Do we require any special authorization to use the shipping company in the host country?
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Several items pertain to this question (in no particular order).
1. Scope of contract: The vendor needs to validate that the scope of any applicable LOA(s) flows into the scope of the contract. The vendor is not a party to the LOA(s). The vendor's actions are governed by the scope of the contract. The vendor should get official contractual guidance from the applicable contracting officer.
2. Third Party Transfer (TPT): SAMM C8.7.2 (https://www.samm.dsca.mil/chapter/chapter-8) provides the policy regarding TPTs. The SAMM states "foreign governments may not transfer title to or possession of any defense articles or services to anyone not an officer, employee, or agent (defined as freight forwarder only) of that country or of the USG until the country receives prior written consent from the USG." SAMM C7.5 outlines the specific requirements for a private company to be recognized by the USG as the partner nation's freight forwarding agent.
3. Disposal: SAMM C8.8.1 states "Disposal also constitutes a change in end-use for which prior consent from DoS is required for non-consumable items."
4. Demilitarization: SAMM C8.8.2 states "EUM of demilitarization is a key aspect of disposal due to the potential for unauthorized disclosure of classified or sensitive information, safety concerns, and other factors. During disposal, items often move from operating units to holding areas, where personnel may not be aware of classified features, potential lethality, or other sensitivities. SCOs are responsible for maintaining personnel trained in demilitarization procedures (by completing the Demilitarization Certifier/Verifier Course), and must ensure that DoD demilitarization procedures are followed by the partner nations unless DoS has specifically authorized or required some other disposition. SCOs will witness the demilitarization and disposal of all EEUM-designated and classified defense articles, and will witness or otherwise verify through partner nation reports or other legitimate documentation the demilitarization and disposal of all other defense articles."
5. SCO Involvement: SAMM C8.8.4 states "At the time the partner nation requests DoS consent to dispose defense articles, the SCO should begin working with partner nation counterparts to develop a demilitarization plan to ensure compliance with DoD demilitarization requirements. The SCO determines the appropriate demilitarization coding assignment in the DoD Manual 4160.28-M Vol 2, "Defense Demilitarization Coding" Volume 2 or by obtaining the National Stock Number (NSN) from the LOA, 1000 Report or partner nation equipment manual; and accessing (WebFLIS or the Pub Log) at: http://www.dla.mil, to determine the assigned demilitarization code. If the item needs to be demilitarized, the proper procedures are described in DoD Manual 4160.28-M Vol 3,"Defense Demilitarization Procedural Guidance" Volume 3 or by contacting the appropriate MILDEP demilitarization program administrator.
6. In view of the above information, the following actions are suggested:
a. Partner nation should contact the Security Cooperation Office (SCO) in-country to inform of the intent to change end use and dispose of articles within country by turn over to DLA.
b. Partner nation should obtain TPT authorization from the Dept of State as outlined in SAMM C126.96.36.199.
c. The DLA depot in-country should be contacted and have input into the disposal planning process to include the transportation portion. The DLA depot may already have approved carriers that could appropriately transport (and account for) the defense articles.
Bottom Line Answer: Yes, several types of actions and authorizations are required before defense articles could be TPT transferred to a local in-country shipping company.