This article briefly discusses the types of activities that
trigger the brokering registration requirement under the
International Traffic in Arms Regulations for freight
forwarders.
In August 2013, the Directorate of Defense Trade Controls
("DDTC") published an interim final rule that clarified
some aspects of the requirement for broker registration under the
International Traffic in Arms Regulations
("ITAR").1 The rule provides that a broker is
any person that engages in the business of "brokering
activities" and is 1) a U.S. person, 2) a foreign person in
the U.S., or 3) a foreign person outside of the U.S. under the
control of a U.S. person, e.g., a foreign subsidiary controlled by
a U.S. parent corporation.2 "Brokering
activities" means "any action on behalf of another to
facilitate the manufacture, export, permanent import, transfer,
reexport, or retransfer of a U.S. or foreign defense article or
defense service, regardless of its origin."3
Examples of
