Foreign Military Sales
Yes
Building Partner Capacity
No
Note Input Responsibility
IA
Date Range Of Use
All
References

See Figure C5.F4.

Note Usage Instructions for Documents

Mandatory for Foreign Military Sales (FMS) Letters of Offer and Acceptance (LOAs), Amendments, and Modifications that add/include Defense Transportation System (DTS) Delivery Term Code (DTC) 7 for FMS materiel moving through transit point(s) with restrictive national customs requirements where U.S. Government retention of title will facilitate movement. Requests for use of this note must be directed by the applicable Implementing Agency to DSCA (Office of Strategy, Plans, and Policy (SPP)) for approval in advance of LOA development unless the latest version of the note is on the Implemented Version.

Note Text
  1. "In addition to the terms of this Letter of Offer and Acceptance (LOA) and the note titled "Transportation and Services," the U.S. Government agrees to pass title to the purchaser at an inland delivery point in the purchaser's territory as specified in this LOA. As permitted by the LOA Standard Terms and Conditions paragraph 5.1, the DoD may arrange through the Defense Transportation System (DTS) the movement of the applicable defense articles to the authorized delivery point as a reimbursable service and will pass title at the delivery destination in the purchaser territory.
  2. Paragraph 3 of the Standard Terms and Conditions of this LOA governs indemnification and assumption of risks and liability during retention of title by the U.S. Government regardless of the mode of transportation.
  3. Any incurred transportation-related costs that are not covered by rates for Delivery Term Code 7 (i.e., below-the-line transportation costs), will be charged as a service line on the LOA document (i.e., above-the-line costs), and billed to the purchaser. These costs may include, but are not limited to, charges for movement of the Foreign Military Sales (FMS) materiel to/from a secure temporary storage location at a transit point, special documentation requirements for cargo clearance, special clearance requirements associated with a movement of hazardous materiel, security personnel required to accompany the shipment, packing, crating, or otherwise preparing the defense articles for shipment or other unanticipated charges."