Mandatory for FMS LOAs when the term of sale is FMS Credit (Non-Repayable) or FMS Credit (Repayable) on materiel and services lines and/or for LOAs that transfer Grant EDA.
Mandatory for Amendments and Modifications when the term of sale is FMS Credit (Non-Repayable) or FMS Credit (Repayable), and/or for Amendments or Modifications that transfer Grant EDA.
"All items transferred under Section 516 of the FAA or purchased with Foreign Military Sale (FMS) Credit (Non-Repayable) or FMS Credit (Repayable) that are transported by ocean carriers must comply with the U.S. Cargo Preference Act. Recipient countries must use U.S. flag vessels for the shipment of all FAA Section 516 materiel or materiel purchased with FMS Credit (Non-Repayable) or FMS Credit (Repayable) unless the Maritime Administration (MARAD) grants a non-availability waiver or DSCA grants a general or security waiver. MARAD will assist in working with the recipient country to determine availability of U.S. vessels from the port of shipment to the delivery port in the recipient country. Shipment options, utilizing U.S. flag exclusively, or in conjunction with a foreign flag carrier for a portion of the route, may be proposed by MARAD. In addition, MARAD will assist in monitoring compliance with the U.S. Cargo Preference Act."