THE UNIVERSITY OF THE ARMY 1775
Headquarters
Department of the Army
Washington, DC
29 February 2024

*Army Regulation 12–1

Effective 29 March 2024

Security Assistance and International Logistics

Security Assistance, Training, and Export Policy

By Order of the Secretary of the Army:

RANDY A. GEORGE

General, United States Army

Chief of Staff

MARK F. AVERILL

Administrative Assistant to the

Secretary of the Army

History. This publication is a major revision.

Authorities. This regulation implements Department of Defense Directive 5132.03 and Defense Security Cooperation Agency Manual 5105.38–M as directed by the Secretary of the Army. It prescribes responsibilities of the Army Secretariat, the Army Staff, Army Commands, and other Army organizations for management and execution of Army participation in security assistance programs.

Applicability. This regulation applies to the Regular Army, the Army National Guard/Army National Guard of the United States, and the U.S. Army Reserve, unless otherwise stated. It also applies to Department of the Army Civilians.

Proponent and exception authority. The proponent of this regulation is the Assistant Secretary of the Army (Acquisition, Logistics, and Technology). The proponent has the authority to approve exceptions or waivers to this regulation that are consistent with controlling laws and regulations. The proponent may delegate this approval authority, in writing, to a division chief within the proponent agency or its direct reporting unit or field operating agency, in the grade of colonel or the civilian equivalent. Activities may request a waiver to this regulation by providing justification that includes a full analysis of the expected benefits and must include formal review by the activity's senior legal officer. All waiver requests will be endorsed by the commander or senior leader of the requesting activity and forwarded through their higher headquarters to the policy proponent. Refer to AR 25–30 for specific requirements.

Army internal control process. This regulation contains internal control provisions in accordance with AR 11–2 and identifies key internal controls that must be evaluated (see appendix B).

Suggested improvements. Users are invited to send comments and suggested improvements on DA FormDA FormDepartment of the Army form 2028 (Recommended Changes to Publications and Blank Forms) directly to the Deputy Assistant Secretary of the Army for Defense Exports and Cooperation (SAAL–ZNE), 2530 Crystal Drive, Suite 1100, Arlington, VA 22202–3934.

Distribution. This regulation is available in electronic media only and is intended for the Regular Army, the Army National Guard/Army National Guard of the United States, and the U.S. Army Reserve.

*This regulation supersedes AR 12–1, dated 18 February 2021.

AR 12–1 • 29 February 2024

UNCLASSIFIED

Within the DoD, the Under Secretary of Defense for Policy (USD (P)) is the SECDEF’s principal security assistance representative. The Deputy Assistant Secretary of Defense for Security Cooperation oversees Building Partner Capacity (BPC) programs for the DoD. With respect to security assistance, the USD (P) is assisted by the Assistant Secretary of Defense for International Security Affairs (ASD (ISA)). The ASD (ISA) exercises authority, direction, and control over the Director, DSCA. The DSCA is the DoD’s principal organization for security assistance and provides overall security assistance guidance to each military de-partment (MILDEP). The Director, DSCA is the proponent for the E-SAMM.

Administrative cost The value of costs associated with the administration of the FMSFMSFinancial management specialist program. The prescribed administrative percentage cost for a case appears in the LOA. This percentage is applied against the case. Expenses charged directly to the FMSFMSFinancial management specialist case (as prescribed by the LOA) are not included. (DSCA Manual 5105.38 – M)

Arms Export Control Act The basic U.S. law providing the authority and general rules for the conduct of FMSFMSFinancial management specialist and commercial sales of defense articles, defense services, and training. The AECA came into existence with the passage of the Foreign Military Sales Act (FMSA) of 1968. An amendment to the International Security Assistance and AECA of 1976 changed the name of FMSA to the AECA. (DSCA Manual 5105.38 – M)

Army Security Assistance Enterprise A diverse collection of organizations focused on delivering military materiel, services, and training to allied and partner nations.

Blanket order case An agreement between a foreign customer and the USG for a specific category of items or services (in- cluding training) with no definitive listing of items or quantities. The case specifies a dollar ceiling against which orders may be placed. (DSCA Manual 5105.38 – M)

Commercial sale A sale of defense articles or defense services made under a DOS-issued license by U.S. industry directly to a foreign buyer, and which is not administered by DoD through FMSFMSFinancial management specialist procedures. Also referred to as direct commercial sales. (DSCA Manual 5105.38 – M)

Commitment Any communication between a responsible U.S. official and a representative of any country or interna- tional organization that could reasonably be interpreted as being a promise that the U.S. will provide a for- eign government or international organization with either funds (including long-term credit assignments), goods, services, or information. (DSCA Manual 5105.38 – M)

Cooperative logistics supply support arrangement Military logistics support arrangements designed to provide responsive and continuous supply support at the depot level for U.S.-made military materiel possessed by foreign countries and international organiza- tions. The CLSSA is normally the most effective means for providing common repair parts and secondary item support for equipment of U.S. origin that is in allied and friendly country inventories. (DSCA Manual 5105.38 – M)

Coproduction A program implemented by a government-to-government or commercial licensing arrangement that ena- bles a foreign government or firm to acquire the “know-how” to manufacture or assemble, repair, main- tain, and operate, in whole or in part, a defense item. (DSCA Manual 5105.38 – M) (Also referenced as co- operative production in DoDI 2010.06 and DoDI 5530.03.)

Defense article As defined in FAA, Section 644(d) and AECA, Section 47(3), includes any weapon, weapons system, mu- nitions, aircraft, vessel, boat, or other implement of war; any property, installation, commodity, material, equipment, supply, or goods used for the purposes of furnishing military assistance or making military sales; any machinery, facility, tool, material, supply, or other item necessary for the manufacture, produc- tion, processing, repair, servicing, storage, construction, transportation, operation, or use of any article or any component or part of any articles listed above, but shall not include merchant vessels, or as defined by the Atomic Energy Act of 1954, as amended, source material, byproduct material, special nuclear ma- terial, production facilities, utilization facilities, or atomic weapons or articles involving restricted data. (DSCA Manual 5105.38 – M)

Defense service As defined in FAA, Section 644(f) and AECA, Section 47(4), includes any service, test, inspection, repair, training, publication, technical or other assistance, or defense information used for the purpose of furnishing military assistance or FMSFMSFinancial management specialist, but does not include military education and training activities or de- sign and construction services under AECA, Section 29. (DSCA Manual 5105.38 – M)

Delivery Includes constructive or actual delivery of defense articles; also includes the performance of defense ser- vices for the customer or requisitioner, as well as accessorial services, when they are normally recorded in the billing and collection cycle immediately following performance.

Diversion Any deliberate action that causes materiel ordered to meet a foreign commitment or U.S. requirements to be delivered to other than the original intended recipient.

Excess defense articles 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. EDAs are items (except construction equipment) which 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. (DSCA Manual 5105.38 – M)

Foreign military sales A process, authorized by the AECA, through which eligible foreign governments and international organi- zations may purchase defense articles, services, and training from the USG. (DSCA Manual 5105.38 – M)

Foreign military sales case A U.S. LOA, and any subsequent Amendments or Modifications, that has been accepted by an eligible foreign country. (DSCA Manual 5105.38 – M)

Grant A form of assistance involving a gift of funds, equipment, and/or services which is furnished by the USG to selected recipient nations on a free, nonrepayable basis. (DSCA Manual 5105.38 – M)

Implementing activity ACOMs and organizations within the MILDEPs who are authorized to receive and action requests for in- formation, pre-LOR requests, and LORs. Implementing activities are responsible for collaborating, syn- chronizing, and integrating pre-LOR, case development, execution, and case closure efforts.

Implementing agency The MILDEP or defense agency responsible for the execution of MAPs. With respect to FMSFMSFinancial management specialist, the MILDEP or defense agency assigned responsibility by DSCA to prepare an LOA and to implement an FMSFMSFinancial management specialist case. Responsible for the overall management of the actions that will result in delivery of the materi- als or services set forth in the LOA that was accepted by a foreign country or international organization. (DSCA Manual 5105.38 – M)

International military education and training program That component of the U.S. security assistance program which provides training to selected foreign mili- tary and defense associated civilian personnel on a grant basis. Training is provided at U.S. military facili- ties and with U.S. Armed Forces in the Unites States and overseas, and through the use of SATs. Train- ing also may be provided by contract technicians, contractors (including instruction at civilian institutions), or by correspondence courses. The IMET Program is authorized by the FAA. (DSCA Manual 5105.38 – M)

International traffic in arms regulation A regulation prepared by the Bureau of Political-Military Affairs, DOS, Directorate of Defense Trade Con- trols, providing licensing and regulatory provisions for the import and export of defense articles, technical data, and services. The ITAR also includes the USML. (DSCA Manual 5105.38 – M)

Lease (security assistance) An agreement for the temporary transfer of the right of possession and use of a non-EDA or articles to a foreign government or international organization, with the lessee agreeing to reimburse the USG in U.S. dollars for all costs incurred in leasing such articles and to maintain, protect, repair, or restore the arti- cle(s), subject to and under the authority of AECA, Section 61 (22 USCUSCUnited States Code 2796). (DSCA Manual 5105.38 – M)

Letter of offer and acceptance The document the USG uses to offer to sell defense articles and services to a foreign government or in- ternational organization under the AECA as amended. The LOA lists the items and/or services, estimated costs, and terms and conditions of sale, and provides for the foreign government’s signature to indicate acceptance. (DSCA Manual 5105.38 – M)

Letter of request The term used to identify a request from an eligible FMSFMSFinancial management specialist participant country for the purchase of U.S. de- fense articles and services. The request may be in message or letter format. (DSCA Manual 5105.38 – M)

Major defense equipment Any item of SMESMESignificant military equipment on the USML having a nonrecurring research and development cost of more than $50 million or a total production cost of more than $200 million. (DSCA Manual 5105.38 – M)

Military Articles and Services List Catalog of materiel, services, and training used in the planning and programming of IMET and FMSFMSFinancial management specialist. (DSCA Manual 5105.38 – M)

National Disclosure Policy Promulgates national policy and procedures in the form of specific disclosure criteria and limitations, defi- nitions of terms, release arrangements, and other guidance required by U.S. departments and agencies having occasion to release classified U.S. military information to foreign governments and international organizations. In addition, it establishes and provides for the management of an interagency mechanism, and includes procedures that are required for the effective implementation of that policy. (DSCA Manual 5105.38 – M)

Offset agreement An agreement, arrangement, or understanding between a U.S. supplier of defense articles or defense services and a foreign country under which the supplier agrees to purchase or acquire, or to promote the purchase or acquisition by other U.S. persons of goods or services produced, manufactured, grown, or extracted, in whole or in part, in that foreign country in consideration for the purchase by the foreign coun- try of defense articles or defense services from the supplier. (DSCA Manual 5105.38 – M)

Price and availability Prepared in response to a foreign government’s request for preliminary data for the possible purchase of a defense article or service. P&A data are not considered valid for the preparation of an LOA nor do they constitute a commitment by the USG to offer for sale the articles and services for which the data are pro- vided. (DSCA Manual 5105.38 – M)

Repair and return Programs by which eligible foreign countries return unserviceable repairable items for entry into the U.S. MILDEP repair cycle. Upon completion of repairs, the same item is returned to the country and the actual cost of the repair is billed to the country. (DSCA Manual 5105.38 – M)

Security assistance Group of programs authorized by the FAA of 1961 and the AECA of 1976 or other related statutes by which the U.S. provides defense articles, military training, and other defense-related services by grant, loan, credit, or cash sales in furtherance of national policies and objectives. Security assistance is one element of security cooperation, which is funded and authorized by the DOS and administered by the DSCA (see DSCA Manual 5105.38 – M and DoDD 5132.03).

Security assistance organization See security cooperation organization.

Security cooperation See DSCA Manual 5105.38 – M; see also DoDD 5132.03 and DoDI 5132.15.

Security cooperation organization See DSCA Manual 5105.38 – M; see also DoDD 5132.03.

Significant military equipment Defense articles for which special export controls are warranted because of the capacity of such articles for substantial military utility or capability. These items are identified on the USML in the ITAR by an aster- isk preceding the item category listing. (DSCA Manual 5105.38 – M)

System support buyout An opportunity for international partners to make a final purchase of major items and associated spares and support equipment of a major system that is being terminated in the DoD inventory, prior to contracts or production being discontinued. (DSCA Manual 5105.38 – M)

Technical assistance agreement An agreement (for example, contract) for the performance of a defense service(s) or the disclosure of technical data, as opposed to an agreement granting a right or license to manufacture defense articles. Assembly of defense articles is included under this type of agreement, provided production rights or man- ufacturing know-how are not conveyed.

Technical data See DSCA Manual 5105.38 – M.

Technical data package Normally includes technical design and manufacturing information sufficient to enable the construction or manufacture of a defense item component modification, or to enable the performance of certain mainte- nance or production processes. It may include blueprints, drawings, plans, or instructions that can be used or adapted for use in the design, production, manufacture, or maintenance of defense items or tech- nology. (DSCA Manual 5105.38 – M)

Total package approach See DSCA Manual 5105.38 – M.