[Code of Federal Regulations]
[Title 22, Volume 1]
[Revised as of April 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 22CFR129.7]

[Page 498-499]
 
                       TITLE 22--FOREIGN RELATIONS
 
                     CHAPTER I--DEPARTMENT OF STATE
 
PART 129--REGISTRATION AND LICENSING OF BROKERS--Table of Contents
 
Sec. 129.7  Prior Approval (License).

    (a) The following brokering activities require the prior written 
approval of the Office of Defense Trade Controls:
    (1) Brokering activities pertaining to certain defense articles (or 
associated defense services) covered by or of a nature described by Part 
121, to or from any country, as follows:
    (i) Fully automatic firearms and components and parts therefor;
    (ii) Nuclear weapons strategic delivery systems and all components, 
parts, accessories, attachments specifically designed for such systems 
and associated equipment;
    (iii) Nuclear weapons design and test equipment of a nature 
described by Category XVI of Part 121;
    (iv) Naval nuclear propulsion equipment of a nature described by 
Category VI(e);
    (v) Missile Technology Control Regime Category I items 
(Sec. 121.16);

[[Page 499]]

    (vi) Classified defense articles, services and technical data;
    (vii) Foreign defense articles or defense services (other than those 
that are arranged wholly within and destined exclusively for the North 
Atlantic Treaty Organization, Japan, Australia, or New Zealand (see 
Secs. 129.6(b)(2) and 129.7(a)).
    (2) Brokering activities involving defense articles or defense 
services covered by, or of a nature described by, Part 121, in addition 
to those specified in Sec. 129.7(a), that are designated as significant 
military equipment under this subchapter, for or from any country not a 
member of the North Atlantic Treaty Organization, Australia, New 
Zealand, or Japan whenever any of the following factors are present:
    (i) The value of the significant military equipment is $1,000,000 or 
more;
    (ii) The identical significant military equipment has not been 
previously licensed for export to the armed forces of the country 
concerned under this subchapter or approved for sale under the Foreign 
Military Sales Program of the Department of Defense;
    (iii) Significant military equipment would be manufactured abroad as 
a result of the articles or services being brokered; or
    (iv) The recipient or end user is not a foreign government or 
international organization.
    (b) The requirements of this section for prior written approval are 
met by any of the following:
    (1) A license or other written approval issued under parts 123, 124, 
or 125 of this subchapter for the permanent or temporary export or 
temporary import of the particular defense article, defense service or 
technical data subject to prior approval under this section, provided 
the names of all brokers have been identified in an attachment 
accompanying submission of the initial application; or
    (2) A written statement from the Office of Defense Trade Controls 
approving the proposed activity or the making of a proposal or 
presentation.
    (c) Requests for approval of brokering activities shall be submitted 
in writing to the Office of Defense Trade Controls by an empowered 
official of the registered broker; the letter shall also meet the 
requirements of Sec. 126.13 of this subchapter.
    (d) The request shall identify all parties involved in the proposed 
transaction and their roles, as well as outline in detail the defense 
article and related technical data (including manufacturer, military 
designation and model number), quantity and value, the security 
classification, if any, of the articles and related technical data, the 
country or countries involved, and the specific end use and end user(s).
    (e) The procedures outlined in Sec. 126.8(c) through (g) are equally 
applicable with respect to this section.