Mandatory for FMS LOAs that include Defense Transportation Service (DTS).
Mandatory for Amendments and Modifications that add DTS to the case.
The U.S. Government agrees to provide transportation services for the items identified in this LOA to the point of delivery. The purchaser's property will be transported at the purchaser's risk.
The purchaser will accept U.S. Government delivery listings as the basis for billing and proof of shipment.
The purchaser will accept responsibility for clearance of materiel through its customs at the Point of Debarkation (POD) and for movement of the materiel from its POD to the ultimate in-country destination.
The purchaser will appoint a duly authorized official to accept and sign for materiel at the POD, and submit outturn message and report.
The purchaser will absorb losses of materiel the U.S. Government does not in fact recover from an independent carrier or handler, including where the U.S. Government is self-insured.
The purchaser will self-insure such shipments, or obtain commercial insurance without any right of subrogation of any claim against the U.S.
The U.S. Government will assist the purchaser in processing any claims that may arise for lost or damaged shipments, in the same manner it processes claims for U.S. Government-owned materiel. Collection of revenue, if any, resulting from approved claims will be credited to the purchaser's account.
If the purchaser proposes to take delivery and custody of the classified materiel in the U.S. and use its own facilities and transportation for onward shipment to its territory, a Transportation Plan is required. The Transportation Plan is developed by the DoD Component that prepares the LOA in coordination with the purchasing government as outlined in the Security Assistance Management Manual, Chapter 3. The purchaser may obtain assistance in the development of the Transportation Plan with its cleared freight forwarder. Further, the purchaser will notify the Implementing Agency of any changes as they occur to the Transportation Plan. The Implementing Agency that initiates the FMS transaction will designate the security officials who are authorized to evaluate the Transportation Plan to determine whether the plan adequately ensures protection of the highest level of classified materiel involved. The purchaser will be notified of the approval or disapproval of the plan and any changes. If disapproved, the purchaser will be notified of the reason for disapproval and, when possible, changes that would be acceptable to the U.S. Government. As an alternative, the U.S. Government will ship the classified materiel by the Defense Transportation System."