DEFENSE SECURITY COOPERATION AGENCY
MEMORANDUM FOR :
Additional Transportation Charges for Foreign Military Sales (FMS) Shipments (DSCA Policy 08-04) [SAMM E-Change 100]
This memorandum provides guidance for billing and paying additional transportation charges related to delays in FMS shipments caused by freight forwarders. It also provides updates to the Security Assistance Management Manual (SAMM) to add information on such additional transportation charges that are permissible as part of FMS shipments.
Payments for allowable detention and demurrage costs (see definitions below) charged by carriers of FMS shipments are to be charged at the actual cost to the applicable FMS case and line. The Defense Logistics Agency and the Military Services will direct billings to the appropriate MILDEP International Logistics Control Office (ILCO) for distribution to the case manager for processing the payment. If a delayed shipment relates to more than one FMS shipment, the costs will be pro-rated among the shipments according to total purchase costs. Case managers must obtain the approval of DSCA (Business Operations Directorate), before processing billings in excess of $50,000, or 10 percent of the case value. If a billing for additional transportation results in an increase in cost for the line, the case must be modified to include the additional charges.
The attached changes will be included in the automated version of the SAMM found on the DSCA Web Page as SAMM E-Change 100. If you have any questions concerning this policy, please contact Ms. Rita Chico, DSCA DBO/FPA, at (703) 602-3632, e-mail email@example.com
DEPUTY ASSISTANT SECRETARY OF THE ARMY
SAMM E-Change 100
Effective immediately, the SAMM, Chapters 7 and 9 are updated as follows: