C7.5.1. Definition. A Foreign Military Sales (FMS) freight forwarder is a private company under contract to the FMS purchaser to coordinate, receive, consolidate, stage materiel, and arrange for onward movement to a final destination. The contract should describe the specific functions to be performed by the freight forwarder. A FMS freight forwarder’s responsibilities may vary under the terms of the contract with the purchaser, but in all cases, a FMS freight forwarder acts as an agent of the purchaser, but cannot act on behalf of the government as a Designated Government Representative.

C7.5.2. Selection of a FMS Freight Forwarder. Selection of a FMS freight forwarder must be made by the FMS purchaser. Department of Defense personnel must remain impartial and cannot recommend a FMS freight forwarder to a purchaser or direct a FMS freight forwarder how to conduct operations.

C7.5.3. Requirements for FMS Freight Forwarders.

C7.5.3.1. FMS freight forwarders must maintain a valid registration as an exporter with the Department of State’s Directorate of Defense of Defense Trade Controls (PM/DDTC) consistent with the International Traffic in Arms Regulations (ITAR).

C7.5.3.2. A FMS freight forwarder must be identified to PM/DDTC in writing by the purchaser’s U.S.-based embassy as its authorized FMS freight forwarder.

C7.5.3.3. If the FMS freight forwarder is expected to handle classified materials, it must maintain appropriate security clearances and facility authorizations with the Defense Security Service. Only FMS freight forwarders that have a valid facility clearance and approved storage capabilities at the appropriate level are eligible to take custody of classified material for delivery as freight. FMS freight forwarders that only process unclassified paperwork and make arrangements for the delivery of classified material do not require a facility clearance.