As of May 1, the State Department has made a temporary change in the Tier I, Tier II, and new registrant payment guidelines on the Directorate of Defense Trade Controls (“DDTC“) website to reflect certain reduced registration fees to mitigate the economic impact of the COVID-19 pandemic.
The DDTC is reducing fees for Tier I and Tier II registrants to $500 (reduced from $2,250 and $2,750, respectively) for registrations whose original expiration date is between May 31, 2020 and April 30, 2021. DDTC is also reducing registration fees to $500 (reduced from $2,250) for new applicants who submit their registration application between May 1, 2020 and April 30, 2021. The fee structure for Tier III registrants remains unchanged.
These reductions will apply through April 30, 2021, unless modified by a subsequent notification in the Federal Register. The reduction in these fees comes shortly after the DDTC issued measures, including some related to compliance and licensing, in response to the COVID-19 pandemic. Our blog post on those recent changes can be found here. The DDTC estimates that these registration fee reductions will save regulated industry over $20 million over the coming year.
The authors acknowledge the assistance of Ryan Orange in the preparation of this blog post.
