delete PART 129—REGISTRATION AND LICENSING OF BROKERS
This regulation imposes a registration and licensing regime on persons engaged in brokering activities for defense articles and services. It requires annual registration with the Directorate of Defense Trade Controls, fees, and approval for various brokering actions including financing, arranging sales, or facilitating transfers. It applies to U.S. persons worldwide and foreign persons under U.S. ownership/control, with exemptions for certain activities like domestic sales, government employees, and purely administrative services.
This regulation creates a burdensome licensing regime over voluntary economic arrangements, imposing significant compliance costs and granting bureaucrats discretionary power over legitimate business activity. While stemming illicit arms proliferation is a legitimate goal, regulating brokers separately from the underlying transactions is overbroad and not narrowly tailored. The registration fees, approval requirements, and reporting burdens fall disproportionately on small businesses while doing little to enhance national security that could be achieved through targeted measures. It represents bureaucratic mission creep that restricts liberty and free enterprise without commensurate benefits.