|January 05-11, 2019
DSCA Policy Memo 19-32 Update to Cargo Preference Requirements has been posted.
This memorandum updates the Cargo Preference requirements in Chapter 7 of the Security Assistance Management Manual (SAMM) to reflect the current ocean shipping environment and to ensure the maximum amount of applicable cargoes are carried by U.S. Flag vessels, while remaining responsive to foreign partners’ needs.
C7.9.1. Cargo Preference (Ocean) and subsections.
DSCA Policy Memo 19-43 Reduction to the Foreign Military Sales (FMS) Contract Administrative Services Surcharge Rate and Rate Structure has been posted.
In accordance with the SAMM, Chapter 9, paragraph C220.127.116.11, DSCA conducted a comprehensive review of the Contract Administration Services Cost Clearing Account, including a review of the CAS surcharge rate. This review concluded that higher than expected annual sales has led to a healthy account balance sufficient enough to meet anticipated expenditures until the next review cycle in five years and supported a reduction to the CAS surcharge rate. As a result, the Office of the Under Secretary for Defense – Comptroller has approved a 0.20% reduction – from 1.20% to 1.00% -- in the CONUS FMS CAS surcharge rate, effective February 1, 2020.
Table C9.T4. Table of Charges.