From Military.com -

Even if body art/tattoos/branding/mutilation occurred prior to the Navy’s original guidance released in January 2003, commanders still have the option to recommend separation if medical authorities determine removal is not feasible.

>From IBN - “Tattoos will tarnish the army’s image, even the scars of removed tattoos,” said Li Chunming, a military health official with PLA’s logistics headquarters. Li said only tattoos following the traditions of ethnic minorities will be allowed and only if the figures are not too prominent.

Although the Army has recently loosened tattoo restrictions in order to help boost recruiting, the navy has headed in the opposite direction.

Times have changed, and the Navy is no longer on board with big body art. A few years ago it put new restrictions on the location, number, type, size and statement that sailors and enlistees may make with their tattoos.

From the AP

But Steven Lawson, a public affairs specialist with the Army recruitment battalion in Indianapolis, said a nationwide policy change dated Jan. 20 now permits certain neck tattoos. It applies to everyone in the Army - not just new recruits.