Changes to Foreign Military Sales Administrative Surcharge Structure and Rate

Baker, Beth M., DISAM Journal of International Security Assistance Management

Background

On 15 March 2006, the Defense security Cooperation Agency (DSCA) announced a package of reforms aimed at ensuring the continued solvency of the foreign military sales (FMS) Trust Fund Administrative Account. Included in these changes is an increase to the FMS administrative surcharge rate assessed against all FMS and FMS-like cases. The surcharge rate, 2.5 percent since 1999, will be 3.8 percent effective with cases or new case line items accepted on or after 1 August 2006. Other changes in the package include elimination of the Logistics Support Charge in fiscal year (FY) 2008, a requirement to collect a minimum amount against all FMS cases, and a commitment to clarify …

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Publication information: Article title: Changes to Foreign Military Sales Administrative Surcharge Structure and Rate. Contributors: Baker, Beth M. - Author. Magazine title: DISAM Journal of International Security Assistance Management. Volume: 28. Issue: 2 Publication date: Winter 2006. Page number: 1+. © Defense Institute of Security Assistance Management Fall 1997. Provided by ProQuest LLC. All Rights Reserved.

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