United States Government (USG)

Foreign Military Sale (FMS)

Unclassified or Classified

Letter of Offer and Acceptance (LOA) OA and subsequent LOA Amendments and LOA Modifications

Defense Transportation System (DTS) for all shipments under the LOA using USG-owned (organic) assets only

1. IA files the complete LOA at primary port. Customs and Border Protection (CBP) cannot clear shipments if LOA is not furnished so the LOA should be lodged as soon as possible after implementation.

2. IA prepares a DSP-94 at the LOA level and sends it to the primary port (same place where it sent the LOA). This should be done at the same time as the LOA is lodged. See Table C7.T10 for instructions on completing this form. For classified shipments, a copy of the Transportation Plan must also be filed with the DSP-94 and LOA.

3. The DSP-94 is valid for 2 years or until the stated value is shipped, whichever comes first.

   1. Prior to expiration of the DSP-94, the IA must determine if additional shipments will be made. If so, a new DSP-94 must be prepared and lodged to replace the expiring DSP-94. This should be done in advance of the DSP-94 expiration date to avoid export problems.
   2. If the estimated export values change prior to the DSP-94 expiration, even if the LOA has not been amended or modified, a new DSP-94 must be prepared and submitted to replace the outdated version at the primary port.

4. IA lodges a copy of any LOA Amendment or LOA Modification at the primary port (same place where it sent the basic LOA). This should be done as soon as possible after implementation of each document.

5. IA prepares a new (revised) DSP-94 for any LOA Amendment or LOA Modification that changes the value and/or quantity of defense articles (including technical data). This should be done at the same time the LOA Amendment or LOA Modification is lodged.

6. Upon completion of all authorized shipments or upon expiration of the DSP-94, whichever occurs first, Customs authorities will contact the Case Manager identified in Block 4 of the DSP-94 form to confirm that there will be no more shipments against this case. Upon confirmation, Customs authorities will forward the LOA, any LOA Amendments and LOA Modifications, and the DSP-94 to PM/DDTC for archival. If the Case Manager indicates additional shipments will be made, a new DSP-94 will be prepared and lodged as indicated in paragraph 3.

1. The DoD entity that is arranging DTS transportation must report export information on each shipment of hardware to CBP using the Automated Export System (AES). After completing the AES entries, the DoD entity must send this data electronically to the U.S. port before the export can be made (in accordance with Section 123.22 of the ITAR). Shipments of technical data or services must comply with ITAR Section 123.22(b)(3).

   Note 1: All shipments must use AES. These transactions take the place of the hardcopy Shipper’s Export Declaration (SED) form, which is no longer accepted.

   Note 2: Section “g” of the “Instructions for DSP-94” form regarding copies of the SED no longer applies.

   Note 3: If items from multiple FMS cases are included in the same shipment, the DoD entity must file a separate AES entry for each individual FMS case being used.

2. The DoD entity prints out the AES Electronic Export Information (EEI) and annotates as follows. This annotated printout must accompany the shipment.

   1. "This shipment for Organic DTS is being exported pursuant to an LOA authorizing such transfer which meets the criteria of 22 CFR 126.6(a). It covers FMS Case [insert case identification]. The USG point of contact is [insert name], commercial telephone number [insert commercial telephone number].”
   2. “The Letter of Offer and Acceptance (LOA) authorizing this transfer is lodged at [insert name of primary port where LOA was lodged].
      Note: If multiple AES EEI pages accompany the shipment (because multiple FMS cases are being cited), these statements must appear on each AES EEI page citing the applicable FMS case and port.

3. Customs will only decrement a shipment after export information has been filed correctly using AES. As part of the AES filing the DoD entity must provide the XTN (external control number) to Customs

4. An export may be made through a port other than the primary port where the LOA was lodged. The AES EEI must clearly indicate the name of the primary port where the LOA was lodged.

5. Export information for all shipments must be electronically filed in AES in accordance with the timelines established in 22 CFR 123.22(b).

   1. By air and truck, at least 8 hours prior to departure from the U.S.
   2. By sea and rail, at least 24 hours prior to loading aboard ship at the port of exit.

126.6(a)

Note: FMS shipments by DTS Organic do not require a license when all conditions of 126.6(a) can be met.

United States Government (USG)

Foreign Military Sale (FMS)

Unclassified or Classified

LOA and subsequent LOA Amendments and LOA Modifications

DTS for all shipments under the LOA using commercial resources only

1. IA files the complete LOA at primary port. CBP cannot clear shipments if LOA is not furnished so the LOA should be lodged as soon as possible after implementation.

2. IA prepares a DSP-94 at the LOA level and sends it to the primary port (same place where it sent the LOA). This should be done at the same time as the LOA is lodged. See Table C7.T10. for instructions on completing this form. For classified shipments, a copy of the Transportation Plan must also be filed with the DSP-94 and LOA.

3. The DSP-94 is valid for 2 years or until the stated value is shipped, whichever comes first.

   1. Prior to expiration of the DSP-94, the IA must determine if additional shipments will be made. If so, a new DSP-94 must be prepared and lodged to replace the expiring DSP-94. This should be done in advance of the DSP-94 expiration date to avoid export problems.
   2. If the estimated export values change prior to the DSP-94 expiration, even if the LOA has not been amended or modified, a new DSP-94 must be prepared and submitted to replace the outdated version at the primary port.

4. IA lodges a copy of any LOA Amendment or LOA Modification at the primary port (same place where it sent the basic LOA). This should be done as soon as possible after implementation of each document.

5. IA prepares a new (revised) DSP-94 for any LOA Amendment or LOA Modification that changes the value and/or quantity of defense articles (including technical data). This should be done at the same time the LOA Amendment or LOA Modification is lodged.

6. Upon completion of all authorized shipments or upon expiration of the DSP-94, whichever occurs first, Customs authorities will contact the Case Manager identified in Block 4 of the DSP-94 form to confirm that there will be no more shipments against this case. Upon confirmation, Customs authorities will forward the LOA, any LOA Amendments and LOA Modifications, and the DSP-94 to PM/DDTC for archival. If the Case Manager indicates additional shipments will be made, a new DSP-94 will be prepared and lodged as indicated in paragraph 3.

1. The DoD entity that is arranging DTS transportation must report export information on each shipment of hardware to Customs CBP using AES. After completing the AES entries, the DoD entity must send this data electronically to the U.S. port before the export can be made (in accordance with Section 123.22 of the ITAR). Shipments of technical data or services must comply with ITAR Section 123.22(b)(3).

   Note 1: All shipments must use the AES transactions. These transactions take the place of the hardcopy SE) form, which is no longer accepted.

   Note 2: Section “g” of the “Instructions for DSP-94” form regarding copies of the SED no longer applies.

   Note 3: If items from multiple FMS cases are included in the same shipment, the DoD entity must file a separate AES entry for each individual FMS case being used.

2. The DoD entity prints out the AES EEI and annotates as follows. This annotated printout must accompany the shipment.

   1. “This shipment for Commercial DTS is being exported pursuant to an LOA authorizing such transfer which meets the criteria of 22 CFR 126.6(a). It covers FMS Case [insert case identification]. The USG point of contact is [insert name], commercial telephone number [insert commercial telephone number].”
   2. “The Letter of Offer and Acceptance (LOA) authorizing this transfer is lodged at [insert name of primary port where LOA was lodged].”
      Note: If multiple AES EEI pages accompany the shipment (because multiple FMS cases are being cited), these statements must appear on each document citing the applicable FMS case and port.

3. Customs will only decrement a shipment after export information has been filed correctly using AES. As part of the AES filing the DoD entity must provide the XTN (external control number) to Customs.

4. An export may be made through a port other than the primary port where the LOA was lodged. The AES EEI must clearly indicate the name of the primary port where the LOA was lodged.

5. Export information for all shipments must be electronically filed in AES in accordance with the timelines established in 22 CFR 123.22(b).

   1. By air and truck, at least 8 hours prior to departure from the U.S.
   2. By sea and rail, at least 24 hours prior to loading aboard ship at the port of exit.

126.6(a)

Note: FMS DTS commercial-contracted shipments do not require a license when all conditions of 126.6(a) can be met.

FMS Freight Forwarder

FMS

Unclassified or Classified

LOA and subsequent LOA Amendments and LOA Modifications

FMS Freight Forwarder*

*A FMS freight forwarder is an entity under contract agreement with the foreign government to handle the movement of the foreign government’s USG-provided materiel. Freight forwarders are generally contracted to handle receipt, consolidation, and staging within the United States and arrangement for onward movement from the United States to the foreign country. Freight forwarders must be registered with the Department of State (Directorate of Defense Trade Controls) and are responsible for compliance with all International Traffic in Arms Regulation (ITAR) and Customs and Border Patrol requirements. A foreign government’s embassy must send a letter to PM/DDTC designating a company as its freight forwarder before that company will be permitted to export security assistance-related materiel on that government’s behalf.

1. IA files the complete LOA at primary port. Customs cannot clear shipments if the LOA is not furnished so the LOA should be lodged as soon as possible after implementation.

2. Foreign customer provides a copy of the LOA to its designated FMS freight forwarder(s).

3. FMS freight forwarder prepares a DSP-94 at the LOA level and submits it to the IA (through the Purchasing country, as required) for review. This should be done as soon as possible after the FMS freight forwarder receives a copy of the LOA. See Table C7.T10 for instructions on completing this form. For classified shipments, a copy of the Transportation Plan must also be filed with the DSP-94 and LOA.

4. The DSP-94 is valid for 2 years or until the stated value is shipped, whichever comes first.

   1. Prior to expiration of the DSP-94, the FMS freight forwarder must determine if additional shipments will be made. If so, a new DSP-94 must be prepared by the FMS freight forwarder, reviewed by the IA, and lodged by the FMS freight forwarder to replace the expiring DSP-94. This should be done in advance of the DSP-94 expiration to avoid export problems.
   2. If the estimated export values change prior to the DSP-94 expiration, even if the LOA has not been amended or modified, a new DSP-94 must be prepared by the FMS freight forwarder, reviewed by the IA, and lodged by the FMS freight forwarder to replace the outdated version at the primary port.

5. IA reviews the DSP-94 and any subsequent revisions/updates/ amendments to the DSP-94.

   1. If the DSP-94 appears accurate, the IA sends the DSP-94 to the primary port (same place where it sent the LOA) and sends an information copy back to the FMS freight forwarder.
   2. If the DSP-94 appears to contain errors, the IA sends the DSP-94 back to the FMS freight forwarder with necessary changes annotated and sends an information copy to PM/DDTC.

6. IA lodges a copy of any LOA Amendment or Modification at the primary port (same place where it sent the basic LOA). This should be done as soon as possible after implementation of each document.

7. Foreign customer provides a copy of implemented LOA Amendments and Modifications to its designated FMS freight forwarder(s).

8. FMS freight forwarder prepares a new (revised) DSP-94 for any LOA Amendment or Modification that changes the value and/or quantity of defense articles (including technical data) and submits the new (revised) form to the IA for review. This should be done as soon as possible after the FMS freight forwarder receives a copy of the Amendment or Modification.

9. The IA reviews the revised DSP-94 forms in accordance with procedures in paragraph 5 above.

10. Upon completion of all authorized shipments or upon expiration of the DSP-94, whichever occurs first, Customs authorities will contact the FMS freight forwarder identified in Block 4 of the DSP-94 form to confirm that there will be no more shipments against this case. Upon confirmation, Customs authorities will forward the LOA, any LOA Amendments and LOA Modifications, and the DSP-94 to PM/DDTC for archival. If the FMS freight forwarder indicates additional shipments will be made, a new DSP-94 will be prepared, reviewed, and lodged as indicated in paragraph 5.

1. The FMS freight forwarder must report export information on each shipment of hardware to CBP using AES. After completing the AES entries, the FMS freight forwarder must send this data electronically to the U.S. port before the export can be made (in accordance with Section 123.22 of the ITAR). Shipments of technical data or services must comply with ITAR Section 123.22(b)(3).

   Note 1: All shipments must use the AES transactions. These transactions take the place of the hardcopy SED form, which is no longer accepted.

   Note 2: Section “g” of the “Instructions for DSP-94” form regarding copies of the SED no longer applies.

   Note 3: If items from multiple FMS cases are included in the same shipment, the FMS freight forwarder must file a separate AES entry for each individual FMS case being used.

2. Prior to AES filing and after the FMS freight forwarder prints out the AES EEI page, the FMS freight forwarder must obtain an IA certifying signature prior to submission to AES. Copies of all related documents must be presented to CBP at the time of shipment and maintained in the FMS freight forwarder’s records in accordance with 22 CFR 123.26 and annotates it on, if authorized, the outbound manifest as follows.

   1. “This shipment is being exported pursuant to an LOA authorizing such transfer which meets the criteria of 22 CFR 126.6(c). It covers FMS Case [insert case identification]. The USG point of contact is [insert name], commercial telephone number [insert commercial telephone number].”
   2. “The Letter of Offer and Acceptance (LOA) authorizing this transfer is lodged at [insert name of primary port where LOA was lodged].”
      Note: If multiple AES EEI pages or outbound manifests accompany the shipment (because multiple FMS cases are being cited), these statements must appear on each AES EEI or outbound manifest citing the applicable FMS case and port.

3. Customs will only decrement a shipment after export information has been filed correctly using AES. As part of the AES filing the FMS freight forwarder must provide the XTN (external control number) to Customs.

4. An export may be made through a port other than the primary port where the LOA was lodged. The AES EEI must clearly indicate the name of the primary port where the LOA was lodged.

5. Export information for all shipments must be electronically filed in AES in accordance with the timelines established in 22 CFR 123.22(b).

   1. By air and truck, at least 8 hours prior to departure from the U.S.
   2. By sea and rail, at least 24 hours prior to loading aboard ship at the port of exit.

126.6(c)

Note: FMS shipments do not require a license when all conditions of 126.6(c) can be met.

• USG for some shipments
• FMS Freight Forwarder for some shipments

FMS

Unclassified or Classified

LOA and subsequent LOA Amendments and LOA Modifications

• DTS for some shipments under the LOA using USG-owned (organic) resources.
• DTS for some shipments under the LOA using commercial resources.
• FMS freight forwarder* for some shipments.

1. IA lodges the complete LOA at primary port. Customs cannot clear shipments if LOA is not furnished so the LOA should be lodged as soon as possible after implementation.

2. Foreign customer provides a copy of the LOA to its designated FMS freight forwarder(s).

3. IA prepares a DSP-94 at the LOA level and sends it to the primary port (same place where it sent the LOA). This should be done at the same time as the LOA is lodged. The IA will send a copy to the purchaser to provide to the FMS freight forwarder. See Table C7.T10. for instructions on completing this form. For classified shipments, a copy of the Transportation Plan must also be filed with the DSP-94 and LOA.

4. The DSP-94 is valid for 2 years or until the stated value is shipped, whichever comes first.

   1. Prior to expiration of the DSP-94, the IA must determine if additional shipments will be made. If so, a new DSP-94 must be prepared and lodged to replace the expiring DSP-94. The IA will send a copy of the DSP-94 to the purchaser to provide to the FMS freight forwarder. This should be done in advance of the DSP-94 expiration date to avoid export problems.
   2. If the estimated export values change prior to the DSP-94 expiration, even if the LOA has not been amended or modified, a new DSP-94 must be prepared and submitted to replace the outdated version at the primary port.

5. IA lodges a copy of any LOA Amendment or LOA Modification at the primary port (same place where it sent the basic LOA). This should be done as soon as possible after implementation of each document.

6. Foreign customer provides a copy of implemented LOA Amendments and LOA Modifications to its designated FMS freight forwarder(s).

7. IA prepares a new (revised) DSP-94 for any LOA Amendment or LOA Modification that changes the value and/or quantity of defense articles (including technical data). The IA will send a copy to the purchaser to provide to the FMS freight forwarder. This should be done at the same time the LOA Amendment or LOA Modification is lodged.

8. Upon completion of all authorized shipments or upon expiration of the DSP-94, whichever occurs first, Customs authorities will contact the Case Manager identified in Block 4 of the DSP-94 form to confirm that there will be no more shipments against this case. Upon confirmation, Customs authorities will forward the LOA, any LOA Amendments and LOA Modifications, and the DSP-94 to PM/DDTC for archival. If the Case Manager indicates additional shipments will be made, a new DSP-94 will be prepared and lodged as indicated in paragraph 4.

1. For the DTS shipments using USG-owned (organic) resources follow procedures detailed in Scenario Number 1.

2. For the DTS shipments using commercial resources follow procedures detailed in Scenario Number 2.

3. For FMS freight forwarder shipments, follow procedures detailed in Scenario Number 3.

126.6(a) (DTS Organic)

126.6(a) (DTS Commercial)

126.6(c) FMS freight forwarder

PM/DDTC has issued a registration to facilitate FMS DTS shipments. This constitutes registration with PM/DDTC as an exporter (as required by Section 122 of the ITAR). Enter G-7010 in this block to indicate that shipments will be made under DTS using USG-owned (organic) resources.

PM/DDTC has issued a registration to facilitate FMS DTS shipments. This constitutes registration with PM/DDTC as an exporter (as required by Section 122 of the ITAR). Enter G-7011 in this block to indicate that shipments will be made under DTS using DoD contracted commercial resources.

PM/ DDTC registration code provided by U.S. Department of State. Shipment by DSP-94 may only be made by a PM/DDTC registered exporter and who has been designated by the foreign government to act as their agent for FMS exports (by letter from the foreign government on file at PM/DDTC).

Enter “Multiple Sources"

Enter country name.

Enter country name.

Enter country name.

Enter country name.

Enter the name of the port most likely to be used for exports under this LOA. This should be the port where the LOA is lodged. You may enter more than one port name in this block if you know that multiple ports will be used to export items from this LOA.

Enter the name of the port most likely to be used for exports under this LOA. This should be the port where the LOA is lodged. You may enter more than one port name in this block if you know that multiple ports will be used to export items from this LOA.

Enter the name of the port most likely to be used for exports under this LOA. This should be the port where the LOA is lodged. You may enter more than one port name in this block if you know that multiple ports will be used to export items from this LOA.

Enter the name of the port most likely to be used for exports under this LOA. This should be the port where the LOA is lodged. You may enter more than one port name in this block if you know that multiple ports will be used to export items from this LOA.

Enter the IA’s name, address, zip code, and the commercial telephone number of the Case Manager.

Enter the IA’s name, address, zip code, and the commercial telephone number of the Case Manager. Also enter the name, address, zip code, and telephone number of the DoD-contracted commercial resource, if known.

Enter the FMS freight forwarder’s name, address, zip code, and commercial telephone number.

Enter the IA’s name, address, zip code, and the commercial telephone number of the Case Manager. Enter the FMS freight forwarder’s name, address, zip code, and commercial telephone number.

Enter the FMS case identifier (e.g., BN-D-ABC). Also enter the latest implemented document (e.g., LOA Amendment 1, LOA Modification 5)

Enter the FMS case identifier (e.g., BN-D-ABC). Also enter the latest implemented document (e.g., Amendment 1, Modification 5)

Enter the FMS case identifier (e.g., BN-D-ABC). Also enter the latest implemented document (e.g., Amendment 1, Modification 5)

Enter the FMS case identifier (e.g., BN-D-ABC).

Enter the date the basic FMS LOA listed in Block (5) was implemented. Implementation date from the Defense Security Assistance Management System (DSAMS) should be used.

Enter the date the basic FMS LOA listed in Block (5) was implemented. Implementation date from the Defense Security Assistance Management System (DSAMS) should be used.

Enter the date the basic FMS LOA listed in Block (5) was implemented. Implementation date from the Defense Security Assistance Management System (DSAMS) should be used.

Enter the date the basic FMS LOA listed in Block (5) was implemented. Implementation date from the Defense Security Assistance Management System (DSAMS) should be used.

Enter the total “exportable” value of defense articles. This is the value that Customs will decrement against as they clear each shipment. This may not be the total case value since not all of the FMS case value is for export. When preparing amended DSP-94s (either because the FMS case exportable value has changed or because the DSP-94 has expired and needs to be renewed for an additional 2 years), enter the current exportable value on the FMS case.

Enter the total “exportable” value of defense articles. This is the value that Customs will decrement against as they clear each shipment. This may not be the total case value since not all of the FMS case value is for export. When preparing amended DSP-94s (either because the FMS case exportable value has changed or because the DSP-94 has expired and needs to be renewed for an additional 2 years), enter the current exportable value on the FMS case.

Enter the total “exportable” value of defense articles. This is the value that Customs will decrement against as they clear each shipment. This may not be the total case value since not all of the FMS case value is for export. When preparing amended DSP-94s (either because the FMS case exportable value has changed or because the DSP-94 has expired and needs to be renewed for an additional 2 years), enter the current exportable value on the FMS case.

Enter the total “exportable” value of defense articles separated as follows:

1. DTS (using USG-owned [organic] resources):
2. DTS (using commercial resources):
3. FMS freight forwarder:

These values when added together must equal the total exportable value of the case. This is the value that Customs will decrement as they review/approve each shipment.

For initial DSP-94, enter “Not applicable.”

When amending the DSP-94, enter only the remaining “exportable” value per the latest implemented LOA document.

For initial DSP-94, enter “Not applicable.”

When amending the DSP-94, enter only the remaining “exportable” value per the latest implemented LOA document.

For initial DSP-94, enter “Not applicable.”

When amending the DSP-94 enter only the remaining “exportable” value per the latest implemented LOA document.

Enter remaining “exportable” values of defense articles separated as follows:

1. DTS (using USG-owned [organic] resources):
2. DTS (using commercial resources):
3. FMS freight forwarder:

These values when added together must equal the total exportable value of the case. This is the value that Customs will decrement as they review/approve each shipment.

Enter “Yes” or “No” as appropriate. (Amended LOA need not be attached as CBP has been furnished a copy of the amended LOA already.)

Enter “Yes” or “No” as appropriate (Amended LOA need not be attached as CBP has been furnished a copy of the amended LOA already.)

Enter “Yes” or “No” as appropriate. (Amended LOA must be attached/ furnished to CBP at time of export.)

Enter “Yes” or “No” as appropriate

Enter “Not applicable.”

Enter “Not applicable.”

FMS freight forwarder fills in foreign government official knowledgeable about the details of the FMS transaction.

Enter U.S. Military Department (Case Manager) & Service Transportation Office Points of Contact (Include Name, Title, Commercial Phone and Fax Number and unclassified email for each POC)

Fill in FMS freight forwarder portion name as provided by the FMS customer.

Fill in foreign government official knowledgeable about the details of the FMS transaction (provided by the FMS customer).

Check one or more USML Categories to be shipped via the listed LOA.

Check one or more USML Categories to be shipped via the listed LOA.

Check one or more USML Categories to be shipped via the listed LOA.

Check one or more USML Categories to be shipped via the listed LOA.

Includes name and signature of the empowered USG individual occupying an IA position, which has been designated by the IA as authorized to sign FMS cases on behalf of the USG and date signed.

Includes name and signature of the empowered USG individual occupying an IA position, which has been designated by the IA, as authorized to sign FMS cases on behalf of the USG and date signed.

Enter name and signature of empowered FMS freight forwarder official and date signed.

IA review and sign DSP-94 in the comments section.

Enter the IA’s name, address, zip code, and the commercial telephone number of the Case Manager. Includes signature of listed USG individual and date signed (MM-DD-YYYY)

Also enter the FMS freight forwarder’s name and POC for this DSP-94.

The IA and the FMS freight forwarder must provide an original signed and dated DSP-94 to CBP prior to the first shipment.

*For use when an LOA includes more than one transportation/shipment method.

“Pursuant to 22 CFR 126.6(c), District Directors of Customs are authorized to permit the export of unclassified defense articles, and technical data without a license if they were sold by the Department of Defense directly to foreign governments or international organizations under the Foreign Military Sales (FMS) program of the Arms Export Control Act. This procedure may be used only if a proposed export is (1) pursuant to an executed Letter of Offer and Acceptance, and (2) accompanied by a properly executed DSP-94 and Shipper’s Export Declaration (Form 7525-V).”

Form 7525-V (SED) has been replaced by the Automated Export System (AES) Electronic Export Information (EEI). All shipments must use the AES to prepare the EEI. These transactions take the place of the hardcopy SED form, which is no longer accepted by CBP.

Note: State/PM/DDTC has issued an advisory indicating the DSP-94 can be used for classified exports so long as the criteria under ITAR Section 126.6(c)(iii) is met.

“Only foreign diplomatic missions or their authorized agents or FMS freight forwarders who are registered with the Directorate of Defense Trade Controls, U.S. Department of State, may export FMS material under this authority.”

For FMS-related shipments made through DTS, (PMDDTC) has issued two registration codes to facilitate FMS DTS shipments when using a DSP-94. This constitutes registration with DDTC as an exporter (as required by the International Traffic in Arms Regulation - ITAR - 22 CFR 122). See Table C7.T10. for instructions on using these codes.

FMS freight forwarders must for reasons of legal accountability:

1. Register with the Directorate of Defense Trade Controls pursuant to 22 CFR 122; Have on file at the Directorate of Defense Trade Controls a letter from the foreign embassy or government appointing them as forwarding agent; and

2. Have on file at the Directorate of Defense Trade Controls a statement signed by a responsible representative of the firm, certifying that the articles shown on all Forms DSP-94 they submit are, from their personal knowledge, in fact the articles by quantity, type, and value to be exported, and assuming full responsibility for compliance with the International Traffic in Arms Regulation (22 CFR 120-130).”

FMS-related shipments using DTS will not have a FMS freight forwarder. The DSP-94 form is used for DTS shipments. PM/DDTC has issued registration codes for use on DTS shipments. See Table C7.T9. for instructions on using these codes.

“A separate Form DSP-94 must be completed for each FMS case for which defense articles are to be exported under this authority.”

Form 7525-V (SED) has been replaced by the Automated Export System (AES) Shipper’s Electronic Export Information (EEI). All shipments must use AES to prepare the EEI. These transactions take the place of the hardcopy Shippers Export Declaration, which is no longer accepted by Customs.

AES printout of the EEI is prepared for each shipment made against the DSP-94.

If all shipments have not been made during the 2 year validity period, a new DSP-94 form must be completed and filed with the District Director of Customs. See Table C7.T9. for instructions on who completes the DSP-94 form, timeframes for completion, and submission channels.

Table C7.T10. provides block-by-block instructions for completing the DSP-94 form including information on how to compute the values in Block 8.

“Form DSP-94 should be typewritten. All copies must be legible. Complete all items. Sign and date all three copies.”

NOTE: A fillable version is available at: http://www.pmddtc.state.gov/licensing/documents/DSP_94.pdf

“Form DSP-94 shall be valid for 2 years from the date on which it is executed (see item 12). The DSP-94 must be completed and filed with the District Director of Customs along with a copy of the Letter of Offer and Acceptance, and annotated Shipper’s Export Declaration. Item 8 must be completed to reflect all FMS cases for which a DSP-94 has previously been filed with the District Director of Customs for shipments under the same FMS case (If Block 8 is not applicable, insert “N/A/”).”

“Copy 1 of completed Form DSP-94, together with one copy of the corresponding authenticated Letter of Offer and Acceptance, and three copies of the annotated Form No.7525-V (Shipper’s Export Declaration), must be filed with the District Director of Customs at the port of export prior to actual shipment.”

Form 7525-V (SED) has been replaced by the AES EEI. All shipments must use AES to prepare the EEI. These transactions take the place of the hardcopy SED form, which is no longer accepted by Customs.

The DSP-94 form is filed at the LOA level and is not provided with each individual shipment. Instead, information on where the DSP-94 form is lodged must be annotated on the AES EEI page printout submitted with each shipment. See Table C7.T10. for complete instructions on what documents must be submitted at the LOA-level and what documents must be submitted with each individual shipment.

“An authenticated Letter of Offer and Acceptance is one on which:

1. The offer is signed by an authorized Department of Defense representative and countersigned by the Comptroller, Defense Security Cooperation Agency (DSCA);”

NOTE: The form has not been updated. Comptroller, Defense Security Assistance Agency (DSAA) is the old name for the Business Operations Directorate, DSCA.

Not all LOAs and LOA Amendments require DSCA countersignature. Documents which do not require countersignature include a statement on the signature line indicating the exception.

2. The acceptance is signed by an authorized representative of the foreign government.

Only copies of the first page of the Letter of Offer and Acceptance and those pages listing defense articles to be exported need to be provided to Customs.”

The LOA (and any subsequent LOA Amendments or LOA Modifications) are lodged at the primary port and are not provided with each individual shipment. The complete LOA must be lodged-not just those pages listing articles/services to be provided.

“Form No. 7525-V (Shipper’s Export Declaration) must be annotated by the exporter as follows:

‘This shipment is being exported under the authority of U.S. Department of State Form DSP-94. It covers FMS case (insert FMS case identification), 22 CFR 126.6 applicable.’”

See Table C7.T9. for instructions on what must be annotated on the AES EEI page that is printed and included with each shipment

“Customs authorities will authenticate the Shipper’s Export Declaration and forward it to the Directorate of Defense Trade Controls. Three copies of an annotated Shipper’s Export Declaration must be filed for each subsequent shipment. Customs authorities will annotate the back of Copy 1 of DSP-94 to show the shipments made. Upon completion of all authorized shipments or upon expiration of the Form DSP-94, whichever occurs first, Custom (sic) authorities will forward it with the attached Letter of Offer and Acceptance to the Directorate of Defense Trade Controls.”

Only one (1) copy of the annotated AES EEI page is required to accompany the shipment.

“Copy 2 of the completed DSP-94 should be removed by the exporter and sent at the time of the first shipment, together with a copy of the applicable authenticated Letter of Offer and Acceptance to: Directorate of Defense Trade Controls, PM/DDTC, Suite H1200, SA-1, U.S. Department of State, Washington, DC 20522-0112”

If the applicable FMS case is amended to increase (or decrease) either the quantity of defense articles sold or to increase (or decrease) the total estimated exportable value, a new DSP-94 must be completed and filed with the District Director of Customs at the same primary port where the initial DSP-94 was sent.

If the estimated export values change, even if the LOA has not been amended or modified, a new DSP-94 must be prepared (by the appropriate party) and submitted to the District Director of Customs at same primary port where the initial DSP-94 was sent.

See Table C7.T10. for guidance on DSP-94 revisions.

“Copy 3 of DSP-94 is for the shipper’s files and should be removed before submission. A copy of applicable Letter of Offer and Acceptance should also be retained by the shipper for reference and record keeping purposes (22 CFR 122.5).”

“A new DSP-94 must be completed and filed with the District Director of Customs if the applicable FMS case is amended to increase the total estimated exportable value by more than 10 percent. (Note: 22 CFR 123.23 authorized District Directors of Customs to permit the shipment of defense articles when the total value of the ex port does not exceed the aggregate monetary value stated on a license by more than 10 percent). Amendments which decrease the quantity or value of an FMS case do not require a new Form DSP-94.”

“Additional copies of this form may be obtained by mail or telephone request to the Directorate of Defense Trade Controls.”

The DSP-94 form is not available in electronic format. Implementing Agencies must contact PM/DDTC to obtain hard copies for completion.

General Information:

• Office Hours: 8:15 AM - 5:00 PM
• Receptionist: (202) 663-2980
• Response Team (for general inquiries about and guidance on licensing and compliance matters): (202) 663-1282
• E-mail: DDTCResponseTeam@state.gov
• Case Status: (202) 663-2700

Additional information may be found at: http://pmdtc.org/Default.htm