DDTC: Filing Requirement / Clarifications Rule Category XXI

The Census Bureau issues this final rule amending its regulations to reflect new export reporting requirements related to the State Department, Directorate of Defense Trade Controls (DDTC) Category XXI Determination Number.

Specifically, the Census Bureau is adding a conditional data element, DDTC Category XXI Determination Number, when “21” is selected in the DDTC USML Category Code field in the Automated Export System (AES) to represent United States Munitions List (USML) Category XXI.

In addition, this rule makes remedial changes to the Foreign Trade Regulations (FTR) to update International Traffic in Arms Regulations (ITAR) references in existing data elements: DDTC Significant Military Equipment Indicator and DDTC Eligible Party Certification Indicator. This rule also makes other remedial changes to the FTR.

This final rule is effective November 8, 2023.

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Customs AES Announcement:

New DDTC AES Data Element and Response Message

This Department of State, Directorate of Defense Trade Controls (DDTC) new data element collection will help ensure that only commodities that have been determined to be controlled in USML Category XXI by the Director of DDTC’s Office of Defense Trade Controls Policy can be declared as such in AES. As a result of this new data element, a new response message “Response Code: 5C2 CAT XXI DETERMINATION NBR UNKNOWN” was created. Technical details on the new data element and new response message are found below. The Electronic Data Interface (EDI) to transmit to the AES and the AESDirect web application will be updated on August 10, 2023, 2:30 PM EDT, to accept the new data element and return the new response message. The response message will be informational for at least 90 days. After 90 days, when the final rule becomes effective, the Census Bureau, in cooperation with DDTC and U.S. Customs and Border Protection will determine a date when the response message will be changed to a fatal error.

The AESTIR Commodity Filing Formats have been updated.

ACE AESTIR Commodity Shipment Filing and Response is posted on cbp.gov with the updated data entry field and Response Message: CBP Proprietary: Format | U.S. Customs and Border Protection

ANSI X-12: 601 – Export Shipment Information is posted on cbp.gov with the updated data entry field and Response Message: ANSI X-12: 601 | U.S. Customs and Border Protection (cbp.gov)

The New Response Message is updated in Appendix A.

The AESTIR Appendix A – Commodity Filing Response Messages is posted on cbp.govadding the new Response Message: ACE AESTIR Appendix A - Commodity Filing Response Messages | U.S. Customs and Border Protection (cbp.gov)

Response Code: 5C2

Narrative Text: CAT XXI DETERMINATION NBR UNKNOWN

Severity: INFORMATIONAL

Response Code 5C2 will be set at a severity level of “Informational” for a minimum of 90 days, and then will be upgraded to a severity of “Fatal” at a later date.

How to Address this Response Code

This new data element is required when USML Category XXI is entered under the DDTC USML Category Code field. This requirement helps ensure that only commodities that have been determined to be controlled in USML Category XXI by the Director of DDTC’s Office of Defense Trade Controls Policy can be declared as such in AES.

If a user tries to submit a shipment in AES using USML Category XXI without providing a valid determination number, the system will allow the submission and return an Informational response code of 5C2. (After the severity is upgraded to Fatal, the system will reject the filing.)

DDTC recommends manufacturers review the Order of Review at ITAR § 120.11 and the USML at ITAR § 121.1. If you have doubt as to whether an article you manufacture is described on the USML, we encourage you to submit a Commodity Jurisdiction (CJ) determination request via the DECCS Industry Portal using form DS-4076 (a process for which DDTC registration is not required). The CJ process is described at ITAR § 120.12. Additional guidance for submitting a CJ request is available on the DDTC website under the Commodity Jurisdictions tab under ‘Conduct Business.’

Exporters may submit an export license application to DDTC in advance of receiving a CJ determination. For more guidance, see the DDTC FAQ, “May I submit a CJ for an item at the same time that I submit a license request to the Department of State for the same item?”

Even if your commodity is not described on the USML, it may be subject to the Export Administration Regulations (EAR) administered by the Department of Commerce. For items subject to the EAR, you may submit a Commodity Classification Request (CCATS) to the Department of Commerce. You can contact the Department of Commerce, BIS Office of Exporter Services for more information at (202) 482-4811.

Exporters and Software Developers that utilize the Electronic Data Interface (EDI) to transmit to the AES, should update their software to send the new data element.