Escorting classified cargo and filing the export

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1. A transfer between governments, not between companies

Classified material does not move through a commercial supply chain in the ordinary way. "Classified information or materiel approved for release to a foreign government or international organization will be executed as a government-to-government transfer" (SAMM C7.14.1). The release decision and the movement are separate steps, and the second is performed by governments.

The mechanism is narrow. "The transfer of classified materiel occurs through official government channels between authorized representatives of each government" (SAMM C7.14.1.2), or by other methods agreed in writing between the security authorities of the two governments. On the United States side that written agreement comes from the international engagement side of the technology security administration (SAMM C7.14.1.2).

2. The question asked before there is a request

The feasibility of moving the material is meant to be settled early. At the outset of negotiations, or during the phase before a formal request, the implementing agency will "consult with DoD Transportation authorities to determine whether secure shipment from the Continental United States (CONUS) point of origin to the ultimate foreign destination is feasible" (SAMM C7.14.1.1). The security staff of the agency is consulted as well, to confirm that the transport arrangements meet the prescribed standards.

Because a plan covering the whole route is required, the agency drafting the agreement carries a drafting duty with it. It will "ensure it addresses all Defense Transportation System (DTS) security procedures" that apply while the material is inside that system (SAMM C7.14.1.1). The content and review of such plans is set out in transportation plans for sensitive cargo.

3. Someone cleared has to travel with it

The default rule puts a person alongside the freight. "Classified consignments shipped as freight must be accompanied by a DoD or purchasing government escort possessing a personnel security clearance at the level of the materiel to be shipped internationally" (SAMM C7.14.1.2). The clearance has to match the material, not the carrier.

Four exceptions are listed. Movements inside the defense transportation system are exempt. So are movements on the buying government military aircraft or ships, once that government representative has formally accepted the material. A cleared freight forwarder may carry it where the forwarder provides an escort with the right clearance, approved by the counterintelligence and security agency. The fourth exception is a case by case approval by the technology security administration (SAMM C7.14.1.2). The role of the designated representative who signs for such cargo is described in export licenses and customs clearance.

4. The plan goes to the port, by email

Export of classified hardware or related technical data requires a detailed plan, and a copy of it has to reach the border agency at the loading port. "The exporter shall provide an electronic copy of the Transportation Plan to Customs and Border Protection (CBP), generally by email, at the port where the FMS materiel is being loaded on the conveyance" (SAMM C7.17.2). Where electronic reporting is not available, the instruction is to contact that port directly for instructions.

5. Filing the export, and who counts as the exporter

Every shipment is reported, whatever its classification. "Electronic Export Information (EEI) on each shipment of hardware, whether classified or unclassified, must be reported to Customs and Border Protection (CBP) using the Automated Export System (AES)" (SAMM C7.17.2). Shipments of technical data or services follow the regulation instead and cite the case identifier.

The filing duty follows the arrangement rather than the title. Where the defense transportation system carries the cargo, the entity arranging that transportation is the exporter and files. "For freight forwarder arranged shipments, the freight forwarder is the exporter and responsible for filing the EEI in AES" (SAMM C7.17.2). A buyer acting as its own forwarder therefore takes on the filing itself.

Consolidation does not simplify the paperwork. "If items from multiple FMS cases are included in the same shipment, the exporter must file a separate AES entry for each individual FMS case being decremented" (SAMM C7.17.2). Invoices and shipping documents must also carry an annotation naming the authority for the export, the case identifier, and a named United States government point of contact with a telephone number. The wording differs depending on whether the movement is inside the defense transportation system or handled by a forwarder (SAMM C7.17.2).

6. The number that has to travel with the cargo

Filing produces a receipt, and the receipt has to be on the documents. "CBP will decrement a shipment only after export information has been filed correctly using AES" (SAMM C7.17.2). The filer gives the border agency an internal transaction number, which the system generates on acceptance of the data submitted, and that number "must be included on shipment documentation" (SAMM C7.17.2).

Two deadlines apply, and they are measured differently by mode. "By air and truck, at least 8 hours prior to departure from the United States" (SAMM C7.17.2). "By sea and rail, at least 24 hours prior to loading aboard ship at the port of exit" (SAMM C7.17.2). The sea deadline runs from loading rather than from sailing, which is the earlier event.

7. Exportable value, and the shipment that gets stopped

The value that matters at the border is not the value of the case. "The exportable value is based on the net value of all hardware and software provided on specific lines in the case" (SAMM C7.17.2), and it "does not include accessorials or services" (SAMM C7.17.2). Transport charges and services on the same agreement are therefore not available to cover hardware shipped in excess.

That matters because the filing draws down a balance. A shipment not properly decremented is held until the filing is corrected, and the consequence of exceeding the balance is blunt. "Shipments in excess of the net case value are in violation of the export authorization and will be stopped and/or seized" (SAMM C7.17.2).

For anyone moving the cargo the practical points are few. Know before the case is signed whether the whole route is feasible. Know who the exporter is, because that is the party filing. Track the remaining exportable value rather than the remaining case value, and check the annotation and the transaction number before the truck leaves. Related delivery problems are covered in transportation discrepancies and returns.

Key terms

Government to government transfer	Movement of classified material through official channels between authorized representatives of two governments.
Electronic export information	The export filing made for each shipment through the automated export system.
Internal transaction number	The number the filing system generates on acceptance, which must appear on shipment documents.
Exportable value	Net value of hardware and software on specific lines, excluding accessorials and services.

Every statement above links to the document behind it. The full source list for this piece is on the sources page.

This page describes public United States government programs for general information. It is not legal, regulatory or procurement advice, and it does not address the facts of any particular case.

How Sentfore supports this

Moving sensitive cargo to a difficult destination is the problem at the delivery end. Sentfore provides secure transport, protective security, facilities and life support for defense programs in complex environments. Requirements can be sent through the contact page.