How does a Foreign Military Sales purchaser dispose of U.S.-origin equipment?

The disposal phase begins when an international partner has a need to dispose of all or part of a weapon system.

Often, an item must be demilitarized to eliminate its military capability. Classified features and those that pose physical or environmental hazards should be neutralized prior to or during the disposal process. Demilitarization procedures are outlined in DODM 4160.28, Volume 2. Demilitarization guidance is available from weapon system managers or through DLA Disposition Services. The SAMM, Section C8.8, provides further guidance on equipment demilitarization and disposal.

International partners also may consider transferring their unwanted materiel to another country as a means of disposal. This is typically done with items that still have military capability. It is the responsibility of the transferring country to locate a buyer that meets the approval of the U.S. All third-country transfers must be approved by the Department of State (DOS).

Both the DOS and DoW have set up end-use monitoring (EUM) programs to ensure that defense articles are used according to agreements with the U.S. from receipt to final disposal.

When the recipient government no longer requires an item and there is no other partner or entity that wants it, disposal may be in order. Thus, disposal is the final change of end-use and requires State Department authorization prior to demilitarization. For equipment acquired through a grant program, such as Military Assistance Program (MAP) or excess defense articles (EDA), title passes to the recipient country. However, the U.S. retains reversionary rights to certain kinds of grant items, depending on the transfer program and authorities used. If required by these programs or authorities, the recipient must agree in advance and in writing to return the equipment to the USG when it is no longer required for its intended purpose.

If the Defense Logistics Agency (DLA) determines that the materiel can neither be redistributed nor employed any longer, the recipient is obligated to take responsibility for its proper disposal and seek the consent of the DOS prior to doing so. The net proceeds from any such disposal or sale of MAP and other grant equipment will be paid to the USG unless another cost-sharing arrangement has been previously approved by the DOS. For guidance on MAP equipment disposal, see the SAMM, Appendix 8, Military Assistance Program. For items acquired through FMS with a country’s own funds, or through FMF or grant programs other than MAP or EDA, the USG has no reversionary rights; all proceeds of approved sales/transfers go to the host nation.

Title to DCS-acquired, U.S.-origin defense articles passes to the recipient country upon shipment. USG approval is required for third-party transfer and change of end-use only for those DCS-purchased items that are subject to export license (e.g., those items on either the USML or the CCL). Regardless of whether or not the export application was accompanied by a duly executed form DSP-83, all DCS USML exports must be approved for retransfer by PM/DDTC. All proceeds of approved sales/transfers go to the host nation.

If the international partner has been granted the right to dispose of U.S. defense materiel or articles, its disposal procedures should follow, in form and content, those used by DLA Disposition Services, though local methods and channels may be used when deemed to be appropriate by the USG. The following areas of attention are those deemed most important for ensuring U.S. trade control requirements:

• Determination of demilitarization requirements
• Conduct of sale
• Bidder screening
• End-use and retransfer assurance
• Import certificate/delivery verification (as required)

In some instances, materiel can only be disposed of as scrap, but this does not negate the requirement to follow appropriate security procedures. The procedures and standards which must be followed in the conduct of local disposal, are found in DoDM 4160.28, Volume 2. For more on the EUM and the disposal, see the SAMM C8.8.2.