2017 International Logistics Meeting (ILM) Cartridge Actuated Devices/Propellant Actuated Devices (CADs/PADs) Transportation 23 – 25 May 2017 AIR-6.6.3.1T DAPML for PMA-201G1 Gary Howorka gary.howorka1@navy.mil 301-866-4489 DISTRIBUTION STATEMENT A – Approved for public release; distribution unlimited, as submitted under NAVAIR Public Release Authorization 2017-310.

Agenda Introduction FMS Partner Responsibilities Delivery Term Codes Requirements for CAD/PAD Shipments Questions 1 of 11

Introduction Delivery Intent Identify what is the intent of delivery and receipt of shipment During Pricing and Availability (P&A), the Delivery Term Code (DTC) on how the Foreign Military Sales (FMS) partners prefer to ship the item must be established Different DTCs have different costs associated Each DTC will be checked to ensure they are feasible and actionable for the items being procured Ensure cases have current and accurate Mark For, Freight Forwarder (FF), and Procuring Agency Codes These codes are required to complete the transportation plan and transportation assessments for case development There is no such thing as free shipping 2 of 11

FMS Partner Responsibilities Sends a letter to the Department of State’s Defense Trade Controls Directorate (PM/DDTC) identifying its FF Is responsible for export requirements if taking possession of purchases in the Continental United States (CONUS), or contracts with a registered FF to perform these functions Provides FF with signed copies of Letters of Offer and Acceptance (LOA) and other LOA-related documentation needed to export Without this shipments can be delayed by customs Secures appropriate authorizations: Explosive Exemption Numbers (EX#s) from the Department of Transportation (DOT) prior to moving Hazard Class 1 explosive in CONUS by commercial conveyance 3 of 11

FMS Partner Responsibilities (cont.) Maintains accurate Military Assistance Program Address Directory (MAPAD) addresses Obtains insurance on shipments (if desired) Handles all import customs actions and pays all customs charges for entry of materiel into purchaser's country Participates in the preparation of a Transportation Plan (TP): Affects coordination with security and customs authorities within its territory, and identifies points of contact Handles all customs actions of materiel returning to the United States 4 of 11

Delivery Term Codes – Initial Procurement 2 Department of Defense (DOD) is responsible from origin to destination in CONUS inland point Staging in CONUS as part of a kit or to an assembly/consolidation point 4 Purchaser has full responsibility of all transportation costs at the point of origin. Often forwarded collect to country freight forwarder. Collect Commercial Bill of Lading. Transportation is not part of the procurement cost 5 DOD is responsible from the point of origin to the country’s freight forwarder or CONUS Port of Embarkation/Entry (POE) on the inland carrier’s equipment Government Bill of Lading. Transportation is part of the procurement cost 7 DOD is responsible from origin to overseas inland destination on board the inland carrier’s equipment DOD (Door to Door) 8 DOD is responsible from origin to the CONUS POE on board the vessel or aircraft. The customer is responsible for all onward movement from CONUS POE Pilot pickup 9 DOD is responsible to the overseas Port of Debarkation (POD) alongside the vessel or aircraft. Customer is responsible for all transportation from POD and any other onward movements Defense Transportation System (DTS) (Channel Flight) Information is retrieved from Defense Transportation Regulation (DTR) – Part II, Appendix E, Section L (http://www.ustranscom.mil/dtr/part-ii/dtr_part_ii_app_e.pdf) 5 of 11

Delivery Term Codes (cont.) Cost of Various DTCs: *Transportation costs are calculated by multiplying the unit cost of the item and the percentage of the DTC selected* Information is retrieved from Security Assistance Management Manual (SAMM), Chapter 9, Table 4A (http://www.samm.dsca.mil/table/table-c9t4a) 6 of 11

Requirements for CAD/PAD Shipments Transportation Plans (TP) Required for FMS cases containing classified and sensitive material All TPs are approved by Naval Air Systems Command (NAVAIR) DOT EX#s FMS partner and asset-unique EX# is required for every CAD/PAD shipment being moved by a FF EX# packages should be in place six months prior to shipping It takes on average 180 days for EX# package to be approved by the DOT PMA-201G1 can assist FMS partners to develop/track EX# package approval EX#s are not required for shipments moving via DTCs 8 or 9 PLANNING: FMS cases must have a TP which identifies how to move the CAD/PAD while adhering to the DOT requirements 7 of 11

Requirements for CAD/PAD Shipments (Cont.) For your awareness: The Security Risk Code (SRC) and Controlled Inventory Item Code (CIIC) determine the level of security as well as procedures for transportation of that material FFs cannot receive, store CADs/PADs with SRCs/CIICs of 2-4 CADs/PADs with SRCs/CIICs of 2-4 must be transported using DTC 7, 8 or 9 using a DOD-controlled Port Security Assistance Management Manual (SAMM) http://www.samm.dsca.mil/chapter/chapter-7#C7.15. “SRC II through IV…These items must be exported and moved under Delivery Term Code (DTC) 7, 8, or 9 procedures through a DoD-controlled Port of Embarkation. This requirement cannot be waived” Defense Transportation Regulation (DTR) Part II, appendix E http://www.ustranscom.mil/dtr/part-ii/dtr_part_ii_app_e.pdf “FMS shipments of Security Risk Category 2, 3, and 4 sensitive conventional AA&E requires, as a minimum, DTC 8 processing” 8 of 11

Requirements for CAD/PAD Shipments (Cont.) Overseas Procurements: All overseas procurements are assigned DTC 4, and title transfer of the materiel is at the point of origin FMS partners are responsible for: Cost of the movement from the point of origin All export and/or import licenses Customs clearance for export/import 9 of 11

Questions? 10 of 11

Acronym List CADs/PADs – Cartridge Actuated Devices / Propellant Actuated Devices CIIC – Controlled Inventory Item Code CONUS – Continental United States DAPML – Deputy Assistant Program Manager Logistics DOD – Department of Defense DOT – Department of Transportation DTC – Delivery Term Code DTR – Defense Transportation Regulation DTS – Defense Transportation System EX# – Explosive Exemption Number FF – Freight Forwarder FMS – Foreign Military Sales ILM – International Logistics Meeting LOA – Letter of Offer and Acceptance MAPAD – Military Assistance Program Address Directory NAVAIR – Naval Air Systems Command P&A – Pricing and Availability PM/DDTC – Department of State’s Defense Trade Controls Directorate (PM/DDTC) POD – Port of Debarkation POE – Port of Embarkation SAMM – Security Assistance Management Manual SRC – Security Risk Code TP – Transportation Plan 11 of 11