Shipping and Claims · 3 of 3
When cargo is lost or damaged between origin and destination, the record that preserves a claim is filed by someone other than the owner. "When a discrepancy occurs in-transit, Security Cooperation Organizations (SCOs) must submit a Defense Department (DD) Form 361; Transportation Discrepancy Report (TDR) for Defense Transportation System (DTS)-routed Foreign Military Sales (FMS) and grant aid deliveries" (SAMM C7.21).
The restriction is stated in four words: "The purchaser cannot submit a TDR" (SAMM C7.21). A buyer discovering a problem must reach the American office in its own country and have that office file.
The purpose is evidential rather than remedial. "A TDR documents lost shipments and establishes an official record for future claims against a carrier for loss or damage" (SAMM C7.21). It is also distinct from a supply discrepancy report, which covers what was in the crate rather than what happened to it, and is described in supply discrepancy reports.
The answer depends entirely on who arranged the movement, and getting it wrong wastes months.
Where the buyer or its forwarder arranged carriage, the claim is theirs. "Claims against carriers or third-party billing shipments and FMS freight forwarder-contracted carriers must be filed by purchasers or their FMS freight forwarders directly with the carriers" (SAMM C7.21.1).
Where the American government arranged it, the claim is its own. "For DoD-furnished or contracted transportation, DoD is responsible for submitting claims against carriers" (SAMM C7.21.2). Three organizations divide the work by mode: an army transportation command handles ocean carriers, an air mobility command handles air carriers, and the shipping activities themselves claim against inland carriers.
Money recovered goes back to the buyer rather than into a general fund. "Any proceeds from these claims are forwarded by the Implementing Agency (IA) to purchaser accounts held by Defense Financial Accounting Services - Indianapolis (DFAS-IN)" (SAMM C7.21.2).
Before anything can be claimed, the shipment has to be declared missing, and that duty falls on the buyer. "When an IA has furnished shipment status showing item pickup by an inland carrier, but materiel has not been received, the purchaser is responsible for initiating a tracer action" (SAMM C7.21.3). Shipping activities assist by producing constructive proof of delivery or information from carriers.
The order of approach is prescribed. "For all shipments processed through FMS freight forwarders, purchasers should direct tracer requests to their FMS freight forwarders before addressing any inquiries to DoD" (SAMM C7.21.3.1). Going to the government first slows the search rather than speeding it.
Where the forwarder says it never received the cargo, there is a freshness rule worth knowing. It "may contact the shipping activity directly for assistance, especially if the shipment is less than 30 days old" (SAMM C7.21.3.2). Old trails go cold here as everywhere.
If proof of delivery does appear, the search turns back inward, and the buyer follows up with the forwarder to establish whether the item was received after all. If the forwarder's records still show nothing, a formal tracer against the inland carrier follows, and the route depends on how the shipment was billed. A misdirected shipment is a separate problem, and the implementing agency can help redirect it (SAMM C7.21.3.3).
A claim is only as strong as the paperwork behind it. "To resolve claims of non-receipt, the USG provides evidence of shipment", with bills of lading, postal receipts and parcel carrier pickup documents given as examples (SAMM C7.21.4).
Beyond that minimum, the manual asks the office filing on the buyer's behalf to supply as much as it can. The list runs to bills of lading, a delivery receipt, photographs, the carrier's inspection report, a government inspection report, an actual repair cost estimate, and signed and dated statements from the people who found the damage (SAMM C7.21.4.1).
That list is a checklist for the receiving end. Photographs taken before a crate is moved, and a dated statement from whoever opened it, are the items most often missing and the easiest to produce.
Equipment returning for repair is a shipment like any other, with the direction reversed and the responsibilities redistributed. "If possible, items returned to the United States for servicing should be moved by a purchaser or a purchaser's Foreign Military Sales (FMS) freight forwarder" (SAMM C7.20.1).
Sensitive cargo cannot take a commercial route home. "Arms, Ammunition, & Explosives (AA&E) or Sensitive items are returned through a DoD-controlled ocean or aerial port as indicated by the Security Risk Category (SRC)" (SAMM C7.20.1).
Customs works in both directions and belongs to the buyer at both ends. "The purchaser and FMS freight forwarder are responsible for clearance through U.S. Customs and any other necessary documentation, as well as the purchaser's Customs" (SAMM C7.20.1). Onward movement to the repair facility then depends on the delivery term code on the case.
The government transport system remains available as an exception: "Under special circumstances, the Defense Transportation System (DTS) can be used to return items to CONUS for service and return" (SAMM C7.20.1). Where a transportation plan applies, the return leg is written into it.
Two kinds of cargo carry an approval requirement that has nothing to do with export control and is easy to discover too late.
The first is explosives moving commercially inside the United States. The transport regulator issues authorizations known by number, "which are required for commercial conveyance of all HAZMAT containing Hazard Class 1 (HC1) Explosives, such as rockets, missiles, torpedoes, and explosives" (SAMM C7.16). The reach is wider than the name suggests: "Any article containing HC1 materiel requires an EX-Number, regardless of overall Hazard Classification" (SAMM C7.16).
A departmental number covers the first leg out, and stops there. It may be used for the initial export where the cargo moves through the government transport system, but "Once custody of the materiel is transferred to the purchaser, the DoD EX-Number is no longer valid for the movement of FMS-origin HC1 articles" (SAMM C7.16.2.1). Any later commercial movement inside the United States, and any return for repair, modification, upgrade, testing or exercises, needs the buyer's own number. Returning explosives are caught by the same rule from the other direction: "All Hazard Class (HC) 1 articles returning to CONUS must have a country-specific EX-Number" (SAMM C7.20.1).
One exemption exists at the small end. Small arms cartridges with inert projectiles or blanks, not exceeding .50 caliber or 8 gauge, need no number where the manufacturer has assigned the appropriate classification code (SAMM C7.16.1).
The second category is medical. "Transportation of controlled substances, such as morphine and other drugs, must be handled in accordance with the Controlled Substances Import and Export Act (21 U.S.C. 951 et seq)" (SAMM C7.18.1). The implementing agency obtains import authorization from the buyer first, applies for an export permit, and passes the permit number, expiry date and port of export to the logistics agency. A field hospital package can therefore be held up by a drug permit rather than by anything on the munitions list.
| TDR | Transportation discrepancy report, filed by the American office in country, never by the buyer. SAMM C7.21. |
|---|---|
| Tracer | The search action the buyer must start when a dispatched shipment does not arrive. |
| EX-Number | The authorization required to move any article containing Hazard Class 1 explosives commercially. |
| SRC | Security risk category, which decides whether a return must go through a government port. |
| Constructive proof of delivery | The evidence a shipping activity produces when a consignment is disputed. |
Every statement above links to the document behind it. The full source list for this piece is on the sources page.
This page describes public United States government programs for general information. It is not legal, regulatory or procurement advice, and it does not address the facts of any particular case.
Recovering from a loss depends on paperwork created at the moment of receipt. Sentfore supports defense programs at the delivery end, providing secure transport, protective security, accommodation and site support in complex environments. Requirements can be sent through the contact page.