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The U.S. Foreign Military Sales (FMS) Program offers government contractors and suppliers to the U.S. defense industry valuable access to markets outside the United States and to bona fide customers in those markets. The FMS Program also presents unique export compliance advantages over other means of selling products to foreign governments and entities, such as Direct Commercial Sale (DCS) and Foreign Military Financing (FMF) arrangements.
Under the FMS process, foreign governments usually proceed through the U.S. Government, which issues a solicitation for desired supplies. From a contractor’s perspective, the deal resembles a traditional government procurement with delivery usually being made to a U.S. location for export by the U.S. Government. In some instances, however, the contractor is requested to ship overseas and thus take on any export licensing obligations. This can occur for exports of both military item