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DEFENSE SECURITY COOPERATION AGENCY |
4/12/2007 |
MEMORANDUM FOR : SEE DISTRIBUTION SUBJECT : Net Proceeds from Third Party Transfers, DSCA Policy 07-15 [SAMM E-Change 77] Effective immediately, Chapter 8 of the Security Assistance Management Manual (SAMM) is updated to include a revised definition for net proceeds. The definition of net proceeds previously found in Chapter 11 of the SAMM has been deleted in its entirety. Section 505(f) of the Foreign Assistance Act of 1961, as amended (FAA), requires that recipients return net proceeds from the sale or disposal of defense articles granted either as EDA or under MAP. "Net proceeds" was defined simply as what remained after subtracting reasonable administrative costs of sale or disposal from the proceeds. As more sophisticated equipment has been granted in recent years, recipients are more often required to contribute greater expenses for refurbishment and necessary upgrades. The current definition does not make clear how net proceeds can be calculated in these circumstances to result in a fair share return to the recipient as well as to the USG. The proposed revision takes into consideration both the transfer value of the equipment provided by the USG and any capital investment by the recipient in arriving at an equitable distribution of the net proceeds from sale or disposal or EDA or MAP granted defense articles. The attached change will be included in the automated version of the SAMM found on the DSCA Web Page as SAMM E-Change 77. If you have any questions concerning this policy, please contact Ms. Di Bounds, State/PM-RSAT, at (202) 647-2882 or boundsad@state.gov or Mike Slack, DSCA/STR/POL, at (703) 601-3842 or e-mail: michael.slack@dsca.mil. Jeffrey B. Kohler ATTACHMENT : DISTRIBUTION :
DEPUTY ASSISTANT SECRETARY OF THE ARMY CC :
STATE/PM-RSAT |
Net Proceeds from Third Party Transfers Policy - SAMM E-Change XX
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