the license has been expended 
(e.g., total value or quantity authorized has been shipped) or the date 
of expiration, whichever occurs first.

0
8. Sec.  123.24 is revised to read as follows:


Sec.  123.24  Shipments by U.S. Postal Service.

    (a) The export of any defense hardware using a license or exemption 
in this subchapter by the U.S. Postal Service must be filed with the 
Bureau of Customs and Border Protection using the Automated Export 
System (AES) and the license must be filed with the Bureau of Customs 
and Border Protection before any hardware is actually sent abroad by 
mail. The exporter must certify the defense hardware being exported in 
accordance with this subchapter by clearly marking on the package 
``This export is subject to the controls of the ITAR, 22 CFR (identify 
section for an exemption) or (state license number) and the export has 
been electronically filed with the Bureau of Customs and Border 
Protection using the Automated Export System (AES).''
    (b) The export of any technical data using a license in this 
subchapter by the U.S. Postal Service must be notified electronically 
directly to the Directorate of Defense Trade Controls (DDTC). The 
exporter, using either a license or exemption, must certify, by clearly 
marking on the package, ``This export is subject to the controls of the 
ITAR, 22 CFR (identify section for an exemption) or (state license 
number).'' For those exports using a license, the exporter must also 
state ``The export has been electronically notified directly to DDTC.'' 
The license must be returned to DDTC upon completion of the use of the 
license (see Sec.  123.22(c)).

PART 124--AGREEMENTS, OFF-SHORE PROCUREMENT AND OTHER DEFENSE 
SERVICES

0
9. The authority citation for part 124 continues to read as follows:

    Authority: Sec. 2, 38, and 71, Pub. L. 90-629, 90 Stat. 744 (22 
U.S.C. 2752, 2778, 2797); E.O. 11958, 42 FR 4311, 3 CFR 1977 Comp. 
p. 79; 22 U.S.C. 2658; Pub. L. 105-261.
0
10. Sec.  124.3 is amended by revising paragraph (a) to read as 
follows:


Sec.  124.3  Exports of technical data in furtherance of an agreement.

    (a) Unclassified technical data. The Bureau of Customs and Border 
Protection or U.S. Postal authorities shall permit the export without a 
license of unclassified technical data if the export is in furtherance 
of a manufacturing license or technical assistance agreement which has 
been approved in writing by the Directorate of Defense Trade Controls 
(DDTC) and the technical data does not exceed the scope or limitations 
of the relevant agreement. The approval of the DDTC must be obtained 
for the export of any unclassified technical data that may exceed the 
terms of the agreement.
* * * * *

PART 125--LICENSES FOR THE EXPORT OF TECHNICAL DATA AND CLASSIFIED 
DEFENSE ARTICLES

0
11. The authority citation for part 125 continues to read as follows:

    Authority: Sections 2 and 38, Pub. L. 90-629, 90 Stat. 744 (22 
U.S.C. 2752, 2778); E.O. 11958, 42 FR 4311, 3 CFR, 1977 Comp. p. 79; 
22 U.S.C. 2668.


0
12. Sec.  125.6 is revised to read as follows:


Sec.  125.6  Certification requirements for exemptions.

    (a) To claim an exemption for the export of technical data under 
the provisions of this subchapter (e.g., Sec. Sec.  125.4 and 125.5), 
the exporter must certify that the proposed export is covered by a 
relevant section of this subchapter, to include the paragraph and 
applicable subparagraph. Certifications consist of clearly marking the 
package or letter containing the technical data ``22 CFR [insert ITAR 
exemption] applicable.'' This certification must be made in written 
form and retained in the exporter's files for a period of 5 years (see 
Sec.  123.22 of this subchapter).
    (b) For exports that are oral, visual, or electronic the exporter 
must also complete a written certification as indicated in paragraph 
(a) of this section and retain it for a period of 5 years.

[[Page 61103]]

Sec.  125.8  [Removed and Reserved]

0
13. Sec.  125.8 is removed and reserved.

    Dated: October 15, 2003.
John R. Bolton,
Under Secretary, Arms Control and International Security, Department of 
State.
[FR Doc. 03-27039 Filed 10-24-03; 8:45 am]

BILLING CODE 4710-25-P