Last month Directorate for Defense Trade Controls (DTC) published a notice on its web site requiring electronic filing of Shipper’s Export Declarations (SEDs) using the electronic AES system for all items controlled by the International Traffic in Arms Regulations (ITAR). On October 27, 2003, DTC amended the ITAR to officially require the same. The new ITAR requires that you electronically report all ITAR exports to the US Government, except for exports of technical data under exemptions (not including the exemption for agreement). Generally speaking, for hardware exports you report electronically using AES and for technical data exports you report directly to DTC.
Note to Companies outside of the United States: If you are transferring items between non-US locations, no AES or ITAR reporting is required but you may want to share the information below with the US-based business who export to you to help them get their exports to you cleared properly.
The primary ITAR revisions come in the new ITAR section 123.22 – Filing, retention, and return of export licenses and filing of export information. ITAR 123.22 requires electronic export reporting for all ITAR exports, either via AES for hardware or via a new system for direct reporting to DTC (the latter system currently is a paper reporting system). These are the new ITAR 123.22 procedures for exports.
Requirements for Hardware Exports under DSP-5
- Lodge license with Customs
- Submit AES information 8 hours (air or truck shipments) or 24 hours (sea or rail shipments) in advance of export
- Through December 18, 2003, present a paper copy of the AES document to Customs
- Present to Customs export documents, including (but not limited to) the AES Internal Transaction Number (ITN) or External Transaction Number (ETN)
- Emergency Exports: If your shipment is too urgent for the 8/24 hour advance AES requirement and it is destined for an ultimate recipient and end user that is a foreign government, you must present the standard documents to Customs plus a copy of a letter you sent to DTC explaining why the shipment is urgent. You must submit the original of that letter directly to DTC.
Requirements for Hardware Exports under Exemptions and Agreement
- Submit AES information 8 hours (air or truck shipments) or 24 hours (sea or rail shipments) in advance of export
- Through December 18, 2003, present a paper copy of the AES document to Customs
- Present to Customs export documents, including (but not limited to) the AES Internal Transaction Number (ITN) or External Transaction Number (ETN)
- Emergency Exports: If your shipment is too urgent for the 8/24 hour advance AES requirement and it is destined for an ultimate recipient and end user that is a foreign government, you must present the standard documents to Customs plus a copy of a letter you sent to DTC explaining why the shipment is urgent. You must submit the original of that letter directly to DTC.
Requirements for First Technical Data Export under DSP-5
- Exporter keeps license
- Exporter self validates the initial export on the back of the DSP-5 for the first export
- Submit technical data export information report to DTC – currently present this information on paper (see Paper Notice guidelines below). Effective January 18, 2004, you must submit the information electronically to DTC.
- Send the DSP-5 to DTC
- You do not have to notify DTC of exports after the first export. For all subsequent exports under the license, use the tech data copies exemption in ITAR125.4 and follow the export clearance procedures for exports under exemptions.
- If you ship technical data through a port, Customs can require that you give it a copy of the initial export information you submitted to DTC.
Requirements for First Technical Data Exports under Agreements (TAAs and MLAs)
- Submit technical data export information report to DTC – currently present this information on paper (see guidelines below). Effective January 18, 2004, you must submit the information electronically to DTC.
- You do not have to notify DTC of exports after the first export.
Requirements for Technical Data Exports under Exemptions
- Mark the document or package containing the technical data with this ITAR certification statement: 22 CFR [insert ITAR exemption] applicable. If the export is oral, visual, or electronic, you must complete a certification statement and keep it for the standard five-year record retention period.
- In the Federal Register notice DTC stated, “Mandatory reporting on all exemptions is being further delayed, and will be implemented in a future Federal Register notice amending Section 122.23.” The new text of ITAR 122.23(b)(3)(iii) currently states that beginning January 18, 2004, you must electronically report exports of tech data under exemptions to DTC. Don’t ask me what this contradiction means. Let’s hope that by January 18, 2004, DTC clarifies this. (And let’s all hope we win the lottery and get out of this field.)
- So, for now, no notice to DTC or AES is required.
Paper Notice to DTC of Initial Technical Data Export under License or Agreement
- Mark your cover letter ATTN line “Initial Export Notification for [insert Agreement or License] [Agreement or license number]”
- Attach your DSP-5 when that is what you used for the export.
- Optional: Thank DTC for requiring you to submit a report that DTC traditionally has rarely, if ever, even read in the past.
Note: Please ignore all steps marked as optional.