Third Party Transfer Process Step-by-Step

Step 1: A government submits to the State Department Bureau of Political-Military Affairs, Office of Regional Security and Arms Transfers (PM/RSAT) an official written and complete request to either transfer, change endues, or dispose of U.S.-origin equipment acquired via foreign military sales (FMS) or grant program.

Options for sending requests to PM/RSAT:

• via U.S. embassy in country;
• via U.S. Defense Cooperation office (ie SAO, ODC, JUSMAG );
• direct to PM/RSAT by fax 202-647-9779.

*State recommends sending via post or Defense office as well as faxing to PM/RSAT to ensure efficient processing.

**To ensure request includes all required information for processing, please see accompanying document: Standard Questions for Third Party Transfer Cases.

Step 2: PM/RSAT reviews the request to ensure all information is accurate and complete and that the request meets U.S. law, policy, and regulations to recommend approval.

Step 3: When review is complete, all information is received, and recommendation for approval seems probable, PM/RSAT sends out end use, retransfer, and security assurances to the proposed recipient. This is done via cable, however, it can also be done simultaneously through fax or e-mail if the divesting country provides a point of contact to PM/RSAT. Assurances are sent after State desk officers of involved countries review and clear assurances.

Step 4: While awaiting assurances PM/RSAT conducts further research/analysis of the proposed case and prepares a recommendation of approval and in a few cases denial. This memo is then sent to all persons with equities in the decision making process including but not limited to State Department desk officers representing involved countries, Regional Security Officers, Defense Security Cooperation Agency (DSCA) desk officers representing involved countries, Defense weapons and disclosure personnel (ie. SAF/IA, NAVY/IPO, or USASAC), and State Department's legal office. Once all responses are received, PM/RSAT conducts a final review of the recommendation and as the executive body, sends the recommendation to the Bureau of Political-Military Affairs Assistant Secretary for decision in most cases and in a few cases to the Under Secretary for Arms Control and International Security.

Step 5: Once final signature from the Assistant Secretary or Under Secretary is obtained, notification of approval or denial goes out via cable and FAX/e-mail to the appropriate persons.

Congressional Notification Issues

1. In cases where the defense articles propose for transfer are either:

   
   

   • designated significant military equipment (SME) with a an original acquisition value of $50,000,000 or;
   • designated SME and further categorized as major defense equipment with an original acquisition value of $14,000,000 ($25,000,000 when divesting government is a NATO member, Australia, Japan, New Zealand).

   The case requires congressional notification. This means after final PM Bureau signature is obtained, the decision memo is sent to the Hill so that Congress can register comments. After a 30 day period expires and if no issues were raised during that time frame...approval is granted and official word is sent out via cable and other modes of communication.

   
   

2. In cases where the proposed defense articles carry an original value of at least $1,000,000, the transfer is entered in a written quarterly report sent to Congress. Such notification does not affect timing of overall processing of transfer.