What is end-use monitoring in Foreign Military Sales?

AECA Section 40A (22 U.S.C. 2785) requires the President to establish an EUM program to improve accountability with respect to defense articles sold, leased, or exported under the AECA or the FAA of 1961, as amended. The Director, Defense Security Cooperation Agency (DSCA), has been delegated authority by the Secretary of War and Under Secretary of War for Policy (USW(P)) to administer the DoW EUM program, known as Golden Sentry, to comply with Section 40A of the AECA.

The EUM program is designed to provide reasonable assurances that the recipient of U.S. defense articles is complying with the requirements imposed by the USG regarding the transfer, use, and protection of U.S.-origin defense articles and technology in the possession of international partners.

The decision to transfer or not hinges to a great extent on the recipient’s willingness to comply with the following three conditions:

1. Transfer: Will not transfer title or possession to anyone who is not an officer, employee, or agent of the purchaser unless given prior consent to do so by the USG;

2. Use: Will not use defense articles for purposes other than those authorized by the USG;

3. Protection: Will furnish substantially the same degree of security or protection that the USG would provide for the same article or information received.

In addition, the recipient must permit verification of the security measures and end use by representatives of the USG, typically the members of the Security Cooperation Organization (SCO).

These requirements are specified in the SAMM, Chapters 5 and 8, and the standard terms and conditions of every Letter of Offer and Acceptance (LOA), and they will be included in any document authorizing the transfer of U.S.-origin defense articles and services.

Monitoring the use of U.S.-origin items is a joint responsibility of the receiving partner country or international organization (e.g., NATO) and the USG. USG representatives have full responsibility for monitoring defense articles until title is transferred to the partner. The partner country or international organization assumes monitoring responsibility based on the terms under which the transfer is made, including any restrictions on physical security and accountability. USG representatives retain a continuing responsibility under Golden Sentry to assist DSCA in verifying the appropriate end use and security of U.S.-origin defense articles and defense services sold or otherwise transferred on a government-to-government basis.

There are two levels of EUM which may need to be carried out by the SCO and the recipient country or organization: routine and enhanced.

Unless an article is designated for enhanced monitoring, Routine EUM (REUM) is required for all defense articles and services provided through government-to-government programs. Articles and information subject to REUM are typically less sensitive or unclassified in comparison to items/data subject to enhanced end-use monitoring, and there are normally no special or additional security, use, or handling requirements specified in the LOA. Every SCO must conduct REUM observations at least quarterly and record them in the SCIP-EUM database. SCOs should perform these REUM checks in conjunction with other duties, using opportunities such as visits to partner installations, training or exercise observation, etc., or, credible reports provided by local media sources or other embassy, USG, or USG contract personnel.

Enhanced EUM (EEUM), based on the principle of trust with verification, is required for specific kinds of defense articles and services and certain individual transfers of articles or technology otherwise subject to REUM. These "individual transfers" may be designated for EEUM by MILDEP export policies, stipulations imposed by interagency release approvals, or through special conditions imposed on these particular transfers by DoW, DOS, or Congress. All EEUM-designated defense articles are required to be sold on defined order lines using an EEUM-coded Military Articles and Services Listing (MASL) and are accompanied by specialized physical security and accountability notes found in the LOA or other document governing these transfers.