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Chapter 8

Chapter 8, End-Use Monitoring (EUM), describes the Golden Sentry EUM plan and procedures for routine and enhanced EUM of defense articles and services provided by the USG to partner nations. It includes procedures for assisting countries in fulfilling Department of State (DoS) requirements prior to retransfers, changes of end-use, or disposals, and for verifying appropriate demilitarization requirements.

Section Title
C8.1. Definition and Purpose of End-Use Monitoring
C8.2. Golden Sentry
C8.3. Routine EUM
C8.4. Enhanced EUM
C8.5. Visit Policy and Guidance
C8.6. Unauthorized End-Use
C8.7. Third Party Transfers, Changes in End-Use, and Disposal
C8.8. Changes in End-Use and EUM at the Time of Disposal

C8.1.1. The Golden Sentry EUM program is designed to verify that defense articles or services transferred by the United States Government (USG) to foreign recipients are being used in accordance with the terms and conditions of the transfer agreement or other applicable agreement. In accordance with Section 505 of the Foreign Assistance Act (FAA) (22 U.S.C. 2314), as amended, and the Section 3 (22 U.S.C. 2753) and Section 4 (22 U.S.C. 2754) of the Arms Export Control Act, and as reflected in the Letter of Offer and Acceptance (LOA) Standard Terms and Conditions, recipients must agree to use U.S.-provided defense articles, training, and services only for their intended purpose; not to transfer title to, or possession of, any defense article or related training to anyone not an officer, employee, or agent of that country or of the USG without prior written consent of the USG; to maintain the security of any article with substantially the same degree of protection afforded to it by the USG; and to permit observation and review by, and to furnish necessary information to, representatives of the USG with regards to use of such articles. EUM provides USG oversight to ensure these conditions are met. All potential end-use violations must be reported through DoS channels. Information regarding any potential violations should also be forwarded to the Golden Sentry program team at the Defense Security Cooperation Agency (DSCA) Directorate for Security Assistance (DSA), the appropriate Combatant Commander (CCDR), and the appropriate U.S. Military Department (MILDEP).

Table C8.T1. End-Use Monitoring Legal and Policy References

Reference Subject

AECA, Section 40A (22 U.S.C. 2785)

Requires EUM of defense articles and services sold, leased, or exported under the AECA or the FAA.

AECA, Section 38(g)(7) (22 U.S.C. 2778(g)(7)

Establishes standards for identifying high-risk exports for end-use verification.

AECA, Section 3(g), Section 4 (22 U.S.C. 2753(g) and 2754) and 2754)

Requires agreements for the sale or lease of articles on the United States Munitions List (USML) (made after November 29, 1999) to state that the USG retains the right to verify credible reports that the article(s) has been used for purposes not authorized under AECA, section 3.

FAA, Section 505 (22 U.S.C. 2314)

Requires Recipient agreement to use the materiel/services properly; return net proceeds from sales as required; and permit observation of the end-use of articles, services, and training.

DoD Issuance 2030.08

Implementation of Trade Security Controls (TSC) for Transfers of DoD U.S. Munitions List (USML) and Commerce Control List (CCL) Personal Property to Parties Outside DoD Control.

DoD Issuance 4140.66

Registration and End-Use Monitoring of Defense Articles and/or Services.

DoD 4160.28-M

Defense Demilitarization Manual

DoD Manual 5100.76-M

Physical Security of Sensitive Conventional Arms, Ammunition, and Explosives.

C8.2.1. Section 40A of the AECA (22 U.S.C 2785) requires the President to establish an EUM program to improve accountability with respect to defense articles sold, leased, or exported under the AECA or FAA. The Director, DSCA, has been delegated authority by the Secretary of Defense and Under Secretary of Defense, Policy (USD(P)) to administer DoD’s Golden Sentry EUM program, to comply with Section 40A of the AECA. Section 40A requires the EUM program be designed to provide reasonable assurance, to the extent practicable, that the recipient is complying with the requirements imposed by the USG with respect to the use, transfer, and security of defense articles and defense services. The program must also provide for the end-use verification of defense articles and services that incorporate sensitive technology, and/or are particularly vulnerable to diversion or other misuse, or whose diversion or other misuse could have significant consequences. Congress requires an annual report describing actions taken to implement Section 40A , including a detailed accounting of the costs and number of personnel associated with the monitoring program.

C8.2.2. Golden Sentry’s objective is to ensure compliance with technology control requirements in order to minimize security risks to the United States, partner nations, and Allies. EUM includes all actions to prevent misuse or unauthorized transfer of defense articles or services from title transfer until disposal. The type of defense article or service generally determines the level of monitoring required. The Director, DSCA, may also determine, in consultation at the General Officer, Flag Officer, or Senior Executive Service (SES) level, that a change in physical security and accountability monitoring may be warranted after considering the specific defense article or service in question and based on assessment of the threat to security in the area or for other compelling reasons. When changing events or other unusual circumstances prompt Security Cooperation Organizations (SCO) concern regarding the end-use and security of U.S.-provided defense articles and services, SCOs should contact DSCA (SA Directorate) to obtain further guidance. SCO requests for modification in physical security and accountability monitoring must be formally submitted in writing and endorsed by the Combatant Commander (CCDR) prior to being forwarded to DSCA.

C8.2.3. EUM Responsibilities. Monitoring the use of U.S.-origin items is a joint responsibility of the partner nations and the USG, to include the Military Departments (MILDEPs), the Combatant Commands (CCMDs), and the SCOs. USG representatives have full responsibility for defense articles until title is transferred to the partner nation. The partner nation assumes this responsibility for transferred items based on the terms under which the transfers are made, including restrictions on physical security and accountability. USG representatives retain a continuing responsibility under Golden Sentry to assist DSCA to verify the appropriate end-use and security of U.S.-origin defense articles and defense services sold or transferred on a government-to-government basis. Table C8.T2. llists the EUM responsibilities for various DoD organizations.

Table C8.T2. DoD End-Use Monitoring Responsibilities

Organization Responsibility

DSCA (SA Directorate)

  • Manage DoD's Golden Sentry EUM program and provide subject matter expertise for all EUM-related issues.

  • Develop and promulgate EUM policy guidance within DoD and the interagency.

  • Draft and submit an annual report to Congress through the Department of State describing the actions taken to execute the Golden Sentry program, including a detailed account of the resources and personnel associated with the monitoring program in accordance with AECA Section 40A(c) (22 U.S.C. 2785(c)).

  • Review LOAs and other government-to-government agreements to ensure they include the appropriate EUM notes, provisos, and transfer conditions.

  • Ensure that defense technologies and weapons systems designated for Enhanced EUM (EEUM) controls transferred via government-to-government programs contain appropriate accountability and security notes and provisos, and work with the MILDEPs in the development of EEUM control notes and checklists to verify compliance.

  • Oversee the fiscal budget planning, programming, and execution of the Foreign Military Financing (FMF) Administrative funding of EUM activities.

  • Work to improve monitoring of the phases of the export process that are most susceptible to diversion or retransfer: shipping, use, storage, and disposal.

  • Forward reports of possible AECA and FAA violations to the DoS Bureau of Political-Military Affairs, Regional Security and Arms Transfer Division (DoS (PM/RSAT)).

  • Participate in USG and international meetings when EUM is an agenda item.

  • Conduct visits to the CCMD Headquarters and the Areas of Responsibility (AOR), SCOs, partner nations, and international organizations for:

    • Compliance Assessment Visits (CAV) to assess SCOs' compliance with Golden Sentry policy and partner nations' compliance with specific physical security and accountability agreements, provisos, and other terms of sale.

    • Investigative Visits and special End-Use Monitoring checks to examine possible violations of partner obligations imposed by the transfer agreement or other applicable agreement pursuant to AECA Section 3 (22 U.S.C. 2753) and FAA, Section 505 (22 U.S.C. 2314).

    • Familiarization and Assistance Visits (FAV) to assist SCOs and partner nations to develop EUM programs.

  • Draft and submit CAV reports to the appropriate CCMD, SCO, other DoD organizations, and DoS to ensure EUM compliance.

  • Publish and disseminate EUM best practices and lessons-learned to the SC community through EUM Newsletters posted in the SCIP-EUM database.

  • Incorporate EUM into workforce training programs, and support efforts by the Defense Institute of Security Cooperation Studies (DISCS) to develop computer-based and in-residence training to educate the SC community on the Golden Sentry program.

MILDEPs and Implementing Agencies (IAs)

  • Maintain a Golden Sentry primary point of contact (POC).

  • Assist DSCA in developing EUM policy and promulgate EUM policy within the MILDEP.

  • Ensure that all EUM activities are captured during the budget planning, programming, and execution cycles; and that FMF Administrative funds are requested to perform EUM functions.

  • In coordination with the DSCA (SA Directorate), identify and provide DSCA a recommended listing of sensitive technologies and defense articles to be considered for EEUM management.

  • In coordination with DSCA, develop physical security and accountability provisos for inclusion on LOAs transferring defense articles designated for EEUM.

  • Conduct pre-delivery site survey certifications of partner nations' facilities storing weapons and defense systems designated for EEUM and provide DSCA (SA Directorate) and partner nation SCOs the results of all site survey certifications performed. Additionally:

    • Provide DSCA on a quarterly basis, a current list of all security managers, by weapon type, responsible for performing site survey certifications of EEUM-designated items’ storage facilities.

    • Develop site survey certification checklists that comply with DoD Manual 5100.76-M Standards and submit them to DSCA for review to ensure standardization.

    • Provide DSCA, at least semiannually, a current list of all facilities certified to store EEUM-designated items.

    • Provide DSCA a copy of all site survey certification reports within 30 calendar days of conducting the site certification.

    • Maintain personnel qualified on site survey certification procedures and requirements, and coordinate with DSCA and the other MILDEPs before site survey certification visits are performed.

  • Provide DSCA (SA Directorate) feedback and reports based on observations during visits of any potential violations of transfer agreements or other applicable agreements pursuant to AECA Section 3 (22 U.S.C. 2753) and FAA, Section 505.

  • In coordination with DSCA (SA Directorate) develop security and accountability checklists for EEUM-designated technologies and/or specific individual transfers designated for EEUM.

  • Submit to DSCA recommendations of defense articles that no longer require EEUM management.

  • Provide a monthly delivery record with serial numbers of EEUM items to DSCA (DSCA.NCR.BPC.MBX.EEUM-REPORTS@mail.mil) for input into the SCIP-EUM database.

  • Notify SCOs and the EUM Help Desk in advance of the shipment of EEUM-designated items.

  • Review Military Articles and Services List (MASL) submissions for items identified for EEUM.

  • Work to improve the monitoring of the phases of the export process that are most susceptible to diversion or retransfer:

    • Shipping

    • Use

    • Storage

    • Disposal

  • Assist DSCA with investigative visits regarding potential violations of obligations imposed by applicable agreements pursuant to AECA Section 3 (22 U.S.C. 2753) and FAA Section 505 (22 U.S.C. 2314).

  • Support Golden Sentry goals and objectives in bilateral discussions.

  • Support Golden Sentry requests for subject matter experts on EUM site visits.

  • Incorporate EUM into workforce training programs.

Combatant Commands (CCMD)

  • Maintain a Golden Sentry primary POC.

  • Support DSCA CAVs by requiring SCOs to correct CAV-identified discrepancies in SCO programs as well as ensure that SCOs oversee and monitor resolution of CAV-identified discrepancies in partner nation compliance with terms of sale.

  • In accordance with DoD Directive 5132.03:

    • Ensure that EUM functions required by Golden Sentry policy are assigned as a primary responsibility to SCOs (including Defense Attaché Offices or U.S. Diplomatic Missions fulfilling SA responsibilities) within the AOR;

    • Ensure that SCO personnel assigned EUM duties complete EUM online training provided through DSCA’s DISCS and SCIP.

    • Ensure that all EUM activities are captured during the fiscal Budget Planning, Programming, and Execution cycles and that FMF Administrative funds are requested to perform EUM functions;

    • Provide adequate FMF Administrative funds to SCOs to perform EUM; and

    • Assess the effectiveness of EUM compliance during Inspector General or similar evaluation team visits.

  • Develop and promulgate policy, Standard Operating Procedures (SOPs), and/or Compliance plans to support execution of the Golden Sentry program and send via e-mail to: dsca.eumhelpdesk@mail.mil.

  • Ensure SCOs conduct Routine and Enhanced EUM in accordance with Golden Sentry EUM policy and procedures and annotate all accountability and physical security checks in the SCIP-EUM database.

Security Cooperation Organizations (SCOs) (including Defense Attaché Offices and U.S. Diplomatic Missions with Security Assistance responsibilities)

  • Designate in writing and maintain a Golden Sentry primary POC. The EUM POC must be a USG employee (military or civilian) and a U.S. citizen.

  • Ensure that EUM functions required by DoD’s Golden Sentry program are assigned as a primary SCO responsibility.

  • Ensure that SCO personnel assigned EUM duties complete EUM online training provided through DSCA’s DISCS and SCIP.

  • Functions that must be performed by a USG employee who is also a U.S. citizen:

    • Serve as the designated SCO EUM POC.

    • Develop EUM SOPs and coordinate Partner Nation Night Vision Devices (NVD) Control Plans and upload the signed documents to the SCIP-EUM database or send them via e-mail to dsca.eumhelpdesk@mail.mil for record keeping in the SCIP-EUM database.

    • Conduct EEUM in accordance with established checklists to verify recipients are complying with the physical security and accountability provisos annotated in LOAs containing EEUM-designated items.

    • Using the SCIP-EUM database, establish and maintain a baseline of all EEUM-designated defense articles and services exported via government-to-government transfers.

    • Assist the partner nation in submitting third party transfer and change of end-use requests and verify and document disposal/destruction of defense articles. See SAMM Section C8.4.1.4.

    • Verify that the partner nation is providing timely notification of EEUM-designated missiles fired in testing, training or combat.

    • Report potential violations regarding end use, transfer or security to the CCMD, DSCA (SA Directorate) and the Department of State (PM/RSAT).

    • Maintain control of spare Golden Sentry seals (cables and labels).

  • Functions that may be performed by direct hire Locally Employed Staff, or by a U.S. contractor, when directly supervised by a USG employee:

    • Report immediately to DSCA the destruction or loss of any Routine or EEUM-designated item and annotate the appropriate disposition in the SCIP-EUM database (e.g., active, expended, destroyed, etc.).

    • Review LOAs and other instruments authorizing government-to-government transfer of defense articles and services (e.g., Memoranda of Agreement and Understanding) for notes or provisos requiring specific physical security or accountability procedures.

    • Conduct Routine EUM checks to verify recipients are complying with applicable agreements regarding use, transfer restrictions, and security of defense articles.

    • Ensure that defense articles designated for EEUM are entered by serial number in the SCIP-EUM database and that scheduled inventories are annotated and updated as required for each EEUM commodity.

    • Ensure that all costs for conducting EEUM activities are captured during the fiscal budget programming and execution cycles. Submit projected FMF Administrative funding requirements to the CCMDs and DSCA via the Defense Agencies Initiative (DAI) Code 210.15.

    • Support Golden Sentry Familiarization Assistance Visits (FAVs), CAVs, and Investigative Visits as described in Tables C8.T3. and Tables C8.T4. and SAMM Section C8.6.3.

    • When directed by the Chief of Mission, on a case-by-case basis, conduct Blue Lantern end-use checks for commercially-exported defense articles and include the cost of performing these checks in the annual FMF Administrative budget submission via the DAI.

    • Take steps to improve the monitoring process.

    • Respond to queries pertaining to the shipping, receipt, use, or disposal of defense articles and services provided to partner nations.

Defense Institute of Security Cooperation Studies (DISCS)

  • Maintain a Golden Sentry primary POC.

  • Develop computer based and resident EUM training to educate the SC community on the Golden Sentry program policy and procedures. Incorporate formal EUM training into security cooperation workforce training curricula.

C8.2.4. Post-delivery Monitoring. Post-delivery monitoring is performed by USG personnel assigned to SCOs or deployed to the partner nation in support of SCO functions. The Golden Sentry program employs two post-delivery monitoring methodologies to perform DoD’s EUM responsibilities: Routine and Enhanced EUM (REUM and EEUM, respectively). To assist SCOs in conducting post-delivery monitoring of both types, an EUM application is available in the Security Cooperation Information Portal (SCIP-EUM) as a repository of data, to record REUM and EEUM checks, and as a means to generate reports. SCOs must develop EUM Standard Operating Procedures (SOP) to implement country-specific EUM policy and procedures. A copy of the SOP must be forwarded to dsca.eumhelpdesk@mail.mil. Written SOPs must contain at a minimum the following information:

Table C8.T3. SOP Minimum Information Requirements

# SOP Minimum Information Requirements
1

EUM responsibilities and procedures for conducting Routine and Enhanced-EUM (EEUM).

2

Partner nation EUM points of contact and procedures for coordinating and conducting EUM-related visits.

3

Procedures for conducting timely physical security checks of the storage facilities and inventories of EEUM-designated defense articles and services in accordance with Golden Sentry checklists; use of the SCIP-EUM database to track inventories and maintain an accurate disposition of EEUM-designated items; maintenance of records of Routine and Enhanced EUM checks (Checklists); and notifying the partner nation of all EEUM checks performed for information and/or corrective action.

4

Procedures for maintaining an accurate baseline of EEUM-designated items transferred to the partner nation as per the EEUM Reconciliation Report provided in the SCIP-EUM) database, and obtaining partner nation reports of losses, firings/expenditures, or disposal of all EEUM-designated defense articles.

5

Procedures for verifying the demilitarization and disposal of EEUM-designated items; reporting inventories, losses, theft, unauthorized access, third party transfers/disposal/damaged/expended defense articles, and possible violations.

6

Procedures for capturing and submitting to the CCMD and DSCA actual costs and projected FMF Administrative funding required to perform EEUM functions.

C8.3.1. Routine EUM (REUM) is required for all defense articles and services provided via government-to-government programs. SCO personnel are required to observe and report to the CCMD, DSCA, and DoS any potential misuse or unapproved transfer of U.S.-origin defense articles. SCO personnel should perform REUM checks at every available opportunity in conjunction with other security cooperation functions, during visits to the partner nation’s installations, through interaction with other assigned embassy personnel, and from any other readily available or opportune source of information. SCOs must conduct REUM checks at least quarterly, and must document all REUM checks using the electronic REUM checklists available in the SCIP-EUM database.

C8.3.1.1. To assist SCOs in conducting REUM checks, DSCA has developed an FMS REUM Summary Report located in the SCIP-EUM database under the Queries/Reports menu. This report provides a list of specific categories of defense articles exported via FMS that includes, but is not limited to: battle tanks, armored combat vehicles, artillery systems, fixed and rotary wing aircraft, unmanned aerial systems, warships and military vessels, missiles and missile systems, military vehicles, bombs, crew served and individual weapons, and night vision systems. To assist SCOs in electronically documenting REUM checks performed, DSCA developed a REUM checklist template located in the SCIP-EUM database under the Support-Policy/Procedures Memos.

C8.3.2. Articles or Services Requiring Additional Controls on End-Use. There are instances in which particular items normally subject to Routine EUM are transferred with notes restricting the conditions under which they may be transported, stored, or employed. SCOs should be aware of these restrictions and alert to indications or reports that suggest failure to comply.

C8.3.2.1. Arms, Ammunition and Explosives (AA&E). AA&E items require special protection and security measures. The DoD applies stringent AA&E controls while these items are in U.S. custody, and the same standards must be applied to the items upon release to the purchaser. During Case Development, Implementing Agencies should assess secure transportation and distribution options that support customer preferences. A detailed Transportation Plan is required by DoD prior to delivery of the materiel. Once approved, a Transportation Plan becomes an integral part of the LOA and is available for review by U.S. Customs and security officials. Although recipient countries generally do not assume control of sensitive AA&E items within the continental United States, except as cargo loaded and prepared for departure, USG security standards must apply throughout the lifecycle of the weapon system (e.g., transportation, delivery, testing, operational use, storage, and destruction processes). Additionally, a site survey may be required to ensure that appropriate physical security measures are in place at the destination prior to the delivery of the weapon systems. See DoD 5100.76-M, and the Section C7.15. for more information regarding AA&E items.

C8.3.2.2. White Phosphorous and Cluster Munitions. Munitions containing White Phosphorous (See Section C4.4.8.) and cluster munitions permissible for transfer under U.S. law (See Section C4.4.6.) are transferred with restrictions on the conditions under which they may by employed. SCOs should be aware of partner nation inventories of these weapons and the restrictions on them, and alert to reports of how the partner nation is employing them in operations. SCOs should report to DSCA (SA Directorate) any information that suggests these items are not being used in accordance with the terms under which they were sold.

C8.4.1. Definition. Enhanced EUM, based on the principle of trust with verification, is required for defense articles and services or individual transfers specifically designated for EEUM by the MILDEP's export policy, the inter-agency release process, or by DoD policy as a result of consultation with Congress. EEUM requires physical security assessments of the storage facilities and serial number inventories of a specific watch list of defense articles to verify compliance with the transfer conditions of the LOAs and other transfer agreements. All EEUM-designated defense articles are required to be sold on defined order lines using an EEUM-coded Military Articles and Services Listing (MASL) and are accompanied by specialized physical security and accountability notes. The defense articles listed in Table C8.T4. below have been designated for EEUM for all FMS-eligible countries. Other defense articles may require EEUM and additional U.S. control measures (e.g. U.S. custody and/or electronic monitoring) on a case-by-case basis as determined in the transfer approval process.

Table C8.T4. Defense Articles Designated for EEUM for all FMS-eligible Countries

EEUM-Designated Defense Articles Description

Advanced Medium Range Air-to-Air Missiles (AMRAAM)

AMRAAM or other specified AMRAAM defense articles (Guidance Control Units (GCUs)).

Air Intercept Missiles-9X (AIM-9X)

AIM-9X Missiles, Guidance Units (GU), Captive Air Training Missiles (CATM), and Special Air Training Missiles (NATM).

Communication Security (COMSEC) Equipment

COMSEC items are managed and controlled by the National Security Agency (NSA).

Harpoon Block II Missiles

Harpoon Block II missile and/or other specified Harpoon Block II Missile defense articles (Retrofit kits and GCUs).

Javelin Missiles and Command Launch Units (CLUs)

Javelin Missiles and CLUs only.

Joint Air-to-Surface Standoff Missiles (JASSM)

JASSM or other specified JASSM defense articles (Instrument Telemetry Vehicle (ITV)).

Joint Standoff Weapons (JSOW)

JSOW or other specified JSOW defense articles (Captive Flight Vehicles (CFV), and Missile Simulator Units (MSU)).

Large Aircraft Infrared Countermeasures (LAIRCM)

LAIRCM components as specified in the LOA note.

Night Vision Devices (NVDs) (Man-portable Devices only)

For each FMS offer of man-portable NVDs, the Implementing Agency will include the DSCA NVD Approval memorandum as supporting documentation to the LOA. For NVD exports, the partner nation must provide the SCO a copy of the physical security and accountability control plan (NVD Control Plan) signed by a partner nation competent authority for the protection and security of NVDs. The NVD Control Plan must be provided within 30 days of signing the LOA, and must direct all subordinate organizations to comply with the plan. NVDs will not be delivered until receipt of the NVD Control Plan. SCO will review and maintain a copy of the purchaser's NVD Control Plan and forward a copy to dsca.eumhelpdesk@mail.mil. SCOs must provide a written report to DSCA (SA Directorate) within 30 calendar days of any reported loss, theft, or unauthorized access of any NVD provided to the partner nation.

Standard Missiles-3 (SM-3)

Standard Missiles-3 (SM-3)

Standard Missiles-6 (SM-6)

Standard Missiles-6 (SM-6)

Standoff Land Attack Missiles Expanded Response (SLAM-ER)

SLAM-ER or other specified SLAM-ER defense articles, (Retrofit kits and Guidance Navigational Units (GNU)).

Stinger Missiles and Gripstocks

Stinger Missiles designated for EEUM may include, but are not limited to: MANPADS, AVENGER, Linebacker, and Vehicle Mounted Stinger Launch Platform (VMSLP).

Terminal High Altitude Area Defense (THAAD)

THAAD missiles or Radar systems

Tomahawk Missiles

Tomahawk Missiles

Tube-Launched, Optically-Tracked, Wire-Guided Missiles (TOW-2B)

TOW-2B Missiles only.

Unmanned Aircraft Systems (UAS) designated as Category I by the Missile Technology Control Regime (MTCR) or as specified in the LOA

UAS and system components as specified in the LOA note.

C8.4.1.1. SCOs are responsible for maintaining an accurate baseline of all EEUM-designated defense articles exported to the partner nation. The baseline must be maintained by using the EUM application in the SCIP-EUM database to document all EEUM-designated items delivered to the partner nation, inventory monitoring and historical data. The SCIP-EUM database provides a centralized, secure information repository of EUM data gained from deliveries and inventories of all EEUM-designated defense articles transferred through FMS, grant assistance, and other security cooperation programs. The SCIP-EUM database provides a Reconciliation Report of EEUM-designated defense articles by country that SCOs must use as the basis for establishing the baseline and all required inventories and reporting. Recording in the SCIP-EUM database includes accountability of inventories and final disposition, i.e., expended, lost, and destroyed, of all EEUM-designated defense articles. To ensure that an accurate baseline of the EEUM-designated items is maintained, SCOs must ensure the partner nation reports any losses, firings/expenditures, or disposal of any EEUM-designated defense article as required in the transfer agreement and enter the information in the SCIP-EUM database. SCOs must immediately report losses of EEUM-designated defense articles to DSCA (SA Directorate), the CCMD and DoS PM/RSAT for situational awareness. After the initial report, the SCO must work with the partner nation to obtain a written report with details of the incident and forward the report to DSCA (SA Directorate) within 30 calendar days. The report should include the steps being taken to recover the equipment (if applicable) and to prevent recurrence. SCOs must annotate the loss in the SCIP-EUM database by changing the item(s) disposition and must ensure that the partner nation’s report is properly uploaded in the database as supporting documentation and historical record of the loss.

C8.4.1.2. SCOs are required to conduct EEUM checks through planned/coordinated visits to the partner nation’s installations to verify in-country receipt of EEUM-designated defense articles by serial number within 90 days of delivery. If during the conduct of the initial inventory the items are located at their storage sites (not temporary holding areas such as customs facilities), an assessment of the storage site(s) must also be performed. Subsequent EEUM checks require serial number verification and physical security assessments of storage sites or other facilities where EEUM-designated defense articles are kept to verify that recipients are complying with the terms and conditions stated in the transfer agreements. SCOs must visually inventory 100 percent of in-country EEUM-designated defense articles within one year from the last inventory performed, except for those EEUM-designated defense articles not available for observation (deployed, returned to the United States for repair, etc.), or as stipulated otherwise in the SCIP-EUM database or by separate policy memo. The inventory must include review of the recipient’s accountability procedures and inventory records as required by the LOA or other transfer document. EEUM-designated items not available for inventory during their annual inventory cycle due to deployment, returned to the United States for repair, or other legitimate reason, must be inventoried within 90 days after returning from deployment or repair. SCOs must confirm with the respective MILDEP program office or U.S. vendor, the accountability of all EEUM-designated items under repair prior to annotating the items’ deployed status in the SCIP-EUM database. SCOs will provide the partner nation formal notification of all findings noted during EEUM checks and request the partner nation to provide within 60 days a report specifying the actions being taken to correct the findings.

C8.4.1.3. EEUM checks must be performed using Golden Sentry physical security and accountability checklists developed by the MILDEPs and the policy guidance and procedures published in the SCIP-EUM database. One checklist must be used and filled out for each storage facility assessed. All EEUM checks must be recorded using the electronic fillable checklists, and the checklists must be attached to the inventory records electronically via the SCIP-EUM database. Golden Sentry seals (cables and labels) can be installed on containers (if feasible and the partner nation allows it), to increase security of the missiles and reduce labor during future annual inventories. The seals are obtained from DSCA’s EUM team but must be controlled by USG personnel to prevent proliferation.

C8.4.1.4. EEUM monitoring of COMSEC equipment in non-NATO nations who have signed Communication Interoperability and Security Memorandums of Agreement (CISMOAs) is accomplished by SCOs in coordination with FMS-funded U.S. COMSEC custodians. In non-NATO nations that have signed a CISMOA but have not established an FMS case to fund U.S. COMSEC custodians, the CCMDs must ensure that SCOs perform the required security and accountability checks of all COMSEC devices transferred through FMS.

C8.4.2. EEUM requires commitment of USG resources; therefore, all documents designating defense articles for EEUM by the MILDEPs or OSD(P) will be approved and signed at the General Officer, Flag Officer or SES ‎level. Documents designating defense articles for EEUM through the interagency technology release process will be signed by the respective committee chairman. Some defense articles may require additional U.S. control measures (e.g. U.S. custody) as a condition of the transfer approval. In these cases, all costs necessary to implement the additional USG control measures levied as part of the transfer approval (beyond regular EEUM checks as stated in Sections C8.4.1. through C8.4.1.3. of this chapter) will be paid by the Purchaser. The Purchaser’s obligation to pay for these additional security measures will be stated in the LOA security and accountability note. Figure C8.F1. depicts the decision process used to determine whether an item or an individual transfer will be identified and designated for EEUM. DSCA staffing to ensure that all required actions are taken to add defense articles to EEUM list include the following.

C8.4.2.1. Determining the MASL EUM code. DSCA (DSA/AMP/EUM), will coordinate with DSCA (DBO) and the respective MILDEP to determine the item’s MASL EUM code. The MASL EUM code of an item designated for EEUM for all FMS exports will be coded as "E". These items are defined as "standard" EEUM-designated items. The MASL of an item designated for EEUM only for a specific FMS transfer will be coded as "R" unless there is a compelling reason not to do so. These items are defined as "non-standard" EEUM-designated items.

C8.4.2.2. Developing LOA physical security and accountability EEUM Note. DSCA (DSA/AMP/EUM), in coordination with the MILDEPs / IAs (Headquarters and Program Offices), the Defense Technology Security Administration (International Security Programs) and DSCA (STR, OGC) will lead all staffing efforts to ensure that the MILDEPs/IAs develop the physical security and accountability (EEUM) notes. MILDEPs/IAs are responsible for providing DSCA SME support in drafting security, accountability, and USG control measures included on the LOA to ensure that the parameters levied in the EEUM-designation are met.

C8.4.2.3. Publishing physical security and accountability EEUM notes for inclusion on the LOA. DSCA (DSA/AMP/EUM), will coordinate with the DSCA Strategy Directorate, Strategic Planning and Integration Division, to publish in the SAMM all standard EEUM notes. Standard EEUM Notes will be included in the LOA by DSCA/DSA’s Case Writing Division. Non-standard EEUM Notes (for items designated for EEUM only for specific FMS exports) will not be published in the SAMM and will be included in the LOA by the respective MILDEP/IA program office responsible for initial development of the LOA.

C8.4.2.4. Developing and validating EEUM checklists. DSCA (DSA/AMP/EUM), will coordinate with the respective MILDEP/IA, as required, to develop and publish in the SCIP-EUM database the inspection checklist for the weapons system or technology designated for EEUM. SCOs and DSCA (DSA/AMP/EUM) will validate the draft inspection checklist during EEUM checks, and will provide the MILDEP/IA recommendations for improvement when required.

Figure C8.F1. Adding or Removing Defense Articles on the Enhanced EUM List

C8.4.3. Site Surveys/Certification of Storage Facilities. MILDEPs are responsible for conducting site surveys and certifying foreign countries’ weapons storage facilities in accordance with DoD Manual 5100.76-M, "Physical Security of Sensitive Conventional Arms, Ammunition and Explosives," before EEUM-designated weapons systems are delivered or moved to a new or uncertified facility. MILDEPs are also responsible for developing checklists to conduct site surveys and certify storage facilities using criteria from DoD Manual 5100.76-M and submitting them to DSCA for review to ensure standardization. MILDEPs will provide DSCA a current list, by weapon type, of all security managers responsible for performing site survey certifications. MILDEP security managers will coordinate site survey certification visits with DSCA and the other MILDEPs in advance to prevent the need to conduct a new site survey if another MILDEP has already certified the same facility for proper storage of the same weapon category. MILDEPs will provide DSCA a copy of all site survey certification reports within 30 calendar days of conducting the site certification, and will forward to DSCA at least semiannually a current list of all facilities certified to store EEUM-designated items. All MILDEP facility certification/site survey reports will document any areas where the facilities do not meet the physical security requirements stated on DoD Manual 5100.76M or stipulated on the LOAs, and will identify if any acceptable compensatory measures are in place or required.

C8.4.4. EEUM Cost Reporting Requirements. DSCA is responsible for submitting an annual report to Congress, as required by AECA Section 40A (22 U.S.C. 2785), through DoS PM that includes the costs for executing the Golden Sentry program.

C8.4.4.1. At the end of each fiscal year, the CCMDs and SCOs are required to submit the actual annual costs and future two-year FMF Administrative budget projections associated with conducting EEUM, including travel to perform physical security and accountability inventories of in-country equipment and future deliveries and to attend EUM training. To maintain accurate cost data and reporting, EUM managers should ensure that upon completion of each EEUM visit that the cost is documented and entered into the DAI Code 210.15. Each entry will include a brief description of the EEUM function performed, e.g., number of personnel, equipment inventoried, locations visited. All costs necessary to implement additional USG control measures (e.g. U.S. custody) levied as a condition of the transfer will be paid by the Purchaser.

C8.4.4.2. On a case-by-case basis, SCOs may request, through the CCMD, FMF Administrative funding to meet unexpected requirements to perform EEUM checks due to disposal verifications or other unforeseen EUM-related activities for which funding was not requested in the regular budget cycle. Unfunded requirements must be submitted to the appropriate CCMD for approval. When CCMD FMF Administrative funds are not sufficient or available, CCMDs may request FMF Administrative funding from DSCA (Business Operations Directorate) to meet unforeseen SCO EEUM-related requirements.

C8.4.4.3. SCO questions regarding entries for conducting EEUM functions in DAI or unfunded requirement requests should be submitted to the CCMD. CCMD questions should be sent to DSCA (Directorate for Business Operations).

C8.5.1. EUM Visit Guidance. The Golden Sentry EUM program includes in-country visits to assess EEUM compliance programs. There are three types of EUM visits:

  1. Familiarization and Assistance Visits (FAV)

  2. Compliance Assessment Visits (CAV)

  3. Investigation Visits

Each visit is unique to the partner nation and equipment being assessed.

C8.5.2. EUM Familiarization and Assistance Visit (FAV) Guidance. The purpose of an EUM FAV is to assist the partner nation, the SCO (or equivalent organization/office), and the CCMD in developing an effective EUM compliance program. It also provides an opportunity for the DSCA EUM representative to determine the requirements for conducting a potential future EUM CAV. A FAV may be prompted by a request from the partner nation, SCO, or the CCMD to validate EUM programs. A FAV can also be prompted by the introduction of specific equipment into the region/country. Table C8.T5. outlines the timeline and formal requirements for a well-coordinated and documented EUM FAV. Informal correspondence may occur prior to these actions.

Table C8.T5. EUM Familiarization and Assistance Visit (FAV) Timeline and Requirements

Event No. Timeframe Description

1

Not later than 30 calendar days prior to visit

  • DSCA (SA Directorate) transmits a Country/Theater Clearance Message in accordance with DoD Foreign Clearance Guide that identifies major topics to be discussed.

2

Upon receipt of Country/Theater clearance message

  • SCO acknowledges receipt and identifies POCs for each subject to be discussed.

  • SCO determines if the visit will be limited to U.S. members only or if partner nation participation is warranted.

3

15 calendar days prior to visit

  • SCO finalizes itinerary with DSCA (SA Directorate) and, if applicable, the partner nation.

  • SCO finalizes requirements for the visit, and, if sites are to be visited, confirms entry information for each site and assures unit commanders have received the required authorization and understand the nature and purpose of the visit.

4

Familiarization Visit

  • SCO provides assistance at the airport to the incoming EUM FAV participants when requested and in accordance with Post policy.

  • SCO representative meets with visit participants upon arrival at the hotel and/or duty location, if required.

  • Each FAV must include the following:

    • EUM FAV participants meet with SCO representatives

    • EUM FAV participants meet with partner nation representatives (if applicable)

    • DSCA briefing on the Golden Sentry Program

    • Discussion of the type and quantity of Enhanced EUM articles to be transferred to the partner nation

    • Discussion of the SCO's and partner nation's current compliance with EUM requirements

    • Discussion compliance plan development commensurate with the SCO's manning

    • Discussion of a possible future CAV

    • Site visits (if required)

    • Out-brief to the U.S. country team and partner nation as appropriate

  • While the FAV is not intended to perform physical inventories or compliance verification, the EUM FAV Team may observe problems during the visit that must be addressed immediately.

5

No later than 15 calendar days after return to CONUS

  • DSCA EUM lead provides back brief to DSCA (SA Directorate)

  • DSCA EUM lead prepares an after action report for distribution to DSCA, the SCO, and the CCMD.

C8.5.3. EUM Compliance Assessment Visit (CAV) Guidance. The purpose of a CAV is to review and evaluate the SCO’s (or equivalent organization/office) compliance with Golden Sentry EUM policy and the partner nation’s compliance with specific physical security and accountability requirements, as well as other terms of sale. Activities during a CAV may include facility visits, record reviews, review of REUM and EEUM policies and procedures, and inventories of U.S.-origin defense articles. EUM CAVs are coordinated well in advance with the CCMD, SCO, and partner nation to ensure the success of the visit. To maximize resources and minimize disruptions, EUM site visits should be arranged to coincide with scheduled partner nations inventory dates whenever possible. Table C8.T6. outlines the timeline and formal requirements to ensure a well-coordinated and documented EUM CAV. Informal correspondence may occur prior to these actions. Inability to obtain proper entry credentials for the CAV Team from the recipient country may result in unfavorable reports within the DoS and DoD and may result in mention in the annual report to Congress.

C8.5.3.1. Factors DSCA considers when determining countries to be scheduled for CAVs include, but are not limited to, the following:

  • Risk assessments, which will include intelligence analysis and estimates to assess risk of transfers of defense articles and defense services monitored by the Golden Sentry Program's EEUM process.

  • The types and quantities of defense articles requiring EEUM.

  • The partner nation's history of compliance with transfer agreements.

  • Current or previous reports of concerns relative to the country's protection of U.S.-provided defense articles.

  • The SCO's history of compliance with the policies and procedures of the Golden Sentry program.

  • The region's political or military stability.

  • Opportunities to conserve resources by visiting more than one country in a region.

C8.5.3.2. To assist in planning and coordination with the partner nation, a two-year CAV plan has been institutionalized through formal message notifications to the CCMDs and SCOs. The two-year plan is published at the beginning of each fiscal year, and provides a quarterly CAV schedule by CCMD and country. DSCA may, in coordination with the appropriate CCMD, perform additional out-of-cycle CAVs as necessary to execute the EUM mission.

Table C8.T6. EUM Compliance Assessment Visit Timeline and Requirements

Event No. Timeframe Description

1

Initial Notification Annually by Fiscal Year

  • DSCA (SA Directorate) transmits an EUM CAV Message to the SCOs and their respective CCMDs to notify them of the EUM CAV schedule for the Fiscal Year. The annual CAV plan provides the CAV criteria and lists the planned CAVs by CCMD and country each quarter. This message is coordinated with the CCMDs prior to issuance.

2

Upon receipt of the Annual Fiscal Year CAV Message

  • SCO confirms to DSCA’s EUM team receipt of the EUM Advisory Message and provides/coordinates with DSCA (SA Directorate) proposed CAV dates.

  • SCO notifies the country team and the partner nation of the impending EUM CAV.

  • The SCO begins preparation for the CAV following the SCO checklist published by DSCA in the SCIP-EUM database.

3

90 calendar days prior to the visit

  • DSCA (SA Directorate) confirms to the SCO via the list of defense articles/services selected for EEUM checks, and the categories of defense articles requested to be observed through REUM checks by the upcoming EUM CAV.

4

80 calendar days prior to visit

  • SCO determines the location of the articles to be assessed within the partner nation.

  • SCO develops a tentative itinerary for the upcoming CAV.

5

70 calendar days prior to visit

  • The SCO advises DSCA (SAs Directorate) of:

    • Any U.S. country team concerns.

    • The SCO representative on the EUM CAV Team.

    • CCMD EUM CAV Team members (if desired by the CCMD).

    • Recommendations of additions/deletions from the proposed list of items to be evaluated during the visit.

  • The SCO provides a draft itinerary, a list of items recommended for EEUM and REUM checks, and a map with the locations expected to be visited during the CAV within the partner nation.

6

60 calendar days prior to visit

  • DSCA (SA Directorate) issues a formal CAV notification message that:

    • Identifies the CAV dates, EUM CAV Team members, support requested and;

    • Confirms the list of defense articles and/or services that will be evaluated through EEUM and REUM checks during the CAV.

7

Not later than 30 calendar days prior to visit

  • DSCA (SA Directorate) transmits a Country/Theater Clearance Message in accordance with the DoD Foreign Clearance Guidance

8

Upon receipt of Country/Theater Clearance Message

  • SCO acknowledges receipt of the message and confirms primary and alternate SCO POCs supporting the CAV.

  • The SCO conducts final coordination with partner nation for site clearances for the EUM CAV team members.

9

15 calendar days prior to visit

  • The SCO finalizes requirements for the visit with the partner nation to:

    • Confirm access approval and REUM and EEUM items to be observed at each site.

    • Ensure that Partner Nation unit commanders have received the required authorization from their higher headquarters.

  • The SCO forwards to DSCA (SA Directorate) and the partner nation the final CAV itinerary.

10

EUM Compliance Assessment Visit (CAV)

  • SCO ensures someone is at the airport to assist the EUM CAV Team participants when requested by the team.

  • SCO representative meets with the EUM CAV Team upon arrival at the hotel and/or duty location, if required.

  • SCO ensures that the following CAV activities are scheduled/coordinated:

    • An in-briefing to the SCO/country team, and as deemed appropriate by the SCO, to the partner nation.

    • Assessment of SCO and partner nation's current compliance with EUM requirements.

    • Review of the records for the specific items identified in the announcement message (Event #6).

    • Site visits to evaluate facility physical security and accountability procedures for the locations identified in the announcement message (Event #6)

    • An out-briefing for the SCO/country team, and as deemed appropriate by the SCO, to the partner nation. Preliminary observations and findings will be discussed, including preliminary assessment results and timeline for SCO and partner nation receipt of final report.

  • The SCO provides the CAV team a list by serial number of all items expected to be inventoried at each facility.

11

Immediately upon identification of problems that preclude successful completion of the CAV

  • The DSCA EUM CAV Team lead notifies the SCO with details about why they are unable to complete the visit successfully.

  • The DSCA EUM CAV Team lead notifies the Principal Director, SA, with details about the problem precluding a successful visit and SCO/country team response.

  • The Principal Director, SA, in coordination with the appropriate Integrated Regional Team (IRT) Lead and DSCA General Counsel will determine an appropriate course of action and notify the EUM CAV Team lead during the visit.

  • After return to CONUS, the EUM CAV Team lead will submit to the SA Principal Director any follow-up course of action as required.

12

Immediately upon discovery of a potential AECA Section 3 or FAA Section 505 violation.
(See SAMM Section 8.5.)

  • The EUM CAV Team notifies the SCO and DoS of the details about the potential violation.

  • The EUM CAV Team notifies the Principal Director, SA, with details about the potential violation and SCO/country-team response.

  • If there is a possible violation, the Principal Director, SA, in coordination with the IRT Lead, will develop an appropriate course of action.

  • If the partner nation's response and subsequent assessments confirm the potential violation, DSCA formally forwards information regarding the potential violation to the DoS for appropriate action.

13

No later than 5 working days after the visit

  • The DSCA CAV team lead submits a draft CAV report (in a word document) to the EUM team for review/comments.

14

No later than 10 working days after the visit

  • The DSCA CAV team lead obtains coordination on the draft CAV report from the SCO, IRT and DSCA/OGC.

  • The DSCA CAV team lead sends the CAV report (in a Word document) to the division chief for review/comments.

15

No later than 15 working days after the visit

  • The DSCA CAV team lead submits to the Principal Director, SA (through the Division Chief), the final CAV report (using the format in Figure C8.F2.), providing overall assessment results of "Satisfactory", "Needs Improvement", or "Unsatisfactory" for the partner nation and the SCO Country Team.

  • Immediately after the CAV report is approved by the DSCA Director, the DSCA CAV team lead forwards the report to the CCMD, SCO and other DoD and DoS organizations for information and/or corrective action as appropriate.

  • SCOs will forward a written report of actions taken to correct all findings and recommendations addressed in the CAV report to DSCA (through the CCMD) not later than 90 days after receipt of the CAV Report.

C8.5.3.3. CAV Rating Criteria. The CAV rating is based on the CAV team's assessment of:

C8.5.3.3.1. CO compliance with the policies and procedures of the Golden Sentry program SCO responsibilities stated in the SCO checklist published in the SCIP-EUM database and Table C8.T2. including:

  • Implementation of written Standard Operating Procedures (SOP) to perform Routine and EEUM;

  • Implementation of physical security and accountability plan(s) (NVD Control Plan) for the protection, storage, use and accountability of NVDs;

  • Maintenance of records verifying Routine and EEUM;

  • Accuracy of the country's EEUM-designated items baseline as per the EEUM Reconciliation Report provided in the Security Cooperation Information Portal EUM (SCIP-EUM) database;

  • Timely performance of physical security and accountability checks of all EEUM-designated defense articles in accordance with Golden Sentry checklists;

  • Use of the SCIP-EUM database to track inventories and to maintain an accurate disposition of EEUM-designated items;

  • Verification and proper coordination with DoS PM/RSAT for the demilitarization, disposal, or destruction of EEUM-designated items and sensitive defense articles;

  • Accuracy and timeliness of reporting losses, expenditures, and destruction of EEUM-designated equipment; and

  • Proper coordination with DoS PM/RSAT regarding third-party transfer requests and approvals.

C8.5.3.3.2. Country compliance with the conditions of the transfer agreements for U.S.-provided defense articles and services, including:

  • Cooperation and coordination with U.S. officials to implement and maintain a viable EUM program that provides for Routine and EEUM, including CAVs conducted by DSCA;

  • Potential end-use violations found during the assessment or previously reported by the SCO.

  • Implementation of NVD physical security and accountability plan(s) (NVD Control Plan) as required;

  • Implementation of physical security and accountability measures at storage sites/facilities maintaining EEUM-designated items in accordance with the special provisions stated in the LOA or other transfer agreement;

  • EEUM-designated equipment losses, action taken to prevent future losses (as appropriate), and reporting history; and

  • Accurate and timely requests for, and reports of, demilitarization, disposal, destruction, loss, expenditure, or other change of end-use of USG-provided defense articles.

C8.6.1. Potential End-Use Violations. While conducting end-use REUM and EEUM checks, SCO personnel should be alert for unauthorized use of defense articles, defense services, or technical data, including information provided during CONUS or in-country training. The checks should provide information for both the recipient country and the United States to determine whether a partner nation’s generally sound processes failed due to unusual circumstances, because security and accountability procedures are not given sufficient priority, or because country interests are diverging from those of the United States. Information gained during the special checks that could be useful in correcting the immediate problem or improving future end-use controls should be shared with the DoS and DSCA (SA Directorate).

C8.6.2. Reporting End-Use Violations. SCOs must report all potential unauthorized end-use, including unauthorized access, unauthorized transfers, security violations or known equipment losses to the CCMD, DSCA (SA Directorate) and DoS (PM/RSAT). It is particularly important that SCOs are alert to, and report on, any indication that U.S.-origin defense articles are being used against anything other than a legitimate military target, are otherwise being used for unauthorized purposes, are being tampered with or reverse engineered, or are accessible by persons who are not officers, employees, or agents of the recipient government. Potential violations can be notified via email or message. SCOs must assess the sensitivity of the potential violation and other factors to determine the means of notification. The DoS investigates and reports potential violations and determines whether the AECA Section 3 (22 U.S.C. 2753) criteria require notification to Congress.

C8.6.3. EUM Investigation Visits and Special End-Use Monitoring Checks. The SCO may be required to provide additional information to assist with the investigation process, and special EUM checks may be required to determine the country’s compliance with the transfer agreements. The purpose of an EUM Investigation Visit is to examine possible violations of AECA Section 3 (22 U.S.C. 2753), FAA, Section 505 (22 U.S.C. 2314), and any applicable diplomatic notes or agreements regarding the defense articles. These visits may be prompted by intelligence reports and/or other sources that indicate a partner nation may be using U.S.-origin defense articles and services in ways that do not comply with U.S. laws and policies. EUM Investigation Visits are conducted as expeditiously as possible within the required coordination for foreign travel. Due to the unique nature and political sensitivity associated with this type of visit, each EUM Investigation Visit is handled on a case-by-case basis in concert with DoS.

C8.7.1. In accordance with the FAA, Section 505 (22 U.S.C. 2314); AECA Section 3 (22 U.S.C. 2753); and the LOA Standard Terms and Conditions, foreign governments may not transfer title to or possession of any defense articles or services to anyone not an officer, employee, or agent (defined as freight forwarder only) of that country or of the USG until the country receives prior written consent from the USG. Nor may the foreign government use or permit the use of such articles or services for purposes other than for which they were furnished unless the foreign government receives prior written consent from the USG. SCOs should be aware of the pertinent agreements with the recipient country including any special diplomatic notes or agreements that apply to the defense articles involved. SCOs should contact their country program director to ensure that they have all pertinent agreements.

C8.7.2. Third Party Transfer Responsibilities.

C8.7.2.1. Department of State. The DoS is responsible for authorizing third party transfers of U.S.-origin defense articles and/or services worldwide.

C8.7.2.1.1. Office of Regional Security and Arms Transfer Policy (PM/RSAT). DoS (PM/RSAT) is responsible for coordinating the DoS response for requests to transfer defense articles to a third party, including all associated components, technical data, training, and services originally acquired via FMS or grant programs (e.g., FMF, P.L. 109-163, Section 2282 (as extended), Military Assistance Program (MAP), Excess Defense Articles (EDA), Drawdown) and requests for the demilitarization and disposal of the items. See the DoS web page at www.state.gov/t/pm/rsat/c14025.htm for additional information.

C8.7.2.1.2. Directorate of Defense Trade Controls (PM/DDTC). Pursuant to AECA, section 38 (22 U.S.C. 2778) and the International Traffic In Arms Regulation (ITAR) (22 C.F.R. 120-130), DoS (PM/DDTC) is responsible for processing requests to transfer defense articles or services originally acquired under a commercial export license or other commercial authorization (such as manufacturing license or technical assistance agreements). See ITAR Section 123.9. for additional information. DoS (PM/DDTC) also authorizes temporary imports of defense articles into the United States.

C8.7.2.2. Department of Justice (DoJ). The Department of Justice’s Bureau of Alcohol, Tobacco, Firearms, and Explosives (BATFE) is responsible for control of the permanent import of U.S. Munitions List (USML) (22 C.F.R. 121.1) items into the United States. DoS approval of a retransfer request by a foreign government must precede and be separate from submission by the importer of an ATF Form 6 import license application to BATFE.

C8.7.2.3. Security Cooperation Organizations (SCOs). SCOs are directly involved only in actions related to retransfers of items received through DoD-administered programs. They do not process requests for retransfers of defense articles procured by commercial means. Owning countries make such requests directly to the Department of State’s Directorate of Defense Trade Controls through their embassies in Washington, D.C.

C8.7.3. Third Party Transfer Requests: Government-To-Government. The U.S. Government requires recipients of U.S.-origin defense articles, services, or technical data to obtain written consent from DoS PM/RSAT prior to transfer, disposal, or change of end-use of its U.S.-origin articles, services, or data. Such approval is required for all transfers, changes of end-use, or changes of destination not previously authorized in the original acquisition. Included are defense articles and technical data obtained through FMS, MAP, or EDA programs. Third Party Transfer (TPT) decisions are made on a case-by-case basis and are guided by general criteria and specific third party transfer requirements of arms transfer law, regulations, and policies. See SAMM Sections C8.7.2.2. and C8.7.2.3. The information required for the Standard Questionnaire is provided in Table C8.T7. See www.state.gov/t/pm/rsat/c14031.htm for step-by-step instructions and an example of a completed questionnaire. Divesting governments may send TPT requests directly to the Third Party Transfer Team in PM/RSAT (PM_RSAT-TPT@state.gov), through their embassies, or through the SCOs. Working through the SCOs is highly encouraged. However, PM/RSAT is currently making the transition to an online web-based application within the Security Cooperation Information Portal (SCIP), which will receive and track TPT requests. Divesting governments are highly encouraged to utilize SCIP for their submissions, as PM/RSAT intends to eliminate the paper TPT (i.e., receipt and processing of cases via email) entirely by January 2018 or soon thereafter. To register for an account, users must complete a Security Cooperation Information Portal (SCIP) Registration Form and send it to SCIP admin, requesting access to the State community as "Creator" at https://www.scportal.us/home/. SCIP help/support can be found on the tab within the account. After the transfer is complete, the SCO should upload to the SCIP-EUM module all pertinent documents. If the transfer involves EEUM-designated items, the SCO must contact the EUM Help Desk to update the EEUM baseline for the partner nations involved in the Third Party Transfer.

Table C8.T7. Required Information for Third Party Transfer Standard Questionnaire

# Required Information
1

The name of the divesting government.

2

A clear description of the articles, services, technical data, or training being transferred including quantity, model, any associated equipment, spare parts and/or classified components or data. Also, where possible, indicate whether equipment is Significant Military Equipment (SME) or non-SME and the category under which the article is listed in the USML. Serial numbers must be provided for SME.

If the equipment has been moved from the USML to the Commerce Control List (CCL) (a TPT is still required if items that are now on the CCL were acquired via FMS), please state if the equipment is on the CCL and identify the ECCN if possible.

If the items involve:

  • US COMSEC/TRANSEC:

    • If so, please indicate the specific equipment; and, how the US COMSEC/TRANSEC will be transferred, protected and controlled; will the US COMSEC/TRANSEC be installed/integrated/configured/maintained by qualified US technicians?

Requests involving the use of Foreign Integrators for US COMSEC should include the following:

  1. Conduct and/or obtain U.S. risk assessments of the foreign manufacture.

  2. Obtain and provide sufficient and acceptable documentation that states that a foreign vendor is qualified to integrate, install and/or configure U.S. COMSEC and communications products and systems of U.S. origin.

    1. Confirm the vendor does not employ personnel of other nationalities (e.g. dual citizenship).

    2. Ensure and provide in official written form, foreign vendors have U.S.- accepted facilities, personnel, custodian, clearances, citizenship, security and protection measures, agreements or understandings and other legal approvals to receive, handle, transfer and safeguard COMSEC and communication products, systems and information of U.S. origin.

  • Signals Intelligence (SIGINT) or Electronic Warfare (EW) (e.g. Radar Warning, Electronic Support Measures) systems:

    • If so, please indicate the specific equipment; and whether the database content will be removed.

3

The original acquisition source of the defense articles, services, technical data, or training proposed for transfer (e.g., FMS, grant, MAP, EDA, pseudo case transfer, etc.). The case identifier must be provided for FMS or an explanation as to why it is unavailable.

4

The year of original acquisition.

5

The original acquisition cost or best estimate of that cost.

6

The current value if available.

7

The reason the government wants to divest itself of the articles, services, technical data, or training. If by demilitarization and disposal, describe how it will be accomplished.

8

The proposed recipient.

9

Indicate whether the transfer is temporary or permanent.

10

If known, the proposed end-use of the articles, services, technical data, or training by the proposed recipient.

11

Indicate whether the recipient has the defense article proposed for transfer in its inventory.

12

Estimation of net proceeds. In accordance with FAA, Section 505(f) and prerequisite bilateral agreements, if the defense articles were furnished to a country on a grant basis (e.g., MAP-grants, grant EDA), the net proceeds of the sale of the defense articles received by the grantee must be returned to the USG. The following factors relating to the defense articles should be considered in determining the net proceeds: the value of the defense articles when furnished by the USG as a percentage of the aggregate of the value of the defense articles when furnished by the USG added to the value of any capital investment incurred by the grantee in repairing, rehabilitating, or modifying the article (other than routine maintenance and repair expenses); depreciation of that value; and reasonable administrative costs of the sale or disposal. The party requesting the third party transfer of such defense articles must show it has employed a reasonable methodology in calculating the net proceeds [e.g., Net Proceeds = (Gross Sale Proceeds – Administrative Costs of Sale) x (Value at Transfer / (Value at Transfer + Value of Capital Investment))].

DoS may waive return of net proceeds in cases involving grant equipment delivered prior to 1985. There is no waiver authority for articles delivered after 1985. Requests for waiver consideration are included in written transfer requests and must include an estimate of the net proceeds expected, justification/rationale for the request to retain net proceeds, and how the funds will be used.

13

Indicate whether an intermediary is involved in the transfer. If so, provide a description of the role (broker, freight forwarder, etc.), the business address, and a point of contact.

14

Proposed timeframe or time constraints with regard to DoS processing of the request. If immediate action is required, provide explanation.

15

The name, title, and contact details for an official in the divesting and recipient countries with whom DoS (PM/RSAT) can discuss the transfer details and required end-use, retransfer, and assurances.

C8.7.3.1. End-Use, Retransfer, and Security Assurances. The DoS requires end-use, retransfer, and security assurances from the proposed recipient’s Ministry of Foreign Affairs (MFA) unless the proposed recipient is a member of the Blanket Assurance Program. See SAMM Section C8.7.5. The assurances must be obtained by the divesting government and submitted with the retransfer request. These assurances are mandatory, generally non-negotiable, and must be received by DoS before the transfer can be considered for approval. Assurances must be typed in English and signed by an official of the proposed recipient country who can legally bind the entire government (usually the MFA). If the government issues assurances signed by an official of a ministry other than the MFA, such as the Ministry of Defense, the U.S. Embassy in that country must confirm in writing that his or her signature is binding. When language is supplied that does not appear to meet U.S. requirements, the DoS PM/RSAT TPT team coordinates with the Department’s legal counsel to determine whether the language will be accepted. If the language is deemed unacceptable, PM/RSAT will not process the case.

C8.7.3.2. Blanket Assurances. Governments may sign blanket end-use, retransfer, and security assurances to satisfy legislative requirements for future government-to-government retransfers. Governments that sign Blanket Assurances are not required to sign individual assurances to receive USG-origin defense articles from foreign governments. Blanket members under the Defense Trade Security Initiative (DTSI) (http://www.pmddtc.state.gov/licensing/defense_trade_security_initiative.html) program have the added benefit of limited advanced USG consent. Members can transfer between and among themselves when: the original acquisition value of all transferred articles does not exceed $7 million; classified defense articles (including classified technical information) are not being transferred; the defense articles to be transferred are already in the inventory of the proposed recipient (no first introduction); and the proposed recipient is either an approved DTSI country (NATO members, Japan, Australia, or Sweden) or a signatory to the standard blanket assurance program. DTSI assurances, like blanket assurances, apply only to government-to-government third-party transfers of USG-origin defense articles. DTSI assurances do not replace the DSP 83 currently used for the retransfer of defense articles originally acquired through Direct Commercial Sales (DCS). Requests for retransfer of DCS-acquired items continue to be reviewed on a case-by-case basis by the DoS (PM/DDTC). Governments interested in participating in DTSI should contact DoS (PM/RSAT) for further information.

C8.7.4. Third Party Transfer Requests Government-to-Non-States or Private Entities. As stated in the FAA and AECA, defense articles and defense services are transferred to foreign governments and international organizations to promote U.S. foreign policy objectives. Following the receipt of a request to transfer U.S.-origin defense articles and defense services from a foreign government or international organization, the DoS adjudicates all requests for transfer of U.S.-origin military equipment to non-states, including private entities, nongovernmental organizations, international organizations, and other non-state groups, on a case-by-case basis. In submitting a government-to-non-state transfer request, the divesting country and the SCO follow the same instructions as provided above in SAMM Section C8.7.3. and Table C8.T5. For retransfers to private entities, the request should include end use, retransfer, and security assurances from the proposed private entity recipient, as well as Country Over Private Entity (COPE) assurances from the government with legal jurisdiction over the private entity. The written transfer request should include contact details for a representative of the private entity. If a prime contractor is listed specifically on the LOA and is confirmed to be contracted by the USG in order to directly support and provide services to the USG on that FMS case, then a third party transfer request may not be required. DSCA (SA Directorate) and DoS PM/RSAT will coordinate to identify the contractor in an LOA note.

C8.7.5. Congressional Requirements for Third Party Transfers. As provided in the FAA and the AECA, certain third party transfers of defense articles, including all associated components, technical data, training, and services originally acquired via FMS or grant programs, are subject to congressional notification and reporting requirements.

C8.7.5.1. Congressional Notification. Third party transfers of defense articles and services originally acquired via FMS or grant programs are subject to requirements for congressional certification pursuant to AECA, Section 3(d) (22 U.S.C. 2753 (d)) using certification thresholds similar to those for AECA, Section 36(b) (22 U.S.C. 2776(b)) notifications. See SAMM Section C5.5. A 30-day prior congressional certification is required for third-party transfer requests that involve defense articles and services with original acquisition values that fall in one of the following categories: Major Defense Equipment (MDE) with an acquisition value equal to or greater than $14M for non-North Atlantic Treaty Organization (NATO) recipients and $25M if the recipient is a member of NATO, Australia, Israel, Japan, the Republic of Korea, or New Zealand; or any other defense article or related training or defense service with an acquisition value of $50M or more for non-NATO recipients and $100M or more if the recipient is a member of NATO, Australia, Israel, Japan, the Republic of Korea, and New Zealand. For all recipients, approval is granted after the 30-day calendar day period has expired unless Congress enacts a joint resolution of disapproval.

C8.7.5.2. Transfers pursuant to arrangements among NATO members, or between NATO and any of its member countries for lead-nation procurement are exempt from AECA, Section 3(d) (22 U.S.C. 2753 (d)) certification requirements if the defense article to be transferred was originally purchased from the United States, and the transferee on whose behalf the lead-nation procurement was proposed identified to Congress in a notification pursuant to AECA, Section 36(b) (22 U.S.C. 2776(b)). Information as to possible subsequent transfers by a NATO member country purchasing on behalf of a third NATO party shall be provided to DSCA for inclusion in AECA, Section 36(b) (22 U.S.C. 2776(b)) notifications. The certification requirement of AECA, Section 3(d) (22 U.S.C. 2753 (d)) also does not apply to the following:

  • Temporary transfer of defense articles for the sole purpose of receiving maintenance, repair, or overhaul;

  • Transfer of maintenance, repair, or overhaul defense services, or of repair parts or other defense articles used in furnishing such services, if the transfer does not result in any increase, relative to the original specifications, in the military capability of the items;

  • Transfers pursuant to arrangements among NATO members for cooperative cross-servicing.

C8.7.6. Congressional Reporting. All approved third party transfers involving defense articles and services with an original acquisition value of $1 million or more are submitted in a quarterly report to Congress ( AECA, Section 36(a)(9) (22 U.S.C. 2776)).

C8.8.1. Changes in End-Use. Requests to change the end-use of U.S.-origin defense articles follow the same process and require the same information as third party transfers. Changes in end-use may include transfers to non-defense uses by other agencies of the owning government, or demilitarization for museum display. Disposal also constitutes a change in end-use for which prior consent from DoS is required for non-consumable items. Cannibalization is viewed as disposal only if the parts being removed will no longer be under the control of the ministry or agency that owns them, or will be used for purposes other than for national defense.

C8.8.2. EUM and the Disposal Process. EUM of demilitarization is a key aspect of disposal due to the potential for unauthorized disclosure of classified or sensitive information, safety concerns, and other factors. During disposal, items often move from operating units to holding areas, where personnel may not be aware of classified features, potential lethality, or other sensitivities. SCOs are responsible for maintaining personnel trained in demilitarization procedures (by completing the Demilitarization Certifier/Verifier Course), and must ensure that DoD demilitarization procedures are followed by the partner nations unless DoS has specifically authorized or required some other disposition. SCOs will witness the demilitarization and disposal of all EEUM-designated and classified defense articles, and will witness or otherwise verify through partner nation reports or other legitimate documentation the demilitarization and disposal of all other defense articles. SCOs should record demilitarization actions by uploading to the SCIP-EUM database a copy of the completed Demilitarization Certificate. A sample format of the demilitarization certificate can be found in DoD Manual 4160.28-M, Volume 3, "Defense Demilitarization: Procedural Guidance."

Figure C8.F2. Sample Format of a DEMIL Certificate

C8.8.3. DoD Demilitarization Program Office (DDPO). The DDPO manages the DoD Demilitarization Program to ensure that policy, procedures, program implementation, and operational performance are consistent with U.S. Foreign Policy, National Security objectives and DoD interest. Demilitarization involves eliminating the functional capabilities and/or inherent military design features from DoD personal property. This procedure is required to prevent property from being used for its originally intended purpose, and thereby prevent unauthorized use, and to prevent the release of inherent design information that could be used against the United States and its allies. The methods and degree of demilitarization can range from removal and destruction of critical features to total destruction. Items to be used for purposes of static display require minimum and limited demilitarization to render such items unserviceable in the interest of public safety. This DEMIL will preserve the intrinsic, historical, or display value of the property, but it usually does not constitute complete demilitarization as required for final disposition.

C8.8.4. At the time the partner nation requests DoS consent to dispose defense articles, the SCO should begin working with partner nation counterparts to develop a demilitarization plan to ensure compliance with DoD demilitarization requirements. The SCO determines the appropriate demilitarization coding assignment in the DoD Manual 4160.28-M Vol 2, "Defense Demilitarization Coding" Volume 2 or by obtaining the National Stock Number (NSN) from the LOA, 1000 Report or partner nation equipment manual; and accessing (WebFLIS or the Pub Log) at: http://www.dla.mil, to determine the assigned demilitarization code. If the item needs to be demilitarized, the proper procedures are described in DoD Manual 4160.28-M Vol 3, "Defense Demilitarization Procedural Guidance" Volume 3 or by contacting the appropriate MILDEP demilitarization program administrator.