From: Jim-Miller@suite.com Newsgroups: comp.org.eff.talk Subject: Defense Trade Registration (long) Date: 1 Nov 1993 01:43:45 GMT The following is the cover letter and instruction booklet you receive when you write/fax for information on Defense Trade Registration. I hope this helps put more facts into the "registration" debate. I recommend reading all of it. There is interesting info tucked in some of the boring sections. (Not to imply it is intentionally obscured.) Jim_Miller@suite.com P.S. The booklet is free and does not contain any mention of a copyright, therefore I don't think I am violating any rules by posting it here. ---------------------------------------- United States Department of State Bureau of Politico-Military Affairs Office of Defense Trade Controls Washington, D.C. 20522-0602 July 1993 Dear Registrant: A revised version of the International Traffic in Arms Regulations (ITAR) was published in the Federal Register (Part II, Vol. 58, No. 139, on Thursday, July 22, 1993. Please note that all references to ITAR 120.24 or 22 CFR 120.24 in the booklet "Registration: The First Step in Defense Trade" should now read ITAR 120.27 or 22 CFR 120.27. These citations are found on pages 3, 8, 12, and Appendix B of the registration booklet. The Government Printing Office (GPO) has informed the Office of Defense Trade Controls (DTC) that copies of the revised ITAR are available for sale, by calling the GPO Automated Ordering System at (202) 783-3238. The cost is $4.50 per copy. At this time, DTC does not have copies of the revised ITAR available for general distribution. United States Department of State Bureau of Politico-Military Affairs Center for Defense Trade Office of Defense Trade Controls REGISTRATION: The First Step in Defense Trade This manual supplements the _International Traffic in Arms Regulations_. Submit comments and recommended changes to: Office of Defense Trade Controls PM/DTC Room 200, SA-6 Bureau of Politico-Military Affairs U.S. Department of State Washington, DC 20522-0602 FAX: (703) 875-6647 Department of State Publication 9983 Bureau of Politico-Military Affairs Release July 1992 United States Department of State Bureau of Politico-Military Affairs Office of Defense Trade Controls Washington, D.C. 20522-0602 Dear Intending Registrant: The Office of Defense Trade Controls (DTC), U.S. Department of State, prepared these guidelines to answer your questions about registration. This information applies to manufacturers or exporters of defense articles, technical defense information, or defense services. We are responsible for administering certain U.S. laws and regulations that govern trade of defense articles, defense services, and defense technical data. Complying with those laws and regulations usually requires two separate steps: Registering and Licensing. Section 122 of the _International Traffic in Arms Regulations_ (ITAR) contains the full details on registration. We have included a copy of the ITAR with this manual. Key points worth noting include: o All manufacturers of defense materials, even those not engaged in exporting, must register. o With very few exceptions, only exporters who have registered with DTC may submit export license applications and receive approved export licenses. To register or renew your registration, you must complete a Form DSP-9, Statement of Registration, and return it with: o a letter of transmittal, signed by an authorized senior officer, o three copies of a document that authorizes the intending registrant to do business in the United States; and o the correct registration fee. We ask that you give careful attention to preparing your registration submission. Disregarding these instructions can cause delays in processing both your registration and your company's export license applications. Sincerely, William B. Robinson Director TABLE OF CONTENTS Exemptions From Registration Requirements..............................1 Who Is Exempt?.................................................1 I believe I'm Exempt, And I Want to Export.....................1 Background Information.................................................1 Laws And Regulations...........................................1 What Is Controlled?............................................2 Why Registration? Who Must Register?..........................2 How to Register................................................3 Helpful Hints..................................................3 Registration Step-by-Step -- Completing The Form DSP-9.................4 General Instructions...........................................4 Block 1 - Block 3..............................................4 Block 4 - Block 8..............................................5 Block 9 - Block 12.............................................6 Block 13 - Block 15............................................7 Completing Registration................................................7 Sealing The Continuation Sheets................................7 Preparing The Transmittal Letter...............................7 The Final Review: The Registration Checklist...........................9 Mailing Your Registration.....................................10 Courier Delivery Of Your Registration Submission..............10 Beyond Registration Documentation......................................8 When Are You Registered?......................................10 Your Registrant Code..........................................10 Registration Expiration.......................................11 Renewing Registration.........................................11 Incomplete Registration.......................................11 Lapsed Registration...........................................11 Changes To Registration.......................................12 Refund Of Registration Fees...................................13 Exemptions From Registration Requirement WHO IS EXEMPT? ITAR # 122.1(b) specifies the very few exceptions in which registration is not required. Registration is not required for: o Officers and employees of the United States Government acting in an official capacity. o Persons whose pertinent business activity is confined to the production (i.e. printing) of unclassified technical data only. (Persons engaged in exporting unclassified technical data are required to register.) o Persons all of whose manufacturing and export activities are licensed under the Atomic Energy Act of 1954, as amended. o Persons who engage only in the fabrication of articles for experimental or scientific purposes, including research and development. I BELIEVE I'M If you believe that you are exempt from the EXEMPT, AND I WANT registration requirements because of any of the four TO EXPORT... listed exemptions, you should so state in a letter to this office. Cite the applicable exception or explain why you are not in the business. Your letter should accompany any request for export authorization, including an export license application or other request for approval. See "A Word About Export Licensing", page 13, for further information and a telephone point of contact for your questions. Background Information LAWS AND The history of the U.S. defense trade controls goes REGULATIONS back to public concern over profiteering from armaments in the 1930s. The 1935 passage of the _Neutrality Act_ empowered the Secretary of State to set up an office of Arms and Munitions Controls, with authority to register and issue export licenses to all U.S. entities engaged in defense-related trade. Both the _Mutual Security Act of 1954_ and the _Arms Export Control Act of 1976_ elaborated and expanded the role of the Department of State. These laws, and Executive orders affecting defense trade, form the authority and foundation of the Code of Federal Regulations (CFR), Title 22, Foreign Relations. _The International Traffic in Arms Regulations_ (ITAR) includes Parts 120 - 130 of 22 CFR. To refer to a specific paragraph in these regulations, one may use two different notations. ITAR # 122.2(a) is the shortened version of the legal reference 22 CFR 122.2(a). Both refer to Title 22, Part 122, Section 2, Subsection (a) of the Code of Federal Regulations. WHAT IS One major element contained in the ITAR is the U.S. CONTROLLED? Munitions List (USML)(22 CFR 121.1), the official list of the types of items controlled by the Department of State. Groups of items with similar uses form the "USML Categories." Appendix A of the ITAR is an alphabetical listing of the USML items. To determine if your articles fall under the jurisdiction of the USML, turn to Appendix A in the ITAR. Look up the generic type of item that you manufacture or export, or for which you provide technical data or services. WHY Any person who engages in the United States in the REGISTRATION? business of either manufacturing or exporting defense WHO MUST REGISTER? services is required to register with the Office of Defense Trade Controls. Therefore, both manufacturers and exporters of U.S. defense articles and related technical data and furnishers of defense services must register with the U.S. Department of State (ITAR # 122). o Registration is primarily a means to provide the U.S. Government with necessary information on who is involved in certain manufacturing and exporting activities. Registration does not confer any export rights or privileges. It is a precondition to the issuance of any license of other approval for export. o Manufacturers of defense articles that do not engage in exporting must nevertheless register. Company or corporate divisions or subdivisions may not register separately unless they are required by law to file separate Federal Income Tax returns. Registration is the mechanism Defense Trade Control (DTC) uses to inform manufacturers and exporters of U.S. defense articles about major U.S. Government policies and procedures. DTC periodically mails information addressed to the individuals signing the Form DSP-9, Statement of Registration, at the address in Block 1. DTC also mails the information to the individual(s) listed in Block 11 as the Washington DC area representative or information recipient for the registrant. HOW TO REGISTER This package includes everything you will need to register: o _The International Traffic in Arms Regulations_ (ITAR) o A Sample Completed Registration submission (Appendix A), which includes: . Sample Transmittal Letter following # 122.2(b) of the ITAR, . Sample Completed DSP-9 Registration Statement. o Blank DSP-9, Registration Statement (Appendix B) HELPFUL HINTS The following helpful hints will assist you in completing your registration package correctly. o Carefully follow these instructions when completing the Form DSP-9, Registration Statement. These instructions amplify the instructions previously printed on the back of the Form DSP-9. Review the sample Form DSP-9, in Appendix A before completing your DSP-9. o In addition to the completed DSP-9, provide three copies of one of the following documents that authorizes you to do business in the United States. Acceptable documents include your current: . State Incorporation Certificate; . State Certificate of Good Standing; . State, County, or City Business License; . Federal Firearms License (FFL) issued by the Bureau of Alcohol, Tobacco, and Firearms (BATF) of the Department of the Treasury (DOT); . State Articles of Incorporation (include only the pages with your firm's name and the official State Seal). o Review the sample Transmittal Letter before preparing the letter required by 22 CFR 122.2. Including a statement about whether your company is foreign owned or controlled. List the precise company and officer names. State whether or not the U.S. Government (or any of its agencies) has ever indicted or convicted the intending registrant or any senior company officers for violating U.S. criminal statues listed in 22. CFR 120.24. Have an authorized senior officer (one listed in Block 7) sign the form and letter. o Review your registration submission. Omitting any information or item will cause delays in your registration and export licensing. Registration Step-By-Step -- Completing the Form DSP-9 GENERAL o Fill in the requested information in each block: If INSTRUCTIONS Not Applicable or None, type "N/A" or "NONE." You may leave Block 2 blank. o If the space allowed is to small to contain all the information, prepare a Continuation Sheet on plain, white paper. o Remember that the Form DSP-9, Registration Statement, is an official U.S. Government document. Providing false information is punishable by law. BLOCK 1 On the first line, enter the precise, full name of the applicant. In most cases, the applicant will be a company or another type of commercial entity, but might be otherwise (e.g. an individual). On the second and following lines, enter the complete street address. You may also include your Post Office Box mailing address. We cannot accept registration statements with only a Post Office Box mailing address. Finally, enter the city, State and ZIP Code (preferably a nine-digit ZIP Code). On the bottom line, enter your Area Code and telephone number. We will address all official correspondence to you regarding registration using the information in this block. If we require additional information, we will also contact your firm at the phone number you provide here. BLOCK 2 If you have registered before, enter your current or previous registrant code. Otherwise, leave this block blank. BLOCK 3 Enter the dollar amount of the check or money order you will enclose with your registration packet. Also enter the number of years for which you wish to register. Note that multiple-year registrations of 3 years and longer have the advantage of reduced fees. Please make your check or money order payable to the "Department of State". Per # 123.3 of the ITAR, registration fees are: 1 year $ 250 2 years $ 500 3 years $ 700 ($50 savings) 4 years $ 850 ($150 savings) 5 years $1,000 ($250 savings) BLOCK 4 Check the box that reflects the legal identity of the intending registrant. If no box is appropriate, please explain on the Continuation Sheet. BLOCK 5 Check the box that most closely describes the nature of your business with USML articles or defense services. If further explanation is necessary, provide this on the Continuation Sheet. BLOCK 6 Enter the date you were incorporated or commenced business, and the city and State in which you are incorporated or registered to do business. Proof of incorporation or eligibility to do business in the United States must accompany your application for registration. In the case of incorporated applicants, the use of your corporate seal in Block 15 and on all attachments or exhibits is also required. BLOCK 7 List all principal executives, partners, owners, chief executive officers, presidents, vice presidents, or other senior officers of officials (e.g. comptroller, treasurer, general counsel) or any member of the board of directors of the applicant partnership, company, or corporation, as applicable to your firm's structure. For each officer, include: Complete Name (Last Name, First Name, Middle Initial) Date of Birth Social Security Number Home Address (Street, City, State, ZIP Code) Position Citizenship (e.g., U.S.A.) BLOCK 8 See ITAR # 121 to determine the USML category of the articles/services your firm manufactures, exports, or provides. Enter the category numeral and generic category name. If applicable, list the U.S. Government agency that purchases the articles or the services. State <...> "NONE" if no U.S. Government agency is purchasing the defense articles or services identified in this block. Use a Continuation Sheet, if necessary, to list all articles and agencies. BLOCK 9 Provide the names and addresses of wholly or partially owned U.S. subsidiaries that manufacture, export, or sell USML articles or defense services. Use a Continuation Sheet if necessary. BLOCK 10 Provide the names and addresses of wholly or partially owned foreign subsidiaries that manufacture, export, or sell USML articles or defense services. Use a Continuation Sheet if necessary. BLOCK 11 Enter the name, business address, and office telephone of your business representative. List only a U.S. address. You may use a Post Office Box address in this block. The information you list in this block will be used in DTC's official mailing list. DTC will mail its quarterly bulletin (_Defense Trade news_), periodic updates of the ITAR, and other essential information regarding policies and practices to the individual or office listed in this block. You may list your firm's Washington, D.C. representative, or any individual outside the Washington, D.C. area as your business representative. A business representative can be anyone who regularly deals with the defense trade process. If you engage in exporting, it is useful to list the individual who actually prepares your export license applications. If you engage only in manufacturing, it is useful to list your firm's general counsel. Other potential representatives include your marketing manager, contracts administrator, program management director, international trade developer, and other strategic planners. If you have no such representative, please state "NONE." Your information will then be mailed to the individual who signs Block 14 at the address listed in Block 1. BLOCK 12 If you have a parent company, enter its name, full address, and telephone number. If you have no parent company, state "NONE." (Please note that company or corporate divisions or subsidiaries in the business of manufacturing or exporting defense articles and services may not register separately unless they are required by law to file separate Federal income tax returns. If you file separate Federal income tax forms, please state this in Block 13.) BlOCK 13 If you file income tax separate from the firms listed in Blocks 9, 10, and 12, mark the "Yes" box. If your income tax information is submitted for you by one of the firms listed in Blocks 9, 10, or 12, mark the "No" box. If yours is a corporate division of subsidiary of a parent company, see the Block 12 note about restrictions on registration. Your firm (corporate division or subsidiary) may not register separately from your parent company. BLOCK 14 Type the name of the person who will sign the DSP-9, Registration Statement. The person signing the Form DSP-9 (as well as the Transmittal Letter) must be one of the senior officers listed in Block 7 and empowered by the intending registrant to sign such documents. Additionally, this individual should be the person most familiar with the Form DSP-9 and its contents. If our office has questions regarding your registration, we will contact the person who signed this form at the telephone number listed in Block 1. BLOCK 15 Attach of affix the corporate seal to the Form DSP-9. If you do not have a seal, type "N/A" in the block provided for the corporate seal. Completing Registration SEALING THE Apply the corporate seal to all addendum pages. If you CONTINUATION do not have a seal, type or print "CORPORATE SEAL N/A" SHEETS in the bottom right-hand corner of all pages of the Continuation Sheet. PREPARING THE Section 122.2(b) of the ITAR requires that a TRANSMITTAL Transmittal Letter accompany the completed DSP-9 LETTER Registration Statement. This transmittal letter is frequently called a "122.2" letter, referring to the ITAR section that requires it. Note: The 122.2 Transmittal Letter differs significantly from a 126.13 Letter The 126.13. Letter only accompanies export license applications and is not acceptable with the Form DSP-9 Registration Statement. You will find a completed sample Transmittal Letter in Appendix A. Please note that the Transmittal Letter contains the following information: o A statement as to whether the intending registrant or any senior company officers have ever been indicted for or convicted of violating U.S. criminal statues listed in ITAR 120.24. If such indictments or convictions exist, a detailed explanation is appropriate. o A statement as to whether the intending registrant or any senior company officers are ineligible to contract with, or to receive a license or other approval to import defense articles or defense services from, or to receive an export license or other approval from, any agency or the U.S. Government. The Final Review: The Registration Checklist MAILING YOUR Mail your registration materials and fee to the REGISTRATION following address: PM/DTC, SA-6, Room 200 ATTN: REGISTRATION Office of Defense Trade Controls Bureau of Politico-Military Affairs U.S. Department of State Washington, DC 20522-0602 Note: Instructions printed on the back of previous editions of the Form DSP-9 directed you to mail your fee to the Cashier's Office of the Department of State. This procedure is no longer in effect. Mail your fee with the Form DSP-9, Registration Statement. COURIER DELIVERY Deliver your materials and fee to the following OF YOUR address: REGISTRATION SUBMISSION Recipient: REGISTRATION Company: Office of Defense Trade Controls, PM/DTC, Room 200 Street Address: 1701 N. Fort Myer Drive City, State, ZIP: Arlington, VA 22209-3113 Phone: (703) 875-6650 Beyond Registration Documentation WHEN ARE YOU Your firm is "officially registered" when DTC receives REGISTERED? your Form DSP-9 Registration Statement and assigns a registration number. DTC processes all registration materials as quickly as possible. DTC asks that you wait 2 weeks before inquiring about the status of your registration. Once DTC has processed your registration materials, it will mail you a letter that will both acknowledge receipt of your registration materials and fee, and provide you with a registrant code. you are then officially registered. YOUR REGISTRANT The first four digits of the registrant code indicate CODE the month and year your registration will expire. Registration is valid through the last day of the month indicated. The last five digits comprise the applicant number that identifies your firm. REGISTRATION The Office of Defense Trade Controls does not EXPIRATION ordinarily send notices about expiration dates. It is your responsibility to initiate renewal actions prior to expiration. Your registrant code contains the expiration date of your registration. For example, a registrant code of 0191-1234 means that the registration will expire on the last day of January 1991. The number 1234 is your applicant identification number. RENEWING Registrants should submit a new, complete registration REGISTRATION to renew their registration at least 60 days before the expiration date. Renewing registration requires all the information listed in this manual. Original registrations and renewals differ in only one aspect, the Block 2 entry. In Block 2 for your first registration you will enter "NONE." For renewal, you will enter your previously assigned nine-digit code. INCOMPLETE If your registration submission is incomplete and does REGISTRATION not comply with ITAR # 122.2, DTC will mail a letter notifying you. We may also contact the person who signed Block 14 at the phone number in Block 1. Although we will begin to process your registration, the Department of State will not grant any defense trade licenses or other approvals prior to receipt of the required materials. Required materials must arrive in the DTC office within 30 days of the date of its letter of notification. After 30 days, DTC will return any incomplete applications without action. Moreover, failure to provide these materials may be a violation of the _International Traffic in Arms Regulations_, and could result in criminal and civil penalties. LAPSED You may restore a registration after is has expired, REGISTRATION whether of not you were in the defense trade business in the lapsed period. If you were in the business of exporting or manufacturing defense articles, or providing defense technical data, or defense services during that lapse period, taking the following actions: o State in the Transmittal Letter that you were in the business of exporting or manufacturing defense articles during the intervening lapsed period. o Submit the correct fee to bring your registration up to date. Include a fee to cover this lapsed period. If you were not in the business, your registration may be more lengthy. When you originally registered with the Department of State, you declared that you were in the business of defense trade. To restore your expired registration without paying the required registration fee to cover the lapsed period, you bear the burden of proof. You must clearly demonstrate that you performed no defense-related trade actions such as manufacturing or exporting USML items, or providing USML services or technical data, during the lapsed period. To restore your registration, take the following actions: o State in the Transmittal Letter that you were in the business of neither exporting nor manufacturing defense articles, nor providing defense services or technical data, during the intervening lapsed period. o Submit evidence that you did not engage in activities regulated by the ITAR during the intervening lapsed period. This information should be easily accessible in the 6-year records file you maintained as required by ITAR # 122.5 CHANGES TO DTC reminds registrants to read ITAR # 122.4 carefully. REGISTRATION This section requires two separate notifications by registered mail. o The 5-day notification. The registrant must, within 5 days of the event, notify the Office of Defense Trade Controls by registered mail if there is a change in status of your firm's principal officers of a change in the firm itself. . Change in status of principal officers. You must notify this office if any of the persons referred to in # 122.2(b) are indicted for or convicted of violating any of the U.S. criminal statues enumerated in section 120.24 of the ITAR. you must also notify this office if these individuals become ineligible to contract with, or to receive a license or other approval to import defense articles or defense services from, or to receive an export license of other approval from, any agency of the U.S. Government. . Change in the status of the firm. you must notify the Office of Defense Trade Controls if there is a material change in the information contained in the Form DSP-9, Registration Statement, or attachments. Basically, if any information in any block of the <...> Form DSP-9 changes from the information you are now submitting, you should notify the Office of Defense Trade Controls. Such changes include, but are not limited to: . a merger; . a change in the senior officers; . the establishment, acquisition, or divestment of a subsidiary or foreign affiliate; . a change of location, mailing address, Washington, D.C. representative, information recipient, etc.; or . the dealing in an additional category of defense articles or defense services. o The 60-day notification. If your firm plans to sell ownership or transfer control of your company (or any part of your company) to a foreign person, you must notify the Office of Defense Trade Controls by registered mail at least 60 days in advance of the proposed transaction. [See ITAR # 122.2 (c) for definitions of foreign ownership and foreign control.] REFUND OF If a registrant ceases to engage in the manufacture or REGISTRATION FEES export of defense articles and defense services, a registration fee refund may be in order. See ITAR # 122.3(c) for a full discussion of refunds. Export Licensing A WORD ABOUT Registration is simply an enrollment, and does not give EXPORT LICENSING the registrant any privilege, licenses, or powers. Registration is necessary but is not the approval needed to export defense articles and services. To export, a registrant must submit an export license application to the Office of Defense Trade Controls. To obtain the Department of State license application forms, datafax your request to the Arms Licensing Division, (703) 875-6647. Address your questions about submitting license applications to the Arms Licensing Division, Office of Defense Trade Controls. To reach that division, call (703) 875-6644 and follow automated voice instructions. Contacting Our Offices Postal Address: Office of Defense Trade Controls PM/DTC Room 200, SA-6 Bureau of Politico-Military Affairs U.S. Department of State Washington, DC 20522-0602 Courier Address: Office of Defense Trade Controls PM/DTC, Room 200, SA-6 1701 N. Fort Myer Drive Arlington, VA 22209-3113 Telephone Numbers: General Information: (703) 875-6644 Registration/Compliance: (703) 875-6650 Commodity Jurisdictions: (703) 875-7041/5655 _Defense Trade News_: (703) 875-5660 Arms Licensing Division: (703) 875-6644 Facsimile Numbers: Compliance or Registration: (703) 875-5663 Arms Licensing Division: (703) 875-6647 Licensing Forms " Commodity Jurisdictions " _Defense Trade News_ " Addressing Datafax Please address all facsimile transmissions about Correspondence registration to: Compliance Analysis Division Office of Defense Trade Controls PM/DTC/CAD APPENDICES Sample Transmittal Letter For Registration Applicants (It is recommended that the sample letter, signed by an authorized senior official, be on the intended registrants letterhead. The suggested format will satisfy the requirements of 22 CFR # 122.2(b) when there is no conviction, indictment, or ineligibility to declare. If any such considerations apply, however, their full particulars must be provided.) Mr. William B. Robinson Director, Office of Defense Trade Controls (PM/DTC) Room 228, SA-6 Department of State Washington, DC 20522-0602 Dear Mr. Robinson: In compliance with 22 CFR # 122.2(b)(1) and (b)(2), I hearby state that I am an authorized senior officer of [insert the intended registrant's name]. Furthermore, I state that: Neither the intended registrant, chief executive officer, president, vice-presidents, other senior officers or officials (e.g. comptroller, treasurer, general counsel) or any member of the board of directors (i) has ever been indicted for or convicted of violating any of the U.S. criminal statues enumerated in 22 CFR # 120.24; or (ii) is ineligible to contract with, or to receive a license or other approval to import defense articles or defense services from, or to receive an export license or other approval from, any agency of the U.S. Government. In accordance with CFR # 122.2 (b)2, the applicant must also declare whether the intended registrant is owned or controlled by foreign persons (as defined in CFR 122.2 (c)). [Signature of Senior Officer Full Name and Title] Transmittal Letter Instructions Please adapt the format of the transmittal letter to fit your business situation (e.g., individual, partnership, corporation, etc.) 1) The intending registrant must include two statements in the Transmittal Letter: A statement as to whether the chief executive officer, president, vice-presidents, other senior officers or officials (e.g. comptroller, treasurer, general counsel) or any member of the board of directors: (i) has ever been indicted for or convicted of violating any of the U.S. criminal statues enumerated in 22 CFR # 120.24 of the ITAR; or (ii) is ineligible to contract with, or to receive a license or other approval to import defense articles or defense services from, or to receive an export license or other approval from, any agency of the U.S. Government. NOTE: If your business has been indicted or convicted of any of the above stated violations of the ITAR and is ineligible to contract with the U.S. Government, please provide full details in the text of your Transmittal Letter. 2) In the last paragraph of the Transmittal Letter, the intending registrant must declare whether the firm is owned or controlled by foreign persons (as defined in 22 CFR # 122.2(c)). For purposes of this section of the statute, "ownership" means that more than 50 percent of the outstanding voting securities of the firm are owned by one or more foreign persons. "Control" means that one of more persons have the authority or ability to establish or direct the general policies or day-to-day operations of the firm. Control is presumed to exist where foreign persons own 25 percent or more of the outstanding voting securities if no U.S. persons control an equal or larger percentage. ** PLEASE INCLUDE IN YOUR STATEMENT THE WORDS 'OWNERSHIP' AND 'CONTROL'. IF THEY ARE MISSING FROM YOUR DECLARATION, YOUR TRANSMITTAL LETTER WILL BE INCOMPLETE. FINALLY, IF YOUR COMPANY IS OWNED AND/OR CONTROLLED BY FOREIGN PERSONS, YOUR LETTER SHOULD STATE WHETHER YOU ARE INCORPORATED OR AUTHORIZED TO DO BUSINESS IN THE UNITED STATES.