RULES AND REGULATIONS
_The Defense Security Cooperation Agency (DSCA), as part of the United States Department of Defense (DoD), provides financial and technical assistance, transfer of defense materiel, training and services to allies, and promotes military-to-military contacts. Any military sale is agreed upon by the Foreign Military Sales division of the DSCA.
The DSCA acts as agent for procurement for American defense companies and aerospace companies or for DoD stocks. FMS is managed and operated by DoD on a no-profit and no-loss basis. Countries participating in the program pay for defense articles and services at prices which recoup costs incurred by the United States.
Any agreement between the DSCA and a foreign customer has to be validated by the Defense Contract Management Agency (DCMA), which is the agency of the United States federal government responsible for performing contract administration services for the Department of Defense and other authorized federal agencies. After approval from the DCMA, only the Secretary of Defense or the President of the United States are allowed to overrule the agreement.
The basic activities which need to approved by both the DCSA and DCMA are:
The DSCA acts as agent for procurement for American defense companies and aerospace companies or for DoD stocks. FMS is managed and operated by DoD on a no-profit and no-loss basis. Countries participating in the program pay for defense articles and services at prices which recoup costs incurred by the United States.
Any agreement between the DSCA and a foreign customer has to be validated by the Defense Contract Management Agency (DCMA), which is the agency of the United States federal government responsible for performing contract administration services for the Department of Defense and other authorized federal agencies. After approval from the DCMA, only the Secretary of Defense or the President of the United States are allowed to overrule the agreement.
The basic activities which need to approved by both the DCSA and DCMA are:
- Exportation / importation of the United States' array of available military and dual-purpose products and services;
- Organization of licensed armament and military equipment production abroad;
- Maintenance and repairs of weapons, armaments, and military equipment supplied to customers;
- Modernization of armaments and military equipment made in the United States;
- Training of foreign specialists to operate and maintain supplied material in the United States and customer countries;
- Technical assistance in building military infrastructure installations, such as defense enterprises, airfields, depots, firing grounds, training centres, etc.;
- Promotion of innovative high-technology civil-purpose products developed by United States' defense contractors;
- Any other agreement which involves the Department of Defense, United States Armed Forces or United States' contractors.
Rules and regulations concerning the acquisition of U.S. equipment
__Concerning the sale of military equipment of United States' origin certain regulations will be applied. Foreign Sales are founded on a tradition of cooperation between the United States and other sovereign nations with similar values and interests in order to meet common defense goals. When dealing with the FMS foreign nations should take note that all regulations pointed out in the U.S. Foreign Assistance Act of 1961, as amended, and the Arms Export Control Act, as amended, and related statutes of the Department of Defense are required to be followed. Besides this the general regulations concerning the sale of military equipment state:
Article I:: The resale/redistribution of military equipment of U.S. origin is only allowed after approval of the United States government;
Article II:: It is not allowed to copy or re-engineer (parts of) military equipment of U.S. origin. Request for technologies can be addressed to Department of Defense directly.
Article III:: Nations must do everything in their power to keep their military equipment of U.S. origin from being copied by any government/military/organization.
Article IV:: The U.S. government has the right to deny selling of equipment, although the purchasing country has obliged to all the rules and regulations, without giving reason for the refusal.
Violation of these regulations will result in legal and financial sanctions.
Article I:: The resale/redistribution of military equipment of U.S. origin is only allowed after approval of the United States government;
Article II:: It is not allowed to copy or re-engineer (parts of) military equipment of U.S. origin. Request for technologies can be addressed to Department of Defense directly.
Article III:: Nations must do everything in their power to keep their military equipment of U.S. origin from being copied by any government/military/organization.
Article IV:: The U.S. government has the right to deny selling of equipment, although the purchasing country has obliged to all the rules and regulations, without giving reason for the refusal.
Violation of these regulations will result in legal and financial sanctions.