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Part Four. Article 15 701Rolling text (A/AC.254/4/Add.2/Rev.4)“[Article 18 bis“Registration and licensing of brokers, 7[traders and forwarders] 8“[With a view to preventing and combating the illicit manufacturing of andtrafficking in firearms, their parts and components and ammunition,] 8 States Partiesthat have not done so shall take steps to require persons 9 who act on behalf ofothers, in return for a fee or other consideration, [for traders, forwarders] 8 in negotiatingor arranging transactions involving the international export or import offirearms, their parts and components or ammunition:“(a) To register with the country [of nationality and with the country where thenegotiations or arrangements referred to above take place;] 10 [where they are residentor established;] 11 and“(b) To obtain for [their transactions] 11 [each transaction] 10 a licence or authorizationfrom the country [where the negotiations or arrangements referred to abovetake place] 10 [where they are resident or established.] 11 ]”Notes by the Secretariat6. The issue of brokers was discussed at the informal consultations held during theeighth session of the Ad Hoc Committee. A majority of delegations agreed that the conceptof brokering should be defined and that the activities of brokers should be subject tothe protocol, but several delegations reserved their position or requested that the relevantportion of articles 2, 5 and 18 bis should be kept in square brackets. Of the delegationsthat supported the inclusion of these provisions, some supported defining the term“broker” in article 18 bis, while others preferred a separate definition in article 2. Therewas discussion, but no agreement, as to whether the proposals of Switzerland or the UnitedStates for the requirements of licensing and registration should be adopted.7At the seventh session of the Ad Hoc Committee, it was decided to replace the originally proposed text of article18 bis with a new text proposed by the United States (see A/AC.254/5/Add.18), as amended by Colombia. A second optionfor some of the text proposed by Switzerland was also incorporated for the purpose of further discussion. Several delegationsreserved their position on the proposal pending further consultations and it was noted that, as the previous text ofthis article had not been approved, the text should also remain in square brackets. Several delegations also requestedclarification of the meaning of the word “broker”. Generally, the Swiss proposals would base licensing requirements on thelaws of the broker’s place of residence or business and allow the conducting of regular business or multiple transactionson a single licence. The proposals of the United States would require a separate licence for each transaction and wouldrequire licensing by several jurisdictions: the broker’s residence, the country of nationality and the country where the transactiontook place. Delegations were asked to consult on these major issues to permit closure of the text at the subsequentsession.8Proposed by Colombia at the seventh session of the Ad Hoc Committee (see A/AC.254/5/Add.18).9At the seventh session of the Ad Hoc Committee, Malawi proposed that the word “person” should be replaced withthe word “broker” and that the words “who act on behalf of others, in return for a fee or other consideration in negotiatingor arranging transactions involving the international export or import of firearms, their parts and components or ammunition”should be used to construct a definition of the term “broker” in article 2. At the informal consultations held duringthe eighth session of the Ad Hoc Committee, there was general agreement that the intent in using the word “person” herewas to include both natural and legal or corporate persons.10Proposed by the United States at the seventh session of the Ad Hoc Committee.11Proposed by Switzerland at the seventh session of the Ad Hoc Committee.