scope:

A. This regulation establishes the policy and procedures prescribing the methods and conditions under which discrepancies in Foreign Military Sales (FMS) shipments are processed. It provides for the basic documents required to support adjustment of property and financial inventory accounting records, notification to shipper of the type of discrepancy, required corrective actions, disposition instructions, and information for management evaluations.

B. This regulation is applicable to HQ DLA and the DLA primary level field activities, other DoD agencies, and the Army, Navy, Air Force, Marine Corps, and General Services Administration (GSA) shipping and receiving FMS materiel through the military or GSA supply and distribution systems. Excluded are:

1. Reporting of transportation-type discrepancies for FMS shipments processed through the Defense Transportation System (DTS) which will be processed under AR 55-38/NAVSUPINST 4610.33C/AFR 75-18/MCO P4610.19D/DLAR 4500.15, Reporting of Transportation Discrepancies in Shipments.

2. Reporting of discrepancies in Grant Aid shipments will be processed under DLAR 4140.55/AR 735-11-2/SECNAVINST 4355.18/AFR 400-54/MCO 4430.3J, Reporting of Item and Packaging Discrepancies.