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Electronic Filing of Export Information Using the Automated Export System (AES) and Direct Export Reporting to DDTC (Form DS-4071)

Last Updated: March 11, 2008

UPDATE AS OF March 11, 2008: Public comments solicited for form DS-4071 - On March 7, 2008, the Department of State published a Federal Register notice (73 FR 12496) soliciting public comment on form DS-4071, "Export Declaration of Defense Technical Data or Services," and OMB reauthorization. Once implemented, form DS-4071 will be used by exporters to electronically report transfers of defense technical data or services directly to DDTC, as outlined below. A facsimile of DS-4071 is available for review as well as instructions for completion of the form. A functional version of the form will be available once certain technical details regarding the collection are finalized. Please watch this Web site for announcements regarding the rollout of DS-4071.

This Web page provides an overview of electronic reporting of export information using the Automated Export System (AES) and direct reporting of certain export data (using form DS-4071) to the Directorate of Defense Trade Controls (DDTC). Specific details on using AES can be found on the Bureau of Customs and Border Protection (CBP) Web site. Electronic reporting of export information can be found in the International Traffic In Arms Regulations (ITAR) at 22 CFR §123.22. Specific guidance on use of the electronic filing of export data directly to DDTC will be published on the DDTC Web site once development of this system is finished.

Key Information on This Web Page

Key Dates

October 18, 2003: Use of AES is mandatory for all shipments of United States Munitions List (USML) hardware. A hardcopy "back up" of the AES submission must be provided to Customs at port.

December 18, 2003: Provision of hardcopy "back up" of the AES submission is no longer required at port.

[Future Date]: Use of the DDTC direct electronic reporting system (DS-4071) is mandatory for all initial transfers of USML technical data and defense services under DDTC approved licenses and agreements.

[Future Date]: Expanded reporting requirements on technical data and defense services are published.

Background on Export Reporting Requirement

Section 38(i) of the Arms Export Control Act (AECA) requires the implementation of a system for exporters of USML articles to report export information to the Department of State. In addition, Public Law l06-113 amended Section 30l, of Title 13 USC authorizing the Secretary of Commerce to mandate electronic filing of export information for items identified in the USML that require a Shipper's Export Declaration (SED). AES is an electronic alternative for filing of SED information operated by the Bureau of Census, Foreign Trade Division (FTD) and the Bureau of Customs and Border Protection (CBP). Effective October 18, 2003, use of this system for filing export information on shipments of USML hardware will be mandatory.

Some exports of ITAR controlled articles are not monitored by CBP (e.g., oral, visual, electronic transmissions of technical data and defense services), and are currently reported directly to DDTC via letter or decremented license. The Department of State is developing a system to electronically report shipments of technical data and defense services directly to DDTC.

Cost of implementation to the export community, because this automates existing paper filing requirements, should be minimal. These procedures will implement §38(i) of the AECA by use of an electronic data reporting system that standardizes and simplifies the existing reporting and record keeping requirements currently in the ITAR.

Electronic Reporting of Hardware via AES

Effective October 18, 2003, all exports of hardware controlled by the ITAR, regardless of the type of approval (e.g., license, agreement, or exemption) require filing of export information with CBP using AES. Exporters can connect with AES by using an in-house application conforming to the AES technical documentation, a system developed by a third party vendor, or using AESDirect, the Census Bureau's free Internet based system for filing AES information.

Electronic Reporting of Technical Data and Defense Services to DDTC Using Form DS-4071

While electronic reporting of hardware exports is mandatory on October 18, 2003, DDTC is not yet requiring electronic reporting of exports of technical data and defense services, in order to ensure an effortless transition from paper to electronic filing.

When the DDTC system (DS-4071) is implemented, direct electronic notification to DDTC shall be required when the initial export/transfer of technical data and services is made pursuant to a license or an agreement. A copy of the notification to DDTC shall also be made available to CBP, upon request, for shipments of technical data when using a U.S. Port (e.g., hand carried exports of technical data). Exports of technical data or defense services using an exemption need not be notified to DDTC at this time, unless the export is made through a U.S. Port. DDTC anticipates requiring notification for exports using an exemption in the future through publication of a separate Federal Register notice. Pursuant to existing requirements under the ITAR, exporters should continue to maintain records of shipments using exemptions and make these records available to DDTC upon request. Specific guidelines for use of the DDTC Export Data System will be provided on the DDTC Web site.

Interim Procedures for Reporting to DDTC

Until use of DS-4071 becomes mandatory, DDTC will retain the current practices for the reporting of exports of technical data and services. That is, for reporting exports of technical data that is licensed on a DSP-5, the applicant must decrement the initial export on the original of the Form DSP-5 and return the license to DDTC. Any additional exports of the licensed technical data (i.e., the transaction must be identical, including the end use and end users) would be the subject of the exemption in §125.4 of the ITAR. For reporting on agreements, the initial export of technical data and defense services using an agreement will be by letter. For ease in handling these requests, the letter should have an attention line reading "ATTN: Initial Export Notification for Agreement [insert agreement number]". Should the applicant need to export technical data using a U.S. Port (e.g., hand carry), the exporter should present to U.S. Customs a copy of this letter upon request and one copy should be immediately sent to DDTC consistent with the current ITAR requirement.

New AES Data Fields

AES data requirements include the following elements:

  • DDTC registration number of the authorized exporter;
  • Identification of Significant Military Equipment (SME) as defined in §120.7 of the ITAR
  • A certification that all parties in the transaction are eligible;
  • Identification of the USML Category (§121.1 of the ITAR) of the item being shipped;
  • Data fields to report the quantity and unit of measure as described in the license or ITAR exemption; and
  • A field to identify the ITAR exemption authorizing the export.

Further changes to AES may be necessary (e.g., identification of the article being exported against the line item of the article authorized on the export license). Should changes occur, they will be published by DDTC, the Bureau of the Census and CBP as enhancements to the AES and DDTC systems.

AES Submission Acknowledgement (XTN/ITN)

AES requires either the use of external or internal transaction numbers to track a transaction. The External Transaction Number (XTN) is generated at the time of AES filing by the DDTC registered applicant/exporter or agent. The Internal Transaction Number (ITN) is generated by AES and returned to the filer electronically. In any instance when CBP rejects the AES submission, it will be considered as not having met the regulatory requirement of the ITAR and export of the defense articles may not be made.

Timelines for Reporting Export Information Using AES

Both the Department of State and CBP agreed that the timelines for reporting exports of USML articles must provide sufficient time to ensure that the shipments could be properly monitored by CBP prior to the export. Thus, the timelines for providing export information to CBP using AES are:

  • Air or truck shipments must be electronically filed at least 8 hours prior to departure
  • Sea or rail shipments must be electronically filed at least 24 hours prior to departure

Emergency Shipments

Recognizing that instances occur when the exporter is unable to meet the required filing timelines, an emergency shipment procedure is being implemented. The procedure is for emergency shipments of hardware against a valid license when the ultimate destination and end user identified on the license is a government. The timeline for filing of emergency shipments are:

  • When the export is by truck, the export information may be provided to CBP using AES at least one hour prior to departure from the U.S.; or,
  • When the shipment is by air at least two hours before any departure from the U.S.

DDTC and CBP will monitor use of the expedited procedures. Abuse by any applicant, or agent acting on behalf of an applicant, will be considered grounds for rescinding the offending person's privileges to use the emergency procedure.

Option 4 SED Filing Alternative

Effective October 18, 2004, the DDTC Direct Shipment Validation Program and the Bureau of Census Option 4 SED filing alternative for any shipments of USML articles is no longer available. All participants in the Option 4 alternative filing program must, before reporting any exports using AES, provide the original of the license to CBP. Concurrent with the filing of the license the license holder must provide CBP and DDTC Compliance a list of the licenses filed and a report of the quantity and value of the exports already made against the license.

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