C11.HR.1.1. Definition and Purpose. Prior to FY 1982, defense articles and services provided to allied Governments or international organizations by grant aid were administered through MAP. MAP procedures are different from those used for sales of defense articles and services. Since FY 1982, grant funds are part of the Foreign Military Financing (FMF) program and are not provided under MAP. There are still open FMS cases that use “MAP” or “MAP Merger” funds. The policy and/or procedures in this section apply to those cases. Table C11.HR.T1. lists the legal references for MAP.
Table C11.HR.T1. Military Assistance Program (MAP) Legislation Summary
Legislation |
Subject |
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Restricts off shore procurement under FMS cases funded with merged MAP funds. |
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Authorizes the transfer of MAP funds to the FMS Trust Fund for merger with country trust fund deposits. Requires funds may be used only for payment on obligations of the recipient country for purchases from the USG under AECA, section 21 and section 22. |
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Places restrictions on recipients use. Executive Order No. 12163 delegates some responsibilities. |
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Requires net proceeds of sales received by a country in disposing of articles provided under this program to be paid to the USG. Authority to grant waivers of return of net proceeds for articles delivered prior to 1985 has been delegated to the Secretary of State. |
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Sanctions |
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Brooke Amendment |
Limitations on assistance to countries in default |
C11.HR.1.2. What CAN Be Purchased Using MAP Funds? MAP funds are to be used solely for purchases from the USG made under the AECA. The funds are used to: finance portions of Letters of Offer and Acceptance (LOAs) that specify MAP funding; liquidate arrearages of 90 days or more on purchaser DD Form 645 FMS Billing Statements only at the specific direction of Defense Security Cooperation Agency (DSCA) (Business Operations Directorate); or pay for amounts due on DD Form 645 FMS Billing Statements only at the specific direction of DSCA (Business Operations Directorate).
C11.HR.1.3. What CANNOT Be Purchased Using MAP Funds? MAP funds may not be used for funding direct commercial purchases, or financing interest or repayments of principal or guaranty fees with respect to Federal Financing Bank (FFB) loans.
C11.HR.1.4. MAP Financing. MAP funds must be obligated within the period of availability prescribed in the annual appropriations act or the Continuing Resolution Authority.
C11.HR.1.5. MAP Pricing. Chapter 9 provides detailed guidance on pricing LOAs. FAA, section 503(a) was amended to eliminate the cost of military pay and entitlements if the case is totally financed by MAP. Effective October 1, 1985, services provided under AECA, section 21, section 22, or section 29 are priced to exclude military pay and entitlements (including retired pay accrual) for those cases citing MAP funds as the exclusive method of funding on the LOA. This pricing applies when services are performed regardless of the date of the LOA. Any subsequent Amendment or Modification to reduce the MAP method of funding below 100 percent of the case value must be re-priced to add military pay and entitlements to the entire case. This guidance does not apply to FY 1981 and prior MAP programs, to those general costs funds programmed in FY 1982 and subsequent years which are intended for the close-out of those programs, or to emergency drawdowns authorized by FAA, section 506(a). FAA, section 506 special authority implementing procedures are provided in the Drawdown section of this chapter (Section C11.HR.4).
C11.HR.1.6. Title Transfer of MAP Items. Title transfer for items transferred under the FAA is the same as for items transferred under the AECA. See LOA Standard Terms and Conditions, Figure C5.F4. Reversionary title rights do not accrue to the United States on any defense article sold under FMS procedures even when merger funds have been used to finance the purchase in whole or in part. Accordingly, recipient countries are not required (as they may be under FY 1981 and prior year MAP as well as FAA, section 516 (or its predecessor sections)) to return the article to the United States when the article is no longer needed.
C11.HR.1.7. Third Party Transfers of MAP Items. The same restrictions on transfers to a third party apply as apply for defense articles and services sold under FMS. See Chapter 8 for more information.
C11.HR.1.8. Sanctions on MAP Recipients. See Chapter 6 for information on the impact of suspensions and sanctions on MAP recipients.
C11.HR.1.9. Use and Disposal of MAP Materiel. This section applies to materiel furnished under: the FAA of 1961, as amended, (including materiel furnished under MAP orders prior to FY 1982); FAA, section 506(a) emergency drawdown authority and similar grant DoD drawdown authorities; FAA, section 516; and sections 517, 518, or 519, which were repealed in 1996. It does not apply to materiel purchased as a result of transfer of MAP funds to the FMS trust fund.
C11.HR.1.9.1. End Use of MAP-Provided Articles and/or Services. MAP recipients must use articles and/or services provided under this program only for the purposes for which they were furnished as identified in FAA, section 502; agree to return the materiel to the USG without charge when no longer needed for the purposes for which furnished; and agree not to transfer such materiel to anyone not an officer, employee, or agent of the recipient’s Government. DSCA, the Combatant Command, or the Security Cooperation Organization (SCO) do NOT have the authority to consent on behalf of the President to waive these requirements. The authority to approve retransfer, change the end-use, or otherwise dispose of MAP items has been delegated to the DoS. Controlled use of components (cannibalization) is an authorized use for these items.
C11.HR.1.9.2. Definition of Disposal. Disposal constitutes a change in end-use altering disposition so the foreign holder is no longer responsible for the item. This can occur through demilitarization or, for items not requiring demilitarization, through fair wear and tear or other destruction and qualified technical inspection that verifies the item is unserviceable and non-repairable. It can also include transfer, with military capabilities retained, to other authorized recipients.
C11.HR.1.9.3. Proceeds from Disposal of MAP Items. FAA, section 505(f) requires net proceeds from MAP disposal to be paid to the USG. In the case of items that were delivered prior to 1985, the President may waive the requirement that such net proceeds be paid to the USG if he or she determines that to do so is in the national interest of the United States. This waiver authority has been delegated to the Secretary of State. FAA, section 505(f) applies to disposals of MAP origin defense articles by countries that were the recipients of grant aid materiel after July 1, 1974. An agreement under FAA, section 505(f) that constitutes a condition of eligibility for recipients of grant defense articles programmed in FY 1975 and subsequently, was concluded with those countries. A FAA, section 505(f) agreement is not legally required for countries where no grant defense articles were programmed after June 30, 1974. U.S. policy requires (unless contrary to an agreement in force on June 30, 1974) a recipient country commitment to return to USG the net proceeds of sale whenever country disposal of MAP property is requested. In accordance with FAA, section 605(d) (22 U.S.C. 2355(d)) these funds shall be credited to the respective appropriation, fund or account used to procure such defense articles or to the appropriation, fund, or account currently available for the same general purposes. Any net proceeds from disposal shall be reimbursed in U.S. dollars except where Government-to-Government arrangements, with the DoS representing the USG, specify otherwise. See Table C8.T6., for an explanation of the calculation of net proceeds.
C11.HR.1.10. MAP Accountability and Disposal Process. Chapter 5 and Chapter 6 provide information on LOAs and deliveries of articles and/or services to purchasers. Those procedures also apply to MAP articles and/or services. Table C11.HR.T2. summarizes the unique MAP accountability and disposal processes that occur after MAP items have been delivered.
Table C11.HR.T2. MAP Accountability and Disposal Processes
# |
Step |
Action(s) |
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1 |
Establish Accountability Processes In-Country |
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2 |
End-Use Monitoring |
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3 |
Excess Determinations |
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4 |
Determine Condition of Excess Items |
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5 |
Preparation of Screening Reports |
SCOs report excess MAP items to the managing Implementing Agency (with an information copy to the Combatant Command and DSCA (Programs Directorate). Items must meet the following criteria to be included on the report:
These screening reports should show:
Items not meeting the screening criteria above and those not redistributed as a result of MILDEP/defense agency screening should be disposed of through Department of Defense or DoS. |
6 |
Implementing Agency Review of Screening |
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7 |
Disposal Determination |
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8 |
Request DoS Approval for Disposal or Third Party Transfer |
Section C8.7. provides guidance on Third Party Transfer requirements. MAP recipients request Third Party Transfers from the DoS. The request shall include the following information:
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9 |
DoS Review/Approval of Transfer Requests |
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10 |
Disposal through DRMS or Other DoD Channels |
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11 |
Disposal to a Third Party |
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12 |
Net Proceeds Returned to USG |
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13 |
Update MAP Records |
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