Establish End Use Processes In-Country

Each Security Cooperation Organization (SCO) works with the country to ensure that a process exists for end use, including technical inspection and disposal, of U.S.-origin defense articles. The SCO ensures these processes specifically identify aircraft, ships, radars, armored vehicles, general purpose vehicles, artillery, mortars, and missiles, including non-consumable and/or reparable components of those items, that were acquired under the FAA of 1961, as amended.

End Use Monitoring

SCOs monitor the presence and use of U.S.-origin equipment as a matter of routine while performing other duties. Any suspected unauthorized end-use must be reported to DSCA (Office of International Operations (IOPS) and State with an information copy to the Combatant Command.

Excess Determinations

SCOs should encourage the country to declare MAP materiel excess when it is no longer needed and before items deteriorate. Items that are redistributed to defense forces within the country are not excess under this section.

Determine Condition of Excess Items

When MAP materiel is excess, the SCO determines its condition based on total or sample inspection, as appropriate, by qualified U.S. personnel. When this is not feasible, classification by partner authorities may be accepted. Disposal condition codes in DoD 4160.21 Vol. 3 shall be used.

Preparation of Screening Reports

SCOs report excess MAP items to the managing Implementing Agency (with an information copy to the Combatant Command and DSCA (IOPS). Items must meet the following criteria to be included on the report:

• Have a line acquisition value of $50,000 or more.
• In disposal Condition Codes 1 and 2 (unused-good and fair), 4 and 5 (used-good and fair), and 7 and 8 (repairs required-good and fair).
• Are not obsolete. Unless it is believed that markets exist in other countries, "obsolete" may be assumed if items are no longer in DoD inventories and are at least 30 years old or, if this cannot be determined, have been in-country for at least 20 years.

These screening reports should show:

• Item origin (e.g., "Transferred to country under MAP, January 1981")
• Item description
• National Stock Number (NSN) or part number
• Quantity
• Condition
• Acquisition and current value (estimated if not available)
• SCO recommendations for disposition

Items not meeting the screening criteria above and those not redistributed as a result of Military Department (MILDEP)/Defense Agency screening should be disposed of through DoD with State input.

Implementing Agency Review of Screening

Implementing Agencies review SCO-prepared screening results and advise whether the items should be re-distributed or disposed of. IAs provide any additional guidance required for reporting or redistributing excess MAP, including non-standard, items under their cognizance.

Post Screening Review for Disposal or Third Party Transfer

• MAP-provided equipment is not eligible for redistribution as EDA
• For item disposal, go to step #8
• For transfer to third parties, go to Step #10.

Request State Approval for Change in End Use – Disposal

Section C8.8. provides guidance on Changes in End Use (including Disposal) approval requirements. MAP recipients request USG approval for Change in End Use – Disposals from State based on the guidance. The request shall include but is not limited to the following information:

• The partner’s designation or description of the item, including the name, class, identification number, or other pertinent descriptive information if a vessel.
• Former U.S. designation of equipment, including the name, class, identification number, or other pertinent descriptive information if a vessel.
• Date of original acquisition by the United States and original acquisition cost.
• Date and means of acquisition of equipment by the partner and value of equipment at that time. This should be based on records if possible. If records are unavailable, best estimates should be provided and described as such.
• Item condition, using disposal condition codes as the guide (e.g., "Code S (scrap)-has no value except basic materiel content (destroyed in crash)" or "Code 5 (used, fair)-usable without repairs but somewhat worn or deteriorated and may soon require repairs.")
• Current estimated value, normally based on expected disposal method (e.g., scrap value).
• Proposed means of disposal (e.g., sale as scrap; sale or donation, following demilitarization if applicable) and if USG assistance is necessary.
• If the items were granted, whether retention of funds by the partner is requested and whether the request is supported by the SCO.
• Information about private entities/third parties that have been designated to provide disposal services on the partner’s behalf.
• A signed End Use Assurance document from the disposal service-providing third party.
• Any information required for review/approval for release to the third party.
• Information on any net proceeds expected through the disposal.

State Review/Approval of Disposal Request

• State reviews all disposal requests and determines whether they will be approved. State also determines whether a waiver can be granted to allow net proceeds to be retained by the recipient country.
• If State approves the disposal request, go to Step #12.
• If State does not approve the disposal request, State will coordinate with the partner, SCO, and other relevant offices on next steps with the requester.

Request State Approval for Third Party Transfer

Section C8.7. provides guidance on Third Party Transfer requirements. MAP recipients request USG authorization for Third Party Transfers from State based on the guidelines at Section C8.7. The request shall include but is not limited to the following information:

• The partner’s designation or description of the item, including the name, class, identification number, the presence of SME and/or COMSEC, or other pertinent descriptive information if a vessel.
• Date of original acquisition by the United States and original acquisition cost.
• Date and means of acquisition of equipment by the partner and value of equipment at that time. This should be based on records if possible. If records are unavailable, best estimates should be provided and described as such.
• Item condition, using disposal condition codes as the guide (e.g., "Code S (scrap)-has no value except basic materiel content (destroyed in crash)" or "Code 5 (used, fair)-usable without repairs but somewhat worn or deteriorated and may soon require repairs.")
• Current estimated value, normally based on expected disposal method (e.g., scrap value or third party sale with capability retained).
• If the items were granted, whether retention of funds by the partner is requested and whether the request is supported by the SCO.
• Information about the third party that will receive the defense articles designated for transfer, including their intended end use and a signed End Use Assurance document.
• Any information required for review/approval for release to the third party.
• Information on any net proceeds to be acquired through the transfer.

*MAP recipients should refer to the guidelines in Section C8.7. for the comprehensive list of information required to obtain USG authorization for the disposal.

State Review/Approval of Transfer Requests

• State reviews all Third Party Transfer requests and determines whether they will be approved. State also determines whether a waiver can be granted to allow net proceeds to be retained by the recipient country.
• If State approves the Third Party Transfer request and items are being transferred to another country or other third party, go to Step #12.
• If State does not approve the Third Party Transfer request, recipient country must find other means to dispose of the items.

Transfer to a Third Party or Disposal of Items

• Upon approval by State, the MAP recipient may transfer the items to the third party and/or dispose of the items in accordance with instructions provided by the USG.
• Go to Step #13

Net Proceeds Returned to USG

Net proceeds resulting from the item disposal must be returned to the USG unless a waiver has been granted by State. See Table C8.T6. for an explanation of the calculation of net proceeds.

Update MAP Records

SCOs in countries receiving or redistributing MAP property advise the appropriate MILDEP, DSCA, State, and any other necessary agency when transfer of articles has been completed, ensure that due-ins for items received are cancelled, and submit appropriate program change data to DSCA.