Guide
When does title transfer in a Foreign Military Sale?
Title to materiel passes to the purchaser at the initial point of shipment unless the says otherwise: at the contractor's loading facility for items procured from a contractor, and at the depot for items sold from stock. Title is not the same as delivery; the point of delivery, set by the , is where responsibility for moving the shipment passes to the purchaser.
When does title transfer in a Foreign Military Sale?
The title of equipment and materiel will pass at the initial point of shipment (point of origin) unless otherwise specified in the . Title of DoW articles sold from stock will normally transfer at the U.S. depot. Items procured from contractors will generally pass title at the contractor’s loading facility. Title to normally passes at the point of origin. Title of defense articles transported via parcel post passes to the purchaser on the date of parcel post shipment. materiel articles transferred under pass title at the point of delivery.
The point of delivery is where responsibility for the physical movement of an shipment passes from the DoW to the purchaser. The point of delivery is identified on the by the . The point of delivery is generally a commercial airport or seaport and it can also be the ’s facility. However, there are numerous situations when the point of delivery may be at a military on board the purchaser’s carrier or at an overseas POD or final destination.
When using the , the generally maintains control and custody of the materiel (but not the title) until delivery to the purchaser. Since use of an -funded bill of lading for an shipment is considered a shipment, the DoW is performing a reimbursable service for the customer, and custody must not be construed to mean retention of title or acceptance by the DoW of any risk of loss or damage.
References
SAMM
- SAMM C7.3.1 — Procurement Items.
- SAMM C7.3.3 — Excess Defense Articles.
- SAMM C7.3.6 — Ferrying of Aircraft.
- SAMM C7.4.1 — Delivery Term Code.
- SAMM C15.5.6.4 — Retention of Title Before Transfer and Receipt of Materiel.
Related
Foreign Military Sales (FMS)
A process, authorized by the Arms Export Control Act, through which eligible foreign governments and international organizations may purchase defense articles, services, and training from the United States Government.
SAMM Glossary, as of 12 September 2026
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Letter of Offer and Acceptance (LOA)
The legal instrument used by the USG to transfer itemized defense articles, defense services, and design and construction services to foreign partners.
When used under the authorities provided in the Arms Export Control Act for Foreign Military Sales, the LOA is a binding agreement signed by the USG and the foreign partner to transfer such articles and services.
When used under Building Partnership Capacity (BPC) authorities, the BPC LOA is not signed by the Benefitting Partner.
SAMM Glossary, as of 12 September 2026
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Delivery Term Code (DTC)
A single character code that represents how far the USG is responsible for arranging transportation of defense articles going to an international customer.
SAMM Glossary, as of 12 September 2026
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Excess Defense Articles (EDA)
Defense articles owned by the USG which are neither procured in anticipation of military assistance or sales requirements, nor procured pursuant to a military assistance or sales order. EDA are items (except construction equipment) that are in excess of the Approved Force Acquisition Objective and Approved Force Retention Stock of all DoD components at the time such articles are dropped from inventory by the supplying agency for delivery to countries or international organizations.
SAMM Glossary, as of 12 September 2026
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LOA — Letter of Offer and Acceptance
SAMM Acronyms, as of 12 September 2026
FMS — Foreign Military Sale
SAMM Acronyms, as of 12 September 2026
Notice of Availability (NOA)
The method by which the U.S. shipping installation will provide advance notification to the designated Foreign Military Sales (FMS) country representative or freight forwarder that the materiel is ready for shipment and, where appropriate, that the shipment requires an export release.
SAMM Glossary, as of 12 September 2026
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NOA — Notice of Availability
SAMM Acronyms, as of 12 September 2026
EDA — Excess Defense Articles
SAMM Acronyms, as of 12 September 2026
Port of Debarkation (POD)
A military or commercial air or ocean port at which materiel is offloaded. Also referred to as the Port of Discharge.
SAMM Glossary, as of 12 September 2026
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CONUS — Continental United States
SAMM Acronyms, as of 12 September 2026
Freight Forwarder
A commercial import/export company registered with the Department of State, Bureau of Political-Military Affairs, Directorate of Defense Trade Controls and under contract to the Foreign Military Sales customer which arranges transportation of materiel from a point specified in the Letter of Offer and Acceptance to the final destination.
SAMM Glossary, as of 12 September 2026
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POE — Port of Embarkation
SAMM Acronyms, as of 12 September 2026
DTC — Delivery Term Code
SAMM Acronyms, as of 12 September 2026
Letter of Request (LOR)
The term used to identify a request from an eligible FMS participant country for the purchase of U.S. defense articles and services. The request may be in message or letter format.
SAMM Glossary, as of 12 September 2026
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Continental United States (CONUS)
U.S. territory, including the adjacent territorial waters, located within the North American continent between Canada and Mexico. Does not include Hawaii or Alaska.
SAMM Glossary, as of 12 September 2026
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DTS — Defense Transportation System
SAMM Acronyms, as of 12 September 2026
SCO — Security Cooperation Organization
SAMM Acronyms, as of 12 September 2026
Defense Article (Foreign Assistance Act; Arms Export Control Act, not including commercial sales subject to the International Traffic in Arms Regulation)
Any weapon, weapons system, munition, aircraft, vessel, boat, or other implement of war;
SAMM Glossary, as of 12 September 2026
Defense Service (Foreign Assistance Act (FAA); Arms Export Control Act (AECA))
Any service, test, inspection, repair, training, publication, technical or other assistance, or defense information used for the purpose of furnishing military assistance or sales of the United States, but does not include military education and training activities under section 2347 of the FAA (22 U.S.C 2347) or design and construction services under section 29 of the AECA.
SAMM Glossary, as of 12 September 2026
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Security Cooperation
Activities undertaken by the DoD to encourage and enable international partners to work with the United States to achieve strategic objectives. It includes all DoD interactions with foreign defense and security establishments, including all DoD-administered security assistance programs, that: build defense and security relationships that promote specific U.S. security interests, including all international armaments cooperation activities and security assistance activities; develop allied and friendly military capabilities for self-defense and multinational operations; and provide U.S. forces with peacetime and contingency access to host nations.
SAMM Glossary, as of 12 September 2026
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ITAR — International Traffic in Arms Regulations
SAMM Acronyms, as of 12 September 2026
Glossary entry →International Traffic in Arms Regulation (ITAR) →