The U.S. Department of State’s Directorate of Defense Trade Controls (“DDTC”) recently announced on its website immediate measures intended to mitigate the impact of the SARS-COV2 pandemic on U.S. businesses and supply chains. These measures include the following temporary changes to the registration and licensing requirements:
- Temporary suspension of the requirements set forth in the International Traffic in Arms Regulations (ITAR) Parts 122 and 129 to renew registration as a manufacturer, exporter and/or broker and pay an annual fee by extending current ITAR registrations expiring on February 29, March 31, April 30, May 31, and June 30, 2020 by two (2) months from the original expiration date. DDTC is also contemplating a one-time temporary reduction in registration fees for certain categories of DDTC registrants, but no decision has been made to date. More information on any change will be communicated through DDTC’s website.
- An additional thirty (30) days for responses to its request-for-information letters related to voluntary and directed disclosures. The notice further indicates that DDTC Compliance is considering extensions of time for the submission of full voluntary disclosures on a case-by-case basis. Interested parties should submit such requests via email on company letterhead in PDF format to DTCC-CaseStatus@state.gov.
- A six-month extension from the original date of expiration for any license that expires between March 13, 2020 and May 31, 2020 by temporarily suspending ITAR Parts 120-130.
- To encourage remote work by temporarily suspending the ITAR § 120.39(a)(2) requirement that a regular employee must work at the company’s facilities until July 31, 2020. Note, the temporary suspension, modification and exception to ITAR § 120.39(a)(2) does not apply if the individual is located in Russia or any other country listed in ITAR § 126.1.
While the web notice was posted on April 23, 2020, all of the measures are retroactive to March 13, 2020, when the President declared a national emergency.
We encourage clients and companies to review DDTC’s web notice regarding its SARS-COV2 measures in its entirety and to contact Cortney Morgan or Grant Leach of Husch Blackwell’s Export Controls & Economic Sanctions team with any questions or concerns.