The Defense Security Cooperation Agency is reducing the surcharge rate for foreign military sales by 8 percent, going from a 3.8 percent on every sale to 3.5 percent.
DSCA said the new rate goes into effect Nov. 1 and is supported by lead officials at the departments of Defense and State, as well as officials from the Office of Management and Budget.
Surcharges are assessed on the total value of an individual sale and covers administrative management costs of the foreign military sales program.
DSCA is required to manage the program at no cost to the U.S. government, in accordance with the Arms Export Control Act.
This new fee is part of the DSCA’s larger effort to reduce time needed for developing a sale, revise the method for calculating termination liability, rescinding the Small Case Management Line and implementing more anticipatory efforts such as the Special Defense Acquisition Fund.