World ECR | State Council finalizes ITAR registration fees
Home > information > The U.S. Department of State finalizes ITAR registration fee increases in 2025 The U.S. Department of State has finalized an increase in International Traffic in Arms Regulations (“ITAR”) registration fees, with the higher rates effective January 2025, pursuant to a final rule issued on December 10. The Directorate of Defense Trade Controls ("DDTC") stated: "This increase is necessary because DDTC's operations are primarily funded by fees. Without sufficient growth to meet operating costs that have increased significantly since 2008, DDTC will face difficulty sustaining budget deficit and was forced to reduce its services. The new three-tier structure increases the base fee for Tier 1 enrollees to $3,000 per year, an increase of 33.1%. Level 2 registrants will pay $4,000, while Level 3 registration fees will be calculated as "$4,000 plus $1,100 multiplied by the total number of more than five favorable decisions." The department said it recognizes and understands the concerns raised by stakeholders commenting on…
ITAR Certification – Is it Real?
Christine Kelleher Is ITAR certification real? What exactly does it mean to be ITAR certified? Does the US government offer courses that have a test at the end and if you pass you will receive a certificate? Is it the same as a licensed customs broker? The answer to both questions is "no." Technically, there is no such thing as an ITAR certification—at least not as far as the U.S. government is concerned. However, all U.S. regulations, including export laws, must be followed, including compliance with the International Traffic in Arms Regulations (ITAR). Learn about ITAR compliance and certification So why do some companies claim to be ITAR certified? There is even a picture on their website claiming to be ITAR certified? I'm not sure I can answer these questions, but the questions that should be asked are: Are you registered with the Directorate of Defense Trade Controls (DDTC)? Do you have an Export Management and Compliance Plan (EMCP) or…
ITAR Certification – Is it Real?
Christine Kelleher Is ITAR certification real? What does it mean to be ITAR certified? Does the US government offer courses that have a test at the end and if you pass you will receive a certificate? Is it the same as a licensed customs broker? The answer to both questions is "no." Technically, there is no such thing as an “ITAR certification”—at least not as far as the U.S. government is concerned. However, all U.S. regulations, including export laws, must be followed, including compliance with the International Traffic in Arms Regulations (ITAR). Learn about ITAR compliance and certification So why do some companies claim to be ITAR certified? There is even a picture on their website claiming to be ITAR certified? I'm not sure I can answer these questions, but the questions that should be asked are: Are you registered with the Directorate of Defense Trade Controls (DDTC)? Do you have an Export Management and Compliance Plan (EMCP) or an…
Permanent vs. Temporary Importation: ITAR vs.
As people become familiar with the International Traffic in Arms Regulations (ITAR), they are often surprised to learn that the regulations not only control exports, but also have certain provisions for temporary imports. In one of the more concise sections of the regulation (ITAR 120.53), temporary importation is defined as follows: “…bringing into the United States from a foreign country the following defense articles: return it to the country from which it was sent or from which it was taken; or Any defence article that is in transit to another foreign destination.” The definition includes “the withdrawal of defense articles from a customs bonded warehouse or foreign trade zone for shipment back to the country of origin or shipment, or to another foreign destination.” A common situation that is classified as a temporary import is bringing something into the U.S. for service or a one-to-one replacement. Other examples include equipment used for display at a trade show or for private…
ITAR Registration Fees | Registration Overview
In April 2024, the Department of State released a proposal to increase DDTC registration and renewal fees. This is the first fee increase proposed in 16 years, and while a final decision may be several months away, it is reasonable to assume that some form of increase will be approved. For some entities, such increased costs will be negligible, but for others, the costs will be significant. Any business or person in the United States that manufactures, exports, or temporarily imports defense articles or services subject to the International Traffic in Arms Regulations must register annually with the Directorate of Defense Trade Controls (DDTC). According to the U.S. State Department, DDTC receives approximately 38,000 export license applications each year from approximately 14,000 registered entities. Below are the current and proposed fees. Applies to: Current Fees Recommended Fees Increase Tier 1 New registrants; and renewals for entities that did not receive any licenses in the previous year (see details) USD 2,250…
Boeing slapped with multimillion-dollar ITAR fine
By Kristine Kelleher Boeing recently agreed to pay a $51 million civil penalty for violating U.S. export regulations, specifically the International Traffic in Arms Regulations (ITAR) and the Arms Export Control Act (AECA), adding to a seemingly never-ending list of problems. The company also agreed to take remedial steps and reached a consent agreement with the U.S. State Department. This is one of the largest fines ever imposed by the U.S. government for violations of ITAR and AECA. Boeing is a multi-billion dollar company with hundreds of full-time trade compliance staff. So, what happened? What can we learn? This case is important and can serve as a warning to the entire industry. Despite Boeing’s vast resources and history, it was still accused of nearly 200 export violations. What did Boeing do? According to the U.S. State Department’s Directorate of Defense Trade Controls (DDTC), Boeing is suspected of committing multiple violations, including: Unauthorized export and transfer of controlled technical data to…
ITAR Registration Fee Increase Update
By Kristine Kelleher After maintaining the same fee structure for International Traffic in Arms Regulations (ITAR) registrations for more than 15 years, the U.S. Department of State is proposing legislative changes to increase the fees required for Directorate of Defense Trade Controls (DDTC) registrations. As a reminder, export regulations require registration for persons engaged in the manufacture, export, temporary importation, or brokering of any defense article or service. Registration fees were previously updated in 2008, and previous changes occurred in 2004, 1997, and 1985. The proposed rule is currently seeking final interagency review, and DDTC released it for public comment last month. Some may wonder why the costs have increased, especially those new to international trade and compliance with the International Traffic in Arms Regulations. Overall, from the government's perspective, the cost increases are justified based on the growing costs of DDTC operations and the enhancements to support the services provided. A tiered approach has been taken to fees, with…
ITAR Fee Reform: Understanding New Registration Fees
The U.S. Department of State has proposed amendments to the International Traffic in Arms Regulations (ITAR) to increase the fees required to register with the Directorate of Defense Trade Controls (DDTC). ITAR requires persons engaged in the manufacture, export, temporary import, or brokering of any defense article or service to register with DDTC. This proposed rule marks the first change to the registration fee structure in fifteen years. The revisions are intended to better align fees with DDTC’s current operating costs and support improvements to the services provided. The revisions to Tier 1 and Tier 2 fees are adjusted for inflation, but the revision to Tier 3 fees includes an increase in excess of the adjusted inflation amount. DDTC believes this increase is justified because Tier 3 registrants receive greater benefits, have benefited the most from recent DDTC improvements (including the Defense Export Control and Compliance System (DECCS)), and generate significant export-derived revenue. For example, in FY 2022, the value…
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