Attachment 1: Security Assistance Management Manual E-Change 768
Updates to the Foreign Military Sales Only List

1. Update SAMM Chapter 4:

   Current:

   C4.3.4. Neutrality. DoD prefers that countries friendly to the United States fill defense requirements with U.S. origin items. Unless an item has been designated as "FMS Only," DoD is generally neutral as to whether a country purchases U.S.-origin defense articles or services commercially or through FMS channels. In some instances, such as for certain Government Furnished Equipment (GFE) and Government Furnished Materiel (GFM), Arms Export Control Act (AECA), section 38(a)(3), (22 U.S.C. 2778)) controls apply and items are sold only via FMS.

   C4.3.5. Foreign Military Sales-Only Determinations. The AECA gives the President discretion to designate which military end-items must be sold exclusively through FMS channels. This discretion is delegated under statutory authority to the Secretary of State. Generally, as a matter of policy, this discretion is exercised upon the recommendation of DoD.

   C4.3.5.1. State approves or disapproves all arms sales and is responsible for the continuous supervision and general direction of all sales. Each MILDEP or DoD Component develops recommendations for FMS-Only designations on specific weapons systems and military technologies considering the criteria in Section C4.3.5.3. and Section C4.3.5.4. The MILDEP or DoD Component forwards related recommendations and rationales for adding or removing such FMS-Only systems designations to DSCA (Office of International Operations (IOPS)) and DTSA. DSCA will provide such recommendations to State for its review and approval/disapproval. Through the export licensing process for DCS, overseen by the State, Directorate of Defense Trade Controls (State (DDTC)), DTSA will review licensing requests to ensure license requests are consistent with FMS-only designations. Requests for further assistance with FMS-Only designations should be directed to DSCA (IOPS) for reconciliation or referral to the appropriate DoD element for resolution.

   C4.3.5.2. Foreign Military Sales Only List. The key purpose of this list and related USG processes is the codification and more consistent application of the USG requirement that certain military items be sold only on a government-to-government basis. The following is a listing of military capabilities and systems by general category that the USG broadly considers to be available for export solely on an FMS-Only basis. Inclusion of items on the below list should not be construed as a change to policy as it exists as of September 2016.

   • Select Radars: such as but not limited to Active Electronically Scanned Array (AESA), Ballistic Missile Defense, and High-Frequency Phased Array Microwave
   • Air-to-Air Missiles
   • Attack Helicopters
   • Autonomous Weapons Systems
   • Ballistic Missile Defense Items: Effectors; Firing Units; Software
   • Special Purpose Aircraft Items
   • Counter Improvised Explosive Device Items
   • Cross Domain Solutions (involving critical U.S. systems)
   • Directed Energy Weapons
   • Fighter Aircraft
   • Ground Based Air Defense Items
   • Infrared Countermeasures
   • Intelligence Libraries/Threat Data
   • Laser Detection and Ranging (LADAR)/Light Detection and Ranging (LIDAR)
   • Man-Portable Air Defense Items
   • Military Aerosol Delivery Systems
   • Missiles
   • Mission Equipment/Systems
   • Mission Planning Systems
   • Missile Technology Control Regime Category I Items
   • Global Positioning System (GPS)/Pulse Per Second (PPS) (Allowances made for certain DCS transfers remain in effect)
   • Nuclear Weapons/Nuclear Propulsion
   • Select Electronic Warfare Items
   • Select Sensor Fusion Man-Portable Night Vision Devices
   • Sensor Fused Weapons
   • Stand Off Weapons
   • Sonar
   • Communications Security (COMSEC)
   • Select Torpedoes
   • Torpedo Countermeasures
   • Anti-Ship Cruise Missile Countermeasures
   • Unmanned Aerial Systems and related components

   C4.3.5.3. State uses four general criteria to determine whether a sale should be required to proceed through the FMS process: Legislative/Presidential restrictions; DoD/MILDEP policy, directive, or regulatory requirement, e.g., the NDP; government-to-government agreement requirements; and interoperability/safety requirements for U.S. Forces.

   C4.3.5.4. These State criteria, also outlined under DoD/MILDEP policy, can be further understood by considering four possible elements:

   C4.3.5.4.1. United States Political-Military Relationship with the End User. The geopolitical situation and security relationships are taken into account when considering the appropriateness of recommending FMS-Only. The inherent strengths of FMS or DCS licensing methods are also considered in selecting the method that best suits the interests of the United States and the foreign purchaser within the context of existing global security circumstances.

   C4.3.5.4.2. Sale of a New or Complex System or Service. DoD may recommend FMS-Only:

   C4.3.5.4.2.1. To maximize the purchaser's ability to assimilate the technologies and manage its acquisition/logistics.

   C4.3.5.4.2.2. For enhanced interoperability and cooperation between U.S. and purchaser military forces.

   C4.3.5.4.2.3. For end-items or services that require complex systems integration with other combat systems.

   C4.3.5.4.2.4. For end-items or services that require access to sensitive USG databases, libraries, or software-source code.

   C4.3.5.4.2.5. For end-items or services that require Enhanced End Use Monitoring (EEUM) or on-site accountability.

   C4.3.5.4.3. Diversion and Exploitation of Defense Systems Technologies. Security of sensitive technologies requires greater scrutiny in the transfer process. Defense systems and munitions that are not particularly complex or sensitive but still require enhanced control to prevent proliferation to rogue states or terrorist organizations represent another area where FMS may be more appropriate than DCS.

   Revised:

   C4.3.4. Neutrality. As a matter of policy, the USG is generally neutral as to whether a partner purchases U.S.-origin defense articles or services commercially or through Government-to-Government (G2G) channels (e.g. FMS). However, by exception the USG may determine that select defense articles, services, or technology be transferred on a G2G basis in order to protect its most sensitive and sophisticated technologies.

   C4.3.5. Government-to-Government Only Determinations. The Arms Export Control Act (AECA) (22 USC 2751) grants the President the authority to designate defense articles or services as transferable exclusively through G2G channels. The President delegated this authority to the Secretary of State. G2G-Only designated defense articles and services are consolidated into the G2G-Only List. DSCA coordinates and submits G2G-Only recommendations to State on behalf of the DoD.

   C4.3.6. Government-to-Government Only Criteria. Defense articles and services may be designated as G2G-Only on the basis of one or more of the following criteria:

   1. Technological Sensitivity and Sophistication: The most sensitive and sophisticated technology requires the highest degree of protection, which the FMS system can uniquely apply to the transfer and monitoring of defense articles. The test for determining the most sensitive and sophisticated technology is whether its unauthorized disclosure could reasonably be expected to cause exceptionally grave damage to U.S. critical military or intelligence advantage.
   2. Treaty, Agreement, or Legal Requirement: Any item required to be sold on a G2G basis due to a legislative requirement, treaty obligation, or G2G agreement with a foreign partner to which the United States is a party.
   3. USG Source of Supply: Items that are solely sourced from the USG, or that are critically dependent on provision of USG-sourced equipment, data, and/or services.

   C4.3.7. Applicability. Items included on the G2G-Only list are eligible for transfer under any USG-directed export authority, including but not limited to FMS, Building Partner Capacity (BPC), Presidential Drawdown Authority, AECA Section 30 Sales Agreements, or cooperative production or Research and Development agreements. In some cases, exports under these authorities are conducted by U.S. industry under an export license authorization. Inclusion of a defense article, component, or service on the G2G-Only list should not be understood to prohibit approval of an export license in furtherance of a USG authorized G2G program. Articles and services that require a Presidential determination to support, such as those covered by 22 USC 2378-1 and 42 USC 2121, may only be transferred via Government-to-Government channels. Such items are not included specifically in the G2G-Only list.

   C4.3.7.1. In order to support uniform application of export policy and provide transparency to industry, the G2G-Only list is designed to provide a consolidated reference for defense articles or services where mode of sale has been limited as a matter of policy. The list applies to transfers of articles or services made to a foreign ultimate end-user and is not meant to limit or prohibit exports or imports of components which support a USG program or contract (e.g. foreign sub-contract suppliers to a U.S. Prime vendor executing a USG program) unless explicitly stated.

   C4.3.8. G2G-Only List. For additional information on items contained in the G2G-Only List in the CAC-Enabled SAMM or contact DSCA (Office of International Operations, Weapons Directorate (IOPS/WPNS)) at dsca.ncr.iops.list.wpns-all-members@mail.mil.

Attachment 2: Security Assistance Management Manual E-Change 768 
CAC-SAMM Updates to the Foreign Military Sales Only List 

NOTE: Attachment is CUI and has been removed from this posting.

Please see the CAC-Enabled SAMM (https://dod365.sharepoint-mil.us/sites/OSDDSCA-CUI-SAMM) for the attachment.

Contact DSCA (Office of International Operations, Weapons Directorate (IOPS/WPN)) at dsca.ncr.iops.list.wpns-all-members@mail.mil for more information.

DoD CAC holders: please contact DSCA Office of Strategy, Plans, and Policy, Execution Policy and Analysis Directorate (SPP/EPA) at dsca.ncr.spp.mbx.epa@mail.mil with any questions regarding access to the site.