Appendix 8 - Return of Defense Articles - Section 21(m)
S21(m)
SC
No
Permanent
All Foreign Military Sales eligible countries
Return of non-Significant Military Equipment defense articles to DoD.
Section | Title |
|---|---|
S21(m).1. | |
S21(m).2. | |
S21(m).3. | |
S21(m).4. | |
S21(m).5. | |
S21(m).6. | |
S21(m).7. | |
S21(m).8. | |
S21(m).9. |
S21m.1.1. Arms Export Control Act (AECA), Section 21(m) (22 USC 2761) authorizes the President to accept the return of a defense article from a country or international organization if it was (A) previously transferred to such country or organization under the AECA; (B) is not significant military equipment (SME); and (C) is in fully functioning condition without need of repair or rehabilitation.
S21m.2.1. Arms Export Control Act, Section 21(m) Returns Eligibility Requirements. Returns of defense articles may be accepted if the DoD:
S21m.2.1.1. has a requirement for the defense article being returned; and (ii) has available sufficient funds authorized and appropriated for such purpose; or
S21m.2.1.2. is accepting the return of the defense article for subsequent transfer to another foreign government or international organization pursuant to a letter of offer and acceptance (LOA); and has available sufficient funds provided by or on behalf of such other foreign government or international organization pursuant to an LOA. Further, upon acquisition and acceptance by the USG of a defense article under Section 21(m), the appropriate FMS account of the provider shall be credited to reflect the transaction.
S21m.2.2. Worldwide Warehouse Redistribution Services. Pursuant to AECA Section 21(m), the Director, DSCA has approved the Worldwide Warehouse Redistribution Services (WWRS) program and delegated its management to the U.S. Air Force (USAF). It provides a mechanism for partners to transfer to the DoD defense articles that were purchased under Foreign Military Sales (FMS) or purchased under Direct Commercial Sales (DCS) for sale to other partners through an LOA or to the DoD.
S21m.2.2.1. Defense Articles Not Provided. The following defense articles may not be provided through WWRS: Major Defense Equipment (MDE), SME, Excess Defense Articles (EDA), parachutes, explosive ordnance items, commercial items of materiel more readily provided from in-country, controlled medical items, modification kits, ozone depleting substances, technical data packages or other similar documentation that conveys manufacturing process information, publications, cryptographic equipment, classified materiel, items subject to a release approval, and initial spare parts. Further, any defense article that has a shelf life of less than twelve months is not provided through WWRS.
S21m.3.1. Defense Security Cooperation Agency. DSCA has delegated authority to accept the return of defense articles under AECA Section 21(m). DSCA delegates authority to the USAF to manage the Worldwide Warehouse Redistribution Services (WWRS) program and to accept the returns of defense articles for DoD use or follow-on sale by USAF or another Implementing Agency (IA) through FMS. DSCA provides DoD-level program guidance to the IAs on accepting and re-selling defense articles under this authority.
S21m.3.2. U.S. Air Force. USAF manages and executes the WWRS program, which includes establishing programmatic requirements with other IAs that utilize WWRS as a source of supply under its Letters of Offer and Acceptance (LOAs). USAF requests DSCA approval for any changes to the scope of the WWRS program.
S21m.3.3. Other Implementing Agencies. Other IAs coordinate draft LOAs that include service lines to accept the return of defense articles through the WWRS program with the USAF WWRS program office.
S21m.4.1. N/A
S21m.5.1. N/A
S21m.6.1. Worldwide Warehouse Redistribution Services Sellers. For Foreign Military Sales (FMS) partners to return non-significant military equipment (SME) back to the DoD, the items must be fully functional defense articles purchased under FMS or Direct Commercial Sales (DCS), and the foreign partner must establish a new FMS case with an Implementing Agency (IA) to provide for the return of the defense article(s). The FMS case must include the WWRS services line using Military Articles and Services List (MASL) “WWWRED1STSERV.” The WWRS services line can be on a stand-alone case or can be included on an FMS case with other lines. The IA is not required to develop a Manpower Travel Data Sheet (MTDS) for WWRS services because the USG manpower funding to support the WWRS program is already included on the WWRS services line as a percentage of defense articles sold.
S21m.6.1.1. For WWRS seller stand-alone cases, the Case Category and Case Nickname must be Worldwide Warehouse Redistribution Services (WWRS).
S21m.6.1.2. The Terms of Sale requirements are as follows:
- For WWRS seller stand-alone cases, the LOA must be “Cash With Acceptance - Balance as Billed” or “FMS Credit (Non-Repayable)”.
- For cases with other lines and the WWRS services line, the Terms of Sale is based on the other lines on the case.
S21m.6.1.3. The initial deposit requirements for LOA are as follows:
- For “Cash with Acceptance – Balance as Billed,” on WWRS stand-alone cases, the initial deposit for the LOA will be equal to five percent of the WWRS LOA line value plus 35 percent of the LOA administrative surcharge. When amending an existing case/line, the Amount Due with Amendment Acceptance will only be 35 percent of the LOA administration surcharge increase. There are no quarterly payments on WWRS stand-alone cases.
- For “FMS Credit (Non-Repayable),” the initial deposit is 100 percent of the WWRS case/line value. This Term of Sale does not include a payment schedule. Upon acceptance, 100 percent of the funds are due when amending an existing case/line.
- If there is a request to add a WWRS Services line to an existing LOA that is not only for WWRS Services, then the Terms of Sale used for the existing LOA apply. The added WWRS Services line value will be incorporated into the existing payment schedule for the LOA being amended. The FMS purchaser will pay 100 percent of the WWRS Services line value during the quarterly payment schedule process, even if no sales occur. Any unused funds can be returned through a drawdown modification or during case closure.
S21m.6.1.4. For any WWRS services line on a LOA, the IA will include the standard WWRS Program Requirements note in Appendix 6. Further, in the WWRS line description note, the IA will state “Note XX. LINE XXX – WORLDWIDE WAREHOUSE REDISTRIBUTION SERVICES. This line provides Worldwide Warehouse Redistribution Services (WWRS).”
S21m.6.1.5. The WWRS seller LOA does not include the cost of transporting the defense articles to the in-transit inspection point. The cost and arrangement are the seller’s responsibility and can be done with a designated freight forwarder or a commercial entity.
S21m.6.1.6. All basic cases not managed by the USAF that include the WWRS services line need an approval letter from the USAF WWRS program office as part of the case package sent to DSCA Office of International Operations, Global Execution and Development Directorate, Case Writing and Development Division (IOPS/GEX/CWD), in addition to the case package requirements in Section C5.4.14.
S21m.6.2. Worldwide Warehouse Redistribution Services Buyers. WWRS is a source of supply for FMS requisitions. All FMS-eligible purchasers can purchase eligible defense articles through WWRS. For FMS purchasers, a blanket order materiel line for spares or support equipment must be used. Cooperative Logistics Supply Support Arrangement (CLSSA) cases cannot be used to purchase through WWRS. The WWRS program office does not need to be advised for each eligible purchase to be filled by WWRS. FMS purchasers can use their existing Army, Navy, or Air Force FMS blanket order requisition cases or lines to order WWRS-listed articles found at https://afsac4.wpafb.af.mil/wwrs. FMS purchasers can direct requisitions to WWRS using Routing Identifier Code (RIC) “FWW” and routing media process code of “R” in cc 71 using the A01 format of the Military Standard Requisitioning and Issue Procedure (MILSTRIP). Likewise, FMS purchasers can use RIC “FNH” to first look at WWRS as a potential source of supply. The WWRS program office will fill the requisition if there is current inventory, and it is priced below current DoD pricing. Otherwise, the requisition passes to the next source of supply. FMS purchasers of WWRS articles are responsible to pay materiel costs and transportation costs from the in-transit inspection point to the supplementary address specified in the requisition, as well as any fees associated with expedited shipment or special packaging requirements.
S21m.6.2.1. The DoD can also accept the return of a defense article if it has a requirement for the defense article being returned and has available sufficient funds authorized and appropriated for such purpose. In order to facilitate such a transaction, the DoD organization submits a Military Interdepartmental Purchase request (MIPR) or Miscellaneous Obligations Requirements Document (MORD) to the WWRS program office.
S21m.7.1. The Implementing Agency maintains a central record showing the AECA Section 21(m) transfers back to the DoD. This record identifies the FMS partner, the defense articles originally purchased under Foreign Military Sales (FMS), the defense articles originally purchased under Direct Commercial Sales (DCS), and if the redistribution was for sale to other partners through an LOA or sale to the DoD. Information from this record is provided to DSCA upon request.
S21(m) Legislation and Authorities
Legislation | Subject |
|---|---|
Arms Export Control Act (AECA) Chapter 39, Subchapter II - Foreign Military Sales Authorizations - Sales from stocks – (m) Return of Defense Articles |
S21(m).9.1. N/A