1
Department of Defense
INSTRUCTION
NUMBER 1330.21
July 14, 2005
PDUSD(P&R)
SUBJECT: Armed Services Exchange Regulations
References: (a) DoD Instruction 1330.21 “Armed Services Exchange Regulations,”
February 4, 2003 (hereby canceled)
(b) DoD Directive 1330.9, "Armed Services Exchange Policy," November
27, 2002
(c) DoD Directive 1125.3, "Vending Facility Program for the Blind on
Federal Property," April 7, 1978
(d) DoD Directive 1015.14, "Establishment, Management, and Control of
Nonappropriated fund Instrumentalities and Financial Management of
Supporting Resources" July 16, 2003
(e) through (ab), see enclosure 1
1. PURPOSE
This Instruction reissues reference (a), implements reference (b), prescribes procedures,
and assigns responsibilities for operating Armed Services Exchanges.
2. APPLICABILITY AND SCOPE
This Instruction applies to:
2.1. The Office of the Secretary of Defense, the Military Departments, the Chairman
of the Joint Chiefs of Staff, the Combatant Commands, the Office of Inspector General of
the Department of Defense, the Defense Agencies, the DoD Field Activities, and all other
organizational entities in the Department of Defense (hereafter referred to collectively as
the "DoD Components").
2.2. The Commissioned Corps of the Public Health Service and the National Oceanic
and Atmospheric Administration (NOAA) under agreements with the Departments of
Health and Human Services and the Department of Commerce. The term "Armed
Services," as used herein, refers to the Army, the Navy, the Air Force, the Marine Corps,
and the Coast Guard.
DoDI 1330.21, July 14, 2005
2
3. DEFINITIONS
Terms used in this Instruction are defined in enclosure 2.
4. POLICY
DoD policy for the Armed Service Exchanges is contained in reference (b).
5. RESPONSIBILITIES
5.1. The Principal Deputy Under Secretary of Defense for Personnel and Readiness
(PDUSD (P&R)), under the Under Secretary of Defense for Personnel and Readiness
,
shall:
5.1.1. Serve as the principal point of contact for all Armed Services Exchange
policy matters in the Department of Defense.
5.1.2. Develop uniform DoD policy and guidance to ensure proper administration
and management of Armed Services Exchange programs and monitor compliance
thereof.
5.2. The Secretaries of the Military Departments
or their designees shall comply with
this Instruction.
6. PROCEDURES
6.1. Armed Service Exchange Programs
. Other Federal Departments, Agencies, and
instrumentalities shall obtain, in advance, written right of first refusal from the Armed
Services Exchange before beginning to operate or contract on military installations and
Government-owned or -leased military housing areas, for the programs designated for the
Armed Services exchanges listed at subparagraph E3.1.1.1. of enclosure 3. Exchanges
support forward deployments, ships at sea, emergency and disaster relief efforts,
international exercises, and contingency operations. Resale activities of blind vendors
are governed by DoD Directive 1125.3 (reference (c)).
6.2. Merchandise Restrictions
. The Armed Services Exchanges are authorized to sell
items of merchandise and offer retail services to provide a well-rounded program, except
as restricted in enclosure 4. Merchandise restrictions apply to direct sales, including by
special order catalog or e-commerce, and to indirect or concession activities.
DoDI 1330.21, July 14, 2005
3
6.3. Alcoholic Beverages Minimum Drinking Age
. The Secretary of the Military
Department concerned shall establish and enforce the minimum age for consumption and
purchase of alcoholic beverages established by the law of the State in which the military
installation is located. If a military installation is located in more than one State or a
State but within 50 miles of another State, Mexico or Canada, the Secretary concerned
may establish and enforce the lowest applicable age as the minimum drinking age on that
military installation. The Armed Service Exchanges shall follow the minimum drinking
age regulations for each military installation. Enclosure 5 establishes procedures for the
sale of package alcoholic beverages.
6.4. Sale of Tobacco
.
6.4.1. Military retail outlets shall not enter into any new merchandise display or
promotion agreements, or exercise any options in existing agreements, that provide for an
increase in total tobacco shelf-space. This provision does not prohibit couponing, or
incentives that allocate tobacco shelf-space among brands so long as total tobacco shelf-
space is not increased. Self-service promotional displays shall not be used outside of the
tobacco department. Incentives to increase the total number of tobacco displays shall not
be accepted, except to reallocate existing tobacco shelf-space among tobacco brands, if
the total amount of tobacco shelf-space is not increased. Promotional practices for
tobacco products shall reflect general commercial practices and shall not include
“military only” coupons or other promotions unique to the military or military resale
system.
6.4.2. Tobacco (including smokeless tobacco) shall not be sold to anyone less
than 18 years of age. A customer's ID shall be checked if his or her age is not known to
be over 18, and appears to be under 27.
6.4.3. Armed Service Exchanges shall endeavor to display tobacco cessation
products in areas that provide visibility and opportunity to customers who desire to
change their tobacco habits.
6.5. Authorized Patrons
. Only authorized patrons are entitled to exchange privileges
as prescribed in enclosure 6 of this Instruction, except when prohibited by treaty or other
international agreements in foreign countries. Patrons shall be identified under enclosure
7.
6.5.1. Sales of State Tax-Free Tobacco Products and Alcoholic Beverages
. State
tax-free tobacco products and alcoholic beverages shall be sold only to those individuals,
organizations, and activities entitled to unlimited exchange privileges. Common sense
must be used in determining that the quantities of state tax-free tobacco products and
alcoholic beverages sold are reasonable and for the use of authorized exchange patrons.
6.5.2. Sales to Appropriated Fund (APF) Activities Authorized
. Exchanges are
authorized to supply items within normal stock assortment to components, agencies,
DoDI 1330.21, July 14, 2005
4
instrumentalities and other activities or units within the Department of Defense and to
accept APF in payment, including the Government-wide purchase card. Such sales shall
be advantageous of the exchange and purchasing activity.
6.5.3. The Secretaries of the Military Departments may grant deviations with
regard to authorized patron privileges for individuals or classes/groups of persons at
specific installations. Delegation of this authority outside the Secretariat concerned is
prohibited. Deviations may be granted, when based on alleviating individual hardships.
Deviations granted by the Secretaries of the Military Departments shall be reviewed
annually as of June 30 and a report shall be submitted to the PDUSD (P&R) specifying
the exceptions and their justifications (Report Control Symbol DD-P&R(A)1096).
6.6. Purchase Restrictions
. By August 1
st
of each year, each Commander of a
Combatant Command, through the Chairman, Joint Chiefs of Staff, shall submit to the
PDUSD(P&R) an annual report describing changes to the host-nation laws and the treaty
obligations of the United States, and the conditions within host nations, that require the
use of new quantity or other restrictions on purchases in commissary and exchange stores
located outside the United States. Negative reports are required. If there are changes, the
PDUSD (P&R) shall notify Congress within 120 days of receipt of the reports.
6.7. Best Business Practices
. Exchange programs shall use best business practices to
fulfill customer needs, while maintaining a readiness capability to support wartime
missions and to meet quality, fiscal, health, and safety standards. The exchange
organizations shall ensure that short- and long-term plans are established and maintained.
6.8. Exchange Operations on Closed Installations
. Exchange operations on closed
installations shall follow the procedures in enclosure 8 of this Instruction.
6.9. Methods of Operation - Direct or by Concession
. Unless addressed specifically
by contract, a contractor or concessionaire of exchange services that sells or provides
authorized exchange service products or services is entitled to the same level of APF
support authorized for the applicable exchange service program in enclosure 9 of this
Instruction. The APF shall be used strictly on the exchange service program.
6.10. Resource Management
. Exchange program resource elements that are
authorized APF support are found in enclosure 9 and DoD Directive 1015.14 (reference
(d)).
6.10.1. Reporting of Violations
. The Department of Defense encourages the
reporting of suspected violations of rules, regulations, or law at the lowest organization
level possible. However, reports may be made to senior management, organizational
inspectors general, or to the DoD Hotline. The Commanders are responsible for prompt
detection, proper investigation, and appropriate corrective action. Individuals reporting
violations are protected from reprisal. Reference (e) is applicable to nonappropriated
DoDI 1330.21, July 14, 2005
5
fund (NAF) employees and employers and contains protections and responsibilities in
NAF whistleblower cases in accordance with reference (f).
6.10.2. Penalties for Violations
. The Commanders shall take appropriate action
against personnel responsible for violations of rules, regulations, or law. Where there is a
serious criminal infraction, commanders shall refer the matter to the appropriate Defense
criminal investigative organization for investigation and potential referral to judicial
authorities. Under Section 2783b of title 10, United States Code (U.S.C.) (reference (g)),
penalties for substantial violations of regulations governing the management and use of
NAF by civilian NAF employees shall be the same as provided by law for the misuse of
appropriations by civilian employees of the Department of Defense paid from APF.
Violations by personnel subject to the Uniform Code of Military Justice shall be subject
to appropriate disciplinary or administrative action.
6.11. Credit Programs
. A credit program shall be administered in accordance with
established business practices and industry standards. Credit limits shall be adjusted
periodically using standard industry practices. The exchange services shall include an
overview report that comments on the financial status of their credit programs as part of
their annual year-end certified financial audit. The exchange services shall also maintain
a Standard and Poor's rating. The exchange services shall initiate credit checks with
civilian credit bureaus on all new accounts and shall provide both good and bad credit
reports to the credit bureaus.
6.11.1. The Secretaries of the Military Departments may authorize the types of
merchandise or services for sale on a deferred payment basis for which no finance or
interest is charged within the following parameters:
6.11.1.1. Articles necessary for the health, comfort, or convenience of
recruits, officer candidates, re-enlistees, prisoners, or detained personnel. Payment shall
be made within 30 days.
6.11.1.2. Military Uniforms and Accessories
. The liability of any individual
shall not exceed the initial cost of the uniform requirement, to be paid in not more than 12
monthly installments.
6.11.1.3. Articles or services delivered or provided to private on-base
quarters, such as milk or bread deliveries. Billing and payment shall be monthly.
6.11.1.4. Sales to other authorized Government Agencies or
instrumentalities. Billing and payment shall be made on normal commercial terms of
trade.
6.11.1.5. The Secretaries of the Military Departments may authorize other
types of merchandise or services for sale for which no finance or interest is charged for a
period not to exceed 6 months.
DoDI 1330.21, July 14, 2005
6
6.11.2. Exchanges shall accept the Government-wide purchase card in activities
where personal credit cards or other purchase cards are accommodated. Exchanges shall
use the Government-wide purchase card or other commercial credit cards for goods and
services procured with NAF valued at or below $2,500 when appropriate and cost
effective.
6.11.3. A standard customer satisfaction index shall report customer satisfaction
levels for the individual exchanges and compare the three exchange services worldwide.
6.11.4. The exchanges shall jointly conduct an annual, standardized market-
basket price survey to measure customer savings by comparing the costs of like products
in the civilian sector in the United States.
6.12. Federal Retailers Excise Tax
. The Federal Retailers Excise Tax shall be
included in the sales price of all merchandise subject to this tax.
6.13. Pricing of Smoking Cessation Products
. The Military Departments shall
support the pricing of smoking cessation products below the local competitive price.
6.14. Merchandise Support.
Exchange merchandise categories for tobacco products
may be consigned and sold in commissary stores as exchange items.
6.15. Joint Construction.
Whenever practical, new commissaries and exchanges
shall be built as joint projects and collocated.
6.16. Advertising
. Armed Services Exchange advertising shall conform to enclosure
10 of this Instruction.
7. INFORMATION REQUIREMENTS
7.1. The annual "Military Exchange Deviation Report" required by subparagraph
6.5.3. has been assigned Report Control Symbol DD-P&R(A)1096 in accordance with
8910.1-M (reference (h)).
7.2. The annual "Overseas Commissaries and Exchange Stores-Access and Purchase
Restrictions Report" referred to at paragraph 6.6. has been assigned Report Control
Symbol DD-P&R(A&AR)2150 in accordance with reference (h).
7.3. Reporting of violations described in subparagraph 6.10.1. are exempt from
licensing in accordance with paragraph C4.4.2. of reference (h).
7.4 Inclusion of comments on the exchange services' credit programs referred to in
paragraph 6.11. is part of the "Morale, Welfare and Recreation (MWR) Activities
Financial Management Report." This annual report has been assigned Report Control
Symbol DD-P&R(A)1344 in accordance with reference (h).
DoDI 1330.21, July 14, 2005
7
7.5. The annual "DoD Commissary Operations Report" referred to in enclosure 8,
paragraph E8.1.6, has been assigned Report Control Symbol DD-P&R(A)1187 in
accordance with reference (h).
8. EFFECTIVE DATE.
This Instruction is effective immediately.
Enclosures - 10
E1. References, continued
E2. Definitions
E3. Exchange Resale Activities
E4. Merchandise Restrictions
E5. Alcoholic Beverages Operations
E6. Authorized Patrons
E7. Identification of Authorized Patrons
E8. Exchange Operations on Closed Installations
E9. Exchange Resource Elements Authorized Appropriated Fund (APF) Support
E10. Exchange Advertising Policy
DoDI 1330.21, July 14, 2005
8 ENCLOSURE 1
E1. ENCLOSURE 1
REFERENCES
, continued
(e) DoD Directive 1401.3, "Reprisal Protection for Nonappropriated Fund Instrumentality
Employees/Applicants," October 16, 2001
(f) DoD 7000.14-R, "DoD Financial Management Regulation," Volume 13, "Nonappropriated
Funds Policy and Procedures," August 2002
(g) Section 2783 of title 10, United States Code
(h) DoD 8910.1-M, “DoD Procedures for Management of Information Requirements," June 30,
1998
(i) DoD Directive 1015.2, "Military Morale, Welfare and Recreation (MWR)," June 14, 1995
(j) DoD Instruction 1015.15, “Procedures for Establishment, Management, and Control of
Nonappropriated Fund Instrumentalities and Financial Management of Supporting
Resources,” July 16, 2003
(k) Section 12301-12302 of title 10, United States Code
(l) Section 1101 of title 38, United States Code
(m) Section 1163a-1 of title 33, United States Code
(n) DoD Instruction 4105.70, "Sale or Rental of Sexually Explicit Material on DoD Property,"
June 29, 1998
(o) DoD Instruction 7700.18, "Commissary Surcharge, Nonappropriated Fund (NAF) and
Privately-Financed Construction Reporting Procedures," July 16, 2003
(p) Section 6374 of title 42, United States Code
(q) Section 7586 of title 42, United States Code
(r) Executive Order 13149, “Greening the Government through Federal Fleet and Transportation
Efficiency,” July 2000
(s) Section 548 of title 47, United States Code
(t) DoD Directive 1010.4, "Drug and Alcohol Abuse by DoD Personnel," September 3, 1997
(u) Section 213 of title 27, United States Code
(v) Section 2489 of title 10, United States Code
(w) Section 2482 of title 10, United States Code
(x) Section 1059 of title 10, United States Code
(y) DoD Instruction 1000.13, "Identification (ID) Cards for Members of the Uniformed
Services, Their Dependents, and Other Eligible Individuals," December 5, 1997
(z) Section 2490a of title 10, United States Code
(aa) DoD Directive 1330.17, "Military Commissaries," March 13, 1987
(ab) DoD Audit of Nonappropriated Fund Instrumentalities And Related Activities,”
January 16, 2004
(ac) DoD Instruction 5120.4, "Department of Defense Newspapers, Magazines, and Civilian
Enterprise Publications," June 16, 1997
DoDI 1330.21, July 14, 2005
9 ENCLOSURE 2
E2. ENCLOSURE 2
DEFINITIONS
E2.1.1. Alcoholic Beverages
. Beverages containing alcohol including wines, malt
beverages and distilled spirits.
E2.1.2. Appropriated Funds
(APF). See section 010103 of Volume 13, Chapter 1 of
reference (f).
E2.1.3. Authorized Family Member
. An individual whose relationship to the sponsor
leads to entitlement, benefits, or privileges administered by the Uniformed Services.
Family members include:
E2.1.3.1. Dependent Children 21 or Over
. Children, including adopted children,
stepchildren, and wards, who are 21 years of age or older, unmarried, and dependent
upon the sponsor for over half of their support and either:
E2.1.3.1.1. Incapable of self-support because of a mental or physical
handicap; or
E2.1.3.1.2. Have not passed their 23
rd
birthday and are enrolled in a full-time
course of study at an institution of higher education.
E2.1.3.2. Dependent Children Under 21
. Unmarried children under 21 years of
age, including pre-adoptive children, adopted children, stepchildren, foster children, and
wards dependent on the sponsor for over half of their support.
E2.1.3.3. Lawful Spouse
. If separated, a dependent spouse retains privileges
until a final divorce decree is issued.
E2.1.3.4. Orphans
. Surviving unmarried children of a deceased Uniformed
Service member or retired member of a Uniformed Service, who are either adopted or
natural born and under the age of 21, or who are over 21 and incapable of self-support; or
under 23 and enrolled in a full-time course of study. The surviving children must have
been dependents under the definitions in subparagraph E2.1.3. at the time of the death of
the parent or parents.
E2.1.3.5. Parents
. Father, mother, stepparent, parent by adoption, and parents-in-
law, who depend on the sponsor for over half of their support. The surviving dependent
parents of a member of the Armed Services who dies while on active duty are included.
E2.1.3.6. Surviving Family Member
. Children or parents of a sponsor who are
dependent on the surviving spouse for over half their support.
DoDI 1330.21, July 14, 2005
ENCLOSURE 2
10
E2.1.3.7. Surviving Spouse
. A widow or widower of a sponsor who has not
remarried or who, if remarried, has reverted through divorce, annulment, or the demise of
the spouse, to an unmarried status.
E2.1.3.8. Unmarried Children.
Unmarried children, including pre-adoptive
children, adopted children, stepchildren, foster children, and wards not having passed
their 23
rd
birthday and enrolled in a full-time course of study at an institution of higher
education and dependent on the sponsor for over half of their support.
E2.1.3.9. Unremarried Former Spouse
. An unremarried former spouse of a
member or former member of the Uniformed Services, who (on the date of the final
decree of divorce, dissolution, or annulment) had been married to the member or former
member for a period of at least 20 years during which period the member or former
member performed at least 20 years of service creditable for retired or retainer pay, or
equivalent pay.
E2.1.4. Continental United States
(CONUS). The 48 contiguous States and the
District of Columbia.
E2.1.5. Exchange Employees
. Civilian employees of the military exchange systems.
E2.1.6. Executive Control and Essential Command Supervision
(ECECS). Those
managerial staff functions and positions located above the direct program managerial and
operational level of individual Morale, Welfare and Recreation (MWR) programs that
support planning, organizing, directing, coordinating, and controlling the overall
operations of MWR programs. ECECS consists of program, fiscal, logistical, and other
managerial functions that are required to ensure oversight.
E2.1.7. Military Departments
. The Department of the Army, the Department of the
Navy, and the Department of the Air Force.
E2.1.8. Military Morale, Welfare, and Recreation (MWR Programs
. The military
programs defined in DoD Directive 1015.2 (reference (i)).
E2.1.9. Nonappropriated Funds
(NAF). See section E2.1. of DoD Instruction
1015.15 (reference (j)).
E2.1.10. Nonappropriated Fund Instrumentality
(NAFI). See section E2.1. of
reference (j).
E2.1.11. Outside the Continental United States
(OCONUS). Areas other than the 48
contiguous states and the District of Columbia. Includes Alaska, Hawaii, Puerto Rico,
Guam, the Commonwealth of the Northern Mariana Islands, and the U.S. territories and
possessions.
DoDI 1330.21, July 14, 2005
ENCLOSURE 2
11
E2.1.12. Official DoD Web Site
. A DoD web site that is developed and maintained
by a command for which a DoD Component (a subordinate organization or an individual)
exercises editorial control over content. The content of official DoD web sites presents
the official position of the DoD Components. Content may include official news
releases, installation history, command position papers, etc. Official DoD Web sites are
prohibited from displaying sponsorships or commercial advertisements.
E2.1.13. Overseas
. Areas other than the 50 states and the District of Columbia.
E2.1.14. Reserve Components.
The Army National Guard and the Air National
Guard of the United States, the Army Reserve, the Naval Reserve, the Air Force Reserve,
the Marine Corps Reserve, the Coast Guard Reserve, and Reserve Officers of the Public
Health Service. The Ready Reserve is comprised of military members of the Reserve and
National Guard, organized in units, or as individuals, liable for recall to active duty to
augment the active components in times of war or national emergency under sections
12301(a) and 12302 of title 10 U.S.C. (reference (k)). The Ready Reserve consists of
three Reserve component subcategories: the Selected Reserve, the Individual Ready
Reserve, and the Inactive National Guard.
E2.1.15. Retired Personnel
. All personnel carried on the official retired lists (Active
and Reserve) of the Uniformed Services, who are retired with pay, granted retirement pay
for physical disability, or entitled to retirement pay whether or not such pay is waived, or
pending due to age requirement.
E2.1.15.1. Members of the Retired Reserve who are eligible for retired pay at age
60, but have not yet reached age 60.
E2.1.15.2. Personnel on the emergency officers' retired list of the Army, the
Navy, the Air Force, and the Marine Corps who retired under 38 U.S.C., (reference (l)).
E2.1.15.3. Officers, crews of vessels, light keepers, and depot keepers of the
former Lighthouse Service who retired under 33 U.S.C. (reference (m)).
E2.1.15.4. Retired noncommissioned ships' officers and crewmembers of the
NOAA and its predecessors, who either were on active duty as a vessel employee on July
19, 1963, and whose employment as such vessel employee was continuous from that date
until the date of retirement, or who had retired as a vessel employee on or before July 19,
1963.
E2.1.16. Sponsor
. An individual who is entitled to exchange benefits and privileges
and from whom others become entitled.
E2.1.17. Uniformed Personnel
. Members of the Armed Services, the Coast Guard;
cadets and midshipmen of the Armed Forces Service Academies, the Coast Guard
DoDI 1330.21, July 14, 2005
ENCLOSURE 2
12
Academy, Commissioned Corps of NOAA and its predecessors, Commissioned Corps of
the Public Health Service, and members of the Reserve components.
E2.1.18. Uniformed Services
. The Armed Services, the Commissioned Corps of the
National Oceanic and Atmospheric Administration, and the Commissioned Corps of the
Public Health Service.
E2.1.19. United States
. The 50 states and the District of Columbia.
E2.1.20. Unofficial DoD Web Site
. A DoD web site that is developed and
maintained with NAF. The content of unofficial DoD web sites is not endorsed as the
official position of the DoD Components. Content may, but does not usually, include
official news releases, installation history, command position papers, etc. Unofficial
DoD web sites may include commercial advertisements and may be used to advertise
products for sale, in accordance with the mission of the organization. In most cases,
unofficial DoD web sites are developed and maintained by NAFIs, including military
exchanges and MWR activities that use NAF.
DoDI 1330.21, July 14, 2005
13 ENCLOSURE 3
E3. ENCLOSURE 3
EXCHANGE RESALE ACTIVITIES
E3.1. GENERAL ACTIVITIES
E3.1.1. Exchanges are authorized to operate the following revenue generating
activities:
E3.1.1.1 Retail stores.
E3.1.1.2. Mail order, catalog, and ecommerce services.
E3.1.1.3. Automobile garages and service stations.
E3.1.1.4. Name brand fast food outlets (restaurants, cafeterias, and snack bars),
including nationally recognized franchises.
E3.1.1.5. Packaged beverage stores.
E3.1.1.6. Barber and beauty shops.
E3.1.1.7. Flower shops.
E3.1.1.8. Laundries, dry cleaning, and pressing.
E3.1.1.9. Tailor shops.
E3.1.1.10. Watch repair shops.
E3.1.1.11. Radio, television, computer, and electronic repair shops.
E3.1.1.12. Shoe repair shops.
E3.1.1.13. Photographic studios.
E3.1.1.14. Vending machines.
E3.1.1.15. Taxicab and bus services.
E3.1.1.16. Personal services.
E3.1.1.17. Newsstands.
E3.1.1.18. Pay telephone stations, telephone calling centers, and personal
telecommunication services.
DoDI 1330.21, July 14, 2005
ENCLOSURE 3
14
E3.1.1.19. Military Clothing Sales Operations.
E3.1.1.20. School Lunch Programs.
E3.1.1.21. Exchange Credit Programs.
E3.1.1.22. Tax Preparation Services.
E3.1.1.23. Exchange Marts.
E3.1.1.24. The Secretaries of the Military Departments may prescribe in their
regulations a selection of food and beverages, including malt beverages, wines, and other
alcoholic beverages. Food items shall supplement the primary full-line grocery service
provided by the commissary system.
E3.1.1.2. The Secretaries of the Military Departments may authorize the exchanges
to operate the following activities:
E3.1.1.2.1. Membership clubs (open messes), restaurants, cafeterias, and snack
bars.
E3.1.1.2.2. Lodging, including Permanent Change of Station (PCS), guest houses
and hostess houses.
E3.1.1.2.3. Amusement machines.
E3.1.1.2.4. Recreational, social, and family support activities.
E3.1.1.2.5. Pet Shops
E3.2. STOCKAGE AND SALE OF ITEMS
The Secretaries of the Military Departments shall determine items to be stocked or sold
OCONUS. Within the CONUS, the exchanges shall determine the items to be stocked or
sold, provided such items are not otherwise restricted.
E3.3. AUTHORIZED ACTIVITIES WITH SPECIAL REQUIREMENTS
E3.3.1. Fresh Meat and Produce Departments
. The Secretary of the Military
Department concerned may specifically authorize the sale of fresh meat, fresh poultry,
fresh seafood, fresh fruit, and produce when no commissary store is available on the
installation or when fresh meat and produce is not available within a reasonable distance
DoDI 1330.21, July 14, 2005
ENCLOSURE 3
15
at a reasonable price, or in satisfactory quality and quantity. Other necessary grocery
items may be sold without limitation in the number of items or container size.
E3.3.2. Mini-Storage Facilities
. Proposals for individual activities must be submitted
60 days in advance to the PDUSD(P&R) for Congressional notification prior to approval.
E3.3.3. Medical and Dental Services including Pharmacies
. Medical services
include, but are not limited to, dental, optometry, audiology, and pharmacy activities.
E3.3.3.1. Proposals for medical services at specific locations must be
submitted 60 days in advance to PDUSD(P&R) for
Congressional notification. The
PDUSD(P&R) must approve the offering of new medical and dental services and shall
notify Congress of such approval. Congressional notification and PDUSD(P&R)
approval must be obtained before exchanges initiate construction or contract action,
including entering into any license agreement with private practioners.
E3.3.3.2. Proposals shall include the installation’s name and location;
statements that solicitations shall include small businesses from the surrounding
communities and that no military doctors shall be used in the clinic; that the installation
commander and local military health care facility commander support the project; the
number of customers to be served; projected sales and financial return to the Department
of Defense and/or the exchange service; projected customer savings; a statement that
space available for the service meets DoD military medical space requirements; a detailed
site specific description of the contract award process, the contract requirements, the
length of the contract, the scope of services to be offered; and specific benefit to service
members. While there is no requirement that local business leaders agree with the new
service, the local business community and government officials shall be made aware of
the initiative and the proposal shall include their views.
E3.3.3.3. Re-notification is not required for renewal of a previously approved
specific medical concession at a specific location.
E3.3.4. Magazines and periodicals are authorized exchange sale items. DoD
Instruction 4105.70 (reference (n)) governs the sale or rental of sexually explicit material
on DoD property.
E3.3.5. Firearms and ammunition are authorized exchange sale items. Firearms shall
be sold in compliance with Federal laws and regulations. Overseas activities shall
conform to all applicable Status of Forces Agreements (SOFA) requirements, as well as
any requirements imposed by bilateral agreements between the United States and the host
nation.
E3.3.6. Name-Brand Fast-Food Operations
. When establishing name-brand
commercial fast-food operations, concession operations are preferred for military bases in
the United States, and exchange direct-run operations are the preferred method for bases
overseas. Both economic and non-economic factors shall be evaluated to decide on the
DoDI 1330.21, July 14, 2005
ENCLOSURE 3
16
method of operation that best meets the exchange mission for each location. In addition,
the following factors shall be considered in the aggregate: financial risk, customer
service, employment opportunities, management control, operational risk, and investment
opportunities. Primary consideration shall be given to the overall quality of life and
welfare of the active duty community. Notice of deviations from the preferred method
that result in major construction projects as defined in DoD Instruction 7700.18
(reference (o)) shall accompany the major construction program submitted to the
PDUSD(P&R) and l include the evaluation of economic and non-economic factors.
E3.3.7. Only Armed Services exchanges are permitted to sell, publicize, or display
new or factory certified cars or motorcycles on overseas DoD installations. Exchanges
may sell automobiles and motorcycles only to authorized patrons who are stationed or are
assigned overseas for 30 consecutive days or more. Orders may be taken for U.S.-made
automobiles, foreign name-plated vehicles with at least 75 percent U.S. or Canadian
content, and motorcycles. Sales may be made for stateside delivery or for in-country
delivery where permitted under the status of forces agreement.
E3.3.8. Alternative Fuels
Armed Services exchanges may sell alternative fuels to the
general public in compliance with 42 U.S.C. 6374, 42 U.S.C. 7586, and Executive Order
13149 (references (p) through (r)).
E3.3.9. Cable Television Services
. Armed Services exchanges may provide cable
television services in compliance with 47 U.S.C. 548 (reference (s)).
DoDI 1330.21, July 14, 2005
17 ENCLOSURE 4
E4. ENCLOSURE 4
MERCHANDISE RESTRICTIONS
E4.1.1. Exchanges in CONUS may not sell projection televisions and televisions
with a cost to the exchange of more than $3,500.
E4.1.2. Exchanges in CONUS may not sell diamond settings with individual stones
that exceed one carat.
E4.1.3. Exchanges in CONUS may not sell jewelry other than diamond jewelry with
a per-unit (piece) cost to the exchange in excess of the cost price of 2 ounces of gold.
E4.1.4. Exchanges in CONUS may not sell finished furniture with a per-unit (piece)
cost to the exchange in excess of $900.
E4.1.4.1. CONUS exchanges may not undertake new capital construction or
renovation of an exchange facility of any kind for the purpose, in whole or in part, of
providing additional space in which to sell finished furniture.
E4.1.4.2. At any new installation or location at which the exchange service
proposes to sell finished furniture, the exchange manager or installation commander shall
consult in advance with local furniture merchants and the exchange service shall advise
the Office of the PDUSD(P&R) of the proposal and any local merchant objections to
exchange sales of finished furniture. Such notice to the Office of the PDUSD (P&R)
shall be made 60 days before offering finished furniture at any new location so the Office
of the PDUSD (P&R) may notify the Congressional Committees on Armed Services in
advance. The PDUSD(P&R) must approve the offering of finished furniture at new
locations and shall notify Congress of such approval prior to offering finished furniture at
new locations.
E4.1.5. Exchanges in CONUS may not sell decorative housewares and furnishings
with a per-unit (piece) cost to the exchange in excess of $500.
E4.1.6. Exchanges in CONUS may not sell small appliances with a per unit (piece)
cost to the exchange in excess of $150 except that there is no cost limitation on floor
polishers, food processors, fans, coffee makers, humidifiers, dehumidifiers, air purifiers,
microwave ovens, refrigerators, rotisseries, roasters, broilers, and vacuum cleaners.
E4.1.7. Exchanges in CONUS may not sell recreational boats with a per unit (piece)
cost to the exchange in excess of $750.
DoDI 1330.21, July 14, 2005
ENCLOSURE 4
18
E4.1.8. Exchanges in CONUS may not sell sports equipment and supplies;
recreational, garden, and manual arts equipment and supplies; or photographic supplies
and film with a per-unit (piece) cost to the exchange in excess of $500. There is no cost
limitation on aquatic equipment, bicycles, cameras and projectors, camera and projector
accessories, fishing equipment, golf club sets, guns and gun accessories, physical fitness
exercise equipment, power tools, outdoor power equipment including lawn mowers,
edgers and snow blowers, ski equipment, surfboards, and tents.
DoDI 1330.21, July 14, 2005
19 ENCLOSURE 5
E5. ENCLOSURE 5
ALCOHOLIC BEVERAGES OPERATIONS
E5.1. APPLICABILITY AND AUTHORITY
This section applies to the sale of alcoholic beverages in the exchange systems.
E5.2. RESPONSIBLE USE OF ALCOHOL
The Military Departments shall establish programs, policies, and procedures consistent
with DoD Directive 1010.4 (reference (t)) to deglamorize the use of alcohol and to
discourage and treat its irresponsible use.
E5.3. ALCOHOLIC BEVERAGE LABELING
The provisions of the Alcoholic Beverage Labeling Act of 1988, 27 U.S.C 213 (reference
(u)) shall apply to all alcoholic beverages sold in exchange activities in CONUS and
OCONUS . This includes the requirement that alcoholic beverages purchased offshore
carry labels as required of U.S.-procured products.
E5.4. ESTABLISHMENT AND CONTINUATION OF EXCHANGE PACKAGE
STORES IN THE UNITED STATES
In the United States and Puerto Rico, the Secretary concerned may approve the sale of
packaged alcoholic beverages with an alcohol content of more than 7 percent by volume.
E5.4.1. Establishment
. Before authorizing the establishment of a package store, the
Military Department Secretary shall review the following pertinent factors:
E5.4.1.1. Estimated number of authorized patrons per outlet if granted.
E5.4.1.2. Importance of estimated contributions of package store profits to
providing, maintaining, and operating military MWR activities.
E5.4.1.3. Availability of wholesome family social clubs to military personnel in
the local civilian community.
E5.4.1.4. If on a National Guard installation, coordination with the State Adjutant
General concerned.
E5.4.1.5. Geographical inconveniences.
DoDI 1330.21, July 14, 2005
ENCLOSURE 5
20
E5.4.1.6. Limitations of nonmilitary sources.
E5.4.1.7. Disciplinary and control problems due to restrictions imposed by local
law and regulations.
E5.4.1.8. Highway safety
.
E5.4.1.9. Location and distance of nearest military package store and reasons that
the use of this facility is not feasible.
E5.4.1.10. A digest of the attitudes of community authorities or civic
organizations toward establishment of a package sales outlet. This digest should consist
of a summary of the community authorities and civic organizations, including the means
of contact, the date contact occurred, and any written comments received from
individuals and agents such as local mayors, heads of prominent civic groups or
Chambers of Commerce, State legislators, Members of Congress, or other government
officials. Speculative assessments of prospective community attitudes shall not satisfy
this requirement. The use of available command channels is encouraged.
E5.4.2. An information copy of the Military Department review shall be submitted to
the PDUSD(P&R) for each action approving the establishment of sales outlets for
packaged alcoholic beverages, including the determinations and findings made in
accordance with the criteria as stated above. The review shall be submitted to the
PDUSD(P&R) 60 days prior to the establishment to provide for advance notification to
Congress.
E5.4.3. Triennial Review
. The Secretary concerned shall conduct a triennial review
of each package store in the United States to determine the need for its continued
operation. The evaluation shall consider the factors required to establish a package store,
except subparagraph E5.4.1.10., above.
E5.5. ESTABLISHMENT OF EXCHANGE PACKAGE STORES OVERSEAS
Outside the United States, the sale of packaged alcoholic beverages with an alcoholic
content of more than 7 percent by volume may be approved by the exchange service
Commander/Chief Executive Officer provided such sales do not contradict treaties,
SOFA, and local governmental agreements.
DoDI 1330.21, July 14, 2005
ENCLOSURE 5
21
E5.6. NONALCOHOLIC AND ALCOHOLIC-TYPE BEVERAGES
The sale of packaged nonalcoholic, alcoholic beverage substitutes shall be carried out
only in exchange facilities. Due to the disparity in State laws on the classification of
"nonalcoholic," these products shall be sold only to those customers authorized to
purchase alcoholic beverages.
E5.7. PACKAGE STORE OPERATIONS
Where a package store operation is authorized for an installation, exchange systems may
operate in an independent facility, or, merge the alcoholic beverage operations with other
exchange activities provided the installation commander concurs, the stock and displays
are segregated, and all inventory controls, ration controls, signage required for alcoholic
beverages are in effect.
E5.8. PURCHASE OF ALCOHOLIC BEVERAGES FOR RESALE
Alcoholic beverage shall be purchased by the exchange service for resale from the most
competitive source and distributed in the most economical manner, price, and all other
matters considered. The most economical method of distributing distilled spirits to stores
shall be found by considering all components of distribution costs incurred in distributing
beverages to the stores including all management, logistics, administration, depreciation,
utilities, inventory carrying, handling, and distribution costs. In Alaska and Hawaii,
alcoholic beverages shall be purchased from and delivered by a source within the State in
which the military installation is located.
E5.8.1. Malt beverages and wine shall be purchased from and delivered by a source
within the State in which the military installation is located. If an installation is located
in more than one State, then the source may be in any State in which the installation is
located.
E5.8.2. State and Local Government
. DoD resale activities are not subject to State
and local laws, regulations, control, or taxation. It is DoD policy to cooperate with State
and local officials to the degree that their duties relate to the provisions of this
Instruction. The factors to be considered in sections E5.4., and E5.9. of this enclosure,
shall not be construed as meaning any submission to State control, nor shall cooperation
be construed or represented as an admission of any legal obligation to submit to State
control, pay State or local taxes, or purchase distilled spirits within geographical
boundaries, from suppliers or at prices prescribed by any State.
DoDI 1330.21, July 14, 2005
ENCLOSURE 5
22
E5.9. POSSESSION
Packaged alcoholic beverage sales outlets are operated solely for the benefit of authorized
customers. Authorized purchasers shall not sell, exchange, or otherwise divert packaged
alcoholic beverages to unauthorized personnel.
E5.10. OVERSEAS WINE SALES
In accordance with 10 U.S.C. 2489 (reference (v)) Armed Services exchanges outside the
United States engaged principally in selling alcoholic beverages will, in general, give
equitable treatment to American produced wines, in terms of selection, distribution, and
price, when compared with wines produced by the host nation. The exchange service
shall:
E5.10.1. Work with U.S. wine producers to assist and facilitate the supply and
marketing of U.S.-produced wines in package stores outside the United States. Each
package store shall separately and/or prominently identify or display U.S.-produced
wines.
E5.10.2. Carry a representative number of American wines in each category and
price level that compares with the selection of host-nation wines.
E5.10.3. Ensure that the percentage of markup on host-country wines shall be equal
to or more than the percentage of markup on American-produced wines.
E5.10.4. If there is conflict between this policy and a SOFA or other country-to-
country agreements, the latter shall prevail.
E5.11. IN-HOUSE PROMOTIONS OF ALCOHOLIC BEVERAGE SALES
Coupons, bag stuffers, free samples, or any other media used to promote or advertise the
sale or consumption of specific brands of alcoholic beverage are prohibited. Examples
include, but are not limited to, cents-off coupons, chit books, courtesy cards, slips,
coupons books, and product samples designed to reduce the normal retail sales price
charged by package beverage stores as established above. This does not prevent
conducting on-premise beverage tasting.
DoDI 1330.21, July 14, 2005
ENCLOSURE 5
23
E5.12. COMMERCIAL PROMOTIONS OF ALCOHOLIC BEVERAGE SALES
Exchange systems are not authorized to participate in any type of alcoholic beverage
promotion sponsored by commercial enterprises that is directed or targeted primarily or
exclusively at the military community (uniformed or retired personnel, either on active
duty or serving in any category of a Reserve component, and their dependents).
Examples of promotions include, but are not limited to, sweepstakes, lucky number
events, bottle-top redemption, premiums, discount coupons, or providing sample
products. This does not prevent conducting on-premise beverage tasting. Package
beverage stores may participate in promotions available to the general public at large.
DoDI 1330.21, July 14, 2005
24 ENCLOSURE 6
E6. ENCLOSURE 6
AUTHORIZED PATRONS
E6.1.1. Unlimited Exchange Privileges in the United States, and all
Commonwealths, Possessions, and Territories of the United States (except as noted). The
following table lists the individuals, organizations, and activities entitled to unlimited
exchange service benefits:
Table E6.T1. Unlimited Exchange Privileges
CATEGORY STATUS
1. Uniformed or Retired
Uniformed Personnel, either on
Active Duty or serving in any
category of the Reserve
Component
• All members of the Army, the Air Force, the Navy, the
Marines, the Coast Guard, commissioned officers of the
National Oceanic and Atmospheric Administration (NOAA) and
its predecessors, and commissioned officers of the Public
Health Service.
• Former members of the Lighthouse Services; personnel of
the Emergency Officers’ Retired List of the Army, the Navy,
the Air Force, and the Marine Corps; and members or former
members of Reserve components who, but for age, would be
eligible for retired pay.
• Enlisted personnel transferred to the Fleet Reserve of the
Navy and Fleet Marine Corps Reserve after 16 or more years
of active military service. (These personnel are equivalent to
Army and Air Force retired enlisted personnel.)
2. Medal of Honor Recipients • All.
3. Honorably Discharged
Veterans
• When: (a) classified by the Veterans’ Administration as
being 100-percent disabled or (c) when hospitalized where
exchange facilities are available.
4. Military Members of Foreign
Nations
• Active duty officers and enlisted personnel of foreign nations
when on duty with the U.S. Armed Services under orders
issued by the U.S. Army, Navy, Air Force, or Marine Corps.
Service regulations shall govern the sale of uniform items.
• Excluded are officers and enlisted personnel of foreign
nations, retired or on leave in the United States, or when
attending U.S. schools, but not under orders issued by the
U.S. Army, Navy, Air Force, or Marine Corps.
• Overseas, when decided by the major overseas commander
that granting such privileges is in the best interest of the
United States and that such persons are connected with, or
their activities are related to, the performance of functions of
the U.S. Military Establishment.
DoDI 1330.21, July 14, 2005
ENCLOSURE 6
25
Table E6.T1. Unlimited Exchange Privileges - Continued
CATEGORY STATUS
5. National Guard Members not in Federal
service
• Members not in Federal service, when called or
ordered to duty in response to a federally declared
disaster or National Emergency shall be permitted
to use exchange facilities during the period of such
duty, on the same basis as active duty members of
the Armed Forces.
6. Red Cross Personnel • Personnel who are U.S. citizens and assigned to
duty outside of the United States and Puerto Rico
with an activity of the Military Service.
7. U.S. Civilian DoD Employees • When stationed outside of the United States.
8. U.S. Citizen Employees of Firms under
Contract to the Department of Defense
• When employed outside of the United States.
9. Wage marine personnel, including
noncommissioned ships' officers and crew
members of the NOAA
• All
10. Retired wage marine personnel,
including noncommissioned ships’ officers
and crew members of NOAA
• All
11. Authorized Family Members of
Personnel in Categories 1 through 10,
above
• As defined in enclosure 2.
12. Contract Surgeons • During the period of their contract with the
Surgeon General.
13. Official DoD Activities (for activity
purchases and use only; not for individual
purchases or use)
• All purchases authorized for Government-wide
purchase card use.
• All other purchases based on sole-source
justification.
• All purchases authorized by 10 U.S.C. 2482
(reference (w))
14. Non-DoD Federal
Departments/Agencies (for Federal
Department/Agencies purchases and use
only; not for individual purchases or use)
• When it is determined by the local commanding
officer that the desired supplies or services may not
be conveniently obtained elsewhere and may be
furnished without unduly impairing service to
exchange patrons.
• All purchases authorized by reference (w).
15. Dependents of members of the Armed
Forces, Commissioned Officers of the
Public Health Service, and Commissioned
Officers of the NOAA, separated for
Dependent Abuse
• A dependent or former dependent entitled to
transition compensation under 10 U.S.C. 1059
(reference (x)), if not eligible under another
provision of law, while receiving payments for
transition compensation.
Table E6.T1. Unlimited Exchange Privileges - Continued
CATEGORY STATUS
DoDI 1330.21, July 14, 2005
ENCLOSURE 6
26
Table E6.T1. Unlimited Exchange Privileges - Continued
CATEGORY STATUS
16. United Service Organizations (USO) • USO clubs and agencies may purchase
subsistence supplies for use in club snack bars that
support active duty military members and their
families.
• USO personnel stationed outside the United
States.
• In overseas areas, installation Commanders may
extend privileges to USO area executives,
executive directors, and assistant executive
directors who are U.S. citizens when it is in the
capability of the exchanges and does not impair the
military mission.
17. Agents • Persons authorized in writing by the base
commanding officer to shop for an authorized
patron or an official organization or activity entitled
to unlimited privileges.
• Agents are not authorized to shop for themselves.
18. Delayed Entry Program Participants • Authorized to use exchange facilities during
interim period before entering active duty.
E6.1.2. Limited Exchange Privileges in the United States and all Commonwealths,
Possessions, and Territories of the United States (except as noted in section 2. of table
E26.T2., below). The following table lists the individuals, organizations, and activities
entitled to limited exchange service benefits. Limited exchange privileges generally
exclude tobacco products, alcoholic beverages, and military uniforms.
Table E6.T2. Limited Exchange Privileges
CATEGORY STATUS
1. U.S Government Civilian Employees and Full-Time
Paid Staff of the Red Cross
• Who reside on military installations
within the United States and Puerto
Rico.
• No uniform items.
• No State tax-free tobacco items.
• Tax-free alcoholic beverages may
be purchased, but not removed from
the installation.
2. Armed Forces Exchange Employees • Current employees, retired
employees with 20 or more years of
service, and employees on 100-
percent disability retirement from the
Armed Services exchanges are
entitled to all privileges of the
exchange system where they are
employed.
• No uniform items.
• No State tax-free tobacco items.
DoDI 1330.21, July 14, 2005
ENCLOSURE 6
27
• No tax-free alcoholic beverages.
• Unlimited privileges overseas,
except for uniform items.
• Overseas sales to exchange
employees must not violate SOFA or
international agreements.
3. DoD Civilian Employees on Evacuation Orders • Employees who are directly affected
by an emergency evacuation are
authorized to use the Armed Services
exchange services at their safe-haven
location as determined by the
pertinent installation commander in
the United States during the
evacuation period.
4. Authorized Family Members of Personnel in
Categories 1 through 3, above
• As defined in enclosure 2.
5. DoD Civilian Employees in Temporary Duty (TDY)
status
• In the United States, when occupying Government
quarters on military installations, and identified by
copies of their TDY orders and on-base billeting
authorization.
• Outside of the United States when identified by
copies of their TDY orders.
• No uniform items.
• No State tax-free tobacco items.
• No tax-free alcoholic beverages.
6. Civilian Employees of the U.S. Government working
on, but residing off of, Military Installations
• All food and beverages sold at any exchange food
activity, if consumed on post.
7. Uniformed and Non-uniformed Personnel working in
recognized welfare service organization offices within an
Activity of the Military Service
• All food and beverages sold at any exchange food
activity, if consumed on post.
8. Visitors to Military Installations • All food and beverages sold at any exchange food
activity, if consumed on post.
9. Contract Technical Services Personnel in travel status;
Army, Navy, and Air Force Academy Applicants
• When occupying Government quarters on a military
installation.
• No uniform items.
• No State tax-free tobacco items.
• No tax-free alcoholic beverages.
10. Foreign National Active Duty Officers and Enlisted
Members, when visiting U.S. Military Installations on
unofficial business
• Entitled to all exchange privileges, except that
merchandise sold to such personnel shall be
restricted to quantities required for their personal use.
• Service regulations shall govern the sale of uniform
items.
11. Service Members of the Civil Air Patrol in a travel
status and occupying Government quarters on a DoD
Installation
• For purchases other than uniforms, they shall be
identified by their current membership card, their
travel authorization, and evidence they are occupying
Government quarters on the installation.
• Purchases of uniforms, when Civil Air Patrol
membership card is shown.
• No State tax-free tobacco items.
DoDI 1330.21, July 14, 2005
ENCLOSURE 6
28
• No tax-free alcoholic beverages.
12. Civil Air Patrol Cadets • Purchases of uniforms, when Civil Air Patrol
membership card is shown.
• All food and beverage sold at any exchange food
activity, if consumed on post.
Table E6.T2. Limited Exchange Privileges - continued
CATEGORY STATUS
13. Members of the Reserve Officers
Training Corps and Junior Reserve
Officers Training Corps
• When visiting installations under orders as part of a
Service orientation program.
• No State tax-free tobacco items.
• No tax-free alcoholic beverages.
14. Members of the Naval Sea Cadet
Corps
• On 2-week summer training duty, if occupying
Government quarters on a military installation.
• No distinctive uniform items.
• No State tax-free tobacco items.
• No tax-free alcoholic beverages.
15. Coast Guard Auxiliary Members • When identified by the Coast Guard Auxiliary ID
Card, CG-2650.
• Uniform articles and accessories authorized by
Coast Guard auxiliary directives.
16. Civilian Students and Faculty
Members at Service Schools
• Books, supplies, and materials related to the
educational process, only at exchange facilities that
support the school.
17. Persons Suffering from Hardship • Exchange employees may sell to otherwise
unauthorized persons "stranded on an installation,"
small quantities of gasoline, oil, other automotive
items, or items necessary for an individual's health.
18. DoD Civilian Employees using
Government-authorized vehicles for
official business
• Gasoline for use in vehicles, upon presentation of
military travel orders that authorize the leasing or use
of the Government vehicle.
DoDI 1330.21, July 14, 2005
29 ENCLOSURE 7
E7. ENCLOSURE 7
IDENTIFICATION OF AUTHORIZED PATRONS
E7.1. POSITIVE IDENTIFICATION REQUIRED
Any individual seeking to make a purchase from an exchange shall be positively
identified as an authorized patron before completing a sale. Sales shall be made only to
authorized patrons.
E7.2. TYPES OF IDENTIFICATION REQUIRED
Authorized patrons of exchanges shall be identified by the complete regulation U.S.
military uniform, by an official Uniformed Services Identification Card (DD Form 2, DD
Form 1173, DD Form 1173-1, DD Form 2750, DD Form 2764, DD Form 2765, and the
DoD Common Access Card), by the Armed Forces Exchange Service Identification and
Privilege Card (DD Form 2574), by an official identification card issued by the Military
Service of which the patron is affiliated, or by official DoD issuances (DD Form 4, DD
Form 1610, and DD Form 1618). Specific information regarding the Armed Services
Identification Card (DD Form 2, DD Form 1173, DD Form 1173-1, DD Form 2750, DD
Form 2764, DD Form 2765, and DoD Common Access Card) is contained in DoD
Instruction 1000.13 (reference (y)). The Defense Enrollment Eligibility Reporting
System may be used to verify authorized Armed Services exchange catalog customers.
E7.3. ARMED FORCES EXCHANGE SERVICE IDENTIFICATION AND
PRIVILEGE CARD (DD FORM 2574)
The Armed Forces Exchange Service Identification and Privilege Card DD Form 2574
(See figure E7.F1., below) may only be issued to authorized patrons of exchanges who do
not otherwise require the Armed Service Identification Card for benefit or identification
purposes.
E7.1.4. PATRONS OF FOUNTAIN, SNACK BAR, AND RESTAURANT
FACILITIES
Identification cards are not required of personnel listed in subsections E6.T2.6, E6.T2.7.,
and E6.T2.8., who are authorized only to patronize fountain, snack bar, and restaurant
facilities.
DoDI 1330.21, July 14, 2005
ENCLOSURE 7
30
Figure E7.F1. Armed Forces Exchange Identification and Privilege Card, DD Form 2574
A000087
20050518 20090517
Geor
g
e P. Giles
,
NF-01
19550702 123-45-6789
BR BR 6’ 2” 185
Mae B. Br
y
ant
,
NF-03
Fort Myer, Arlington, VA
DoDI 1330.21, July 14, 2005
31 ENCLOSURE 8
E8. ENCLOSURE 8
EXCHANGE OPERATIONS ON CLOSED INSTALLATIONS
E8.1. REALIGNMENT AND CLOSURE
Where military realignment and installation closure costs adversely impact exchange
earnings, affected exchanges are authorized to receive APF. Where permitted by law,
this includes all Base Realignment and Closure (BRAC) accounts.
E8.2. BRAC FUNDING
Exchange programs may receive BRAC funding for expenses affecting personnel
(civilian severance pay, civilian PCS, outplacement, transportation of things, etc.) to the
extent authorized by reference (f). When NAF facilities are transferred in connection
with the closure or realignment of a military installation, exchanges may also receive
funding from the Reserve Account up to the depreciated value of the investment. Use of
funds from the Reserve Account is specified in reference (j).
E8.3. PROPERTY
Exchange service NAF personal property is not Government APF property. At BRAC
locations, this NAF property may be removed or sold to the local redevelopment
authority for fair market value at the exchange service's discretion. Every effort should
be made to ensure that the local redevelopment authority is aware of the difference
between NAF and APF property.
E8.4. EXCHANGE OPERATIONS ON CLOSED INSTALLATIONS
Exchange operations may be provided to patrons in the immediate area of closed
installations in the United States, its territories and possessions under specific criteria.
E8.4.1. Exchange operations are authorized on closed installations based on either
Reserve component or active duty patron bases remaining on the closed installation, or in
the immediate vicinity.
E8.4.2. Main exchange and other major exchange operations on closed installations
shall be endorsed by the Secretary of the Military Department concerned and approved
by the PDUSD(P&R). The exchange Service Commander shall approve troop stores,
concessions, food, and shoppette-type operations on closed installations after a final
decision from the Military Department.
DoDI 1330.21, July 14, 2005
ENCLOSURE 8
32
E8.4.3. The general criteria for continuation of exchange operations on closed
installations in the United States are:
E8.4.3.1. The needs and welfare of the remaining active duty military community
shall be given primary consideration.
E8.4.3.2. The installation no longer has a full-time active duty mission, but active
duty Uniformed Service personnel remain on the former installation or in the immediate
area. This includes the actual installation and Government-owned or contracted housing.
E8.4.3.3. The Military Department shall confirm the number of active duty
personnel who shall be stationed on and in the immediate area of the closed installation
after the installation is closed. Active duty personnel are Uniformed Service personnel
with DD Form 2 (Active) identification cards.
E8.4.3.4. Where possible, as determined by the Military Department, the
exchange operations shall complement the local community reuse plan and have written
community support from the local government(s) in the immediate area surrounding the
closed installation.
E8.4.3.5. The closed installation shall be over 20 miles from another active
installation or a Government-owned or contracted housing area that is authorized
exchange support. If the active installation is fewer than 20 miles from the closed
installation, the active installation's exchange shall be able to accommodate the additional
patron migration.
E8.4.3.6. Requirements for facilities and programs shall consider that all
authorized patrons (including Reserve components and retirees) may continue to use the
exchange programs.
E8.4.3.7. New construction or expansion of an existing facility on a closed
installation should not be required. This does not preclude renovations, maintenance and
repair, and minor construction on existing facilities when justified. Exceptions to allow
major construction shall be approved by the PDUSD(P&R) and forwarded to Congress
for approval, as required.
E8.4.4. In addition to the foregoing criteria, the PDUSD(P&R) shall approve main
exchanges and other exchange operations for closed and realigned installations with a
predominant Reserve Force, based on the following specific criteria, if the exchange
operations:
E8.4.4.1. Provide an otherwise unavailable benefit to a substantial number of
authorized patrons remaining in the area.
DoDI 1330.21, July 14, 2005
ENCLOSURE 8
33
E8.4.4.2. Require no APF. Exchanges are authorized to receive support for
common services normally provided, such as police and fire protection.
E8.4.4.3. Complement the local community reuse plan and have local community
support.
E8.4.4.4. Require a Reserve Force as part of the patron complement, based on the
Reserves' entitlement to full exchange privileges.
E8.4.4.5. Do not require new construction or expansion of an existing building.
Renovations and minor construction on existing buildings are allowable, when justified.
E8.4.5. All exchange operations on closed installations shall undergo a 1-year test
period to establish profitability. For operations that are not profitable, the exchange
service shall take action to achieve profitability. Any operation with a loss for any 2
consecutive years or with a loss for 2 out of 3 years shall close.
E8.5. COMBINED COMMISSARY AND EXCHANGE STORES ON CLOSED
INSTALLATIONS
Before evaluating a combined store, the Secretary of the Military Department concerned
shall decide if a "limited commissary benefit" shall be supported at the location. A
"limited commissary benefit" is defined as grocery (edible) food items sold at cost plus 5
percent to authorized exchange patrons. Where the Military Department(s) supports a
"limited commissary benefit" (including the associated APF costs) and an exchange and
commissary already operate at the location, an exchange-operated combined commissary
and exchange store shall be evaluated by the Armed Service exchange that operates at the
location.
E8.5.1. A recommendation to create a combined store shall be based on the
following criteria, which apply to all models of combined stores operated by the Military
Department, except those specifically excluded by or under an agreement in effect before
the enactment of 10 U.S.C. 2490a (reference (z)):
E8.5.1.1. Active duty personnel remain on the installation or within a 20 mile
radius of an installation.
E8.5.1.2. The closest installation with an active duty mission, or a Federal
Government-owned or contracted housing area that has commissary and exchange
support is a one-way distance of at least 20 miles away. If the one-way distance is fewer
than 20 miles, and the commissary and exchange are able to accommodate the additional
patron migration, a combined store shall not be considered.
E8.5.1.3. In the case of a closed installation:
DoDI 1330.21, July 14, 2005
ENCLOSURE 8
34
E8.5.1.3.1. Where possible, as determined by the Secretary concerned, the
combined store must complement the local reuse plan and have written support from the
local government(s) immediately surrounding the closed installation.
E8.5.1.3.2. Space must be available in an existing facility. New construction
or expansion of an existing facility on a closed installation shall not be required.
Renovations, maintenance and repair, and minor construction on existing facilities are
allowable, when justified. Exceptions to allow major construction shall be approved by
the PDUSD(P&R).
E8.5.1.3.3. Requirements for facilities and programs shall consider that all
authorized patrons (including Reservists and retirees) may continue to use MWR and
resale programs.
E8.5.1.4. The number of combined stores in the United States shall not exceed
ten.
E8.5.1.5. Only an Armed Service Exchange may operate a combined store.
E8.5.1.6. Edible groceries shall be sold at cost plus 5 percent. Other items may be
priced in conformance with paragraph 4.10. of reference (b).
E8.5.1.7. The combined store shall be economically viable and shall not
negatively impact MWR dividends, after authorized APF is provided, as discussed below.
E8.5.1.7.1. The cost for the combined grocery store operation must yield at
least a 10 percent annual savings compared to the cost for the Defense Commissary
Agency (DeCA) to operate a downscaled commissary. All operating costs, including
facility, equipment and manpower, both one-time and recurring, that are required shall be
considered when making this comparison.
E8.5.1.7.2. DeCA and the Military Department(s) shall provide APF to the
Armed Service Exchange for the combined store only if the grocery operation suffers a
net loss during the Federal fiscal year, provided that there is an annual loss from all
exchange-operated activities at the installation. The annual APF support shall be limited
to 25 percent of the last full fiscal year of DeCA's cost to operate the commissary store at
that location. Within the limitations, the amount shall be based on a pro rata share of:
E8.5.1.7.2.1. Store-specific costs determined by the percentage of store
sales associated with edible grocery items; plus,
E8.5.1.7.2.2. "Above the store level" overhead (exclusive of MWR
dividends) that shall not exceed 2.5 percent of edible grocery item sales.
DoDI 1330.21, July 14, 2005
ENCLOSURE 8
35
E8.5.2. The combined store operation shall be reviewed annually by the Military
Departments and the Commissary Operating Board (COB) to ensure that criteria are still
met. A combined store operation with a loss for two consecutive years or with a loss for
2 out of 3 years shall close. If the location is closed as a combined store operation, the
exchange may reestablish the operation as a stand alone independent exchange selling all
merchandise including food at regular exchange mark-ups provided it conforms to
section E8.4. and paragraphs E8.5.4. and E3.3.1. If an operation reopened as an
independent exchange continues to post a loss, the exchange and the host military Service
shall determine the continuance of the operation.
E8.5.3. Based on the above analysis, the Director of DeCA, following coordination
with the Military Department(s) and the Armed Service Exchange concerned, shall
provide a recommendation to the COB regarding the need to close or to create a
combined store. The COB shall forward its recommendation to the PDUSD(P&R). A
decision to close or create a combined store must be approved by the PDUSD(P&R).
The PDUSD(P&R) shall notify the Congress 90 days before action is taken.
E8.5.4. If a "limited commissary benefit" is not warranted at the location, then the
Armed Service Exchange may elect to sell edible food items at the location, but APF
support designated for commissaries shall not be provided to offset the exchange cost of
selling edible groceries
E8.6. REPORTING REQUIREMENTS
The Military Departments, DeCA, and the COB shall submit their recommendations,
along with the "DoD Commissary Operations Report" (Report Control Symbol DD-
FM&P(A)1187) required by DoD Directive 1330.17 (reference (aa)), to the
PDUSD(P&R) by April 1
st
of each year.
DoDI 1330.21, July 14, 2005
ENCLOSURE 9
36
E9. ENCLOSURE 9
EXCHANGE RESOURCE ELEMENTS AUTHORIZED APPROPRIATED FUND
(APF) SUPPORT
E9.1. MILITARY PERSONNEL
Active duty military personnel performing ECECS in sufficient numbers for military
exchanges to provide a trained cadre to meet wartime and deployment requirements and
to perform managerial functions.
E9.2. HUMAN RESOURCES OFFICE ASSISTANCE OR ADMINISTRATION
The human resources office (appropriated) may provide technical advice and counsel,
and day-to-day personnel administration when no additional incremental APF costs are
incurred.
E9.3. TRAVEL OF PERSONNEL
E9.3.1. PCS relocation of military and APF civilian personnel assigned on a full-time
basis.
E9.3.2. Temporary Duty (TDY and/or TAD) travel for military and APF civilian
personnel, and for exchange employees when directed by the Department of Defense.
E9.3.3. Use of Government vehicles (owned, leased, or contracted) to assist in
ECECS.
E9.4. TRANSPORTATION OF THINGS
E9.4.1. APF purchased goods.
E9.4.2. NAF purchased goods:
E9.4.2.1. Transoceanic movement of goods to and from overseas and aerial ports
of debarkation to first destination OCONUS.
E9.4.2.2. Movement of U.S. and foreign goods within foreign areas when
commercial transportation is not available, in combat zones, or otherwise on a
reimbursable basis only.
DoDI 1330.21, July 14, 2005
ENCLOSURE 9
37
E9.4.2.3. Movement of U.S. goods between DoD installations because of base
closures, or to safeguard goods under emergency conditions, such as the threat of hostile
force or natural disaster.
E9.4.2.4. Household goods of military personnel and APF civilian personnel.
E9.4.2.5. Household goods of NAF personnel on a reimbursable basis. Initial
APF funding is authorized for NAF personnel only when NAF shall reimburse (except at
BRAC locations that are authorized APF).
E9.5. UTILITIES
(including fuel)
E9.5.1. Buildings on military installations used for exchange activities.
E9.5.2. Other exchange activities for members of the Armed Forces.
E9.6. COMMUNICATIONS
E9.6.1. Electronic communications in support of command management functions,
statistical data gathering, and communications with other DoD and Government
Agencies.
E9.6.2. Electronic communication in support of exchange activities OCONUS.
E9.6.3. Postal services for official communications within and between Government
Agencies, persons, and private commercial agencies not related to the sale of goods and
services.
E9.6.4. Printing and reproduction services excluding those services directly relating
to the sale of merchandise or services, or to the internal operation of the exchanges.
E9.7. EQUIPMENT
Equipment required for ECECS, and surplus/excess Government equipment.
E9.8. EQUIPMENT MAINTENANCE
Equipment acquired with NAF, but authorized for purchase with APF where the title
transfers to the Government.
DoDI 1330.21, July 14, 2005
ENCLOSURE 9
38
E9.9. OTHER SERVICES
E9.9.1. Education and training of military and APF personnel. APF may be used to
fund NAF employee courses for DoD Component-approved training that is not job
unique; examples include, but are not limited to, courses on management and/or leader
development, quality training, health and safety, sexual harassment, etc.
E9.9.2. Data automation services required for command supervision and
management review and analysis.
E9.9.3. Financial management services in the form of technical guidance and
assistance in preparing budgets, and financial and analytical data required for command
supervision and control. Auditing services are authorized in accordance with DoD
Instruction 7600.6 (reference (ab)).
E9.9.4. Legal services by judge advocate and general counsel legal staff, but not
internal NAFI staff.
E9.9.5. Procurement Office assistance when existing APF contracts are used to
purchase items or services.
E9.9.6. Common services protecting the health and safety of participants, employees,
and exchange resources. Trash and garbage removal services are not authorized in
CONUS.
E9.9.7. Routine grounds maintenance.
E9.10. SUPPLIES
Expendables required for ECECS.
E9.11. OTHER OPERATING EXPENSES
Costs incurred to perform functions related to ECECS.
E9.12. NON-OPERATING EXPENSES
E9.12.1. Architect and/or engineering services for exchange construction, if no
additional manpower authorizations are required, and for APF construction.
E9.12.2. Purchase of real property as approved by Congress.
DoDI 1330.21, July 14, 2005
ENCLOSURE 9
39
E9.12.3. Use of existing facilities.
E9.13. MERCHANDISE FOR RESALE
Military clothing and other APF items sold in military exchanges on a cost-reimbursable
basis.
E9.14. CONSTRUCTION
E9.14.1. Community facility construction related to the establishment, activation, or
expansion (resulting from a major increase in personnel strength over a short period of
time due to mission change or influx of new personnel; e.g., a 25-percent increase in
personnel within a 2-year time span satisfies these criteria) of a DoD installation, or
relocation of facilities for the convenience of the Government.
E9.14.2. Restoration of facilities destroyed by acts of God, fire, or terrorism.
E9.14.3. Correction of life, health, and safety deficiencies.
E9.14.4. Exchange facilities in areas of military conflict, or in air terminals,
hospitals, housing, or other construction projects.
E9.14.5. Exchange logistical facilities outside the United States
including: administration, storage and maintenance, laundry and dry cleaning plants,
bakeries, dairies, or similar facilities in support of the military mission.
E9.14.6. Replacement of facilities denied by country-to-country agreements.
E9.14.7. Archeological clearance, ammunition clearance, environmental assessment
and remediation, and water purification.
DoDI 1330.21, July 14, 2005
40 ENCLOSURE 10
E10. ENCLOSURE 10
EXCHANGE ADVERTISING POLICY
E10.1. GENERAL
DoD military exchanges must raise awareness of the quality of life benefits they provide
and the availability of goods and services they offer to as many authorized patrons as
possible. Such communication shall not reflect unfavorably on the Department of
Defense.
E10.2. POLICY
E10.2.1. Military exchanges may pay to advertise goods, services, and entertainment
in DoD newspapers (DoD Instruction 5120.4 (reference (ac)) including installation cable
television. The following may be included in the advertisement: brand names, item
prices, films, theater admission prices, and names of companies, vendors or distributors
in the case of special promotions.
E10.2.2. Military exchanges may pay to advertise their services, products, and events
in newspapers other than DoD newspapers, if the chosen media is circulated among and
written for authorized exchange patrons. When non-DoD media is used for advertising
that may be heard, seen, or read by unauthorized patrons, a disclaimer shall be used
similar to: "this offer or event is open only to authorized patrons." (This policy shall not
be interpreted to apply to publications distributed to a more general audience.) Both
economic and non-economic factors shall be evaluated before engaging non-DoD media
to advertise exchange services, products and events.
E10.2.3. Military exchanges may pay to advertise in appropriate civilian media when
holding or participating in special events that are open to the public or private sector
(such as Air Shows, Automobile Shows, etc.), subject to the following conditions:
E10.2.3.1. Events shall not directly compete with MWR activities or similar
events offered in the local civilian community. Open events shall be coordinated in
advance with the local public affairs office.
E10.2.3.2. Open events must be infrequent, not weekly or monthly, and enhance
community relations.
E10.2.3.3. Merchandise shall not be advertised; however, event-related goods
and souvenirs and food and beverages for on-premises consumption may be sold.
E10.2.3.4. OCONUS advertising shall also conform to existing SOFA
regulations, command policy, and local laws.
DoDI 1330.21, July 14, 2005
ENCLOSURE 10
41
E10.2.4. Military exchanges may sell advertising in any media (printed, electronic,
etc.) produced for or prepared by them and may accept payment for such advertising
subject to the following conditions:
E10.2.4.1. Advertising is limited to only those products and services the military
exchanges are authorized to sell.
E10.2.4.2. Publication of paid commercial advertising by military exchanges is
bound by similar standards that apply to civilian enterprise publications.
E10.2.4.3. Acceptance of paid commercial advertising on Armed Forces Radio
and Television Service (AFRTS), local commander channels, or any APF electronic
media is prohibited.
E10.2.4.4. Advertising in exchange media is based on reaching bona fide users in
accordance with established patronage policies.
E10.2.4.5. Use of mailing lists provided to agents is restricted to specific
exchange mailings.
E10.2.5. Mailings (written or electronic) of announcements promoting exchange
products and services are authorized only to authorized patrons. Such mailings may
contain advertisements for specific commercial products, commodities, or services
provided by or for any private individual, firm, or corporation, and are permitted only to
authorized patrons. The cost of promotional mailings and postage shall not be paid with
APF.
E10.2.5.1. Advertising is limited to only those products and services the military
exchanges are authorized to sell.
E10.2.5.2. Informational mailings to eligible patrons are authorized and may
include promotional material.
E10.2.5.3. Promotional mailings may be sent only when individuals have
consented to such mailings.
E10.2.5.4. A mechanism shall be adopted so those individuals, who consented to
such mailings, can remove their names from the list.
E10.2.6. Military exchanges may contribute articles and stories for publication as
unpaid information items in DoD newspapers, plan-of-the-day, AFRTS, installation cable
television, and other media intended primarily for distribution to authorized patrons.
E10.2.7. Ads, premiums, coupons, samples, and similar promotions (like those used
in the commercial sector) may be distributed directly to authorized patrons unless
specifically prohibited by DoD policy.
DoDI 1330.21, July 14, 2005
ENCLOSURE 10
42
E10.2.8. Military exchanges may establish, operate, and maintain unclassified Web
sites in accordance with DoD prescribed web site administration policies and procedures
for official and unofficial web sites.
E10.2.9. The Military Departments shall disseminate standard exchange benefit
information at recruiting locations, and at basic training, pre-deployment, and Service
schools.
E10.2.10. Outreach programs shall advise patrons, especially those living and
working off base, of the products and services available.
