Foreign Trade Statistics Regulations; Reporting the Value of Foreign Military Sales Shipments

The Bureau of the Census (Census Bureau) is amending the Foreign Trade Statistics Regulations (FTSR) by adding a section requiring exporters or their designated agents to include a foreign military sales indicator code on the Shipper's Export Declaration (SED) Form, Automated Export System (AES) Record Layout, and Automated Export Reporting Program (AERP) Record Layout. This will apply whenever a commercial exporter is shipping goods or reporting the repair of military equipment under provisions of the Foreign Military Sales (FMS) program. The Census Bureau is taking this action to assist the Bureau of Economic Analysis (BEA), Department of Commerce, in improving the accuracy and reliability of data collected on the value of exports made under the FMS program. Exports under the FMS program are a component of the U.S. balance of payments accounts and of the U.S. Gross Domestic Product (GDP). The Census Bureau is also taking this action to assist both the Census Bureau and BEA in improving the accuracy and reliability of estimates presented in the Department of Commerce's monthly release ``U.S. International Trade in Goods and Services.'' The BEA has reviewed and approved this proposed rulemaking. The Department of Treasury concurs with the provisions contained in this final rule.