Mandatory for FMS LOAs that include Defense Transportation System (DTS) Delivery Term Code (DTC) 7 for FMS materiel moving through transit point(s) with restrictive national customs requirements where U.S. Government retention of title will facilitate movement. Requests for use of this note must be directed by the applicable Implementing Agency to DSCA (Strategy Directorate) for approval in advance of LOA development.

Mandatory for LOA Amendments that add DTS DTC 7 for FMS materiel moving through transit point(s) with restrictive nation customs requirements where U.S. Government retention of title will facilitate movement. Requests for use of this note must be directed by the applicable Implementing Agency to DSCA (Strategy Directorate) for approval in advance.

See Figure C5.F4.

IA

1. "In addition to the terms of this LOA and the note titled "Transportation and Services," the U.S. Government agrees to pass title to the purchaser at an inland delivery point in the purchaser country as specified in this LOA. As permitted by the LOA Standard Terms and Conditions paragraph 5.1, the Department of Defense (DoD) may arrange through the Defense Transportation System (DTS) the movement of the applicable defense articles to the authorized delivery point as a reimbursable service and will pass title at the delivery destination in the purchaser country.

2. Paragraph 3 of the Standard Terms and Conditions of this LOA governs indemnification and assumption of risks and liability during retention of title by the U.S. Government regardless of the mode of transportation.

3. Any incurred transportation-related costs that are not covered by rates for Delivery Term Code 7 (i.e., below-the-line transportation costs), will be charged as a service line on the LOA document (i.e., above-the-line costs), and billed to the purchaser. These costs may include, but are not limited to, charges for movement of the FMS materiel to/from a secure temporary storage location at a transit point, special documentation requirements for cargo clearance, special clearance requirements associated with a movement of hazardous materiel, security personnel required to accompany the shipment, packing, crating, or otherwise preparing the defense articles for shipment or other unanticipated charges."