State Dept. Final Rule for Electronic Arms Export/Import Filing to Take Effect Dec. 31
The State Department through a final rule is amending the International Traffic in Arms Regulations (ITAR) to allow CBP to implement the International Trade Data System (ITDS)/ACE for arms imports and exports, utilizing the State Department Directorate of Defense Trade Controls (DDTC) partner government agency message set, State said (here). The rule will become effective on Dec. 31. Starting that day, traders declaring permanent or temporary exports and temporary imports "will input data relevant to DDTC in CBP’s electronic system(s)," DDTC said. "CBP will transmit the relevant shipment details to DDTC via an electronic data exchange, eliminating the need for traders to notify DDTC separately."
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The rule strikes references to the legacy Automated Export System throughout the ITAR, and adds language clarifying that traders will submit license information via CBP’s electronic system. Requirements for DDTC export reporting in ACE include “all mandatory supporting documentation,” such as attachments, certifications, and proof of ACE filing, such as the Internal Transaction Number (ITN), by the time of export.
To properly execute temporary import license exemptions, DDTC’s registered and eligible exporters or agents working on an exporter’s behalf must electronically file re-export information in ACE for the goods being shipped, identify 22 CFR 123.4 as the authority for export, and provide the entry document number or a copy of the CBP document under which the article was imported. The rule requires temporary export licenses to be submitted via ACE, unless electronic reporting of such information is unavailable, in which case CBP will issue instructions. “In the event a physical license is required by U.S. Customs and Border Protection, the licensee is to retain the duly endorsed license for temporary export," DDTC said.
The rule includes requirements for declarations of exports of firearms, ammunition and personal protective gear, as well as data for emergency shipments, to be input into ACE instead of sent to DDTC. For emergency shipments (i.e., shipments that can’t meet pre-departure filing requirements), exporters or their agents must provide documentation through ACE, including the shipment’s ITN and an explanation for urgency, at least two hours before air departure or, for ground carriers, at the time the goods are provided to the carrier or at least one hour prior to U.S. departure.
The rule makes export license applicants or their agents responsible for ensuring that CBP properly decrements licenses to indicate the movements of defense articles temporarily exported from the U.S. and then moved from one license-authorized destination to another. DDTC licenses decremented by CBP won’t have to be returned to DDTC, but licenses not decremented by CBP must be returned by the applicant or partner government agency to DDTC upon expiration, and must detail when the total authorized value or quantity was shipped. Unused licenses never have to be returned to DDTC, according to the rule. If technical data is exported under an exemption, the exporter must electronically provide the export data to DDTC, to accompany the shipment, and must make the information available to CBP upon request, according to the rule.
Along with Electronic Export Information, ITN and other CBP-required documentation, the rule, referring to foreign military sales (FMS), says export filers should include the following statement on shipment invoices: “This shipment is authorized for export pursuant to 22 CFR 126.6(c), under FMS Case [insert case identification]. The U.S. Government point of contact is ________, telephone number _____.”
(Federal Register 1/03/17)