Changes to the Reporting Requirements of the USML Category XXI Determination Number and Goods Exported Under for Foreign Military Sales (FMS) Program in AES
December 30, 2024
On Thursday, August 10, 2023, the Department of Commerce, U.S. Census Bureau (Census Bureau) published a final rule (2023-16970.pdf (govinfo.gov) announcing the Department of State, Directorate of Defense Trade Controls (DDTC) collection of a new data element – Category XXI Determination Number in the Automated Export System (AES).
The purpose of this requirement is to prevent the unauthorized use of USML Category XXI, which is limited to those articles and services designated by DDTC under that category.
Effective January 1, 2025, AES will generate a fatal error (FATAL ERR 5C2 CAT XXI DETERMINATION NBR UNKNOWN) back to the filer if USML Category XXI “21” is selected in AES and the CAT XXI DETERMINATION NBR is UNKNOWN or missing.
DDTC is also aware of a subset of exporters using DDTC USML Category Code “21” as a workaround to export items under License Code/License Exemption Code “S94” for Foreign Military Sales (FMS) that are not items described on the USML. Most such articles would have been subject to the Export Administration Regulations (EAR) if they were not being exported via an FMS authorization. However, effective October 15, 2013, items to be exported under FMS authority are not “subject to the EAR” pursuant to § 734.3(b)(1)(vi) of the EAR because they are “defense articles” pursuant to section 47 of the AECA (22 U.S.C. 2794).
To continue to provide a valid means of exporting such items under S94 when Fatal Error Code 5C2 takes effect, the DDTC is also implementing DDTC USML Category Code “55” and Fatal Error Code 5C3 within AES.
The Addition of USML Category Code “55”
The AES Trade Interface Requirements (AESTIR), Appendix L has been updated by adding DDTC USML Category Code “55” (Articles Exported Under Foreign Military Sales (FMS) Authority and Not Described on the U.S. Munitions List (USML)). Category Code “55” is to be reported on the EEI ONLY when the export is to take place under the FMS program and the item to be exported is not described in USML Categories I-XXI (i.e., is normally subject to the EAR when not exported pursuant to a Foreign Military Sales authorization).
See the following instructions to determine how exports under the FMS program should be reported on the EEI. Exports under the FMS program are reported under Automated Export System (AES) License Code/License Exemption Code S94. By using DDTC USML Category Code “55” and the AES License Code/License Exemption Code S94, you are certifying that the terms, provisions, and conditions of the FMS program have been met.
- License Code/License Exemption Code S94 (FMS Program Exports) – Reported for any export under the FMS program. Any of the USML Category Codes are eligible with License Code/License Exemption Code S94. However, USML Category Code “55” may only be used in conjunction with License Code/License Exemption Code S94.
- Export Information Codes FS and FI – these Export Information Codes are the only eligible Export Information Codes to be reported with USML Category Code “55” under License Code/License Exemption Code S94.
If the USML Category Code “55” is reported under any other license types, AES will generate a fatal error (FATAL ERR 5C3-DDTC USML CATEG 55 NOT ELIG FOR LIC TYPE) back to the filer.
For further assistance, contact the licensing agency. The Response Team at the Department of State’s Directorate of Defense Trade Controls can be reached for this purpose at (202) 663-1282 or ddtccustomerservice@state.gov.
For a complete list of License Code/License Exemption Codes and the USML Categories, see Appendices F and L of the AESTIR at AESTIR Appendices | U.S. Customs and Border Protection (cbp.gov).
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