This is from Ron Fuchs’ “The Reference Book On .223 REMINGTON (5.56 X 45MM) CARTRIDGES THEIR VARIATIONS, AND OTHER RELATED CARTRIDGES AND ITEMS” and posted with his permission.
AAC for American Armaments Corp, by Igman Zavod Yugoslavia
AAC 83 Ball fmj cl b/rd 1881
Made inexpensively in Yugoslavia for export to American Armaments Corp., a subsidiary of Nordac Mfg Corp, Fredericksburg, VA, Nordac sold $4.7 million worth of these cartridges to El Salvador in 1984 as if they were more expensive U.S. manufactured rounds for use in their U.S. made M-16 rifles. The Salvadorian rifles jammed when these rounds were first used. The Foreign Military Sales Credit Program required buying U.S. manufactured goods. It turned out that these rounds were of good quality but that they violated the FMS contract requirement. John Straighton was indicted in May 1986. He had the rounds headstamped AAC for American Ammunition Company, in hopes of having the appearance of rounds made in the USA.