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When does title transfer in a Foreign Military Sale?

Updated 26 September 2026Checked against the SAMM: 26 September 2026

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

Drawn exclusively from publicly available authorities.

SAMM

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