item inside the container and must remain with the item until it is through processing. DISPOSITION OF MTIS.— After screening and identification processes have determined that the material is in any one of the four categories listed above, the material and documents are distributed as described in the following paragraphs. Material for transfer to DRMO fall into one of three categories. They are items that need inventory manager disposal authority, items that do not need disposal authority, or scrap and waste. Material determined to be in the category for transfer to DRMO is forwarded to the disposal or shipping section for further action or delivered directly to DRMO. The document used for transferring material to DRMO must contain a Disposal Authority Code. Disposal authority code M is assigned for transfers authorized by the item manager. Code N is assigned for material that is not reportable by virtue of an exclusion to the MRP of NAVSUP P-437 or other specific criteria such as extended dollar value or condition limitations on excess reporting and are duly authorized to be transferred to DRMO. Code N is assigned for material that has been reported to inventory manager/inventory control point according to the Material Returns Program described in NAVSUP P-437 and are excess to authorized retention levels. Code N is used when disposal/action complies with Service/Agency Instructions. The items transferred to DRMO must be accompanied by a minimum of three copies of DD Form 1348-1. Personnel accepting the material should receipt for the items and forward one copy of the signed receipt document to the transferring activity or the bearer. When DRMO acknowledges receipt of material, the shipping activity should prepare and submit a shipping status (DI AS3), with distribution code 9 in record position 54, to the Defense Reutilization and Marketing Service (DRMS). Refer to Appendix B of NAVSUP P-437 for the format in preparing document identifier AS3. Material for stock storage. Material determined to be in the category for storage is forwarded to the appropriate storage location with a minimum of two copies of the DD Form 1348-1. PROCESSING REPAIRABLE MATERIAL.— Each shore activity supporting fleet units or dependent activities should establish a specific location for turning in repairable MTIS items. The shore activity should furnish additional packaging when the need is indicated on the DD Form 1348-1, or when the condition of the containers shows an obvious lack of protection and additional packaging is required. When additional packaging is not requited, material turned in for transshipment should be forwarded directly to the transportation section for processing. MTR items take precedence over all other MTIS, provided they are properly identified, Critical items turned in on a priority 03 (transportation priority 1), and may be identified as RED STRIPE, must be processed immediately upon receipt. Items of short supply turned-in on priority 06, and maybe identified as BLUE STRIPE, must be processed immediately as resources permit. If transshipment is required, premium transportation, including air shipment, is authorized for RED STRIPE and BLUE STRIPE material. process material shipments according to Military Standard Transportation and Movement Procedures, DOD 4500.32-R. Screening by consignee activity to verify accuracy of identification or consignment of documented turn-ins should be performed selectively as required according to NAVSUPINST 4419.2. Screening to verify adequacy of packaging should be limited to a visual inspection to determine if the DD Form 1348-1 indicates a need for additional packaging (block GG marked Packaging Required) or if the condition of the material or container indicates an obvious need for additional packaging. MTR material received without documentation or with inadequate documentation should be forwarded to the screening section for further processing. Discrepancies noted should be reported according to NAVSUPINST 4440.179 or NAVSUPINST 4610.33. MATERIAL RECEIPT AFLOAT The material receipt process afloat involves the identification, storage, issue, and recording of all material previously requisitioned or purchased and received by the activity. As an integral part of the supply receipt process, all material received must be properly identified, stored (if the material is for stock), issued (if the material is for DTO), and recorded in the stock records through SUADPS-RTin a timely fashion. The receiving process is apart of the supply support operation cycle. Receipt processing interfaces with other supply functions such as procurement, expenditure, and inventory management. The 3-11