Defense Security Cooperation Agency
Defense Solutions for America's Global Partners
C4.2. - General FMS Legal, Regulatory, And Policy Terms Of Sale
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C4.2.1. Sales Determinations. When the eligibility criteria in Section C4.1. have been met, the Secretary of State determines whether there will be a sale to a country or international organization and the amount thereof, whether there will be a lease to a country or international organization, and whether there will be any other delivery or performance under any sale or lease. See Section C11.6. for information on leases and Chapter 15 for pseudo cases. Decisions to issue licenses or approve sales under the AECA or to furnish military assistance under the FAA must take into account the extent to which such exports, sales, or assistance contribute to an arms race, increase the possibility of outbreak or escalation of conflict, or prejudice the development of bilateral or multilateral arms control arrangements (FAA, section 511 (22 U.S.C. Section 2321d); see also AECA, section 38(a)(2) (22 U.S.C. 2778), and 42(a) (22 U.S.C. 2791).

C4.2.2. Retransfer Restrictions. All purchasers or grant recipients must agree that they will not transfer title or possession of any defense article or related training or other defense services to any other country without prior consent from the U.S. Department of State (DoS) pursuant to AECA section 3(a)(2) (22 U.S.C. 2753) and FAA, section 505(a), (22 U.S.C. 2314). Special care must be taken to ensure that minor repair parts, fuel, or other defense articles that lose their identity when co-mingled, are controlled by the recipient government using procedures that assure all retransfers are properly approved. See Chapter 8 for information on re-transfers.

C4.2.3. Proper Use of Materiel and End Use Monitoring (EUM). Sales and assistance may be made to countries only for purposes of internal security, legitimate self-defense, for preventing or hindering the proliferation of weapons of mass destruction and of the means of delivering such weapons, civic action, or to permit the recipient country to participate in regional or collective arrangements consistent with the United Nations (UN) Charter, or requested by the UN (AECA, section 4 (22 U.S.C. 2754); and FAA, section 502 (22 U.S.C. 2302). Proper use of U.S.-origin items is a joint responsibility of the recipient and U.S. personnel. U.S. representatives have primary responsibility until items are physically transferred to the recipient. The recipient then assumes this responsibility, including transfer to a third party or other disposal or change in end-use, based on agreements under which transfers are made. See Chapter 8 for information on EUM.

C4.2.4. English Language. The SCO Chief must ensure that a forwarding letter accompanies each contractual document (e.g., LOA) emphasizing that the English language text is the official binding version. The host country is responsible for translating documents. When the SCO Chief determines an informal translation of an English text is in the U.S. interest, the U.S. may provide an informal translation, for purposes of communicating between USG and purchaser representatives only, using the same practices as the U.S. Diplomatic Mission. Translators must clearly mark the translated document “Informal and unofficial translation - English text governs.”

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Page Updated 06-11-2012