On May 1, 2020, the U.S. Department of State, Directorate of Defense Trade Controls (DDTC), announced that the agency is temporarily reducing registration fees for the upcoming year, as a result of the ongoing COVID-19 public health emergency. The fee reduction applies to new registrations made between May 1, 2020 and April 30, 2021. The reduction also covers existing registrations whose original expiration date is between May 31, 2020 and April 30, 2021.
In its statement, DDTC noted that the fee reductions are justified in recognition of the extraordinary challenges to the U.S. defense trade and the health of the Defense Industrial Base as a result of exceptional hardship and risks to safety caused by COVID-19. The fee reductions will apply to Tiers I and II, which cover many small and medium-sized enterprises. Notably, existing Tier III registrants will see no change to their fee structure.
DDTC provides a summary of the agency's usual fee structure in an FAQ page on its website. The following chart summarizes this usual fee structure, along with the reduced fee levels for the next year.
Tier |
Usual Fee Structure |
Temporary Fee Structure (until April 30, 2021) |
| Tier 1 – New Registrants |
$2,250 | $500 |
| Tier II – Existing Registrants (10 or fewer finalized licenses during prior period) |
$2,750 | $500 |
| Tier III – Existing Registrants (more than 10 finalized licenses during prior period) |
$2,750, plus $250 times the total number of finalized licenses over 10 (capped at 3% total value of licenses) | No change |
DDTC subsequently issued a notice about the fee reductions in the Federal Register on May 6, 2020.
If you have any questions regarding these registration fees, or would like assistance registering your company with DDTC, please reach out to Venable's International Trade Group.