scope:

Purpose

a. To establish Department of the Navy (DON) policy guidance and procedures for the transfer of United States (U.S.) naval vessels and service craft (hereinafter "naval vessels" or "ships") by sale, lease, grant, or any other arrangement to foreign governments and international organizations under provisions of references (a), (b), and (c).

b. This instruction applies to the transfer of naval vessels which have been, or will be, removed from service in the U.S. Navy. It does not apply to the sale and delivery of naval vessels to foreign customers from new procurement.

c. Naval vessel transfers support U.S. foreign policy objectives by satisfying defense requirements of allied and friendly governments and by strengthening mutual defense arrangements with those governments. The transfer of U.S. naval vessels significantly improves the capabilities of foreign navies, which make conservative investments (compared to the cost of new construction) to acquire and modify these vessels for their own operations.

d. The Deputy Under Secretary of the Navy (DUSN) develops and approves related policy guidance and procedures in accordance with reference (d).