MUTUAL LOGISTICS
SUPPORT AGREEMENT
(MLSA)
MUTUAL LOGISTICS SUPPORT
AGREEMENT (RP-US-01) BETWEEN THE DEPARTMENT OF DEFENSE OF THE UNITED
STATES OF AMERICA AND THE DEPARTMENT OF NATIONAL DEFENSE OF THE REPUBLIC
OF THE PHILIPPINES
PREAMBLE
The Department of Defense of
the United States of America and the Department of National Defense of the
Republic of the Philippines, hereinafter referred to as the Parties,
desiring to further the interoperability, readiness, and effectiveness of
their respective military forces through increased logistic cooperation in
accordance with the RP-US Mutual Defense Treaty, RP-US Visiting Forces
Agreement or the RP-US Military Assistance Agreement, have resolved to
conclude this Mutual Logistics Support Agreement, hereinafter referred to
as the Agreement.
I. PURPOSE
This Agreement is entered
into for the purpose of establishing basic terms, conditions, and
procedures to facilitate the reciprocal provision of logistic support,
supplies, and services as said terms are defined in Article IV of this
Agreement.
II. APPLICABLE TREATIES AND LAWS
This Agreement and any
Implementing Arrangements executed hereunder shall be implemented, applied
and interpreted by the Parties in accordance with the provisions of the
Mutual Defense Treaty, the Visiting Forces Agreement or the Military
Assistance Agreement and their respective constitutions, national laws and
regulations.
III. APPLICABILITY
1. This Agreement is
designed to enable reciprocal logistic support between the Parties whereby
one Party may request logistics support, supplies and services which the
other may provide for the duration of an approved activity, as follows:
a. During combined
exercises and training, operations and other deployments undertaken
under the Mutual Defense Treaty, the Visiting Forces Agreement or the
Military Assistance Agreement as agreed upon between the Parties.
b. During other
cooperative efforts, such as humanitarian assistance, disaster relief
and rescue operations, and maritime anti-pollution operations, within
Philippine territory, or outside Philippine territory in cases where
either Party, or both, have decided to participate.
2. This Agreement applies to
the reciprocal provision of logistic support, supplies, and services
between the military forces of one Party by the other Party in return for
either cash payment or the reciprocal provision of logistic support,
supplies, and services to the military forces of the other Party.
3. All obligations of the
Parties under this Agreement and any implementing Arrangements are subject
to the availability of appropriations for such purposes.
4. The following items are
not eligible for transfer under this Agreement and are specifically
excluded from its coverage:
a. weapon systems
b. major end items of
equipment (except for the lease or loan of general purpose vehicles and
other nonlethal items of military equipment which are not designated as
significant military equipment on the U.S. Munitions List); and
c. initial quantities of
replacement and spare parts associated with the initial quantity of
major items of organizational equipment covered in tables of allowances
and distribution, tables of organization and equipment, and equivalents
documents.
5. Also excluded from
transfer by either Party under this Agreement are any items the transfer
of which is prohibited by its laws or regulations. The following items are
currently excluded from transfer by the United States laws and
regulations:
a. guided missiles
b. naval mines and
torpedoes
c. nuclear ammunition and
included items such as warhead, warhead sections, projectiles,
demolition munitions, and training ammunition
d. cartridge and air crew
escape propulsion system (AEPS) components
e. chaff and chaff
dispensers
f. guidance kits for bombs
or other ammunition
g. chemical ammunition
(other than riot-control agents); or
h. source, by-product or
special nuclear materials, or any other material, article, data or thing
of value the transfer of which is subject to the Atomic Energy Act of
1954 (Title 42, United States Code, Section 2011, et.seq.).
IV. DEFINITIONS
1. As used in this Agreement
and in any Implementing Arrangement, which provide specific procedures,
the following definitions apply:
a. Logistic supplies,
support, and services which may be provided as approved by the Parties
under this Agreement are defined and subject to the following:
(1) Supplies - Food,
water, petroleum, oils, lubricants, clothing, ammunition, spare parts
and components, provided during an approved activity.
(2) Support and Services
- Billeting, transportation (including airlift), communication
services, medical services, operation support (and construction and
use of temporary structures incident to operations support), training
services, repair and maintenance services, calibration services,
storage services, and port services during an approved activity.
Storage units and ports shall at all times remain under the control
and supervision of the host state.
(3) Logistic supplies,
support, and services include the temporary use of general purpose
vehicles and other nonlethal items of military equipment which are not
designated as significant military equipment on the U.S. Munitions
List, during an approved activity. No United States military
base, facility, or permanent structure shall be constructed,
established, or allowed under this Agreement.
b. Implementing
Arrangement. A written supplementary agreement which contains additional
details, terms and conditions related to a specific acquisition and/or
transfer of logistic support, supplies and services.
c. Order. A written
request in an agreed format and signed by a Point of Contact (POC), for
the provision of specific logistic support, supplies, and services
pursuant to this Agreement and any applicable Implementing Arrangement.
d. Invoice. A document
from the Supplying Party which requests reimbursement or payment for
specific logistic support, supplies, and services rendered pursuant to
this Agreement and any applicable Implementing Arrangement.
e. Transfer. Selling
(whether for payment currency, replacement-in-kind, or exchange of
supplies or services of equal value), loaning, or otherwise temporarily
providing logistic support, supplies, and services under the terms of
this Agreement and any applicable Implementing Arrangement.
f. Replacement-in-kind (RIK).
Payment for a transfer conducted under this Agreement in which it is
agreed that the Receiving Party will replace logistic support, supplies,
and services that it receives with logistic support, supplies, and
services of an identical, or substantially identical, nature under
agreed conditions.
g. Equal Value Exchange. A
transfer conducted under this Agreement in which it is agreed that the
Receiving Party will replace logistic support, supplies and services
that it receives with logistic support, supplies and services of an
equal monetary value.
h. United States Munitions
List. U.S. Defense articles and defense services which are designated by
the U.S. President under the Arms Export Control Act as subject to
export controls. The U.S. Munitions List is published in Part 121 of
Title 22 of the U.S. Code of Federal Regulations.
i. Receiving Party. The
Party ordering and receiving support.
j. Supplying Party. The
Party providing support.
k. Point of Contact (POC).
Authorized offices, agencies, and/or individuals for coordinated
placement and acceptance of orders, as well as receipt and collection of
payments.
V. TERMS AND CONDITIONS
1. Each party shall exert
its best efforts, consistent with national priorities, to satisfy requests
from the other Party under this Agreement for logistic support, supplies,
and services. When an Implementing Arrangement contains a stricter
standard for satisfying such requests, it shall apply over this paragraph.
2. Orders may be placed or
accepted only by the Points of Contact (POCs), or designees, identified by
the Parties in Annexes B through M of this Agreement. When military forces
of the Republic of the Philippines require logistic support, supplies, or
services outside the USPACOM Area of Responsibility (AOR), they may place
orders directly with the cognizant POC or may seek the assistance of HQ
USPACOM, or a USPACOM Component Command, to place an order with a non-USPACOM
POC.
3. An Implementing
Arrangement under this Agreement may be negotiated on behalf of the U.S.
Department of Defense by Headquarters, U.S. Pacific Command (USPACOM), the
Headquarters of other United States Unified Commands, or their designated
subordinate commands. Implementing Arrangements maybe negotiated on
behalf of the Department of National Defense, Republic of the Philippines
by General Headquarters, Armed Forces of the Philippines or its individual
major service headquarters and subject to the approval of appropriate
Philippine authority. Implementing Arrangements must identify POCs and
their specific authorizations or limitations.
4. Prior to submitting a
written order, the Ordering Party should initially contact the Supplying
Party's POC by telephone, fax, or e-mail to ascertain availability, price,
and desired method of repayment for required material or services. Orders
must include all the data elements in Annex A, as well as any other terms
and details necessary to carry out the transfer. Instructions and a
standard order form are attached at Annex N. The number of this Agreement,
RP-US-01, should be annotated on all orders and related correspondence.
5. The Receiving Party is
responsible for:
a. Arranging pickup and
transportation of supplies acquired under this Agreement. This does not
preclude the Supplying Party from assisting with loading supplies
acquired under this Agreement onto the transportation conveyance. The
Supplying Party will notify the Receiving Party when and where supplies
are available to be picked up.
b. Obtaining the
applicable customs clearance and arranging other official actions
required by national customs and regulations.
6. The individual picking up
the supplies or receiving the services on behalf of the Receiving Party
will sign the standard order form (Annex N) in the appropriate block as
evidence of receipt. If the standard order form is not available at the
Supplying Party's point of issue, the individual collecting the supplies
will sign the receipt document provided by the Supplying Party as a
substitute. The number of this Agreement, RP-US-01, will be entered on the
receipt document. The Supplying Party will forward the signed receipt
document to the activity authorized to accept Orders under this Agreement
where the signed receipt document will be attached to the original order
form by the Receiving Party.
7. Logistics support,
supplies, and services received through this Agreement will not be
retransferred, either temporarily or permanently, to any person other than
a member of the forces of the Receiving Party without the prior written
consent of the Supplying Party.
VI. REIMBURSEMENT
1. For transfers of logistic
support, supplies, and services under this Agreement, the Parties shall
agree for payment either by cash ("reimbursable transaction"), by
replacement-in-kind, or by an equal-value exchange ("exchange
transaction"). The Receiving Party shall pay the Supplying Party as
provided in either paragraph 1a , or paragraph 1b of this Article, as
agreed.
a. Reimbursable
Transaction. The Supplying Party shall submit invoices to the Receiving
Party after delivery or performance of the logistic support, supplies,
and services. Both parties shall provide for the payment of all
transactions and each Party shall bill the other Party no less
frequently than every 3 months. Invoices shall be accompanied by
necessary support documentation and will be paid within 60 days of the
date prepared. In pricing a reimbursable transaction, the Parties agree
to the following reciprocal fixing principles:
(1) In the case of
specific acquisition by the Supplying Party from its contractors on
behalf of a Receiving Party, the price shall be no less favorable than
the price charged the armed forces by the contractor of the Supplying
Party for identical items or services, less any amounts excluded by
Article VII of this Agreement. The price charged may take into account
differentials due to delivery schedules, points of delivery, and other
similar considerations.
(2) In the case of
transfer from the Supplying Party's own resources, the Supplying Party
shall charge the same price its charges its own forces for identical
logistic support, supplies, and services, as of the date delivery or
performance occurs, less amounts excluded by Article VII of this
Agreement. In any case where a price has not been established or
charges are not made for one's own forces, the Parties shall agree on
a price in advance, excluding charges that are precluded under these
reciprocal pricing principles. However, in the case of items, the
price will be no less than the Supplying Party's acquisition cost.
b. Exchange Transaction.
Exchange transactions may be by replacement-in-kind or
equal-value-exchange. Both parties shall maintain records of all
transactions. The Receiving Party shall pay by transferring to the
Supplying Party logistic support, supplies, and services that are agreed
between the Parties to be in kind or of equal monetary value to the
logistic support, supplies, and services delivered or performed by the
Supplying Party. If the Receiving Party does not complete the exchange
within the terms of a replacement schedule agreed to or in effect at the
time of the original transaction, which may not exceed one (1)
year from the date of the original transaction, the transaction shall be
deemed reimbursable and governed by paragraph 1a above, except that the
price shall be established using actual or estimated prices in effect on
the date payment would otherwise have been due.
c. Establishment of Price
or Value. The following reciprocal pricing principles shall apply: The
price established for inventory stock materiel will be the Supplying
Party's stock list price. The price for new procurement will be the same
price paid to the contractor or vendor by the Supplying Party. The price
for in-shop repair or technical assistance services rendered will be
based on the Supplying Party's standard price or, if not applicable, a
price equal to only the direct costs associated with providing the
services, for example, supply stock list prices and actual labor
charges. The price for services rendered in a temporary duty status will
be based on the individual's actual per diem and transportation costs,
plus payroll costs for civilian labor. Prices charged will exclude all
taxes and duties which the Receiving Party is exempted from paying under
other agreements which the Parties have concluded. Upon request, the
Parties agree to provide information sufficient to verify that these
reciprocal pricing principles have been followed and that prices do not
include waived or excluded costs.
d. Means of Payment. The
following means of payment shall be acceptable.
(1) Payment-in-cash.
Payment will be made in the currency of the Supplying Party or as
otherwise agreed in the order.
(2) Replacement-in-kind.
When replacement-in-kind is used as the method of payment, the
Receiving Party will replace or return supplies in the same condition
and conforming to the same configuration as the supplies provided by
the Supplying Party or, if so agreed, a later configuration within one
year of receipt. The Receiving Party is responsible for negotiating
return transportation and delivery to the location designated by the
Supplying Party at the time of request. If the Receiving Party does
not replace or return supplies within one (1) year, payment must be in
cash.
(3) Equal-Value
exchange. To the extent possible, when equal-value-exchange is the
desired method of payment, prior to the provision of the requested
support, both Parties will agree on the goods and services that will
be accepted for payment and their value. If the Receiving Party does
not provide the agreed goods or services to the Supplying Party within
one (1) year of the original transaction, the method of payment will
convert to payment in cash.
2. When a definitive price
for the order is not agreed in advance, the order, pending agreement on
final price, shall set forth a maximum liability for the Party ordering
the logistic support, supplies, and services. The Parties shall then
promptly enter into negotiation to establish the final price.
3. The POCs for payments and
collections for each Party are identified in the annexes to this
Agreement.
4. The cost of logistic
support, supplies, and services that are available for a lower price under
any other RP-US Agreement will be used under this Agreement.
VII. DOCUMENTATION FOR CUSTOMS DUTIES AND TAXES
1. The provision of any tax
and customs relief agreements applicable to the acquisition of materials,
services, supplies and equipment by the Receiving Party shall apply to
logistic support, supplies, and services transferred under this Agreement.
The Parties shall cooperate to provide proper documentation to maximize
tax and customs relief. The Supplying Party shall inform the Receiving
Party whether the price charged for logistic support, supplies, or
services include taxes or customs duties which the Supplying Party cannot
recover. The price paid by the Receiving Party shall not include taxes or
customs duties that can be recovered by the Supplying Party.
2. Nothing in this Agreement
shall be interpreted as a grant of exemption from customs duties and
taxes, except those granted under applicable customs and tax relief
agreements or applicable laws of the Respective Parties.
VIII. INTERPRETATION, AMENDMENTS, AND SECURITY OF
INFORMATION
1. Any disagreements
regarding the interpretation or application of this Agreement, any
Implementing Arrangements, or transactions executed hereunder shall be
resolved through direct consultation between the Parties or through
diplomatic channels and shall not be referred to any international
tribunal or third party for settlement.
2. Either Party may, at any
time, request amendment of this Agreement by giving the other Party ninety
(90) days advance written notice. In the event such a request is made, the
two parties shall promptly enter into negotiations. This Agreement may
only be amended by written agreement between the two Parties. Any such
amendment shall enter into force in accordance with Article IX of this
Agreement. The replacement of POCs as listed under Annexes B through M,
may be done by the Parties without formal amendment of this Agreement.
3. It is the intent of the
Parties that activities under this Agreement and any Implementing
Arrangements be carried out at the unclassified level. Unless specifically
authorized by separate agreement or arrangement, no classified information
shall be provided or generated under this Agreement or any Implementing
Arrangements.
IX. EFFECTIVE DATE AND TERMINATION
1. This Agreement, of which
Annexes A-N form an integral part, shall be applied provisionally upon
signature and shall enter into force on the date of the later written
notification by the Government of the Parties through diplomatic channels
indicating completion of their respective internal requirements for its
entry into force.
2. This Agreement shall
remain in force for a period of five (5) years. It shall be subject to
review by the Parties at least one (1) year before termination, to
consider the possibility of extending it under mutually acceptable terms.
3. Notwithstanding this, the
Parties may, at any time, terminate this Agreement by means of a written
notice to the other Party, through diplomatic channels. Termination shall
take effect three (3) months following the date of notification.
4. Notwithstanding
termination of this Agreement, all reimbursement obligations incurred
pursuant to its terms shall remain binding on the responsible Party until
satisfied.
IN WITNESS WHEREOF, the undersigned, being duly authorized
by their respective governments, have signed this Agreement.
DONE at Camp General Emilio Aguinaldo, Quezon City,
Philippines on November 21, 2002, in duplicate, in the English language,
both texts being equally authentic.
FOR THE DEPARTMENT OF DEFENSE OF THE UNITED STATES OF
AMERICA
____________________________
MATHIAS R. VELASCO
Colonel, US Army
CDRPACOM Representative, Philippines
FOR THE DEPARTMENT OF NATIONAL DEFENSE OF THE REPUBLIC OF
THE PHILIPPINES
Chief of Staff, AFP
By: _________________________
ERNESTO H. DE LEON
Commodore, Armed Forces of the Philippines
Deputy Chief of Staff for Plans, J5
(end)
