Section 129.5 - Exemption from requirement for approval(a) Unless paragraph (c) of this section applies, brokering activities undertaken for an agency of the U.S. Government pursuant to a contract between the broker and that agency are exempt from the requirement for approval provided that:(1) The brokering activities concern defense articles or defense services solely for the use of the agency; or(2) The brokering activities are undertaken for carrying out a foreign assistance or sales program authorized by law and subject to control by the President by other means, as demonstrated by one of the following conditions being met:(i) The U.S. Government agency contract with the broker contains an explicit provision stating the contract supports a foreign assistance or sales program authorized by law and the contracting agency has established control of the activity covered by the contract by other means equivalent to that established under this subchapter; or(ii) The Directorate of Defense Trade Controls provides written concurrence in advance that the condition is met.(b) Unless paragraph (c) of this section applies, brokering activities regarding a foreign defense article or defense service (see § 120.39 of this subchapter) are exempt from the requirement for approval when arranged wholly within and destined exclusively for the North Atlantic Treaty Organization, any member country of that organization, Australia, Israel, Japan, New Zealand, or the Republic of Korea, except in the case of the defense articles or defense services specified in § 129.4(a)(2) , for which approval is required.(c) Brokers engaging in brokering activities described in paragraph (a) or (b) of this section are not exempt from obtaining approval from the Directorate of Defense Trade Controls if:(1) The broker is not registered as required by § 129.3 ;(2) The broker or any person who has a direct or indirect interest in or may benefit from the brokering activities, including any related defense article or defense service transaction, is ineligible as defined in § 120.16(c) of this subchapter; or(3) A country or person referred to in § 126.1 of this subchapter is involved in the brokering activities or such activities are otherwise subject to § 129.7 .(d) Brokers who use the exemptions in this section must comply with all other provisions of this part 129. 78 FR 52691 , Aug. 26, 2013, as amended at 87 FR 16426 , Mar. 23, 2022