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TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE
CHAPTER 39—ARMS EXPORT CONTROL
Please Note: This compilation of the US Code, current as of Jan. 4, 2012 , has been prepared by
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TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE
1
CHAPTER 39 - ARMS EXPORT CONTROL
3
SUBCHAPTER I - FOREIGN AND NATIONAL SECURITY POLICY OBJECTIVES AND
RESTRAINTS
5
§ 2751. Need for international defense cooperation and military export controls;
Presidential waiver; report to Congress; arms sales policy
§ 2752. Coordination with foreign policy
§ 2753. Eligibility for defense services or defense articles
§ 2754. Purposes for which military sales or leases by the United States are authorized;
report to Congress
§ 2755. Discrimination prohibited if based on race, religion, national origin, or sex
§ 2756. Foreign intimidation and harassment of individuals in United States
SUBCHAPTER II - FOREIGN MILITARY SALES AUTHORIZATIONS
§ 2761. Sales from stocks
§ 2762. Procurement for cash sales
§ 2763. Credit sales
§ 2764. Guaranties
§ 2765. Annual estimate and justification for sales program
§ 2766. Security assistance surveys
§ 2767. Authority of President to enter into cooperative projects with friendly foreign
countries
§ 2767a. Repealed. Pub. L. 101–189, div. A, title IX, § 931(d)(2), Nov. 29, 1989, 103
Stat. 1535
§ 2768. Repealed. Pub. L. 104–106, div. A, title X, § 1064(a), Feb. 10, 1996, 110 Stat.
445
SUBCHAPTER II-A - FOREIGN MILITARY CONSTRUCTION SALES
§ 2769. Foreign military construction sales
5
21
22
31
32
34
35
35
43
45
48
51
55
56
61
61
62
62
SUBCHAPTER II-B - SALES TO UNITED STATES COMPANIES FOR
INCORPORATION INTO END ITEMS
§ 2770. General authority
63
63
SUBCHAPTER II-C - EXCHANGE OF TRAINING AND RELATED SUPPORT
§ 2770a. Exchange of training and related support
65
65
SUBCHAPTER III - MILITARY EXPORT CONTROLS
§ 2771. Military sales authorizations and ceilings
§ 2772. Repealed. Pub. L. 102–429, title I, § 112(e), Oct. 21, 1992, 106 Stat. 2195
§ 2773. Restraint in arms sales to Sub-Saharan Africa
§ 2774. Foreign military sales credit standards
§ 2775. Foreign military sales to less developed countries
§ 2776. Reports and certifications to Congress on military exports
§ 2776a. Repealed. Pub. L. 112–81, div. A, title X, § 1062(d)(4), Dec. 31, 2011, 125
Stat. 1585
§ 2777. Fiscal provisions relating to foreign military sales credits
§ 2778. Control of arms exports and imports
§ 2778a. Exportation of uranium depleted in the isotope 235
§ 2779. Fees of military sales agents
§ 2779a. Prohibition on incentive payments
§ 2780. Transactions with countries supporting acts of international terrorism
§ 2781. Transactions with countries not fully cooperating with United States
antiterrorism efforts
- ii -
66
66
69
69
70
70
71
85
85
86
113
114
115
117
122
SUBCHAPTER III-A - END-USE MONITORING OF DEFENSE ARTICLES AND
DEFENSE SERVICES
§ 2785. End-use monitoring of defense articles and defense services
SUBCHAPTER IV - GENERAL, ADMINISTRATIVE, AND MISCELLANEOUS
PROVISIONS
§ 2791. General provisions
§ 2792. Administrative expenses
§ 2793. Other provisions unaffected
§ 2794. Definitions
124
124
126
126
128
129
130
SUBCHAPTER V - SPECIAL DEFENSE ACQUISITION FUND
§ 2795. Fund
§ 2795a. Use and transfer of items procured by Fund
§ 2795b. Repealed. Pub. L. 104–164, title I, § 145(a), July 21, 1996, 110 Stat. 1434
SUBCHAPTER VI - LEASES OF DEFENSE ARTICLES AND LOAN AUTHORITY FOR
COOPERATIVE RESEARCH AND DEVELOPMENT PURPOSES
§ 2796. Leasing authority
§ 2796a. Reports to Congress
§ 2796b. Legislative review procedures
§ 2796c. Applicability of other statutory provisions
§ 2796d. Loan of materials, supplies, and equipment for research and development
purposes
SUBCHAPTER VII - CONTROL OF MISSILES AND MISSILE EQUIPMENT OR
TECHNOLOGY
§ 2797. Licensing
§ 2797a. Denial of transfer of missile equipment or technology by United States persons
§ 2797b. Transfers of missile equipment or technology by foreign persons
§ 2797b–1. Notification of admittance of MTCR adherents
§ 2797b–2. Authority relating to MTCR adherents
§ 2797c. Definitions
SUBCHAPTER VIII - CHEMICAL OR BIOLOGICAL WEAPONS PROLIFERATION
§ 2798. Sanctions against certain foreign persons
132
132
133
134
135
135
137
139
140
140
142
142
146
147
151
152
152
154
154
SUBCHAPTER IX - TRANSFER OF CERTAIN CFE TREATY-LIMITED EQUIPMENT TO
NATO MEMBERS
§ 2799. Purpose
§ 2799a. CFE Treaty obligations
§ 2799b. Authorities
§ 2799c. Notifications and reports to Congress
§ 2799d. Definitions
157
157
157
157
158
159
SUBCHAPTER X - NUCLEAR NONPROLIFERATION CONTROLS
§ 2799aa. Nuclear enrichment transfers
§ 2799aa–1. Nuclear reprocessing transfers, illegal exports for nuclear explosive
devices, transfers of nuclear explosive devices, and nuclear detonations
§ 2799aa–2. “Nuclear explosive device” defined
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160
160
161
168
TITLE 22 FOREIGN RELATIONS AND INTERCOURSE
NB: This unofficial compilation of the U.S. Code is current as of Jan. 4, 2012 (see http://www.law.cornell.edu/uscode/uscprint.html).
TITLE 22—FOREIGN RELATIONS AND INTERCOURSE
Chap. ...Sec.
1. Diplomatic and Consular Service Generally [Repealed, Transferred, or Omitted] ...1
2. Consular Courts [Repealed or Omitted] ...141
3. United States Court for China [Repealed or Omitted] ...191
4. Passports ...211
5. Preservation of Friendly Foreign Relations Generally [Repealed or Transferred] ...231
6. Foreign Diplomatic and Consular Officers ...251
7. International Bureaus, Congresses, etc. ...261
8. Foreign Service Buildings ...291
9. Foreign Wars, War Materials, and Neutrality ...401
10. Hemispheral Relations ...501
11. Foreign Agents and Propaganda ...601
12. Claims Commissions [Omitted] ...661
13. Service Courts of Friendly Foreign Forces ...701
14. Foreign Service [Repealed or Transferred] ...801
14A. Foreign Service Information Officers Corps [Repealed] ...1221
15. The Republic of the Philippines ...1251
16. Greek and Turkish Assistance [Repealed] ...1401
17. Relief Aid to War-Devastated Countries [Repealed] ...1411
18. United States Information and Educational Exchange Programs ...1431
19. Foreign Assistance Program [Repealed] ...1501
20. Mutual Defense Assistance Program [Repealed or Omitted] ...1571
20A. Mutual Defense Assistance Control Program [Omitted] ...1611
21. Settlement of International Claims ...1621
21A. Settlement of Investment Disputes ...1650
22. Mutual Security Assistance [Repealed] ...1651
23. Protection of Citizens Abroad ...1731
24. Mutual Security Program ...1750
24A. Middle East Peace and Stability ...1961
25. Protection of Vessels on the High Seas and in Territorial Waters of Foreign Countries ...1971
26. Armed Forces Participation in International Amateur Sports Competitions [Repealed] ...1981
27. International Cultural Exchange and Trade Fair Participation [Repealed] ...1991
28. International Atomic Energy Agency Participation ...2021
29. Cultural, Technical, and Educational Centers ...2051
29A. Inter-American Cultural and Trade Center ...2081
30. International Cooperation in Health and Medical Research ...2101
31. International Travel ...2121
31A. National Tourism Organization [Omitted or Repealed] ...2141
32. Foreign Assistance ...2151
33. Mutual Educational and Cultural Exchange Program ...2451
34. The Peace Corps ...2501
35. Arms Control and Disarmament ...2551
36. Migration and Refugee Assistance ...2601
37. Foreign Gifts and Decorations ...2621
38. Department of State ...2651
39. Arms Export Control ...2751
40. International Expositions ...2801
41. Study Commission Relating to Foreign Policy [Omitted] ...2821
42. International Economic Policy [Omitted] ...2841
43. International Broadcasting [Repealed] ...2871
44. Japan-United States Friendship ...2901
45. Commission on Security and Cooperation in Europe ...3001
46. International Investment and Trade in Services Survey ...3101
46A. Foreign Direct Investment and International Financial Data ...3141
47. Nuclear Non-Proliferation ...3201
48. Taiwan Relations ...3301
49. Support of Peace Treaty Between Egypt and Israel ...3401
50. Institute for Scientific and Technological Cooperation ...3501
51. Panama Canal ...3601
52. Foreign Service ...3901
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TITLE 22 - CHAPTER 39 ARMS EXPORT CONTROL
NB: This unofficial compilation of the U.S. Code is current as of Jan. 4, 2012 (see http://www.law.cornell.edu/uscode/uscprint.html).
53. Authorities Relating to the Regulation of Foreign Missions ...4301
53A. Disposition of Personal Property Abroad ...4341
53B. Foreign Relations of the United States Historical Series ...4351
54. Private Organization Assistance ...4401
55. Research and Training for Eastern Europe and Independent States of Former Soviet Union ...4501
56. United States Institute of Peace ...4601
57. United States Scholarship Program for Developing Countries ...4701
58. Diplomatic Security ...4801
59. Fascell Fellowship Program ...4901
60. Anti-Apartheid Program [Repealed] ...5001
61. Anti-Terrorism—PLO ...5201
62. International Financial Policy ...5301
63. Support for East European Democracy (SEED) ...5401
64. United States Response to Terrorism Affecting Americans Abroad ...5501
65. Control and Elimination of Chemical and Biological Weapons ...5601
66. United States-Hong Kong Policy ...5701
67. Freedom for Russia and Emerging Eurasian Democracies and Open Markets Support ...5801
68. Demilitarization of Former Soviet Union ...5901
68A. Cooperative Threat Reduction With States of Former Soviet Union ...5951
69. Cuban Democracy ...6001
69A. Cuban Liberty and Democratic Solidarity (LIBERTAD) ...6021
70. Mansfield Fellowship Program ...6101
71. United States International Broadcasting ...6201
72. Nuclear Proliferation Prevention ...6301
73. International Religious Freedom ...6401
74. Foreign Affairs Agencies Consolidation ...6501
75. Chemical Weapons Convention Implementation ...6701
76. Assistance to Countries With Large Populations Having HIV/AIDS ...6801
77. United States-China Relations ...6901
78. Trafficking Victims Protection ...7101
79. Trade Sanctions Reform and Export Enhancement ...7201
80. Diplomatic Telecommunications Service Program Office (DTS-PO) ...7301
81. International Criminal Court ...7401
82. Afghanistan Freedom Support ...7501
83. United States Leadership Against HIV/AIDS, Tuberculosis, and Malaria ...7601
84. Millennium Challenge ...7701
85. North Korean Human Rights ...7801
86. Climate Change Technology Deployment in Developing Countries ...7901
87. United States and India Nuclear Cooperation ...8001
88. Nuclear Non-Proliferation Treaty—United States Additional Protocol Implementation ...8101
89. Advancing Democratic Values ...8201
90. Volunteers for Prosperity Program ...8301
91. Enhanced Partnership With Pakistan ...8401
92. Comprehensive Iran Sanctions, Accountability, and Divestment ...8501
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TITLE 22 - CHAPTER 39 ARMS EXPORT CONTROL
NB: This unofficial compilation of the U.S. Code is current as of Jan. 4, 2012 (see http://www.law.cornell.edu/uscode/uscprint.html).
CHAPTER 39—ARMS EXPORT CONTROL
SUBCHAPTER I—FOREIGN AND NATIONAL SECURITY POLICY OBJECTIVES AND RESTRAINTS
Sec.
2751. Need for international defense cooperation and military export controls; Presidential waiver; report to
Congress; arms sales policy.
2752. Coordination with foreign policy.
2753. Eligibility for defense services or defense articles.
2754. Purposes for which military sales or leases by the United States are authorized; report to Congress.
2755. Discrimination prohibited if based on race, religion, national origin, or sex.
2756. Foreign intimidation and harassment of individuals in United States.
SUBCHAPTER II—FOREIGN MILITARY SALES AUTHORIZATIONS
2761. Sales from stocks.
2762. Procurement for cash sales.
2763. Credit sales.
2764. Guaranties.
2765. Annual estimate and justification for sales program.
2766. Security assistance surveys.
2767. Authority of President to enter into cooperative projects with friendly foreign countries.
2767a, 2768. Repealed.
SUBCHAPTER II–A—FOREIGN MILITARY CONSTRUCTION SALES
2769. Foreign military construction sales.
SUBCHAPTER II–B—SALES TO UNITED STATES COMPANIES FOR INCORPORATION INTO END ITEMS
2770. General authority.
SUBCHAPTER II–C—EXCHANGE OF TRAINING AND RELATED SUPPORT
2770a. Exchange of training and related support.
SUBCHAPTER III—MILITARY EXPORT CONTROLS
2771. Military sales authorizations and ceilings.
2772. Repealed.
2773. Restraint in arms sales to Sub-Saharan Africa.
2774. Foreign military sales credit standards.
2775. Foreign military sales to less developed countries.
2776. Reports and certifications to Congress on military exports.
2776a. Repealed.
2777. Fiscal provisions relating to foreign military sales credits.
2778. Control of arms exports and imports.
2778a. Exportation of uranium depleted in the isotope 235.
2779. Fees of military sales agents.
2779a. Prohibition on incentive payments.
2780. Transactions with countries supporting acts of international terrorism.
2781. Transactions with countries not fully cooperating with United States antiterrorism efforts.
SUBCHAPTER III–A—END-USE MONITORING OF DEFENSE ARTICLES AND DEFENSE SERVICES
2785. End-use monitoring of defense articles and defense services.
SUBCHAPTER IV—GENERAL, ADMINISTRATIVE, AND MISCELLANEOUS PROVISIONS
2791. General provisions.
2792. Administrative expenses.
2793. Other provisions unaffected.
2794. Definitions.
SUBCHAPTER V—SPECIAL DEFENSE ACQUISITION FUND
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TITLE 22 - CHAPTER 39 - SUBCHAPTER I FOREIGN
AND NATIONAL SECURITY POLICY OBJECTIVES AN...
NB: This unofficial compilation of the U.S. Code is current as of Jan. 4, 2012 (see http://www.law.cornell.edu/uscode/uscprint.html).
2795. Fund.
2795a. Use and transfer of items procured by Fund.
2795b. Repealed.
SUBCHAPTER VI—LEASES OF DEFENSE ARTICLES AND LOAN AUTHORITY FOR COOPERATIVE
RESEARCH AND DEVELOPMENT PURPOSES
2796. Leasing authority.
2796a. Reports to Congress.
2796b. Legislative review procedures.
2796c. Applicability of other statutory provisions.
2796d. Loan of materials, supplies, and equipment for research and development purposes.
SUBCHAPTER VII—CONTROL OF MISSILES AND MISSILE EQUIPMENT OR TECHNOLOGY
2797. Licensing.
2797a. Denial of transfer of missile equipment or technology by United States persons.
2797b. Transfers of missile equipment or technology by foreign persons.
2797b–1. Notification of admittance of MTCR adherents.
2797b–2. Authority relating to MTCR adherents.
2797c. Definitions.
SUBCHAPTER VIII—CHEMICAL OR BIOLOGICAL WEAPONS PROLIFERATION
2798. Sanctions against certain foreign persons.
SUBCHAPTER IX—TRANSFER OF CERTAIN CFE TREATY-LIMITED EQUIPMENT TO NATO MEMBERS
2799. Purpose.
2799a. CFE Treaty obligations.
2799b. Authorities.
2799c. Notifications and reports to Congress.
2799d. Definitions.
SUBCHAPTER X—NUCLEAR NONPROLIFERATION CONTROLS
2799aa. Nuclear enrichment transfers.
2799aa–1. Nuclear reprocessing transfers, illegal exports for nuclear explosive devices, transfers of nuclear
explosive devices, and nuclear detonations.
2799aa–2. “Nuclear explosive device” defined.
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TITLE 22 - Section 2751 - Need for international defense cooperation and military expor...
NB: This unofficial compilation of the U.S. Code is current as of Jan. 4, 2012 (see http://www.law.cornell.edu/uscode/uscprint.html).
SUBCHAPTER I—FOREIGN AND NATIONAL SECURITY POLICY OBJECTIVES
AND RESTRAINTS
.....................................
§ 2751. Need for international defense cooperation and military export controls; Presidential
waiver; report to Congress; arms sales policy
As declared by the Congress in the Arms Control and Disarmament Act [22 U.S.C. 2551 et seq.],
an ultimate goal of the United States continues to be a world which is free from the scourge of war
and the dangers and burdens of armaments; in which the use of force has been subordinated to the
rule of law; and in which international adjustments to a changing world are achieved peacefully.
In furtherance of that goal, it remains the policy of the United States to encourage regional arms
control and disarmament agreements and to discourage arms races.
The Congress recognizes, however, that the United States and other free and independent countries
continue to have valid requirements for effective and mutually beneficial defense relationships
in order to maintain and foster the environment of international peace and security essential
to social, economic, and political progress. Because of the growing cost and complexity of
defense equipment, it is increasingly difficult and uneconomic for any country, particularly a
developing country, to fill all of its legitimate defense requirements from its own design and
production base. The need for international defense cooperation among the United States and those
friendly countries to which it is allied by mutual defense treaties is especially important, since the
effectiveness of their armed forces to act in concert to deter or defeat aggression is directly related
to the operational compatibility of their defense equipment.
Accordingly, it remains the policy of the United States to facilitate the common defense by entering
into international arrangements with friendly countries which further the objective of applying
agreed resources of each country to programs and projects of cooperative exchange of data,
research, development, production, procurement, and logistics support to achieve specific national
defense requirements and objectives of mutual concern. To this end, this chapter authorizes sales
by the United States Government to friendly countries having sufficient wealth to maintain and
equip their own military forces at adequate strength, or to assume progressively larger shares of
the costs thereof, without undue burden to their economies, in accordance with the restraints and
control measures specified herein and in furtherance of the security objectives of the United States
and of the purposes and principles of the United Nations Charter.
It is the sense of the Congress that all such sales be approved only when they are consistent with
the foreign policy interests of the United States, the purposes of the foreign assistance program
of the United States as embodied in the Foreign Assistance Act of 1961, as amended [22 U.S.C.
2151 et seq.], the extent and character of the military requirement, and the economic and financial
capability of the recipient country, with particular regard being given, where appropriate, to proper
balance among such sales, grant military assistance, and economic assistance as well as to the
impact of the sales on programs of social and economic development and on existing or incipient
arms races.
It shall be the policy of the United States to exert leadership in the world community to bring
about arrangements for reducing the international trade in implements of war and to lessen the
danger of outbreak of regional conflict and the burdens of armaments. United States programs
for or procedures governing the export, sale, and grant of defense articles and defense services
to foreign countries and international organizations shall be administered in a manner which will
carry out this policy.
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TITLE 22 - Section 2751 - Need for international defense cooperation and military expor...
NB: This unofficial compilation of the U.S. Code is current as of Jan. 4, 2012 (see http://www.law.cornell.edu/uscode/uscprint.html).
It is the sense of the Congress that the President should seek to initiate multilateral discussions for
the purpose of reaching agreements among the principal arms suppliers and arms purchasers and
other countries with respect to the control of the international trade in armaments. It is further the
sense of Congress that the President should work actively with all nations to check and control
the international sale and distribution of conventional weapons of death and destruction and to
encourage regional arms control arrangements. In furtherance of this policy, the President should
undertake a concerted effort to convene an international conference of major arms-supplying and
arms-purchasing nations which shall consider measures to limit conventional arms transfers in the
interest of international peace and stability.
It is the sense of the Congress that the aggregate value of defense articles and defense services—
(1) which are sold under section 2761 or section 2762 of this title; or
(2) which are licensed or approved for export under section 2778 of this title to, for the use, or for
benefit of the armed forces, police, intelligence, or other internal security forces of a foreign country
or international organization under a commercial sales contract;
in any fiscal year should not exceed current levels.
It is the sense of the Congress that the President maintain adherence to a policy of restraint in
conventional arms transfers and that, in implementing this policy worldwide, a balanced approach
should be taken and full regard given to the security interests of the United States in all regions of the
world and that particular attention should be paid to controlling the flow of conventional arms to the
nations of the developing world. To this end, the President is encouraged to continue discussions with
other arms suppliers in order to restrain the flow of conventional arms to less developed countries.
(Pub. L. 90–629, ch. 1, § 1, Oct. 22, 1968, 82 Stat. 1321; Pub. L. 91–672, § 4, Jan. 12, 1971, 84 Stat.
2053; Pub. L. 93–189, § 25(1), Dec. 17, 1973, 87 Stat. 729; Pub. L. 94–329, title II, § 202, formerly §
202(a), June 30, 1976, 90 Stat. 734, renumbered and amended Pub. L. 95–384, §§ 15(a), 29 (c)(1)(A),
Sept. 26, 1978, 92 Stat. 739, 747; Pub. L. 97–113, title VII, § 734(a)(10), Dec. 29, 1981, 95 Stat. 1560.)
References in Text
The Arms Control and Disarmament Act, referred to in text, is Pub. L. 87–297, Sept. 26, 1961, 75 Stat. 631, as amended,
which is classified generally to chapter 35 (§ 2551 et seq.) of this title. For complete classification of this Act to the
Code, see Short Title note set out under section 2551 of this title, and Tables.
This chapter, referred to in text, was in the original “this Act”, meaning Pub. L. 90–629, Oct. 22, 1968, 82 Stat. 1321,
which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note
below and Tables.
The Foreign Assistance Act of 1961, as amended, referred to in text, is Pub. L. 87–195, Sept. 4, 1961, 75 Stat. 424, as
amended, which is classified principally to chapter 32 (§ 2151 et seq.) of this title. For complete classification of this
Act to the Code, see Short Title note set out under section 2151 of this title and Tables.
References to Foreign Military Sales Act Deemed Reference to Arms Export
Control Act
Section 201(b) of Pub. L. 94–329 provided that: “Any reference to the Foreign Military Sales Act [see Short Title note
below] shall be deemed to be a reference to the Arms Export Control Act.”
References to Present Instead of Past Provisions; Specific Application of Other
Provisions to This Chapter
Section 45(c) of Pub. L. 90–629 provided that: “References in law to the provisions of law repealed by subsection (a)
of this section [repealing sections 2341 to 2343, 2344 (b)(3), 2345, 2394 (g), and 2399a of this title] shall hereafter
[on and after Oct. 22, 1968] be deemed to be references to this Act [this chapter] or appropriate provisions of this
Act. Except for the laws specified in section 44 [section 2793 of this title], no other provision of law shall be deemed
to apply to this Act unless it refers specifically to this Act or refers generally to sales of defense articles and defense
services under any Act.”
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TITLE 22 - Section 2751 - Need for international defense cooperation and military expor...
NB: This unofficial compilation of the U.S. Code is current as of Jan. 4, 2012 (see http://www.law.cornell.edu/uscode/uscprint.html).
Amendments
1981—Pub. L. 97–113 struck out paragraph which provided that it was the sense of Congress that sales and guaranties
under sections 2761, 2762, 2763, and 2764 of this title not be approved where they would have had the effect of
arming military dictators who were denying the growth of fundamental rights or social progress to their own people
but allowing the President to waive this limitation when he determined it would be important to the security of the
United States, and promptly so reported to the Speaker of the House of Representatives and the Committee on Foreign
Relations in the Senate.
1978—Pub. L. 95–384, § 15(a), inserted paragraph relating to adherence to a policy of restraint in conventional arms
transfer.
1976—Pub. L. 94–329 substituted in last paragraph provision relating to a new statement of policy whereby the
United States shall exert leadership in the reduction of international trade in arms, and in that regard, the President to
initiate discussions and actively work with other nations with a view towards control of international trade in arms,
for provisions relating to a reduction in the role of the United States in furnishing of defense articles and defense
services to foreign countries and international organizations by decreasing sales, credit sales and guarantees of such
articles and services.
1973—Pub. L. 93–189 inserted last paragraph relating to a reduction by the United States in the furnishing of defense
articles and defense services to foreign countries.
1971—Pub. L. 91–672 substituted “denying the growth of fundamental rights or social progress” for “denying social
progress” in last par.
Effective Date
Section 41 of Pub. L. 90–629 provided that: “This Act [enacting this chapter, amending sections 2344, 2382, 2392,
2394, and 2403 of this title, repealing sections 2341 to 2343, 2345, and 2399a of this title, and enacting provisions set
out as notes under this section and section 2341 of this title] shall take effect on July 1, 1968.”
Short Title of 2010 Amendment
Pub. L. 111–266, § 1, Oct. 8, 2010, 124 Stat. 2797, provided that: “This Act [amending sections 2321h, 2753, 2755,
2761, 2765, 2776, 2778, 2779, 2779a, 2796a, and 2796b of this title and enacting provisions set out as notes under this
section and section 2778 of this title] may be cited as the ‘Security Cooperation Act of 2010’.”
Pub. L. 111–266, title I, § 101, Oct. 8, 2010, 124 Stat. 2797, provided that: “This title [amending sections 2753, 2755,
2765, 2776, 2778, 2779, and 2779a of this title and enacting provisions set out as notes under section 2778 of this title]
may be cited as the ‘Defense Trade Cooperation Treaties Implementation Act of 2010’.”
Short Title of 1999 Amendment
Pub. L. 106–113, div. B, § 1000(a)(7) [div. B, § 1001], Nov. 29, 1999, 113 Stat. 1536, 1501A–485, provided that:
“This division [div. B of H.R. 3427 as enacted by section 1000(a)(7) of Pub. L. 106–113, see Tables for classification]
may be cited as the ‘Arms Control, Nonproliferation, and Security Assistance Act of 1999’.”
Short Title of 1998 Amendment
Pub. L. 105–194, § 1, July 14, 1998, 112 Stat. 627, provided that: “This Act [amending section 2799aa–1 of this title
and enacting provisions set out as notes under section 2799aa–1 of this title] may be cited as the ‘Agriculture Export
Relief Act of 1998’.”
Short Title of 1991 Amendment
Pub. L. 102–228, § 1, Dec. 12, 1991, 105 Stat. 1691, provided that: “This Act [enacting sections 2595b–1 and 2799
to 2799d of this title, amending sections 2581, 2589, 2595, and 2595c of this title, and enacting provisions set out
as notes under section 2551 of this title] may be cited as the ‘Conventional Forces in Europe Treaty Implementation
Act of 1991’.”
Short Title
Pub. L. 90–629, as amended by section 201(a) of Pub. L. 94–329, provided: “That this Act [enacting this chapter,
amending sections 2382, 2392, 2394, and 2403 of this title, repealing sections 2341 to 2343, 2344, 2345, 2394, and
2399 of this title, and enacting provisions set out as notes under this section and section 2341 of this title] may be
cited as the ‘Arms Export Control Act’.”
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TITLE 22 - Section 2751 - Need for international defense cooperation and military expor...
NB: This unofficial compilation of the U.S. Code is current as of Jan. 4, 2012 (see http://www.law.cornell.edu/uscode/uscprint.html).
Registration and End-Use Monitoring of Defense Articles and Defense Services
Transferred to Afghanistan and Pakistan
Pub. L. 111–84, div. A, title XII, § 1225, Oct. 28, 2009, 123 Stat. 2523, provided that:
“(a) Program Required.—
“(1) In general.—The Secretary of Defense shall establish and carry out a program to provide for the registration and
end-use monitoring of defense articles and defense services transferred to Afghanistan and Pakistan in accordance
with the requirements under subsection (b) and to prohibit the retransfer of such defense articles and defense services
without the consent of the United States. The program required under this subsection shall be limited to the transfer
of defense articles and defense services—
“(A) pursuant to authorities other than the Arms Export Control Act [22 U.S.C. 2751 et seq.] or the Foreign Assistance
Act of 1961 [22 U.S.C. 2151 et seq.]; and
“(B) using funds made available to the Department of Defense, including funds available pursuant to the Pakistan
Counterinsurgency Fund.
“(2) Prohibition.—No defense articles or defense services that would be subject to the program required under this
subsection may be transferred to—
“(A) the Government of Afghanistan or any other group, organization, citizen, or resident of Afghanistan, or
“(B) the Government of Pakistan or any other group, organization, citizen, or resident of Pakistan,
until the Secretary of Defense certifies to the specified congressional committees that the program required under this
subsection has been established.
“(b) Registration and End-use Monitoring Requirements.—The registration and end-use monitoring requirements
under this subsection shall include the following:
“(1) A detailed record of the origin, shipping, and distribution of defense articles and defense services transferred to—
“(A) the Government of Afghanistan and other groups, organizations, citizens, and residents of Afghanistan; and
“(B) the Government of Pakistan and other groups, organizations, citizens, and residents of Pakistan.
“(2) The registration of the serial numbers of all small arms to be provided to—
“(A) the Government of Afghanistan and other groups, organizations, citizens, and residents of Afghanistan; and
“(B) the Government of Pakistan and other groups, organizations, citizens, and residents of Pakistan.
“(3) A program of end-use monitoring of lethal defense articles and defense services transferred to the entities and
individuals described in subparagraphs (A) and (B) of paragraph (1).
“(c) Review; Exemption.—
“(1) Review.—The Secretary of Defense shall periodically review the defense articles and defense services subject
to the registration and end-use monitoring requirements under subsection (b) to determine which defense articles and
defense services, if any, should no longer be subject to such registration and end-use monitoring requirements. The
Secretary of Defense shall submit to the specified congressional committees the results of each review conducted
under this paragraph.
“(2) Exemption.—The Secretary of Defense may exempt a defense article or defense service from the registration and
end-use monitoring requirements under subsection (b) beginning on the date that is 30 days after the date on which
the Secretary provides notice of the proposed exemption to the specified congressional committees. Such notice shall
describe any controls to be imposed on such defense article or defense service, as the case may be, under any other
provision of law.
“(d) Definitions.—In this section:
“(1) Defense article.—The term ‘defense article’ has the meaning given the term in section 644(d) of the Foreign
Assistance Act of 1961 (22 U.S.C. 2403 (d)).
“(2) Defense service.—The term ‘defense service’ has the meaning given the term in section 644(f) of the Foreign
Assistance Act of 1961 (22 U.S.C. 2403 (f)).
“(3) Small arm.—The term ‘small arm’ means—
“(A) a handgun or pistol;
“(B) a shoulder-fired weapon, including a sub-carbine, carbine, or rifle;
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“(C) a light, medium, or heavy automatic weapon up to and including a .50 caliber machine gun;
“(D) a recoilless rifle up to and including 106mm;
“(E) a mortar up to and including 81mm;
“(F) a rocket launcher, man-portable;
“(G) a grenade launcher, rifle and shoulder fired; and
“(H) an individually-operated weapon which is portable or can be fired without special mounts or firing devices and
which has potential use in civil disturbances and is vulnerable to theft.
“(4) Specified congressional committees.—The term ‘specified congressional committees’ means—
“(A) the Committee on Foreign Affairs and the Committee on Armed Services of the House of Representatives; and
“(B) the Committee on Foreign Relations and the Committee on Armed Services of the Senate.
“(e) Effective Date.—
“(1) In general.—Except as provided in paragraph (2), this section shall take effect 180 days after the date of the
enactment of this Act [Oct. 28, 2009].
“(2) Exception.—The Secretary of Defense may delay the effective date of this section by an additional period of up to
120 days if the Secretary certifies in writing to the specified congressional committees for such additional period that it
is in the vital interest of the United States to do so and includes in the certification a description of such vital interest.”
Tracking and Monitoring of Defense Articles Provided to the Government of Iraq
and Other Individuals and Groups in Iraq
Pub. L. 110–181, div. A, title XII, § 1228, Jan. 28, 2008, 122 Stat. 377, provided that:
“(a) Export and Transfer Control Policy.—The President shall implement a policy to control the export and transfer
of defense articles into Iraq, including implementation of the registration and monitoring system under subsection (c).
“(b) Requirement to Implement Control System.—No defense articles may be provided to the Government of Iraq or
any other group, organization, citizen, or resident of Iraq until the President certifies to the specified congressional
committees that a registration and monitoring system meeting the requirements set forth in subsection (c) has been
established.
“(c) Registration and Monitoring System.—The registration and monitoring system required under this subsection
shall include—
“(1) the registration of the serial numbers of all small arms to be provided to the Government of Iraq or to other groups,
organizations, citizens, or residents of Iraq;
“(2) a program of end-use monitoring of all lethal defense articles provided to such entities or individuals; and
“(3) a detailed record of the origin, shipping, and distribution of all defense articles transferred under the Iraq Security
Forces Fund or any other security assistance program to such entities or individuals.
“(d) Review; Exemption.—
“(1) Review.—The President shall periodically review the items subject to the registration and monitoring
requirements under subsection (c) to determine what items, if any, should no longer be subject to such registration and
monitoring requirements. The President shall transmit to the specified congressional committees the results of each
review conducted under this paragraph.
“(2) Exemption.—The President may exempt an item from the registration and monitoring requirements under
subsection (c) beginning on the date that is 30 days after the date on which the President provides notice of the proposed
exemption to the specified congressional committees in accordance with the procedures applicable to reprogramming
notifications under section 634A(a) of the Foreign Assistance Act of 1961 (22 U.S.C. 2394–1 (a)). Such notice shall
describe any controls to be imposed on such item under any other provision of law.
“(e) Definitions.—In this section:
“(1) Defense article.—The term ‘defense article’ has the meaning given the term in section 644(d) of the Foreign
Assistance Act of 1961 (22 U.S.C. 2403 (d)).
“(2) Small arms.—The term ‘small arms’ means—
“(A) handguns;
“(B) shoulder-fired weapons;
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“(C) light automatic weapons up to and including .50 caliber machine guns;
“(D) recoilless rifles up to and including 106mm;
“(E) mortars up to and including 81mm;
“(F) rocket launchers, man-portable;
“(G) grenade launchers, rifle and shoulder fired; and
“(H) individually-operated weapons which are portable or can be fired without special mounts or firing devices and
which have potential use in civil disturbances and are vulnerable to theft.
“(3) Specified congressional committees.—The term ‘specified congressional committees’ means—
“(A) the Committee on Foreign Affairs and the Committee on Armed Services of the House of Representatives; and
“(B) the Committee on Foreign Relations, the Committee on Armed Services, and the Committee on Banking, Housing,
and Urban Affairs of the Senate.
“(f) Effective Date.—
“(1) In general.—Except as provided in paragraph (2), this section shall take effect 180 days after the date of the
enactment of this Act [Jan. 28, 2008].
“(2) Exception.—The President may delay the effective date of this section by an additional period of up to 90 days if
the President certifies in writing to the specified congressional committees for such additional period that it is in the
vital interest of the United States to do so and includes in the certification a description of such vital interest.”
Man-Portable Air Defense Systems (MANPADS)
Pub. L. 109–472, § 12, Jan. 11, 2007, 120 Stat. 3558, provided that:
“(a) Statement of Policy.—Congress declares that it should be the policy of the United States to hold foreign
governments accountable for knowingly transferring MANPADS to state-sponsors of terrorism or terrorist
organizations.
“(b) Determination Relating to Sanctions.—
“(1) In general.—If the President determines that a foreign government knowingly transfers MANPADS to a foreign
government described in paragraph (2) or a terrorist organization, the President shall—
“(A) submit forthwith to the Committee on International Relations [now Committee on Foreign Affairs] of the House
of Representatives and the Committee on Foreign Relations of the Senate a report containing such determination; and
“(B) impose forthwith on the transferring foreign government the sanctions described in subsection (c).
“(2) Foreign government described.—A foreign government described in this paragraph is a foreign government that
the Secretary of State has determined, for purposes of section 6(j) of the Export Administration Act of 1979 [50 App.
U.S.C. 2405 (j)], section 620A of the Foreign Assistance Act of 1961 [22 U.S.C. 2371], section 40 of the Arms Export
Control Act [22 U.S.C. 2780], or any other provision of law, is a government that has repeatedly provided support
for acts of international terrorism.
“(c) Sanctions Described.—The sanctions referred to in subsection (b)(1)(B) are the following:
“(1) Termination of United States Government assistance to the transferring foreign government under the Foreign
Assistance Act of 1961 [22 U.S.C. 2151 et seq.], except that such termination shall not apply in the case of humanitarian
assistance.
“(2) Termination of United States Government—
“(A) sales to the transferring foreign government of any defense articles, defense services, or design and construction
services; and
“(B) licenses for the export to the transferring foreign government of any item on the United States Munitions List.
“(3) Termination of all foreign military financing for the transferring foreign government.
“(d) Waiver.—Notwithstanding any other provision of law, sanctions shall not be imposed on a transferring foreign
government under this section if the President determines and certifies in writing to the Committee on International
Relations [now Committee on Foreign Affairs] of the House of Representatives and the Committee on Foreign
Relations of the Senate that the furnishing of the assistance, sales, licensing, or financing that would otherwise be
suspended as a result of the imposition of such sanctions is important to the national security interests of the United
States.
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“(e) Definitions.—In this section:
“(1) Defense article.—The term ‘defense article’ has the meaning given the term in section 47(3) of the Arms Export
Control Act [22 U.S.C. 2794 (3)].
“(2) Defense service.—The term ‘defense service’ has the meaning given the term in section 47(4) of the Arms Export
Control Act [22 U.S.C. 2794 (4)].
“(3) Design and construction services.—The term ‘design and construction services’ has the meaning given the term
in section 47(8) of the Arms Export Control Act [22 U.S.C. 2794 (8)].
“(4) Foreign government.—The term ‘foreign government’ includes any agency or instrumentality of a foreign
government.
“(5) Manpads.—The term ‘MANPADS’ means—
“(A) a surface-to-air missile system designed to be man-portable and carried and fired by a single individual; or
“(B) any other surface-to-air missile system designed to be operated and fired by more than one individual acting as
a crew and portable by several individuals.”
Pub. L. 108–458, title IV, § 4026, Dec. 17, 2004, 118 Stat. 3724, provided that:
“(a) United States Policy on Nonproliferation and Export Control.—
“(1) To limit availability and transfer of manpads.—The President shall pursue, on an urgent basis, further strong
international diplomatic and cooperative efforts, including bilateral and multilateral treaties, in the appropriate forum
to limit the availability, transfer, and proliferation of MANPADSs worldwide.
“(2) To limit the proliferation of manpads.—The President is encouraged to seek to enter into agreements with the
governments of foreign countries that, at a minimum, would—
“(A) prohibit the entry into force of a MANPADS manufacturing license agreement and MANPADS co-production
agreement, other than the entry into force of a manufacturing license or co-production agreement with a country that
is party to such an agreement;
“(B) prohibit, except pursuant to transfers between governments, the export of a MANPADS, including any
component, part, accessory, or attachment thereof, without an individual validated license; and
“(C) prohibit the reexport or retransfer of a MANPADS, including any component, part, accessory, or attachment
thereof, to a third person, organization, or government unless the written consent of the government that approved the
original export or transfer is first obtained.
“(3) To achieve destruction of manpads.—The President should continue to pursue further strong international
diplomatic and cooperative efforts, including bilateral and multilateral treaties, in the appropriate forum to assure the
destruction of excess, obsolete, and illicit stocks of MANPADSs worldwide.
“(4) Reporting and briefing requirement.—
“(A) President’s report.—Not later than 180 days after the date of enactment of this Act [Dec. 17, 2004], the President
shall transmit to the appropriate congressional committees a report that contains a detailed description of the status of
diplomatic efforts under paragraphs (1), (2), and (3) and of efforts by the appropriate United States agencies to comply
with the recommendations of the General Accounting Office [now Government Accountability Office] set forth in
its report GAO–04–519, entitled ‘Nonproliferation: Further Improvements Needed in U.S. Efforts to Counter Threats
from Man-Portable Air Defense Systems’.
“(B) Annual briefings.—Annually after the date of submission of the report under subparagraph (A) and until
completion of the diplomatic and compliance efforts referred to in subparagraph (A), the Secretary of State shall brief
the appropriate congressional committees on the status of such efforts.
“(b) FAA Airworthiness Certification of Missile Defense Systems for Commercial Aircraft.—
“(1) In general.—As soon as practicable, but not later than the date of completion of Phase II of the Department
of Homeland Security’s counter-man-portable air defense system (MANPADS) development and demonstration
program, the Administrator of the Federal Aviation Administration shall establish a process for conducting
airworthiness and safety certification of missile defense systems for commercial aircraft certified as effective and
functional by the Department of Homeland Security. The process shall require a certification by the Administrator that
such systems can be safely integrated into aircraft systems and ensure airworthiness and aircraft system integrity.
“(2) Certification acceptance.—Under the process, the Administrator shall accept the certification of the Department
of Homeland Security that a missile defense system is effective and functional to defend commercial aircraft against
MANPADSs.
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“(3) Expeditious certification.—Under the process, the Administrator shall expedite the airworthiness and safety
certification of missile defense systems for commercial aircraft certified by the Department of Homeland Security.
“(4) Reports.—Not later than 90 days after the first airworthiness and safety certification for a missile defense
system for commercial aircraft is issued by the Administrator, and annually thereafter until December 31, 2008, the
Federal Aviation Administration shall transmit to the Committee on Transportation and Infrastructure of the House of
Representatives and the Committee on Commerce, Science, and Transportation of the Senate a report that contains a
detailed description of each airworthiness and safety certification issued for a missile defense system for commercial
aircraft.
“(c) Programs to Reduce MANPADS.—
“(1) In general.—The President is encouraged to pursue strong programs to reduce the number of MANPADSs
worldwide so that fewer MANPADSs will be available for trade, proliferation, and sale.
“(2) Reporting and briefing requirements.—Not later than 180 days after the date of enactment of this Act [Dec.
17, 2004], the President shall transmit to the appropriate congressional committees a report that contains a detailed
description of the status of the programs being pursued under subsection (a). Annually thereafter until the programs are
no longer needed, the Secretary of State shall brief the appropriate congressional committees on the status of programs.
“(3) Funding.—There is authorized to be appropriated such sums as may be necessary to carry out this section.
“(d) MANPADS Vulnerability Assessments Report.—
“(1) In general.—Not later than one year after the date of enactment of this Act [Dec. 17, 2004], the Secretary
of Homeland Security shall transmit to the Committee on Transportation and Infrastructure of the House of
Representatives and the Committee on Commerce, Science, and Transportation of the Senate a report describing the
Department of Homeland Security’s plans to secure airports and the aircraft arriving and departing from airports
against MANPADSs attacks.
“(2) Matters to be addressed.—The Secretary’s report shall address, at a minimum, the following:
“(A) The status of the Department’s efforts to conduct MANPADSs vulnerability assessments at United States airports
at which the Department is conducting assessments.
“(B) How intelligence is shared between the United States intelligence agencies and Federal, State, and local law
enforcement to address the MANPADS threat and potential ways to improve such intelligence sharing.
“(C) Contingency plans that the Department has developed in the event that it receives intelligence indicating a high
threat of a MANPADS attack on aircraft at or near United States airports.
“(D) The feasibility and effectiveness of implementing public education and neighborhood watch programs in areas
surrounding United States airports in cases in which intelligence reports indicate there is a high risk of MANPADS
attacks on aircraft.
“(E) Any other issues that the Secretary deems relevant.
“(3) Format.—The report required by this subsection may be submitted in a classified format.
“(e) Definitions.—In this section, the following definitions apply:
“(1) Appropriate congressional committees.—The term ‘appropriate congressional committees’ means—
“(A) the Committee on Armed Services, the Committee on International Relations [now Committee on Foreign
Affairs], and the Committee on Transportation and Infrastructure of the House of Representatives; and
“(B) the Committee on Armed Services, the Committee on Foreign Relations, and the Committee on Commerce,
Science, and Transportation of the Senate.
“(2) MANPADS.—The term ‘MANPADS’ means—
“(A) a surface-to-air missile system designed to be man-portable and carried and fired by a single individual; and
“(B) any other surface-to-air missile system designed to be operated and fired by more than one individual acting as
a crew and portable by several individuals.”
[Functions of President under subsecs. (a)(4)(A), (c)(2) of section 4026 of Pub. L. 108–458, set out above, assigned
to Secretary of State by section 1 of Memorandum of President of the United States, Apr. 21, 2005, 70 F.R. 48633,
set out as a note under section 301 of title 3, The President.]
Bilateral Exchanges and Trade in Defense Articles and Defense Services
Between the United States and the United Kingdom and Australia
Pub. L. 108–375, div. A, title XII, § 1225, Oct. 28, 2004, 118 Stat. 2091, provided that:
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“(a) Policy.—It is the policy of Congress that bilateral exchanges and trade in defense articles and defense services
between the United States and the United Kingdom and Australia are in the national security interest of the United
States and that such exchanges and trade should be subjected to accelerated review and processing consistent with
national security and the requirements of the Arms Export Control Act (22 U.S.C. 2751 et seq.).
“(b) Requirement.—The Secretary of State shall ensure that any license application submitted for the export of defense
articles or defense services to Australia or the United Kingdom is expeditiously processed by the Department of State,
in consultation with the Department of Defense, without referral to any other Federal department or agency, except
where the item is classified or exceptional circumstances apply.
“(c) Regulations.—The President shall ensure that regulations are prescribed to implement this section.”
Eligibility of Panama Under Arms Export Control Act
Pub. L. 104–164, title I, § 154, July 21, 1996, 110 Stat. 1440, provided that: “The Government of the Republic of
Panama shall be eligible to purchase defense articles and defense services under the Arms Export Control Act (22
U.S.C. 2751 et seq.), except as otherwise specifically provided by law.”
Reports on Counterproliferation Activities and Programs
Pub. L. 103–337, div. A, title XV, § 1503, Oct. 5, 1994, 108 Stat. 2916; Pub. L. 104–201, div. A, title XIII, § 1309(d),
Sept. 23, 1996, 110 Stat. 2710; Pub. L. 106–65, div. A, title XV, § 1504(c), Oct. 5, 1999, 113 Stat. 808; Pub. L.
107–314, div. A, title XII, § 1208(b), (c), Dec. 2, 2002, 116 Stat. 2668; Pub. L. 110–181, div. A, title XII, § 1256(d),
Jan. 28, 2008, 122 Stat. 404, provided that:
“(a) Biennial Report Required.—Not later than May 1 each odd-numbered year, the Secretary of Defense shall submit
to Congress a report of the findings of the Counterproliferation Program Review Committee established by subsection
(a) of the Review Committee charter.
“(b) Content of Report.—Each report under subsection (a) shall include the following:
“(1) A complete list, by specific program element, of the existing, planned, or newly proposed capabilities and
technologies reviewed by the Review Committee pursuant to subsection (c) of the Review Committee charter.
“(2) A complete description of the requirements and priorities established by the Review Committee.
“(3) A comprehensive discussion of the near-term, mid-term, and long-term programmatic options formulated by the
Review Committee for meeting requirements prescribed by the Review Committee and for eliminating deficiencies
identified by the Review Committee, including the annual funding requirements and completion dates established for
each such option.
“(4) An explanation of the recommendations made pursuant to subsection (c) of the Review Committee charter,
together with a full discussion of the actions taken to implement such recommendations or otherwise taken on the
recommendations.
“(5) A discussion and assessment of the status of each Review Committee recommendation during the two fiscal years
preceding the fiscal year in which the report is submitted, including, particularly, the status of recommendations made
during such preceding fiscal years that were reflected in the budget submitted to Congress pursuant to section 1105
(a) of title 31, United States Code, in the fiscal year of the report.
“(6) Each specific Department of Energy program that the Secretary of Energy plans to develop to initial operating
capability and each such program that the Secretary does not plan to develop to initial operating capability.
“(7) For each technology program scheduled to reach initial operational capability, a recommendation from the
Chairman of the Joint Chiefs of Staff that represents the views of the commanders of the unified and specified
commands regarding the utility and requirement of the program.
“(8) A discussion of the limitations and impediments to the biological weapons counterproliferation efforts of the
Department of Defense (including legal, policy, and resource constraints) and recommendations for the removal or
mitigation of such impediments and for ways to make such efforts more effective.
“(c) Forms of Report.—Each such report shall be submitted in both unclassified and classified forms, including an
annex to the classified report for special compartmented information programs, special access programs, and special
activities programs.
“(d) Review Committee Charter Defined.—For purposes of this section, the term ‘Review Committee charter’ means
section 1605 of the National Defense Authorization Act for Fiscal Year 1994 [Pub. L. 103–160] (22 U.S.C. 2751 note ).
“(e) Termination of Requirement.—The final report required under subsection (a) is the report for the year following
the year in which the Counterproliferation Program Review Committee established under the Review Committee
Charter ceases to exist.”
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Arab League Boycott of Israel
Pub. L. 103–236, title V, § 564, Apr. 30, 1994, 108 Stat. 484, as amended by Pub. L. 103–415, § 1(l), Oct. 25, 1994,
108 Stat. 4301, provided that:
“(a) Prohibition.—No defense article or defense service may be sold or leased by the United States Government
to any country or international organization that, as a matter of policy or practice, is known to have sent letters to
United States firms requesting compliance with, or soliciting information regarding compliance with, the Arab League
secondary or tertiary boycott of Israel, unless the President determines, and so certifies to the appropriate congressional
committees, that that country or organization does not currently maintain a policy or practice of making such requests
or solicitations.
“(b) Waiver.—
“(1) 1-year waiver.—On or after the effective date of this section, the President may waive, for a period of 1 year,
the application of subsection (a) with respect to any country or organization if the President determines, and reports
to the appropriate congressional committees, that—
“(A) such waiver is in the national interest of the United States, and such waiver will promote the objectives of this
section to eliminate the Arab boycott; or
“(B) such waiver is in the national security interest of the United States.
“(2) Extension of waiver.—If the President determines that the further extension of a waiver will promote the
objectives of this section, the President, upon notification of the appropriate congressional committees, may grant
further extensions of such waiver for successive 12-month periods.
“(3) Termination of waiver.—The President may, at any time, terminate any waiver granted under this subsection.
“(c) Definitions.—As used in this section—
“(1) the term ‘appropriate congressional committees’ means the Committee on Foreign Relations of the Senate and
the Committee on Foreign Affairs of the House of Representatives; and
“(2) the terms ‘defense article’ and ‘defense service’ have the meanings given to such terms by paragraphs (3) and (4),
respectively, of section 47 of the Arms Export Control Act [22 U.S.C. 2794 (3), (4)].
“(d) Effective Date.—This section shall take effect 1 year after the date of enactment of this Act [Apr. 30, 1994].”
[Memorandum of President of the United States, Apr. 24, 1997, 62 F.R. 24797, delegated to Secretary of State functions
of President under section 564 of Public Law 103–236, set out above.]
[Certifications and determinations relating to suspension of application by President under section 564 of Pub. L.
103–236, set out above, were contained in the following:
[Determination of President of the United States, No. 96–23, Apr. 30, 1996, 61 F.R. 26029.
[Determination of President of the United States, No. 95–20, May 1, 1995, 60 F.R. 22245.]
Counterproliferation Policy and Programs of United States
Pub. L. 103–160, div. A, title XVI, §§ 1603, 1605, 1607, Nov. 30, 1993, 107 Stat. 1843, 1845, 1847, as amended by
Pub. L. 103–337, div. A, title XV, §§ 1502, 1505 (a), (b), Oct. 5, 1994, 108 Stat. 2914, 2919; Pub. L. 104–106, div.
A, title XV, § 1504(b), Feb. 10, 1996, 110 Stat. 513; Pub. L. 104–201, div. A, title XIII, § 1309(a)–(c), Sept. 23, 1996,
110 Stat. 2710; Pub. L. 106–65, div. A, title XV, § 1504(a), (b), Oct. 5, 1999, 113 Stat. 808; Pub. L. 107–314, div. A,
title XII, § 1208(a), (d), Dec. 2, 2002, 116 Stat. 2668; Pub. L. 109–163, div. A, title X, § 1056(f), Jan. 6, 2006, 119
Stat. 3440; Pub. L. 110–181, div. A, title XII, § 1256(a)–(c), Jan. 28, 2008, 122 Stat. 403; Pub. L. 111–383, div. A,
title IX, § 901(a)(2), Jan. 7, 2011, 124 Stat. 4317, provided that:
“SEC. 1603. STUDIES RELATING TO UNITED STATES COUNTERPROLIFERATION POLICY.
“(a) Authorization To Conduct Studies.—The Secretary of Defense may conduct studies and analysis programs in
support of the counterproliferation policy of the United States.
“(b) Counterproliferation Studies.—Studies and analysis programs under this section may include programs intended
to explore defense policy issues that might be involved in efforts to prevent and counter the proliferation of weapons
of mass destruction and their delivery systems. Such efforts include—
“(1) enhancing United States military capabilities to deter and respond to terrorism, theft, and proliferation involving
weapons of mass destruction;
“(2) cooperating in international programs to enhance military capabilities to deter and respond to terrorism, theft, and
proliferation involving weapons of mass destruction; and
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“(3) otherwise contributing to Department of Defense capabilities to deter, identify, monitor, and respond to such
terrorism, theft, and proliferation involving weapons of mass destruction.
“(c) Designation of Coordinator.—The Under Secretary of Defense for Policy, subject to the supervision and control of
the Secretary of Defense, shall coordinate the policy studies and analysis of the Department of Defense on countering
proliferation of weapons of mass destruction and their delivery systems.
“(d) Report.—Not later than April 30 of each year, the Secretary of Defense shall submit to the appropriate
congressional committees a report on the activities carried out under subsection (a). Each report shall set forth for the
twelve-month period ending on the last day of the month preceding the month in which the report is due the following:
“(1) A description of the studies and analysis carried out.
“(2) The amounts spent for such studies and analysis.
“(3) The organizations that conducted the studies and analysis.
“(4) An explanation of the extent to which such studies and analysis contribute to the counterproliferation policy of
the United States and United States military capabilities to deter and respond to terrorism, theft, and proliferation
involving weapons of mass destruction.
“(5) A description of the measures being taken to ensure that such studies and analysis within the Department of
Defense are managed effectively and coordinated comprehensively.
“SEC. 1605. JOINT COMMITTEE FOR REVIEW OF COUNTERPROLIFERATION PROGRAMS OF THE
UNITED STATES.
“(a) Establishment.—(1) There is hereby established a Counterproliferation Program Review Committee composed
of the following members:
“(A) The Secretary of Defense.
“(B) The Secretary of Energy.
“(C) The Director of National Intelligence.
“(D) The Chairman of the Joint Chiefs of Staff.
“(E) The Secretary of State.
“(F) The Secretary of Homeland Security.
“(2) The Secretary of Defense shall chair the committee. The Secretary of Energy shall serve as the Vice Chairman
of the committee.
“(3) A member of the committee may designate a representative to perform routinely the duties of the member. A
representative shall be in a position of Deputy Assistant Secretary or a position equivalent to or above the level of
Deputy Assistant Secretary. A representative of the Chairman of the Joint Chiefs of Staff shall be a person in a grade
equivalent to that of Deputy Assistant Secretary of Defense.
“(4) The Secretary of Defense may delegate to the Under Secretary of Defense for Acquisition, Technology, and
Logistics the performance of the duties of the Chairman of the committee. The Secretary of Energy may delegate to the
Under Secretary of Energy responsible for national security programs of the Department of Energy the performance
of the duties of the Vice Chairman of the committee.
“(5) The Assistant Secretary of Defense for Nuclear, Chemical, and Biological Defense Programs shall serve as
executive secretary to the committee, except that during any period during which that position is vacant the Assistant
Secretary of Defense for Strategy and Threat Reduction shall serve as the executive secretary.
“(b) Purposes of the Committee.—The purposes of the committee are as follows:
“(1) To optimize funding for, and ensure the development and deployment of—
“(A) highly effective technologies and capabilities for the detection, monitoring, collection, processing, analysis, and
dissemination of information in support of United States counterproliferation policy and efforts, including efforts
to stem the proliferation of weapons of mass destruction and to negate paramilitary and terrorist threats involving
weapons of mass destruction; and
“(B) disabling technologies in support of such policy.
“(2) To identify and eliminate undesirable redundancies or uncoordinated efforts in the development and deployment
of such technologies and capabilities.
“(3) To establish priorities for programs and funding.
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NB: This unofficial compilation of the U.S. Code is current as of Jan. 4, 2012 (see http://www.law.cornell.edu/uscode/uscprint.html).
“(4) To encourage and facilitate interagency and interdepartmental funding of programs in order to ensure necessary
levels of funding to develop, operate, and field highly-capable systems.
“(5) To ensure that Department of Energy programs are integrated with the operational needs of other departments
and agencies of the Government.
“(6) To ensure that Department of Energy national security programs include technology demonstrations and prototype
development of equipment.
“(c) Duties.—The committee shall—
“(1) identify and review existing and proposed capabilities and technologies for support of United States
nonproliferation policy and counterproliferation policy with regard to—
“(A) intelligence;
“(B) battlefield surveillance;
“(C) passive defenses;
“(D) active defenses; and
“(E) counterforce capabilities;
“(2) prescribe requirements and priorities for the development and deployment of highly effective capabilities and
technologies;
“(3) identify deficiencies in existing capabilities and technologies;
“(4) formulate near-term, mid-term, and long-term programmatic options for meeting requirements established by the
committee and eliminating deficiencies identified by the committee; and
“(5) assess each fiscal year the effectiveness of the committee actions during the preceding fiscal year, including,
particularly, the status of recommendations made during such preceding fiscal year that were reflected in the budget
submitted to Congress pursuant to section 1105 (a) of title 31, United States Code, for the fiscal year following the
fiscal year in which the assessment is made.
“(d) Access to Information.—The committee shall have access to information on all programs, projects, and activities
of the Department of Defense, the Department of State, the Department of Energy, the Department of State, the
Department of Homeland Security, the intelligence community, and the Arms Control and Disarmament Agency that
are pertinent to the purposes and duties of the committee.
“(e) Recommendations.—The committee shall submit to the President and the heads of all appropriate departments
and agencies of the Government such programmatic recommendations regarding existing, planned, or new programs
as the committee considers appropriate to encourage funding for capabilities and technologies at the level necessary
to support United States counterproliferation policy.
“(f) Termination of Committee.—The committee shall cease to exist at the end of September 30, 2013.
“SEC. 1607. DEFINITIONS.
“For purposes of this subtitle [subtitle A, §§ 1601–1607, of title XVI of div. A of Pub. L. 103–160, amending section
5859a of this title and enacting this note]:
“(1) The term ‘appropriate congressional committees’ means—
“(A) the Committee on Armed Services, the Committee on Appropriations, the Committee on Foreign Relations, and
the Select Committee on Intelligence of the Senate; and
“(B) the Committee on Armed Services [now Committee on National Security], the Committee on Appropriations, the
Committee on Foreign Affairs, and the Permanent Select Committee on Intelligence of the House of Representatives.
“(2) The term ‘intelligence community’ has the meaning given such term in section 3 of the National Security Act
of 1947 (50 U.S.C. 401a).”
[For abolition, transfer of functions, and treatment of references to United States Arms Control and Disarmament
Agency, see section 6511 et seq. of this title.]
Restriction on Arms Sales to Saudi Arabia and Kuwait
Pub. L. 102–229, title I, § 104, Dec. 12, 1991, 105 Stat. 1707, provided that:
“(a) No funds appropriated or otherwise made available by this or any other Act may be used in any fiscal year to
conduct, support, or administer any sale of defense articles or defense services to Saudi Arabia or Kuwait until that
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NB: This unofficial compilation of the U.S. Code is current as of Jan. 4, 2012 (see http://www.law.cornell.edu/uscode/uscprint.html).
country has paid in full, either in cash or in mutually agreed in-kind contributions, the following commitments made
to the United States to support Operation Desert Shield/Desert Storm:
“(1) In the case of Saudi Arabia, $16,839,000,000.
“(2) In the case of Kuwait, $16,006,000,000.
“(b) For purposes of this section, the term ‘any sale’ means any sale with respect to which the President is required
to submit a numbered certification to the Congress pursuant to the Arms Export Control Act [22 U.S.C. 2751 et seq.]
on or after the effective date of this section.
“(c) This section shall take effect 120 days after the date of enactment of this joint resolution [Dec. 12, 1991].
“(d) Any military equipment of the United States, including battle tanks, armored combat vehicles, and artillery,
included within the Conventional Forces in Europe Treaty definition of ‘conventional armaments and equipment
limited by the Treaty’, which may be transferred to any other NATO country shall be subject to the notification
procedures stated in section 523 of Public Law 101–513 [104 Stat. 2007] and in section 634A of the Foreign Assistance
Act of 1961 [22 U.S.C. 2394–1].”
Annual Report on Proliferation of Missiles and Essential Components of
Nuclear, Biological, and Chemical Weapons
Pub. L. 102–190, div. A, title X, § 1097, Dec. 5, 1991, 105 Stat. 1489, as amended by Pub. L. 104–106, div. A, title
XV, §§ 1502(c)(3), 1504 (d), Feb. 10, 1996, 110 Stat. 507, 514; Pub. L. 106–65, div. A, title X, § 1067(9), Oct. 5, 1999,
113 Stat. 774, required the President to submit to Congress annual reports on transfers by any country of weapons,
technology, or materials that can be used to deliver, manufacture, or weaponize nuclear, biological, or chemical
weapons to any country (other than certain specified countries) seeking to acquire such weapons, technology, or
materials, and specified time, coverage, contents and classification of such reports, prior to repeal by Pub. L. 107–228,
div. B, title XIII, § 1308(g)(1)(A), Sept. 30, 2002, 116 Stat. 1441.
Conventional Arms Transfers
Pub. L. 99–83, title I, § 129, Aug. 8, 1985, 99 Stat. 206, directed President, at the earliest possible date, in consultation
with United States allies, to initiate discussions with the Soviet Union and France aimed at beginning multilateral
negotiations to limit and control the transfer of conventional arms to less developed countries, and, within one year
after Aug. 8, 1985, submit to Speaker of House of Representatives and chairman of Committee on Foreign Relations
of Senate a report which specifies steps being taken to fulfill such requirements and which examines and analyzes,
among specified matters, United States policies concerning the export of conventional arms, especially sophisticated
weapons, and possible approaches to developing multilateral limitations on conventional arms sales.
Termination of Nonrecurring Activities Under Foreign Assistance Act of 1961
and This Chapter and Removal From Law
Section 734(c) of Pub. L. 97–113 provided that: “Except as otherwise explicitly provided by their terms, amendments
to the Foreign Assistance Act of 1961 [22 U.S.C. 2151 et seq.] and the Arms Export Control Act [this chapter] which
are applicable only to a single fiscal or calendar year or which require reports or other actions on a nonrecurring basis
shall be deemed to have expired and shall be removed from law upon the expiration of the applicable time periods
for the fulfillment of the required actions.”
Report to Congress by President on Multilateral Discussions Concerning Arms
Transfer Policy
Section 15(b) of Pub. L. 95–384 directed President, not later than Dec. 31, 1979, to transmit to Congress a detailed
report assessing results and commenting on implications of multilateral discussion referred to in paragraph added to
this section by section 15(a) of Pub. L. 95–384, relating to adherence to a policy of restraint in conventional arms
transfer, prior to repeal by Pub. L. 97–113, title VII, § 734(a)(12), Dec. 29, 1981, 95 Stat. 1560.
Report by President on Review of Arms Sales Controls on Non-Lethal Items
Section 25 of Pub. L. 95–384 directed President, within 120 days after Sept. 26, 1978, to report in writing to Speaker
of House of Representatives and chairman of Committee on Foreign Relations of Senate the results of the review
conducted pursuant to Pub. L. 95–92, § 27, Aug. 4, 1977, 91 Stat. 626, set out below, prior to repeal by Pub. L. 97–113,
title VII, § 734(a)(12), Dec. 29, 1981, 95 Stat. 1560.
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NB: This unofficial compilation of the U.S. Code is current as of Jan. 4, 2012 (see http://www.law.cornell.edu/uscode/uscprint.html).
Report by President on Impact of Foreign Arms Sales and Transfers to Foreign
Governments on Defense Readiness and National Security of United States
Pub. L. 95–92, § 23, Aug. 4, 1977, 91 Stat. 624, set forth provisions respecting Presidential report on impact of United
States foreign arms sales and transfers on defense readiness and national security, prior to repeal by Pub. L. 95–384,
§ 29(c)(2)(B), Sept. 26, 1978, 92 Stat. 747.
Study by President of National Security and Military Implications of International
Transfers of Technology; Scope of Study; Utilization of Executive Departments
and Agencies
Pub. L. 95–92, § 24, Aug. 4, 1977, 91 Stat. 624, as amended by Pub. L. 97–113, title VII, § 734(a)(13), Dec. 29,
1981, 95 Stat. 1560, directed President to conduct a comprehensive study of policies and practices of United States
Government with respect to national security and military implications of international transfers of technology in order
to determine whether such policies and practices should be changed, with President to utilize resources and expertise
of Arms Control and Disarmament Agency, Department of State, Department of Defense, Department of Commerce,
National Science Foundation, Office of Science and Technology Policy, and such other entities within the Executive
branch as he deemed necessary.
Statement of Policy Regarding United States Arms Sales to Israel
Pub. L. 95–92, § 26, Aug. 4, 1977, 91 Stat. 625, provided that: “In accordance with the historic special relationship
between the United States and Israel and previous agreements and continuing understandings, the Congress joins with
the President in reaffirming that a policy of restraint in United States arms transfers, including arms sales ceilings,
shall not impair Israel’s deterrent strength or undermine the military balance in the Middle East.”
Review by President of Categories and Arms Sales Controls on Lethal and
Non-Lethal Items
Pub. L. 95–92, § 27, Aug. 4, 1977, 91 Stat. 626, directed President to undertake a review of all regulations relating to
arms control for the purpose of defining and categorizing lethal and non-lethal products and establishing the appropriate
level of control for each category.
Study of United States Arms Sales Policies and Practices by President; Report
to Congress
Section 202(b) of Pub. L. 94–329 set forth provisions respecting study and report to Congress of United States arms
sales policies and practices, prior to repeal by Pub. L. 95–384, § 29(c)(1)(A), Sept. 26, 1978, 92 Stat. 747.
Presidential Report Regarding Sales of Excess Defense Articles to Foreign
Governments and International Organizations
Section 217 of Pub. L. 94–329 set forth provisions respecting report by the President of all sales under this chapter
of excess defense articles to foreign governments and international organizations, prior to repeal by Pub. L. 95–384,
§ 29(c)(1)(B), Sept. 26, 1978, 92 Stat. 747.
Study by Secretaries of State and Defense on Consequences of Enactment of
Arms Export Control Provisions
Section 218 of Pub. L. 94–329 set forth provisions respecting study by the Secretaries of State and Defense on
consequences of enactment of arms export control provisions by title II of Pub. L. 94–329, prior to repeal by Pub. L.
95–384, § 29(c)(1)(C), Sept. 26, 1978, 92 Stat. 747.
Total Number of Credits To Be Extended Between July 1, 1976, and September
30, 1976
Section 506(b) of Pub. L. 94–329 provided that the total number of credits extended pursuant to this chapter, between
July 1, 1976, and Sept. 30, 1976, not exceed an amount equal to one-fourth of the total amount of credits extended
and guaranteed for fiscal year 1976.
Additional Military and Civilian Personnel for Department of Defense
Pub. L. 94–329, title VI, § 605(a), June 30, 1976, 90 Stat. 768, provided that: “Nothing in this Act [see Short Title
of 1976 Amendment note set out under section 2151 of the title] is intended to authorize any additional military or
civilian personnel for the Department of Defense for the purposes of this Act, the Foreign Assistance Act of 1961
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NB: This unofficial compilation of the U.S. Code is current as of Jan. 4, 2012 (see http://www.law.cornell.edu/uscode/uscprint.html).
[section 2151 et seq. of this title], or the Arms Export Control Act [this chapter]. Personnel levels authorized in statutes
authorizing appropriations for military and civilian personnel of the Department of Defense shall be controlling over
all military and civilian personnel of the Department of Defense assigned to carry out functions under the Arms Export
Control Act and the Foreign Assistance Act of 1961.”
Sales to the Middle East; Requests for Additional Appropriations
Section 5 of Pub. L. 91–672 provided that: “It is the sense of Congress that (1) the President should continue to press
forward urgently with his efforts to negotiate with the Soviet Union and other powers a limitation on arms shipments
to the Middle East, (2) the President should be supported in his position that arms will be made available and credits
provided to Israel and other friendly states, to the extent that the President determines such assistance to be needed
in order to meet threats to the security and independence of such states, and (3) if the authorization provided in the
Foreign Military Sales Act, as amended [this chapter], should prove to be insufficient to effectuate this stated policy,
the President should promptly submit to the Congress requests for an appropriate supplementary authorization and
appropriation.”
Review of Military Aid Programs and Efforts for Regulation of Conventional
Arms Trade
Section 6 of Pub. L. 91–672 provided that: “It is the sense of the Congress that—
“(1) the President should immediately institute a thorough and comprehensive review of the military aid programs
of the United States, particularly with respect to the military assistance and sales operations of the Department of
Defense, and
“(2) the President should take such actions as may be appropriate—
“(A) to initiate multilateral discussions among the United States, the Union of Soviet Socialist Republics, Great Britain,
France, West Germany, Italy and other countries on the control of the worldwide trade in armaments,
“(B) to commence a general debate in the United Nations with respect to the control of the conventional arms trade, and
“(C) to use the power and prestige of his office to signify the intention of the United States to work actively with all
nations to check and control the international sales and distribution of conventional weapons of death and destruction.”
Executive Order No. 11501
Ex. Ord. No. 11501, Dec. 22, 1969, 34 F.R. 20169, as amended by Ex. Ord. No. 11685, Sept. 25, 1972, 37 F.R. 20155,
which related to the administration of this chapter, was revoked by Ex. Ord. No. 11958, Jan. 18, 1977, 42 F.R. 4311,
set out below.
Ex. Ord. No. 11958. Administration of Chapter
Ex. Ord. No. 11958, Jan. 18, 1977, 42 F.R. 4311, as amended by Ex. Ord. No. 12118, Feb. 6, 1979, 44 F.R. 7939;
Ex. Ord. No. 12163, Sept. 29, 1979, 44 F.R. 56673; Ex. Ord. No. 12210, Apr. 16, 1980, 45 F.R. 26313; Ex. Ord. No.
12321, Sept. 14, 1981, 46 F.R. 46109; Ex. Ord. No. 12365, May 24, 1982, 47 F.R. 22933; Ex. Ord. No. 12423, May
26, 1983, 48 F.R. 24025; Ex. Ord. No. 12560, May 24, 1986, 51 F.R. 19159; Ex. Ord. No. 12680, July 5, 1989, 54
F.R. 28995; Ex. Ord. No. 12738, § 7, Dec. 14, 1990, 55 F.R. 52035; Ex. Ord. No. 13030, § 2, Dec. 12, 1996, 61 F.R.
66187; Ex. Ord. No. 13091, § 1, June 29, 1998, 63 F.R. 36153; Ex. Ord. No. 13118, § 10(8), Mar. 31, 1999, 64 F.R.
16598; Ex. Ord. No. 13284, § 13, Jan. 23, 2003, 68 F.R. 4076, provided:
By virtue of the authority vested in me by the Constitution and statutes of the United States of America, including the
Arms Export Control Act, as amended (22 U.S.C. 2751 et seq.), and Section 301 of Title 3 of the United States Code,
and as President of the United States of America, it is hereby ordered as follows:
Section 1. Delegation of Functions. The following functions conferred upon the President by the Arms Export Control
Act (22 U.S.C. 2751 et seq.), hereinafter referred to as the Act, and related legislation, are delegated as follows:
(a) Those under Section 3 of the Act [22 U.S.C. 2753], with the exception of subsections (a)(1), (b), (c)(3), (c)(4), and
(f) to the Secretary of State: Provided, That the Secretary of State, in the implementation of the functions delegated to
him under Sections 3(a) and (d) of the Act, is authorized to find, in the case of a proposed transfer of a defense article
or related training or other defense service by a foreign country or international organization not otherwise eligible
under Section 3(a)(1) of the Act, whether the proposed transfer will strengthen the security of the United States and
promote world peace.
(b) Those under Section 5 [22 U.S.C. 2755] to the Secretary of State.
(c) Those under Section 21 of the Act [22 U.S.C. 2761], with the exception of the last sentence of subsection (d) and
all of subsection (i) [22 U.S.C. 2761 (d), (i)], to the Secretary of Defense.
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NB: This unofficial compilation of the U.S. Code is current as of Jan. 4, 2012 (see http://www.law.cornell.edu/uscode/uscprint.html).
(d) Those under Sections 22(a), 29, 30 and 30A of the Act [22 U.S.C. 2762 (a), 2769, 2770, 2770a] to the Secretary
of Defense.
(e) Those under Section 23 of the Act [22 U.S.C. 2763] and section 571 of the Foreign Operations, Export Financing,
and Related Programs Appropriations Act, 1990 (Public Law 101–167) [22 U.S.C. 2763 note ], to the Secretary of
Defense, to be exercised in consultation with the Secretary of State and the Secretary of the Treasury, except that the
President shall determine any rate of interest to be charged which is less than the market rate of interest.
(f) Those under Sections 24, 27, and 28 of the Act [22 U.S.C. 2764, 2767, former 2768] to the Secretary of Defense.
The Secretary of Defense, in implementing the functions delegated to him under Sections 24 and 27 [22 U.S.C. 2764,
2767], shall consult with the Secretary of State and the Secretary of the Treasury.
(g) Those under Section 25 of the Act [22 U.S.C. 2765] to the Secretary of State. The Secretary of Defense and the
Director of the Arms Control and Disarmament Agency, within their respective areas of responsibility, shall assist the
Secretary of State in the preparation of materials for presentation to the Congress under that Section.
(h) Those under Section 34 of the Act [22 U.S.C. 2774] to the Secretary of State. To the extent the standards and
criteria for credit and guaranty transactions are based upon national security and financial policies, the Secretary of
State shall obtain the prior concurrence of the Secretary of Defense and the Secretary of the Treasury, respectively.
(i) Those under Section 35(a) of the Act [22 U.S.C. 2775 (a)] to the Secretary of State.
(j) Those under Sections 36(a) and 36(b)(1) of the Act [22 U.S.C. 2776 (a), (b)(1)], except with respect to the
certification of an emergency as provided by subsection (b)(1), to the Secretary of Defense. The Secretary of Defense,
in the implementation of the functions delegated to him under Sections 36 (a) and (b)(1) shall consult with the Secretary
of State, who shall, with respect to matters related to subparagraphs (D) and (I) of Section 36 (b)(1), consult with the
Director of the Arms Control and Disarmament Agency. With respect to those functions under Sections 36 (a)(5) and
(6), the Secretary of Defense shall consult with the Director of the Office of Management and Budget.
(k) Those under Sections 36(c) and (d) of the Act [22 U.S.C. 2776 (c), (d)] to the Secretary of State. Those under
Section 36(e) of the Act, as added by Public Law 104–164 with respect to transmittals pursuant to Section 36 (b) to
the Secretary of Defense, and with respect to transmittals pursuant to Section 36 (c), to the Secretary of State.
(l) Those under Section 38 of the Act [22 U.S.C. 2778]:
(1) to the Secretary of State, except as otherwise provided in this subsection. Designations, including changes in
designations, by the Secretary of State of items or categories of items which shall be considered as defense articles and
defense services subject to export control under Section 38 shall have the concurrence of the Secretary of Defense.
The authority to undertake activities to ensure compliance with established export conditions may be redelegated to
the Secretary of Defense, or to the head of another department or agency as appropriate, which shall exercise such
functions in consultation with the Secretary of State;
(2) to the Attorney General, to the extent they relate to the control of the import of defense articles and defense services.
In carrying out such functions, the Attorney General shall be guided by the views of the Secretary of State on matters
affecting world peace, and the external security and foreign policy of the United States. Designations including changes
in designations, by the Attorney General of items or categories of items which shall be considered as defense articles
and defense services subject to import control under Section 38 of the Act [22 U.S.C. 2778] shall have the concurrence
of the Secretary of State and the Secretary of Defense;
(3) to the Secretary of Commerce, to carry out on behalf of the Secretary of State, to the extent such functions involve
Section 38(e) of the Act [22 U.S.C. 2778 (e)] and are agreed to by the Secretary of State and the Secretary of Commerce.
(m) Those under Section 39(b) of the Act [22 U.S.C. 2779 (b)] to the Secretary of State. In carrying out such functions,
the Secretary of State shall consult with the Secretary of Defense as may be necessary to avoid interference in the
application of Department of Defense regulations to sales made under Section 22 of the Act [22 U.S.C. 2762].
(n) Those under Section 40A of the Act [22 U.S.C. 2785], as added by Public Law 104–164, to the Secretary of State
insofar as they relate to commercial exports licensed under the Act, and to the Secretary of Defense insofar as they
relate to defense articles and defense services sold, leased, or transferred under the Foreign Military Sales Program.
(o) Those under Section 40A of the Act [22 U.S.C. 2781], as added by the Antiterrorism and Effective Death Penalty
Act of 1996 (Public Law 104–132), to the Secretary of State.
(p) Those under Sections 42(c) and (f) of the Act [22 U.S.C. 2791 (c), (f)] to the Secretary of Defense. The Secretary of
Defense shall obtain the concurrence of the Secretary of State and the Secretary of the Treasury on any determination
proposed under the authority of Section 42(c) of the Act [22 U.S.C. 2791 (c)].
(q) Those under Sections 52(b) and 53 of the Act [22 U.S.C. 2795a (b), former 2795b] to the Secretary of Defense.
(r) Those under Sections 61 and 62(a) of the Act [22 U.S.C. 2796, 2796a (a)] to the Secretary of Defense.
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(s) Those under Section 2(b)(6) of the Export-Import Bank Act of 1945 (12 U.S.C. 635 (b)(6)) to the Secretary of State.
(t) Those under Section 588(b) of the Foreign Operations, Export Financing, and Related Programs Appropriations
Act, 1989 (Public Law 100–461) [Oct. 1, 1988, 102 Stat. 2268–51], to the Secretary of Defense, except with respect
to the determination of an emergency as provided by subsection (b)(3). The Secretary of Defense in implementation
of the functions delegated to him under section 588 (b) shall consult with the Secretary of State.
Sec. 2. Coordination. (a) In addition to the specific provisions of Section 1 of this Order, the Secretary of State and the
Secretary of Defense, in carrying out the functions delegated to them under this Order, shall consult with each other
and with the heads of other departments and agencies, including the Secretary of the Treasury, the Attorney General,
and the Chairman of the Export-Import Bank, on matters pertaining to their responsibilities.
(b) In accordance with Section 2(b) of the Act [22 U.S.C. 2752 (b)] and under the directions of the President, the
Secretary of State, taking into account other United States activities abroad, shall be responsible for the continuous
supervision and general direction of sales and exports under the Act, including but not limited to, the negotiation,
conclusion, and termination of international agreements, and determining whether there shall be a sale to a country
and the amount thereof, and whether there shall be delivery or other performance under such sale or export, to the
end that sales and exports are integrated with other United States activities and the foreign policy of the United States
is best served thereby.
Sec. 3. Allocation of Funds. Funds appropriated to the President for carrying out the Act shall be deemed to be allocated
to the Secretary of Defense without any further action of the President.
Sec. 4. Revocation. Executive Order No. 11501, as amended, is revoked; except that, to the extent consistent with this
Order, all determinations, authorizations, regulations, rulings, certificates, orders, directives, contracts, agreements,
and other actions made, issued, taken or entered into under the provisions of Executive Order No. 11501, as amended,
and not revoked, superseded or otherwise made inapplicable, shall continue in full force and effect until amended,
modified or terminated by appropriate authority.
[For abolition, transfer of functions, and treatment of references to United States Arms Control and Disarmament
Agency, see section 6511 et seq. of this title.]
.....................................
§ 2752. Coordination with foreign policy
(a) Noninfringement of powers or functions of Secretary of State
Nothing contained in this chapter shall be construed to infringe upon the powers or functions of the
Secretary of State.
(b) Responsibility for supervision and direction of sales, leases, financing, cooperative projects,
and exports
Under the direction of the President, the Secretary of State (taking into account other United States
activities abroad, such as military assistance, economic assistance, and the food for peace program)
shall be responsible for the continuous supervision and general direction of sales, leases, financing,
cooperative projects, and exports under this chapter, including, but not limited to, determining—
(1) whether there will be a sale to or financing for a country and the amount thereof;
(2) whether there will be a lease to a country;
(3) whether there will be a cooperative project and the scope thereof; and
(4) whether there will be delivery or other performance under such sale, lease, cooperative project,
or export,
to the end that sales, financing, leases, cooperative projects, and exports will be integrated with other
United States activities and to the end that the foreign policy of the United States would be best served
thereby.
(c) Coordination among representatives of United States
The President shall prescribe appropriate procedures to assure coordination among representatives of
the United States Government in each country, under the leadership of the Chief of the United States
Diplomatic Mission. The Chief of the diplomatic mission shall make sure that recommendations of
such representatives pertaining to sales are coordinated with political and economic considerations, and
his comments shall accompany such recommendations if he so desires.
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NB: This unofficial compilation of the U.S. Code is current as of Jan. 4, 2012 (see http://www.law.cornell.edu/uscode/uscprint.html).
(Pub. L. 90–629, ch. 1, § 2, Oct. 22, 1968, 82 Stat. 1322; Pub. L. 94–329, title II, § 212(a)(2), June 30,
1976, 90 Stat. 745; Pub. L. 97–113, title I, § 109(b)(1), Dec. 29, 1981, 95 Stat. 1526; Pub. L. 99–83, title
I, § 115(b)(1), Aug. 8, 1985, 99 Stat. 201; Pub. L. 99–145, title XI, § 1102(a)(2), (5), Nov. 8, 1985, 99
Stat. 710; Pub. L. 99–661, div. A, title XIII, § 1342(e), Nov. 14, 1986, 100 Stat. 3991.)
References in Text
This chapter, referred to in subsecs. (a) and (b), was in the original “this Act”, meaning Pub. L. 90–629, Oct. 22, 1968,
82 Stat. 1321, which is classified principally to this chapter. For complete classification of this Act to the Code, see
Short Title note set out under section 2751 of this title and Tables.
Amendments
1986—Subsec. (b). Pub. L. 99–661 repealed section 1102(a)(2) of Pub. L. 99–145 and the amendments made by that
section, and provided that this section shall apply as if that section had never been enacted. See 1985 Amendments
note below.
1985—Subsec. (b). Pub. L. 99–83 amended subsec. (b) generally, substituting reference to the food for peace program
for reference to food for freedom and adding financing and cooperative projects under this chapter to the list of
responsibilities of the Secretary of State.
Pub. L. 99–145, § 1102(a)(2), which enacted amendments similar to those provided in Pub. L. 99–83, was repealed.
See 1986 Amendments note above and Repeals; Effective Date note below.
1981—Subsec. (b). Pub. L. 97–113 substituted “sales, leases,” for “sales” in two places and “such sale, lease,” for
“such sale” and inserted “whether there shall be a lease to a country,” after “whether there shall be a sale to a country
and the amount thereof,”.
1976—Subsec. (b). Pub. L. 94–329 inserted “and exports” after “sales” wherever appearing and “and whether there
shall be delivery or other performance under such sale or export,” after “thereof,”.
Effective Date of 1985 Amendment
Amendment by Pub. L. 99–83 effective Oct. 1, 1985, see section 1301 of Pub. L. 99–83, set out as a note under section
2151–1 of this title.
Repeals; Effective Date
Pub. L. 99–145, title XI, § 1102(a)(5), Nov. 8, 1985, 99 Stat. 710, which provided for the repeal of the amendments
made by § 1102(a) of Pub. L. 99–145, effective as of the effective date of similar amendments by Pub. L. 99–83, was
repealed by Pub. L. 99–661, div. A, title XIII, § 1342(e), Nov. 14, 1986, 100 Stat. 3991.
.....................................
§ 2753. Eligibility for defense services or defense articles
(a) Prerequisites for consent by President; report to Congress
No defense article or defense service shall be sold or leased by the United States Government under
this chapter to any country or international organization, and no agreement shall be entered into for a
cooperative project (as defined in section 2767 of this title), unless—
(1) the President finds that the furnishing of defense articles and defense services to such country
or international organization will strengthen the security of the United States and promote world
peace;
(2) the country or international organization shall have agreed not to transfer title to, or possession
of, any defense article or related training or other defense service so furnished to it, or produced in a
cooperative project (as defined in section 2767 of this title), to anyone not an officer, employee, or
agent of that country or international organization (or the North Atlantic Treaty Organization or the
specified member countries (other than the United States) in the case of a cooperative project) and
not to use or permit the use of such article or related training or other defense service for purposes
other than those for which furnished unless the consent of the President has first been obtained:
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(3) the country or international organization shall have agreed that it will maintain the security
of such article or service and will provide substantially the same degree of security protection
afforded to such article or service by the United States Government; and
(4) the country or international organization is otherwise eligible to purchase or lease defense
articles or defense services.
In considering a request for approval of any transfer of any weapon, weapons system, munitions,
aircraft, military boat, military vessel, or other implement of war to another country, the President shall
not give his consent under paragraph (2) to the transfer unless the United States itself would transfer the
defense article under consideration to that country. In addition, the President shall not give his consent
under paragraph (2) to the transfer of any significant defense articles on the United States Munitions
List unless the foreign country requesting consent to transfer agrees to demilitarize such defense articles
prior to transfer, or the proposed recipient foreign country provides a commitment in writing to the
United States Government that it will not transfer such defense articles, if not demilitarized, to any
other foreign country or person without first obtaining the consent of the President. The President shall
promptly submit a report to the Speaker of the House of Representatives and to the Committee on
Foreign Relations of the Senate on the implementation of each agreement entered into pursuant to
clause (2) of this subsection.
(b) Necessity of consent by President
The consent of the President under paragraph (2) of subsection (a) of this section or under paragraph
(1) of section 2314 (a) of this title (as it relates to subparagraph (B) of such paragraph) shall not be
required for the transfer by a foreign country or international organization of defense articles sold by
the United States under this chapter if a treaty referred to in section 2778 (j)(1)(C)(i) of this title permits
such transfer without prior consent of the President, or if—
(1) such articles constitute components incorporated into foreign defense articles;
(2) the recipient is the government of a member country of the North Atlantic Treaty Organization,
the Government of Australia, the Government of Japan, the Government of the Republic of Korea,
the Government of Israel, or the Government of New Zealand;
(3) the recipient is not a country designated under section 2371 of this title;
(4) the United States-origin components are not—
(A) significant military equipment (as defined in section 2794 (9) of this title);
(B) defense articles for which notification to Congress is required under section 2776 (b) of
this title; and
(C) identified by regulation as Missile Technology Control Regime items; and
(5) the foreign country or international organization provides notification of the transfer of the
defense articles to the United States Government not later than 30 days after the date of such
transfer.
(c) Termination of credits, guaranties or sales; report of violation by President; national security
exception; conditions for reinstatement
(1) (A) No credits (including participations in credits) may be issued and no guaranties may be
extended for any foreign country under this chapter as hereinafter provided, if such country
uses defense articles or defense services furnished under this chapter, or any predecessor
Act, in substantial violation (either in terms of quantities or in terms of the gravity of the
consequences regardless of the quantities involved) of any agreement entered into pursuant
to any such Act
(i) by using such articles or services for a purpose not authorized under section 2754 of
this title or, if such agreement provides that such articles or services may only be used for
purposes more limited than those authorized under section 2754 of this title for a purpose
not authorized under such agreement;
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(ii) by transferring such articles or services to, or permitting any use of such articles or
services by, anyone not an officer, employee, or agent of the recipient country without
the consent of the President; or
(iii) by failing to maintain the security of such articles or services.
(B) No cash sales or deliveries pursuant to previous sales may be made with respect to
any foreign country under this chapter as hereinafter provided, if such country uses defense
articles or defense services furnished under this chapter, or any predecessor Act, in substantial
violation (either in terms of quantity or in terms of the gravity of the consequences regardless
of the quantities involved) of any agreement entered into pursuant to any such Act by using
such articles or services for a purpose not authorized under section 2754 of this title or, if
such agreement provides that such articles or services may only be used for purposes more
limited than those authorized under section 2754 of this title, for a purpose not authorized
under such agreement.
(2) The President shall report to the Congress promptly upon the receipt of information that a
violation described in paragraph (1) of this subsection may have occurred.
(3) (A) A country shall be deemed to be ineligible under subparagraph (A) of paragraph (1) of
this subsection, or both subparagraphs (A) and (B) of such paragraph in the case of a violation
described in both such paragraphs, if the President so determines and so reports in writing to
the Congress, or if the Congress so determines by joint resolution.
(B) Notwithstanding a determination by the President of ineligibility under subparagraph (B)
of paragraph (1) of this subsection, cash sales and deliveries pursuant to previous sales may
be made if the President certifies in writing to the Congress that a termination thereof would
have significant adverse impact on United States security, unless the Congress adopts or has
adopted a joint resolution pursuant to subparagraph (A) of this paragraph with respect to such
ineligibility.
(4) A country shall remain ineligible in accordance with paragraph (1) of this subsection until
such time as—
(A) the President determines that the violation has ceased; and
(B) the country concerned has given assurances satisfactory to the President that such
violation will not recur.
(d) Submission of written certification to Congress; contents; classified material; effective date
of consent; report to Congress; transfers not subject to procedures
(1) Subject to paragraph (5), the President may not give his consent under paragraph (2) of
subsection (a) of this section or under the third sentence of such subsection, or under section 2314
(a)(1) or 2314 (a)(4) of this title, to a transfer of any major defense equipment valued (in terms of its
original acquisition cost) at $14,000,000 or more, or any defense article or related training or other
defense service valued (in terms of its original acquisition cost) at $50,000,000 or more, unless the
President submits to the Speaker of the House of Representatives and the Committee on Foreign
Relations of the Senate a written certification with respect to such proposed transfer containing—
(A) the name of the country or international organization proposing to make such transfer,
(B) a description of the article or service proposed to be transferred, including its acquisition
cost,
(C) the name of the proposed recipient of such article or service,
(D) the reasons for such proposed transfer, and
(E) the date on which such transfer is proposed to be made.
Any certification submitted to Congress pursuant to this paragraph shall be unclassified, except that
information regarding the dollar value and number of articles or services proposed to be transferred
may be classified if public disclosure thereof would be clearly detrimental to the security of the
United States.
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(2) (A) Except as provided in subparagraph (B), unless the President states in the certification
submitted pursuant to paragraph (1) of this subsection that an emergency exists which requires
that consent to the proposed transfer become effective immediately in the national security
interests of the United States, such consent shall not become effective until 30 calendar days
after the date of such submission and such consent shall become effective then only if the
Congress does not enact, within such 30-day period, a joint resolution prohibiting the proposed
transfer.
(B) In the case of a proposed transfer to the North Atlantic Treaty Organization, or any
member country of such Organization, Japan, Australia, the Republic of Korea, Israel, or New
Zealand, unless the President states in the certification submitted pursuant to paragraph (1) of
this subsection that an emergency exists which requires that consent to the proposed transfer
become effective immediately in the national security interests of the United States, such
consent shall not become effective until fifteen calendar days after the date of such submission
and such consent shall become effective then only if the Congress does not enact, within such
fifteen-day period, a joint resolution prohibiting the proposed transfer.
(C) If the President states in his certification under subparagraph (A) or (B) that an emergency
exists which requires that consent to the proposed transfer become effective immediately
in the national security interests of the United States, thus waiving the requirements of that
subparagraph, the President shall set forth in the certification a detailed justification for his
determination, including a description of the emergency circumstances which necessitate
immediate consent to the transfer and a discussion of the national security interests involved.
(D) (i) Any joint resolution under this paragraph shall be considered in the Senate in
accordance with the provisions of section 601(b) of the International Security Assistance
and Arms Export Control Act of 1976.
(ii) For the purpose of expediting the consideration and enactment of joint resolutions
under this paragraph, a motion to proceed to the consideration of any such joint resolution
after it has been reported by the appropriate committee shall be treated as highly privileged
in the House of Representatives.
(3) (A) Subject to paragraph (5), the President may not give his consent to the transfer of any
major defense equipment valued (in terms of its original acquisition cost) at $14,000,000 or
more, or of any defense article or defense service valued (in terms of its original acquisition
cost) at $50,000,000 or more, the export of which has been licensed or approved under section
2778 of this title or has been exempted from the licensing requirements of this chapter pursuant
to a treaty referred to in section 2778 (j)(1)(C)(i) of this title where such treaty does not
authorize the transfer without prior United States Government approval, unless before giving
such consent the President submits to the Speaker of the House of Representatives and the
Chairman of the Committee on Foreign Relations of the Senate a certification containing the
information specified in subparagraphs (A) through (E) of paragraph (1). Such certification
shall be submitted—
(i) at least 15 calendar days before such consent is given in the case of a transfer to a
country which is a member of the North Atlantic Treaty Organization or Australia, Japan,
the Republic of Korea, Israel, or New Zealand; and
(ii) at least 30 calendar days before such consent is given in the case of a transfer to any
other country,
unless the President states in his certification that an emergency exists which requires that
consent to the proposed transfer become effective immediately in the national security
interests of the United States. If the President states in his certification that such an emergency
exists (thus waiving the requirements of clause (i) or (ii), as the case may be, and of
subparagraph (B)) the President shall set forth in the certification a detailed justification for
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his determination, including a description of the emergency circumstances which necessitate
that consent to the proposed transfer become effective immediately and a discussion of the
national security interests involved.
(B) Consent to a transfer subject to subparagraph (A) shall become effective after the end of
the 15-day or 30-day period specified in subparagraph (A)(i) or (ii), as the case may be, only
if the Congress does not enact, within that period, a joint resolution prohibiting the proposed
transfer.
(C) (i) Any joint resolution under this paragraph shall be considered in the Senate in
accordance with the provisions of section 601(b) of the International Security Assistance
and Arms Export Control Act of 1976.
(ii) For the purpose of expediting the consideration and enactment of joint resolutions
under this paragraph, a motion to proceed to the consideration of any such joint resolution
after it has been reported by the appropriate committee shall be treated as highly privileged
in the House of Representatives.
(4) This subsection shall not apply—
(A) to transfers of maintenance, repair, or overhaul defense services, or of the repair parts
or other defense articles used in furnishing such services, if the transfer will not result in any
increase, relative to the original specifications, in the military capability of the defense articles
and services to be maintained, repaired, or overhauled;
(B) to temporary transfers of defense articles for the sole purpose of receiving maintenance,
repair, or overhaul; or
(C) to arrangements among members of the North Atlantic Treaty Organization or between
the North Atlantic Treaty Organization and any of its member countries—
(i) for cooperative cross servicing, or
(ii) for lead-nation procurement if the certification transmitted to the Congress pursuant
to section 2776 (b) of this title with regard to such lead-nation procurement identified the
transferees on whose behalf the lead-nation procurement was proposed.
(5) In the case of a transfer to a member country of the North Atlantic Treaty Organization (NATO)
or Australia, Japan, the Republic of Korea, Israel, or New Zealand that does not authorize a new
sales territory that includes any country other than such countries, the limitations on consent of the
President set forth in paragraphs (1) and (3)(A) shall apply only if the transfer is—
(A) a transfer of major defense equipment valued (in terms of its original acquisition cost)
at $25,000,000 or more; or
(B) a transfer of defense articles or defense services valued (in terms of its original acquisition
cost) at $100,000,000 or more).1
(e) Transfers without consent of President; report to Congress
If the President receives any information that a transfer of any defense article, or related training or other
defense service, has been made without his consent as required under this section or under section 2314
of this title, he shall report such information immediately to the Speaker of the House of Representatives
and the Committee on Foreign Relations of the Senate.
(f) Sales and leases to countries in breach of nuclear nonproliferation agreements and treaties
No sales or leases shall be made to any country that the President has determined is in material breach
of its binding commitments to the United States under international treaties or agreements concerning
the nonproliferation of nuclear explosive devices (as defined in section 6305 (4) of this title) and
unsafeguarded special nuclear material (as defined in section 6305 (8) of this title).
(g) Unauthorized use of articles
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Any agreement for the sale or lease of any article on the United States Munitions List entered into by
the United States Government after November 29, 1999, shall state that the United States Government
retains the right to verify credible reports that such article has been used for a purpose not authorized
under section 2754 of this title or, if such agreement provides that such article may only be used for
purposes more limited than those authorized under section 2754 of this title, for a purpose not authorized
under such agreement.
Footnotes
1 So in original. The closing parenthesis probably should not appear.
(Pub. L. 90–629, ch. 1, § 3, Oct. 22, 1968, 82 Stat. 1322; Pub. L. 91–672, § 1, Jan. 12, 1971, 84 Stat.
2053; Pub. L. 93–189, § 25(2), Dec. 17, 1973, 87 Stat. 729; Pub. L. 93–559, § 45(a)(1), Dec. 30, 1974, 88
Stat. 1813; Pub. L. 94–329, title II, §§ 203(a), 204 (a), (b)(1), title III, § 304(b), June 30, 1976, 90 Stat.
735, 736, 754, 755; Pub. L. 95–92, §§ 15–18, Aug. 4, 1977, 91 Stat. 622; Pub. L. 96–92, § 11, Oct. 29,
1979, 93 Stat. 705; Pub. L. 96–533, title I, § 101, Dec. 16, 1980, 94 Stat. 3131; Pub. L. 97–113, title I, §§
101(a), 102 (a), 109 (b)(2), Dec. 29, 1981, 95 Stat. 1519, 1520, 1526; Pub. L. 99–83, title I, § 115(b)(2),
title V, § 503(b), Aug. 8, 1985, 99 Stat. 201, 221; Pub. L. 99–145, title XI, § 1102(a)(3), (5), Nov. 8,
1985, 99 Stat. 710; Pub. L. 99–247, § 1(a), Feb. 12, 1986, 100 Stat. 9; Pub. L. 99–661, div. A, title XIII, §
1342(e), Nov. 14, 1986, 100 Stat. 3991; Pub. L. 100–461, title V, § 577, Oct. 1, 1988, 102 Stat. 2268–45;
Pub. L. 101–222, § 2(b), Dec. 12, 1989, 103 Stat. 1896; Pub. L. 103–236, title VIII, § 822(a)(1), Apr. 30,
1994, 108 Stat. 511; Pub. L. 104–164, title I, §§ 141(a), (b), 142, July 21, 1996, 110 Stat. 1430, 1431,
1433; Pub. L. 106–113, div. B, § 1000(a)(7) [div. B, title XII, § 1225], Nov. 29, 1999, 113 Stat. 1536,
1501A–499; Pub. L. 107–228, div. B, title XIV, § 1405(a)(1), Sept. 30, 2002, 116 Stat. 1456; Pub. L.
110–429, title II, § 203(b)(1), (2), Oct. 15, 2008, 122 Stat. 4845; Pub. L. 111–266, title I, §§ 102(a), 104
(a), title III, § 301, Oct. 8, 2010, 124 Stat. 2797, 2799, 2804.)
References in Text
This chapter, referred to in subsecs. (a) to (d), was in the original “this Act”, meaning Pub. L. 90–629, Oct. 22, 1968,
82 Stat. 1321, which is classified principally to this chapter. For complete classification of this Act to the Code, see
Short Title note set out under section 2751 of this title and Tables.
Section 601(b) of the International Security Assistance and Arms Export Control Act of 1976, referred to in subsec.
(d)(2)(D)(i), (3)(C)(i), is section 601(b) of Pub. L. 94–329, June 30, 1976, 90 Stat. 729, which made provision for
expedited procedures in the Senate, and is not classified to the Code.
Amendments
2010—Subsec. (b). Pub. L. 111–266, § 102(a), inserted “a treaty referred to in section 2778 (j)(1)(C)(i) of this
title permits such transfer without prior consent of the President, or if” after “under this chapter if” in introductory
provisions.
Subsec. (b)(2). Pub. L. 111–266, § 301(2), inserted “the Government of Israel,” before “or the Government of New
Zealand”.
Subsec. (d)(2)(B). Pub. L. 111–266, § 301(1), inserted “Israel,” before “or New Zealand”.
Subsec. (d)(3)(A). Pub. L. 111–266, § 104(a), inserted in introductory provisions “or has been exempted from the
licensing requirements of this chapter pursuant to a treaty referred to in section 2778 (j)(1)(C)(i) of this title where
such treaty does not authorize the transfer without prior United States Government approval” after “approved under
section 2778 of this title”.
Subsec. (d)(3)(A)(i). Pub. L. 111–266, § 301(1), inserted “Israel,” before “or New Zealand”.
Subsec. (d)(5). Pub. L. 111–266, § 301(1), inserted “Israel,” before “or New Zealand” in introductory provisions.
2008—Subsec. (b)(2). Pub. L. 110–429, § 203(b)(2), inserted “the Government of the Republic of Korea,” before “or
the Government of New Zealand”.
Subsec. (d)(2)(B), (3)(A)(i), (5). Pub. L. 110–429, § 203(b)(1), inserted “the Republic of Korea,” before “or New
Zealand”.
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2002—Subsec. (d)(1), (3)(A). Pub. L. 107–228, § 1405(a)(1)(A), substituted “Subject to paragraph (5), the President
may not” for “The President may not” in introductory provisions.
Subsec. (d)(5). Pub. L. 107–228, § 1405(a)(1)(B), added par. (5).
1999—Subsec. (g). Pub. L. 106–113 added subsec. (g).
1996—Subsec. (b). Pub. L. 104–164, § 142, added subsec. (b).
Subsec. (d)(2)(A). Pub. L. 104–164, § 141(a)(1), struck out “, as provided for in sections 2776 (b)(2) and 2776 (b)(3)
of this title” after “joint resolution”.
Subsec. (d)(2)(B). Pub. L. 104–164, § 141(a)(2), substituted “joint resolution prohibiting the proposed transfer” for
“law prohibiting the proposed transfer”.
Subsec. (d)(2)(C), (D). Pub. L. 104–164, § 141(a)(3), added subpars. (C) and (D).
Subsec. (d)(3)(A). Pub. L. 104–164, § 141(b), designated existing provisions as subpar. (A), struck out “at least 30
calendar days” before “before giving such consent the President”, substituted “a certification” for “a report” after
“Committee on Foreign Relations of the Senate”, and substituted “Such certification shall be submitted—
“(i) at least 15 calendar days before such consent is given in the case of a transfer to a country which is a member of
the North Atlantic Treaty Organization or Australia, Japan, or New Zealand; and
“(ii) at least 30 calendar days before such consent is given in the case of a transfer to any other country,
unless the President states in his certification that an emergency exists which requires that consent to the proposed
transfer become effective immediately in the national security interests of the United States. If the President states in
his certification that such an emergency exists (thus waiving the requirements of clause (i) or (ii), as the case may be,
and of subparagraph (B)) the President shall set forth in the certification a detailed justification for his determination,
including a description of the emergency circumstances which necessitate that consent to the proposed transfer become
effective immediately and a discussion of the national security interests involved.” for “Such consent shall become
effective then only if the Congress does not enact, within a 30-day period, a joint resolution, as provided for in sections
2776 (c)(2) and 2776 (c)(3) of this title prohibiting the proposed transfer.”
Subsec. (d)(3)(B), (C). Pub. L. 104–164, § 141(b)(3), added subpars. (B) and (C).
1994—Subsec. (f). Pub. L. 103–236 added subsec. (f).
1989—Subsec. (f). Pub. L. 101–222 struck out subsec. (f) which directed termination of sales under this chapter to
countries granting sanctuary to international terrorists. See section 2780 of this title.
1988—Subsec. (d)(2)(A). Pub. L. 100–461, § 577(1), substituted “joint resolution, as provided for in sections 2776
(b)(2) and 2776 (b)(3) of this title” for “law”.
Subsec. (d)(3). Pub. L. 100–461, § 577(2), inserted at end “Such consent shall become effective then only if the
Congress does not enact, within a 30-day period, a joint resolution, as provided for in sections 2776 (c)(2) and 2776
(c)(3) of this title prohibiting the proposed transfer.”
1986—Subsec. (a). Pub. L. 99–661 repealed section 1102(a)(3) of Pub. L. 99–145 and the amendments made by that
section, and provided that this section shall apply as if that section had never been enacted. See 1985 Amendments
note below.
Subsec. (d)(2)(A). Pub. L. 99–247, § 1(a)(1), substituted “enact, within such 30-day period, a law prohibiting” for
“adopt, within such 30-day period, a concurrent resolution disapproving”.
Subsec. (d)(2)(B). Pub. L. 99–247, § 1(a)(2), substituted “enact, within such fifteen-day period, a law prohibiting” for
“adopt, within such fifteen-day period, a concurrent resolution disapproving”.
1985—Subsec. (a). Pub. L. 99–83, § 115(b)(2), in introductory text and in par. (2) inserted provisions relating to
cooperative projects, and in par. (3) inserted “or service” after “such article” in two places.
Pub. L. 99–145, § 1102(a)(3), which enacted amendments similar to those provided in Pub. L. 99–83, § 115(b)(2), was
repealed. See 1986 Amendments note above and former section 1105(a)(5) of Pub. L. 99–145 set out as a Repeals;
Effective Date note under section 2752 of this title.
Subsec. (f). Pub. L. 99–83, § 503(b), struck out “, credits, and guaranties” and “, credits, or guaranties” wherever
appearing in pars. (1) and (2).
1981—Subsec. (a). Pub. L. 97–113, § 109(b)(2), substituted in introductory text “sold or leased” for “sold”, and in
par. (4) “purchase or lease” for “purchase”.
Subsec. (d)(1). Pub. L. 97–113, § 101(a)(1), substituted in introductory text “, or under section 2314 (a)(1) or 2314
(a)(4) of this title, to a transfer of any major defense equipment valued (in terms of its original acquisition cost) at
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$14,000,000 or more, or any defense article or related training or other defense service valued (in terms of its original
acquisition cost) at $50,000,000 or more,” for “to a transfer of a defense article, or related training or other defense
service, sold under this chapter and may not give his consent to such a transfer under section 2314 (a)(1) or (a)(4) of
this title”, in subpar. (B) “a description of the article or service proposed to be transferred, including its acquisition
cost” for “a description of the defense article or related training or other defense service proposed to be transferred,
including the original acquisition cost of such defense article or related training or other defense service”, in subpar.
(C) “article or service” for “defense article or related training or other defense service”, and in provision following
subpar. (E) “articles or services” for “defense articles, or related training or other defense services,”.
Subsec. (d)(2). Pub. L. 97–113, § 102(a), designated existing provisions as subpar. (A), substituted “Except as provided
in subparagraph (B), unless” for “Unless”, and added subpar. (B).
Subsec. (d)(3). Pub. L. 97–113, § 101(a)(2), substituted “transfer of any major defense equipment valued (in terms of
its original acquisition cost) at $14,000,000 or more, or of any defense article or defense service valued (in terms of
its original acquisition cost) at $50,000,000 or more” for “transfer to a third country of a defense article or a defense
service valued (in terms of its original acquisition costs) at $25,000,000 or more, or of major defense equipment valued
(in terms of its original acquisition costs) at $7,000,000 or more”.
Subsec. (d)(4). Pub. L. 97–113, § 101(a)(3), struck out subpar. (D), which provided that subsec. (d) of this section
not apply to transfers to the North Atlantic Treaty Organization, any member country of such organization, Japan,
Australia, or New Zealand, of any major defense equipment valued (in terms of its original acquisition cost) at less
than $7,000,000 or of any defense article or related training or other defense service valued (in terms of its original
acquisition cost) at less than $25,000,000.
1980—Subsec. (d)(1). Pub. L. 96–533, § 101(a)(2)(A), substituted “pursuant to this paragraph” for “pursuant to this
subsection”.
Subsec. (d)(2). Pub. L. 96–533, § 101(a)(2)(B), substituted “paragraph (1) of this subsection” for “this subsection”.
Subsec. (d)(3). Pub. L. 96–533, § 101(a)(1)(B), added par. (3). Former par. (3) redesignated (4).
Subsec. (d)(4). Pub. L. 96–533, § 101(a)(1)(A), (b), redesignated former par. (3) as (4) and, in par (4) as so redesignated,
added subpar. (D).
1979—Subsec. (d)(3)(C). Pub. L. 96–92 made subsec. (d) of this section inapplicable to arrangements between the
North Atlantic Treaty Organization and any of its member countries, incorporated existing text in provisions designated
cl. (i) and added cl. (ii).
1977—Subsec. (b). Pub. L. 95–92, § 15, struck out subsec. (b) which related to prohibitions on sales, etc., to countries
seizing or fining American fishing vessels for fishing in waters more than twelve miles from their coastlines.
Subsec. (d). Pub. L. 95–92, §§ 16, 17, redesignated existing provisions as par. (1), struck out “, 30 days prior to giving
such consent,” before “the President submits”, redesignated pars. (1) to (5) as subpars. (A) to (E), respectively, and
added pars. (2) and (3).
Subsec. (f). Pub. L. 95–92, § 18, added subsec. (f).
1976—Subsec. (a). Pub. L. 94–329, §§ 203(a), 204 (b)(1), inserted in par. (2) “or related training or other defense
service” after “article” wherever appearing and struck out provisions following par. (4) relating to the President’s
notification of his consent to transfer war implements to another country, in writing, to the Speaker of the House of
Representatives and the Committee on Foreign Relations of the Senate indicating his justification for the transfer and
the particular war implement transferred.
Subsec. (c). Pub. L. 94–329, § 304(b)(1), provided that the President, by so stating in writing to Congress, or Congress,
by joint resolution, terminate credits, guaranties or sales upon determining a violation, permitted cash sales and
deliveries pursuant to previous sales to be made if the President certifies in writing to Congress that termination
thereof would be adverse to national security unless Congress adopts or has adopted a joint resolution determining
such eligibility, and specified conditions for reinstatement of eligibility.
Subsec. (d). Pub. L. 94–329, §§ 204(a), 304 (b)(2), added subsec. (d). Former subsec. (d), which related to conditions
for reinstatement after a determination of ineligibility, was repealed and is now covered by subsec. (c).
Subsec. (e). Pub. L. 94–329, §§ 204(a), 304 (b)(2), added subsec. (e).
1974—Subsec. (d). Pub. L. 93–559 struck out first sentence provision respecting furnishing of sophisticated weapons
to countries in violation of agreements pursuant to subsec. (a)(2) of this section, section 2314 (a) of this title, or other
similar provisions and substituted “in accordance with subsection (c) of this section” for “in accordance with this
subsection”.
1973—Subsec. (a). Pub. L. 93–189, § 25(2)(A)–(C), in par. (2) inserted requirement not to use or permit the use of
such articles for purposes other than those for which furnished, redesignated former par. (3) as (4), added a new par.
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(3), and following par. (4), as so redesignated, inserted provisions relating to Presidential consideration of requests
prior to consent under par. (2).
Subsecs. (c), (d). Pub. L. 93–189, § 25(2)(D), added subsecs. (c) and (d).
1971—Subsec. (b). Pub. L. 91–672 extended the retaliatory measures against countries seizing, taking custody or fining
American vessels for fishing outside of twelve miles of their coast, to sales, credits, guaranties, and laid down a period
of one year as the extent of such prohibition, and added assurances of future restraint received from such countries
as an additional ground for waiver, and provided exception that the prohibition will not apply in cases governed by
international agreements to which the United States is a party.
Effective Date of 1996 Amendment
Section 141(f) of Pub. L. 104–164 provided that: “The amendments made by this section [amending this section and
sections 2776, 2796a, and 2796b of this title] apply with respect to certifications required to be submitted on or after
the date of the enactment of this Act [July 21, 1996].”
Effective Date of 1994 Amendment
Amendment by Pub. L. 103–236 effective 60 days after Apr. 30, 1994, see section 831 of Pub. L. 103–236, set out
as an Effective Date note under section 6301 of this title.
Effective Date of 1985 Amendment
Amendment by Pub. L. 99–83 effective Oct. 1, 1985, see section 1301 of Pub. L. 99–83, set out as a note under section
2151–1 of this title.
Effective Date of 1976 Amendment
Section 203(a) of Pub. L. 94–329 provided that the amendment made by that section is effective July 1, 1976.
Delegation of Functions
Functions of President under this section, except subsecs. (a)(1), (b), (c)(3), (4), and (f), delegated to Secretary of
State, with Secretary authorized to make certain findings under subsec. (a)(1) in implementing functions delegated
under subsecs. (a) and (d), by section 1(a) of Ex. Ord. No. 11958, Jan. 18, 1977, 42 F.R. 4311, as amended, set out
as a note under section 2751 of this title.
Security Cooperation With the Republic of Korea
Pub. L. 110–429, title II, § 203(a), Oct. 15, 2008, 122 Stat. 4844, provided that: “Congress makes the following
findings:
“(1) Close and continuing defense cooperation between the United States and the Republic of Korea continues to be
in the national security interest of the United States.
“(2) The Republic of Korea was designated a major non-NATO ally in 1987, the first such designation.
“(3) The Republic of Korea has been a major purchaser of United States defense articles and services through the
Foreign Military Sales (FMS) program, totaling $6,900,000,000 in deliveries over the last 10 years.
“(4) Purchases of United States defense articles, services, and major defense equipment facilitate and increase the
interoperability of Republic of Korea military forces with the United States Armed Forces.
“(5) Congress has previously enacted important, special defense cooperation arrangements for the Republic of Korea,
as in the Act entitled ‘An Act to authorize the transfer of items in the War Reserves Stockpile for Allies, Korea’,
approved December 30, 2005 (Public Law 109–159; 119 Stat. 2955), which authorized the President, notwithstanding
section 514 of the Foreign Assistance Act of 1961 (22 U.S.C. 2321h), to transfer to the Republic of Korea certain
defense items to be included in a war reserve stockpile for that country.
“(6) Enhanced support for defense cooperation with the Republic of Korea is important to the national security of the
United States, including through creation of a status in law for the Republic of Korea similar to the countries in the
North Atlantic Treaty Organization, Japan, Australia, and New Zealand, with respect to consideration by Congress of
foreign military sales to the Republic of Korea.”
Reporting Requirements
Pub. L. 105–277, div. A, § 101(d) [title V, § 594], Oct. 21, 1998, 112 Stat. 2681–150, 2681–215, as amended by Pub.
L. 106–31, title V, § 5002(c)–(e), May 21, 1999, 113 Stat. 109, provided that:
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“(a) Notification.—No less than 15 days prior to the export to any country identified pursuant to subparagraph (c) of any
lethal defense article or service in the amount of $14,000,000 or less, the President shall provide a detailed notification
to the Committees on Appropriations and Foreign Relations of the Senate and the Committees on Appropriations and
International Relations [now Committee on Foreign Affairs] of the House of Representatives.
“(b) Content of Notification.—A detailed notification transmitted pursuant to subsection (a) shall include the same
type and quantity of information required of a notification submitted pursuant to section 36(b) of the Arms Export
Control Act (22 U.S.C. 2776 (b)).
“(c) Countries Defined.—This section shall apply to any country that is—
“(1) identified in section 520 of this Act [Pub. L. 105–277, 112 Stat. 2681–176], or a comparable provision in a
subsequent appropriations Act; or
“(2) currently ineligible, in whole or in part, under an annual appropriations Act to receive funds for International
Military Education and Training or under the Foreign Military Financing Program, excluding high-income countries
as defined pursuant to section 546(b) of the Foreign Assistance Act of 1961 [22 U.S.C. 2347e (b)].
“(d) Exclusions.—Information reportable under title V of the National Security Act of 1947 [50 U.S.C. 413 et seq.]
is excluded from the requirements of this section.”
[For delegation of functions of President under section 101 (d) [title V, § 594] of div. A of Pub. L. 105–277, set out
above, see Ex. Ord. No. 12163, Sept. 29, 1979, 44 F.R. 56673, as amended, set out as a note under section 2381 of
this title.]
Eligibility of Baltic States for Nonlethal Defense Articles
Pub. L. 102–511, title IX, § 906, Oct. 24, 1992, 106 Stat. 3356, provided that:
“(a) Eligibility.—Estonia, Latvia, and Lithuania shall each be eligible—
“(1) to purchase, or to receive financing for the purchase of, nonlethal defense articles—
“(A) under the Arms Export Control Act (22 U.S.C. 2751 et seq.), without regard to section 3(a)(1) of that Act [22
U.S.C. 2753 (a)(1)], or
“(B) under section 503 of the Foreign Assistance Act of 1961 (22 U.S.C. 2311), without regard to the requirement in
subsection (a) of that section for a Presidential finding; and
“(2) to receive nonlethal excess defense articles transferred under section 519 of the Foreign Assistance Act of 1961
(22 U.S.C. 2321m), without regard to the restrictions in subsection (a) of that section.
“(b) Definitions.—As used in this section—
“(1) the term ‘defense article’ has the same meaning given to that term in section 47(3) of the Arms Export Control
Act (22 U.S.C. 2794 (3)); and
“(2) the term ‘excess defense article’ has the same meaning given to that term in section 644(g) of the Foreign
Assistance Act of 1961 (22 U.S.C. 2403 (g)).”
.....................................
§ 2754. Purposes for which military sales or leases by the United States are authorized;
report to Congress
Defense articles and defense services shall be sold or leased by the United States Government
under this chapter to friendly countries solely for internal security, for legitimate self-defense,
for preventing or hindering the proliferation of weapons of mass destruction and of the means of
delivering such weapons, to permit the recipient country to participate in regional or collective
arrangements or measures consistent with the Charter of the United Nations, or otherwise to permit
the recipient country to participate in collective measures requested by the United Nations for the
purpose of maintaining or restoring international peace and security, or for the purpose of enabling
foreign military forces in less developed friendly countries to construct public works and to engage
in other activities helpful to the economic and social development of such friendly countries. It is
the sense of the Congress that such foreign military forces should not be maintained or established
solely for civic action activities and that such civic action activities not significantly detract from
the capability of the military forces to perform their military missions and be coordinated with
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TITLE 22 - Section 2755 - Discrimination prohibited if based on race, religion, nationa...
NB: This unofficial compilation of the U.S. Code is current as of Jan. 4, 2012 (see http://www.law.cornell.edu/uscode/uscprint.html).
and form part of the total economic and social development effort: Provided, That none of the
funds contained in this authorization shall be used to guarantee, or extend credit, or participate
in an extension of credit in connection with any sale of sophisticated weapons systems, such as
missile systems and jet aircraft for military purposes, to any underdeveloped country other than
Greece, Turkey, Iran, Israel, the Republic of China, the Philippines and Korea unless the President
determines that such financing is important to the national security of the United States and reports
within thirty days each such determination to the Congress.
(Pub. L. 90–629, ch. 1, § 4, Oct. 22, 1968, 82 Stat. 1322; Pub. L. 97–113, title I, § 109(b)(3), Dec. 29,
1981, 95 Stat. 1526; Pub. L. 107–228, div. B, title XII, § 1202(a), Sept. 30, 2002, 116 Stat. 1427.)
References in Text
This chapter, referred to in text, was in the original “this Act”, meaning Pub. L. 90–629, Oct. 22, 1968, 82 Stat. 1321,
which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note
set out under section 2751 of this title and Tables.
Amendments
2002—Pub. L. 107–228 inserted “for preventing or hindering the proliferation of weapons of mass destruction and of
the means of delivering such weapons,” after “legitimate self-defense,” in first sentence.
1981—Pub. L. 97–113 substituted “sold or leased” for “sold” in first sentence.
.....................................
§ 2755. Discrimination prohibited if based on race, religion, national origin, or sex
(a) Congressional declaration of policy
It is the policy of the United States that no sales should be made, and no credits (including participations
in credits) or guaranties extended to or for any foreign country, the laws, regulations, official policies,
or governmental practices of which prevent any United States person (as defined in section 7701 (a)(30)
of title 26) from participating in the furnishing of defense articles or defense services under this chapter
on the basis of race, religion, national origin, or sex.
(b) Employment of personnel; required contractual provision
(1) No agency performing functions under this chapter shall, in employing or assigning personnel
to participate in the performance of any such function, whether in the United States or abroad, take
into account the exclusionary policies or practices of any foreign government where such policies
or practices are based upon race, religion, national origin, or sex.
(2) Each contract entered into by any such agency for the performance of any function under this
chapter shall contain a provision to the effect that no person, partnership, corporation, or other
entity performing functions pursuant to such contract, shall, in employing or assigning personnel
to participate in the performance of any such function, whether in the United States or abroad, take
into account the exclusionary policies or practices of any foreign government where such policies
or practices are based upon race, religion, national origin, or sex.
(c) Report by President; contents
The President shall promptly transmit reports to the Speaker of the House of Representatives and the
chairman of the Committee on Foreign Relations of the Senate concerning any instance in which any
United States person (as defined in section 7701 (a)(30) of title 26) is prevented by a foreign government
on the basis of race, religion, national origin, or sex, from participating in the performance of any sale
or licensed transaction under this chapter or any import or export under a treaty referred to in section
2778 (j)(1)(C)(i) of this title. Such reports shall include
(1) a description of the facts and circumstances of any such discrimination,
(2) the response thereto on the part of the United States or any agency or employee thereof, and
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(3) the result of such response, if any.
(d) Congressional request for information from President; information required; 60 day period;
failure to supply information; termination or restriction of sale
(1) Upon the request of the Committee on Foreign Relations of the Senate or the Committee on
Foreign Affairs of the House of Representatives, the President shall, within 60 days after receipt
of such request, transmit to both such committees a statement, prepared with the assistance of the
Secretary of State, with respect to the country designated in such request, setting forth—
(A) all the available information about the exclusionary policies or practices of the
government of such country when such policies or practices are based upon race, religion,
national origin or sex and prevent any such person from participating in the performance of
any sale or licensed transaction under this chapter;
(B) the response of the United States thereto and the results of such response;
(C) whether, in the opinion of the President, notwithstanding any such policies or practices—
(i) extraordinary circumstances exist which necessitate a continuation of such sale or
licensed transaction, and, if so, a description of such circumstances and the extent to
which such sale or licensed transaction should be continued (subject to such conditions
as Congress may impose under this section), and
(ii) on all the facts it is in the national interest of the United States to continue such sale
or licensed transaction; and
(D) such other information as such committee may request.
(2) In the event a statement with respect to a sale or licensed transaction is requested pursuant
to paragraph (1) of this subsection but is not transmitted in accordance therewith within 60 days
after receipt of such request, such sale or licensed transaction shall be suspended unless and until
such statement is transmitted.
(3) (A) In the event a statement with respect to a sale or licensed transaction is transmitted
under paragraph (1) of this subsection, the Congress may at any time thereafter adopt a joint
resolution terminating or restricting such sale or licensed transaction.
(B) Any such resolution shall be considered in the Senate in accordance with the provisions of
section 601(b) of the International Security Assistance and Arms Export Control Act of 1976.
(C) The term “certification”, as used in section 601 of such Act, means, for the purposes of
this paragraph, a statement transmitted under paragraph (1) of this subsection.
(Pub. L. 90–629, ch. 1, § 5, as added Pub. L. 94–329, title III, § 302(b), June 30, 1976, 90 Stat. 752;
amended Pub. L. 95–105, title I, § 109(a)(5), Aug. 17, 1977, 91 Stat. 846; Pub. L. 99–514, § 2, Oct. 22,
1986, 100 Stat. 2095; Pub. L. 103–236, title I, § 162(f), Apr. 30, 1994, 108 Stat. 405; Pub. L. 103–437, §
9(a)(7), Nov. 2, 1994, 108 Stat. 4588; Pub. L. 111–266, title I, § 104(b), Oct. 8, 2010, 124 Stat. 2799.)
References in Text
This chapter, referred to in text, was in the original “this Act”, meaning Pub. L. 90–629, Oct. 22, 1968, 82 Stat. 1321,
as amended, which is classified principally to this chapter. For complete classification of this Act to the Code, see
Short Title note set out under section 2751 of this title and Tables.
Section 601(b) of the International Security Assistance and Arms Export Control Act of 1976, referred to in subsec.
(d)(3)(B), (C), is section 601(b) of Pub. L. 94–329, June 30, 1976, 90 Stat. 729, which made provision for expedited
procedures in the Senate, and was not classified to the Code.
Amendments
2010—Subsec. (c). Pub. L. 111–266 inserted “or any import or export under a treaty referred to in section 2778
(j)(1)(C)(i) of this title” after “under this chapter”.
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NB: This unofficial compilation of the U.S. Code is current as of Jan. 4, 2012 (see http://www.law.cornell.edu/uscode/uscprint.html).
1994—Subsec. (d)(1). Pub. L. 103–437 substituted “Foreign Affairs” for “International Relations” in introductory
provisions.
Pub. L. 103–236 substituted “Secretary of State” for “Assistant Secretary of State for Human Rights and Humanitarian
Affairs” in introductory provisions.
1986—Subsecs. (a), (c). Pub. L. 99–514 substituted “Internal Revenue Code of 1986” for “Internal Revenue Code of
1954”, which for purposes of codification was translated as “title 26” thus requiring no change in text.
1977—Subsec. (d)(1). Pub. L. 95–105 substituted “Assistant Secretary of State” for “Coordinator” in introductory
provisions.
Effective Date of 1994 Amendment
Amendment by Pub. L. 103–236 applicable with respect to officials, offices, and bureaus of Department of State when
executive orders, regulations, or departmental directives implementing the amendments by sections 161 and 162 of
Pub. L. 103–236 become effective, or 90 days after Apr. 30, 1994, whichever comes earlier, see section 161(b) of Pub.
L. 103–236, as amended, set out as a note under section 2651a of this title.
Delegation of Functions
Functions of President under this section delegated to Secretary of State by section 1(b) of Ex. Ord. No. 11958, Jan.
18, 1977, 42 F.R. 4311, as amended, set out as a note under section 2751 of this title.
.....................................
§ 2756. Foreign intimidation and harassment of individuals in United States
No letters of offer may be issued, no credits or guarantees may be extended, and no export licenses
may be issued under this chapter with respect to any country determined by the President to be
engaged in a consistent pattern of acts of intimidation or harassment directed against individuals in
the United States. The President shall report any such determination promptly to the Speaker of the
House of Representatives and to the chairman of the Committee on Foreign Relations of the Senate.
(Pub. L. 90–629, ch. 1, § 6, as added Pub. L. 97–113, title I, § 115, Dec. 29, 1981, 95 Stat. 1528.)
References in Text
This chapter, referred to in text, was in the original “this Act”, meaning Pub. L. 90–629, Oct. 22, 1968, 82 Stat. 1321,
which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note
set out under section 2751 of this title and Tables.
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NB: This unofficial compilation of the U.S. Code is current as of Jan. 4, 2012 (see http://www.law.cornell.edu/uscode/uscprint.html).
SUBCHAPTER II—FOREIGN MILITARY SALES AUTHORIZATIONS
.....................................
§ 2761. Sales from stocks
(a) Eligible countries or international organizations; basis of payment; valuation of certain
defense articles
(1) The President may sell defense articles and defense services from the stocks of the Department
of Defense and the Coast Guard to any eligible country or international organization if such country
or international organization agrees to pay in United States dollars—
(A) in the case of a defense article not intended to be replaced at the time such agreement is
entered into, not less than the actual value thereof;
(B) in the case of a defense article intended to be replaced at the time such agreement
is entered into, the estimated cost of replacement of such article, including the contract or
production costs less any depreciation in the value of such article; or
(C) in the case of the sale of a defense service, the full cost to the United States Government
of furnishing such service, except that in the case of training sold to a purchaser who is
concurrently receiving assistance under chapter 5 of part II of the Foreign Assistance Act of
1961 [22 U.S.C. 2347 et seq.] or to any high-income foreign country (as described in that
chapter), only those additional costs that are incurred by the United States Government in
furnishing such assistance.
(2) For purposes of subparagraph (A) of paragraph (1), the actual value of a naval vessel of 3,000
tons or less and 20 years or more of age shall be considered to be not less than the greater of the
scrap value or fair value (including conversion costs) of such vessel, as determined by the Secretary
of Defense.
(b) Time of payment
Except as provided by subsection (d) of this section, payment shall be made in advance or, if the
President determines it to be in the national interest, upon delivery of the defense article or rendering
of the defense service.
(c) Personnel performing defense services sold as prohibited from performing combat activities
(1) Personnel performing defense services sold under this chapter may not perform any duties of
a combatant nature, including any duties related to training and advising that may engage United
States personnel in combat activities, outside the United States in connection with the performance
of those defense services.
(2) Within forty-eight hours of the existence of, or a change in status of significant hostilities or
terrorist acts or a series of such acts, which may endanger American lives or property, involving a
country in which United States personnel are performing defense services pursuant to this chapter
or the Foreign Assistance Act of 1961 [22 U.S.C. 2151 et seq.], the President shall submit to the
Speaker of the House of Representatives and to the President pro tempore of the Senate a report,
in writing, classified if necessary, setting forth—
(A) the identity of such country;
(B) a description of such hostilities or terrorist acts; and
(C) the number of members of the United States Armed Forces and the number of United
States civilian personnel that may be endangered by such hostilities or terrorist acts.
(d) Billings; interest after due date, rates of interest and extension of due date
If the President determines it to be in the national interest pursuant to subsection (b) of this section,
billings for sales made under letters of offer issued under this section after June 30, 1976, may be dated
and issued upon delivery of the defense article or rendering of the defense service and shall be due
and payable upon receipt thereof by the purchasing country or international organization. Interest shall
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be charged on any net amount due and payable which is not paid within sixty days after the date of
such billing. The rate of interest charged shall be a rate not less than a rate determined by the Secretary
of the Treasury taking into consideration the current average market yield on outstanding short-term
obligations of the United States as of the last day of the month preceding the billing and shall be
computed from the date of billing. The President may extend such sixty-day period to one hundred
and twenty days if he determines that emergency requirements of the purchaser for acquisition of such
defense articles or defense services exceed the ready availability to the purchaser of funds sufficient
to pay the United States in full for them within such sixty-day period and submits that determination
to the Congress together with a special emergency request for the authorization and appropriation of
additional funds to finance such purchases under this chapter.
(e) Charges; reduction or waiver
(1) After September 30, 1976, letters of offer for the sale of defense articles or for the sale of
defense services that are issued pursuant to this section or pursuant to section 2762 of this title
shall include appropriate charges for—
(A) administrative services, calculated on an average percentage basis to recover the full
estimated costs (excluding a pro rata share of fixed base operation costs) of administration of
sales made under this chapter to all purchasers of such articles and services as specified in
section 2792 (b) of this title and section 2792 (c) of this title;
(B) a proportionate amount of any nonrecurring costs of research, development, and
production of major defense equipment (except for equipment wholly paid for either from
funds transferred under section 503(a)(3) of the Foreign Assistance Act of 1961 [22 U.S.C.
2311 (a)(3)] or from funds made available on a nonrepayable basis under section 2763 of this
title); and
(C) the recovery of ordinary inventory losses associated with the sale from stock of defense
articles that are being stored at the expense of the purchaser of such articles.
(2) (A) The President may reduce or waive the charge or charges which would otherwise
be considered appropriate under paragraph (1)(B) for particular sales that would, if
made, significantly advance United States Government interests in North Atlantic Treaty
Organization standardization, standardization with the Armed Forces of Japan, Australia,
the Republic of Korea, Israel, or New Zealand in furtherance of the mutual defense treaties
between the United States and those countries, or foreign procurement in the United States
under coproduction arrangements.
(B) The President may waive the charge or charges which would otherwise be considered
appropriate under paragraph (1)(B) for a particular sale if the President determines that—
(i) imposition of the charge or charges likely would result in the loss of the sale; or
(ii) in the case of a sale of major defense equipment that is also being procured for
the use of the Armed Forces, the waiver of the charge or charges would (through a
resulting increase in the total quantity of the equipment purchased from the source of the
equipment that causes a reduction in the unit cost of the equipment) result in a savings to
the United States on the cost of the equipment procured for the use of the Armed Forces
that substantially offsets the revenue foregone by reason of the waiver of the charge or
charges.
(C) The President may waive, for particular sales of major defense equipment, any increase in
a charge or charges previously considered appropriate under paragraph (1)(B) if the increase
results from a correction of an estimate (reasonable when made) of the production quantity
base that was used for calculating the charge or charges for purposes of such paragraph.
(3) (A) The President may waive the charges for administrative services that would otherwise
be required by paragraph (1)(A) in connection with any sale to the Maintenance and Supply
Agency of the North Atlantic Treaty Organization in support of—
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(i) a weapon system partnership agreement; or
(ii) a NATO/SHAPE project.
(B) The Secretary of Defense may reimburse the fund established to carry out section 2792
(b) of this title in the amount of the charges waived under subparagraph (A) of this paragraph.
Any such reimbursement may be made from any funds available to the Department of Defense.
(C) As used in this paragraph—
(i) the term “weapon system partnership agreement” means an agreement between two
or more member countries of the Maintenance and Supply Agency of the North Atlantic
Treaty Organization that—
(I) is entered into pursuant to the terms of the charter of that organization; and
(II) is for the common logistic support of a specific weapon system common to the
participating countries; and
(ii) the term “NATO/SHAPE project” means a common-funded project supported by
allocated credits from North Atlantic Treaty Organization bodies or by host nations with
NATO Infrastructure funds.
(f) Public inspection of contracts
Any contracts entered into between the United States and a foreign country under the authority of this
section or section 2762 of this title shall be prepared in a manner which will permit them to be made
available for public inspection to the fullest extent possible consistent with the national security of the
United States.
(g) North Atlantic Treaty Organization standardization agreements, similar agreements;
reimbursement for costs; transmittal to Congress
The President may enter into North Atlantic Treaty Organization standardization agreements in carrying
out section 814 of the Act of October 7, 1975 (Public Law 94–106), and may enter into similar
agreements with countries which are major non-NATO allies, for the cooperative furnishing of training
on bilateral or multilateral basis, if the financial principles of such agreements are based on reciprocity.
Such agreements shall include reimbursement for all direct costs but may exclude reimbursement for
indirect costs, administrative surcharges, and costs of billeting of trainees (except to the extent that
members of the United States Armed Forces occupying comparable accommodations are charged for
such accommodations by the United States). Each such agreement shall be transmitted promptly to the
Speaker of the House of Representatives and the Committees on Appropriations, Armed Services, and
Foreign Relations of the Senate.
(h) Reciprocal quality assurance, inspection, contract administrative services, and contract audit
defense services; catalog data and services
(1) The President is authorized to provide (without charge) quality assurance, inspection, contract
administration services, and contract audit defense services under this section—
(A) in connection with the placement or administration of any contract or subcontract for
defense articles, defense services, or design and construction services entered into after
October 29, 1979, by, or under this chapter on behalf of, a foreign government which is a
member of the North Atlantic Treaty Organization or the Governments of Australia, New
Zealand, Japan, the Republic of Korea, or Israel, if such government provides such services
in accordance with an agreement on a reciprocal basis, without charge, to the United States
Government; or
(B) in connection with the placement or administration of any contract or subcontract for
defense articles, defense services, or design and construction services pursuant to the North
Atlantic Treaty Organization Security Investment program in accordance with an agreement
under which the foreign governments participating in such program provide such services,
without charge, in connection with similar contracts or subcontracts.
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NB: This unofficial compilation of the U.S. Code is current as of Jan. 4, 2012 (see http://www.law.cornell.edu/uscode/uscprint.html).
(2) In carrying out the objectives of this section, the President is authorized to provide cataloging
data and cataloging services, without charge, to the North Atlantic Treaty Organization, to any
member government of that Organization, or to the Governments of the Republic of Korea,
Australia, New Zealand, Japan, or Israel if that Organization, member government, or the
Governments of the Republic of Korea, Australia, New Zealand, Japan, or Israel provides such
data and services in accordance with an agreement on a reciprocal basis, without charge, to the
United States Government.
(i) Sales affecting combat readiness of Armed Forces; statement to Congress; limitation on
delivery
(1) Sales of defense articles and defense services which could have significant adverse effect
on the combat readiness of the Armed Forces of the United States shall be kept to an absolute
minimum. The President shall transmit to the Speaker of the House of Representatives and the
Committees on Armed Services and Foreign Relations of the Senate on the same day a written
statement giving a complete explanation with respect to any proposal to sell, under this section
or under authority of subchapter II–B, any defense articles or defense services if such sale could
have a significant adverse effect on the combat readiness of the Armed Forces of the United States.
Each such statement shall be unclassified except to the extent that public disclosure of any item of
information contained therein would be clearly detrimental to the security of the United States. Any
necessarily classified information shall be confined to a supplemental report. Each such statement
shall include an explanation relating to only one such proposal to sell and shall set forth—
(A) the country or international organization to which the sale is proposed to be made;
(B) the amount of the proposed sale;
(C) a description of the defense article or service proposed to be sold;
(D) a full description of the impact which the proposed sale will have on the Armed Forces
of the United States; and
(E) a justification for such proposed sale, including a certification that such sale is important
to the security of the United States.
A certification described in subparagraph (E) shall take effect on the date on which such
certification is transmitted and shall remain in effect for not to exceed one year.
(2) No delivery may be made under any sale which is required to be reported under paragraph (1)
of this subsection unless the certification required to be transmitted by paragraph 1 (E) of paragraph
(1) is in effect.
(j) Repealed. Pub. L. 104–106, div. A, title I, § 112, Feb. 10, 1996, 110 Stat. 206
(k) Effect of sales of excess defense articles on national technology and industrial base
Before entering into the sale under this chapter of defense articles that are excess to the stocks of the
Department of Defense, the President shall determine that the sale of such articles will not have an
adverse impact on the national technology and industrial base and, particularly, will not reduce the
opportunities of entities in the national technology and industrial base to sell new or used equipment
to the countries to which such articles are transferred.
(l) Repair of defense articles
(1) In general
The President may acquire a repairable defense article from a foreign country or international
organization if such defense article—
(A) previously was transferred to such country or organization under this chapter;
(B) is not an end item; and
(C) will be exchanged for a defense article of the same type that is in the stocks of the
Department of Defense.
(2) Limitation
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The President may exercise the authority provided in paragraph (1) only to the extent that the
Department of Defense—
(A) (i) has a requirement for the defense article being returned; and
(ii) has available sufficient funds authorized and appropriated for such purpose; or
(B) (i) is accepting the return of the defense article for subsequent transfer to another foreign
government or international organization pursuant to a letter of offer and acceptance
implemented in accordance with this chapter; and
(ii) has available sufficient funds provided by or on behalf of such other foreign
government or international organization pursuant to a letter of offer and acceptance
implemented in accordance with this chapter.
(3) Requirement
(A) The foreign government or international organization receiving a new or repaired defense
article in exchange for a repairable defense article pursuant to paragraph (1) shall, upon the
acceptance by the United States Government of the repairable defense article being returned,
be charged the total cost associated with the repair and replacement transaction.
(B) The total cost charged pursuant to subparagraph (A) shall be the same as that charged
the United States Armed Forces for a similar repair and replacement transaction, plus an
administrative surcharge in accordance with subsection (e)(1)(A) of this section.
(4) Relationship to certain other provisions of law
The authority of the President to accept the return of a repairable defense article as provided in
subsection (a) of this section shall not be subject to chapter 137 of title 10 or any other provision
of law relating to the conclusion of contracts.
(m) Return of defense articles
(1) In general
The President may accept the return of a defense article from a foreign country or international
organization if such defense article—
(A) previously was transferred to such country or organization under this chapter;
(B) is not significant military equipment (as defined in section 2794 (9) of this title); and
(C) is in fully functioning condition without need of repair or rehabilitation.
(2) Limitation
The President may exercise the authority provided in paragraph (1) only to the extent that the
Department of Defense—
(A) (i) has a requirement for the defense article being returned; and
(ii) has available sufficient funds authorized and appropriated for such purpose; or
(B) (i) is accepting the return of the defense article for subsequent transfer to another foreign
government or international organization pursuant to a letter of offer and acceptance
implemented in accordance with this chapter; and
(ii) has available sufficient funds provided by or on behalf of such other foreign
government or international organization pursuant to a letter of offer and acceptance
implemented in accordance with this chapter.
(3) Credit for transaction
Upon acquisition and acceptance by the United States Government of a defense article under
paragraph (1), the appropriate Foreign Military Sales account of the provider shall be credited to
reflect the transaction.
(4) Relationship to certain other provisions of law
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The authority of the President to accept the return of a defense article as provided in paragraph
(1) shall not be subject to chapter 137 of title 10 or any other provision of law relating to the
conclusion of contracts.
Footnotes
1 So in original. Probably should be “subparagraph”.
(Pub. L. 90–629, ch. 2, § 21, Oct. 22, 1968, 82 Stat. 1323; Pub. L. 94–329, title II, §§ 205, 206, June 30,
1976, 90 Stat. 736, 738; Pub. L. 95–384, § 16, Sept. 26, 1978, 92 Stat. 740; Pub. L. 96–92, § 12, Oct. 29,
1979, 93 Stat. 705; Pub. L. 96–533, title I, §§ 102, 103, 105 (b)(1), 115 (b)(2), Dec. 16, 1980, 94 Stat.
3132, 3134, 3140; Pub. L. 97–113, title I, §§ 103, 104, Dec. 29, 1981, 95 Stat. 1521; Pub. L. 97–392, §
3, Dec. 29, 1982, 96 Stat. 1963; Pub. L. 98–473, title I, § 101(1) [title III, § 301], Oct. 12, 1984, 98 Stat.
1884, 1895; Pub. L. 99–83, title I, §§ 107(a), 108–111, Aug. 8, 1985, 99 Stat. 196, 197; Pub. L. 100–202,
§ 101(e) [title V, § 580], Dec. 22, 1987, 101 Stat. 1329–131, 1329–181; Pub. L. 100–456, div. A, title
X, § 1002, Sept. 29, 1988, 102 Stat. 2037; Pub. L. 101–165, title IX, § 9104(c), Nov. 21, 1989, 103 Stat.
1152; Pub. L. 102–25, title VII, § 705(d)(1), Apr. 6, 1991, 105 Stat. 120; Pub. L. 102–484, div. A, title
I, § 114, Oct. 23, 1992, 106 Stat. 2333; Pub. L. 103–236, title VII, § 731(d), Apr. 30, 1994, 108 Stat.
503; Pub. L. 104–106, div. A, title I, § 112, div. D, title XLIII, § 4303(a), Feb. 10, 1996, 110 Stat. 206,
658; Pub. L. 104–164, title I, §§ 104(b)(1), 112 (c)(2), 147 (a)(3)(A), (b), 152 (a), (b), July 21, 1996,
110 Stat. 1426, 1428, 1435, 1438, 1439; Pub. L. 104–201, div. B, title XXVIII, § 2802(d)(2), Sept. 23,
1996, 110 Stat. 2787; Pub. L. 106–113, div. B, § 1000(a)(7) [div. B, title XII, § 1222], Nov. 29, 1999, 113
Stat. 1536, 1501A–498; Pub. L. 109–102, title V, § 534(l)(1), (2), Nov. 14, 2005, 119 Stat. 2211; Pub. L.
110–429, title II, § 203(b)(1), (3), (4), Oct. 15, 2008, 122 Stat. 4845; Pub. L. 111–266, title III, § 301(1),
Oct. 8, 2010, 124 Stat. 2804.)
References in Text
This chapter, referred to in text, was in the original “this Act”, meaning Pub. L. 90–629, Oct. 22, 1968, 82 Stat. 1321,
which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note
set out under section 2751 of this title and Tables.
The Foreign Assistance Act of 1961, referred to in subsecs. (a)(1)(C) and (c)(2), is Pub. L. 87–195, Sept. 4, 1961, 75
Stat. 424, as amended, which is classified principally to chapter 32 (§ 2151 et seq.) of this title. Chapter 5 of part II
of such Act is classified generally to part V of subchapter II (§ 2347 et seq.) of chapter 32 of this title. For complete
classification of this Act to the Code, see Short Title note set out under section 2151 of this title and Tables.
Section 814 of the act of October 7, 1975 (Public Law 94–106), referred to in subsec. (g), is not classified to the Code.
Codification
Amendment by Pub. L. 98–473 is based on section 102 of S. 2346, Ninety-eighth Congress, as introduced in the Senate
Feb. 27, 1984, which was enacted into permanent law by Pub. L. 98–473.
Amendments
2010—Subsec. (e)(2)(A). Pub. L. 111–266 inserted “Israel,” before “or New Zealand”.
2008—Subsec. (e)(2)(A). Pub. L. 110–429, § 203(b)(1), inserted “the Republic of Korea,” before “or New Zealand”.
Subsec. (h)(1)(A). Pub. L. 110–429, § 203(b)(3), inserted “the Republic of Korea,” before “or Israel”.
Subsec. (h)(2). Pub. L. 110–429, § 203(b)(4), substituted “, to any member government of that Organization, or to
the Governments of the Republic of Korea, Australia, New Zealand, Japan, or Israel if that Organization, member
government, or the Governments of the Republic of Korea, Australia, New Zealand, Japan, or Israel” for “or to any
member government of that Organization if that Organization or member government”.
2005—Subsec. (h)(1)(A). Pub. L. 109–102, § 534(l)(1), inserted “or the Governments of Australia, New Zealand,
Japan, or Israel” after “North Atlantic Treaty Organization”.
Subsec. (h)(2). Pub. L. 109–102, § 534(l)(2), which directed the substitution of “, to any member of that Organization,
or to the Governments of Australia, New Zealand, Japan, or Israel if that Organization, member government, or the
Governments of Australia, New Zealand, Japan, or Israel” for “or to any member government that Organization if that
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Organization or member government”, could not be executed because the phrase “or to any member government that
Organization if that Organization or member government” does not appear in text.
1999—Subsec. (a)(1). Pub. L. 106–113 inserted “and the Coast Guard” after “Department of Defense” in introductory
provisions.
1996—Subsec. (a)(1)(C). Pub. L. 104–164, § 112(c)(2), inserted “or to any high-income foreign country (as described
in that chapter)”.
Subsec. (e)(2). Pub. L. 104–106, § 4303(a), designated existing provisions as subpar. (A) and added subpars. (B) and
(C).
Subsec. (g). Pub. L. 104–164, § 147(a)(3)(A), (b), substituted “similar agreements with countries” for “similar
agreements with Japan, Australia, and New Zealand, and with other countries” in first sentence and struck out at end
“As used in this subsection, the term ‘major non-NATO allies’ means those countries designated as major non-NATO
allies for purposes of section 2350a (i)(3) of title 10.”
Subsec. (h)(1)(B). Pub. L. 104–201 substituted “Security Investment program” for “Infrastructure Program”.
Subsec. (j). Pub. L. 104–106, § 112, struck out heading and text of subsec. (j). Text read as follows:
“(1) Funds received from the sale of tanks under this section shall be available for the upgrading of tanks for fielding
to the Army.
“(2) Funds received from the sale of infantry fighting vehicles or armored personnel carriers under this section shall
be available for the upgrading of infantry fighting vehicles or armored personnel carriers for fielding to the Army.
“(3) Paragraphs (1) and (2) apply only to the extent provided in advance in appropriations Acts.
“(4) This subsection applies with respect to funds received from sales occurring after September 30, 1989.”
Subsec. (k). Pub. L. 104–164, § 104(b)(1), substituted “the President shall determine that the sale of such articles
will not have an adverse impact on the national technology and industrial base and, particularly, will not reduce the
opportunities of entities in the national technology and industrial base to sell new or used equipment to the countries
to which such articles are transferred.” for “the President shall first consider the effects of the sale of the articles on
the national technology and industrial base, particularly the extent, if any, to which the sale reduces the opportunities
of entities in the national technology and industrial base to sell new equipment to the country or countries to which
the excess defense articles are sold.”
Subsec. (l). Pub. L. 104–164, § 152(a), added subsec. (l).
Subsec. (m). Pub. L. 104–164, § 152(b), added subsec. (m).
1994—Subsec. (k). Pub. L. 103–236 added subsec. (k).
1992—Subsec. (j). Pub. L. 102–484 added subsec. (j).
1991—Subsec. (g). Pub. L. 102–25 substituted “section 2350a (i)(3) of title 10” for “section 2767a of this title”.
1989—Subsec. (e)(1)(A). Pub. L. 101–165, § 9104(c)(1), inserted reference to section 2792 (b) and (c) of this title.
Subsec. (e)(1)(B). Pub. L. 101–165, § 9104(c)(2), (3), redesignated subpar. (C) as (B) and inserted exception for
equipment wholly paid for from funds transferred under the Foreign Assistance Act of 1961 or from funds made
available under section 2763 of this title. Former subpar. (B), which included charges for any use of plant and
production equipment in connection with defense articles, was struck out.
Subsec. (e)(1)(C), (D). Pub. L. 101–165, § 9104(c)(3), redesignated subpar. (D) as (C). Former subpar. (C) redesignated
(B).
Subsec. (e)(2). Pub. L. 101–165, § 9104(c)(4), substituted reference to par. (1)(B) for reference to pars. (1)(B) and
(1)(C).
1988—Subsec. (e)(3). Pub. L. 100–456 added par. (3).
1987—Subsec. (g). Pub. L. 100–202 inserted “and with other countries which are major non-NATO allies,” after “New
Zealand,” and inserted last sentence defining “major non-NATO allies”.
1985—Subsec. (a)(1). Pub. L. 99–83, § 107(a)(1), (2), designated existing provisions as par. (1), and substituted “(A)”,
“(B)”, and “(C)” for “(1)”, “(2)”, and “(3)”, respectively.
Subsec. (a)(1)(C). Pub. L. 99–83, § 108(a), inserted provisions relating to training sold to a purchaser receiving
assistance under chapter 5 of part II of the Foreign Assistance Act of 1961.
Subsec. (a)(2). Pub. L. 99–83, § 107(a)(3), added par. (2).
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Subsec. (e)(1)(A). Pub. L. 99–83, § 109, inserted provisions excluding pro rata share of fixed base operation costs.
Subsec. (g). Pub. L. 99–83, § 108(b), added subsec. (g).
Subsec. (h)(1). Pub. L. 99–83, §§ 110, 111 (1), (2), designated existing provisions as par. (1), inserted applicability to
contract administrative services, and substituted “(A)” and “(B)” for “(1)” and “(2)”, respectively.
Subsec. (h)(2). Pub. L. 99–83, § 111(3), added par. (2).
1984—Subsec. (a)(3). Pub. L. 98–473 struck out “sold to a purchaser who is concurrently receiving assistance under
chapter 5 of part II of the Foreign Assistance Act of 1961” after “in the case of training”.
Subsec. (g). Pub. L. 98–473 struck out subsec. (g) which related to NATO standardization agreements and similar
agreements with Japan, Australia, and New Zealand.
1982—Subsec. (i)(1). Pub. L. 97–392 inserted reference to proposals to sell under the authority of subchapter II–B.
1981—Subsec. (c)(2). Pub. L. 97–113, § 103, substituted provision for a report within forty-eight hours of existence of
or change in status of significant hostilities or terrorist acts or series of such acts, which may endanger American lives
or property for provision for a report within 48 hours after outbreak of significant hostilities and omitted provision
for statement of relation between the defense services and hostilities in the country, the location and precise nature of
personnel activities, and likelihood of personnel engagement in the hostilities.
Subsec. (e)(2). Pub. L. 97–113, § 104, authorized reduction or waiver of charges for use and nonrecurring research,
development, and production costs respecting sales significantly advancing United States interests in standardization
with Armed Forces of Japan, Australia, or New Zealand in furtherance of the mutual defense treaties between the
United States and those countries.
1980—Subsec. (a)(3). Pub. L. 96–533, § 115(b)(2), included payment, in case of training sold to a purchaser currently
receiving international military education and training assistance, of additional costs incurred by the United States
Government in furnishing the training.
Subsec. (c). Pub. L. 96–533, § 102, designated existing provision as par. (1), substituted “training and advising that
may engage United States personnel in combat activities” for “training, advising, or otherwise providing assistance
regarding combat activities”, and added par. (2).
Subsec. (g). Pub. L. 96–533, § 103, authorized the President to enter into standardization agreements with Japan,
Australia, and New Zealand.
Subsec. (h). Pub. L. 96–533, § 105(b)(1), substituted “defense articles, defense services, or design and construction
services” for “defense articles or defense services” in two places.
1979—Subsecs. (h), (i). Pub. L. 96–92 added subsec. (h) and redesignated former subsec. (h) as (i).
1978—Subsec. (e)(1)(D). Pub. L. 95–384 added subpar. (D).
1976—Subsec. (a). Pub. L. 94–329, § 205, designated existing provisions as subsec. (a) and substituted provisions
authorizing President to sell defense articles and defense services from Department of Defense stocks to eligible
countries and international organizations who agree to pay specified values for such articles and services in United
States dollars, for provisions requiring that payment for defense articles and defense services from stocks be made in
advance, or if in the best interest of the United States as determined by the President, within a reasonable period not
to exceed 120 days after delivery of the articles or rendering of the services.
Subsecs. (b) to (h). Pub. L. 94–329, §§ 205, 206, added subsecs. (b) to (h).
Effective Date of 1996 Amendment
Section 4303 (b)–(d) of Pub. L. 104–106 provided that:
“(b) Conditions.—Subsection (a) [amending this section] shall be effective only if—
“(1) the President, in the budget of the President for fiscal year 1997, proposes legislation that if enacted would be
qualifying offsetting legislation; and
“(2) there is enacted qualifying offsetting legislation.
“(c) Effective Date.—If the conditions in subsection (b) are met, then the amendments made by subsection (a) shall
take effect on the date of the enactment of qualifying offsetting legislation [Sept. 23, 1996].
“(d) Definitions.—For purposes of this section:
“(1) The term ‘qualifying offsetting legislation’ means legislation that includes provisions that—
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“(A) offset fully the estimated revenues lost as a result of the amendments made by subsection (a) for each of the
fiscal years 1997 through 2005;
“(B) expressly state that they are enacted for the purpose of the offset described in subparagraph (A); and
“(C) are included in full on the PayGo scorecard.
“(2) The term ‘PayGo scorecard’ means the estimates that are made by the Director of the Congressional Budget
Office and the Director of the Office of Management and Budget under section 252(d) of the Balanced Budget and
Emergency Deficit Control Act of 1985 [2 U.S.C. 902 (d)].”
[Qualifying offsetting legislation was enacted by Pub. L. 104–201, § 3303, listed in a Materials in the National Defense
Stockpile table under section 98d of Title 50, War and National Defense.]
Effective Date of 1985 Amendment
Amendment by Pub. L. 99–83 effective Oct. 1, 1985, see section 1301 of Pub. L. 99–83, set out as a note under section
2151–1 of this title.
Regulations
Section 152(c) of Pub. L. 104–164 provided that: “Under the direction of the President, the Secretary of Defense shall
promulgate regulations to implement subsections (l) and (m) of section 21 of the Arms Export Control Act [22 U.S.C.
2761 (l), (m)], as added by this section.”
Transfer of Functions
For transfer of authorities, functions, personnel, and assets of the Coast Guard, including the authorities and functions
of the Secretary of Transportation relating thereto, to the Department of Homeland Security, and for treatment of
related references, see sections 468 (b), 551 (d), 552 (d), and 557 of Title 6, Domestic Security, and the Department
of Homeland Security Reorganization Plan of November 25, 2002, as modified, set out as a note under section 542
of Title 6.
Delegation of Functions
Functions of President under this section, except the last sentence of subsec. (d) and subsec. (i), delegated to Secretary
of Defense by section 1(c) of Ex. Ord. No. 11958, Jan. 18, 1977, 42 F.R. 4311, as amended, set out as a note under
section 2751 of this title.
.....................................
§ 2762. Procurement for cash sales
(a) Authority of President; dependable undertaking by foreign country or international
organization; interest rates
Except as otherwise provided in this section, the President may, without requirement for charge to any
appropriation or contract authorization otherwise provided, enter into contracts for the procurement
of defense articles or defense services for sale for United States dollars to any foreign country or
international organization if such country or international organization provides the United States
Government with a dependable undertaking
(1) to pay the full amount of such contract which will assure the United States Government against
any loss on the contract, and
(2) to make funds available in such amounts and at such times as may be required to meet
the payments required by the contract, and any damages and costs that may accrue from the
cancellation of such contract, in advance of the time such payments, damages, or costs are
due. Interest shall be charged on any net amount by which any such country or international
organization is in arrears under all of its outstanding unliquidated dependable undertakings,
considered collectively. The rate of interest charged shall be a rate not less than a rate determined
by the Secretary of the Treasury taking into consideration the current average market yield on
outstanding short-term obligations of the United States as of the last day of the month preceding
the net arrearage and shall be computed from the date of net arrearage.
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(b) Issuance of letters of offer under emergency determination; availability of appropriations
for payment
The President may, if he determines it to be in the national interest, issue letters of offer under this
section which provide for billing upon delivery of the defense article or rendering of the defense
service and for payment within one hundred and twenty days after the date of billing. This authority
may be exercised, however, only if the President also determines that the emergency requirements
of the purchaser for acquisition of such defense articles and services exceed the ready availability to
the purchaser of funds sufficient to make payments on a dependable undertaking basis and submits
both determinations to the Congress together with a special emergency request for authorization
and appropriation of additional funds to finance such purchases under this chapter. Appropriations
available to the Department of Defense may be used to meet the payments required by the contracts
for the procurement of defense articles and defense services and shall be reimbursed by the amounts
subsequently received from the country or international organization to whom articles or services are
sold.
(c) Applicability of Renegotiation Act of 1951
The provisions of the Renegotiation Act of 1951 [50 App. U.S.C. 1211 et seq.] do not apply to
procurement contracts heretofore or hereafter entered into under this section, section 2769 of this title,
or predecessor provisions of law.
(d) Competitive pricing
(1) Procurement contracts made in implementation of sales under this section for defense articles
and defense services wholly paid for from funds made available on a nonrepayable basis shall
be priced on the same costing basis with regard to profit, overhead, independent research and
development, bid and proposal, and other costing elements, as is applicable to procurements of
like items purchased by the Department of Defense for its own use.
(2) Direct costs associated with meeting additional or unique requirements of the purchaser shall
be allowable under contracts described in paragraph (1). Loadings applicable to such direct costs
shall be permitted at the same rates applicable to procurement of like items purchased by the
Department of Defense for its own use.
(Pub. L. 90–629, ch. 2, § 22, Oct. 22, 1968, 82 Stat. 1323; Pub. L. 93–189, § 25(3), Dec. 17, 1973, 87
Stat. 730; Pub. L. 94–329, title II, § 207, June 30, 1976, 90 Stat. 738; Pub. L. 95–384, § 17, Sept. 26,
1978, 92 Stat. 740; Pub. L. 96–533, title I, § 105(b)(2), Dec. 16, 1980, 94 Stat. 3134; Pub. L. 104–107,
title V, § 531A(a), Feb. 12, 1996, 110 Stat. 731; Pub. L. 106–113, div. B, § 1000(a)(7) [div. B, title XII, §
1223], Nov. 29, 1999, 113 Stat. 1536, 1501A–498.)
References in Text
This chapter, referred to in subsec. (b), was in the original “this Act”, meaning Pub. L. 90–629, Oct. 22, 1968, 82 Stat.
1321, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title
note set out under section 2751 of this title and Tables.
The Renegotiation Act of 1951, referred to in subsec. (c), is act Mar. 23, 1951, ch. 15, 65 Stat. 7, as amended, which
was classified principally to section 1211 et seq. of Title 50, Appendix, War and National Defense, prior to its omission
from the Code. See Codification note set out under section 1211 of Title 50, Appendix.
Amendments
1999—Subsec. (d). Pub. L. 106–113 designated existing provisions as par. (1) and added par. (2).
1996—Subsec. (d). Pub. L. 104–107 added subsec. (d).
1980—Subsec. (c). Pub. L. 96–533 substituted “procurement contracts” for “contracts for the procurement of defense
articles and defense services” and inserted reference to contracts entered into under section 2769 of this title.
1978—Subsec. (c). Pub. L. 95–384 added subsec. (c).
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NB: This unofficial compilation of the U.S. Code is current as of Jan. 4, 2012 (see http://www.law.cornell.edu/uscode/uscprint.html).
1976—Subsec. (a). Pub. L. 94–329, § 207(a), inserted provisions requiring interest to be charged on any net amount a
country or international organization is in arrears and the rate of interest to be determined by the Secretary of Treasury
considering current average market yield of short-term obligations of United States on a particular day.
Subsec. (b). Pub. L. 94–329, § 207(b), substituted provisions authorizing President to issue letters of offer with
provisions for billing on delivery of article or rendering of service and payment within 120 days after billing date where
President determines that emergency conditions exist, for provisions authorizing President to accept a dependable
undertaking of a foreign country or international organization with respect to sales of defense articles and services and
to make payment within 120 days of delivery of article or rendering of service.
1973—Pub. L. 93–189 designated text preceding first proviso as subsec. (a) and inserted “Except as otherwise provided
in this section,” before “the President”, designated first proviso as subsec. (b) and inserted reference to acceptance of
a dependable undertaking of a foreign country or international organization, and struck out further provisions setting
forth Presidential powers with respect to sales agreements with and payments by purchasing countries or international
organizations.
Effective Date of 1996 Amendment; Implementing Regulations
Section 531A(b) of Pub. L. 104–107 provided that: “Section 22(d) of the Arms Export Control Act [subsec. (d) of
this section], as added by subsection (a)—
“(1) shall take effect on the 60th day following the date of the enactment of this Act [Feb. 12, 1996];
“(2) shall be applicable only to contracts made in implementation of sales made after such effective date; and
“(3) shall be implemented by revised procurement regulations, which shall be issued prior to such effective date.”
Delegation of Functions
Functions of President under subsec. (a) of this section delegated to Secretary of Defense by section 1(d) of Ex. Ord.
No. 11958, Jan. 18, 1977, 42 F.R. 4311, as amended, set out as a note under section 2751 of this title.
Prior Provisions
Provisions similar to those comprising subsec. (d)(2) of this section were contained in the following appropriation acts:
Pub. L. 106–113, div. B, § 1000(a)(2) [title V, § 556], Nov. 29, 1999, 113 Stat. 1535, 1501A–100.
Pub. L. 105–277, div. A, § 101(d) [title V, § 536], Oct. 21, 1998, 112 Stat. 2681–150, 2681–181.
Pub. L. 105–118, title V, § 535, Nov. 26, 1997, 111 Stat. 2416.
Pub. L. 104–208, div. A, title I, § 101(c) [title V, § 533A], Sept. 30, 1996, 110 Stat. 3009–121, 3009–153.
Pub. L. 104–107, title V, § 531A(c), Feb. 12, 1996, 110 Stat. 731.
.....................................
§ 2763. Credit sales
(a) Financing procurement of defense articles and services, and design and construction services
The President is authorized to finance the procurement of defense articles, defense services, and design
and construction services by friendly foreign countries and international organizations, on such terms
and conditions as he may determine consistent with the requirements of this section. Notwithstanding
any other provision of law, and subject to the regular notification requirements of the Committees on
Appropriations, the authority of this section may be used to provide financing to Israel and Egypt for
the procurement by leasing (including leasing with an option to purchase) of defense articles from
United States commercial suppliers, not including Major Defense Equipment (other than helicopters
and other types of aircraft having possible civilian application), if the President determines that there
are compelling foreign policy or national security reasons for those defense articles being provided by
commercial lease rather than by government-to-government sale under this chapter.
(b) Repayment period
The President shall require repayment in United States dollars within a period not to exceed twelve
years after the loan agreement with the country or international organization is signed on behalf of the
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NB: This unofficial compilation of the U.S. Code is current as of Jan. 4, 2012 (see http://www.law.cornell.edu/uscode/uscprint.html).
United States Government, unless a longer period is specifically authorized by statute for that country
or international organization.
(c) Interest rate; definitions
(1) The President shall charge interest under this section at such rate as he may determine, except
that such rate may not be less than 5 percent per year.
(2) For purposes of financing provided under this section—
(A) the term “concessional rate of interest” means any rate of interest which is less than
market rates of interest; and
(B) the term “market rate of interest” means any rate of interest which is equal to or greater
than the current average interest rate (as of the last day of the month preceding the financing
of the procurement under this section) that the United States Government pays on outstanding
marketable obligations of comparable maturity.
(d) Participations in credits
References in any law to credits extended under this section shall be deemed to include reference to
participations in credits.
(e) Payments on account of prior credits or loans
(1) Funds made available to carry out this section may be used by a foreign country to make
payments of principal and interest which it owes to the United States Government on account of
credits previously extended under this section or loans previously guaranteed under section 2764
of this title, subject to paragraph (2).
(2) Funds made available to carry out this section may not be used for prepayment of principal
or interest pursuant to the authority of paragraph (1).
(f) Audit of certain private firms
For each fiscal year, the Secretary of Defense, as requested by the Director of the Defense Security
Assistance Agency, shall conduct audits on a nonreimbursable basis of private firms that have entered
into contracts with foreign governments under which defense articles, defense services, or design and
construction services are to be procured by such firms for such governments from financing under this
section.
(g) Notification requirements with respect to cash flow financing
(1) For each country and international organization that has been approved for cash flow
financing under this section, any letter of offer and acceptance or other purchase agreement, or
any amendment thereto, for a procurement of defense articles, defense services, or design and
construction services in excess of $100,000,000 that is to be financed in whole or in part with funds
made available under this chapter or the Foreign Assistance Act of 1961 [22 U.S.C. 2151 et seq.]
shall be submitted to the congressional committees specified in section 634A(a) of the Foreign
Assistance Act of 1961 [22 U.S.C. 2394–1 (a)] in accordance with the procedures applicable to
reprogramming notifications under that section.
(2) For purposes of this subsection, the term “cash flow financing” has the meaning given such
term in subsection (d) of section 2765 of this title.
(h) Limitation on use of funds for direct commercial contracts
Of the amounts made available for a fiscal year to carry out this section, not more than $100,000,000
for such fiscal year may be made available for countries other than Israel and Egypt for the purpose of
financing the procurement of defense articles, defense services, and design and construction services
that are not sold by the United States Government under this chapter.
(Pub. L. 90–629, ch. 2, § 23, Oct. 22, 1968, 82 Stat. 1324; Pub. L. 93–559, § 45(a)(2), Dec. 30, 1974,
88 Stat. 1813; Pub. L. 94–329, title II, § 208(a), June 30, 1976, 90 Stat. 739; Pub. L. 96–533, title I, §
105(b)(3), Dec. 16, 1980, 94 Stat. 3134; Pub. L. 99–83, title I, § 102, Aug. 8, 1985, 99 Stat. 195; Pub.
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NB: This unofficial compilation of the U.S. Code is current as of Jan. 4, 2012 (see http://www.law.cornell.edu/uscode/uscprint.html).
L. 100–202, § 101(e) [title V, § 572], Dec. 22, 1987, 101 Stat. 1329–131, 1329–176; Pub. L. 101–513,
title V, § 580, Nov. 5, 1990, 104 Stat. 2045; Pub. L. 104–164, title I, § 102(a)–(c), July 21, 1996, 110 Stat.
1422.)
References in Text
This chapter, referred to in subsecs. (a), (g)(1), and (h), was in the original “this Act”, meaning Pub. L. 90–629, Oct.
22, 1968, 82 Stat. 1321, which is classified principally to this chapter. For complete classification of this Act to the
Code, see Short Title note set out under section 2751 of this title and Tables.
The Foreign Assistance Act of 1961, referred to in subsec. (g)(1), is Pub. L. 87–195, Sept. 4, 1961, 75 Stat. 424, as
amended, which is classified principally to chapter 32 (§ 2151 et seq.) of this title. For complete classification of this
Act to the Code, see Short Title note set out under section 2151 of this title and Tables.
Amendments
1996—Subsecs. (f) to (g). Pub. L. 104–164 added subsecs. (f) to (g).
1990—Subsec. (e). Pub. L. 101–513 added subsec. (e).
1987—Subsec. (a). Pub. L. 100–202 inserted sentence at end authorizing financing to Israel and Egypt for commercial
leasing of defense articles, not including Major Defense Equipment, with exception for certain aircraft, upon a
Presidential determination that there are compelling foreign policy or national defense reasons for such leasing.
1985—Pub. L. 99–83 amended section generally. Prior to amendment, section read as follows: “The President
is authorized to finance procurements of defense articles, defense services, and design and construction services
by friendly foreign countries and international organizations on terms requiring the payment to the United States
Government in United States dollars of—
“(1) the value of such articles or services within a period not to exceed twelve years after the delivery of such articles
or the rendering of such services; and
“(2) interest on the unpaid balance of that obligation for payment of the value of such articles or services, at a
rate equivalent to the current average interest rate, as of the last day of the month preceding the financing of such
procurement, that the United States Government pays on outstanding marketable obligations of comparable maturity,
unless the President certifies to Congress that the national interest requires a lesser rate of interest and states in the
certification the lesser rate so required and the justification therefor.”
1980—Pub. L. 96–533 substituted “defense articles, defense services, and design and construction services” for
“defense articles and defense services”.
1976—Par. (1). Pub. L. 94–329 substituted “twelve years” for “ten years”.
1974—Pub. L. 93–559 incorporated existing provisions in cl. (1) and added cl. (2).
Effective Date of 1985 Amendment
Amendment by Pub. L. 99–83 effective Oct. 1, 1985, see section 1301 of Pub. L. 99–83, set out as a note under section
2151–1 of this title.
Effective Date of 1976 Amendment
Section 208(b) of Pub. L. 94–329 provided that: “The amendment made by subsection (a) [amending this section]
shall apply with respect to financing under agreements entered into on or after the date of enactment of this Act [June
30, 1976] for the procurement of defense articles to be delivered, or defense services to be rendered, after such date.”
Delegation of Functions
Functions of President under this section and section 580 of Pub. L. 100–461, see Similar Provisions note below,
except those functions relating to determinations of a rate of interest which is less than the market rate, delegated to
Secretary of Defense, to be exercised in consultation with Secretary of State and Secretary of the Treasury, by section
1(e) of Ex. Ord. No. 11958, Jan. 18, 1977, 42 F.R. 4311, as amended, set out as a note under section 2751 of this title.
Similar Provisions
Provisions similar to those in last sentence of subsec. (a) of this section which were applicable to NATO and major
non-NATO allies in addition to Israel and Egypt were contained in the following appropriation acts and were not
repeated in subsequent appropriation acts:
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NB: This unofficial compilation of the U.S. Code is current as of Jan. 4, 2012 (see http://www.law.cornell.edu/uscode/uscprint.html).
Pub. L. 106–113, div. B, § 1000(a)(2) [title V, § 528], Nov. 29, 1999, 113 Stat. 1535, 1501A–90.
Pub. L. 105–277, div. A, § 101(d) [title V, § 529], Oct. 21, 1998, 112 Stat. 2681–150, 2681–178.
Pub. L. 105–118, title V, § 528, Nov. 26, 1997, 111 Stat. 2413.
Pub. L. 104–208, div. A, title I, § 101(c) [title V, § 528], Sept. 30, 1996, 110 Stat. 3009–121, 3009–149.
Pub. L. 104–107, title V, § 528, Feb. 12, 1996, 110 Stat. 730.
Pub. L. 103–306, title V, § 530, Aug. 23, 1994, 108 Stat. 1635.
Pub. L. 103–87, title V, § 530, Sept. 30, 1993, 107 Stat. 954.
Pub. L. 102–391, title V, § 558, Oct. 6, 1992, 106 Stat. 1676.
Pub. L. 101–513, title V, § 561, Nov. 5, 1990, 104 Stat. 2026.
Pub. L. 101–167, title V, § 571, Nov. 21, 1989, 103 Stat. 1245.
Pub. L. 100–461, title V, § 580, Oct. 1, 1988, 102 Stat. 2268–48.
.....................................
§ 2764. Guaranties
(a) Guaranty against political and credit risks of nonpayment
The President may guarantee any individual, corporation, partnership, or other juridical entity doing
business in the United States (excluding United States Government agencies other than the Federal
Financing Bank) against political and credit risks of nonpayment arising out of their financing of credit
sales of defense articles, defense services, and design and construction services to friendly countries
and international organizations. Fees shall be charged for such guaranties.
(b) Sale of promissory notes of friendly countries and international organizations; guaranty of
payment
The President may sell to any individual, corporation, partnership, or other juridical entity (excluding
United States Government agencies other than the Federal Financing Bank) promissory notes issued by
friendly countries and international organizations as evidence of their obligations to make repayments to
the United States on account of credit sales financed under section 2763 of this title, and may guarantee
payment thereof.
(c) Guaranty Reserve Fund; payment of guaranties; guaranty reserve below prescribed amount
Funds obligated under this section before December 16, 1980, which constitute a single reserve for the
payment of claims under guaranties issued under this section shall remain available for expenditure for
the purposes of this section on and after that date. That single reserve may, on and after August 8, 1985,
be referred to as the “Guaranty Reserve Fund”. Funds provided for necessary expenses to carry out the
provisions of section 2763 of this title and of section 2311 of this title may be used to pay claims on
the Guaranty Reserve Fund to the extent that funds in the Guaranty Reserve Fund are inadequate for
that purpose. For purposes of any provision in this chapter or any other Act relating to a prohibition
or limitation on the availability of funds under this chapter, whenever a guaranty is issued under this
section, the principal amount of the loan so guaranteed shall be deemed to be funds made available
for use under this chapter. Any guaranties issued hereunder shall be backed by the full faith and credit
of the United States.
(Pub. L. 90–629, ch. 2, § 24, Oct. 22, 1968, 82 Stat. 1324; Pub. L. 93–189, § 25(4), Dec. 17, 1973, 87
Stat. 730; Pub. L. 93–559, § 45(a)(3), (4), Dec. 30, 1974, 88 Stat. 1814; Pub. L. 96–533, title I, §§ 104(a),
105 (b)(3), Dec. 16, 1980, 94 Stat. 3132, 3134; Pub. L. 99–83, title I, § 106(b), (c), Aug. 8, 1985, 99 Stat.
196; Pub. L. 100–71, title I, July 11, 1987, 101 Stat. 409.)
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NB: This unofficial compilation of the U.S. Code is current as of Jan. 4, 2012 (see http://www.law.cornell.edu/uscode/uscprint.html).
References in Text
This chapter, referred to in subsec. (c), was in the original “this Act”, meaning Pub. L. 90–629, Oct. 22, 1968, 82 Stat.
1321, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title
note set out under section 2751 of this title and Tables.
Amendments
1987—Subsec. (c). Pub. L. 100–71, which directed that the second par. be struck out and a new one-sentence par. be
inserted, was executed to reflect the probable intent of Congress by substituting the new sentence for the third sentence
which read as follows: “Funds authorized to be appropriated by section 2771 (a) of this title to carry out this chapter
which are allocated for credits at market rates of interest may be used to pay claims under such guarantees to the extent
funds in the Guaranty Reserve Fund are inadequate for that purpose.”
1985—Subsec. (c). Pub. L. 99–83 inserted provisions authorizing the single reserve to be termed the “Guaranty Reserve
Fund”, and substituted provisions relating to payment of claims under guarantees, for provisions relating to report to
Congress respecting any payment of claims reducing the single reserve.
1980—Subsec. (a). Pub. L. 96–533, § 105(b)(3), substituted “defense articles, defense services, and design and
construction services” for “defense articles and defense services”.
Subsec. (c). Pub. L. 96–533, § 104(a), substituted provisions making funds obligated before Dec. 16, 1980 available
for expenditure after such date for payment of guaranteed claims, requiring the President to report to Congress the
reduction of the single reserve below $750,000,000 with recommendation for an appropriations authorization of
additional funds and deeming the principal amount of a guaranteed loan to be funds made available for use under
this chapter for purposes of any limitation on availability of funds for prior provisions for obligation of available
funds in an amount equal to 10 per centum of principal amount of contractual liability related to a guaranty under this
section, making such funds a single reserve for payment of guaranteed claims, and providing for transfer of any funds
deobligated during any current fiscal year to the general fund of the Treasury.
1974—Subsecs. (a), (b). Pub. L. 93–559, § 45(a)(3), inserted “other than the Federal Financing Bank” in parenthetical
text.
Subsec. (c). Pub. L. 93–559, § 45(a)(4), substituted “10” for “25” in two places.
1973—Subsec. (c). Pub. L. 93–189 substituted “to carry out this chapter” for “pursuant to section 2771 of this title”
and inserted “principal amount of” before “contractual liability” wherever appearing.
Effective Date of 1985 Amendment
Amendment by Pub. L. 99–83 effective Oct. 1, 1985, see section 1301 of Pub. L. 99–83, set out as a note under section
2151–1 of this title.
Effective Date of 1974 Amendment; Adjustment of Obligations Charged Against
Appropriations; Credit for Fiscal Year 1975 Appropriations
Section 45(b) of Pub. L. 93–559 provided that: “The amendment made by paragraph (4) of subsection (a) [amending
this section] shall take effect on July 1, 1974. Obligations initially charged against appropriations made available for
purposes authorized by section 31(a) of the Foreign Military Sales Act [section 2771 (a) of this title] after June 30,
1974, and prior to the enactment of this section [Dec. 30, 1974] in an amount equal to 25 per centum of the principal
amount of contractual liability related to guaranties issued pursuant to section 24(a) of that Act [subsec. (a) of this
section] shall be adjusted to reflect such amendment with proper credit to the appropriations made available in the
fiscal year 1975 to carry out that Act [this chapter].”
Delegation of Functions
Functions of President under this section delegated to Secretary of Defense, with Secretary of Defense required to
consult with Secretary of State and Secretary of the Treasury in implementing delegated functions, by section 1(f) of
Ex. Ord. No. 11958, Jan. 18, 1977, 42 F.R. 4311, as amended, set out as a note under section 2751 of this title.
Foreign Military Sales Debt Reform
Pub. L. 102–145, § 118, as added by Pub. L. 102–266, § 102, Apr. 1, 1992, 106 Stat. 93, provided that the authority
and conditions provided under the heading “Foreign Military Sales Debt Reform” in H.R. 2621, One Hundred Second
Congress, 1st session, as passed by the House of Representatives on June 19, 1991, shall be applicable to funds
appropriated by Pub. L. 102–145 (and are hereby enacted) in lieu of the authority and conditions provided under the
heading “Foreign Military Sales Debt Reform” in Pub. L. 101–513 [set out below]. Provisions under the heading
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NB: This unofficial compilation of the U.S. Code is current as of Jan. 4, 2012 (see http://www.law.cornell.edu/uscode/uscprint.html).
“Foreign Military Sales Debt Reform” in H.R. 2621, as referred to above, provided that: “Subsection (b) under the
heading ‘Foreign Military Sales Debt Reform’ in the Foreign Operations, Export Financing, and Related Programs
Appropriations Act, 1988 [Pub. L. 100–202, § 101(e) [title III, § 301], set out below], is hereby repealed.”
Pub. L. 101–513, title III, Nov. 5, 1990, 104 Stat. 1999, provided that: “Funds made available by the Foreign
Operations, Export Financing, and Related Programs Appropriations Act, 1988 [Pub. L. 100–202, § 101(e) [title III],
set out below], for obligation and expenditure after October 1, 1988, subject to a Presidential budget request, under
the heading ‘Foreign Military Sales Debt Reform’, subsection (b) ‘Interest Rate Reduction’ shall be available, subject
to the same conditions and provisos, only after October 1, 1991.” Similar provisions were contained in the following
prior appropriation acts:
Pub. L. 101–167, title III, Nov. 21, 1989, 103 Stat. 1214.
Pub. L. 100–461, title III, Oct. 1, 1988, 102 Stat. 2268–18.
Pub. L. 100–202, § 101(e) [title III], Dec. 22, 1987, 101 Stat. 1329–131, 1329–148, as amended by Pub. L. 101–167,
title III, Nov. 21, 1989, 103 Stat. 1214; Pub. L. 102–145, § 118, as added by Pub. L. 102–266, § 102, Apr. 1, 1992,
106 Stat. 93, provided in part that:
“(a) Refinancing.—Notwithstanding any other provision of law, the President is authorized during fiscal years 1988
through 1991 to transfer existing United States guaranties of outstanding Foreign Military Sales (FMS) credit debt, or
to issue new guaranties, either of which would be applied to loans, bonds, notes or other obligations made or issued (as
the case may be) by private United States financial institutions (the private lender) to finance the prepayment at par of
the principal amounts maturing after September 30, 1989 of existing FMS loans bearing interest rates of eight percent
or higher, and arrearages thereon. The loans, bonds, notes or other obligations are hereinafter referred to as the ‘private
loan’: Provided, That such guaranties which are transferred or are made pursuant to paragraph (a) shall cover no more
and no less than ninety percent of the private loan or any portion or derivative thereof plus unpaid accrued interest and
arrearages, if any, outstanding at the time of guaranty transfer or extension: Provided further, That the total amount
of the guaranty of the private loan cannot exceed ninety percent of the outstanding principal, unpaid accrued interest
and arrearages, if any, at any time: Provided further, That of the total amount of the private loan, the ninety percent
guaranteed portion of the private loan cannot be separated from the private loan at any time: Provided further, That no
sums in addition to the payment of the outstanding principal amounts maturing after September 30, 1989 of the loan
(or advance), plus unpaid accrued interest thereon, and arrearages, if any, shall be charged by the private lender or the
Federal Financing Bank as a result of such prepayment against the borrower, the guarantor, or the Guaranty Reserve
Fund (GRF), except that the private lender may include, in the interest rate charged, a standard fee to cover costs,
such fee which will be set at prevailing market rates, and no guaranty fee shall be charged on guarantees transferred
or issued pursuant to this provision: Provided further, That the terms of guaranties transferred or issued under this
paragraph shall be exactly the same as the existing loans or guarantees, except as modified by this paragraph and
including but not limited to the final maturity and principal and interest payment structure of the existing loans which
shall not be altered, except that the repayments of the private loan issued debt may be consolidated into two payments
per year: Provided further, That the private loan or guarantees transferred or issued pursuant to this paragraph shall be
fully and freely transferable, except that any guaranty transferred or extended shall cease to be effective if the private
loan or any derivative thereof is to be used to provide significant support for any non-registered obligation: Provided
further, That for purposes of sections 23 and 24 of the Arms Export Control Act (AECA) [22 U.S.C. 2763, 2764],
the term ‘defense services’ shall be deemed to include the refinancing of FMS debt outstanding at the date of the
enactment of this Act [Dec. 22, 1987]: Provided further, That not later than ninety days after the enactment of this Act,
the Secretary of the Treasury (Secretary) shall issue regulations to carry out the purposes of this heading and that in
issuing such regulations, the Secretary shall (1) facilitate the prepayment of loans and loan advances hereunder, (2)
provide for full processing of each application within thirty days of its submission to the Secretary, and (3) except as
provided in section 24(a) of the AECA, impose no restriction that increases the cost to borrowers of obtaining private
financing for prepayment hereunder or that inhibits the ability of the borrower to enter into prepayment arrangements
hereunder: Provided further, That the Secretary of State shall transmit to the Committee on Foreign Affairs of the
House of Representatives, the Committee on Foreign Relations of the Senate, and the Committees on Appropriations
of the House of Representatives and Senate, a copy of the text of any agreement entered into pursuant to this section
not more than thirty days after its entry into force, together with a description of the transaction.
“[(b) Repealed. Pub. L. 102–145, § 118, as added by Pub. L. 102–266, § 102, Apr. 1, 1992, 106 Stat. 93.]
“(c) Arrearages.—(1) None of the funds provided pursuant to the Arms Export Control Act (relating to Foreign Military
Sales credits) [22 U.S.C. 2751 et seq.] or pursuant to chapter 2 of part II of the Foreign Assistance Act (relating to the
Military Assistance program) [22 U.S.C. 2311 et seq.] shall be made available to any country for which one or more
loans is refinanced pursuant to paragraph (a) of this heading and which is in default for a period in excess of ninety
days in payment of principal or interest on (A) any loan made to such country guaranteed by the United States pursuant
to paragraph (a) of this heading, and (B) any other loan issued pursuant to the Arms Export Control Act outstanding
on the date of enactment of this provision [Dec. 22, 1987].
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NB: This unofficial compilation of the U.S. Code is current as of Jan. 4, 2012 (see http://www.law.cornell.edu/uscode/uscprint.html).
“(2) In conjunction with any interest rate reduction pursuant to the authority provided in paragraph (b) of this heading,
the President shall require the country to commit in writing that within two years of the effective date of the interest
rate reduction it will be no more than ninety days in arrears on the repayment of principal and interest on all loans for
which the interest rate is thus reduced and will remain no more than ninety days in arrears for the remaining life of all
such loans. None of the funds provided pursuant to the Arms Export Control Act [22 U.S.C. 2751 et seq.] or chapter
2 of part II of the Foreign Assistance Act [22 U.S.C. 2311 et seq.] shall be made available to any country during any
period in which it fails to comply with such commitment.
“(d) Purposes and Reports.—The authorities of paragraphs (a) and (b) of this heading may be utilized by the President
in efforts to negotiate base rights and base access agreements, and for other bilateral foreign policy matters: Provided
further, That the Secretaries of Defense, State, and Treasury shall transmit to the Committee on Foreign Affairs of the
House of Representatives, the Committee on Foreign Relations of the Senate, and the Committees on Appropriations
of the House of Representatives and Senate a joint report detailing the United States financial and foreign policy
purposes served by implementation of this authority on a country by country basis not later than March 1, 1989, and
a second joint report not later than August 1, 1989.”
.....................................
§ 2765. Annual estimate and justification for sales program
(a) Report to Congress; contents
Except as provided in subsection (d) 1 of this section, no later than February 1 of each year, the President
shall transmit to the appropriate congressional committees, as a part of the annual presentation materials
for security assistance programs proposed for the next fiscal year, a report which sets forth—
(1) an arms sales proposal covering all sales and licensed commercial exports under this chapter,
as well as exports pursuant to a treaty referred to in section 2778 (j)(1)(C)(i) of this title, of major
weapons or weapons-related defense equipment for $7,000,000 or more, or of any other weapons
or weapons-related defense equipment for $25,000,000 or more, which are considered eligible for
approval during the current calendar year, together with an indication of which sales and licensed
commercial exports are deemed most likely actually to result in the issuance of a letter of offer or
of an export license during such year;
(2) an estimate of the total amount of sales and licensed commercial exports, as well as exports
pursuant to a treaty referred to in section 2778 (j)(1)(C)(i) of this title, expected to be made to each
foreign nation from the United States;
(3) the United States national security considerations involved in expected sales or licensed
commercial exports to each country, an analysis of the relationship between anticipated sales to
each country and arms control efforts concerning such country and an analysis of the impact of
such anticipated sales on the stability of the region that includes such country;
(4) an estimate with regard to the international volume of arms traffic to and from nations
purchasing arms as set forth in paragraphs (1) and (2) of this subsection, together with best
estimates of the sale and delivery of weapons and weapons-related defense equipment by all major
arms suppliers to all major recipient countries during the preceding fiscal year;
(5) (A) an estimate of the aggregate dollar value and quantity of defense articles and defense
services, military education and training, grant military assistance, and credits and guarantees,
to be furnished by the United States to each foreign country and international organization in
the next fiscal year; and
(B) for each country that is proposed to be furnished credits or guaranties under this chapter
in the next fiscal year and that has been approved for cash flow financing (as defined in
subsection (d) 1 of this section) in excess of $100,000,000 as of October 1 of the current fiscal
year—
(i) the amount of such approved cash flow financing,
(ii) a description of administrative ceilings and controls applied, and
(iii) a description of the financial resources otherwise available to such country to pay
such approved cash flow financing;
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(6) an analysis and description of the services performed during the preceding fiscal year by
officers and employees of the United States Government carrying out functions on a full-time
basis under this chapter for which reimbursement is provided under section 2792 (b) of this title
or section 2761 (a) of this title, including the number of personnel involved in performing such
services;
(7) the total amount of funds in the reserve under section 2764 (c) of this title at the end of the
fiscal year immediately preceding the fiscal year in which a report under this section is made,
together with an assessment of the adequacy of such total amount of funds as a reserve for the
payment of claims under guarantees issued pursuant to section 2764 of this title in view of the
current debt servicing capacity of borrowing countries, as reported to the Congress pursuant to
section 634(a)(5) of the Foreign Assistance Act of 1961 [22 U.S.C. 2394 (a)(5)];
(8) a list of all countries with respect to which findings made by the President pursuant to section
2753 (a)(1) of this title are in effect on the date of such transmission;
(9) the progress made under the program of the Republic of Korea to modernize its armed forces,
the role of the United States in mutual security efforts in the Republic of Korea and the military
balance between the People’s Republic of Korea and the Republic of Korea;
(10) the amount and nature of Soviet military assistance to the armed forces of Cuba during the
preceding fiscal year and the military capabilities of those armed forces;
(11) the status of each loan and each contract of guaranty or insurance theretofore made under the
Foreign Assistance Act of 1961 [22 U.S.C. 2151 et seq.], predecessor Acts, or any Act authorizing
international security assistance, with respect to which there remains outstanding any unpaid
obligation or potential liability; the status of each extension of credit for the procurement of
defense articles or defense services, and of each contract of guaranty in connection with any such
procurement, theretofore made under this chapter with respect to which there remains outstanding
any unpaid obligation or potential liability;
(12) (A) a detailed accounting of all articles, services, credits, guarantees, or any other form
of assistance furnished by the United States to each country and international organization,
including payments to the United Nations, during the preceding fiscal year for the detection
and clearance of landmines, including activities relating to the furnishing of education,
training, and technical assistance for the detection and clearance of landmines; and
(B) for each provision of law making funds available or authorizing appropriations for
demining activities described in subparagraph (A), an analysis and description of the
objectives and activities undertaken during the preceding fiscal year, including the number of
personnel involved in performing such activities;
(13) a list of weapons systems that are significant military equipment (as defined in section 2794
(9) of this title), and numbers thereof, that are believed likely to become available for transfer as
excess defense articles during the next 12 months; and
(14) such other information as the President may deem necessary.
(b) Congressional request for additional information
Not later than thirty days following the receipt of a request made by any of the congressional committees
described in subsection (e) of this section for additional information with respect to any information
submitted pursuant to subsection (a) of this section, the President shall submit such information to such
committee.
(c) Submission of information in unclassified form or classified addendum with unclassified
summary
The President shall make every effort to submit all of the information required by subsection (a) or
(b) of this section wholly in unclassified form. Whenever the President submits any such information
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in classified form, he shall submit such classified information in an addendum and shall also submit
simultaneously a detailed summary, in unclassified form, of such classified information.
(d) 2 “Cash flow financing” defined
For the purposes of subsection (a)(5)(B) of this section, the term “cash flow financing” means the dollar
amount of the difference between the total estimated price of a Letter of Offer and Acceptance or other
purchase agreement that has been approved for financing under this chapter or under section 503(a)(3)
of the Foreign Assistance Act of 1961 [22 U.S.C. 2311 (a)(3)] and the amount of the financing that
has been approved therefor; 3
(d) 2 Transmission of information to Congress
The information required by subsection (a)(4) of this section shall be transmitted to the Congress no
later than April 1 of each year.
(e) “Appropriate congressional committees” defined
As used in this section, the term “appropriate congressional committees” means the Committee
on Foreign Relations and the Committee on Appropriations of the Senate and the Committee on
International Relations and the Committee on Appropriations of the House of Representatives.
Footnotes
1 See References in Text note below.
2 So in original. Two subsecs. (d) have been enacted.
3 So in original. The semicolon probably should be a period.
(Pub. L. 90–629, ch. 2, § 25, as added Pub. L. 94–329, title II, § 209(a), June 30, 1976, 90 Stat. 739;
amended Pub. L. 95–384, § 18, Sept. 26, 1978, 92 Stat. 740; Pub. L. 96–92, §§ 13, 14, Oct. 29, 1979, 93
Stat. 706; Pub. L. 96–533, title I, §§ 104(c), 107 (d), Dec. 16, 1980, 94 Stat. 3133, 3137; Pub. L. 97–113,
title VII, § 732, Dec. 29, 1981, 95 Stat. 1557; Pub. L. 99–83, title I, §§ 112, 113, Aug. 8, 1985, 99 Stat.
198; Pub. L. 104–164, title I, § 102(d), July 21, 1996, 110 Stat. 1423; Pub. L. 105–118, title V, § 519,
Nov. 26, 1997, 111 Stat. 2411; Pub. L. 107–228, div. B, title XII, § 1232, Sept. 30, 2002, 116 Stat. 1433;
Pub. L. 111–266, title I, § 104(c), Oct. 8, 2010, 124 Stat. 2799.)
References in Text
Subsection (d) of this section, referred to in subsec. (a), preceding par. (1), probably means the subsec. (d) added by
section 113(2) of Pub. L. 99–83, relating to transmittal of information to Congress.
This chapter, referred to in subsecs. (a)(1), (5)(B), (6) and (d), was in the original “this Act”, and this chapter, referred
to in subsec. (a)(11), was in the original “the Arms Export Control Act”, both of which mean Pub. L. 90–629, Oct. 22,
1968, 82 Stat. 1321, which is classified principally to this chapter. For complete classification of this Act to the Code,
see Short Title note set out under section 2751 of this title and Tables.
Subsection (d) of this section, referred to in subsec. (a)(5)(B), probably means the subsec. (d) added by section 112(b)
of Pub. L. 99–83, defining cash flow financing.
The Foreign Assistance Act of 1961, referred to in subsec. (a)(11), is Pub. L. 87–195, Sept. 4, 1961, 75 Stat. 424, as
amended, which is classified principally to chapter 32 (§ 2151 et seq.) of this title. For complete classification of this
Act to the Code, see Short Title note set out under section 2151 of this title and Tables.
Amendments
2010—Subsec. (a)(1). Pub. L. 111–266, § 104(c)(1), inserted “, as well as exports pursuant to a treaty referred to in
section 2778 (j)(1)(C)(i) of this title,” after “commercial exports under this chapter”.
Subsec. (a)(2). Pub. L. 111–266, § 104(c)(2), inserted “, as well as exports pursuant to a treaty referred to in section
2778 (j)(1)(C)(i) of this title,” after “commercial exports”.
2002—Subsec. (a)(13), (14). Pub. L. 107–228 added par. (13) and redesignated former par. (13) as (14).
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1997—Subsec. (a). Pub. L. 105–118, § 519(1), substituted “appropriate congressional committees” for “Congress” in
introductory provisions.
Subsec. (b). Pub. L. 105–118, § 519(2), substituted “any of the congressional committees described in subsection (e)
of this section” for “the Committee on Foreign Relations of the Senate or the Committee on Foreign Affairs of the
House of Representatives”.
Subsec. (e). Pub. L. 105–118, § 519(3), added subsec. (e).
1996—Subsec. (a)(12), (13). Pub. L. 104–164 added par. (12) and redesignated former par. (12) as (13).
1985—Subsec. (a). Pub. L. 99–83, § 113(1), substituted “Except as provided in subsection (d) of this section, no”
for “No”.
Subsec. (a)(5). Pub. L. 99–83, § 112(a), designated existing provisions as subpar. (A) and added subpar. (B).
Subsec. (d). Pub. L. 99–83, § 112(b), added subsec. (d) defining “cash flow financing”.
Pub. L. 99–83, § 113(2), added subsec. (d) relating to transmittal of information to Congress.
1981—Subsec. (a). Pub. L. 97–113, in provision preceding par. (1), required transmission of the report no later than
Feb. 1 of each year and substituted provision for annual presentation materials for programs proposed for next fiscal
year for provision for presentation materials for programs proposed for each fiscal year.
Subsec. (a)(1). Pub. L. 97–113 added par. (1) which incorporated provisions of former subsec. (d)(1) of this section.
See subsec. (d) amendment note. Former par. (1) covered in par. (3).
Subsec. (a)(2). Pub. L. 97–113 added par. (2). Former par. (2), which required the report to contain an estimate of
amount of credits and guaranties expected to be extended to each country under sections 2763 and 2764 of this title,
covered in par. (5).
Subsec. (a)(3). Pub. L. 97–113 added par. (3) which incorporated provisions of former par. (1) requiring the report to
contain an estimate of amounts of expected sales to each country under sections 2761 and 2762 of this title, including
detailed explanations of foreign policy and United States national security considerations in expected sales to each
country, and (5) requiring inclusion of an arms control impact statement for each purchasing country, covering (A) an
analysis of the relationship between expected sales to each country and arms control efforts relating to that country,
and (B) the impact of such expected sales on the stability of the region that included the purchasing country. Former
par. (3) redesignated (7).
Subsec. (a)(4). Pub. L. 97–113 added par. (4) which incorporated provisions of former subsec. (e), which had required
executive estimates of international arms traffic, including estimates on an annual basis of the sale and delivery of
weapons and weapons-related defense equipment by all major arms suppliers to all major recipient countries during
the preceding three years. Former par. (4) covered in par. (8).
Subsec. (a)(5). Pub. L. 97–113 added par. (5) which incorporated provisions of former par. (2) requiring the report to
contain an estimate of amount of credits and guaranties expected to be extended to each country under sections 2763
and 2764 of this title. Former par. (5) covered in par. (3).
Subsec. (a)(6). Pub. L. 97–113 added par. (6).
Subsec. (a)(7). Pub. L. 97–113 redesignated former par. (3) as (7).
Subsec. (a)(8). Pub. L. 97–113 added par. (8), which incorporated provisions of former par. (4), requiring the report to
contain a list of all findings in effect on date of its transmission made by the President pursuant to section 2753 (a)(1)
of this title, together with a full and complete justification for each finding, explaining how sales to each country with
respect to which findings were made would strengthen the security of the United States and promote world peace.
Subsecs. (a)(9) to (12). Pub. L. 97–113 added pars. (9) to (12).
Subsec. (b). Pub. L. 97–113 substituted “Committee on Foreign Affairs” for “Committee on International Relations”,
and “with respect to any information” for “with respect to any estimate”.
Subsec. (c). Pub. L. 97–113 substituted “Whenever the President” for “In the event the President”.
Subsec. (d). Pub. L. 97–113 incorporated in subsec. (a) introductory text and subsec. (a)(1), provisions of former
subsec. (d)(1) which had required transmission to the Speaker of the House and the chairman of the Senate Foreign
Relations Committee the Arms Sales Proposal covering sales and licensed commercials exports under this chapter
(other than such transactions to members of North Atlantic Treaty Organization, Japan, Australia, and New Zealand)
of major weapons or weapons-related defense equipment for $7,000,000 or more, or of any other weapons or similar
equipment for $25,000,000 or more, which were eligible for approval during fiscal year beginning October 1 of such
year and had required identification in the reports of sales and licensed commercial exports deemed most likely actually
to result in issuance of a letter of offer or of an export license during such fiscal year, and subsec. (d)(2) which had
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required Presidential six month written notifications of Congress of any change in the Arms Sales Proposal for such
fiscal year, together with reasons therefor.
Subsec. (e). Pub. L. 97–113 incorporated, in subsec. (a) introductory text and subsec. (a)(4), provisions of former
subsec. (e) which had required transmission to Congress on or before Nov. 15 of each year executive estimates
of international arms traffic, including estimates on an annual basis of the sale and delivery of weapons and
weapons-related defense equipment by all major arms suppliers to all major recipient countries during the preceding
three years.
1980—Subsec. (a)(3) to (5). Pub. L. 96–533, § 104(c), added par. (3) and redesignated former pars. (3) and (4) as (4)
and (5), respectively.
Subsec. (d)(1). Pub. L. 96–533, § 107(d), included coverage of licensed commercial exports and substituted “letter of
offer or of an export license” for “letter of offer”.
1979—Subsec. (d). Pub. L. 96–92, § 13(1)–(4), designated existing provision as par. (1), substituted “major weapons
or weapons-related defense equipment” for “major defense equipment” and “weapons or weapons-related defense
equipment” for “defense articles or defense services”, required identification of sales likely to result in issuance of a
letter of offer in the furnished reports, and added par. (2).
Subsec. (e). Pub. L. 96–92, § 14, added subsec. (e).
1978—Subsec. (c). Pub. L. 95–384, § 18(b), substituted “subsection (a) or (b) of this section” for “this section”.
Subsec. (d). Pub. L. 95–384, § 18(a), added subsec. (d).
Change of Name
Committee on International Relations of House of Representatives changed to Committee on Foreign Affairs of House
of Representatives by House Resolution No. 6, One Hundred Tenth Congress, Jan. 5, 2007.
Effective Date of 1985 Amendment
Amendment by Pub. L. 99–83 effective Oct. 1, 1985, see section 1301 of Pub. L. 99–83, set out as a note under section
2151–1 of this title.
Delegation of Functions
Functions of President under this section delegated to Secretary of State, with Secretary of Defense and Director of
Arms Control and Disarmament Agency required to assist in preparation of materials for presentation to Congress,
by section 1(g) of Ex. Ord. No. 11958, Jan. 18, 1977, 42 F.R. 4311, as amended, set out as a note under section 2751
of this title.
.....................................
§ 2766. Security assistance surveys
(a) Statement of findings and policy
The Congress finds that security assistance surveys prepared by the United States for foreign countries
have had a significant impact on subsequent military procurement decisions of those countries. It is
the policy of the United States that the results of security assistance surveys conducted by the United
States clearly do not represent a commitment by the United States to provide any military equipment
to any foreign country. Further, recommendations in such surveys should be consistent with the arms
export control policy provided for in this chapter.
(b) Reporting requirements
As part of the quarterly report required by section 2776 (a) of this title, the President shall include a
list of all security assistance surveys authorized during the preceding calendar quarter, specifying the
country with respect to which the survey was or will be conducted, the purpose of the survey, and the
number of United States Government personnel who participated or will participate in the survey.
(c) Submission of surveys to Congress
Upon a request of the chairman of the Committee on Foreign Affairs of the House of Representatives
or the chairman of the Committee on Foreign Relations of the Senate, the President shall submit to that
committee copies of security assistance surveys conducted by United States Government personnel.
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(d) “Security assistance surveys” defined
As used in this section, the term “security assistance surveys” means any survey or study conducted in
a foreign country by United States Government personnel for the purpose of assessing the needs of that
country for security assistance, and includes defense requirement surveys, site surveys, general surveys
or studies, and engineering assessment surveys.
(Pub. L. 90–629, ch. 2, § 26, as added Pub. L. 95–384, § 19, Sept. 26, 1978, 92 Stat. 740; amended Pub.
L. 99–83, title I, § 114, Aug. 8, 1985, 99 Stat. 198; Pub. L. 103–437, § 9(a)(7), Nov. 2, 1994, 108 Stat.
4588.)
References in Text
This chapter, referred to in subsec. (a), was in the original “this Act”, meaning Pub. L. 90–629, Oct. 22, 1968, 82 Stat.
1321, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title
note set out under section 2751 of this title and Tables.
Amendments
1994—Subsec. (c). Pub. L. 103–437 substituted “Foreign Affairs” for “International Relations”.
1985—Pub. L. 99–83, § 114(a)(1), substituted “Security assistance” for “Defense requirement” in section catchline.
Subsecs. (a), (b). Pub. L. 99–83, § 114(a)(2), substituted “security assistance” for “defense requirement” wherever
appearing.
Subsec. (c). Pub. L. 99–83, § 114(a)(2), (b), substituted “submit to that committee copies of security assistance surveys”
for “grant that committee access to defense requirement surveys”.
Subsec. (d). Pub. L. 99–83, § 114(a)(3), added subsec. (d).
Effective Date of 1985 Amendment
Amendment by Pub. L. 99–83 effective Oct. 1, 1985, see section 1301 of Pub. L. 99–83, set out as a note under section
2151–1 of this title.
.....................................
§ 2767. Authority of President to enter into cooperative projects with friendly foreign
countries
(a) Authority of President
The President may enter into a cooperative project agreement with the North Atlantic Treaty
Organization or with one or more member countries of that Organization.
(b) Definitions
As used in this section—
(1) the term “cooperative project”, in the case of an agreement with the North Atlantic Treaty
Organization or with one or more member countries of that Organization, means a jointly managed
arrangement, described in a written agreement among the parties, which is undertaken in order to
further the objectives of standardization, rationalization, and interoperability of the armed forces
of North Atlantic Treaty Organization member countries and which provides—
(A) for one or more of the other participants to share with the United States the costs of
research on and development, testing, evaluation, or joint production (including follow-on
support) of certain defense articles;
(B) for concurrent production in the United States and in another member country of a defense
article jointly developed in accordance with subparagraph (A); or
(C) for procurement by the United States of a defense article or defense service from another
member country or for procurement by the United States of munitions from the North Atlantic
Treaty Organization or a subsidiary of such organization;
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(2) the term “cooperative project”, in the case of an agreement entered into under subsection (j)
of this section, means a jointly managed arrangement, described in a written agreement among the
parties, which is undertaken in order to enhance the ongoing multinational effort of the participants
to improve the conventional defense capabilities of the participants and which provides—
(A) for one or more of the other participants to share with the United States the costs of
research on and development, testing, evaluation, or joint production (including follow-on
support) of certain defense articles;
(B) for concurrent production in the United States and in the country of another participant
of a defense article jointly developed in accordance with subparagraph (A); or
(C) for procurement by the United States of a defense article or defense service from another
participant to the agreement; and
(3) the term “other participant” means a participant in a cooperative project other than the United
States.
(c) Agreements for equitable share of costs; limiting nature of agreements
Each agreement for a cooperative project shall provide that the United States and each of the other
participants will contribute to the cooperative project its equitable share of the full cost of such
cooperative project and will receive an equitable share of the results of such cooperative project. The
full costs of such cooperative project shall include overhead costs, administrative costs, and costs of
claims. The United States and the other participants may contribute their equitable shares of the full
cost of such cooperative project in funds or in defense articles or defense services needed for such
cooperative project. Military assistance and financing received from the United States Government may
not be used by any other participant to provide its share of the cost of such cooperative project. Such
agreements shall provide that no requirement shall be imposed by a participant for worksharing or other
industrial or commercial compensation in connection with such agreement that is not in accordance
with such agreement.
(d) Contractual or other obligation; preconditions
The President may enter into contracts or incur other obligations for a cooperative project on behalf
of the other participants, without charge to any appropriation or contract authorization, if each of the
other participants in the cooperative project agrees
(1) to pay its equitable share of the contract or other obligation, and
(2) to make such funds available in such amounts and at such times as may be required by
the contract or other obligation and to pay any damages and costs that may accrue from the
performance of or cancellation of the contract or other obligation in advance of the time such
payments, damages, or costs are due.
(e) Waiver of charges; administrative surcharges
(1) For those cooperative projects entered into on or after the effective date 1 of the International
Security and Development Cooperation Act of 1985, the President may reduce or waive the charge
or charges which would otherwise be considered appropriate under section 2761 (e) of this title in
connection with sales under sections 2761 and 2762 of this title when such sales are made as part of
such cooperative project, if the other participants agree to reduce or waive corresponding charges.
(2) Notwithstanding provisions of section 2761 (e)(1)(A) and section 2792 (b) of this title,
administrative surcharges shall not be increased on other sales made under this chapter in order
to compensate for reductions or waivers of such surcharges under this section. Funds received
pursuant to such other sales shall not be available to reimburse the costs incurred by the United
States Government for which reduction or waiver is approved by the President under this section.
(f) Transmission of numbered certification to Congress respecting proposed agreement;
contents
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Not less than 30 days before a cooperative project agreement is signed on behalf of the United States, the
President shall transmit to the Speaker of the House of Representatives, the chairman of the Committee
on Foreign Relations of the Senate, and the chairman of the Committee on Armed Services of the
Senate, a numbered certification with respect to such proposed agreement, setting forth—
(1) a detailed description of the cooperative project with respect to which the certification is made;
(2) an estimate of the quantity of the defense articles expected to be produced in furtherance of
such cooperative project;
(3) an estimate of the full cost of the cooperative project, with an estimate of the part of the full cost
to be incurred by the United States Government, including an estimate of the costs as a result of
waivers of section 2 2761(e)(1)(A) and 2792(b) of this title, for its participation in such cooperative
project and an estimate of that part of the full costs to be incurred by the other participants;
(4) an estimate of the dollar value of the funds to be contributed by the United States and each of
the other participants on behalf of such cooperative project;
(5) a description of the defense articles and defense services expected to be contributed by the
United States and each of the other participants on behalf of such cooperative project;
(6) a statement of the foreign policy and national security benefits anticipated to be derived from
such cooperative project; and
(7) to the extent known, whether it is likely that prime contracts will be awarded to particular
prime contractors or that subcontracts will be awarded to particular subcontractors to comply with
the proposed agreement.
(g) Reporting and certification requirements applicable
In the case of a cooperative project with a North Atlantic Treaty Organization country, section,3 2776(b)
of this title shall not apply to sales made under section 2761 or 2762 of this title and to production
and exports made pursuant to cooperative projects under this section, and section 2776 (c) of this title
shall not apply to the issuance of licenses or other approvals under section 2778 of this title, if such
sales are made, such production and exports ensue, or such licenses or approvals are issued, as part
of a cooperative project.
(h) Statutory provisions applicable to sales
The authority under this section is in addition to the authority under sections 2761 and 2762 of this title
and under any other provision of law.
(i) Agreements entered into before October 1, 1985
(1) With the approval of the Secretary of State and the Secretary of Defense, a cooperative
agreement which was entered into by the United States before the effective date 4 of the amendment
to this section made by the International Security and Development Cooperation Act of 1985 and
which meets the requirements of this section as so amended may be treated on and after such date
as having been made under this section as so amended.
(2) Notwithstanding the amendment made 5 to this section made by the International Security and
Development Cooperation Act of 1985, projects entered into under the authority of this section
before the effective date 4 of that amendment may be carried through to conclusion in accordance
with the terms of this section as in effect immediately before the effective date 4 of that amendment.
(j) Cooperative project agreements with friendly foreign countries not members of NATO
(1) The President may enter into a cooperative project agreement with any friendly foreign
country not a member of the North Atlantic Treaty Organization under the same general terms and
conditions as the President is authorized to enter into such an agreement with one or more member
countries of the North Atlantic Treaty Organization if the President determines that the cooperative
project agreement with such country would be in the foreign policy or national security interests
of the United States.
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(2) Omitted.
Footnotes
1 See References in Text note below.
2 So in original. Probably should be “sections”.
3 So in original. The comma probably should not appear.
4 See References in Text note below.
5 So in original. The word “made” probably should not appear.
(Pub. L. 90–629, ch. 2, § 27, as added Pub. L. 96–92, § 15, Oct. 29, 1979, 93 Stat. 706; amended Pub.
L. 99–83, title I, § 115(a), Aug. 8, 1985, 99 Stat. 199; Pub. L. 99–145, title XI, § 1102(a)(1), (5), Nov. 8,
1985, 99 Stat. 708, 710; Pub. L. 99–661, div. A, title XI, § 1103(a), title XIII, § 1342(e), Nov. 14, 1986,
100 Stat. 3962, 3991; Pub. L. 100–180, div. A, title X, § 1022, Dec. 4, 1987, 101 Stat. 1144; Pub. L.
102–484, div. A, title VIII, § 843(a), Oct. 23, 1992, 106 Stat. 2468.)
References in Text
The effective date of the International Security and Development Cooperation Act of 1985 and the effective date of
the amendment to this section made by the International Security and Development Cooperation Act of 1985, referred
to in subsecs. (e)(1) and (i), respectively, is October 1, 1985, see section 1301 of Pub. L. 99–83, set out as an Effective
Date of 1985 Amendment note under section 2151–1 of this title.
This chapter, referred to in subsec. (e)(2), was in the original “this Act”, meaning Pub. L. 90–629, Oct. 22, 1968, 82
Stat. 1321, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short
Title note set out under section 2751 of this title and Tables.
The amendment made to this section made by the International Security and Development Cooperation Act of 1985,
referred to in subsec. (i), means the general amendment of this section by section 115(a) of Pub. L. 99–83. See 1985
Amendment note below.
Codification
Subsec. (j)(2) of this section, which required the President to submit to certain committees of Congress an annual
report specifying countries eligible, and criteria used to determine eligibility, for participation in cooperative project
agreements under subsec. (j)(1) of this section, terminated, effective May 15, 2000, pursuant to section 3003 of Pub.
L. 104–66, as amended, set out as a note under section 1113 of Title 31, Money and Finance. See, also, page 39 of
House Document No. 103–7.
Amendments
1992—Subsec. (c). Pub. L. 102–484 substituted “costs, administrative costs, and costs of claims” for “and
administrative costs”.
1987—Subsec. (b)(1)(C). Pub. L. 100–180 inserted “or for procurement by the United States of munitions from the
North Atlantic Treaty Organization or a subsidiary of such organization” after “member country”.
1986—Pub. L. 99–661, § 1342(e), repealed section 1102(a)(1) of Pub. L. 99–145 and the amendments made by that
section, and provided that this section shall apply as if that section had never been enacted. See 1985 Amendments
note below.
Pub. L. 99–661, § 1103(a)(2), substituted “Authority of President to enter into cooperative projects with friendly
foreign countries” for “North Atlantic Treaty Organization cooperative projects” in section catchline.
Subsec. (b)(1). Pub. L. 99–661, § 1103(a)(1)(A)(i), inserted “, in the case of an agreement with the North Atlantic
Treaty Organization or with one or more member countries of that Organization,” in introductory provisions.
Subsec. (b)(2), (3). Pub. L. 99–661, § 1103(a)(1)(A)(ii)–(iv), added par. (2) and redesignated former par. (2) as (3).
Subsec. (f)(3). Pub. L. 99–661, § 1103(a)(1)(B), inserted “, including an estimate of the costs as a result of waivers
of section 2761 (e)(1)(A) and 2792 (b) of this title,”.
Subsec. (g). Pub. L. 99–661, § 1103(a)(1)(C), substituted “In the case of a cooperative project with a North Atlantic
Treaty Organization country, section,” for “Section”.
Subsec. (j). Pub. L. 99–661, § 1103(a)(1)(D), added subsec. (j).
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TITLE 22 - Section 2767a - Repealed.]
NB: This unofficial compilation of the U.S. Code is current as of Jan. 4, 2012 (see http://www.law.cornell.edu/uscode/uscprint.html).
1985—Pub. L. 99–83 amended section generally, substituting in subsec. (a) provisions relating to authority of the
President, for provisions defining “cooperative project”, substituting in subsec. (b) provisions defining “cooperative
project” and “other participant”, for provisions relating to reduction or waiver of charges, sales not subject to
compensatory increases in administrative surcharges, and contribution requirements, substituting in subsec. (c)
provisions relating to agreements for equitable share of costs and limiting the nature of such agreements, for provisions
relating to transmission of numbered certification of proposed agreement, contents of such certification, and statutory
provisions applicable to sales, and adding subsecs. (d) to (i).
Pub. L. 99–145, § 1102(a)(1), which enacted a general amendment of this section similar to that provided in Pub. L.
99–83 was repealed. See 1986 Amendments note above and former section 1105(a)(5) of Pub. L. 99–145 set out as
a Repeals; Effective Date note under section 2752 of this title.
Effective Date of 1985 Amendment
Amendment by Pub. L. 99–83 effective Oct. 1, 1985, see section 1301 of Pub. L. 99–83, set out as a note under section
2151–1 of this title.
Delegation of Functions
Functions of President under this section delegated to Secretary of Defense, with Secretary of Defense required to
consult with Secretary of State in implementing delegated functions, by section 1(f) of Ex. Ord. No. 11958, Jan. 18,
1977, 42 F.R. 4311, as amended, set out as a note under section 2751 of this title.
Assessment of Risk Associated With Development of Major Weapon Systems
To Be Procured Under Cooperative Projects With Friendly Foreign Countries
Pub. L. 112–81, div. A, title VIII, § 836, Dec. 31, 2011, 125 Stat. 1508, provided that:
“(a) Assessment of Risk Required.—
“(1) In general.—Not later than two days after the President transmits a certification to Congress pursuant to section
27(f) of the Arms Export Control Act (22 U.S.C. 2767 (f)) regarding a proposed cooperative project agreement that is
expected to result in the award of a Department of Defense contract for the engineering and manufacturing development
of a major weapon system, the Secretary of Defense shall submit to the Chairmen of the Committees on Armed Services
of the Senate and the House of Representatives a report setting forth a risk assessment of the proposed cooperative
project.
“(2) Preparation.—The Secretary shall prepare each report required by paragraph (1) in consultation with the Under
Secretary of Defense for Acquisition, Technology, and Logistics, the Assistant Secretary of Defense for Research and
Engineering, and the Director of Cost Assessment and Program Evaluation of the Department of Defense.
“(b) Elements.—The risk assessment on a cooperative project under subsection (a) shall include the following:
“(1) An assessment of the design, technical, manufacturing, and integration risks associated with developing and
procuring the weapon system to be procured under the cooperative project.
“(2) A statement identifying any termination liability that would be incurred under the development contract to be
entered into under subsection (a)(1), and a statement of the extent to which such termination liability would not be
fully funded by appropriations available or sought in the fiscal year in which the agreement for the cooperative project
is signed on behalf of the United States.
“(3) An assessment of the advisability of incurring any unfunded termination liability identified under paragraph (2)
given the risks identified in the assessment under paragraph (1).
“(4) A listing of which, if any, requirements associated with the oversight and management of a major defense
acquisition program (as prescribed under Department of Defense Instruction 5000.02 or related authorities) will be
waived, or in any way modified, in carrying out the development contract to be entered into under [subsection] (a)(1),
and a full explanation why such requirements need to be waived or modified.
“(c) Definitions.—In this section:
“(1) The term ‘engineering and manufacturing development’ has the meaning given that term in Department of Defense
Instruction 5000.02.
“(2) The term ‘major weapon system’ has the meaning given that term in section 2379 (f) of title 10, United States
Code.”
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TITLE 22 - Section 2768 - Repealed.]
NB: This unofficial compilation of the U.S. Code is current as of Jan. 4, 2012 (see http://www.law.cornell.edu/uscode/uscprint.html).
.....................................
§ 2767a. Repealed. Pub. L. 101–189, div. A, title IX, § 931(d)(2), Nov. 29, 1989, 103 Stat. 1535
Section, Pub. L. 99–661, div. A, title XI, § 1105, Nov. 14, 1986, 100 Stat. 3965; Pub. L. 100–456,
div. A, title X, § 1007, Sept. 29, 1988, 102 Stat. 2040, related to cooperative research and
development with major non-NATO allies. See section 2350a of Title 10, Armed Forces.
.....................................
§ 2768. Repealed. Pub. L. 104–106, div. A, title X, § 1064(a), Feb. 10, 1996, 110 Stat. 445
Section, Pub. L. 90–629, ch. 2, § 28, as added Pub. L. 96–92, § 16(a), Oct. 29, 1979, 93 Stat. 708;
amended Pub. L. 97–113, title I, § 101(b), Dec. 29, 1981, 95 Stat. 1520; Pub. L. 100–461, title V,
§ 588(a), Oct. 1, 1988, 102 Stat. 2268–51, related to reports on price and availability estimates.
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TITLE 22 - Section 2769 - Foreign military construction sales
NB: This unofficial compilation of the U.S. Code is current as of Jan. 4, 2012 (see http://www.law.cornell.edu/uscode/uscprint.html).
SUBCHAPTER II–A—FOREIGN MILITARY CONSTRUCTION SALES
.....................................
§ 2769. Foreign military construction sales
The President may sell design and construction services to any eligible foreign country or
international organization if such country or international organization agrees to pay in United
States dollars not less than the full cost to the United States Government of furnishing such services.
Payment shall be made to the United States Government in advance of the performance of such
services by officers or employees of the United States Government. The President may, without
requirement for charge to any appropriation or contract authorization otherwise provided, enter into
contracts for the procurement of design and construction services for sale under this section if such
country or international organization provides the United States Government with a dependable
undertaking
(1) to pay the full amount of such contract which will assure the United States Government against
any loss on the contract, and
(2) to make funds available in such amounts and at such time as may be required to meet the
payments required by the contract and any damages and costs that may accrue from the cancellation
of such contract, in advance of the time such payments, damages, or costs are due.
(Pub. L. 90–629, ch. 2A, § 29, as added Pub. L. 96–533, title I, § 105(a), Dec. 16, 1980, 94 Stat. 3133.)
Delegation of Functions
Functions of President under this section delegated to Secretary of Defense by section 1(d) of Ex. Ord. No. 11958,
Jan. 18, 1977, 42 F.R. 4311, as amended, set out as a note under section 2751 of this title.
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TITLE 22 - Section 2770 - General authority
NB: This unofficial compilation of the U.S. Code is current as of Jan. 4, 2012 (see http://www.law.cornell.edu/uscode/uscprint.html).
SUBCHAPTER II–B—SALES TO UNITED STATES COMPANIES FOR
INCORPORATION INTO END ITEMS
.....................................
§ 2770. General authority
(a) Sale of defense articles and services by President to United States companies; restriction on
performance of services; reimbursement credited to selling agency
Subject to the conditions specified in subsection (b) of this section, the President may, on a negotiated
contract basis, under cash terms
(1) sell defense articles at not less than their estimated replacement cost (or actual cost in the
case of services), or
(2) procure or manufacture and sell defense articles at not less than their contract or manufacturing
cost to the United States Government, to any United States company for incorporation into end
items (and for concurrent or follow-on support) to be sold by such a company either
(i) on a direct commercial basis to a friendly foreign country or international
organization pursuant to an export license or approval under section 2778 of this title or
(ii) in the case of ammunition parts subject to subsection (b) of this section, using
commercial practices which restrict actual delivery directly to a friendly foreign country
or international organization pursuant to approval under section 2778 of this title. The
President may also sell defense services in support of such sales of defense articles,
subject to the requirements of this subchapter: Provided, however, That such services
may be performed only in the United States. The amount of reimbursement received from
such sales shall be credited to the current applicable appropriation, fund, or account of
the selling agency of the United States Government.
(b) Conditions of sale
Defense articles and defense services may be sold, procured and sold, or manufactured and sold,
pursuant to subsection (a) of this section only if
(1) the end item to which the articles apply is to be procured for the armed forces of a friendly
country or international organization,
(2) the articles would be supplied to the prime contractor as government-furnished equipment or
materials if the end item were being procured for the use of the United States Armed Forces, and
(3) the articles and services are available only from United States Government sources or are not
available to the prime contractor directly from United States commercial sources at such times as
may be required to meet the prime contractor’s delivery schedule.
(c) “Defense articles” and “defense services” defined
For the purpose of this section, the terms “defense articles” and “defense services” mean defense articles
and defense services as defined in section 2794 (3) and (4) of this title.
(Pub. L. 90–629, ch. 2B, § 30, as added Pub. L. 97–392, § 1, Dec. 29, 1982, 96 Stat. 1962; amended Pub.
L. 101–165, title IX, § 9097, Nov. 21, 1989, 103 Stat. 1150.)
Amendments
1989—Subsec. (a). Pub. L. 101–165 inserted “either (i)” after “such a company” in first sentence and inserted before
period at end of first sentence “or (ii) in the case of ammunition parts subject to subsection (b) of this section, using
commercial practices which restrict actual delivery directly to a friendly foreign country or international organization
pursuant to approval under section 2778 of this title”.
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TITLE 22 - CHAPTER 39 - SUBCHAPTER II-C
EXCHANGE OF TRAINING AND RELATED SUPPORT
NB: This unofficial compilation of the U.S. Code is current as of Jan. 4, 2012 (see http://www.law.cornell.edu/uscode/uscprint.html).
Delegation of Functions
Functions of President under this section delegated to Secretary of Defense by section 1(d) of Ex. Ord. No. 11958,
Jan. 18, 1977, 42 F.R. 4311, as amended, set out as a note under section 2751 of this title.
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TITLE 22 - Section 2770a - Exchange of training and related support
NB: This unofficial compilation of the U.S. Code is current as of Jan. 4, 2012 (see http://www.law.cornell.edu/uscode/uscprint.html).
SUBCHAPTER II–C—EXCHANGE OF TRAINING AND RELATED SUPPORT
.....................................
§ 2770a. Exchange of training and related support
(a) Authorization; eligibility; scope
Subject to subsection (b) of this section, the President may provide training and related support to
military and civilian defense personnel of a friendly foreign country or an international organization.
Such training and related support shall be provided by a Secretary of a military department and may
include the provision of transportation, food services, health services, and logistics and the use of
facilities and equipment.
(b) Reciprocal arrangements; reimbursement
Training and related support may be provided under this section only pursuant to an agreement or other
arrangement providing for the provision by the recipient foreign country or international organization,
on a reciprocal basis, of comparable training and related support to military and civilian personnel
under the jurisdiction of the Secretary of the military department providing the training and related
support under this section. Such reciprocal training and related support must be provided within a
reasonable period of time (which may not be more than one year) of the provision of training and related
support by the United States. To the extent that a foreign country or international organization to which
training and related support is provided under this section does not provide such comparable training
and related support to the United States within a reasonable period of time, that country or international
organization shall be required to reimburse the United States for the full costs of the training and related
support provided by the United States.
(c) Regulations
Training and related support under this section shall be provided under regulations prescribed by the
President.
(d) Report to Congress
Not later than February 1 of each year, the President shall submit to the Congress a report on the
activities conducted pursuant to this section during the preceding fiscal year, including the estimated full
costs of the training and related support provided by the United States to each country and international
organization and the estimated value of the training and related support provided to the United States
by that country or international organization.
(Pub. L. 90–629, ch. 2C, § 30A, as added Pub. L. 99–83, title I, § 116, Aug. 8, 1985, 99 Stat. 201.)
Effective Date
Section effective Oct. 1, 1985, see section 1301 of Pub. L. 99–83, set out as an Effective Date of 1985 Amendment
note under section 2151–1 of this title.
Delegation of Functions
Functions of President under this section delegated to Secretary of Defense by section 1(d) of Ex. Ord. No. 11958,
Jan. 18, 1977, 42 F.R. 4311, as amended, set out as a note under section 2751 of this title.
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TITLE 22 - Section 2771 - Military sales authorizations and ceilings
NB: This unofficial compilation of the U.S. Code is current as of Jan. 4, 2012 (see http://www.law.cornell.edu/uscode/uscprint.html).
SUBCHAPTER III—MILITARY EXPORT CONTROLS
.....................................
§ 2771. Military sales authorizations and ceilings
(a) Authorization for foreign military sales credit and guarantee program
There are authorized to be appropriated to the President to carry out this chapter $5,371,000,000 for
fiscal year 1986 and $5,371,000,000 for fiscal year 1987. Credits may not be extended under section
2763 of this title in an amount, and loans may not be guaranteed under section 2764 (a) of this title in a
principal amount, which exceeds any maximum amount which may be established with respect to such
credits or such loan guarantees in legislation appropriating funds to carry out this chapter. Unobligated
balances of funds made available pursuant to this section are hereby authorized to be continued available
by appropriations legislation to carry out this chapter.
(b) Aggregate ceilings on credit sales; availability at concessional rates of interest
(1) The total amount of credits extended under section 2763 of this title shall not exceed
$5,371,000,000 for fiscal year 1986 and $5,371,000,000 for fiscal year 1987.
(2) Of the aggregate amount of financing provided under this section, not more than $553,900,000
for fiscal year 1986 and not more than $553,900,000 for fiscal year 1987 may be made available
at concessional rates of interest. If a country is released from its contractual liability to repay the
United States Government with respect to financing provided under this section, such financing
shall not be considered to be financing provided at concessional rates of interest for purposes of
the limitation established by this paragraph.
(c) Interest rates
Loans available under section 2763 of this title shall be provided at rates of interest that are not less
than the current average market yield on outstanding marketable obligations of the United States of
comparable maturities.
(Pub. L. 90–629, ch. 3, § 31, Oct. 22, 1968, 82 Stat. 1324; Pub. L. 91–672, § 2, Jan. 12, 1971, 84 Stat.
2053; Pub. L. 92–226, pt. IV, § 401(a), (b), Feb. 7, 1972, 86 Stat. 32; Pub. L. 93–189, § 25(5), (6), Dec.
17, 1973, 87 Stat. 730; Pub. L. 93–559, § 45(a)(6), (7), Dec. 30, 1974, 88 Stat. 1815; Pub. L. 94–329, title
II, § 210(a)–(c)(1), June 30, 1976, 90 Stat. 740; Pub. L. 95–92, § 19, Aug. 4, 1977, 91 Stat. 623; Pub. L.
95–384, § 20, Sept. 26, 1978, 92 Stat. 741; Pub. L. 96–92, § 17(a), Oct. 29, 1979, 93 Stat. 708; Pub. L.
96–533, title I, §§ 104(d), 105 (b)(3), 106 (a)–(c), Dec. 16, 1980, 94 Stat. 3133–3136; Pub. L. 97–113,
title I, § 105, Dec. 29, 1981, 95 Stat. 1521; Pub. L. 98–151, § 101(b)(2), Nov. 14, 1983, 97 Stat. 969, 970;
Pub. L. 99–83, title I, § 101(a), (b), Aug. 8, 1985, 99 Stat. 193; Pub. L. 101–513, title V, § 596(c), Nov.
5, 1990, 104 Stat. 2062; Pub. L. 104–164, title I, §§ 101, 104 (b)(2)(C), July 21, 1996, 110 Stat. 1422,
1427.)
References in Text
This chapter, referred to in subsec. (a), was in the original “this Act”, meaning Pub. L. 90–629, Oct. 22, 1968, 82 Stat.
1321, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title
note set out under section 2751 of this title and Tables.
Amendments
1996—Subsec. (c). Pub. L. 104–164, § 101, amended subsec. (c) generally. Prior to amendment, subsec. (c) read as
follows: “For fiscal year 1986 and fiscal year 1987, the principal amount of credits provided under section 2763 of
this title at market rates of interest with respect to Greece, the Republic of Korea, the Philippines, Portugal, Spain,
Thailand, and Turkey shall (if and to the extent each country so desires) be repaid in not more than twenty years,
following a grace period of ten years on repayment of principal.”
Subsec. (d). Pub. L. 104–164, § 104(b)(2)(C), struck out subsec. (d) which read as follows: “The aggregate acquisition
cost to the United States of excess defense articles ordered by the President in any fiscal year after fiscal year 1976 for
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TITLE 22 - Section 2771 - Military sales authorizations and ceilings
NB: This unofficial compilation of the U.S. Code is current as of Jan. 4, 2012 (see http://www.law.cornell.edu/uscode/uscprint.html).
delivery to foreign countries or international organizations under the authority of chapter 2 of part II of the Foreign
Assistance Act of 1961 or pursuant to sales under this chapter may not exceed $250,000,000 (exclusive of ships and
their onboard stores and supplies transferred in accordance with law, and of any defense articles with respect to which
the President submits a certification under section 2776 (b) of this title.).”
1990—Subsec. (d). Pub. L. 101–513 inserted “, and of any defense articles with respect to which the President submits
a certification under section 2776 (b) of this title.” after “law”.
1985—Subsec. (a). Pub. L. 99–83, § 101(a), substituted provisions authorizing appropriations of $5,371,000,000 for
fiscal years 1986 and 1987, for provisions authorizing appropriations of $800,000,000 for fiscal years 1982 and 1983.
Subsec. (b). Pub. L. 99–83, § 101(b), amended subsec. (b) generally, substituting provisions relating to maximum
amount of credits authorized for fiscal years 1986 and 1987 and maximum amounts of such credits available at
concessional rates of interest for such years, for provisions relating to maximum amounts of credits (or participations
in credits) and loans guaranteed for fiscal years 1982 and 1983, and credit, etc., programs with respect to specific
countries.
Subsec. (c). Pub. L. 99–83, § 101(b), amended subsec. (c) generally, substituting provisions relating to extended
repayment terms for credits provided for fiscal years 1986 and 1987, for provisions relating to funds made available
for fiscal year 1984 to finance procurement of defense articles, etc., by Israel.
1983—Subsec. (b)(3). Pub. L. 98–151 amended par. (3) generally, substituting provisions authorizing not less than
$1,700,000,000 for fiscal year 1984 as available to Israel, of which not less than $850,000,000 shall be available as
credits under section 2763 of this title, and provisions relating to availability of funds part of the total aggregate credit
ceiling made available to Israel, for provisions authorizing not less than $1,400,000,000 for the fiscal years 1982 and
1983 as available to Israel, of which not less than $550,000,000 for each year shall be available as credits.
Subsec. (b)(5). Pub. L. 98–151 substituted “1984” for “1982 and for the fiscal year 1983”.
Subsec. (b)(6). Pub. L. 98–151 amended par. (6) generally, inserting provisions relating to availability to Egypt for
fiscal year 1984 of not less than $900,000,000 of the total principal amount of loans guaranteed, and substituting
provisions authorizing not less than $465,000,000 for fiscal year 1984, for provisions authorizing not less than
$200,000,000 for fiscal years 1982 and 1983.
Subsec. (c). Pub. L. 98–151 substituted provisions relating to applicability to fiscal year 1984, for provisions relating
to applicability to fiscal years 1982 and 1983, and substituted “$850,000,000” for “$550,000,000”.
1981—Subsec. (a). Pub. L. 97–113, § 105(a), substituted “$800,000,000 for the fiscal year 1982 and $800,000,000 for
the fiscal year 1983” for “$500,000,000 for the fiscal year 1981”.
Subsec. (b). Pub. L. 97–113, § 105(b), prescribed in par. (1) $800,000,000 limit on credits for fiscal years 1982 and
1983, striking out $500,000,000 limit for fiscal year 1981, in par. (2) $3,269,525,000 limit on total principal amount
of guaranteed loans for fiscal years 1982 and 1983, striking out $2,616,000,000 limit for fiscal year 1981, and in par.
(3) $1,400,000,000 minimum for Israel in fiscal years 1982 and 1983, the same sum made available for fiscal year
1981, including requirement of $550,000,000 minimum of such funds for such fiscal years as credits under section
2763 of this title, striking out requirement for Israeli use of $200,000,000 of available funds only for relocation costs
from the Sinai, and added pars. (4) to (7).
Subsec. (c). Pub. L. 97–113, § 105(c)(1)–(3), substituted “fiscal year 1982 and for the fiscal year 1983” for “fiscal year
1981”, “$550,000,000” for “$500,000,000”, and “each such year” for “such year”.
1980—Subsec. (a). Pub. L. 96–533, §§ 104(d), 106 (a), placed a limit on extension of credits and loan guaranties not
to exceed amount established in appropriation of funds to carry out this chapter and substituted “$500,000,000 for the
fiscal year 1981” for “$673,500,000 for the fiscal year 1980”.
Subsec. (b). Pub. L. 96–533, § 106(b), in revising subsec. (b), substituted par. (1) and (2) limits on amount of credits
or participations in credits and loan guaranties for fiscal year 1981 in amounts of $500,000,000 and $2,616,000,000
for prior combined sum limited to $2,235,000,000 for fiscal year 1980 and substituted par. (3) earmarking minimum
of $1,400,000,000 only for Israel for fiscal year 1981, including availability of $200,000,000 for costs associated with
relocation of Israeli forces from the Sinai for prior prescription of minimum sum of $1,000,000,000 as available only
for Israel.
Subsec. (c). Pub. L. 96–533, §§ 105(b)(3), 106 (c), substituted “defense articles, defense services, and design and
construction services” for “defense articles and defense services” in two places, “1981” for “1980” in two places, and
“$500,000,000” for “one-half”.
1979—Subsec. (a). Pub. L. 96–92, § 17(a)(1), substituted “$673,500,000 for the fiscal year 1980” for “$682,000,000
for the fiscal year 1978 and $674,300,000 for the fiscal year 1979”.
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Subsec. (b). Pub. L. 96–92, § 17(a)(2), substituted “$2,235,000,000 for the fiscal year 1980, of which” for
“$2,152,350,000 for the fiscal year 1978 and $2,085,500,000 for the fiscal year 1979, of which amount for each such
year”.
Subsec. (c). Pub. L. 96–92, § 17(a)(3), substituted “fiscal year 1980” for “fiscal year 1979”.
Subsec. (d). Pub. L. 96–92, § 17(a)(4), substituted “$250,000,000” for “$150,000,000”.
1978—Subsec. (a). Pub. L. 95–384, § 20(a), substituted “$682,000,000 for the fiscal year 1978 and $674,300,000 for
the fiscal year 1979” for “$677,000,000 for the fiscal year 1978”.
Subsec. (b). Pub. L. 95–384, § 20(b), substituted “$2,152,350,000 for the fiscal year 1978 and $2,085,500,000 for the
fiscal year 1979, of which amount for each such year” for “$2,102,350,000 for the fiscal year 1978, of which”.
Subsec. (c). Pub. L. 95–384, § 20(c), substituted “fiscal year 1979” for “fiscal year 1978”.
Subsec. (d). Pub. L. 95–384, § 20(d), substituted “$150,000,000” for “$100,000,000”.
1977—Subsec. (a). Pub. L. 95–92, § 19(1), substituted “$677,000,000 for the fiscal year 1978” for “$1,039,000,000
for the fiscal year 1976 and not to exceed $740,000,000 for the fiscal year 1977”.
Subsec. (b). Pub. L. 95–92, § 19(2), substituted “$2,102,350,000 for the fiscal year 1978” for “$2,374,700,000 for
the fiscal year 1976, of which not less than $1,500,000,000 shall be available only for Israel, and shall not exceed
$2,022,100,000 for the fiscal year 1977”.
Subsec. (c). Pub. L. 95–92, § 19(3), substituted “year 1978” for “years 1976 and 1977” and struck out “each” before
“such year”.
1976—Subsec. (a). Pub. L. 94–329, § 210(a), substituted provisions authorizing appropriations not to exceed
$1,039,000,000 for the fiscal year 1976 and not to exceed $740,000,000 for the fiscal year 1977, for provisions
authorizing appropriations not to exceed $405,000,000 for the fiscal year 1975.
Subsec. (b). Pub. L. 94–329, § 210(b), substituted provisions setting out the foreign military sales credit ceiling of
$2,374,700,000 for the fiscal year 1976, of which not less than $1,500,000,000 shall be available only for Israel, and
$2,022,100,000 for the fiscal year 1977, of which not less than $1,000,000,000 shall be available only for Israel,
for provisions setting out such ceiling of $872,500,000 for the fiscal year 1975, of which amount not less than
$300,000,000 shall be available to Israel only, and struck out provisions relating to obligation of $100,000,000 for
financing procurement of defense articles and services by Israel and for release of Israel from contractual liability to
repay United States Government for the defense article and services so financed.
Subsecs. (c), (d). Pub. L. 94–329, § 210(c)(1), added subsecs. (c) and (d).
1974—Subsec. (a). Pub. L. 93–559, § 45(a)(6), substituted “$405,000,000 for the fiscal year 1975” for “$325,000,000
for the fiscal year 1974”.
Subsec. (b). Pub. L. 93–559, § 45(a)(7), substituted “$872,500,000 for the fiscal year 1975” for “$730,000,000 for
the fiscal year 1974” and provided for obligation of $100,000,000 for financing procurement of defense articles and
defense services by Israel and for release of Israel from contractual liability to repay the United States Government
for the defense articles and defense services so financed.
1973—Subsec. (a). Pub. L. 93–189, § 25(5), substituted provision authorizing appropriation of not more than
$325,000,000 for the fiscal year 1974, for provision authorizing appropriation of not more than $400,000,000 for the
fiscal year 1972.
Subsec. (b). Pub. L. 93–189, § 25(6), substituted provisions setting out the foreign military sales credit ceiling of
$730,000,000 for the fiscal year 1974, of which amount not less than $300,000,000 shall be made available to Israel,
for provisions setting out such ceiling of $550,000,000 for the fiscal year 1972, of which amount not less than
$300,000,000 shall be made available to Israel, and such amount to exclude credits covered by guaranties issued under
section 2764 (b) of this title.
1972—Subsec. (a). Pub. L. 92–226, § 401(a), substituted provision authorizing appropriation of not more than
$400,000,000 for the fiscal year 1972, for provisions authorizing appropriation of not more than $250,000,000 for
each of the fiscal years 1970 and 1971.
Subsec. (b). Pub. L. 92–226, § 401(b), substituted provisions setting out the foreign military sales credit ceiling of
$550,000,000 for the fiscal year 1972, of which amount not less than $300,000,000 shall be made available to Israel,
for provisions setting out such ceiling of $340,000,000 for the fiscal years 1970 and 1971.
1971—Subsec. (a). Pub. L. 91–672, § 2(1), substituted provisions authorizing appropriation of not more than
$250,000,000 for each of the fiscal years 1970 and 1971 for provisions authorizing appropriation of not more than
$296,000,000 for the fiscal year 1969.
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NB: This unofficial compilation of the U.S. Code is current as of Jan. 4, 2012 (see http://www.law.cornell.edu/uscode/uscprint.html).
Subsec. (b). Pub. L. 91–672, § 2(2), substituted provisions setting out the foreign military sales credit ceiling of
$340,000,000 for the fiscal years 1970 and 1971 for provisions setting out such ceiling of $296,000,000 for the fiscal
year 1969.
Effective Date of 1985 Amendment
Amendment by Pub. L. 99–83 effective Oct. 1, 1985, see section 1301 of Pub. L. 99–83, set out as a note under section
2151–1 of this title.
Ceilings on Loans for Greece, Sudan, and Turkey, Fiscal Year 1980; Repayment
Period; Grace Period for Repayment of Principal
Section 17(b) of Pub. L. 96–92 provided that: “Of the principal amount of loans guaranteed for the fiscal year 1980
under section 24 of the Arms Export Control Act [section 2764 of this title]—
“(1) with respect to Turkey, not to exceed $50,000,000,
“(2) with respect to Greece, not to exceed $42,000,000, and
“(3) with respect to Sudan, not to exceed $25,000,000,
shall be repaid in not less than 20 years, following a grace period of 10 years on repayment of principal.”
.....................................
§ 2772. Repealed. Pub. L. 102–429, title I, § 112(e), Oct. 21, 1992, 106 Stat. 2195
Section, Pub. L. 90–629, ch. 3, § 32, Oct. 22, 1968, 82 Stat. 1325, prohibited certain military export
financing by Export-Import Bank.
.....................................
§ 2773. Restraint in arms sales to Sub-Saharan Africa
It is the sense of the Congress that the problems of Sub-Saharan Africa are primarily those of
economic development and that United States policy should assist in limiting the development of
costly military conflict in that region. Therefore, the President shall exercise restraint in selling
defense articles and defense services, and in providing financing for sales of defense articles and
defense services, to countries in Sub-Saharan Africa.
(Pub. L. 90–629, ch. 3, § 33, Oct. 22, 1968, 82 Stat. 1325; Pub. L. 91–672, § 3, Jan. 12, 1971, 84 Stat.
2053; Pub. L. 92–226, pt. IV, § 401(c), (d), Feb. 7, 1972, 86 Stat. 32; Pub. L. 93–189, § 25(7)–(9), Dec.
17, 1973, 87 Stat. 731; Pub. L. 93–559, § 45(a)(8), Dec. 30, 1974, 88 Stat. 1815; Pub. L. 96–92, § 18, Oct.
29, 1979, 93 Stat. 709.)
Amendments
1979—Pub. L. 96–92 substituted provisions respecting restraint in arms sales to Sub-Saharan Africa for provisions
imposing regional ceilings on foreign military sales to African countries and Presidential waiver and report thereof
to Congress.
1974—Subsec. (a). Pub. L. 93–559, § 45(a)(8)(A), (B), repealed subsec. (a) which prescribed a ceiling of $150,000,000
in each fiscal year on the total amount of military assistance, credits, participations in credits, guaranteed loans, and
loans and sales under section 7307 of Title 10, for Latin American countries, and redesignated subsec. (b) as (a).
Subsec. (b). Pub. L. 93–559, § 45(a)(8)(B), (C), added subsec. (b) and redesignated former subsec. (b) as (a).
1973—Subsec. (a). Pub. L. 93–189, § 25(7), struck out reference to cash sales pursuant to sections 2761 and 2762 of
this title reference to exclusion of credits covered by guaranties issued under section 2764 (b) of this title, and reference
to the face amount of contracts of guaranty issued under section 2764 (a) and (b) of this title, inserted reference
to the principal amount of loans guaranteed under section 2764 (a) of this title, and substituted “$150,000,000” for
“$100,000,000”.
Subsec. (b). Pub. L. 93–189, § 25(8), struck out reference to cash sales pursuant to sections 2761 and 2762 of this title,
reference to exclusion of credits covered by guaranties issued under section 2764 (b) of this title, and reference to the
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NB: This unofficial compilation of the U.S. Code is current as of Jan. 4, 2012 (see http://www.law.cornell.edu/uscode/uscprint.html).
face amount of contracts of guaranty issued under section 2764 (a) and (b) of this title, and inserted reference to the
principal amount of loans guaranteed under section 2764 (a) of this title.
Subsec. (c). Pub. L. 93–189, § 25(9), struck out subsec. (c) which provided for Presidential waiver of limitations on
amounts authorized under this section and set forth geographical limitations on the aggregate amounts of military
assistance to be made available and percentage deviations from such ceiling amounts.
1972—Subsec. (a). Pub. L. 92–226, § 401(c), substituted “$100,000,000” for “$75,000,000”.
Subsec. (c). Pub. L. 92–226, § 401(d), substituted provisions for waiver of limitations when overriding requirements
of the national security of the United States justify waiver for prior provisions for such a waiver when important to the
security of the United States, required a written report with reasons for findings and statement in detail of expenditures
when in excess of applicable geographical limitations, and prescribed percentage limitation for exceeding aggregate
of geographical ceiling limitation.
1971—Subsec. (a). Pub. L. 91–672, § 3(1), made fiscal year 1969 ceiling of $75,000,000 for Latin American countries
a continuing ceiling applicable in each fiscal year.
Subsec. (b). Pub. L. 91–672, § 3(2), made fiscal year 1969 ceiling of $40,000,000 for African countries a continuing
ceiling applicable in each fiscal year.
.....................................
§ 2774. Foreign military sales credit standards
The President shall establish standards and criteria for credit and guaranty transactions under
sections 2763 and 2764 of this title in accordance with the foreign, national security, and financial
policies of the United States.
(Pub. L. 90–629, ch. 3, § 34, Oct. 22, 1968, 82 Stat. 1325.)
Delegation of Functions
Functions of President under this section delegated to Secretary of State, with prior concurrence of Secretary of Defense
and Secretary of the Treasury required to extent standards and criteria for credit and guaranty transactions are based
upon national security or financial policies, by section 1(h) of Ex. Ord. No. 11958, Jan. 18, 1977, 42 F.R. 4311, as
amended, set out as a note under section 2751 of this title.
.....................................
§ 2775. Foreign military sales to less developed countries
(a) When the President finds that any economically less developed country is diverting development
assistance furnished pursuant to the Foreign Assistance Act of 1961, as amended [22 U.S.C. 2151
et seq.], or sales under the Food for Peace Act, as amended [7 U.S.C. 1691 et seq.], to military
expenditures, or is diverting its own resources to unnecessary military expenditures, to a degree which
materially interferes with its development, such country shall be immediately ineligible for further sales
and guarantees under sections 2761, 2762, 2763, and 2764 of this title, until the President is assured
that such diversion will no longer take place.
(b) Repealed. Pub. L. 93–559, § 45(a)(5), Dec. 30, 1974, 88 Stat. 1814.
(Pub. L. 90–629, ch. 3, § 35, Oct. 22, 1968, 82 Stat. 1325; Pub. L. 93–559, § 45(a)(5), Dec. 30, 1974, 88
Stat. 1814; Pub. L. 110–246, title III, § 3001(b)(1)(A), (2)(T), June 18, 2008, 122 Stat. 1820, 1821.)
References in Text
The Foreign Assistance Act of 1961, as amended, referred to in subsec. (a), is Pub. L. 87–195, Sept. 4, 1961, 75 Stat.
424, as amended, which is classified principally to chapter 32 (§ 2151 et seq.) of this title. For complete classification
of this Act to the Code, see Short Title note set out under section 2151 of this title and Tables.
The Food for Peace Act, as amended, referred to in subsec. (a), is act July 10, 1954, ch. 469, 68 Stat. 454, which is
classified principally to chapter 41 (§ 1691 et seq.) of Title 7, Agriculture. For complete classification of this Act to
the Code, see Short Title note set out under section 1691 of Title 7 and Tables.
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Amendments
2008—Subsec. (a). Pub. L. 110–246 substituted “Food for Peace Act” for “Agricultural Trade Development and
Assistance Act of 1954”.
1974—Subsec. (b). Pub. L. 93–559 repealed subsec. (b) which provided for Presidential reports to Congress respecting
sales and guaranties to less developed countries.
Effective Date of 2008 Amendment
Amendment by Pub. L. 110–246 effective May 22, 2008, see section 4(b) of Pub. L. 110–246, set out as an Effective
Date note under section 8701 of Title 7, Agriculture.
Delegation of Functions
Functions of President under subsec. (a) of this section delegated to Secretary of State by section 1(i) of Ex. Ord. No.
11958, Jan. 18, 1977, 42 F.R. 4311, as amended, set out as a note under section 2751 of this title.
.....................................
§ 2776. Reports and certifications to Congress on military exports
(a) Report by President; contents
The President shall transmit to the Speaker of the House of Representatives and to the chairman of the
Committee on Foreign Relations of the Senate not more than sixty days after the end of each quarter an
unclassified report (except that any material which was transmitted in classified form under subsection
(b)(1) or (c)(1) of this section may be contained in a classified addendum to such report, and any letter
of offer referred to in paragraph (1) of this subsection may be listed in such addendum unless such
letter of offer has been the subject of an unclassified certification pursuant to subsection (b)(1) of this
section, and any information provided under paragraph (11) of this subsection may also be provided
in a classified addendum) containing—
(1) a listing of all letters of offer to sell any major defense equipment for $1,000,000 or more under
this chapter to each foreign country and international organization, by category, if such letters of
offer have not been accepted or canceled;
(2) a listing of all such letters of offer that have been accepted during the fiscal year in which such
report is submitted, together with the total value of all defense articles and defense services sold
to each foreign country and international organization during such fiscal year;
(3) the cumulative dollar amounts, by foreign country and international organization, of sales
credit agreements under section 2763 of this title and guaranty agreements under section 2764 of
this title made during the fiscal year in which such report is submitted;
(4) a numbered listing of all licenses and approvals for the export to each foreign country and
international organization during such fiscal year of commercially sold major defense equipment,
by category, sold for $1,000,000 or more, together with the total value of all defense articles and
defense services so licensed for each foreign country and international organization, setting forth
with respect to the listed major defense equipment—
(A) the items to be exported under the license,
(B) the quantity and contract price of each such item to be furnished, and
(C) the name and address of the ultimate user of each such item;
(5) projections of the dollar amounts, by foreign country and international organization, of sales
expected to be made under sections 2761 and 2762 of this title in the quarter of the fiscal year
immediately following the quarter for which such report is submitted;
(6) a projection with respect to all sales expected to be made to each country and organization for
the remainder of the fiscal year in which such report is transmitted;
(7) a description of each payment, contribution, gift, commission, or fee reported to the Secretary
of State under section 2779 of this title, including
(A) the name of the person who made such payment, contribution, gift, commission, or fee;
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(B) the name of any sales agent or other person to whom such payment, contribution, gift,
commission, or fee was paid;
(C) the date and amount of such payment, contribution, gift, commission, or fee;
(D) a description of the sale in connection with which such payment, contribution, gift,
commission, or fee was paid; and
(E) the identification of any business information considered confidential by the person
submitting it which is included in the report;
(8) a listing of each sale under section 2769 of this title during the quarter for which such report
is made, specifying
(A) the purchaser,
(B) the United States Government department or agency responsible for implementing the
sale,
(C) an estimate of the dollar amount of the sale, and
(D) a general description of the real property facilities to be constructed pursuant to such sale;
(9) a listing of the consents to third-party transfers of defense articles or defense services which
were granted, during the quarter for which such report is submitted, for purposes of section 2753
(a)(2) of this title, the regulations issued under section 2778 of this title, or section 2314 (a)(1)(B)
of this title, if the value (in terms of original acquisition cost) of the defense articles or defense
services to be transferred is $1,000,000 or more;
(10) a listing of all munitions items (as defined in section 2780 (l)(1) of this title) which were sold,
leased, or otherwise transferred by the Department of Defense to any other department, agency, or
other entity of the United States Government during the quarter for which such report is submitted
(including the name of the recipient Government entity and a discussion of what that entity will
do with those munitions items) if—
(A) the value of the munitions items was $250,000 or more; or
(B) the value of all munitions items transferred to that Government department, agency, or
other entity during that quarter was $250,000 or more;
excluding munitions items transferred (i) for disposition or use solely within the United States, or
(ii) for use in connection with intelligence activities subject to reporting requirements under title
V of the National Security Act of 1947 (50 U.S.C. 413 et seq.; relating to congressional oversight
of intelligence activities);
(11) a report on all concluded government-to-government agreements regarding foreign
coproduction of defense articles of United States origin and all other concluded agreements
involving coproduction or licensed production outside of the United States of defense articles of
United States origin (including coproduction memoranda of understanding or agreement) that have
not been previously reported under this subsection, which shall include—
(A) the identity of the foreign countries, international organizations, or foreign firms
involved;
(B) a description and the estimated value of the articles authorized to be produced, and an
estimate of the quantity of the articles authorized to be produced;
(C) a description of any restrictions on third-party transfers of the foreign-manufactured
articles; and
(D) if any such agreement does not provide for United States access to and verification
of quantities of articles produced overseas and their disposition in the foreign country, a
description of alternative measures and controls incorporated in the coproduction or licensing
program to ensure compliance with restrictions in the agreement on production quantities and
third-party transfers; and
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(12) a report on all exports of significant military equipment for which information has been
provided pursuant to section 2778 (i) of this title.
For each letter of offer to sell under paragraphs (1) and (2), the report shall specify
(i) the foreign country or international organization to which the defense article or
service is offered or was sold, as the case may be;
(ii) the dollar amount of the offer to sell or the sale and the number of defense articles
offered or sold, as the case may be;
(iii) a description of the defense article or service offered or sold, as the case may be; and
(iv) the United States Armed Force or other agency of the United States which is making
the offer to sell or the sale, as the case may be.
(b) Letter of offer to sell defense articles, services, design and construction services, or
major equipment; submission of numbered Presidential certification and additional statement;
contents; emergency justification statement; enhancements or upgrades in sensitivity of
technology or capability of major defense articles, equipment, or services
(1) Subject to paragraph (6), in the case of any letter of offer to sell any defense articles or
services under this chapter for $50,000,000 or more, any design and construction services for
$200,000,000 or more, or any major defense equipment for $14,000,000 or more, before such letter
of offer is issued, the President shall submit to the Speaker of the House of Representatives and
to the chairman of the Committee on Foreign Relations of the Senate a numbered certification
with respect to such offer to sell containing the information specified in clauses (i) through (iv)
of subsection (a) of this section, or (in the case of a sale of design and construction services) the
information specified in clauses (A) through (D) of paragraph (9) 1 of subsection (a) of this section,
and a description, containing the information specified in paragraph (8) 1 of subsection (a) of this
section, of any contribution, gift, commission, or fee paid or offered or agreed to be paid in order
to solicit, promote, or otherwise to secure such letter of offer. Such numbered certifications shall
also contain an item, classified if necessary, identifying the sensitivity of technology contained
in the defense articles, defense services, or design and construction services, proposed to be sold,
and a detailed justification of the reasons necessitating the sale of such articles or services in view
of the sensitivity of such technology. In a case in which such articles or services listed on the
Missile Technology Control Regime Annex are intended to support the design, development, or
production of a Category I space launch vehicle system (as defined in section 2797c of this title),
such report shall include a description of the proposed export and rationale for approving such
export, including the consistency of such export with United States missile nonproliferation policy.
Each such numbered certification shall contain an item indicating whether any offset agreement
is proposed to be entered into in connection with such letter of offer to sell (if known on the
date of transmittal of such certification). In addition, the President shall, upon the request of such
committee or the Committee on Foreign Affairs of the House of Representatives, transmit promptly
to both such committees a statement setting forth, to the extent specified in such request—
(A) a detailed description of the defense articles, defense services, or design and construction
services to be offered, including a brief description of the capabilities of any defense article
to be offered;
(B) an estimate of the number of officers and employees of the United States Government
and of United States civilian contract personnel expected to be needed in such country to carry
out the proposed sale;
(C) the name of each contractor expected to provide the defense article, defense service, or
design and construction service proposed to be sold and a description of any offset agreement
with respect to such sale;
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(D) an evaluation, prepared by the Secretary of State in consultation with the Secretary of
Defense and the Director of Central Intelligence, of the manner, if any, in which the proposed
sale would—
(i) contribute to an arms race;
(ii) support international terrorism;
(iii) increase the possibility of an outbreak or escalation of conflict;
(iv) prejudice the negotiation of any arms controls; or
(v) adversely affect the arms control policy of the United States;
(E) the reasons why the foreign country or international organization to which the sale is
proposed to be made needs the defense articles, defense services, or design and construction
services which are the subject of such sale and a description of how such country or
organization intends to use such defense articles, defense services, or design and construction
services;
(F) an analysis by the President of the impact of the proposed sale on the military stocks and
the military preparedness of the United States;
(G) the reasons why the proposed sale is in the national interest of the United States;
(H) an analysis by the President of the impact of the proposed sale on the military capabilities
of the foreign country or international organization to which such sale would be made;
(I) an analysis by the President of how the proposed sale would affect the relative military
strengths of countries in the region to which the defense articles, defense services, or design
and construction services which are the subject of such sale would be delivered and whether
other countries in the region have comparable kinds and amounts of defense articles, defense
services, or design and construction services;
(J) an estimate of the levels of trained personnel and maintenance facilities of the foreign
country or international organization to which the sale would be made which are needed and
available to utilize effectively the defense articles, defense services, or design and construction
services proposed to be sold;
(K) an analysis of the extent to which comparable kinds and amounts of defense articles,
defense services, or design and construction services are available from other countries;
(L) an analysis of the impact of the proposed sale on United States relations with the countries
in the region to which the defense articles, defense services, or design and construction
services which are the subject of such sale would be delivered;
(M) a detailed description of any agreement proposed to be entered into by the United States
for the purchase or acquisition by the United States of defense articles, defense services, design
and construction services, or defense equipment, or other articles, services, or equipment of
the foreign country or international organization in connection with, or as consideration for,
such letter of offer, including an analysis of the impact of such proposed agreement upon
United States business concerns which might otherwise have provided such articles, services,
or equipment to the United States, an estimate of the costs to be incurred by the United
States in connection with such agreement compared with costs which would otherwise have
been incurred, an estimate of the economic impact and unemployment which would result
from entering into such proposed agreement, and an analysis of whether such costs and such
domestic economic impact justify entering into such proposed agreement;
(N) the projected delivery dates of the defense articles, defense services, or design and
construction services to be offered;
(O) a detailed description of weapons and levels of munitions that may be required as support
for the proposed sale; and
(P) an analysis of the relationship of the proposed sale to projected procurements of the same
item.
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NB: This unofficial compilation of the U.S. Code is current as of Jan. 4, 2012 (see http://www.law.cornell.edu/uscode/uscprint.html).
A certification transmitted pursuant to this subsection shall be unclassified, except that the
information specified in clause (ii) and the details of the description specified in clause (iii) of
subsection (a) of this section may be classified if the public disclosure thereof would be clearly
detrimental to the security of the United States, in which case the information shall be accompanied
by a description of the damage to the national security that could be expected to result from public
disclosure of the information. The letter of offer shall not be issued, with respect to a proposed
sale to the North Atlantic Treaty Organization, any member country of such Organization, Japan,
Australia, the Republic of Korea, Israel, or New Zealand, if the Congress, within fifteen calendar
days after receiving such certification, or with respect to a proposed sale to any other country or
organization, if the Congress within thirty calendar days after receiving such certification, enacts a
joint resolution prohibiting the proposed sale, unless the President states in his certification that an
emergency exists which requires such sale in the national security interests of the United States.
If the President states in his certification that an emergency exists which requires the proposed
sale in the national security interest of the United States, thus waiving the congressional review
requirements of this subsection, he shall set forth in the certification a detailed justification for
his determination, including a description of the emergency circumstances which necessitate the
immediate issuance of the letter of offer and a discussion of the national security interests involved.
(2) Any such joint resolution shall be considered in the Senate in accordance with the provisions
of section 601(b) of the International Security Assistance and Arms Export Control Act of 1976,
except that for purposes of consideration of any joint resolution with respect to the North Atlantic
Treaty Organization, any member country of such Organization, Japan, Australia, the Republic of
Korea, Israel, or New Zealand, it shall be in order in the Senate to move to discharge a committee
to which such joint resolution was referred if such committee has not reported such joint resolution
at the end of five calendar days after its introduction.
(3) For the purpose of expediting the consideration and enactment of joint resolutions under
this subsection, a motion to proceed to the consideration of any such joint resolution after it has
been reported by the appropriate committee shall be treated as highly privileged in the House of
Representatives.
(4) In addition to the other information required to be contained in a certification submitted to the
Congress under this subsection, each such certification shall cite any quarterly report submitted
pursuant to section 2768 1 of this title which listed a price and availability estimate, or a request
for the issuance of a letter of offer, which was a basis for the proposed sale which is the subject
of such certification.
(5) (A) If, before the delivery of any major defense article or major defense equipment, or
the furnishing of any defense service or design and construction service, sold pursuant to a
letter of offer described in paragraph (1), the sensitivity of technology or the capability of
the article, equipment, or service is enhanced or upgraded from the level of sensitivity or
capability described in the numbered certification with respect to an offer to sell such article,
equipment, or service, then, at least 45 days before the delivery of such article or equipment
or the furnishing of such service, the President shall prepare and transmit to the chairman of
the Committee on Foreign Affairs of the House of Representatives and the chairman of the
Committee on Foreign Relations of the Senate a report—
(i) describing the manner in which the technology or capability has been enhanced or
upgraded and describing the significance of such enhancement or upgrade; and
(ii) setting forth a detailed justification for such enhancement or upgrade.
(B) The provisions of subparagraph (A) apply to an article or equipment delivered, or
a service furnished, within ten years after the transmittal to the Congress of a numbered
certification with respect to the sale of such article, equipment, or service.
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(C) Subject to paragraph (6), if the enhancement or upgrade in the sensitivity of technology
or the capability of major defense equipment, defense articles, defense services, or design and
construction services described in a numbered certification submitted under this subsection
costs $14,000,000 or more in the case of any major defense equipment, $50,000,000 or more
in the case of defense articles or defense services, or $200,000,000 or more in the case of
design or construction services, then the President shall submit to the Speaker of the House
of Representatives and the chairman of the Committee on Foreign Relations of the Senate a
new numbered certification which relates to such enhancement or upgrade and which shall be
considered for purposes of this subsection as if it were a separate letter of offer to sell defense
equipment, articles, or services, subject to all of the requirements, restrictions, and conditions
set forth in this subsection. For purposes of this subparagraph, references in this subsection
to sales shall be deemed to be references to enhancements or upgrades in the sensitivity of
technology or the capability of major defense equipment, articles, or services, as the case may
be.
(D) For the purposes of subparagraph (A), the term “major defense article” shall be construed
to include electronic devices, which if upgraded, would enhance the mission capability of a
weapons system.
(6) The limitation in paragraph (1) and the requirement in paragraph (5)(C) shall apply in the case
of a letter of offer to sell to a member country of the North Atlantic Treaty Organization (NATO) or
Australia, Japan, the Republic of Korea, Israel, or New Zealand that does not authorize a new sales
territory that includes any country other than such countries only if the letter of offer involves—
(A) the sale of major defense equipment under this chapter for, or the enhancement or upgrade
of major defense equipment at a cost of, $25,000,000 or more, as the case may be; and
(B) the sale of defense articles or services for, or the enhancement or upgrade of defense
articles or services at a cost of, $100,000,000 or more, as the case may be; or
(C) the sale of design and construction services for, or the enhancement or upgrade of design
and construction services at a cost of, $300,000,000 or more, as the case may be.
(c) Application for export license; submission of numbered Presidential certification and
statement to Congress; contents; emergency circumstances; joint resolution; exception;
notification of upgrades
(1) Subject to paragraph (5), in the case of an application by a person (other than with regard to a
sale under section 2761 or section 2762 of this title) for a license for the export of any major defense
equipment sold under a contract in the amount of $14,000,000 or more or of defense articles or
defense services sold under a contract in the amount of $50,000,000 or more (or, in the case of a
defense article that is a firearm controlled under category I of the United States Munitions List,
$1,000,000 or more), before issuing such license the President shall transmit to the Speaker of the
House of Representatives and to the chairman of the Committee on Foreign Relations of the Senate
an unclassified numbered certification with respect to such application specifying
(A) the foreign country or international organization to which such export will be made,
(B) the dollar amount of the items to be exported, and
(C) a description of the items to be exported. Each such numbered certification shall also
contain an item indicating whether any offset agreement is proposed to be entered into in
connection with such export and a description of any such offset agreement. In addition, the
President shall, upon the request of such committee or the Committee on Foreign Affairs of
the House of Representatives, transmit promptly to both such committees a statement setting
forth, to the extent specified in such request, a description of the capabilities of the items
to be exported, an estimate of the total number of United States personnel expected to be
needed in the foreign country concerned in connection with the items to be exported and an
analysis of the arms control impact pertinent to such application, prepared in consultation with
the Secretary of Defense and a description from the person who has submitted the license
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application of any offset agreement proposed to be entered into in connection with such export
(if known on the date of transmittal of such statement). In a case in which such articles or
services are listed on the Missile Technology Control Regime Annex and are intended to
support the design, development, or production of a Category I space launch vehicle system
(as defined in section 2797c of this title), such report shall include a description of the proposed
export and rationale for approving such export, including the consistency of such export
with United States missile nonproliferation policy. A certification transmitted pursuant to this
subsection shall be unclassified, except that the information specified in clause (B) and the
details of the description specified in clause (C) may be classified if the public disclosure
thereof would be clearly detrimental to the security of the United States, in which case the
information shall be accompanied by a description of the damage to the national security that
could be expected to result from public disclosure of the information.
(2) Unless the President states in his certification that an emergency exists which requires the
proposed export in the national security interests of the United States, a license for export described
in paragraph (1)—
(A) in the case of a license for an export to the North Atlantic Treaty Organization, any
member country of that Organization or Australia, Japan, the Republic of Korea, Israel, or
New Zealand, shall not be issued until at least 15 calendar days after the Congress receives
such certification, and shall not be issued then if the Congress, within that 15-day period,
enacts a joint resolution prohibiting the proposed export;
(B) in the case of a license for an export of a commercial communications satellite for launch
from, and by nationals of, the Russian Federation, Ukraine, or Kazakhstan, shall not be issued
until at least 15 calendar days after the Congress receives such certification, and shall not be
issued then if the Congress, within that 15-day period, enacts a joint resolution prohibiting
the proposed export; and
(C) in the case of any other license, shall not be issued until at least 30 calendar days after
the Congress receives such certification, and shall not be issued then if the Congress, within
that 30-day period, enacts a joint resolution prohibiting the proposed export.
If the President states in his certification that an emergency exists which requires the proposed
export in the national security interests of the United States, thus waiving the requirements of
subparagraphs (A) and (B) of this paragraph, he shall set forth in the certification a detailed
justification for his determination, including a description of the emergency circumstances which
necessitate the immediate issuance of the export license and a discussion of the national security
interests involved.
(3) (A) Any joint resolution under this subsection shall be considered in the Senate in accordance
with the provisions of section 601(b) of the International Security Assistance and Arms Export
Control Act of 1976.
(B) For the purpose of expediting the consideration and enactment of joint resolutions under
this subsection, a motion to proceed to the consideration of any such joint resolution after it
has been reported by the appropriate committee shall be treated as highly privileged in the
House of Representatives.
(4) The provisions of subsection (b)(5) of this section shall apply to any equipment, article, or
service for which a numbered certification has been transmitted to Congress pursuant to paragraph
(1) in the same manner and to the same extent as that subsection applies to any equipment, article, or
service for which a numbered certification has been transmitted to Congress pursuant to subsection
(b)(1) of this section. For purposes of such application, any reference in subsection (b)(5) of this
section to “a letter of offer” or “an offer” shall be deemed to be a reference to “a contract”.
(5) In the case of an application by a person (other than with regard to a sale under section 2761
or 2762 of this title) for a license for the export to a member country of the North Atlantic Treaty
Organization (NATO) or Australia, Japan, the Republic of Korea, Israel, or New Zealand that
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does not authorize a new sales territory that includes any country other than such countries, the
limitations on the issuance of the license set forth in paragraph (1) shall apply only if the license
is for export of—
(A) major defense equipment sold under a contract in the amount of $25,000,000 or more; or
(B) defense articles or defense services sold under a contract in the amount of $100,000,000
or more.
(6) The President shall notify the Speaker of the House of Representatives and the Chairman of
the Committee on Foreign Relations of the Senate at least 15 days prior to an export pursuant to
a treaty referred to in section 2778 (j)(1)(C)(i) of this title to which the provisions of paragraph
(1) of this subsection would apply absent an exemption granted under section 2778 (j)(1) of this
title, for which purpose such notification shall contain information comparable to that specified in
paragraph (1) of this subsection.
(d) Commercial technical assistance or manufacturing licensing agreements with non-North
Atlantic Treaty Organization member countries; submission of Presidential certification;
contents
(1) In the case of an approval under section 2778 of this title of a United States commercial
technical assistance or manufacturing licensing agreement which involves the manufacture abroad
of any item of significant combat equipment on the United States Munitions List, before such
approval is given, the President shall submit a certification with respect to such proposed
commercial agreement in a manner similar to the certification required under subsection (c)(1) of
this section containing comparable information, except that the last sentence of such subsection
shall not apply to certifications submitted pursuant to this subsection.
(2) A certification under this subsection shall be submitted—
(A) at least 15 days before approval is given in the case of an agreement for or in a country
which is a member of the North Atlantic Treaty Organization or Australia, Japan, the Republic
of Korea, Israel, or New Zealand; and
(B) at least 30 days before approval is given in the case of an agreement for or in any other
country;
unless the President states in his certification that an emergency exists which requires the
immediate approval of the agreement in the national security interests of the United States.
(3) If the President states in his certification that an emergency exists which requires the immediate
approval of the agreement in the national security interests of the United States, thus waiving
the requirements of paragraph (4), he shall set forth in the certification a detailed justification for
his determination, including a description of the emergency circumstances which necessitate the
immediate approval of the agreement and a discussion of the national security interests involved.
(4) Approval for an agreement subject to paragraph (1) may not be given under section 2778 of
this title if the Congress, within the 15-day or 30-day period specified in paragraph (2)(A) or (B),
as the case may be, enacts a joint resolution prohibiting such approval.
(5) (A) Any joint resolution under paragraph (4) shall be considered in the Senate in accordance
with the provisions of section 601(b) of the International Security Assistance and Arms Export
Control Act of 1976.
(B) For the purpose of expediting the consideration and enactment of joint resolutions under
paragraph (4), a motion to proceed to the consideration of any such joint resolution after it
has been reported by the appropriate committee shall be treated as highly privileged in the
House of Representatives.
(6) The President shall notify the Speaker of the House of Representatives and the Chairman of
the Committee on Foreign Relations of the Senate at least 15 days prior to an export pursuant to
a treaty referred to in section 2778 (j)(1)(C)(i) of this title to which the provisions of paragraph
(1) of this subsection would apply absent an exemption granted under section 2778 (j)(1) of this
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title, for which purpose such notification shall contain information comparable to that specified in
paragraph (1) of this subsection.
(e) Definitions
For purposes of this section—
(1) the term “offset agreement” means an agreement, arrangement, or understanding between a
United States supplier of defense articles or defense services and a foreign country under which the
supplier agrees to purchase or acquire, or to promote the purchase or acquisition by other United
States persons of, goods or services produced, manufactured, grown, or extracted, in whole or in
part, in that foreign country in consideration for the purchase by the foreign country of defense
articles or defense service from the supplier; and
(2) the term “United States person” means—
(A) an individual who is a national or permanent resident alien of the United States; and
(B) any corporation, business association, partnership, trust, or other juridical entity—
(i) organized under the laws of the United States or any State, district, territory, or
possession thereof; or
(ii) owned or controlled in fact by individuals described in subparagraph (A).
(f) Publication of arms sales certifications
The President shall cause to be published in a timely manner in the Federal Register, upon transmittal to
the Speaker of the House of Representatives and to the chairman of the Committee on Foreign Relations
of the Senate, the full unclassified text of—
(1) each numbered certification submitted pursuant to subsection (b) of this section;
(2) each notification of a proposed commercial sale submitted under subsection (c) of this section;
and
(3) each notification of a proposed commercial technical assistance or manufacturing licensing
agreement submitted under subsection (d) of this section.
(g) Confidentiality
Information relating to offset agreements provided pursuant to subparagraph (C) of the fifth sentence
of subsection (b)(1) of this section and the second sentence of subsection (c)(1) of this section shall be
treated as confidential information in accordance with section 2411(c) of the Appendix to title 50.
(h) Certification requirement relating to Israel’s qualitative military edge
(1) In general
Any certification relating to a proposed sale or export of defense articles or defense services under
this section to any country in the Middle East other than Israel shall include a determination that the
sale or export of the defense articles or defense services will not adversely affect Israel’s qualitative
military edge over military threats to Israel.
(2) Qualitative military edge defined
In this subsection, the term “qualitative military edge” means the ability to counter and defeat
any credible conventional military threat from any individual state or possible coalition of states
or from non-state actors, while sustaining minimal damages and casualties, through the use of
superior military means, possessed in sufficient quantity, including weapons, command, control,
communication, intelligence, surveillance, and reconnaissance capabilities that in their technical
characteristics are superior in capability to those of such other individual or possible coalition of
states or non-state actors.
Footnotes
1 See References in Text note below.
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(Pub. L. 90–629, ch. 3, § 36, Oct. 22, 1968, 82 Stat. 1326; Pub. L. 93–189, § 25(10), Dec. 17, 1973, 87
Stat. 731; Pub. L. 93–559, § 45(a)(5), Dec. 30, 1974, 88 Stat. 1814; Pub. L. 94–329, title II, § 211(a), title
VI, § 604(a), June 30, 1976, 90 Stat. 740, 766; Pub. L. 95–384, § 21, Sept. 26, 1978, 92 Stat. 741; Pub.
L. 96–92, §§ 16(b), 19 (a), (c), 20 (b), Oct. 29, 1979, 93 Stat. 708–710; Pub. L. 96–533, title I, §§ 105(c),
(d), 107 (b), 109 (f), Dec. 16, 1980, 94 Stat. 3134, 3136, 3138; Pub. L. 97–113, title I, §§ 101(c)–(e),
102(b), 109(d)(2), Dec. 29, 1981, 95 Stat. 1520, 1526; Pub. L. 99–83, title I, §§ 117, 118, title XII, §
1209(c), Aug. 8, 1985, 99 Stat. 202, 203, 279; Pub. L. 99–247, § 1(b), (c), Feb. 12, 1986, 100 Stat. 9;
Pub. L. 101–222, §§ 3(b), 7, Dec. 12, 1989, 103 Stat. 1896, 1899; Pub. L. 103–236, title VII, §§ 732,
735 (a), (b), Apr. 30, 1994, 108 Stat. 503, 505, 506; Pub. L. 103–437, § 9(a)(7), Nov. 2, 1994, 108 Stat.
4588; Pub. L. 104–164, title I, §§ 141(c), (d), 155, July 21, 1996, 110 Stat. 1431, 1432, 1440; Pub. L.
104–201, div. A, title X, § 1045(a), Sept. 23, 1996, 110 Stat. 2644; Pub. L. 105–277, div. G, subdiv. A,
title XII, § 1225(a)(1), Oct. 21, 1998, 112 Stat. 2681–773; Pub. L. 106–113, div. B, § 1000(a)(7) [div.
B, title XII, §§ 1224, 1245, title XIII, §§ 1301, 1302 (b)], Nov. 29, 1999, 113 Stat. 1536, 1501A–498,
1501A–502, 1501A–510, 1501A–511; Pub. L. 106–280, title I, § 102(c)(1), Oct. 6, 2000, 114 Stat. 849;
Pub. L. 107–228, div. B, title XII, §§ 1205(a), 1262 (c), title XIV, § 1405(a)(2), Sept. 30, 2002, 116 Stat.
1427, 1434, 1457; Pub. L. 110–429, title II, §§ 201(d), 203 (b)(1), Oct. 15, 2008, 122 Stat. 4843, 4845;
Pub. L. 111–266, title I, § 104(d), title III, § 301(1), Oct. 8, 2010, 124 Stat. 2799, 2804.)
References in Text
This chapter, referred to in subsecs. (a)(1) and (b)(1), (6)(A), was in the original “this Act”, meaning Pub. L. 90–629,
Oct. 22, 1968, 82 Stat. 1321, which is classified principally to this chapter. For complete classification of this Act to
the Code, see Short Title note set out under section 2751 of this title and Tables.
The National Security Act of 1947, referred to in subsec. (a)(10), is act July 26, 1947, ch. 343, 61 Stat. 495, as amended.
Title V of the National Security Act of 1947 is classified generally to subchapter III (§ 413 et seq.) of chapter 15 of
Title 50, War and National Defense. For complete classification of this Act to the Code, see Short Title note set out
under section 401 of Title 50 and Tables.
Paragraphs (8) and (9) of subsection (a) of this section, referred to in subsec. (b)(1), were redesignated as paragraphs
(7) and (8), respectively, of subsection (a) of this section by Pub. L. 107–228, div. B, title XII, § 1262(c)(2), Sept.
30, 2002, 116 Stat. 1434.
Section 601(b) of the International Security Assistance and Arms Export Control Act of 1976, referred to in subsecs.
(b)(2), (c)(3)(A), and (d)(5)(A), is section 601(b) of Pub. L. 94–329, June 30, 1976, 90 Stat. 729, which made provision
for expedited procedures in the Senate, and was not classified to the Code.
Section 2768 of this title, referred to in subsec. (b)(4), was repealed by Pub. L. 104–106, div. A, title X, § 1064(a),
Feb. 10, 1996, 110 Stat. 445.
Amendments
2010—Subsec. (b). Pub. L. 111–266, § 301(1), inserted “Israel,” before “or New Zealand” in concluding provisions
of par (1), in par. (2), and in introductory provisions of par. (6).
Subsec. (c). Pub. L. 111–266, § 301(1), inserted “Israel,” before “or New Zealand” in par. (2)(A) and in introductory
provisions of par. (5).
Subsec. (c)(6). Pub. L. 111–266, § 104(d)(1), added par. (6).
Subsec. (d)(2)(A). Pub. L. 111–266, § 301(1), inserted “Israel,” before “or New Zealand”.
Subsec. (d)(6). Pub. L. 111–266, § 104(d)(2), added par. (6).
2008—Subsecs. (b), (c), (d)(2)(A). Pub. L. 110–429, § 203(b)(1), inserted “the Republic of Korea,” before “or New
Zealand” wherever appearing.
Subsec. (h). Pub. L. 110–429, § 201(d), added subsec. (h).
2002—Subsec. (a)(7) to (13). Pub. L. 107–228, § 1262(c), redesignated pars. (8) to (13) as (7) to (12), respectively,
and struck out former par. (7) which read as follows: “an estimate of—
“(A) the number of United States military personnel, the number of United States Government civilian personnel, and
the number of United States civilian contract personnel, who were in each foreign country at the end of that quarter, and
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“(B) the number of members of each such category of personnel who were in each foreign country at any time during
that quarter,
in implementation of sales and commercial exports under this chapter or of assistance under chapter 2, 5, 6, or 8 of part
II of the Foreign Assistance Act of 1961, including both personnel assigned to the country and personnel temporarily
in the country by detail or otherwise;”.
Subsec. (b)(1). Pub. L. 107–228, § 1405(a)(2)(A)(i), substituted “(1) Subject to paragraph (6), in the case of” for “(1)
In the case of” in introductory provisions.
Subsec. (b)(5)(C). Pub. L. 107–228, § 1405(a)(2)(A)(ii), substituted “Subject to paragraph (6), if” for “If”.
Subsec. (b)(6). Pub. L. 107–228, § 1405(a)(2)(A)(iii), added par. (6).
Subsec. (c)(1). Pub. L. 107–228, § 1405(a)(2)(B)(i), substituted “(1) Subject to paragraph (5), in the case of” for “(1)
In the case of”.
Pub. L. 107–228, § 1205(a), inserted “(or, in the case of a defense article that is a firearm controlled under category I
of the United States Munitions List, $1,000,000 or more)” after “$50,000,000 or more”.
Subsec. (c)(5). Pub. L. 107–228, § 1405(a)(2)(B)(ii), added par. (5).
2000—Subsec. (c)(2)(B), (C). Pub. L. 106–280 added subpar. (B) and redesignated former subpar. (B) as (C).
1999—Subsec. (a)(13). Pub. L. 106–113, § 1000(a)(7) [title XIII, § 1302(b)], added par. (13).
Subsec. (b)(1). Pub. L. 106–113, § 1000(a)(7) [title XIII, § 1301(b)(1)], in sixth sentence, inserted before period at end
“, in which case the information shall be accompanied by a description of the damage to the national security that
could be expected to result from public disclosure of the information”.
Subsec. (b)(1)(C). Pub. L. 106–113, § 1000(a)(7) [title XII, § 1245(a)(1)], substituted “and a description of any offset
agreement with respect to such sale;” for “and a description from such contractor of any offset agreements proposed
to be entered into in connection with such sale (if known on the date of transmittal of such statement);”.
Subsec. (c)(1). Pub. L. 106–113, § 1000(a)(7) [title XIII, § 1301(b)(2)], in last sentence, inserted before period at end
“, in which case the information shall be accompanied by a description of the damage to the national security that
could be expected to result from public disclosure of the information”.
Pub. L. 106–113, § 1000(a)(7) [title XII, § 1245(a)(2)], in second sentence, substituted “and a description of any such
offset agreement” for “(if known on the date of transmittal of such certification)”.
Subsec. (c)(4). Pub. L. 106–113, § 1000(a)(7) [title XII, § 1224], added par. (4).
Subsec. (e). Pub. L. 106–113, § 1000(a)(7) [title XII, § 1245(b)(1)], redesignated subsec. (e), relating to publication
of arms sales certifications, as (f).
Subsec. (f). Pub. L. 106–113, § 1000(a)(7) [title XIII, § 1301(a)], which directed amendment of subsec. (e), relating to
publication of arms sales certifications, by inserting “in a timely manner” after “to be published” and by substituting
“the full unclassified text of—
“(1) each numbered certification submitted pursuant to subsection (b) of this section;
“(2) each notification of a proposed commercial sale submitted under subsection (c) of this section; and
“(3) each notification of a proposed commercial technical assistance or manufacturing licensing agreement submitted
under subsection (d) of this section.” for “the full unclassified text of each numbered certification submitted pursuant
to subsection (b) of this section and each notification of a proposed commercial sale submitted under subsection (c)
of this section.”, was executed by making the amendment in subsec. (f) to reflect the probable intent of Congress and
the redesignation of that subsec. (e) as (f). See 1999 Amendment note below.
Pub. L. 106–113, § 1000(a)(7) [title XII, § 1245(b)(1)], redesignated subsec. (e), relating to publication of arms sales
certifications, as (f).
Subsec. (g). Pub. L. 106–113, § 1000(a)(7) [title XII, § 1245(b)(2)], added subsec. (g).
1998—Subsec. (b)(1)(D). Pub. L. 105–277, in introductory provisions, substituted “Secretary of State in consultation
with the Secretary of Defense and the Director of Central Intelligence” for “Director of the Arms Control and
Disarmament Agency in consultation with the Secretary of State and the Secretary of Defense”.
1996—Subsec. (a)(12). Pub. L. 104–201 added par. (12).
Subsec. (c)(2)(A), (B). Pub. L. 104–164, § 141(c), amended subpars. (A) and (B) generally. Prior to amendment,
subpars. (A) and (B) read as follows:
“(A) shall not be issued until at least 30 calendar days after the Congress receives such certification; and
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“(B) shall not be issued then if the Congress, within such 30-day period, enacts a joint resolution prohibiting the
proposed export, except that this subparagraph does not apply with respect to a license issued for an export to the
North Atlantic Treaty Organization, any member country of that Organization, Japan, Australia, or New Zealand.”
Subsec. (d). Pub. L. 104–164, § 141(d), designated existing provisions as par. (1), struck out “for or in a country not
a member of the North Atlantic Treaty Organization” after “manufacturing licensing agreement”, and added pars. (2)
to (5).
Subsec. (e). Pub. L. 104–164, § 155, added subsec. (e) relating to publication of arms sales certifications.
1994—Subsec. (b)(1). Pub. L. 103–437 substituted “Foreign Affairs” for “International Relations”.
Pub. L. 103–236, §§ 732(a)(1), 735 (a), inserted after second sentence “In a case in which such articles or services listed
on the Missile Technology Control Regime Annex are intended to support the design, development, or production of a
Category I space launch vehicle system (as defined in section 2797c of this title), such report shall include a description
of the proposed export and rationale for approving such export, including the consistency of such export with United
States missile nonproliferation policy. Each such numbered certification shall contain an item indicating whether any
offset agreement is proposed to be entered into in connection with such letter of offer to sell (if known on the date
of transmittal of such certification).”
Subsec. (b)(1)(C). Pub. L. 103–236, § 732(a)(2), inserted “and a description from such contractor of any offset
agreements proposed to be entered into in connection with such sale” after “sold”.
Subsec. (c)(1). Pub. L. 103–437 substituted “Foreign Affairs” for “International Relations”.
Pub. L. 103–236, § 735(b), which directed amendment of par. (1) by inserting after “in consultation with the Secretary
of Defense.” the following new sentence: “In a case in which such articles or services are listed on the Missile
Technology Control Regime Annex and are intended to support the design, development, or production of a Category
I space launch vehicle system (as defined in section 2797c of this title), such report shall include a description of the
proposed export and rationale for approving such export, including the consistency of such export with United States
missile nonproliferation policy.”, was executed by making the insertion after “in consultation with the Secretary of
Defense and a description from the person who has submitted the license application of any offset agreement proposed
to be entered into in connection with such export (if known on the date of transmittal of such statement).” to reflect
the probable intent of Congress and the intervening amendment by Pub. L. 103–236, § 732(b)(2). See below.
Pub. L. 103–236, § 732(b)(2), inserted “and a description from the person who has submitted the license application
of any offset agreement proposed to be entered into in connection with such export (if known on the date of transmittal
of such statement)” after “Secretary of Defense”.
Pub. L. 103–236, § 732(b)(1), inserted after first sentence “Each such numbered certification shall also contain an item
indicating whether any offset agreement is proposed to be entered into in connection with such export (if known on
the date of transmittal of such certification).”
Subsec. (e). Pub. L. 103–236, § 732(c), added subsec. (e).
1989—Subsec. (a). Pub. L. 101–222, § 7(b), inserted “, and any information provided under paragraph (11) of this
subsection may also be provided in a classified addendum” after “(b)(1) of this section” in introductory provisions.
Subsec. (a)(10), (11). Pub. L. 101–222, § 7(a), added pars. (10) and (11).
Subsec. (b)(1)(D)(ii) to (v). Pub. L. 101–222, § 3(b), added cl. (ii) and redesignated former cls. (ii) through (iv) as
(iii) through (v), respectively.
1986—Subsec. (b)(1). Pub. L. 99–247, § 1(b)(1), substituted “enacts a joint resolution prohibiting” for “adopts a
concurrent resolution stating that it objects to” in concluding provisions.
Subsec. (b)(2). Pub. L. 99–247, § 1(b)(2), inserted “joint” before “resolution” in four places.
Subsec. (b)(3). Pub. L. 99–247, § 1(b)(3), substituted “enactment of joint resolutions” for “adoption of concurrent
resolutions” and “such joint resolution” for “such resolution”.
Subsec. (c)(2)(B). Pub. L. 99–247, § 1(c)(1), substituted “enacts a joint resolution prohibiting” for “adopts a concurrent
resolution stating that it objects to”.
Subsec. (c)(3)(A). Pub. L. 99–247, § 1(c)(2), inserted “joint” before “resolution”.
Subsec. (c)(3)(B). Pub. L. 99–247, § 1(c)(3), substituted “enactment of joint resolutions” for “adoption of concurrent
resolutions” and “such joint resolution” for “such resolution”.
1985—Subsec. (a)(5). Pub. L. 99–83, § 1209(c)(1), substituted “sales” for “cash sales” and struck out provisions
relating to credits under section 2763 of this title and guaranty agreements under section 2764 of this title.
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NB: This unofficial compilation of the U.S. Code is current as of Jan. 4, 2012 (see http://www.law.cornell.edu/uscode/uscprint.html).
Subsec. (a)(6). Pub. L. 99–83, § 1209(c)(2), substituted “sales expected to be made to” for “cash sales expected to be
made and credits expected to be extended to”.
Subsec. (a)(7). Pub. L. 99–83, § 117, amended par. (7) generally. Prior to amendment, par. (7) read as follows: “an
estimate of the number of officers and employees of the United States Government and of United States civilian
contract personnel present in each such country at the end of that quarter for assignments in implementation of sales
and commercial exports under this chapter;”.
Subsec. (b)(1). Pub. L. 99–83, § 118(1), inserted requirement respecting detailed justification of reasons for sale of
sensitive articles or services.
Subsec. (b)(5). Pub. L. 99–83, § 118(2), added par. (5).
1981—Subsec. (a)(10). Pub. L. 97–113, § 109(d)(2), struck out par. (10) which required that Presidential report to
Congress contain a listing (classified if necessary) of property valued at $1,000,000 or more which was leased, during
the quarter for which a report was required, to a foreign government for a period of more than six months under section
2667 of title 10. See section 2796 et seq. of this title.
Subsec. (b)(1). Pub. L. 97–113, §§ 101(c), 102 (b)(1), increased the certification requirement limits to $50,000,000 and
$14,000,000 from $25,000,000 and $7,000,000 respecting offers to sell defense articles or services, and major defense
equipment; and prescribed a fifteen-calendar-day period after receiving a certification for a concurrent resolution
objecting to a proposed sale to the North Atlantic Treaty Organization, any member country of such Organization,
Japan, Australia, or New Zealand, and made the existing thirty-calendar-day period applicable only with respect to a
proposed sale to any other country or organization.
Subsec. (b)(2). Pub. L. 97–113, § 102(b)(2), authorized a motion in the Senate for the discharge of the committee
to which a resolution respecting the North Atlantic Treaty Organization, any member country of such Organization,
Japan, Australia, or New Zealand was referred for failure to report the resolution at end of five calendar days after
its introduction.
Subsec. (c)(1). Pub. L. 97–113, § 101(d), increased sales contract limits to $14,000,000 and $50,000,000 from
$7,000,000 and $25,000,000 respecting sales of major defense equipment and defense articles or services.
Subsec. (d). Pub. L. 97–113, § 101(e), substituted reference to subsec. “(c)(1)” for “(c)” of this section.
1980—Subsec. (a)(9), (10). Pub. L. 96–533, §§ 105(c), 109 (f), added pars. (9) and (10).
Subsec. (b)(1). Pub. L. 96–533, § 105(d), required certification respecting offer to sell any design and construction
services for $200,000,000 or more, required such certification to contain the information specified in subsec.
(a)(9)(A)–(D) of this section, required such certification to contain an item identifying the sensitivity of technology
contained in the design and construction services, and made subpar. (A), (C), (E), (I)–(N) provisions applicable to
design and construction services.
Subsec. (c). Pub. L. 96–533, § 107(b), designated existing provisions as par. (1), struck out “not less than 30 days”
before “before issuing such license”, redesignated as cls. (A) to (C) former pars. (1) to (3), and substituted “clause
(B)” and “clause (C)” for “paragraph (1)” and “paragraph (2)”, respectively, and added pars. (2) and (3).
1979—Subsec. (a). Pub. L. 96–92, § 19(a), increased to sixty from thirty days the period for submission of the
President’s report at end of each quarter and struck out par. (9) which required that the report contain an analysis
and description of the services of Federal personnel under provisions relating to sales from stock, including numbers
employed.
Subsec. (b)(1). Pub. L. 96–92, §§ 19(c), 20 (b), required executive emergency justification statement and the numbered
certifications to contain an item, classified if necessary, identifying the sensitivity of technology contained in the
defense articles or defense services proposed to be sold.
Subsec. (b)(4). Pub. L. 96–92, § 16(b), added par. (4).
1978—Subsec. (b)(1)(D), (N) to (P). Pub. L. 95–384 in subpar. (D) substituted provisions requiring an evaluation
relating to the proposed sale to be prepared by the Director of the Arms Control and Disarmament Agency in
consultation with the Secretary of State and the Secretary of Defense for provisions requiring an analysis of the arms
control impact pertinent to the offer to sell prepared in consultation with the Secretary of Defense and added subpars.
(N) to (P).
1976—Subsec. (a). Pub. L. 94–329, §§ 211(a), 604 (a)(1), expanded existing provisions to provide for increased
comprehensiveness of the quarterly reports on sales of defense articles or defense services, whether through
governmental channels or commercial channels.
Subsec. (b). Pub. L. 94–329, §§ 211(a), 604 (a)(2), increased from 20 days to 30 days the period allowed Congress to
reject a proposed offer to sell defense articles or defense services and inserted provisions covering any major defense
equipment for $7,000,000 or more, requiring additional information with respect to any letter of offer to sell defense
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articles or defense services if requested by Congress and requiring that a certification be transmitted pursuant to this
subsection in unclassified form unless public disclosure would be detrimental to the United States.
Subsec. (c). Pub. L. 94–329, § 211(a), substituted provisions relating to application by person for license for export
of any major defense equipment sold and contracted for $7,000,000 or more or defense articles or defense services
for $25,000,000 or more, requiring the President to transmit to Congress an unclassified numbered certification with
respect to such application, for provisions construing this section as not modifying in any way section 1934 of this title.
Subsec. (d). Pub. L. 94–329, § 211(a), added subsec. (d).
1974—Subsecs. (a), (b). Pub. L. 93–559 added subsecs. (a) and (b).
1973—Pub. L. 93–189 struck out subsec. (a) which required the Secretary of State to transmit to the Speaker of the
House of Representatives and the Committee on Foreign Relations of the Senate semiannual reports of all exports
of significant defense articles on the United States munitions list to foreign governments, etc., and subsec. (b) which
provided for the inclusion in the presentation material submitted to the Congress during consideration of amendments
to this chapter or Acts appropriating funds under authority of this chapter annual tables showing the dollar value of
cash and credit foreign military sales orders, commitments to order, etc.
Change of Name
Reference to the Director of Central Intelligence or the Director of the Central Intelligence Agency in the Director’s
capacity as the head of the intelligence community deemed to be a reference to the Director of National Intelligence.
Reference to the Director of Central Intelligence or the Director of the Central Intelligence Agency in the Director’s
capacity as the head of the Central Intelligence Agency deemed to be a reference to the Director of the Central
Intelligence Agency. See section 1081(a), (b) of Pub. L. 108–458, set out as a note under section 401 of Title 50, War
and National Defense.
Effective Date of 1998 Amendment
Amendment by Pub. L. 105–277 effective Apr. 1, 1999, see section 1201 of Pub. L. 105–277, set out as an Effective
Date note under section 6511 of this title.
Effective Date of 1996 Amendments
Section 1045(b) of Pub. L. 104–201 provided that: “Paragraph (12) of section 36(a) of the Arms Export Control Act
[now 22 U.S.C. 2776 (a)(11)], as added by subsection (a)(3), does not apply with respect to an agreement described
in such paragraph entered into before the date of the enactment of this Act [Sept. 23, 1996].”
Amendment by section 141(c), (d) of Pub. L. 104–164 applicable with respect to certifications required to be submitted
on or after July 21, 1996, see section 141(f) of Pub. L. 104–164, set out as a note under section 2753 of this title.
Effective Date of 1985 Amendment
Amendment by Pub. L. 99–83 effective Oct. 1, 1985, see section 1301 of Pub. L. 99–83, set out as a note under section
2151–1 of this title.
Effective Date of 1976 Amendment
Section 211(b) of Pub. L. 94–329 provided that: “The amendment made by subsection (a) of this section [amending
this section] shall apply with respect to letters of offer for which a certification is transmitted pursuant to section 36(b)
of the Arms Export Control Act [subsec. (b) of this section] on or after the date of enactment of this Act [June 30,
1976] and to export licenses for which an application is filed under section 38 of such Act [section 2778 of this title]
on or after such date.”
Section 604(c) of Pub. L. 94–329 provided that: “The amendments made by this section [amending this section and
enacting section 2779 of this title] shall take effect sixty days after the date of enactment of this Act [June 30, 1976].”
Delegation of Functions
Functions of President under subsecs. (a) and (b)(1) of this section, except with respect to certification of an emergency
under subsec. (b)(1), delegated to Secretary of Defense, with Secretary of Defense required to consult with other
specific agencies in implementing certain delegated functions, by section 1(j) of Ex. Ord. No. 11958, Jan. 18, 1977,
42 F.R. 4311, as amended, set out as a note under section 2751 of this title.
Functions of President under subsecs. (c) and (d) of this section delegated to Secretary of State, and functions of
President under subsec. (e) of this section with respect to transmittals pursuant to subsec. (b) of this section delegated
to Secretary of Defense and with respect to transmittals pursuant to subsec. (c) of this section delegated to Secretary
of State, by section 1(k) of Ex. Ord. No. 11958.
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NB: This unofficial compilation of the U.S. Code is current as of Jan. 4, 2012 (see http://www.law.cornell.edu/uscode/uscprint.html).
Assessment of Israel’s Qualitative Military Edge Over Military Threats
Pub. L. 110–429, title II, § 201, Oct. 15, 2008, 122 Stat. 4843, provided that:
“(a) Assessment Required.—The President shall carry out an empirical and qualitative assessment on an ongoing
basis of the extent to which Israel possesses a qualitative military edge over military threats to Israel. The assessment
required under this subsection shall be sufficiently robust so as to facilitate comparability of data over concurrent years.
“(b) Use of Assessment.—The President shall ensure that the assessment required under subsection (a) is used to
inform the review by the United States of applications to sell defense articles and defense services under the Arms
Export Control Act (22 U.S.C. 2751 et seq.) to countries in the Middle East.
“(c) Reports.—
“(1) Initial report.—Not later than June 30, 2009, the President shall transmit to the appropriate congressional
committees a report on the initial assessment required under subsection (a).
“(2) Quadrennial report.—Not later than four years after the date on which the President transmits the initial report
under paragraph (1), and every four years thereafter, the President shall transmit to the appropriate congressional
committees a report on the most recent assessment required under subsection (a).
“(d) Certification.—[Amended this section.]
“(e) Definitions.—In this section:
“(1) Appropriate congressional committees.—The term ‘appropriate congressional committees’ means the Committee
on Foreign Affairs of the House of Representatives and the Committee on Foreign Relations of the Senate.
“(2) Qualitative military edge.—The term ‘qualitative military edge’ has the meaning given the term in section 36(h)
of the Arms Export Control Act, as added by subsection (d) of this section [22 U.S.C. 2776 (h)].”
[Memorandum of President of the United States, June 8, 2009, 74 F.R. 28863, provided that the functions of the
President in section 201(a) to (c) of Pub. L. 110–429, set out above, are delegated to the Secretary of State, in
coordination with the Secretary of Defense.]
National Disclosure Policy for Sensitive Weapons Technology; Report to
Congress
Section 20(a) of Pub. L. 96–92 directed President to undertake a thorough review of interagency procedures and
disclosure criteria used by United States in determining whether sensitive weapons technology will be transferred to
other countries, and not later than Feb. 15, 1980 to transmit a report to Congress setting forth the results of such review,
together with such recommendations as are necessary to improve the current disclosure system, prior to repeal by Pub.
L. 97–113, title VII, § 734(a)(11), Dec. 29, 1981, 95 Stat. 1560.
.....................................
§ 2776a. Repealed. Pub. L. 112–81, div. A, title X, § 1062(d)(4), Dec. 31, 2011, 125 Stat. 1585
Section, Pub. L. 109–364, div. A, title XII, § 1231, Oct. 17, 2006, 120 Stat. 2430; Pub. L. 110–181,
div. A, title X, § 1063(c)(11), Jan. 28, 2008, 122 Stat. 323, required annual report on foreign sales
of significant military equipment manufactured in the United States.
.....................................
§ 2777. Fiscal provisions relating to foreign military sales credits
(a) Permissible uses of cash payments under sections 2761, 2762, 2763, and 2769
Cash payments received under sections 2761, 2762, and 2769 of this title and advances received under
section 2763 of this title shall be available solely for payments to suppliers (including the military
departments) and refunds to purchasers and shall not be available for financing credits and guaranties.
(b) Transfer of funds to miscellaneous receipts of Treasury
Amounts received from foreign governments and international organizations as repayments for credits
extended pursuant to section 2763 of this title, amounts received from the disposition of instruments
evidencing indebtedness under section 2764 (b) of this title (excluding such portion of the sales proceeds
as may be required at the time of disposition to be obligated as a reserve for payment of claims under
guaranties issued pursuant to section 2764 (b) of this title, which sums are made available for such
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obligations), and other collections (including fees and interest) shall be transferred to the miscellaneous
receipts of the Treasury.
(c) Credit of funds to reserve under section 2764 (c)
Notwithstanding the provisions of subsection (b) of this section, to the extent that any of the funds
constituting the reserve under section 2764 (c) of this title are paid out for a claim arising out of a loan
guaranteed under section 2764 of this title, amounts received from a foreign government or international
organization after the date of such payment, with respect to such claim, shall be credited to such reserve,
shall be merged with the funds in such reserve, and shall be available for any purpose for which funds
in such reserve are available.
(Pub. L. 90–629, ch. 3, § 37, Oct. 22, 1968, 82 Stat. 1326; Pub. L. 93–189, § 25(11), Dec. 17, 1973, 87
Stat. 731; Pub. L. 96–533, title I, §§ 104(b), 105 (e)(1), Dec. 16, 1980, 94 Stat. 3133, 3135.)
Amendments
1980—Subsec. (a). Pub. L. 96–533, § 105(e)(1), inserted reference to section 2769 of this title.
Subsec. (c). Pub. L. 96–533, § 104(b), added subsec. (c).
1973—Subsec. (b). Pub. L. 93–189 inserted provisions relating to indebtedness under section 2764 (b) of this title
and exclusions of portions of the sales proceeds required at the time of disposition as a reserve for payment of claims
under guaranties issued under section 2764 (b) of this title.
.....................................
§ 2778. Control of arms exports and imports
(a) Presidential control of exports and imports of defense articles and services, guidance of
policy, etc.; designation of United States Munitions List; issuance of export licenses; negotiations
information
(1) In furtherance of world peace and the security and foreign policy of the United States, the
President is authorized to control the import and the export of defense articles and defense services
and to provide foreign policy guidance to persons of the United States involved in the export and
import of such articles and services. The President is authorized to designate those items which
shall be considered as defense articles and defense services for the purposes of this section and
to promulgate regulations for the import and export of such articles and services. The items so
designated shall constitute the United States Munitions List.
(2) Decisions on issuing export licenses under this section shall take into account whether the
export of an article would contribute to an arms race, aid in the development of weapons of mass
destruction, support international terrorism, increase the possibility of outbreak or escalation of
conflict, or prejudice the development of bilateral or multilateral arms control or nonproliferation
agreements or other arrangements.
(3) In exercising the authorities conferred by this section, the President may require that any
defense article or defense service be sold under this chapter as a condition of its eligibility for
export, and may require that persons engaged in the negotiation for the export of defense articles
and services keep the President fully and currently informed of the progress and future prospects
of such negotiations.
(b) Registration and licensing requirements for manufacturers, exporters, or importers of
designated defense articles and defense services
(1) (A)
(i) As prescribed in regulations issued under this section, every person (other than an
officer or employee of the United States Government acting in an official capacity) who
engages in the business of manufacturing, exporting, or importing any defense articles or
defense services designated by the President under subsection (a)(1) of this section shall
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register with the United States Government agency charged with the administration of
this section, and shall pay a registration fee which shall be prescribed by such regulations.
Such regulations shall prohibit the return to the United States for sale in the United States
(other than for the Armed Forces of the United States and its allies or for any State or
local law enforcement agency) of any military firearms or ammunition of United States
manufacture furnished to foreign governments by the United States under this chapter
or any other foreign assistance or sales program of the United States, whether or not
enhanced in value or improved in condition in a foreign country. This prohibition shall
not extend to similar firearms that have been so substantially transformed as to become,
in effect, articles of foreign manufacture.
(ii) (I) As prescribed in regulations issued under this section, every person (other than
an officer or employee of the United States Government acting in official capacity)
who engages in the business of brokering activities with respect to the manufacture,
export, import, or transfer of any defense article or defense service designated by
the President under subsection (a)(1) of this section, or in the business of brokering
activities with respect to the manufacture, export, import, or transfer of any foreign
defense article or defense service (as defined in subclause (IV)), shall register with
the United States Government agency charged with the administration of this section,
and shall pay a registration fee which shall be prescribed by such regulations.
(II) Such brokering activities shall include the financing, transportation, freight
forwarding, or taking of any other action that facilitates the manufacture, export, or
import of a defense article or defense service.
(III) No person may engage in the business of brokering activities described in
subclause (I) without a license, issued in accordance with this chapter, except that
no license shall be required for such activities undertaken by or for an agency of the
United States Government—
(aa) for use by an agency of the United States Government; or
(bb) for carrying out any foreign assistance or sales program authorized by law
and subject to the control of the President by other means.
(IV) For purposes of this clause, the term “foreign defense article or defense
service” includes any non-United States defense article or defense service of a nature
described on the United States Munitions List regardless of whether such article or
service is of United States origin or whether such article or service contains United
States origin components.
(B) 1 The prohibition under such regulations required by the second sentence of subparagraph
(A) shall not extend to any military firearms (or ammunition, components, parts, accessories,
and attachments for such firearms) of United States manufacture furnished to any foreign
government by the United States under this chapter or any other foreign assistance or sales
program of the United States if—
(i) such firearms are among those firearms that the Secretary of the Treasury is, or was at
any time, required to authorize the importation of by reason of the provisions of section
925 (e) of title 18 (including the requirement for the listing of such firearms as curios or
relics under section 921(a)(13) of that title); and
(ii) such foreign government certifies to the United States Government that such firearms
are owned by such foreign government.
(B) 1 A copy of each registration made under this paragraph shall be transmitted to the
Secretary of the Treasury for review regarding law enforcement concerns. The Secretary shall
report to the President regarding such concerns as necessary.
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(2) Except as otherwise specifically provided in regulations issued under subsection (a)(1) of this
section, no defense articles or defense services designated by the President under subsection (a)(1)
of this section may be exported or imported without a license for such export or import, issued in
accordance with this chapter and regulations issued under this chapter, except that no license shall
be required for exports or imports made by or for an agency of the United States Government
(A) for official use by a department or agency of the United States Government, or
(B) for carrying out any foreign assistance or sales program authorized by law and subject
to the control of the President by other means.
(3) (A) For each of the fiscal years 1988 and 1989, $250,000 of registration fees collected
pursuant to paragraph (1) shall be credited to a Department of State account, to be available
without fiscal year limitation. Fees credited to that account shall be available only for the
payment of expenses incurred for—
(i) contract personnel to assist in the evaluation of munitions control license applications,
reduce processing time for license applications, and improve monitoring of compliance
with the terms of licenses; and
(ii) the automation of munitions control functions and the processing of munitions
control license applications, including the development, procurement, and utilization of
computer equipment and related software.
(B) The authority of this paragraph may be exercised only to such extent or in such amounts
as are provided in advance in appropriation Acts.
(c) Criminal violations; punishment
Any person who willfully violates any provision of this section, section 2779 of this title, a treaty
referred to in subsection (j)(1)(C)(i), or any rule or regulation issued under this section or section 2779
of this title, including any rule or regulation issued to implement or enforce a treaty referred to in
subsection (j)(1)(C)(i) or an implementing arrangement pursuant to such treaty, or who willfully, in a
registration or license application or required report, makes any untrue statement of a material fact or
omits to state a material fact required to be stated therein or necessary to make the statements therein not
misleading, shall upon conviction be fined for each violation not more than $1,000,000 or imprisoned
not more than 20 years, or both.
(d) Repealed. Pub. L. 96–70, title III, § 3303(a)(4), Sept. 27, 1979, 93 Stat. 499
(e) Enforcement powers of President
In carrying out functions under this section with respect to the export of defense articles and
defense services, including defense articles and defense services exported or imported pursuant to a
treaty referred to in subsection (j)(1)(C)(i), the President is authorized to exercise the same powers
concerning violations and enforcement which are conferred upon departments, agencies and officials
by subsections (c), (d), (e), and (g) of section 11 of the Export Administration Act of 1979 [50 App.
U.S.C. 2410 (c), (d), (e), and (g)], and by subsections (a) and (c) of section 12 of such Act [50 App.
U.S.C. 2411 (a) and (c)], subject to the same terms and conditions as are applicable to such powers
under such Act [50 App. U.S.C. 2401 et seq.], except that section 11(c)(2)(B) of such Act shall not
apply, and instead, as prescribed in regulations issued under this section, the Secretary of State may
assess civil penalties for violations of this chapter and regulations prescribed thereunder and further
may commence a civil action to recover such civil penalties, and except further that the names of the
countries and the types and quantities of defense articles for which licenses are issued under this section
shall not be withheld from public disclosure unless the President determines that the release of such
information would be contrary to the national interest. Nothing in this subsection shall be construed
as authorizing the withholding of information from the Congress. Notwithstanding section 11(c) of the
Export Administration Act of 1979, the civil penalty for each violation involving controls imposed on
the export of defense articles and defense services under this section may not exceed $500,000.
(f) Periodic review of items on Munitions List; exemptions
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(1) The President shall periodically review the items on the United States Munitions List to
determine what items, if any, no longer warrant export controls under this section. The results of
such reviews shall be reported to the Speaker of the House of Representatives and to the Committee
on Foreign Relations and the Committee on Banking, Housing, and Urban Affairs of the Senate.
The President may not remove any item from the Munitions List until 30 days after the date on
which the President has provided notice of the proposed removal to the Committee on International
Relations of the House of Representatives and to the Committee on Foreign Relations of the Senate
in accordance with the procedures applicable to reprogramming notifications under section 2394–1
(a) of this title. Such notice shall describe the nature of any controls to be imposed on that item
under any other provision of law.
(2) The President may not authorize an exemption for a foreign country from the licensing
requirements of this chapter for the export of defense items under subsection (j) of this section
or any other provision of this chapter until 30 days after the date on which the President has
transmitted to the Committee on International Relations of the House of Representatives and the
Committee on Foreign Relations of the Senate a notification that includes—
(A) a description of the scope of the exemption, including a detailed summary of the defense
articles, defense services, and related technical data covered by the exemption; and
(B) a determination by the Attorney General that the bilateral agreement concluded
under subsection (j) of this section requires the compilation and maintenance of sufficient
documentation relating to the export of United States defense articles, defense services, and
related technical data to facilitate law enforcement efforts to detect, prevent, and prosecute
criminal violations of any provision of this chapter, including the efforts on the part of
countries and factions engaged in international terrorism to illicitly acquire sophisticated
United States defense items.
(3) Paragraph (2) shall not apply with respect to an exemption for Canada from the licensing
requirements of this chapter for the export of defense items.
(4) Paragraph (2) shall not apply with respect to an exemption under subsection (j)(1) to give
effect to a treaty referred to in subsection (j)(1)(C)(i) (and any implementing arrangements to such
treaty), provided that the President promulgates regulations to implement and enforce such treaty
under this section and section 2779 of this title.
(g) Identification of persons convicted or subject to indictment for violations of certain
provisions
(1) The President shall develop appropriate mechanisms to identify, in connection with the export
licensing process under this section—
(A) persons who are the subject of an indictment for, or have been convicted of, a violation
under—
(i) this section,
(ii) section 11 of the Export Administration Act of 1979 (50 App. U.S.C. 2410),
(iii) section 793, 794, or 798 of title 18 (relating to espionage involving defense or
classified information) or section 2339A of such title (relating to providing material
support to terrorists),
(iv) section 16 of the Trading with the Enemy Act (50 App. U.S.C. 16),
(v) section 206 of the International Emergency Economic Powers Act (relating to foreign
assets controls; 50 App. U.S.C. 1705) [50 U.S.C. 1705],
(vi) section 30A of the Securities Exchange Act of 1934 (15 U.S.C. 78dd–1) or section
104 of the Foreign Corrupt Practices Act (15 U.S.C. 78dd–2),
(vii) chapter 105 of title 18 (relating to sabotage),
(viii) section 4(b) of the Internal Security Act of 1950 (relating to communication of
classified information; 50 U.S.C. 783 (b)),
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(ix) section 57, 92, 101, 104, 222, 224, 225, or 226 of the Atomic Energy Act of 1954
(42 U.S.C. 2077, 2122, 2131, 2134, 2272, 2274, 2275, and 2276),
(x) section 601 of the National Security Act of 1947 (relating to intelligence identities
protection; 50 U.S.C. 421),
(xi) section 603(b) or (c) of the Comprehensive Anti-Apartheid Act of 1986 (22 U.S.C.
5113 (b) and (c)); 2 or
(xii) section 3 3, 4, 5, and 6 of the Prevention of Terrorist Access to Destructive Weapons
Act of 2004, relating to missile systems designed to destroy aircraft (18 U.S.C. 2332g),
prohibitions governing atomic weapons (42 U.S.C. 2122), radiological dispersal devices
(18 U.S.C. 2332h), and variola virus (18 U.S.C. 175b 4);
(B) persons who are the subject of an indictment or have been convicted under section 371
of title 18 for conspiracy to violate any of the statutes cited in subparagraph (A); and
(C) persons who are ineligible—
(i) to contract with,
(ii) to receive a license or other form of authorization to export from, or
(iii) to receive a license or other form of authorization to import defense articles or
defense services from,
any agency of the United States Government.
(2) The President shall require that each applicant for a license to export an item on the United
States Munitions List identify in the application all consignees and freight forwarders involved in
the proposed export.
(3) If the President determines—
(A) that an applicant for a license to export under this section is the subject of an indictment
for a violation of any of the statutes cited in paragraph (1),
(B) that there is reasonable cause to believe that an applicant for a license to export under
this section has violated any of the statutes cited in paragraph (1), or
(C) that an applicant for a license to export under this section is ineligible to contract with,
or to receive a license or other form of authorization to import defense articles or defense
services from, any agency of the United States Government,
the President may disapprove the application. The President shall consider requests by the
Secretary of the Treasury to disapprove any export license application based on these criteria.
(4) A license to export an item on the United States Munitions List may not be issued to a person—
(A) if that person, or any party to the export, has been convicted of violating a statute cited
in paragraph (1), or
(B) if that person, or any party to the export, is at the time of the license review ineligible
to receive export licenses (or other forms of authorization to export) from any agency of the
United States Government,
except as may be determined on a case-by-case basis by the President, after consultation with the
Secretary of the Treasury, after a thorough review of the circumstances surrounding the conviction
or ineligibility to export and a finding by the President that appropriate steps have been taken to
mitigate any law enforcement concerns.
(5) A license to export an item on the United States Munitions List may not be issued to a foreign
person (other than a foreign government).
(6) The President may require a license (or other form of authorization) before any item on the
United States Munitions List is sold or otherwise transferred to the control or possession of a
foreign person or a person acting on behalf of a foreign person.
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(7) The President shall, in coordination with law enforcement and national security agencies,
develop standards for identifying high-risk exports for regular end-use verification. These
standards shall be published in the Federal Register and the initial standards shall be published not
later than October 1, 1988.
(8) Upon request of the Secretary of State, the Secretary of Defense and the Secretary of the
Treasury shall detail to the office primarily responsible for export licensing functions under this
section, on a nonreimbursable basis, personnel with appropriate expertise to assist in the initial
screening of applications for export licenses under this section in order to determine the need for
further review of those applications for foreign policy, national security, and law enforcement
concerns.
(9) For purposes of this subsection—
(A) the term “foreign corporation” means a corporation that is not incorporated in the United
States;
(B) the term “foreign government” includes any agency or subdivision of a foreign
government, including an official mission of a foreign government;
(C) the term “foreign person” means any person who is not a citizen or national of the United
States or lawfully admitted to the United States for permanent residence under the Immigration
and Nationality Act [8 U.S.C. 1101 et seq.], and includes foreign corporations, international
organizations, and foreign governments;
(D) the term “party to the export” means—
(i) the president, the chief executive officer, and other senior officers of the license
applicant;
(ii) the freight forwarders or designated exporting agent of the license application; and
(iii) any consignee or end user of any item to be exported; and
(E) the term “person” means a natural person as well as a corporation, business association,
partnership, society, trust, or any other entity, organization, or group, including governmental
entities.
(h) Judicial review of designation of items as defense articles or services
The designation by the President (or by an official to whom the President’s functions under subsection
(a) of this section have been duly delegated), in regulations issued under this section, of items as defense
articles or defense services for purposes of this section shall not be subject to judicial review.
(i) Report to Department of State
As prescribed in regulations issued under this section, a United States person to whom a license has
been granted to export an item on the United States Munitions List shall, not later than 15 days after
the item is exported, submit to the Department of State a report containing all shipment information,
including a description of the item and the quantity, value, port of exit, and end-user and country of
destination of the item.
(j) Requirements relating to country exemptions for licensing of defense items for export to
foreign countries
(1) Requirement for bilateral agreement
(A) In general
The President may utilize the regulatory or other authority pursuant to this chapter to exempt
a foreign country from the licensing requirements of this chapter with respect to exports
of defense items only if the United States Government has concluded a binding bilateral
agreement with the foreign country. Such agreement shall—
(i) meet the requirements set forth in paragraph (2); and
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(ii) be implemented by the United States and the foreign country in a manner that is
legally-binding under their domestic laws.
(B) Exception for Canada
The requirement to conclude a bilateral agreement in accordance with subparagraph (A) shall
not apply with respect to an exemption for Canada from the licensing requirements of this
chapter for the export of defense items.
(C) Exception for defense trade cooperation treaties
(i) In general
The requirement to conclude a bilateral agreement in accordance with subparagraph (A)
shall not apply with respect to an exemption from the licensing requirements of this
chapter for the export of defense items to give effect to any of the following defense trade
cooperation treaties, provided that the treaty has entered into force pursuant to article II,
section 2, clause 2 of the Constitution of the United States:
(I) The Treaty Between the Government of the United States of America and
the Government of the United Kingdom of Great Britain and Northern Ireland
Concerning Defense Trade Cooperation, done at Washington and London on June
21 and 26, 2007 (and any implementing arrangement thereto).
(II) The Treaty Between the Government of the United States of America and the
Government of Australia Concerning Defense Trade Cooperation, done at Sydney
September 5, 2007 (and any implementing arrangement thereto).
(ii) Limitation of scope
The United States shall exempt from the scope of a treaty referred to in clause (i)—
(I) complete rocket systems (including ballistic missile systems, space launch
vehicles, and sounding rockets) or complete unmanned aerial vehicle systems
(including cruise missile systems, target drones, and reconnaissance drones) capable
of delivering at least a 500 kilogram payload to a range of 300 kilometers, and
associated production facilities, software, or technology for these systems, as defined
in the Missile Technology Control Regime Annex Category I, Item 1;
(II) individual rocket stages, re-entry vehicles and equipment, solid or liquid
propellant motors or engines, guidance sets, thrust vector control systems, and
associated production facilities, software, and technology, as defined in the Missile
Technology Control Regime Annex Category I, Item 2;
(III) defense articles and defense services listed in the Missile Technology Control
Regime Annex Category II that are for use in rocket systems, as that term is used in
such Annex, including associated production facilities, software, or technology;
(IV) toxicological agents, biological agents, and associated equipment, as listed in
the United States Munitions List (part 121.1 of chapter I of title 22, Code of Federal
Regulations), Category XIV, subcategories (a), (b), (f)(1), (i), (j) as it pertains to
(f)(1), (l) as it pertains to (f)(1), and (m) as it pertains to all of the subcategories cited
in this paragraph;
(V) defense articles and defense services specific to the design and testing of nuclear
weapons which are controlled under United States Munitions List Category XVI(a)
and (b), along with associated defense articles in Category XVI(d) and technology
in Category XVI(e);
(VI) with regard to the treaty cited in clause (i)(I), defense articles and defense
services that the United States controls under the United States Munitions List that
are not controlled by the United Kingdom, as defined in the United Kingdom Military
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List or Annex 4 to the United Kingdom Dual Use List, or any successor lists thereto;
and
(VII) with regard to the treaty cited in clause (i)(II), defense articles for which
Australian laws, regulations, or other commitments would prevent Australia from
enforcing the control measures specified in such treaty.
(2) Requirements of bilateral agreement
A bilateral agreement referred to 5 paragraph (1)—
(A) shall, at a minimum, require the foreign country, as necessary, to revise its policies
and practices, and promulgate or enact necessary modifications to its laws and regulations to
establish an export control regime that is at least comparable to United States law, regulation,
and policy requiring—
(i) conditions on the handling of all United States-origin defense items exported to
the foreign country, including prior written United States Government approval for any
reexports to third countries;
(ii) end-use and retransfer control commitments, including securing binding end-use
and retransfer control commitments from all end-users, including such documentation as
is needed in order to ensure compliance and enforcement, with respect to such United
States-origin defense items;
(iii) establishment of a procedure comparable to a “watchlist” (if such a watchlist does
not exist) and full cooperation with United States Government law enforcement agencies
to allow for sharing of export and import documentation and background information
on foreign businesses and individuals employed by or otherwise connected to those
businesses; and
(iv) establishment of a list of controlled defense items to ensure coverage of those items
to be exported under the exemption; and
(B) should, at a minimum, require the foreign country, as necessary, to revise its policies
and practices, and promulgate or enact necessary modifications to its laws and regulations to
establish an export control regime that is at least comparable to United States law, regulation,
and policy regarding—
(i) controls on the export of tangible or intangible technology, including via fax, phone,
and electronic media;
(ii) appropriate controls on unclassified information relating to defense items exported
to foreign nationals;
(iii) controls on international arms trafficking and brokering;
(iv) cooperation with United States Government agencies, including intelligence
agencies, to combat efforts by third countries to acquire defense items, the export of which
to such countries would not be authorized pursuant to the export control regimes of the
foreign country and the United States; and
(v) violations of export control laws, and penalties for such violations.
(3) Advance certification
Not less than 30 days before authorizing an exemption for a foreign country from the licensing
requirements of this chapter for the export of defense items, the President shall transmit to the
Committee on International Relations of the House of Representatives and the Committee on
Foreign Relations of the Senate a certification that—
(A) the United States has entered into a bilateral agreement with that foreign country
satisfying all requirements set forth in paragraph (2);
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(B) the foreign country has promulgated or enacted all necessary modifications to its laws
and regulations to comply with its obligations under the bilateral agreement with the United
States; and
(C) the appropriate congressional committees will continue to receive notifications pursuant
to the authorities, procedures, and practices of section 2776 of this title for defense exports to
a foreign country to which that section would apply and without regard to any form of defense
export licensing exemption otherwise available for that country.
(4) Definitions
In this section:
(A) Defense items
The term “defense items” means defense articles, defense services, and related technical data.
(B) Appropriate congressional committees
The term “appropriate congressional committees” means—
(i) the Committee on International Relations and the Committee on Appropriations of
the House of Representatives; and
(ii) the Committee on Foreign Relations and the Committee on Appropriations of the
Senate.
Footnotes
1 So in original. There are two subpars. designated “(B)”.
2 So in original. The semicolon probably should be a comma.
3 So in original. Probably should be “sections”.
4 So in original. Probably should be “175c”.
5 So in original. Probably should be followed by “in”.
(Pub. L. 90–629, ch. 3, § 38, as added Pub. L. 94–329, title II, § 212(a)(1), June 30, 1976, 90 Stat. 744;
amended Pub. L. 95–92, § 20, Aug. 4, 1977, 91 Stat. 623; Pub. L. 96–70, title III, § 3303(a)(4), Sept. 27,
1979, 93 Stat. 499; Pub. L. 96–72, § 22(a), Sept. 29, 1979, 93 Stat. 535; Pub. L. 96–92, § 21, Oct. 29,
1979, 93 Stat. 710; Pub. L. 96–533, title I, § 107(a), (c), Dec. 16, 1980, 94 Stat. 3136; Pub. L. 97–113,
title I, §§ 106, 107, Dec. 29, 1981, 95 Stat. 1522; Pub. L. 99–64, title I, § 123(a), July 12, 1985, 99 Stat.
156; Pub. L. 99–83, title I, § 119(a), (b), Aug. 8, 1985, 99 Stat. 203, 204; Pub. L. 100–202, § 101(b) [title
VIII, § 8142(a)], Dec. 22, 1987, 101 Stat. 1329–43, 1329–88; Pub. L. 100–204, title XII, § 1255, Dec. 22,
1987, 101 Stat. 1429; Pub. L. 101–222, §§ 3(a), 6, Dec. 12, 1989, 103 Stat. 1896, 1899; Pub. L. 103–236,
title VII, § 714(a)(1), Apr. 30, 1994, 108 Stat. 497; Pub. L. 104–164, title I, §§ 151(a), 156, July 21, 1996,
110 Stat. 1437, 1440; Pub. L. 105–277, div. G, subdiv. A, title XII, § 1225(a)(2), Oct. 21, 1998, 112
Stat. 2681–773; Pub. L. 106–113, div. B, § 1000(a)(7) [div. B, title XIII, §§ 1302(a), 1303, 1304], Nov.
29, 1999, 113 Stat. 1536, 1501A–510, 1501A–511; Pub. L. 106–280, title I, § 102(a), (b), Oct. 6, 2000,
114 Stat. 846, 848; Pub. L. 107–228, div. B, title XIV, § 1406, Sept. 30, 2002, 116 Stat. 1458; Pub. L.
108–458, title VI, § 6910, Dec. 17, 2004, 118 Stat. 3774; Pub. L. 111–195, title I, § 107(a)(2), July 1,
2010, 124 Stat. 1337; Pub. L. 111–266, title I, §§ 102(b)–103(c), Oct. 8, 2010, 124 Stat. 2797, 2799.)
References in Text
This chapter, referred to in text, was in the original “this Act”, meaning Pub. L. 90–629, Oct. 22, 1968, 82 Stat. 1321,
which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note
set out under section 2751 of this title and Tables.
The Export Administration Act of 1979, referred to in subsec. (e), is Pub. L. 96–72, Sept. 29, 1979, 93 Stat. 503, as
amended, which is classified principally to section 2401 et seq. of Title 50, Appendix, War and National Defense. For
complete classification of this Act to the Code, see Short Title note set out under section 2401 of Title 50, Appendix,
and Tables.
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Section 104 of the Foreign Corrupt Practices Act (15 U.S.C. 78dd–2), referred to in subsec. (g)(1)(A)(vi), probably
means section 104 of the Foreign Corrupt Practices Act of 1977, which is classified to section 78dd–2 of Title 15,
Commerce and Trade.
Sections 3, 4, 5, and 6 of the Prevention of Terrorist Access to Destructive Weapons Act of 2004, referred to in subsec.
(g)(1)(A)(xii), probably means sections 6903, 6904, 6905, and 6906, respectively, of Pub. L. 108–458, which enacted
section 2332g of Title 18, Crimes and Criminal Procedure, amended sections 2122 and 2272 of Title 42, The Public
Health and Welfare, and enacted sections 2332h and 175c of Title 18.
The Immigration and Nationality Act, referred to in subsec. (g)(9)(C), is act June 27, 1952, ch. 477, 66 Stat. 163, as
amended, which is classified principally to chapter 12 (§ 1101 et seq.) of Title 8, Aliens and Nationality. For complete
classification of this Act to the Code, see Short Title note set out under section 1101 of Title 8 and Tables.
Reference to Section 1934 of This Title Deemed Reference to This Section
Section 212(b)(1) of Pub. L. 94–329 provided in part that: “Any reference to such section [section 1934 of this title]
shall be deemed to be a reference to section 38 of the Arms Export Control Act [this section] and any reference to
licenses issued under section 38 of the Arms Export Control Act [this section] shall be deemed to include a reference
to licenses issued under section 414 of the Mutual Security Act of 1954.”
Amendments
2010—Subsec. (c). Pub. L. 111–266, § 103(a), substituted “this section, section 2779 of this title, a treaty referred to
in subsection (j)(1)(C)(i), or any rule or regulation issued under this section or section 2779 of this title, including
any rule or regulation issued to implement or enforce a treaty referred to in subsection (j)(1)(C)(i) or an implementing
arrangement pursuant to such treaty” for “this section or section 2779 of this title, or any rule or regulation issued
under either section”.
Pub. L. 111–195 substituted “20 years” for “ten years”.
Subsec. (e). Pub. L. 111–266, § 103(b), substituted “defense services, including defense articles and defense services
exported or imported pursuant to a treaty referred to in subsection (j)(1)(C)(i),” for “defense services,”.
Subsec. (f)(4). Pub. L. 111–266, § 103(c), added par. (4).
Subsec. (j)(1)(B). Pub. L. 111–266, § 102(b)(1), inserted “for Canada” after “Exception” in heading.
Subsec. (j)(1)(C). Pub. L. 111–266, § 102(b)(2), added subpar. (C).
2004—Subsec. (g)(1)(A)(xii). Pub. L. 108–458 added cl. (xii).
2002—Subsec. (f)(1). Pub. L. 107–228 substituted “The President may not remove any item from the Munitions List
until 30 days after the date on which the President has provided notice of the proposed removal to the Committee on
International Relations of the House of Representatives and to the Committee on Foreign Relations of the Senate in
accordance with the procedures applicable to reprogramming notifications under section 2394–1 (a) of this title. Such
notice shall describe the nature of any controls to be imposed on that item under any other provision of law.” for “Such
a report shall be submitted at least 30 days before any item is removed from the Munitions List and shall describe the
nature of any controls to be imposed on that item under the Export Administration Act of 1979.”
2000—Subsec. (f). Pub. L. 106–280, § 102(b), designated existing provisions as par. (1) and added pars. (2) and (3).
Subsec. (j). Pub. L. 106–280, § 102(a), added subsec. (j).
1999—Subsec. (e). Pub. L. 106–113, § 1000(a)(7) [title XIII, § 1303], in first sentence, inserted “section 11(c)(2)(B) of
such Act shall not apply, and instead, as prescribed in regulations issued under this section, the Secretary of State may
assess civil penalties for violations of this chapter and regulations prescribed thereunder and further may commence
a civil action to recover such civil penalties, and except further that” after “except that”.
Subsec. (g)(1)(A)(iii). Pub. L. 106–113, § 1000(a)(7) [title XIII, § 1304], inserted “or section 2339A of such title
(relating to providing material support to terrorists)” before comma at end.
Subsec. (i). Pub. L. 106–113, § 1000(a)(7) [title XIII, § 1302(a)], added subsec. (i).
1998—Subsec. (a)(2). Pub. L. 105–277 substituted “take into account” for “be made in coordination with the Director
of the United States Arms Control and Disarmament Agency, taking into account the Director’s assessment as to” and
struck out at end “The Director of the Arms Control and Disarmament Agency is authorized, whenever the Director
determines that the issuance of an export license under this section would be detrimental to the national security of the
United States, to recommend to the President that such export license be disapproved.”
1996—Subsec. (b)(1)(A). Pub. L. 104–164, § 151(a), designated existing provisions of subpar. (A) as cl. (i) and added
cl. (ii).
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Subsec. (e). Pub. L. 104–164, § 156, inserted before period at end of first sentence “, except that the names of the
countries and the types and quantities of defense articles for which licenses are issued under this section shall not be
withheld from public disclosure unless the President determines that the release of such information would be contrary
to the national interest”.
1994—Subsec. (a)(2). Pub. L. 103–236 amended par. (2) generally. Prior to amendment, par. (2) read as follows:
“Decisions on issuing export licenses under this section shall be made in coordination with the Director of the United
States Arms Control and Disarmament Agency and shall take into account the Director’s opinion as to whether the
export of an article will contribute to an arms race, support international terrorism, increase the possibility of outbreak
or escalation of conflict, or prejudice the development of bilateral or multilateral arms control arrangements.”
1989—Subsec. (a)(2). Pub. L. 101–222, § 3(a), inserted “support international terrorism,” after “arms race,”.
Subsec. (h). Pub. L. 101–222, § 6, added subsec. (h).
1987—Subsec. (b)(1). Pub. L. 100–204, § 1255(b), designated existing provisions as subpar. (A) and added subpar.
(B) relating to review by Secretary of the Treasury of munitions control registrations.
Pub. L. 100–202 designated existing provisions as subpar. (A) and added subpar. (B) relating to allowance of return
to United States of certain military firearms, etc., under certain circumstances.
Subsec. (b)(3). Pub. L. 100–204, § 1255(c), added par. (3).
Subsec. (g). Pub. L. 100–204, § 1255(a), added subsec. (g).
1985—Subsec. (c). Pub. L. 99–83, § 119(a), inserted “for each violation” before “not more” and substituted
“$1,000,000” for “$100,000” and “ten” for “two”.
Subsec. (e). Pub. L. 99–83, § 119(b), inserted provisions relating to civil penalty for each violation.
Pub. L. 99–64 substituted “(g)” for “(f)”.
1981—Subsec. (b)(3). Pub. L. 97–113, § 106, struck out par. (3) which placed a $100,000,000 ceiling on commercial
arms exports of major defense equipment to all countries other than NATO countries, Japan, Australia, and New
Zealand.
Subsec. (f). Pub. L. 97–113, § 107, added subsec. (f).
1980—Subsec. (a)(3). Pub. L. 96–533, § 107(c), added par. (3).
Subsec. (b)(3). Pub. L. 96–533, § 107(a), increased the limitation in the sale of major defense equipment exports to
$100,000,000 from $35,000,000.
1979—Subsec. (b)(3). Pub. L. 96–92 increased the limitation in the sale of major defense equipment exports to
$35,000,000 from $25,000,000.
Subsec. (d). Pub. L. 96–70 struck out subsec. (d) which provided that this section applies to and within the Canal Zone.
Subsec. (e). Pub. L. 96–72 substituted “subsections (c), (d), (e), and (f) of section 11 of the Export Administration Act
of 1979, and by subsections (a) and (c) of section 12 of such Act” for “sections 6(c), (d), (e), and (f) and 7(a) and (c)
of the Export Administration Act of 1969”.
1977—Subsec. (b)(3). Pub. L. 95–92 inserted provisions relating to exceptions to prohibitions against issuance of
licenses under this section and procedures applicable for implementation of such exceptions.
Change of Name
Committee on International Relations of House of Representatives changed to Committee on Foreign Affairs of House
of Representatives by House Resolution No. 6, One Hundred Tenth Congress, Jan. 5, 2007.
Effective Date of 1998 Amendment
Amendment by Pub. L. 105–277 effective Apr. 1, 1999, see section 1201 of Pub. L. 105–277, set out as an Effective
Date note under section 6511 of this title.
Effective Date of 1996 Amendment
Section 151(b) of Pub. L. 104–164 provided that: “Section 38(b)(1)(A)(ii) of the Arms Export Control Act, as added
by subsection (a) [22 U.S.C. 2778 (b)(1)(A)(ii)], shall apply with respect to brokering activities engaged in beginning
on or after 120 days after the enactment of this Act [July 21, 1996].”
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Effective Date of 1987 Amendment
Section 101 (b) [title VIII, § 8142(b)] of Pub. L. 100–202 provided that:
“(1) Except as provided in paragraphs (2) and (3), subparagraph (B) of section 38(b)(1) of the Arms Export Control
Act [subsec. (b)(1)(B) of this section], as added by subsection (a), shall take effect at the end of the ninety-day period
beginning on the date of the enactment of this Act [Dec. 22, 1987].
“(2)(A) Such subparagraph shall take effect on the date of the enactment of this Act [Dec. 22, 1987] with respect to any
military firearms or ammunition (or components, parts, accessories and attachments for such firearms) with respect to
which an import permit was issued by the Secretary of the Treasury on or after July 1, 1986, irrespective of whether
such import permit was subsequently suspended, revoked, or withdrawn by the Secretary of the Treasury based on the
application of section 38(b)(1) of the Arms Export Control Act [subsec. (b)(1) of this section] as in effect on the day
before the date of the enactment of this Act.
“(B) In the case of an import permit described in subparagraph (A) which was suspended, revoked, or withdrawn by
the Secretary of the Treasury during the period beginning on July 1, 1986, and ending on the date of the enactment of
this Act [Dec. 22, 1987] under the conditions described in such subparagraph, such import permit shall be reinstated
and reissued immediately upon the enactment of this Act, and in any event not later than ten days after the date of
the enactment of this Act.
“(3) During the period preceding the revision of regulations issued under section 38(b)(1) of the Arms Export Control
Act [subsec. (b)(1) of this section] to reflect the provisions of subparagraph (B) of such section, as added by subsection
(a), such regulations may not be applied with respect to matters covered by paragraph (2) of this subsection so as to
prohibit or otherwise restrict the importation of firearms described in that paragraph or in any other manner inconsistent
with that paragraph, notwithstanding that such regulations have not yet been so revised: Provided, That this section shall
not take effect if during the twenty day period beginning on the date of enactment of this section [Dec. 22, 1987] the
Secretary of State, the Secretary of Defense, or the Secretary of the Treasury notifies Congress that he has an objection
to the intent of this section: Provided further, That the Attorney General shall, within the period of time stated in the
first proviso, submit a certification to Congress indicating whether the enactment of this section will interfere with any
ongoing criminal investigation with respect to this section. If a certification of criminal investigative interference or
an objection to the intent of this section is made, as herein provided, no permit shall be issued to anyone.”
Effective Date of 1985 Amendment
Section 119(c) of Pub. L. 99–83 provided that: “This section [amending this section] shall take effect upon the date
of enactment of this Act [Aug. 8, 1985] or October 1, 1985, whichever is later. The amendments made by this section
apply with respect to violations occurring after the effective date of this section.”
Effective Date of 1979 Amendments
Amendment by Pub. L. 96–72 effective upon the expiration of the Export Administration Act of 1969, which
terminated on Sept. 30, 1979, or upon any prior date which the Congress by concurrent resolution or the President by
proclamation designated, see section 2418 and Prior Provisions note set out under section 2413 of Title 50, Appendix,
War and National Defense.
Amendment by Pub. L. 96–70 effective Oct. 1, 1979, see section 3304 of Pub. L. 96–70, set out as an Effective Date
note under section 3601 of this title.
Regulations
Pub. L. 111–266, title I, § 106, Oct. 8, 2010, 124 Stat. 2802, provided that: “The President is authorized to issue
regulations pursuant to the Arms Export Control Act (22 U.S.C. 2751 et seq.) to implement and enforce the Treaty
Between the Government of the United States of America and the Government of the United Kingdom of Great Britain
and Northern Ireland Concerning Defense Trade Cooperation, done at Washington and London on June 21 and 26,
2007 (and any implementing arrangement thereto) and the Treaty Between the Government of the United States of
America and the Government of Australia Concerning Defense Trade Cooperation, done at Sydney, September 5,
2007 (and any implementing arrangement thereto), consistent with other applicable provisions of the Arms Export
Control Act, as amended by this Act [see Short Title of 2010 Amendment notes set out under section 2751 of this
title], and with the terms of any resolution of advice and consent adopted by the Senate with respect to either treaty.”
Rule of Construction
Pub. L. 111–266, title I, § 107, Oct. 8, 2010, 124 Stat. 2802, provided that: “Nothing in this title [see section 101 of
Pub. L. 111–266, set out as a Short Title of 2010 Amendment note under section 2751 of this title], the Treaty Between
the Government of the United States of America and the Government of the United Kingdom of Great Britain and
Northern Ireland Concerning Defense Trade Cooperation, done at Washington and London on June 21 and 26, 2007
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(and any implementing arrangement thereto), the Treaty Between the Government of the United States of America
and the Government of Australia Concerning Defense Trade Cooperation, done at Sydney, September 5, 2007 (and
any implementing arrangement thereto), or in any regulation issued to implement either treaty, shall be construed to
modify or supersede any provision of law or regulation other than the Arms Export Control Act (22 U.S.C. 2751 et
seq.), as amended by this Act [see Short Title of 2010 Amendment notes set out under section 2751 of this title], and
the International Traffic in Arms Regulations (subchapter M of chapter I of title 22, Code of Federal Regulations).”
Delegation of Functions
Functions of President under this section, with certain exceptions, delegated to Secretary of State, with concurrence of
Secretary of Defense required for designations of items or categories of items which are considered as defense articles
or services subject to export control under this section, by section 1(l)(1) of Ex. Ord. No. 11958, Jan. 18, 1977, 42
F.R. 4311, as amended, set out as a note under section 2751 of this title.
Functions of President under this section relating to the control of import of defense articles and services transferred
to Attorney General, with certain requirements for considering the views of Secretary of State and for receiving
concurrence of Secretary of State and Secretary of Defense for designations of items or categories of items which
are considered as defense articles and services subject to import control under this section, by section 1(l)(2) of Ex.
Ord. No. 11958.
Functions of President which involve subsec. (e) of this section and are agreed to by Secretary of State and Secretary
of Commerce delegated to Secretary of Commerce to be carried out on behalf of Secretary of State by section 1(l)(3)
of Ex. Ord. No. 11958.
Limitation on Implementing Arrangements
Pub. L. 111–266, title I, § 105, Oct. 8, 2010, 124 Stat. 2800, provided that:
“(a) In General.—No amendment to an implementing arrangement concluded pursuant to a treaty referred to in section
38(j)(1)(C)(i) of the Arms Export Control Act, as added by this Act [22 U.S.C. 2778 (j)(1)(C)(i)], shall enter into effect
for the United States unless the Congress adopts, and there is enacted, legislation approving the entry into effect of
that amendment for the United States.
“(b) Covered Amendments.—
“(1) In general.—The requirements specified in subsection (a) shall apply to any amendment other than an amendment
that addresses an administrative or technical matter. The requirements in subsection (a) shall not apply to any
amendment that solely addresses an administrative or technical matter.
“(2) U.S.-UK implementing arrangement.—In the case of the Implementing Arrangement Pursuant to the Treaty
Between the Government of the United States of America and the Government of the United Kingdom of Great Britain
and Northern Ireland Concerning Defense Trade Cooperation, signed at Washington February 14, 2008, amendments
to which the requirements specified in subsection (a) apply shall include—
“(A) any amendment to section 2, paragraphs (1), (2), or (3) that modifies the criteria governing operations, programs,
and projects to which the treaty applies;
“(B) any amendment to section 3, paragraphs (1) or (2) that modifies the criteria governing end-use requirements and
the requirements for approved community members responding to United States Government solicitations;
“(C) any amendment to section 4, paragraph (4) that modifies the criteria for including items on the list of defense
articles exempt from the treaty;
“(D) any amendment to section 4, paragraph (7) that modifies licensing and other applicable requirements relating to
items added to the list of defense articles exempt from the scope of the treaty;
“(E) any amendment to section 7, paragraph (4) that modifies the criteria for eligibility in the approved community
under the treaty for nongovernmental United Kingdom entities and facilities;
“(F) any amendment to section 7, paragraph (9) that modifies the conditions for suspending or removing a United
Kingdom entity from the approved community under the treaty;
“(G) any amendment to section 7, paragraphs (11) or (12) that modifies the conditions under which individuals may
be granted access to defense articles exported under the treaty;
“(H) any amendment to section 9, paragraphs (1), (3), (7), (8), (9), (12), or (13) that modifies the circumstances
under which United States Government approval is required for the re-transfer or re-export of a defense article, or to
exceptions to such requirement; and
“(I) any amendment to section 11, paragraph (4)(b) that modifies conditions of entry to the United Kingdom community
under the treaty.
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“(3) U.S.-Australia implementing arrangement.—In the case of the Implementing Arrangement Pursuant to the Treaty
Between the Government of the United States of America and the Government of the [sic] Australia Concerning
Defense Trade Cooperation, signed at Washington March 14, 2008, amendments to which the requirements specified
in subsection (a) apply shall include—
“(A) any amendment to section 2, paragraphs (1), (2), or (3) that modifies the criteria governing operations, programs,
and projects to which the treaty applies;
“(B) any amendment to section 3, paragraphs (1) or (2) that modifies the criteria governing end-use requirements and
the requirements for approved community members responding to United States Government solicitations;
“(C) any amendment to section 4, paragraph (4) that modifies criteria for including items on the list of defense articles
exempt from the scope of the treaty;
“(D) any amendment to section 4, paragraph (7) that modifies licensing and other applicable requirements relating to
items added to the list of defense articles exempt from the scope of the treaty;
“(E) any amendment to section 6, paragraph (4) that modifies the criteria for eligibility in the approved community
under the treaty for nongovernmental Australian entities and facilities;
“(F) any amendment to section 6, paragraph (9) that modifies the conditions for suspending or removing an Australian
entity from the Australia community under the treaty;
“(G) any amendment to section 6, paragraphs (11), (12), (13), or (14) that modifies the conditions under which
individuals may be granted access to defense articles exported under the treaty;
“(H) any amendment to section 9, paragraphs (1), (2), (4), (7), or (8) that modifies the circumstances under which
United States Government approval is required for the re-transfer or re-export of a defense article, or to exceptions
to such requirement; and
“(I) any amendment to section 11, paragraph (6) that modifies conditions of entry to the Australian community under
the treaty.
“(c) Congressional Notification for Other Amendments To Implementing Arrangements.—Not later than 15 days
before any amendment to an implementing arrangement to which subsection (a) does not apply shall take effect, the
President shall provide to the Committee on Foreign Relations of the Senate and the Committee on Foreign Affairs
of the House of Representatives a report containing—
“(1) the text of the amendment; and
“(2) an analysis of the amendment’s effect, including an analysis regarding why subsection (a) does not apply.”
Information Management Priorities
Pub. L. 107–228, div. B, title XIV, § 1403, Sept. 30, 2002, 116 Stat. 1453, provided that:
“(a) Objective.—The Secretary shall establish a secure, Internet-based system for the filing and review of applications
for export of Munitions List items.
“(b) Establishment of an Electronic System.—Of the amount made available pursuant to section 1402 of this Act [116
Stat. 1453], $3,000,000 is authorized to be available to fully automate the Defense Trade Application System, and
to ensure that the system—
“(1) is a secure, electronic system for the filing and review of Munitions List license applications;
“(2) is accessible by United States companies through the Internet for the purpose of filing and tracking their Munitions
List license applications; and
“(3) is capable of exchanging data with—
“(A) the Export Control Automated Support System of the Department of Commerce;
“(B) the Foreign Disclosure and Technology Information System and the USXPORTS systems of the Department of
Defense;
“(C) the Export Control System of the Central Intelligence Agency; and
“(D) the Proliferation Information Network System of the Department of Energy.
“(c) Munitions List Defined.—In this section, the term ‘Munitions List’ means the United States Munitions List of
defense articles and defense services controlled under section 38 of the Arms Export Control Act (22 U.S.C. 2778).”
[For definition of “Secretary” as used in section 1403 of Pub. L. 107–228, set out above, see section 3 of Pub. L.
107–228, set out as a note under section 2651 of this title.]
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Effective Regulation of Satellite Export Activities
Pub. L. 106–113, div. B, § 1000(a)(7) [div. B, title XIII, § 1309], Nov. 29, 1999, 113 Stat. 1536, 1501A–513, provided
that:
“(a) Licensing regime.—
“(1) Establishment.—The Secretary of State shall establish a regulatory regime for the licensing for export of
commercial satellites, satellite technologies, their components, and systems which shall include expedited approval,
as appropriate, of the licensing for export by United States companies of commercial satellites, satellite technologies,
their components, and systems, to NATO allies and major non-NATO allies (as used within the meaning of section
644(q) of the Foreign Assistance Act of 1961 [22 U.S.C. 2403 (q)]).
“(2) Requirements.—For proposed exports to those nations which meet the requirements of paragraph (1), the regime
should include expedited processing of requests for export authorizations that—
“(A) are time-critical, including a transfer or exchange of information relating to a satellite failure or anomaly in-flight
or on-orbit;
“(B) are required to submit bids to procurements offered by foreign persons;
“(C) relate to the re-export of unimproved materials, products, or data; or
“(D) are required to obtain launch and on-orbit insurance.
“(3) Additional requirements.—In establishing the regulatory regime under paragraph (1), the Secretary of State shall
ensure that—
“(A) United States national security considerations and United States obligations under the Missile Technology Control
Regime are given priority in the evaluation of any license; and
“(B) such time is afforded as is necessary for the Department of Defense, the Department of State, and the United
States intelligence community to conduct a review of any license.
“(b) Financial and Personnel Resources.—Of the funds authorized to be appropriated in section 101 (1)(A) [113 Stat.
1501A–410], $9,000,000 is authorized to be appropriated for the Office of Defense Trade Controls of the Department
of State for each of the fiscal years 2000 and 2001, to enable that office to carry out its responsibilities.
“(c) Improvement and Assessment.—The Secretary of State should, not later than 6 months after the date of the
enactment of this Act [Nov. 29, 1999], submit to the Congress a plan for—
“(1) continuously gathering industry and public suggestions for potential improvements in the Department of State’s
export control regime for commercial satellites; and
“(2) arranging for the conduct and submission to Congress, not later than 15 months after the date of the enactment
of this Act, of an independent review of the export control regime for commercial satellites as to its effectiveness at
promoting national security and economic competitiveness.”
Proliferation and Export Controls
Pub. L. 106–65, div. A, title XIV, §§ 1402–1405, 1408–1412, Oct. 5, 1999, 113 Stat. 798–804, as amended by Pub.
L. 106–398, § 1 [[div. A], title XII, § 1204], Oct. 30, 2000, 114 Stat. 1654, 1654A–325; Pub. L. 107–107, div. A, title
X, § 1048(g)(8), Dec. 28, 2001, 115 Stat. 1228, provided that:
“SEC. 1402. ANNUAL REPORT ON TRANSFERS OF MILITARILY SENSITIVE TECHNOLOGY TO
COUNTRIES AND ENTITIES OF CONCERN
“(a) Annual Report.—Not later than March 30 of each year beginning in the year 2000 and ending in the year 2007,
the President shall transmit to Congress a report on transfers to countries and entities of concern during the preceding
calendar year of the most significant categories of United States technologies and technical information with potential
military applications.
“(b) Contents of Report.—The report required by subsection (a) shall include, at a minimum, the following:
“(1) An assessment by the Director of Central Intelligence of efforts by countries and entities of concern to acquire
technologies and technical information referred to in subsection (a) during the preceding calendar year.
“(2) An assessment by the Secretary of Defense, in consultation with the Joint Chiefs of Staff and the Director of
Central Intelligence, of the cumulative impact of licenses granted by the United States for exports of technologies and
technical information referred to in subsection (a) to countries and entities of concern during the preceding 5-calendar
year period on—
“(A) the military capabilities of such countries and entities; and
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“(B) countermeasures that may be necessary to overcome the use of such technologies and technical information.
“(3) An audit by the Inspectors General of the Departments of Defense, State, Commerce, and Energy, in consultation
with the Director of Central Intelligence and the Director of the Federal Bureau of Investigation, of the policies and
procedures of the United States Government with respect to the export of technologies and technical information
referred to in subsection (a) to countries and entities of concern.
“(4) The status of the implementation or other disposition of recommendations included in reports of audits by
Inspectors General that have been set forth in a previous annual report under this section pursuant to paragraph (3).
“(c) Additional Requirement for First Report.—The first annual report required by subsection (a) shall include an
assessment by the Inspectors General of the Departments of State, Defense, Commerce, and the Treasury and the
Inspector General of the Central Intelligence Agency of the adequacy of current export controls and counterintelligence
measures to protect against the acquisition by countries and entities of concern of United States technology and
technical information referred to in subsection (a).
“(d) Support of Other Agencies.—Upon the request of the officials responsible for preparing the assessments required
by subsection (b), the heads of other departments and agencies shall make available to those officials all information
necessary to carry out the requirements of this section.
“(e) Classified and Unclassified Reports.—Each report required by this section shall be submitted in classified form
and unclassified form.
“(f) Definition.—As used in this section, the term ‘countries and entities of concern’ means—
“(1) any country the government of which the Secretary of State has determined, for purposes of section 6(j) of the
Export Administration Act of 1979 [50 App. U.S.C. 2405 (j)] or other applicable law, to have repeatedly provided
support for acts of international terrorism;
“(2) any country that—
“(A) has detonated a nuclear explosive device (as defined in section 830(4) of the Nuclear Proliferation Prevention
Act of 1994 (22 U.S.C. 6305 (4))); and
“(B) is not a member of the North Atlantic Treaty Organization; and
“(3) any entity that—
“(A) is engaged in international terrorism or activities in preparation thereof; or
“(B) is directed or controlled by the government of a country described in paragraph (1) or (2).
“SEC. 1403. RESOURCES FOR EXPORT LICENSE FUNCTIONS
“(a) Office of Defense Trade Controls.—
“(1) In general.—The Secretary of State shall take the necessary steps to ensure that, in any fiscal year, adequate
resources are allocated to the functions of the Office of Defense Trade Controls of the Department of State relating
to the review and processing of export license applications so as to ensure that those functions are performed in a
thorough and timely manner.
“(2) Availability of existing appropriations.—The Secretary of State shall take the necessary steps to ensure that those
funds made available under the heading ‘Administration of Foreign Affairs, Diplomatic and Consular Programs’ in
title IV of the Departments of Commerce, Justice, and State, the Judiciary, and Related Agencies Appropriations Act,
1999, as contained in the Omnibus Consolidated and Emergency Supplemental Appropriations Act, 1999 (Public Law
105–277) [112 Stat. 2681–92] are made available, upon the enactment of this Act, to the Office of Defense Trade
Controls of the Department of State to carry out the purposes of the Office.
“(b) Defense Threat Reduction Agency.—The Secretary of Defense shall take the necessary steps to ensure that, in
any fiscal year, adequate resources are allocated to the functions of the Defense Threat Reduction Agency of the
Department of Defense relating to the review of export license applications so as to ensure that those functions are
performed in a thorough and timely manner.
“(c) Updating of State Department Report.—Not later than March 1, 2000, the Secretary of State, in consultation with
the Secretary of Defense and the Secretary of Commerce, shall transmit to Congress a report updating the information
reported to Congress under section 1513(d)(3) of the Strom Thurmond National Defense Authorization Act for Fiscal
Year 1999 [Pub. L. 105–261] (22 U.S.C. 2778 note ).
“SEC. 1404. SECURITY IN CONNECTION WITH SATELLITE EXPORT LICENSING
“As a condition of the export license for any satellite to be launched in a country subject to section 1514 of the Strom
Thurmond National Defense Authorization Act for Fiscal Year 1999 [Pub. L. 105–261] (22 U.S.C. 2778 note ), the
Secretary of State shall require the following:
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“(1) That the technology transfer control plan required by section 1514(a)(1) of the Strom Thurmond National Defense
Authorization Act for Fiscal Year 1999 (22 U.S.C. 2778 note ) be prepared by the Department of Defense and the
licensee, and that the plan set forth enhanced security arrangements for the launch of the satellite, both before and
during launch operations.
“(2) That each person providing security for the launch of that satellite—
“(A) report directly to the launch monitor with regard to issues relevant to the technology transfer control plan;
“(B) have received appropriate training in the International Trafficking in Arms Regulations (hereafter in this title
[enacting this note and amending provisions set out as a note under section 2404 of Title 50, Appendix, War and
National Defense] referred to as ‘ITAR’).
“(C) have significant experience and expertise with satellite launches; and
“(D) have been investigated in a manner at least as comprehensive as the investigation required for the issuance of a
security clearance at the level designated as ‘Secret’.
“(3) That the number of such persons providing security for the launch of the satellite shall be sufficient to maintain
24-hour security of the satellite and related launch vehicle and other sensitive technology.
“(4) That the licensee agree to reimburse the Department of Defense for all costs associated with the provision of
security for the launch of the satellite.
“SEC. 1405. REPORTING OF TECHNOLOGY TRANSMITTED TO PEOPLE’S REPUBLIC OF CHINA AND OF
FOREIGN LAUNCH SECURITY VIOLATIONS
“(a) Monitoring of Information.—The Secretary of Defense shall require that space launch monitors of the Department
of Defense assigned to monitor launches in the People’s Republic of China maintain records of all information
authorized to be transmitted to the People’s Republic of China with regard to each space launch that the monitors
are responsible for monitoring, including copies of any documents authorized for such transmission, and reports on
launch-related activities.
“(b) Transmission to Other Agencies.—The Secretary of Defense shall ensure that records under subsection (a) are
transmitted on a current basis to appropriate elements of the Department of Defense and to the Department of State,
the Department of Commerce, and the Central Intelligence Agency.
“(c) Retention of Records.—Records described in subsection (a) shall be retained for at least the period of the statute
of limitations for violations of the Arms Export Control Act [22 U.S.C. 2751 et seq.].
“(d) Guidelines.—The Secretary of Defense shall prescribe guidelines providing space launch monitors of the
Department of Defense with the responsibility and the ability to report serious security violations, problems, or
other issues at an overseas launch site directly to the headquarters office of the responsible Department of Defense
component.
“SEC. 1408. ENHANCED MULTILATERAL EXPORT CONTROLS
“(a) New International Controls.—The President shall seek to establish new enhanced international controls on
technology transfers that threaten international peace and United States national security.
“(b) Improved Sharing of Information.—The President shall take appropriate actions to improve the sharing of
information by nations that are major exporters of technology so that the United States can track movements of
technology covered by the Wassenaar Arrangement and enforce technology controls and re-export requirements for
such technology.
“(c) Definition.—As used in this section, the term ‘Wassenaar Arrangement’ means the multilateral export control
regime covering conventional armaments and sensitive dual-use goods and technologies that was agreed to by 33
co-founding countries in July 1996 and began operation in September 1996.
“SEC. 1409. ENHANCEMENT OF ACTIVITIES OF DEFENSE THREAT REDUCTION AGENCY
“(a) In General.—Not later than 180 days after the date of the enactment of this Act [Oct. 5, 1999], the Secretary of
Defense shall prescribe regulations to—
“(1) authorize the personnel of the Defense Threat Reduction Agency (DTRA) who monitor satellite launch campaigns
overseas to suspend such campaigns at any time if the suspension is required for purposes of the national security of
the United States;
“(2) ensure that persons assigned as space launch campaign monitors are provided sufficient training and have adequate
experience in the regulations prescribed by the Secretary of State known as the ITAR and have significant experience
and expertise with satellite technology, launch vehicle technology, and launch operations technology;
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“(3) ensure that adequate numbers of such monitors are assigned to space launch campaigns so that 24-hour, 7-day
per week coverage is provided;
“(4) take steps to ensure, to the maximum extent possible, the continuity of service by monitors for the entire space
launch campaign period (from satellite marketing to launch and, if necessary, completion of a launch failure analysis);
“(5) adopt measures designed to make service as a space launch campaign monitor an attractive career opportunity;
“(6) allocate funds and other resources to the Agency at levels sufficient to prevent any shortfalls in the number of
such personnel;
“(7) establish mechanisms in accordance with the provisions of section 1514(a)(2)(A) of the Strom Thurmond National
Defense Authorization Act for Fiscal Year 1999 (Public Law 105–261; 112 Stat. 2175; 22 U.S.C. 2778 note ) that
provide for—
“(A) the payment to the Department of Defense by the person or entity receiving the launch monitoring services
concerned, before the beginning of a fiscal year, of an amount equal to the amount estimated to be required by the
Department to monitor the launch campaigns during that fiscal year;
“(B) the reimbursement of the Department of Defense, at the end of each fiscal year, for amounts expended by the
Department in monitoring the launch campaigns in excess of the amount provided under subparagraph (A); and
“(C) the reimbursement of the person or entity receiving the launch monitoring services if the amount provided under
subparagraph (A) exceeds the amount actually expended by the Department of Defense in monitoring the launch
campaigns;
“(8) review and improve guidelines on the scope of permissible discussions with foreign persons regarding technology
and technical information, including the technology and technical information that should not be included in such
discussions;
“(9) provide, in conjunction with other Federal agencies, on at least an annual basis, briefings to the officers and
employees of United States commercial satellite entities on United States export license standards, guidelines, and
restrictions, and encourage such officers and employees to participate in such briefings;
“(10) establish a system for—
“(A) the preparation and filing by personnel of the Agency who monitor satellite launch campaigns overseas of detailed
reports of all relevant activities observed by such personnel in the course of monitoring such campaigns;
“(B) the systematic archiving of reports filed under subparagraph (A); and
“(C) the preservation of such reports in accordance with applicable laws; and
“(11) establish a counterintelligence program within the Agency as part of its satellite launch monitoring program.
“(b) Annual Report on Implementation of Satellite Technology Safeguards.—(1) The Secretary of Defense and the
Secretary of State shall each submit to Congress each year, as part of the annual report for that year under section
1514(a)(8) of the Strom Thurmond National Defense Authorization Act for Fiscal Year 1999 [Pub. L. 105–261, 22
U.S.C. 2778 note ], the following:
“(A) A summary of the satellite launch campaigns and related activities monitored by the Defense Threat Reduction
Agency during the preceding fiscal year.
“(B) A description of any license infractions or violations that may have occurred during such campaigns and activities.
“(C) A description of the personnel, funds, and other resources dedicated to the satellite launch monitoring program
of the Agency during that fiscal year.
“(D) An assessment of the record of United States satellite makers in cooperating with Agency monitors, and in
complying with United States export control laws, during that fiscal year.
“(2) Each report under paragraph (1) shall be submitted in classified form and unclassified form.
“SEC. 1410. TIMELY NOTIFICATION OF LICENSING DECISIONS BY THE DEPARTMENT OF STATE
“Not later than 180 days after the date of the enactment of this Act [Oct. 5, 1999], the Secretary of State shall prescribe
regulations to provide timely notice to the manufacturer of a commercial satellite of United States origin of the final
determination of the decision on the application for a license involving the overseas launch of such satellite.
“SEC. 1411. ENHANCED INTELLIGENCE CONSULTATION ON SATELLITE LICENSE APPLICATIONS
“(a) Consultation During Review of Applications.—The Secretary of State and Secretary of Defense, as appropriate,
shall consult with the Director of Central Intelligence during the review of any application for a license involving the
overseas launch of a commercial satellite of United States origin. The purpose of the consultation is to assure that the
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launch of the satellite, if the license is approved, will meet the requirements necessary to protect the national security
interests of the United States.
“(b) Advisory Group.—(1) The Director of Central Intelligence shall establish within the intelligence community
an advisory group to provide information and analysis to Congress, and to appropriate departments and agencies of
the Federal Government, on the national security implications of granting licenses involving the overseas launch of
commercial satellites of United States origin.
“(2) The advisory group shall include technically-qualified representatives of the Central Intelligence Agency, the
Defense Intelligence Agency, the National Security Agency, the National Air Intelligence Center, and the Department
of State Bureau of Intelligence and Research and representatives of other elements of the intelligence community with
appropriate expertise.
“(3) In addition to the duties under paragraph (1), the advisory group shall—
“(A) review, on a continuing basis, information relating to transfers of satellite, launch vehicle, or other technology or
knowledge with respect to the course of the overseas launch of commercial satellites of United States origin; and
“(B) analyze the potential impact of such transfers on the space and military systems, programs, or activities of foreign
countries.
“(4) The Director of the Nonproliferation Center of the Central Intelligence Agency shall serve as chairman of the
advisory group.
“(5)(A) The advisory group shall, upon request (but not less often than annually), submit reports on the matters referred
to in paragraphs (1) and (3) to the appropriate committees of Congress and to appropriate departments and agencies
of the Federal Government.
“(B) The first annual report under subparagraph (A) shall be submitted not later than one year after the date of the
enactment of this Act [Oct. 5, 1999].
“(c) Intelligence Community Defined.—In this section, the term ‘intelligence community’ has the meaning given that
term in section 3(4) of the National Security Act of 1947 (50 U.S.C. 401a (4)).
“SEC. 1412. INVESTIGATIONS OF VIOLATIONS OF EXPORT CONTROLS BY UNITED STATES SATELLITE
MANUFACTURERS
“(a) Notice to Congress of Investigations.—The President shall promptly notify the appropriate committees of
Congress whenever an investigation is undertaken by the Department of Justice of—
“(1) an alleged violation of United States export control laws in connection with a commercial satellite of United
States origin; or
“(2) an alleged violation of United States export control laws in connection with an item controlled under section 38
of the Arms Export Control Act (22 U.S.C. 2778) that is likely to cause significant harm or damage to the national
security interests of the United States.
“(b) Notice to Congress of Certain Export Waivers.—The President shall promptly notify the appropriate committees
of Congress whenever an export waiver pursuant to section 902 of the Foreign Relations Authorization Act, Fiscal
Years 1990 and 1991 [Pub. L. 101–246] (22 U.S.C. 2151 note ) is granted on behalf of any United States person that
is the subject of an investigation described in subsection (a). The notice shall include a justification for the waiver.
“(c) Exception.—The requirements in subsections (a) and (b) shall not apply if the President determines that
notification of the appropriate committees of Congress under such subsections would jeopardize an on-going criminal
investigation. If the President makes such a determination, the President shall provide written notification of such
determination to the Speaker of the House of Representatives, the majority leader of the Senate, the minority leader
of the House of Representatives, and the minority leader of the Senate. The notification shall include a justification
for the determination.
“(d) Identification of Persons Subject to Investigation.—The Secretary of State and the Attorney General shall develop
appropriate mechanisms to identify, for the purposes of processing export licenses for commercial satellites, persons
who are the subject of an investigation described in subsection (a).
“(e) Protection of Classified and Other Sensitive Information.—The appropriate committees of Congress shall ensure
that appropriate procedures are in place to protect from unauthorized disclosure classified information, information
relating to intelligence sources and methods, and sensitive law enforcement information that is furnished to those
committees pursuant to this section.
“(f) Statutory Construction.—Nothing in this section shall be construed to modify or supersede any other requirement
to report information on intelligence activities to Congress, including the requirement under section 501 of the National
Security Act of 1947 (50 U.S.C. 413).
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“(g) Definitions.—As used in this section:
“(1) The term ‘appropriate committees of Congress’ means the following:
“(A) The Committee on Armed Services, the Committee on Foreign Relations, and the Select Committee on
Intelligence of the Senate.
“(B) The Committee on Armed Services, the Committee on International Relations [now Committee on Foreign
Affairs], and the Permanent Select Committee on Intelligence of the House of Representatives.
“(2) The term ‘United States person’ means any United States resident or national (other than an individual resident
outside the United States and employed by other than a United States person), any domestic concern (including any
permanent domestic establishment of any foreign concern), and any foreign subsidiary or affiliate (including any
permanent foreign establishment) of any domestic concern which is controlled in fact by such domestic concern, as
determined under regulations of the President.”
[Memorandum of President of the United States, Jan. 5, 2000, 65 F.R. 2279, delegated to Secretary of Defense the
duties and responsibilities of the President under section 1402 of Public Law 106–65 and directed Department of
Defense to prepare the report required by section 1402 with the assistance of Department of State, Department of
Commerce, Department of Energy, Department of the Treasury, Director of Central Intelligence, and Federal Bureau
of Investigation and to obtain concurrence on the report from Department of State, Department of Commerce, Director
of Central Intelligence on behalf of Intelligence Community, Department of the Treasury, and Federal Bureau of
Investigation prior to submission to Congress.]
[Reference to the Director of Central Intelligence or the Director of the Central Intelligence Agency in the Director’s
capacity as the head of the intelligence community deemed to be a reference to the Director of National Intelligence.
Reference to the Director of Central Intelligence or the Director of the Central Intelligence Agency in the Director’s
capacity as the head of the Central Intelligence Agency deemed to be a reference to the Director of the Central
Intelligence Agency. See section 1081(a), (b) of Pub. L. 108–458, set out as a note under section 401 of Title 50, War
and National Defense.]
Satellite Export Controls
Pub. L. 105–261, div. A, title XV, subtitle B, Oct. 17, 1998, 112 Stat. 2173, as amended by Pub. L. 105–277, div. C,
title I, § 146(a), Oct. 21, 1998, 112 Stat. 2681–610, provided that:
“SEC. 1511. SENSE OF CONGRESS.
“It is the sense of Congress that—
“(1) United States business interests must not be placed above United States national security interests;
“(2) United States foreign policy and the policies of the United States regarding commercial relations with other
countries should affirm the importance of observing and adhering to the Missile Technology Control Regime (MTCR);
“(3) the United States should encourage universal observance of the Guidelines to the Missile Technology Control
Regime;
“(4) the exportation or transfer of advanced communication satellites and related technologies from United States
sources to foreign recipients should not increase the risks to the national security of the United States;
“(5) due to the military sensitivity of the technologies involved, it is in the national security interests of the United
States that United States satellites and related items be subject to the same export controls that apply under United
States law and practices to munitions;
“(6) the United States should not issue any blanket waiver of the suspensions contained in section 902 of the Foreign
Relations Authorization Act, Fiscal Years 1990 and 1991 (Public Law 101–246) [22 U.S.C. 2151 note ], regarding the
export of satellites of United States origin intended for launch from a launch vehicle owned by the People’s Republic
of China;
“(7) the United States should pursue policies that protect and enhance the United States space launch industry; and
“(8) the United States should not export to the People’s Republic of China missile equipment or technology that would
improve the missile or space launch capabilities of the People’s Republic of China.
“SEC. 1512. CERTIFICATION OF EXPORTS OF MISSILE EQUIPMENT OR TECHNOLOGY TO CHINA.
“(a) Certification.—The President shall certify to the Congress at least 15 days in advance of any export to the People’s
Republic of China of missile equipment or technology (as defined in section 74 of the Arms Export Control Act (22
U.S.C. 2797c)) that—
“(1) such export is not detrimental to the United States space launch industry; and
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“(2) the missile equipment or technology, including any indirect technical benefit that could be derived from such
export, will not measurably improve the missile or space launch capabilities of the People’s Republic of China.
“(b) Exception.—The certification requirement contained in subsection (a) shall not apply to the export of inertial
reference units and components in manned civilian aircraft or supplied as spare or replacement parts for such aircraft.
“SEC. 1513. SATELLITE CONTROLS UNDER THE UNITED STATES MUNITIONS LIST.
“(a) Control of Satellites on the United States Munitions List.—Notwithstanding any other provision of law, all
satellites and related items that are on the Commerce Control List of dual-use items in the Export Administration
Regulations (15 CFR part 730 et seq.) on the date of the enactment of this Act [Oct. 17, 1998] shall be transferred to
the United States Munitions List and controlled under section 38 of the Arms Export Control Act (22 U.S.C. 2778).
“(b) Defense Trade Controls Registration Fees.—[Amended section 2717 of this title.]
“(c) Effective Date.—(1) Subsection (a) shall take effect on March 15, 1999, and shall not apply to any export license
issued before such effective date or to any export license application made under the Export Administration Regulations
before such effective date.
“(2) The amendments made by subsection (b) [amending section 2717 of this title] shall be effective as of October
1, 1998.
“(d) Report.—Not later than January 1, 1999, the Secretary of State, in consultation with the Secretary of Defense and
the Secretary of Commerce, shall submit to Congress a report containing—
“(1) a detailed description of the plans of the Department of State to implement the requirements of this section,
including any organizational changes that are required and any Executive orders or regulations that may be required;
“(2) an identification and explanation of any steps that should be taken to improve the license review process for
exports of the satellites and related items described in subsection (a), including measures to shorten the timelines for
license application reviews, and any measures relating to the transparency of the license review process and dispute
resolution procedures;
“(3) an evaluation of the adequacy of resources available to the Department of State, including fiscal and personnel
resources, to carry out the additional activities required by this section; and
“(4) any recommendations for additional actions, including possible legislation, to improve the export licensing process
under the Arms Export Control Act [22 U.S.C. 2751 et seq.] for the satellites and related items described in subsection
(a).
“SEC. 1514. NATIONAL SECURITY CONTROLS ON SATELLITE EXPORT LICENSING.
“(a) Actions by the President.—Notwithstanding any other provision of law, the President shall take such actions as
are necessary to implement the following requirements for improving national security controls in the export licensing
of satellites and related items:
“(1) Mandatory technology control plans.—All export licenses shall require a technology transfer control plan
approved by the Secretary of Defense and an encryption technology transfer control plan approved by the Director
of the National Security Agency.
“(2) Mandatory monitors and reimbursement.—
“(A) Monitoring of proposed foreign launch of satellites.—In any case in which a license is approved for the export
of a satellite or related items for launch in a foreign country, the Secretary of Defense shall monitor all aspects of
the launch in order to ensure that no unauthorized transfer of technology occurs, including technical assistance and
technical data. The costs of such monitoring services shall be fully reimbursed to the Department of Defense by the
person or entity receiving such services. All reimbursements received under this subparagraph shall be credited to
current appropriations available for the payment of the costs incurred in providing such services.
“(B) Contents of monitoring.—The monitoring under subparagraph (A) shall cover, but not be limited to—
“(i) technical discussions and activities, including the design, development, operation, maintenance, modification, and
repair of satellites, satellite components, missiles, other equipment, launch facilities, and launch vehicles;
“(ii) satellite processing and launch activities, including launch preparation, satellite transportation, integration of the
satellite with the launch vehicle, testing and checkout prior to launch, satellite launch, and return of equipment to the
United States;
“(iii) activities relating to launch failure, delay, or cancellation, including post-launch failure investigations; and
“(iv) all other aspects of the launch.
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“(3) Mandatory licenses for crash-investigations.—In the event of the failure of a launch from a foreign country of
a satellite of United States origin—
“(A) the activities of United States persons or entities in connection with any subsequent investigation of the failure
are subject to the controls established under section 38 of the Arms Export Control Act [22 U.S.C. 2778], including
requirements for licenses issued by the Secretary of State for participation in that investigation;
“(B) officials of the Department of Defense shall monitor all activities associated with the investigation to insure
against unauthorized transfer of technical data or services; and
“(C) the Secretary of Defense shall establish and implement a technology transfer control plan for the conduct of the
investigation to prevent the transfer of information that could be used by the foreign country to improve its missile
or space launch capabilities.
“(4) Mandatory notification and certification.—All technology transfer control plans for satellites or related items shall
require any United States person or entity involved in the export of a satellite of United States origin or related items
to notify the Department of Defense in advance of all meetings and interactions with any foreign person or entity
providing launch services and require the United States person or entity to certify after the launch that it has complied
with this notification requirement.
“(5) Mandatory intelligence community review.—The Secretary of Commerce and the Secretary of State shall provide
to the Secretary of Defense and the Director of Central Intelligence copies of all export license applications and
technical assistance agreements submitted for approval in connection with launches in foreign countries of satellites
to verify the legitimacy of the stated end-user or end-users.
“(6) Mandatory sharing of approved licenses and agreements.—The Secretary of State shall provide copies of all
approved export licenses and technical assistance agreements associated with launches in foreign countries of satellites
to the Secretaries of Defense and Energy, the Director of Central Intelligence, and the Director of the Arms Control
and Disarmament Agency.
“(7) Mandatory notification to congress on licenses.—Upon issuing a license for the export of a satellite or related
items for launch in a foreign country, the head of the department or agency issuing the license shall so notify Congress.
“(8) Mandatory reporting on monitoring activities.—The Secretary of Defense shall provide to Congress an annual
report on the monitoring of all launches in foreign countries of satellites of United States origin.
“(9) Establishing safeguards program.—The Secretary of Defense shall establish a program for recruiting, training,
and maintaining a staff dedicated to monitoring launches in foreign countries of satellites and related items of United
States origin.
“(b) Exception.—This section shall not apply to the export of a satellite or related items for launch in, or by nationals
of, a country that is a member of the North Atlantic Treaty Organization or that is a major non-NATO ally of the
United States.
“(c) Effective Date.—The President shall take the actions required by subsection (a) not later than 45 days after the
date of the enactment of this Act [Oct. 17, 1998].
“SEC. 1515. REPORT ON EXPORT OF SATELLITES FOR LAUNCH BY PEOPLE’S REPUBLIC OF CHINA.
“(a) Requirement for Report.—Each report to Congress submitted pursuant to subsection (b) of section 902 of the
Foreign Relations Authorization Act, Fiscal Years 1990 and 1991 (22 U.S.C. 2151 note ; Public Law 101–246) to
waive the restrictions contained in subsection (a) of that section on the export to the People’s Republic of China of
any satellite of United States origin or related items shall be accompanied by a detailed justification setting forth the
following:
“(1) A detailed description of all militarily sensitive characteristics integrated within, or associated with, the satellite.
“(2) An estimate of the number of United States civilian contract personnel expected to be needed in country to carry
out the proposed satellite launch.
“(3)(A) A detailed description of the United States Government’s plan to monitor the proposed satellite launch to
ensure that no unauthorized transfer of technology occurs, together with an estimate of the number of officers and
employees of the United States that are expected to be needed in country to carry out monitoring of the proposed
satellite launch; and
“(B) the estimated cost to the Department of Defense of monitoring the proposed satellite launch and the amount of
such cost that is to be reimbursed to the department.
“(4) The reasons why the proposed satellite launch is in the national security interest of the United States.
“(5) The impact of the proposed export on employment in the United States, including the number of new jobs created
in the United States, on a State-by-State basis, as a direct result of the proposed export.
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“(6) The number of existing jobs in the United States that would be lost, on a State-by-State basis, as a direct result
of the proposed export not being licensed.
“(7) The impact of the proposed export on the balance of trade between the United States and the People’s Republic
of China and on reducing the current United States trade deficit with the People’s Republic of China.
“(8) The impact of the proposed export on the transition of the People’s Republic of China from a nonmarket economy
to a market economy and the long-term economic benefit to the United States.
“(9) The impact of the proposed export on opening new markets to United States-made products through the purchase
by the People’s Republic of China of United States-made goods and services not directly related to the proposed export.
“(10) The impact of the proposed export on reducing acts, policies, and practices that constitute significant trade
barriers to United States exports or foreign direct investment in the People’s Republic of China by United States
nationals.
“(11) The increase that will result from the proposed export in the overall market share of the United States for goods
and services in comparison to Japan, France, Germany, the United Kingdom, and Russia.
“(12) The impact of the proposed export on the willingness of the People’s Republic of China to modify its commercial
and trade laws, practices, and regulations to make United States-made goods and services more accessible to that
market.
“(13) The impact of the proposed export on the willingness of the People’s Republic of China to reduce formal and
informal trade barriers and tariffs, duties, and other fees on United States-made goods and services entering that
country.
“(b) Militarily Sensitive Characteristics Defined.—In this section, the term ‘militarily sensitive characteristics’
includes antijamming capability, antennas, crosslinks, baseband processing, encryption devices, radiation-hardened
devices, propulsion systems, pointing accuracy, kick motors, and other such characteristics as are specified by the
Secretary of Defense.
“SEC. 1516. RELATED ITEMS DEFINED.
“In this subtitle, the term ‘related items’ means the satellite fuel, ground support equipment, test equipment, payload
adapter or interface hardware, replacement parts, and non-embedded solid propellant orbit transfer engines described
in the report submitted to Congress by the Department of State on February 6, 1998, pursuant to section 38(f) of the
Arms Export Control Act (22 U.S.C. 2778 (f)).”
[Pub. L. 105–277, div. C, title I, § 146(b), Oct. 21, 1998, 112 Stat. 2681–610, provided that: “The amendments made
by this section [amending Pub. L. 105–261, § 1512, set out above] shall take effect on the later of—
[“(1) the enactment of this Act [Oct. 21, 1998]; or
[“(2) the enactment of the Strom Thurmond National Defense Authorization Act for Fiscal Year 1999 [Pub. L.
105–261; Oct. 17, 1998].”]
[Reference to the Director of Central Intelligence or the Director of the Central Intelligence Agency in the Director’s
capacity as the head of the intelligence community deemed to be a reference to the Director of National Intelligence.
Reference to the Director of Central Intelligence or the Director of the Central Intelligence Agency in the Director’s
capacity as the head of the Central Intelligence Agency deemed to be a reference to the Director of the Central
Intelligence Agency. See section 1081(a), (b) of Pub. L. 108–458, set out as a note under section 401 of Title 50, War
and National Defense.]
[For abolition, transfer of functions, and treatment of references to United States Arms Control and Disarmament
Agency, see section 6511 et seq. of this title.]
Delegation of Certifications Under Section 1512 of Public Law 105–261
Determination of President of the United States, No. 2009–31, Sept. 29, 2009, 74 F.R. 50913, provided:
Memorandum for the Secretary of Commerce
By virtue of the authority vested in me as President by the Constitution and the laws of the United States of America,
including section 301 of Title 3, United States Code, I hereby delegate to you the functions of the President under
section 1512 of the National Defense Authorization Act for Fiscal Year 1999 (NDAA).
In the performance of your responsibility under this memorandum, you shall consult, as appropriate, the heads of other
executive departments and agencies.
You are authorized and directed to publish this determination in the Federal Register.
Barack Obama.
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Landmine Export Moratorium
Pub. L. 102–484, div. A, title XIII, § 1365, Oct. 23, 1992, 106 Stat. 2561, as amended by Pub. L. 103–160, div. A,
title XI, § 1182(c)(3), title XIV, § 1423(c), Nov. 30, 1993, 107 Stat. 1772, 1832; Pub. L. 104–107, title V, § 558, Feb.
12, 1996, 110 Stat. 743; Pub. L. 104–208, div. A, title I, § 101(c) [title V, § 556], Sept. 30, 1996, 110 Stat. 3009–121,
3009–161; Pub. L. 106–113, div. B, § 1000(a)(2) [title V, § 553], Nov. 29, 1999, 113 Stat. 1535, 1501A–99; Pub. L.
107–115, title V, § 548, Jan. 10, 2002, 115 Stat. 2156; Pub. L. 110–161, div. J, title VI, § 634(j), Dec. 26, 2007, 121
Stat. 2329, provided that:
“(a) Findings.—The Congress makes the following findings:
“(1) Anti-personnel landmines, which are specifically designed to maim and kill people, have been used
indiscriminately in dramatically increasing numbers, primarily in insurgencies in poor developing countries.
Noncombatant civilians, including tens of thousands of children, have been the primary victims.
“(2) Unlike other military weapons, landmines often remain implanted and undiscovered after conflict has ended,
causing untold suffering to civilian populations. In Afghanistan, Cambodia, Laos, Vietnam, and Angola, tens of
millions of unexploded landmines have rendered whole areas uninhabitable. In Afghanistan, an estimated hundreds of
thousands of people have been maimed and killed by landmines during the 14-year civil war. In Cambodia, more than
20,000 civilians have lost limbs and another 60 are being maimed each month from landmines.
“(3) Over 35 countries are known to manufacture landmines, including the United States. However, the United States
is not a major exporter of landmines. During the past ten years the Department of State has approved ten licenses for
the commercial export of anti-personnel landmines valued at $980,000, and during the past five years the Department
of Defense has approved the sale of 13,156 anti-personnel landmines valued at $841,145.
“(4) The United States signed, but has not ratified, the 1981 Convention on Prohibitions or Restrictions on the Use
of Certain Conventional Weapons Which May Be Deemed To Be Excessively Injurious or To Have Indiscriminate
Effects. The Convention prohibits the indiscriminate use of landmines.
“(5) When it signed the Convention, the United States stated: ‘We believe that the Convention represents a positive
step forward in efforts to minimize injury or damage to the civilian population in time of armed conflict. Our signature
of the Convention reflects the general willingness of the United States to adopt practical and reasonable provisions
concerning the conduct of military operations, for the purpose of protecting noncombatants.’.
“(6) The President should submit the Convention to the Senate for its advice and consent to ratification, and the
President should actively negotiate under United Nations auspices or other auspices an international agreement, or a
modification of the Convention, to prohibit the sale, transfer or export of anti-personnel landmines. Such an agreement
or modification would be an appropriate response to the end of the Cold War and the promotion of arms control
agreements to reduce the indiscriminate killing and maiming of civilians.
“(7) The United States should set an example for other countries in such negotiations, by implementing a one-year
moratorium on the sale, transfer or export of anti-personnel landmines.
“(b) Statement of Policy.—(1) It shall be the policy of the United States to seek verifiable international agreements
prohibiting the sale, transfer, or export, and further limiting the use, production, possession, and deployment of
anti-personnel landmines.
“(2) It is the sense of the Congress that the President should actively seek to negotiate under United Nations auspices
or other auspices an international agreement, or a modification of the Convention, to prohibit the sale, transfer, or
export of anti-personnel landmines.
“(c) Moratorium on Transfers of Anti-Personnel Landmines Abroad.—During the 22 year period beginning on October
23, 1992—
“(1) no sale may be made or financed, no transfer may be made, and no license for export may be issued, under the
Arms Export Control Act [22 U.S.C. 2751 et seq.], with respect to any anti-personnel landmine; and
“(2) no assistance may be provided under the Foreign Assistance Act of 1961 [22 U.S.C. 2151 et seq.], with respect
to the provision of any anti-personnel landmine.
“(d) Definition.—For purposes of this section, the term ‘anti-personnel landmine’ means—
“(1) any munition placed under, on, or near the ground or other surface area, or delivered by artillery, rocket, mortar,
or similar means or dropped from an aircraft and which is designed to be detonated or exploded by the presence,
proximity, or contact of a person;
“(2) any device or material which is designed, constructed, or adapted to kill or injure and which functions unexpectedly
when a person disturbs or approaches an apparently harmless object or performs an apparently safe act;
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“(3) any manually-emplaced munition or device designed to kill, injure, or damage and which is actuated by remote
control or automatically after a lapse of time.”
[Section 634(j) of title VI of div. J of Pub. L. 110–161, which directed the amendment of section 1365(c) of Pub. L.
102–484, set out above, by substituting “During the 22 year period beginning on October 23, 1992” for “During the
16 year period beginning on October 23, 1992” before the period at the end, was executed by making the substitution
in the introductory provisions, to reflect the probable intent of Congress.]
[Section 1000 (a)(2) [title V, § 553] of div. B of Pub. L. 106–113, which directed the amendment of section 1365(c)
of Pub. L. 102–484, set out above, by substituting “During the 11-year” for “During the five-year”, was executed by
making the substitution for “During the eight-year”.]
Arms Transfers Restraint Policy for Middle East and Persian Gulf Region
Pub. L. 102–138, title IV, Oct. 28, 1991, 105 Stat. 718, provided that:
“SEC. 401. FINDINGS.
“The Congress finds that—
“(1) nations in the Middle East and Persian Gulf region, which accounted for over 40 percent of the international
trade in weapons and related equipment and services during the decade of the 1980’s, are the principal market for
the worldwide arms trade;
“(2) regional instability, large financial resources, and the desire of arms-supplying governments to gain influence in
the Middle East and Persian Gulf region, contribute to a regional arms race;
“(3) the continued proliferation of weapons and related equipment and services contribute further to a regional arms
race in the Middle East and Persian Gulf region that is politically, economically, and militarily destabilizing;
“(4) the continued proliferation of unconventional weapons, including nuclear, biological, and chemical weapons, as
well as delivery systems associated with those weapons, poses an urgent threat to security and stability in the Middle
East and Persian Gulf region;
“(5) the continued proliferation of ballistic missile technologies and ballistic missile systems that are capable of
delivering conventional, nuclear, biological, or chemical warheads undermines security and stability in the Middle
East and Persian Gulf region;
“(6) future security and stability in the Middle East and Persian Gulf region would be enhanced by establishing a stable
military balance among regional powers by restraining and reducing both conventional and unconventional weapons;
“(7) security, stability, peace, and prosperity in the Middle East and Persian Gulf region are important to the welfare
of the international economy and to the national security interests of the United States;
“(8) future security and stability in the Middle East and Persian Gulf region would be enhanced through the
development of a multilateral arms transfer and control regime similar to those of the Nuclear Suppliers’ Group, the
Missile Technology Control Regime, and the Australia Chemical Weapons Suppliers Group;
“(9) such a regime should be developed, implemented, and agreed to through multilateral negotiations, including under
the auspices of the 5 permanent members of the United Nations Security Council;
“(10) confidence-building arms control measures such as the establishment of a centralized arms trade registry at the
United Nations, greater multinational transparency on the transfer of defense articles and services prior to agreement or
transfer, cooperative verification measures, advanced notification of military exercises, information exchanges, on-site
inspections, and creation of a Middle East and Persian Gulf Conflict Prevention Center, are important to implement
an effective multilateral arms transfer and control regime;
“(11) as an interim step, the United States should consider introducing, during the ongoing negotiations on confidence
security-building measures at the Conference on Security and Cooperation in Europe (CSCE) [now the Organization
for Security and Cooperation in Europe], a proposal regarding the international exchange of information, on an annual
basis, on the sale and transfer of major military equipment, particularly to the Middle East and Persian Gulf region; and
“(12) such a regime should be applied to other regions with the ultimate objective of achieving an effective global
arms transfer and control regime, implemented and enforced through the United Nations Security Council, that—
“(A) includes a linkage of humanitarian and developmental objectives with security objectives in Third World
countries, particularly the poorest of the poor countries; and
“(B) encourages countries selling military equipment and services to consider the following factors before making
conventional arms sales: the security needs of the purchasing countries, the level of defense expenditures by the
purchasing countries, and the level of indigenous production of the purchasing countries.
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“SEC. 402. MULTILATERAL ARMS TRANSFER AND CONTROL REGIME.
“(a) Implementation of the Regime.—
“(1) Continuing negotiations.—The President shall continue negotiations among the 5 permanent members of the
United Nations Security Council and commit the United States to a multilateral arms transfer and control regime for
the Middle East and Persian Gulf region.
“(2) Proposing a temporary moratorium during negotiations.—In the context of these negotiations, the President should
propose to the 5 permanent members of the United Nations Security Council a temporary moratorium on the sale and
transfer of major military equipment to nations in the Middle East and Persian Gulf region until such time as the 5
permanent members agree to a multilateral arms transfer and control regime.
“(b) Purpose of the Regime.—The purpose of the multilateral arms transfer and control regime should be—
“(1) to slow and limit the proliferation of conventional weapons in the Middle East and Persian Gulf region with the
aim of preventing destabilizing transfers by—
“(A) controlling the transfer of conventional major military equipment;
“(B) achieving transparency among arms suppliers nations through advanced notification of agreement to, or transfer
of, conventional major military equipment; and
“(C) developing and adopting common and comprehensive control guidelines on the sale and transfer of conventional
major military equipment to the region;
“(2) to halt the proliferation of unconventional weapons, including nuclear, biological, and chemical weapons, as
well as delivery systems associated with those weapons and the technologies necessary to produce or assemble such
weapons;
“(3) to limit and halt the proliferation of ballistic missile technologies and ballistic missile systems that are capable of
delivering conventional, nuclear, biological, or chemical warheads;
“(4) to maintain the military balance in the Middle East and Persian Gulf region through reductions of conventional
weapons and the elimination of unconventional weapons; and
“(5) to promote regional arms control in the Middle East and Persian Gulf region.
“(c) Achieving the Purposes of the Regime.—
“(1) Controlling proliferation of conventional weapons.—In order to achieve the purposes described in subsection
(b)(1), the United States should pursue the development of a multilateral arms transfer and control regime which
includes—
“(A) greater information-sharing practices among supplier nations regarding potential arms sales to all nations of the
Middle East and Persian Gulf region;
“(B) applying, for the control of conventional major military equipment, procedures already developed by the
International Atomic Energy Agency, the Multilateral Coordinating Committee on Export Controls (COCOM), and
the Missile Technology Control Regime (MTCR); and
“(C) other strict controls on the proliferation of conventional major military equipment to the Middle East and Persian
Gulf region.
“(2) Halting proliferation of unconventional weapons.—In order to achieve the purposes described in subsections
(b)(2) and (3), the United States should build on existing and future agreements among supplier nations by pursuing
the development of a multilateral arms transfer and control regime which includes—
“(A) limitations and controls contained in the Enhanced Proliferation Control Initiative;
“(B) limitations and controls contained in the Missile Technology Control Regime (MTCR);
“(C) guidelines followed by the Australia Group on chemical and biological arms proliferation;
“(D) guidelines adopted by the Nuclear Suppliers Group (the London Group); and
“(E) other appropriate controls that serve to halt the flow of unconditional [unconventional] weapons to the Middle
East and Persian Gulf region.
“(3) Promotion of regional arms control agreements.—In order to achieve the purposes described in subsections (b)(4)
and (5), the United States should pursue with nations in the Middle East and Persian Gulf region—
“(A) the maintenance of the military balance within the region, while eliminating nuclear, biological, and chemical
weapons and associated delivery systems, and ballistic missiles;
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“(B) the implementation of confidence-building and security-building measures, including advance notification of
certain ground and aerial military exercises in the Middle East and the Persian Gulf; and
“(C) other useful arms control measures.
“(d) Major Military Equipment.—As used in this title, the term ‘major military equipment’ means—
“(1) air-to-air, air-to-surface, and surface-to-surface missiles and rockets;
“(2) turbine-powered military aircraft;
“(3) attack helicopters;
“(4) main battle tanks;
“(5) submarines and major naval surface combatants;
“(6) nuclear, biological, and chemical weapons; and
“(7) such other defense articles and defense services as the President may determine.
“SEC. 403. LIMITATION ON UNITED STATES ARMS SALES TO THE REGION.
“Beginning 60 days after the date of enactment of the International Cooperation Act of 1991 [probably means H.R.
2508, which had not been enacted into law by the end of the first session of the 102d Congress] or the Foreign Relations
Authorization Act, Fiscal Years 1992 and 1993 [Oct. 28, 1991], whichever is enacted first, no sale of any defense
article or defense service may be made to any nation in the Middle East and Persian Gulf region, and no license may
be issued for the export of any defense article or defense service to any nation in the Middle East and Persian Gulf
region, unless the President—
“(1) certifies in writing to the relevant congressional committees that the President has undertaken good faith efforts to
convene a conference for the establishment of an arms suppliers regime having elements described in section 402; and
“(2) submits to the relevant congressional committees a report setting forth a United States plan for leading the world
community in establishing such a multilateral regime to restrict transfers of advanced conventional and unconventional
arms to the Middle East and Persian Gulf region.
“SEC. 404. REPORTS TO THE CONGRESS.
“(a) Quarterly Reports.—Beginning on January 15, 1992, and quarterly thereafter through October 15, 1993, the
President shall submit to the relevant congressional committees a report—
“(1) describing the progress in implementing the purposes of the multilateral arms transfer and control regime as
described in section 402 (b); and
“(2) describing efforts by the United States and progress made to induce other countries to curtail significantly
the volume of their arms sales to the Middle East and Persian Gulf region, and if such efforts were not made, the
justification for not making such efforts.
“(b) Initial Report on Transfers and Regional Military Balance.—Not later than 60 days after the date of enactment of
the International Cooperation Act of 1991 or the Foreign Relations Authorization Act, Fiscal Years 1992 and 1993,
whichever is enacted first, the President shall submit to the relevant congressional committee a report—
“(1) documenting all transfers of conventional and unconventional arms by any nation to the Middle East and Persian
Gulf region over the previous calendar year and the previous 5 calendar years, including sources, types, and recipient
nations of weapons;
“(2) analyzing the current military balance in the region, including the effect on the balance of transfers documented
under paragraph (1);
“(3) describing the progress in implementing the purposes of the multilateral arms transfer and control regime as
described in section 402 (b);
“(4) describing any agreements establishing such a regime; and
“(5) identifying supplier nations that have refused to participate in such a regime or that have engaged in conduct that
violates or undermines such a regime.
“(c) Annual Reports on Transfers and Regional Military Balance.—Beginning July 15, 1992, and every 12 months
thereafter, the President shall submit to the relevant congressional committees a report—
“(1) documenting all transfers of conventional and unconventional arms by any nation to the Middle East and Persian
Gulf region over the previous calendar year, including sources, types, and recipient nations of weapons;
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“(2) analyzing the current military balance in the region, including the effect on the balance of transfer documented
under paragraph (1);
“(3) describing the progress in implementing the purposes of the multilateral arms transfer and control regime as
described in section 402 (b); and
“(4) identifying supplier nations that have refused to participate in such a regime or that have engaged in conduct that
violates or undermines such a regime.
“SEC. 405. RELEVANT CONGRESSIONAL COMMITTEES DEFINED.
“As used in this title, the term ‘relevant congressional committees’ means the Committee on Foreign Affairs of the
House of Representatives and the Committee on Foreign Relations of the Senate.”
[Ex. Ord. No. 12851, § 3, June 11, 1993, 58 F.R. 33181, set out as a note under section 2797 of this title, delegated to
Secretary of State, in consultation with Secretary of Defense and other agencies, certification and reporting functions
of the President under sections 403 and 404 of the Foreign Relations Authorization Act, Fiscal Years 1992 and 1993,
Public Law 102–138, set out above.]
[Memorandum of President of the United States, Dec. 27, 1991, 56 F.R. 1069, delegated to Secretary of State, in
consultation with heads of other executive agencies and departments, certification and reporting obligations of the
President under sections 403 and 404 of the Foreign Relations Authorization Act, Fiscal Years 1992 and 1993, Public
Law 102–138, set out above.]
Continuation of Export Control Regulations
Section 3 of Ex. Ord. No. 13222, Aug. 17, 2001, 66 F.R. 44025, listed in a table under section 1701 of Title 50, War and
National Defense, provided that: “Provisions for administration of section 38(e) of the Arms Export Control Act (22
U.S.C. 2778 (e)) may be made and shall continue in full force and effect until amended or revoked under the authority
of section 203 of the Act (50 U.S.C. 1702). To the extent permitted by law, this order also shall constitute authority for
the issuance and continuation in full force and effect of all rules and regulations by the President or his delegate, and
all orders, licenses, and other forms of administrative actions issued, taken, or continued in effect pursuant thereto,
relating to the administration of section 38 (e).”
Prior provisions relating to issuance and continued effect of rules, regulations, orders, licenses, and other forms of
administrative action relating to administration of subsec. (e) of this section were contained in the following:
Ex. Ord. No. 12924, § 3, Aug. 19, 1994, 59 F.R. 43437, listed in a table under section 1701 of Title 50, prior to
revocation by Ex. Ord. No. 13206, § 1, Apr. 4, 2001, 66 F.R. 18397.
Ex. Ord. No. 12923, § 3, June 30, 1994, 59 F.R. 34551, listed in a table under section 1701 of Title 50, prior to
revocation by Ex. Ord. No. 12924, § 4, Aug. 19, 1994, 59 F.R. 43438.
Ex. Ord. No. 12867, § 3, Sept. 30, 1993, 58 F.R. 51747, listed in a table under section 1701 of Title 50.
Ex. Ord. No. 12730, § 3, Sept. 30, 1990, 55 F.R. 40373, listed in a table under section 1701 of Title 50, prior to
revocation by Ex. Ord. No. 12867, Sept. 30, 1993, 58 F.R. 51747.
Ex. Ord. No. 12525, § 3, July 12, 1985, 50 F.R. 28757, listed in a table under section 1701 of Title 50.
Ex. Ord. No. 12470, § 3, Mar. 30, 1984, 49 F.R. 13099, listed in a table under section 1701 of Title 50, prior to
revocation by Ex. Ord. No. 12525, July 12, 1985, 50 F.R. 28757.
Ex. Ord. No. 12451, § 3, Dec. 20, 1983, 48 F.R. 56563, listed in a table under section 1701 of Title 50.
Ex. Ord. No. 12444, § 3, Oct. 14, 1983, 48 F.R. 48215, listed in a table under section 1701 of Title 50, prior to
revocation by Ex. Ord. No. 12451, Dec. 20, 1983, 48 F.R. 56563.
.....................................
§ 2778a. Exportation of uranium depleted in the isotope 235
Upon a finding that an export of uranium depleted in the isotope 235 is incorporated in defense
articles or commodities solely to take advantage of high density or pyrophoric characteristics
unrelated to its radioactivity, such exports shall be exempt from the provisions of the Atomic
Energy Act of 1954 [42 U.S.C. 2011 et seq.] and of the Nuclear Non-Proliferation Act of 1978
[22 U.S.C. 3201 et seq.] when such exports are subject to the controls established under the Arms
Export Control Act [22 U.S.C. 2751 et seq.] or the Export Administration Act of 1979 [50 App.
U.S.C. 2401 et seq.].
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(Pub. L. 96–533, title I, § 110, Dec. 16, 1980, 94 Stat. 3138.)
References in Text
The Atomic Energy Act of 1954, referred to in text, is act Aug. 1, 1946, ch. 724, as added by act Aug. 30, 1954, ch.
1073, § 1, 68 Stat. 921, and amended, which is classified generally to chapter 23 (§ 2011 et seq.) of Title 42, The Public
Health and Welfare. For complete classification of this Act to the Code, see Short Title note set out under section
2011 of Title 42 and Tables.
The Nuclear Non-Proliferation Act of 1978, referred to in text, is Pub. L. 95–242, Mar. 10, 1978, 92 Stat. 120, as
amended, which is classified principally to chapter 47 (§ 3201 et seq.) of this title. For complete classification of this
Act to the Code, see Short Title note set out under section 3201 of this title and Tables.
The Arms Export Control Act, referred to in text, is Pub. L. 90–629, Oct. 22, 1968, 82 Stat. 1320, as amended, which
is classified principally to this chapter (§ 2751 et seq.). For complete classification of this Act to the Code, see Short
Title note set out under section 2751 of this title and Tables.
The Export Administration Act of 1979, referred to in text, is Pub. L. 96–72, Sept. 29, 1979, 93 Stat. 503, as amended,
which is classified principally to sections 2401 et seq. of Title 50, Appendix, War and National Defense. For complete
classification of this Act to the Code, see Short Title note set out under section 2401 of Title 50, Appendix, and Tables.
Codification
Section was enacted as part of the International Security and Development Cooperation Act of 1980, and not as part
of the Arms Export Control Act which comprises this chapter.
.....................................
§ 2779. Fees of military sales agents
(a) Adequate and timely reports to Secretary of State; maintenance of records
In accordance with such regulations as he may prescribe, the Secretary of State shall require adequate
and timely reporting on political contributions, gifts, commissions and fees paid, or offered or agreed
to be paid, by any person in connection with—
(1) sales of defense articles or defense services under section 2762 of this title, or of design and
construction services under section 2769 of this title;
(2) commercial sales of defense articles or defense services licensed or approved under section
2778 of this title; or
(3) exports of defense articles or defense services pursuant to a treaty referenced in section 2778
(j)(1)(C)(i) of this title;
to or for the armed forces of a foreign country or international organization in order to solicit, promote,
or otherwise to secure the conclusion of such sales. Such regulations shall specify the amounts and the
kinds of payments, offers, and agreements to be reported, and the form and timing of reports, and shall
require reports on the names of sales agents and other persons receiving such payments. The Secretary
of State shall by regulation require such recordkeeping as he determines is necessary.
(b) Presidential regulation
The President may, by regulation, prohibit, limit, or prescribe conditions with respect to such
contributions, gifts, commissions, and fees as he determines will be in furtherance of the purposes of
this chapter.
(c) Allocation to contract; improper influence
No such contribution, gift, commission, or fee may be included, in whole or in part, in the amount paid
under any procurement contract entered into under section 2762 or section 2769 of this title, unless the
amount thereof is reasonable, allocable to such contract, and not made to a person who has solicited,
promoted, or otherwise secured such sale, or has held himself out as being able to do so, through
improper influence. For the purposes of this section, “improper influence” means influence, direct or
indirect, which induces or attempts to induce consideration or action by any employee or officer of a
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purchasing foreign government or international organization with respect to such purchase on any basis
other than such consideration of merit as are involved in comparable United States procurements.
(d) Availability of records to Congress and Federal agencies
(1) All information reported to the Secretary of State and all records maintained by any person
pursuant to regulations prescribed under this section shall be available, upon request, to any
standing committee of the Congress or any subcommittee thereof and to any agency of the United
States Government authorized by law to have access to the books and records of the person required
to submit reports or to maintain records under this section.
(2) Access by an agency of the United States Government to records maintained under this section
shall be on the same terms and conditions which govern the access by such agency to the books
and records of the person concerned.
(Pub. L. 90–629, ch. 3, § 39, as added Pub. L. 94–329, title VI, § 604(b), June 30, 1976, 90 Stat. 767;
amended Pub. L. 96–533, title I, § 105(e)(2), Dec. 16, 1980, 94 Stat. 3135; Pub. L. 111–266, title I, §
104(e), Oct. 8, 2010, 124 Stat. 2800.)
References in Text
This chapter, referred to in subsec. (b), was in the original “this Act”, meaning Pub. L. 90–629, Oct. 22, 1968, 82 Stat.
1321, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title
note set out under section 2751 of this title and Tables.
Amendments
2010—Subsec. (a)(3). Pub. L. 111–266, which directed amendment of subsec. (a) by adding par. (3) at the end, was
executed by adding par. (3) after par. (2) to reflect the probable intent of Congress.
1980—Subsec. (a)(1). Pub. L. 96–533, § 105(e)(2)(A), inserted reference to sales of design and construction services
under section 2769 of this title.
Subsec. (c). Pub. L. 96–533, § 105(e)(2)(B), inserted reference to section 2769 of this title.
Effective Date
Section effective 60 days after June 30, 1976, see section 604(c) of Pub. L. 94–329, set out as note under section
2776 of this title.
Delegation of Functions
Functions of President under subsec. (b) of this section delegated to Secretary of State, with Secretary of State required
to consult with Secretary of Defense to avoid interference in application of Department of Defense regulations to sales
made under section 2762 of this title, by section 1(m) of Ex. Ord. No. 11958, Jan. 18, 1977, 42 F.R. 4311, as amended,
set out as a note under section 2751 of this title.
.....................................
§ 2779a. Prohibition on incentive payments
(a) In general
No United States supplier of defense articles or services sold or licensed under this chapter or exported
pursuant to a treaty referred to in section 2778 (j)(1)(C)(i) of this title, nor any employee, agent, or
subcontractor thereof, shall, with respect to the sale or export of any such defense article or defense
service to a foreign country, make any incentive payments for the purpose of satisfying, in whole or
in part, any offset agreement with that country.
(b) Civil penalties
Any person who violates the provisions of this section shall be subject to the imposition of civil penalties
as provided for in this section.
(c) Presidential authority
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In the enforcement of this section, the President is authorized to exercise the same powers concerning
violations and enforcement and imposition of civil penalties which are conferred upon departments,
agencies and officials by subsections (c), (d), (e), and (f) of section 11 of the Export Administration
Act of 1979 [50 App. U.S.C. 2410 (c), (d), (e), (f)], and section 12(a) of such Act [50 App. U.S.C.
2411 (a)], subject to the same terms and conditions as are applicable to such powers under that Act
[50 App. U.S.C. 2401 et seq.], except that section 11(c)(2)(B) of such Act shall not apply, and instead,
as prescribed in regulations issued under this section, the Secretary of State may assess civil penalties
for violations of this chapter and regulations prescribed thereunder and further may commence a civil
action to recover such civil penalties, and except further that notwithstanding section 11(c) of that Act,
the civil penalty for each violation of this section may not exceed $500,000 or five times the amount
of the prohibited incentive payment, whichever is greater.
(d) Definitions
For purposes of this section—
(1) the term “offset agreement” means an agreement, arrangement, or understanding between a
United States supplier of defense articles or defense services and a foreign country under which the
supplier agrees to purchase or acquire, or to promote the purchase or acquisition by other United
States persons of, goods or services produced, manufactured, grown, or extracted, in whole or in
part, in that foreign country in consideration for the purchase by the foreign country of defense
articles or defense services from the supplier;
(2) the term “incentive payments” means direct monetary compensation made by a United States
supplier of defense articles or defense services or by any employee, agent or subcontractor thereof
to any other United States person to induce or persuade that United States person to purchase or
acquire goods or services produced, manufactured, grown, or extracted, in whole or in part, in
the foreign country which is purchasing those defense articles or services from the United States
supplier; and
(3) the term “United States person” means—
(A) an individual who is a national or permanent resident alien of the United States; and
(B) any corporation, business association, partnership, trust, or other juridical entity—
(i) organized under the laws of the United States or any State, the District of Columbia,
or any territory or possession of the United States; or
(ii) owned or controlled in fact by individuals described in subparagraph (A) or by an
entity described in clause (i).
(Pub. L. 90–629, ch. 3, § 39A, as added Pub. L. 103–236, title VII, § 733, Apr. 30, 1994, 108 Stat. 504;
amended Pub. L. 106–113, div. B, § 1000(a)(7) [div. B, title XII, § 1246, title XIII, § 1303], Nov. 29,
1999, 113 Stat. 1536, 1501A–502, 1501A–511; Pub. L. 111–266, title I, § 103(d), Oct. 8, 2010, 124 Stat.
2799.)
References in Text
This chapter, referred to in subsecs. (a) and (c), was in the original “this Act”, meaning Pub. L. 90–629, Oct. 22, 1968,
82 Stat. 1321, which is classified principally to this chapter. For complete classification of this Act to the Code, see
Short Title note set out under section 2751 of this title and Tables.
The Export Administration Act of 1979, referred to in subsec. (c), is Pub. L. 96–72, Sept. 29, 1979, 93 Stat. 503, as
amended, which is classified principally to section 2401 et seq. of Title 50, Appendix, War and National Defense. For
complete classification of this Act to the Code, see Short Title note set out under section 2401 of Title 50, Appendix,
and Tables.
Amendments
2010—Subsec. (a). Pub. L. 111–266 inserted “or exported pursuant to a treaty referred to in section 2778 (j)(1)(C)(i)
of this title” after “under this chapter”.
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1999—Subsec. (a). Pub. L. 106–113, § 1000(a)(7) [title XII, § 1246(a)], inserted “or licensed” after “sold” and “or
export” after “sale”.
Subsec. (c). Pub. L. 106–113, § 1000(a)(7) [title XIII, § 1303], inserted “section 11(c)(2)(B) of such Act shall not apply,
and instead, as prescribed in regulations issued under this section, the Secretary of State may assess civil penalties for
violations of this chapter and regulations prescribed thereunder and further may commence a civil action to recover
such civil penalties, and except further that” after “except that”.
Subsec. (d)(3)(B)(ii). Pub. L. 106–113, § 1000(a)(7) [title XII, § 1246(b)], inserted “or by an entity described in clause
(i)” after “subparagraph (A)”.
Delegation of Functions
Functions of President under this section delegated to Secretary of State by Memorandum of President of the United
States, July 26, 1994, 59 F.R. 40205, set out as a note under section 2370a of this title.
.....................................
§ 2780. Transactions with countries supporting acts of international terrorism
(a) Prohibited transactions by United States Government
The following transactions by the United States Government are prohibited:
(1) Exporting or otherwise providing (by sale, lease or loan, grant, or other means), directly or
indirectly, any munitions item to a country described in subsection (d) of this section under the
authority of this chapter, the Foreign Assistance Act of 1961 [22 U.S.C. 2151 et seq.], or any other
law (except as provided in subsection (h) of this section). In implementing this paragraph, the
United States Government—
(A) shall suspend delivery to such country of any such item pursuant to any such transaction
which has not been completed at the time the Secretary of State makes the determination
described in subsection (d) of this section, and
(B) shall terminate any lease or loan to such country of any such item which is in effect at
the time the Secretary of State makes that determination.
(2) Providing credits, guarantees, or other financial assistance under the authority of this chapter,
the Foreign Assistance Act of 1961 [22 U.S.C. 2151 et seq.], or any other law (except as provided
in subsection (h) of this section), with respect to the acquisition of any munitions item by a
country described in subsection (d) of this section. In implementing this paragraph, the United
States Government shall suspend expenditures pursuant to any such assistance obligated before
the Secretary of State makes the determination described in subsection (d) of this section. The
President may authorize expenditures otherwise required to be suspended pursuant to the preceding
sentence if the President has determined, and reported to the Congress, that suspension of those
expenditures causes undue financial hardship to a supplier, shipper, or similar person and allowing
the expenditure will not result in any munitions item being made available for use by such country.
(3) Consenting under section 2753 (a) of this title, under section 505(a) of the Foreign Assistance
Act of 1961 [22 U.S.C. 2314 (a)], under the regulations issued to carry out section 2778 of this
title, or under any other law (except as provided in subsection (h) of this section), to any transfer
of any munitions item to a country described in subsection (d) of this section. In implementing this
paragraph, the United States Government shall withdraw any such consent which is in effect at
the time the Secretary of State makes the determination described in subsection (d) of this section,
except that this sentence does not apply with respect to any item that has already been transferred
to such country.
(4) Providing any license or other approval under section 2778 of this title for any export or
other transfer (including by means of a technical assistance agreement, manufacturing licensing
agreement, or coproduction agreement) of any munitions item to a country described in subsection
(d) of this section. In implementing this paragraph, the United States Government shall suspend
any such license or other approval which is in effect at the time the Secretary of State makes the
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determination described in subsection (d) of this section, except that this sentence does not apply
with respect to any item that has already been exported or otherwise transferred to such country.
(5) Otherwise facilitating the acquisition of any munitions item by a country described in
subsection (d) of this section. This paragraph applies with respect to activities undertaken—
(A) by any department, agency, or other instrumentality of the Government,
(B) by any officer or employee of the Government (including members of the United States
Armed Forces), or
(C) by any other person at the request or on behalf of the Government.
The Secretary of State may waive the requirements of the second sentence of paragraph (1),
the second sentence of paragraph (3), and the second sentence of paragraph (4) to the extent
that the Secretary determines, after consultation with the Congress, that unusual and compelling
circumstances require that the United States Government not take the actions specified in that
sentence.
(b) Prohibited transactions by United States persons
(1) In general
A United States person may not take any of the following actions:
(A) Exporting any munitions item to any country described in subsection (d) of this section.
(B) Selling, leasing, loaning, granting, or otherwise providing any munitions item to any
country described in subsection (d) of this section.
(C) Selling, leasing, loaning, granting, or otherwise providing any munitions item to any
recipient which is not the government of or a person in a country described in subsection (d)
of this section if the United States person has reason to know that the munitions item will be
made available to any country described in subsection (d) of this section.
(D) Taking any other action which would facilitate the acquisition, directly or indirectly,
of any munitions item by the government of any country described in subsection (d) of this
section, or any person acting on behalf of that government, if the United States person has
reason to know that that action will facilitate the acquisition of that item by such a government
or person.
(2) Liability for actions of foreign subsidiaries, etc.
A United States person violates this subsection if a corporation or other person that is controlled
in fact by that United States person (as determined under regulations, which the President shall
issue) takes an action described in paragraph (1) outside the United States.
(3) Applicability to actions outside the United States
Paragraph (1) applies with respect to actions described in that paragraph which are taken either
within or outside the United States by a United States person described in subsection (l)(3)(A) or
(B) of this section. To the extent provided in regulations issued under subsection (l)(3)(D) of this
section, paragraph (1) applies with respect to actions described in that paragraph which are taken
outside the United States by a person designated as a United States person in those regulations.
(c) Transfers to governments and persons covered
This section applies with respect to—
(1) the acquisition of munitions items by the government of a country described in subsection (d)
of this section; and
(2) the acquisition of munitions items by any individual, group, or other person within a country
described in subsection (d) of this section, except to the extent that subparagraph (D) of subsection
(b)(1) of this section provides otherwise.
(d) Countries covered by prohibition
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The prohibitions contained in this section apply with respect to a country if the Secretary of
State determines that the government of that country has repeatedly provided support for acts of
international terrorism. For purposes of this subsection, such acts shall include all activities that the
Secretary determines willfully aid or abet the international proliferation of nuclear explosive devices to
individuals or groups, willfully aid or abet an individual or groups in acquiring unsafeguarded special
nuclear material, or willfully aid or abet the efforts of an individual or group to use, develop, produce,
stockpile, or otherwise acquire chemical, biological, or radiological weapons.
(e) Publication of determinations
Each determination of the Secretary of State under subsection (d) of this section shall be published in
the Federal Register.
(f) Rescission
(1) A determination made by the Secretary of State under subsection (d) of this section may not
be rescinded unless the President submits to the Speaker of the House of Representatives and the
chairman of the Committee on Foreign Relations of the Senate—
(A) before the proposed rescission would take effect, a report certifying that—
(i) there has been a fundamental change in the leadership and policies of the government
of the country concerned;
(ii) that government is not supporting acts of international terrorism; and
(iii) that government has provided assurances that it will not support acts of international
terrorism in the future; or
(B) at least 45 days before the proposed rescission would take effect, a report justifying the
rescission and certifying that—
(i) the government concerned has not provided any support for international terrorism
during the preceding 6-month period; and
(ii) the government concerned has provided assurances that it will not support acts of
international terrorism in the future.
(2) (A) No rescission under paragraph (1)(B) of a determination under subsection (d) of this
section may be made if the Congress, within 45 days after receipt of a report under paragraph
(1)(B), enacts a joint resolution the matter after the resolving clause of which is as follows:
“That the proposed rescission of the determination under section 40(d) of the Arms Export
Control Act pursuant to the report submitted to the Congress on XXXXXXXXX is hereby
prohibited.”, the blank to be completed with the appropriate date.
(B) A joint resolution described in subparagraph (A) and introduced within the appropriate
45-day period shall be considered in the Senate and the House of Representatives in
accordance with paragraphs (3) through (7) of section 8066(c) of the Department of Defense
Appropriations Act (as contained in Public Law 98–473), except that references in such
paragraphs to the Committees on Appropriations of the House of Representatives and the
Senate shall be deemed to be references to the Committee on Foreign Affairs of the House of
Representatives and the Committee on Foreign Relations of the Senate, respectively.
(g) Waiver
The President may waive the prohibitions contained in this section with respect to a specific transaction
if—
(1) the President determines that the transaction is essential to the national security interests of
the United States; and
(2) not less than 15 days prior to the proposed transaction, the President—
(A) consults with the Committee on Foreign Affairs of the House of Representatives and the
Committee on Foreign Relations of the Senate; and
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(B) submits to the Speaker of the House of Representatives and the chairman of the
Committee on Foreign Relations of the Senate a report containing—
(i) the name of any country involved in the proposed transaction, the identity of any
recipient of the items to be provided pursuant to the proposed transaction, and the
anticipated use of those items;
(ii) a description of the munitions items involved in the proposed transaction (including
their market value) and the actual sale price at each step in the transaction (or if the items
are transferred by other than sale, the manner in which they will be provided);
(iii) the reasons why the proposed transaction is essential to the national security interests
of the United States and the justification for such proposed transaction;
(iv) the date on which the proposed transaction is expected to occur; and
(v) the name of every United States Government department, agency, or other entity
involved in the proposed transaction, every foreign government involved in the proposed
transaction, and every private party with significant participation in the proposed
transaction.
To the extent possible, the information specified in subparagraph (B) of paragraph (2) shall
be provided in unclassified form, with any classified information provided in an addendum
to the report.
(h) Exemption for transactions subject to National Security Act reporting requirements
The prohibitions contained in this section do not apply with respect to any transaction subject to
reporting requirements under title V of the National Security Act of 1947 (50 U.S.C. 413 et seq.; relating
to congressional oversight of intelligence activities).
(i) Relation to other laws
(1) In general
With regard to munitions items controlled pursuant to this chapter, the provisions of this section
shall apply notwithstanding any other provision of law, other than section 614(a) of the Foreign
Assistance Act of 1961 (22 U.S.C. 2364 (a)).
(2) Section 614 (a) waiver authority
If the authority of section 614(a) of the Foreign Assistance Act of 1961 [22 U.S.C. 2364 (a)] is used
to permit a transaction under that Act [22 U.S.C. 2151 et seq.] or this chapter which is otherwise
prohibited by this section, the written policy justification required by that section shall include the
information specified in subsection (g)(2)(B) of this section.
(j) Criminal penalty
Any person who willfully violates this section shall be fined for each violation not more than
$1,000,000, imprisoned not more than 20 years, or both.
(k) Civil penalties; enforcement
In the enforcement of this section, the President is authorized to exercise the same powers concerning
violations and enforcement which are conferred upon departments, agencies, and officials by sections
11(c), 11(e), 11(g), and 12(a) of the Export Administration Act of 1979 [50 App. U.S.C. 2410 (c), (e),
(g), 2411 (a)] (subject to the same terms and conditions as are applicable to such powers under that Act
[50 App. U.S.C. 2401 et seq.]), except that section 11(c)(2)(B) of such Act shall not apply, and instead,
as prescribed in regulations issued under this section, the Secretary of State may assess civil penalties
for violations of this chapter and regulations prescribed thereunder and further may commence a civil
action to recover such civil penalties, and except further that, notwithstanding section 11(c) of that Act,
the civil penalty for each violation of this section may not exceed $500,000.
(l) Definitions
As used in this section—
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NB: This unofficial compilation of the U.S. Code is current as of Jan. 4, 2012 (see http://www.law.cornell.edu/uscode/uscprint.html).
(1) the term “munitions item” means any item enumerated on the United States Munitions list 1
(without regard to whether the item is imported into or exported from the United States);
(2) the term “United States”, when used geographically, means the several States, the District
of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana
Islands, and any territory or possession of the United States;
(3) the term “United States person” means—
(A) any citizen or permanent resident alien of the United States;
(B) any sole proprietorship, partnership, company, association, or corporation having its
principal place of business within the United States or organized under the laws of the
United States, any State, the District of Columbia, the Commonwealth of Puerto Rico, the
Commonwealth of the Northern Mariana Islands, or any territory or possession of the United
States;
(C) any other person with respect to that person’s actions while in the United States; and
(D) to the extent provided in regulations issued by the Secretary of State, any person that is
not described in subparagraph (A), (B), or (C) but—
(i) is a foreign subsidiary or affiliate of a United States person described in subparagraph
(B) and is controlled in fact by that United States person (as determined in accordance
with those regulations), or
(ii) is otherwise subject to the jurisdiction of the United States,
with respect to that person’s actions while outside the United States;
(4) the term “nuclear explosive device” has the meaning given that term in section 6305 (4) of
this title; and
(5) the term “unsafeguarded special nuclear material” has the meaning given that term in section
6305 (8) of this title.
Footnotes
1 So in original. Probably should be capitalized.
(Pub. L. 90–629, ch. 3, § 40, as added Pub. L. 99–399, title V, § 509(a), Aug. 27, 1986, 100 Stat. 874;
amended Pub. L. 101–222, § 2(a), Dec. 12, 1989, 103 Stat. 1892; Pub. L. 102–138, title III, § 321, Oct.
28, 1991, 105 Stat. 710; Pub. L. 103–236, title VIII, § 822(a)(2), Apr. 30, 1994, 108 Stat. 511; Pub. L.
106–113, div. B, § 1000(a)(7) [div. B, title XIII, § 1303], Nov. 29, 1999, 113 Stat. 1536, 1501A–511;
Pub. L. 107–228, div. B, title XII, § 1204, Sept. 30, 2002, 116 Stat. 1427; Pub. L. 111–195, title I, §
107(a)(3), July 1, 2010, 124 Stat. 1337.)
References in Text
This chapter, referred to in subsecs. (a)(1), (2), (i)(1), and (k), was in the original “this Act”, and this chapter, referred
to in subsec. (i)(2), was in the original “the Arms Export Control Act”, both of which mean Pub. L. 90–629, Oct. 22,
1968, 82 Stat. 1321, as amended, which is classified principally to this chapter. For complete classification of this Act
to the Code, see Short Title note set out under section 2751 of this title and Tables.
The Foreign Assistance Act of 1961, referred to in subsecs. (a)(1), (2) and (i)(2), is Pub. L. 87–195, Sept. 4, 1961,
75 Stat. 424, as amended, which is classified principally to chapter 32 (§ 2151 et seq.) of this title. For complete
classification of this Act to the Code, see Short Title note set out under section 2151 of this title and Tables.
Section 40(d) of the Arms Export Control Act, referred to in subsec. (f)(2)(A), is classified to subsec. (d) of this section.
Paragraphs (3) through (7) of section 8066(c) of the Department of Defense Appropriations Act (as contained in Public
Law 98–473), referred to in subsec. (f)(2)(B), is Pub. L. 98–473, title I, § 101(h) [title VIII, § 8066(c)(3)–(7)], Oct. 12,
1984, 98 Stat. 1904, 1936, 1937, which is not classified to the Code.
The National Security Act of 1947, referred to in subsec. (h), is act July 26, 1947, ch. 343, 61 Stat. 495, as amended.
Title V of the National Security Act of 1947 is classified generally to subchapter III (§ 413 et seq.) of chapter 15 of
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NB: This unofficial compilation of the U.S. Code is current as of Jan. 4, 2012 (see http://www.law.cornell.edu/uscode/uscprint.html).
Title 50, War and National Defense. For complete classification of this Act to the Code, see Short Title note set out
under section 401 of Title 50.
The Export Administration Act of 1979, referred to in subsec. (k), is Pub. L. 96–72, Sept. 29, 1979, 93 Stat. 503, as
amended, which is classified principally to section 2401 et seq. of the Appendix to Title 50. For complete classification
of this Act to the Code, see Short Title note set out under section 2401 of the Appendix to Title 50 and Tables.
Amendments
2010—Subsec. (j). Pub. L. 111–195 substituted “20 years” for “10 years”.
2002—Subsec. (d). Pub. L. 107–228 substituted “groups,” for “groups or” in second sentence and inserted before
period at end “, or willfully aid or abet the efforts of an individual or group to use, develop, produce, stockpile, or
otherwise acquire chemical, biological, or radiological weapons”.
1999—Subsec. (k). Pub. L. 106–113 inserted “section 11(c)(2)(B) of such Act shall not apply, and instead, as
prescribed in regulations issued under this section, the Secretary of State may assess civil penalties for violations of this
chapter and regulations prescribed thereunder and further may commence a civil action to recover such civil penalties,
and except further that” after “except that”.
1994—Subsec. (d). Pub. L. 103–236, § 822(a)(2)(A), inserted at end “For purposes of this subsection, such acts
shall include all activities that the Secretary determines willfully aid or abet the international proliferation of nuclear
explosive devices to individuals or groups or willfully aid or abet an individual or groups in acquiring unsafeguarded
special nuclear material.”
Subsec. (l). Pub. L. 103–236, § 822(a)(2)(B), amended subsec. (l) by striking “and” after the semicolon in par. (2),
substituting a semicolon for the period at the end of par. (3), and adding pars. (4) and (5).
1991—Subsec. (f). Pub. L. 102–138, § 321, designated existing provisions as par. (1), redesignated former par. (1) as
subpar. (A) and former subpars. (A) to (C) as cls. (i) to (iii), respectively, redesignated former par. (2) as subpar. (B)
and former subpars. (A) and (B) as cls. (i) and (ii), respectively, and added par. (2). So much of Pub. L. 102–138, §
321(1), as directed that subpar. (C) of former par. (2) be redesignated cl. (iii) of par. (1)(B), could not be executed
because no such subpar. (C) had been enacted.
1989—Pub. L. 101–222 substituted “Transactions with” for “Exports to” in section catchline and amended text
generally. Prior to amendment, text read as follows:
“(a) Prohibition.—Except as provided in subsection (b) of this section, items on the United States Munitions List may
not be exported to any country which the Secretary of State has determined, for purposes of section 6(j)(1)(A) of
the Export Administration Act of 1979 (50 App. U.S.C. 2405 (j)(1)(A)), has repeatedly provided support for acts of
international terrorism.
“(b) Waiver.—The President may waive the prohibition contained in subsection (a) of this section in the case of a
particular export if the President determines that the export is important to the national interests of the United States
and submits to the Congress a report justifying that determination and describing the proposed export. Any such waiver
shall expire at the end of 90 days after it is granted unless the Congress enacts a law extending the waiver.”
Effective Date of 1994 Amendment
Amendment by Pub. L. 103–236 effective 60 days after Apr. 30, 1994, see section 831 of Pub. L. 103–236, set out
as an Effective Date note under section 6301 of this title.
.....................................
§ 2781. Transactions with countries not fully cooperating with United States antiterrorism
efforts
(a) Prohibited transactions
No defense article or defense service may be sold or licensed for export under this chapter in a fiscal year
to a foreign country that the President determines and certifies to Congress, by May 15 of the calendar
year in which that fiscal year begins, is not cooperating fully with United States antiterrorism efforts.
(b) Waiver
The President may waive the prohibition set forth in subsection (a) of this section with respect to a
specific transaction if the President determines that the transaction is important to the national interests
of the United States.
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MONITORING OF DEFENSE ARTICLES AND DEF...
NB: This unofficial compilation of the U.S. Code is current as of Jan. 4, 2012 (see http://www.law.cornell.edu/uscode/uscprint.html).
(Pub. L. 90–629, ch. 3, § 40A, as added Pub. L. 104–132, title III, § 330, Apr. 24, 1996, 110 Stat. 1258.)
References in Text
This chapter, referred to in subsec. (a), was in the original “this Act”, meaning Pub. L. 90–629, Oct. 22, 1968, 82 Stat.
1321, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title
note set out under section 2751 of this title and Tables.
Codification
Another section 40A of Pub. L. 90–629 is classified to section 2785 of this title.
Delegation of Functions
Functions of President under this section delegated to Secretary of State by section 1(o) of Ex. Ord. No. 11958, Jan.
18, 1977, 42 F.R. 4311, as amended, set out as a note under section 2751 of this title.
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SUBCHAPTER III–A—END-USE MONITORING OF DEFENSE ARTICLES AND
DEFENSE SERVICES
.....................................
§ 2785. End-use monitoring of defense articles and defense services
(a) Establishment of monitoring program
(1) In general
In order to improve accountability with respect to defense articles and defense services sold, leased,
or exported under this chapter or the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.),
the President shall establish a program which provides for the end-use monitoring of such articles
and services.
(2) Requirements of program
To the extent practicable, such program—
(A) shall provide for the end-use monitoring of defense articles and defense services in
accordance with the standards that apply for identifying high-risk exports for regular end-use
verification developed under section 2778 (g)(7) of this title (commonly referred to as the
“Blue Lantern” program); and
(B) shall be designed to provide reasonable assurance that—
(i) the recipient is complying with the requirements imposed by the United States
Government with respect to use, transfers, and security of defense articles and defense
services; and
(ii) such articles and services are being used for the purposes for which they are provided.
(b) Conduct of program
In carrying out the program established under subsection (a) of this section, the President shall ensure
that the program—
(1) provides for the end-use verification of defense articles and defense services that incorporate
sensitive technology, defense articles and defense services that are particularly vulnerable to
diversion or other misuse, or defense articles or defense services whose diversion or other misuse
could have significant consequences; and
(2) prevents the diversion (through reverse engineering or other means) of technology
incorporated in defense articles.
(c) Report to Congress
Not later than 6 months after July 21, 1996, and annually thereafter as a part of the annual congressional
presentation documents submitted under section 634 of the Foreign Assistance Act of 1961 [22 U.S.C.
2394], the President shall transmit to the Congress a report describing the actions taken to implement
this section, including a detailed accounting of the costs and number of personnel associated with
the monitoring program and the numbers, range, and findings of end-use monitoring of United States
transfers of small arms and light weapons.
(d) Third country transfers
For purposes of this section, defense articles and defense services sold, leased, or exported under this
chapter or the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.) includes defense articles and
defense services that are transferred to a third country or other third party.
(Pub. L. 90–629, ch. 3A, § 40A, as added Pub. L. 104–164, title I, § 150(a), July 21, 1996, 110 Stat. 1436;
amended Pub. L. 107–228, div. B, title XII, § 1205(b), Sept. 30, 2002, 116 Stat. 1428.)
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ADMINISTRATIVE, AND MISCELLANEOUS PROVIS...
NB: This unofficial compilation of the U.S. Code is current as of Jan. 4, 2012 (see http://www.law.cornell.edu/uscode/uscprint.html).
References in Text
This chapter, referred to in subsecs. (a)(1) and (d), was in the original “this Act”, meaning Pub. L. 90–629, Oct. 22,
1968, 82 Stat. 1321, which is classified principally to this chapter. For complete classification of this Act to the Code,
see Short Title note set out under section 2751 of this title and Tables.
The Foreign Assistance Act of 1961, referred to in subsecs. (a)(1) and (d), is Pub. L. 87–195, Sept. 4, 1961, 75 Stat.
424, as amended, which is classified principally to chapter 32 (§ 2151 et seq.) of this title. For complete classification
of this Act to the Code, see Short Title note set out under section 2151 of this title and Tables.
Codification
Another section 40A of Pub. L. 90–629 is classified to section 2781 of this title.
Amendments
2002—Subsec. (c). Pub. L. 107–228 inserted “and the numbers, range, and findings of end-use monitoring of United
States transfers of small arms and light weapons” before period at end.
Effective Date
Section 150(b) of Pub. L. 104–164 provided that: “Section 40A of the Arms Export Control Act, as added by subsection
(a) [22 U.S.C. 2785], applies with respect to defense articles and defense services provided before or after the date
of the enactment of this Act [July 21, 1996].”
Delegation of Functions
Functions of President under this section delegated to Secretary of State insofar as they relate to commercial exports
licensed under this chapter, and to Secretary of Defense insofar as they relate to defense articles and defense services
sold, leased, or transferred under the Foreign Military Sales Program, by section 1(n) of Ex. Ord. No. 11958, Jan. 18,
1977, 42 F.R. 4311, as amended, set out as a note under section 2751 of this title.
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SUBCHAPTER IV—GENERAL, ADMINISTRATIVE, AND MISCELLANEOUS
PROVISIONS
.....................................
§ 2791. General provisions
(a) Considerations in procurement outside United States
In carrying out this chapter, special emphasis shall be placed on procurement in the United States,
but, subject to the provisions of subsection (b) of this section, consideration shall also be given to
coproduction or licensed production outside the United States of defense articles of United States origin
when such production best serves the foreign policy, national security, and economy of the United
States. In evaluating any sale proposed to be made pursuant to this chapter, there shall be taken into
consideration
(A) the extent to which the proposed sale damages or infringes upon licensing arrangements
whereby United States entities have granted licenses for the manufacture of the defense articles
selected by the purchasing country to entities located in friendly foreign countries, which
licenses result in financial returns to the United States,
(B) the portion of the defense articles so manufactured which is of United States origin, and
(C) whether, and the extent to which, such sale might contribute to an arms race, aid in
the development of weapons of mass destruction, support international terrorism, increase the
possibility of outbreak or escalation of conflict, or prejudice the development of bilateral or
multilateral arms control or nonproliferation agreements or other arrangements.
(b) Information to Congress on credit sales and guaranties
No credit sale shall be extended under section 2763 of this title, and no guarantee shall be issued under
section 2764 of this title, in any case involving coproduction or licensed, production outside the United
States of any defense article of United States origin unless the Secretary of State shall, in advance of
any such transaction, advise the appropriate committees of the Congress and furnish the Speaker of the
House of Representatives and the President of the Senate with full information regarding the proposed
transaction, including, but not limited to, a description of the particular defense article or articles which
would be produced under a license or coproduced outside the United States, the estimated value of such
production or coproduction, and the probable impact of the proposed transaction on employment and
production within the United States.
(c) Availability of funds for procurement outside United States
Funds made available under this chapter may be used for procurement outside the United States only if
the President determines that such procurement will not result in adverse effects upon the economy of
the United States or the industrial mobilization base, with special reference to any areas of labor surplus
or to the net position of the United States in its balance of payments with the rest of the world, which
outweigh the economic or other advantages to the United States of less costly procurement outside the
United States.
(d) Responsibility of Secretary of Defense with respect to sales and guaranties
(1) With respect to sales and guaranties under sections 2761, 2762, 2763, 2764, 2769 and 2770
of this title, the Secretary of Defense shall, under the direction of the President, have primary
responsibility for—
(A) the determination of military end-item requirements;
(B) the procurement of military equipment in a manner which permits its integration with
service programs;
(C) the supervision of the training of foreign military personnel;
(D) the movement and delivery of military end-items; and
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(E) within the Department of Defense, the performance of any other functions with respect
to sales and guaranties.
(2) The establishment of priorities in the procurement, delivery, and allocation of military
equipment shall, under the direction of the President, be determined by the Secretary of Defense.
(e) Revocation and suspension provisions of contracts for sale and export licenses;
appropriations for refunds
(1) Each contract for sale entered into under sections 2761, 2762, 2769 and 2770 of this title, and
each contract entered into under section 2767 (d) of this title, shall provide that such contract may
be canceled in whole or in part, or its execution suspended, by the United States at any time under
unusual or compelling circumstances if the national interest so requires.
(2) (A) Each export license issued under section 2778 of this title shall provide that such license
may be revoked, suspended, or amended by the Secretary of State, without prior notice,
whenever the Secretary deems such action to be advisable.
(B) Nothing in this paragraph may be construed as limiting the regulatory authority of the
President under this chapter.
(3) There are authorized to be appropriated from time to time such sums as may be necessary
(A) to refund moneys received from purchasers under contracts of sale entered into under
sections 2761, 2762, 2769 and 2770 of this title, or under contracts entered into under section
2767 (d) of this title, that are canceled or suspended under this subsection to the extent such
moneys have previously been disbursed to private contractors and United States Government
agencies for work in progress, and
(B) to pay such damages and costs that accrue from the corresponding cancellation or
suspension of the existing procurement contracts or United States Government agency work
orders involved.
(f) Use of civilian contract personnel in foreign countries
The President shall, to the maximum extent possible and consistent with the purposes of this chapter, use
civilian contract personnel in any foreign country to perform defense services sold under this chapter.
(Pub. L. 90–629, ch. 4, § 42, Oct. 22, 1968, 82 Stat. 1326; Pub. L. 92–226, pt. IV, § 401(e), (f), Feb. 7,
1972, 86 Stat. 33; Pub. L. 94–141, title I, § 150(b), Nov. 29, 1975, 89 Stat. 760; Pub. L. 94–329, title II,
§ 213, title VI, § 605(b), June 30, 1976, 90 Stat. 745, 768; Pub. L. 96–533, title I, § 105(e)(3), Dec. 16,
1980, 94 Stat. 3135; Pub. L. 97–392, § 2, Dec. 29, 1982, 96 Stat. 1963; Pub. L. 99–83, title I, § 115(b)(3),
Aug. 8, 1985, 99 Stat. 201; Pub. L. 99–145, title XI, § 1102(a)(4), (5), Nov. 8, 1985, 99 Stat. 710; Pub.
L. 99–661, div. A, title XIII, § 1342(e), Nov. 14, 1986, 100 Stat. 3991; Pub. L. 103–236, title VII, §
714(a)(2), Apr. 30, 1994, 108 Stat. 497; Pub. L. 105–277, div. G, subdiv. A, title XII, § 1225(a)(3), Oct.
21, 1998, 112 Stat. 2681–773.)
References in Text
This chapter, referred to in text, was in the original “this Act”, meaning Pub. L. 90–629, Oct. 22, 1968, 82 Stat. 1321,
which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note
set out under section 2751 of this title and Tables.
Amendments
1998—Subsec. (a). Pub. L. 105–277 struck out par. (1) designation, struck out “the assessment of the Director of the
United States Arms Control and Disarmament Agency as to” after “, and (C)”, and struck out par. (2) which read as
follows: “Any proposed sale made pursuant to this chapter shall be approved only after consultation with the Director
of the United States Arms Control and Disarmament Agency. The Director of the Arms Control and Disarmament
Agency is authorized, whenever the Director determines that a sale under this section would be detrimental to the
national security of the United States, to recommend to the President that such sale be disapproved.”
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NB: This unofficial compilation of the U.S. Code is current as of Jan. 4, 2012 (see http://www.law.cornell.edu/uscode/uscprint.html).
1994—Subsec. (a). Pub. L. 103–236 designated existing provisions as par. (1), redesignated former cls. (1) to (3) as
cls. (A) to (C), respectively, amended cl. (C) generally, and added par. (2). Prior to being amended generally, cl. (C)
read as follows: “in coordination with the Director of the United States Arms Control and Disarmament Agency, the
Director’s opinion as to the extent to which such sale might contribute to an arms race, or increase the possibility of
outbreak or escalation of conflict, or prejudice the development of bilateral or multilateral arms control arrangements.”
1986—Subsec. (e)(1), (3). Pub. L. 99–661 repealed section 1102(a)(4) of Pub. L. 99–145 and the amendments made by
that section, and provided that this section shall apply as if that section had never been enacted. See 1985 Amendments
note below.
1985—Subsec. (e)(1), (3). Pub. L. 99–83 inserted reference to contracts under section 2767 (d) of this title.
Pub. L. 99–145, § 1102(a)(4), which enacted amendments similar to those provided in Pub. L. 99–83, was repealed.
See 1986 Amendments note below and former section 1102(a)(5) of Pub. L. 99–145 set out as a Repeals; Effective
Date note under section 2752 of this title.
1982—Subsecs. (d)(1), (e)(1), (3)(A). Pub. L. 97–392 substituted “2769 and 2770” for “and 2769”.
1980—Subsecs. (d)(1), (e)(1), (3). Pub. L. 96–533, § 105(e)(3), inserted reference to section 2769 of this title.
1976—Subsec. (e). Pub. L. 94–329, § 213, added subsec. (e).
Subsec. (f). Pub. L. 94–329, § 605(b), added subsec. (f).
1975—Subsec. (a)(3). Pub. L. 94–141 inserted provision relating to coordination with the Director of the United States
Arms Control and Disarmament Agency.
1972—Subsec. (a). Pub. L. 92–226, § 401(e), (f)(1), added cl. (3) and inserted “, subject to the provisions of subsection
(b) of this section,” before “consideration shall also be given”, respectively.
Subsecs. (b) to (d). Pub. L. 92–226, § 401(f)(2), added subsec. (b) and redesignated former subsecs. (b) and (c) as
(c) and (d).
Effective Date of 1998 Amendment
Amendment by Pub. L. 105–277 effective Apr. 1, 1999, see section 1201 of Pub. L. 105–277, set out as an Effective
Date note under section 6511 of this title.
Effective Date of 1985 Amendment
Amendment by Pub. L. 99–83 effective Oct. 1, 1985, see section 1301 of Pub. L. 99–83, set out as a note under section
2151–1 of this title.
Delegation of Functions
Functions of President under subsecs. (c) and (f) of this section delegated to Secretary of Defense, with concurrence
of Secretary of State and Secretary of the Treasury required for any determination proposed under subsec. (c) of this
section, by section 1(p) of Ex. Ord. No. 11958, Jan. 18, 1977, 42 F.R. 4311, as amended, set out as a note under section
2751 of this title.
.....................................
§ 2792. Administrative expenses
(a) Availability of funds
Funds made available under other law for the operations of United States Government agencies carrying
out functions under this chapter shall be available for the administrative expenses incurred by such
agencies under this chapter.
(b) Charges for administrative expenses and official reception and representation expenses
Charges for administrative services calculated under section 2761 (e)(1)(A) of this title shall include
recovery of administrative expenses and official reception and representation expenses incurred by any
department or agency of the United States Government, including any mission or group thereof, in
carrying out functions under this chapter when—
(1) such functions are primarily for the benefit of any foreign country;
(2) such expenses are not directly and fully charged to, and reimbursed from amounts received
for, sale of defense services under section 2761 (a) of this title; and
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(3) such expenses are neither salaries of the Armed Forces of the United States nor represent
unfunded estimated costs of civilian retirement and other benefits.
(c) Limitations on funds used for official reception and representation expenses
Not more than $86,500 of the funds derived from charges for administrative services pursuant to
section 2761 (e)(1)(A) of this title may be used each fiscal year for official reception and representation
expenses.
(Pub. L. 90–629, ch. 4, § 43, Oct. 22, 1968, 82 Stat. 1327; Pub. L. 94–329, title II, § 214, June 30, 1976,
90 Stat. 746; Pub. L. 95–92, § 7(d), Aug. 4, 1977, 91 Stat. 617; Pub. L. 96–92, § 19(b), Oct. 29, 1979, 93
Stat. 709; Pub. L. 97–113, title VII, § 734(a)(10), Dec. 29, 1981, 95 Stat. 1560; Pub. L. 99–83, title I, §
120, Aug. 8, 1985, 99 Stat. 204; Pub. L. 101–165, title IX, § 9104(b)(1), Nov. 21, 1989, 103 Stat. 1152;
Pub. L. 107–228, div. B, title XII, § 1203, Sept. 30, 2002, 116 Stat. 1427.)
References in Text
This chapter, referred to in subsecs. (a) and (b), was in the original “this Act”, meaning Pub. L. 90–629, Oct. 22, 1968,
82 Stat. 1321, which is classified principally to this chapter. For complete classification of this Act to the Code, see
Short Title note set out under section 2751 of this title and Tables.
Amendments
2002—Subsec. (c). Pub. L. 107–228 substituted “$86,500” for “$72,500”.
1989—Subsec. (b)(3). Pub. L. 101–165 added par. (3).
1985—Subsec. (b). Pub. L. 99–83, § 120(1), inserted “and official reception and representation expenses”.
Subsec. (c). Pub. L. 99–83, § 120(2), added subsec. (c).
1981—Subsec. (c). Pub. L. 97–113 struck out subsec. (c) which required a Presidential report to Congress no later than
Jan. 15 of each year containing analysis and description of Federal personnel arms export control services performed
previous fiscal year. See section 2765 (a)(6) of this title.
1979—Subsec. (c). Pub. L. 96–92 added subsec. (c).
1977—Subsec. (b). Pub. L. 95–92 substituted provisions relating to criteria for recovery of charges for administrative
expenses calculated under section 2761 (e)(1)(A) of this title, for provisions relating to reimbursement from amounts
received for sales under sections 2761 and 2762 of this title of administrative expenses incurred by a United States
government department or agency in carrying out functions under this chapter for the benefit of any foreign country.
1976—Pub. L. 94–329 designated existing provisions as subsec. (a) and added subsec. (b).
Effective Date of 1985 Amendment
Amendment by Pub. L. 99–83 effective Oct. 1, 1985, see section 1301 of Pub. L. 99–83, set out as a note under section
2151–1 of this title.
.....................................
§ 2793. Other provisions unaffected
No provision of this chapter shall be construed as modifying in any way the provisions of the
Atomic Energy Act of 1954, as amended [42 U.S.C. 2011 et seq.], or section 7307 of title 10.
(Pub. L. 90–629, ch. 4, § 44, Oct. 22, 1968, 82 Stat. 1327.)
References in Text
This chapter, referred to in text, was in the original “this Act”, meaning Pub. L. 90–629, Oct. 22, 1968, 82 Stat. 1321,
which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note
set out under section 2751 of this title and Tables.
The Atomic Energy Act of 1954, as amended, referred to in text, is act Aug. 1, 1946, ch. 724, as added by act Aug.
30, 1954, ch. 1073, § 1, 68 Stat. 921, and amended, which is classified principally to chapter 23 (§ 2011 et seq.) of
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TITLE 22 - Section 2794 - Definitions
NB: This unofficial compilation of the U.S. Code is current as of Jan. 4, 2012 (see http://www.law.cornell.edu/uscode/uscprint.html).
Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title note set
out under section 2011 of Title 42 and Tables.
Specific Application of Other Provisions to this Chapter
Except for laws specified in this section, other provisions inapplicable to this chapter without a specific reference
thereto or to sales of defense articles and defense services under any Act, see section 45(c) of Pub. L. 90–629, set out
as a note under section 2751 of this title.
.....................................
§ 2794. Definitions
For purposes of this chapter, the term—
(1) “excess defense article” has the meaning provided by section 2403 (g) of this title;
(2) “value” means, in the case of an excess defense article, except as otherwise provided in section
2761 (a) of this title,,1 not less than the greater of—
(A) the gross cost incurred by the United States Government in repairing, rehabilitating, or
modifying such article, plus the scrap value; or
(B) the market value, if ascertainable;
(3) “defense article”, except as provided in paragraph (7) of this section, includes—
(A) any weapon, weapons system, munition, aircraft, vessel, boat, or other implement of war,
(B) any property, installation, commodity, material, equipment, supply, or goods used for the
purposes of making military sales,
(C) any machinery, facility, tool, material, supply, or other item necessary for the manufacture,
production, processing, repair, servicing, storage, construction, transportation, operation, or use of
any article listed in this paragraph, and
(D) any component or part of any article listed in this paragraph,
but does not include merchant vessels or (as defined by the Atomic Energy Act of 1954 [42 U.S.C.
2011 et seq.]) source material (except uranium depleted in the isotope 235 which is incorporated in
defense articles solely to take advantage of high density or pyrophoric characteristics unrelated to
radioactivity), byproduct material, special nuclear material, production facilities, utilization facilities,
or atomic weapons or articles involving Restricted Data;
(4) “defense service”, except as provided in paragraph (7) of this section, includes any service, test,
inspection, repair, training, publication, technical or other assistance, or defense information (as defined
in section 2403 (e) of this title), used for the purposes of making military sales, but does not include
design and construction services under section 2769 of this title;
(5) “training” includes formal or informal instruction of foreign students in the United States or
overseas by officers or employees of the United States, contract technicians, or contractors (including
instruction at civilian institutions), or by correspondence courses, technical, educational, or information
publications and media of all kinds, training aid, orientation, training exercise, and military advice to
foreign military units and forces;
(6) “major defense equipment” means any item of significant military equipment on the United States
Munitions List having a nonrecurring research and development cost of more than $50,000,000 or a
total production cost of more than $200,000,000;
(7) “defense articles and defense services” means, with respect to commercial exports subject to the
provisions of section 2778 of this title, those items designated by the President pursuant to subsection
(a)(1) of such section;
(8) “design and construction services” means, with respect to sales under section 2769 of this title,
the design and construction of real property facilities, including necessary construction equipment
and materials, engineering services, construction contract management services relating thereto, and
technical advisory assistance in the operation and maintenance of real property facilities provided or
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TITLE 22 - CHAPTER 39 - SUBCHAPTER V SPECIAL DEFENSE ACQUISITION FUND
NB: This unofficial compilation of the U.S. Code is current as of Jan. 4, 2012 (see http://www.law.cornell.edu/uscode/uscprint.html).
performed by any department or agency of the Department of Defense or by a contractor pursuant to
a contract with such department or agency;
(9) “significant military equipment” means articles—
(A) for which special export controls are warranted because of the capacity of such articles for
substantial military utility or capability; and
(B) identified on the United States Munitions List;
(10) “weapons of mass destruction” has the meaning provided by section 2302 (1) of title 50; and
(11) “Sales territory” means a country or group of countries to which a defense article or defense
service is authorized to be reexported.
Footnotes
1 So in original.
(Pub. L. 90–629, ch. 4, § 47, as added Pub. L. 93–189, § 25(12), Dec. 17, 1973, 87 Stat. 731; amended
Pub. L. 94–329, title II, § 215, June 30, 1976, 90 Stat. 746; Pub. L. 96–92, § 22, Oct. 29, 1979, 93 Stat.
710; Pub. L. 96–533, title I, § 105(f), Dec. 16, 1980, 94 Stat. 3135; Pub. L. 99–83, title I, § 107(b), title
XII, § 1211(b)(3), Aug. 8, 1985, 99 Stat. 197, 279; Pub. L. 104–164, title I, § 144, July 21, 1996, 110
Stat. 1434; Pub. L. 107–228, div. B, title XII, § 1202(b), title XIV, § 1405(a)(4), Sept. 30, 2002, 116 Stat.
1427, 1458.)
References in Text
This chapter, referred to in introductory provisions, was in the original “this Act”, meaning Pub. L. 90–629, Oct. 22,
1968, 82 Stat. 1321, which is classified principally to this chapter. For complete classification of this Act to the Code,
see Short Title note set out under section 2751 of this title and Tables.
The Atomic Energy Act of 1954, as amended, referred to in par. (3), is act Aug. 1, 1946, ch. 724, as added by act Aug.
30, 1954, ch. 1073, § 1, 68 Stat. 921, and amended, which is classified principally to chapter 23 (§ 2011 et seq.) of
Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title note set
out under section 2011 of Title 42 and Tables.
Amendments
2002—Par. (10). Pub. L. 107–228, § 1202(b), added par. (10).
Par. (11). Pub. L. 107–228, § 1405(a)(4), added par. (11).
1996—Par. (9). Pub. L. 104–164 added par. (9).
1985—Par. (2). Pub. L. 99–83, § 107(b), inserted “, except as otherwise provided in section 2761 (a) of this title,”.
Par. (6). Pub. L. 99–83, § 1211(b)(3), substituted “military” for “combat”.
1980—Par. (4). Pub. L. 96–533, § 105(f)(1), excluded from term “defense service” design and construction services
under section 2769 of this title.
Par. (8). Pub. L. 96–533, § 105(f)(2)–(4), added par. (8).
1979—Par. (3). Pub. L. 96–92 defined “defense article” to include uranium depleted in the isotope 235 which is
incorporated in defense articles solely to take advantage of high density or pyrophoric characteristics unrelated to
radioactivity.
1976—Pars. (3) to (7). Pub. L. 94–329 added pars. (3) to (7).
Effective Date of 1985 Amendment
Amendment by Pub. L. 99–83 effective Oct. 1, 1985, see section 1301 of Pub. L. 99–83, set out as a note under section
2151–1 of this title.
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TITLE 22 - Section 2795 - Fund
NB: This unofficial compilation of the U.S. Code is current as of Jan. 4, 2012 (see http://www.law.cornell.edu/uscode/uscprint.html).
SUBCHAPTER V—SPECIAL DEFENSE ACQUISITION FUND
.....................................
§ 2795. Fund
(a) Establishment; purposes; special requirements and responsibilities; continuous orders for
certain articles and services; articles for narcotics control purposes
(1) Under the direction of the President and in consultation with the Secretary of State, the
Secretary of Defense shall establish a Special Defense Acquisition Fund (hereafter in this
subchapter referred to as the “Fund”), to be used as a revolving fund separate from other accounts,
under the control of the Department of Defense, to finance the acquisition of defense articles and
defense service in anticipation of their transfer pursuant to this chapter, the Foreign Assistance Act
of 1961 [22 U.S.C. 2151 et seq.], or as otherwise authorized by law, to eligible foreign countries and
international organizations, and may acquire such articles and services with the funds in the Fund
as he may determine. Acquisition under this subchapter of items for which the initial issue quantity
requirements for United States Armed Forces have not been fulfilled and are not under current
procurement contract shall be emphasized when compatible with security assistance requirements
for the transfer of such items.
(2) Nothing in this subchapter may be construed to limit or impair any responsibilities conferred
upon the Secretary of State or the Secretary of Defense under this chapter or the Foreign Assistance
Act of 1961 [22 U.S.C. 2151 et seq.].
(3) The Fund may be used to keep on continuous order such defense articles and defense services
as are assigned by the Department of Defense for integrated management by a single agency thereof
for the common use of all military departments in anticipation of the transfer of similar defense
articles and defense services to foreign countries and international organizations pursuant to this
chapter, the Foreign Assistance Act of 1961 [22 U.S.C. 2151 et seq.], or other law.
(4) The Fund shall also be used to acquire defense articles that are particularly suited for use for
narcotics control purposes and are appropriate to the needs of recipient countries, such as small
boats, planes (including helicopters), and communications equipment.
(b) Collections in Fund
The Fund shall consist of—
(1) collections from sales made under letters of offer issued pursuant to section 2761 (a)(1)(A) of
this title representing the actual value of defense articles not intended to be replaced in stock,
(2) collections from sales representing the value of asset use charges (including contractor rental
payments for United States Government-owned plant and production equipment) and charges for
the proportionate recoupment of nonrecurring research, development, and production costs, and
(3) collections from sales made under letters of offer (or transfers made under the Foreign
Assistance Act of 1961 [22 U.S.C. 2151 et seq.]) of defense articles and defense services
acquired under this subchapter, representing the value of such items calculated in accordance with
subparagraph (B) or (C) of section 2761 (a)(1) of this title or section 2762 of this title or section
644(m) of the Foreign Assistance Act of 1961 [22 U.S.C. 2403 (m)], as appropriate,
together with such funds as may be authorized and appropriated or otherwise made available for the
purposes of the Fund.
(c) Amounts
(1) The size of the Fund may not exceed such dollar amount as is prescribed in section 114 (c)
of title 10. For purposes of this limitation, the size of the Fund is the amounts in the Fund plus the
value (in terms of acquisition cost) of the defense articles acquired under this subchapter which
have not been transferred from the Fund in accordance with this subchapter.
(2) Amounts in the Fund shall be available for obligation in any fiscal year only to such extent or
in such amounts as are provided in advance in appropriation Acts.
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TITLE 22 - Section 2795a - Use and transfer of items procured by Fund
NB: This unofficial compilation of the U.S. Code is current as of Jan. 4, 2012 (see http://www.law.cornell.edu/uscode/uscprint.html).
(Pub. L. 90–629, ch. 5, § 51, as added Pub. L. 97–113, title I, § 108(a), Dec. 29, 1981, 95 Stat. 1522;
amended Pub. L. 99–83, title I, § 121, Aug. 8, 1985, 99 Stat. 204; Pub. L. 99–139, § 1(a), Oct. 30, 1985,
99 Stat. 562; Pub. L. 99–433, title I, § 110(h)(1), Oct. 1, 1986, 100 Stat. 1004; Pub. L. 101–231, § 4, Dec.
13, 1989, 103 Stat. 1957; Pub. L. 104–164, title I, § 145(b), July 21, 1996, 110 Stat. 1434.)
References in Text
This chapter, referred to in subsec. (a)(1) to (3), was in the original “this Act”, meaning Pub. L. 90–629, Oct. 22, 1968,
82 Stat. 1321, which is classified principally to this chapter. For complete classification of this Act to the Code, see
Short Title note set out under section 2751 of this title and Tables.
The Foreign Assistance Act of 1961, referred to in subsecs. (a) and (b)(3), is Pub. L. 87–195, Sept. 4, 1961, 75 Stat.
424, as amended, which is classified principally to chapter 32 (§ 2151 et seq.) of this title. For complete classification
of this Act to the Code, see Short Title note set out under section 2151 of this title and Tables.
Amendments
1996—Subsec. (a)(4). Pub. L. 104–164 redesignated subpar. (A) as entire par. (4) and struck out subpar. (B) which
read as follows: “Each report pursuant to section 2795b (a) of this title shall designate the defense articles that have
been acquired or are to be acquired pursuant to this paragraph and the defense articles acquired under this subchapter
that were transferred for use in narcotics control purposes.”
1989—Subsec. (a)(4). Pub. L. 101–231 added par. (4).
1986—Subsec. (c)(1). Pub. L. 99–433 substituted “section 114 (c)” for “section 138 (g)”.
1985—Subsec. (a)(3). Pub. L. 99–83, § 121(a), added par. (3).
Subsec. (b). Pub. L. 99–139 amended subsec. (b) generally, so as to read similar to how it read prior to the amendment
by Pub. L. 99–83.
Pub. L. 99–83 amended subsec. (b) to read as follows: “The Fund shall consist of collections from sales made under
letters of offer, or transfers made under the Foreign Assistance Act of 1961, of defense articles and defense services
acquired under this subchapter (representing the value of such items calculated in accordance with subparagraph (B)
or (C) of section 2761 (a)(1) of this title or section 2762 of this title or section 644(m) of the Foreign Assistance Act
of 1961, as appropriate), together with such funds as may be authorized and appropriated or otherwise made available
for the purposes of the Fund.”
Effective Date of 1985 Amendments
Section 1(b) of Pub. L. 99–139 provided that: “The amendment made by subsection (a) [amending this section] shall
take effect as of October 1, 1985.”
Amendment by Pub. L. 99–83 effective Oct. 1, 1985, see section 1301 of Pub. L. 99–83, set out as a note under section
2151–1 of this title.
.....................................
§ 2795a. Use and transfer of items procured by Fund
(a) Authorization
No defense article or defense service acquired by the Secretary of Defense under this subchapter may
be transferred to any foreign country or international organization unless such transfer is authorized by
this chapter, the Foreign Assistance Act of 1961 [22 U.S.C. 2151 et seq.], or other law.
(b) Temporary use
The President may authorize the temporary use by the United States Armed Forces of defense articles
and defense services acquired under this subchapter prior to their transfer to a foreign country or
international organization, if such is necessary to meet national defense requirements and the United
States Armed Forces bear the costs of operation and maintenance of such articles or services while in
their use and the costs of restoration or replacement upon the termination of such use.
(c) Storage, maintenance and other costs
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TITLE 22 - Section 2795b - Repealed.]
NB: This unofficial compilation of the U.S. Code is current as of Jan. 4, 2012 (see http://www.law.cornell.edu/uscode/uscprint.html).
Except as provided in subsection (b) of this section, the Fund may be used to pay for storage,
maintenance, and other costs related to the preservation and preparation for transfer of defense articles
and defense services acquired under this subchapter prior to their transfer, as well as the administrative
costs of the Department of Defense incurred in the acquisition of such items to the extent not reimbursed
pursuant to section 2792 (b) of this title.
(Pub. L. 90–629, ch. 5, § 52, as added Pub. L. 97–113, title I, § 108(a), Dec. 29, 1981, 95 Stat. 1523.)
References in Text
This chapter, referred to in subsec. (a), was in the original “this Act”, meaning Pub. L. 90–629, Oct. 22, 1968, 82 Stat.
1321, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title
note set out under section 2751 of this title and Tables.
The Foreign Assistance Act of 1961, referred to in subsec. (a), is Pub. L. 87–195, Sept. 4, 1961, 75 Stat. 424, as
amended, which is classified principally to chapter 32 (§ 2151 et seq.) of this title. For complete classification of this
Act to the Code, see Short Title note set out under section 2151 of this title and Tables.
Delegation of Functions
Functions of President under subsec. (b) of this section delegated to Secretary of Defense by section 1(q) of Ex. Ord.
No. 11958, Jan. 18, 1977, 42 F.R. 4311, as amended, set out as a note under section 2751 of this title.
.....................................
§ 2795b. Repealed. Pub. L. 104–164, title I, § 145(a), July 21, 1996, 110 Stat. 1434
Section, Pub. L. 90–629, ch. 5, § 53, as added Pub. L. 97–113, title I, § 108(a), Dec. 29, 1981, 95
Stat. 1524; amended Pub. L. 99–433, title I, § 110(h)(2), Oct. 1, 1986, 100 Stat. 1004, directed
President to submit annual report to Congress on acquisitions of defense articles and services under
this subchapter and required report to include estimate of likely procurements to be made through
Special Defense Acquisition Fund.
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TITLE 22 - Section 2796 - Leasing authority
NB: This unofficial compilation of the U.S. Code is current as of Jan. 4, 2012 (see http://www.law.cornell.edu/uscode/uscprint.html).
SUBCHAPTER VI—LEASES OF DEFENSE ARTICLES AND LOAN AUTHORITY
FOR COOPERATIVE RESEARCH AND DEVELOPMENT PURPOSES
.....................................
§ 2796. Leasing authority
(a) Preconditions
The President may lease defense articles in the stocks of the Department of Defense to an eligible
foreign country or international organization if—
(1) he determines that there are compelling foreign policy and national security reasons for
providing such articles on a lease basis rather than on a sales basis under this chapter;
(2) he determines that the articles are not for the time needed for public use;
(3) the President first considers the effects of the lease of the articles on the national technology
and industrial base, particularly the extent, if any, to which the lease reduces the opportunities
of entities in the national technology and industrial base to sell new equipment to the country or
countries to which the articles are leased; and
(4) the country or international organization has agreed to pay in United States dollars all costs
incurred by the United States Government in leasing such articles, including reimbursement for
depreciation of such articles while leased, the costs of restoration or replacement if the articles are
damaged while leased, and, if the articles are lost or destroyed while leased—
(A) in the event the United States intends to replace the articles lost or destroyed, the
replacement cost (less any depreciation in the value) of the articles; or
(B) in the event the United States does not intend to replace the articles lost or destroyed,
an amount not less than the actual value (less any depreciation in the value) specified in the
lease agreement.
The requirement of paragraph (4) shall not apply to leases entered into for purposes of cooperative
research or development, military exercises, or communications or electronics interface projects.
The President may waive the requirement of paragraph (4) for reimbursement of depreciation
for any defense article which has passed three-quarters of its normal service life if the President
determines that to do so is important to the national security interest of the United States. The
President may waive the requirement of paragraph (4) with respect to a lease which is made in
exchange with the lessee for a lease on substantially reciprocal terms of defense articles for the
Department of Defense, except that this waiver authority—
(A) may be exercised only if the President submits to the Committee on Foreign Affairs
and the Committee on Appropriations of the House of Representatives and the Committee on
Foreign Relations and the Committee on Appropriations of the Senate, in accordance with
the regular notification procedures of those Committees, a detailed notification for each lease
with respect to which the authority is exercised; and
(B) may be exercised only during the fiscal year 1 the current fiscal year and only with respect
to one country, unless the Congress hereafter provides otherwise.
The preceding sentence does not constitute authorization of appropriations for payments by the United
States for leased articles.
(b) Duration; termination
(1) Each lease agreement under this section shall be for a fixed duration which may not exceed
(A) five years, and
(B) a specified period of time required to complete major refurbishment work of the leased
articles to be performed prior to the delivery of the leased articles, and shall provide that, at
any time during the duration of the lease, the President may terminate the lease and require
the immediate return of the leased articles.
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(2) In this subsection, the term “major refurbishment work” means work for which the period of
performance is 6 months or more.
(c) Applicable statutory authorities
Defense articles in the stocks of the Department of Defense may be leased or loaned to a foreign country
or international organization only under the authority of this subchapter or chapter 2 of part II of the
Foreign Assistance Act of 1961 [22 U.S.C. 2311 et seq.], and may not be leased to a foreign country
or international organization under the authority of section 2667 of title 10.
Footnotes
1 So in original. The words “the fiscal year” probably should not appear.
(Pub. L. 90–629, ch. 6, § 61, as added Pub. L. 97–113, title I, § 109(a), Dec. 29, 1981, 95 Stat. 1524;
amended Pub. L. 99–500, § 147, Oct. 18, 1986, 100 Stat. 1783–351, and Pub. L. 99–591, § 147, Oct. 30,
1986, 100 Stat. 3341–354; Pub. L. 100–202, § 101(e) [title V, § 556], Dec. 22, 1987, 101 Stat. 1329–131,
1329–170; Pub. L. 100–461, title V, § 552, Oct. 1, 1988, 102 Stat. 2268–35; Pub. L. 101–167, title V, §
550, Nov. 21, 1989, 103 Stat. 1235; Pub. L. 101–513, title V, § 546, Nov. 5, 1990, 104 Stat. 2019; Pub.
L. 102–145, § 118, as added Pub. L. 102–266, § 102, Apr. 1, 1992, 106 Stat. 93; Pub. L. 102–391, title
V, § 544, Oct. 6, 1992, 106 Stat. 1672; Pub. L. 103–87, title V, § 524, Sept. 30, 1993, 107 Stat. 952; Pub.
L. 103–236, title VII, § 731(e), Apr. 30, 1994, 108 Stat. 503; Pub. L. 103–306, title V, § 524, Aug. 23,
1994, 108 Stat. 1632; Pub. L. 104–107, title V, § 524, Feb. 12, 1996, 110 Stat. 729; Pub. L. 104–164, title
I, §§ 146, 153 (a), July 21, 1996, 110 Stat. 1434, 1440; Pub. L. 104–208, div. A, title I, § 101(c) [title V,
§ 524], Sept. 30, 1996, 110 Stat. 3009–121, 3009–149; Pub. L. 105–118, title V, § 524, Nov. 26, 1997,
111 Stat. 2412; Pub. L. 105–277, div. A, § 101(d) [title V, § 524], Oct. 21, 1998, 112 Stat. 2681–150,
2681–177; Pub. L. 107–228, div. B, title XII, § 1233, Sept. 30, 2002, 116 Stat. 1433.)
References in Text
This chapter, referred to in subsec. (a)(1), was in the original “this Act”, meaning Pub. L. 90–629, Oct. 22, 1968, 82
Stat. 1321, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short
Title note set out under section 2751 of this title and Tables.
The Foreign Assistance Act of 1961, referred to in subsec. (c), is Pub. L. 87–195, Sept. 4, 1961, 75 Stat. 424, as
amended. Chapter 2 of part II of that Act is classified generally to part II (§ 2311 et seq.) of subchapter II of this
chapter. For complete classification of this Act to the Code, see Short Title note set out under section 2151 of this
title and Tables.
Codification
Amendment by Pub. L. 102–145 is based on 545 of H.R. 2621, One Hundred Second Congress, 1st Session, as passed
by the House of Representatives on June 19, 1991, which was enacted into law by Pub. L. 102–145, § 118, as added
by Pub. L. 102–266, § 102, Apr. 1, 1992, 106 Stat. 93. Section 118 of Pub. L. 102–145 provided that the authority
and conditions provided in such section 545 shall be applicable to funds appropriated by Pub. L. 102–145 (and are
hereby enacted) in lieu of the authority and conditions provided in section 546 of Pub. L. 101–513. See 1990, 1991,
and 1992 Amendment notes below.
Pub. L. 99–591 is a corrected version of Pub. L. 99–500.
Amendments
2002—Subsec. (b). Pub. L. 107–228 designated existing provisions as par. (1), substituted “which may not exceed (A)
five years, and (B) a specified period of time required to complete major refurbishment work of the leased articles to
be performed prior to the delivery of the leased articles,” for “of not to exceed five years”, and added par. (2).
1998—Subsec. (a). Pub. L. 105–277 substituted “the current fiscal year” for “1998” in par. (B).
1997—Subsec. (a). Pub. L. 105–118 substituted “1998” for “1997” in par. (B).
1996—Subsec. (a). Pub. L. 104–164, § 153(a), struck out “, or to any defense article which has passed three-quarters
of its normal service life.” after “electronics interface projects” in second sentence and inserted after second sentence
“The President may waive the requirement of paragraph (4) for reimbursement of depreciation for any defense article
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TITLE 22 - Section 2796a - Reports to Congress
NB: This unofficial compilation of the U.S. Code is current as of Jan. 4, 2012 (see http://www.law.cornell.edu/uscode/uscprint.html).
which has passed three-quarters of its normal service life if the President determines that to do so is important to the
national security interest of the United States.”
Pub. L. 104–208 substituted “1997” for “1996” in par. (B).
Pub. L. 104–107 substituted “1996” for “1995” in par. (B).
Subsec. (a)(4). Pub. L. 104–164, § 146, substituted “and, if the articles are lost or destroyed while leased—
“(A) in the event the United States intends to replace the articles lost or destroyed, the replacement cost (less any
depreciation in the value) of the articles; or
“(B) in the event the United States does not intend to replace the articles lost or destroyed, an amount not less than the
actual value (less any depreciation in the value) specified in the lease agreement” for “and the replacement cost (less
any depreciation in the value) of the articles if the articles are lost or destroyed while leased”.
1994—Subsec. (a). Pub. L. 103–306 substituted “1995” for “1994” in par. (B).
Pub. L. 103–236 struck out “and” at end of par. (2), added par. (3), redesignated former par. (3) as (4), and substituted
“paragraph (4)” for “paragraph (3)” in two places in provisions following par. (4).
1993—Subsec. (a). Pub. L. 103–87 substituted “1994” for “1993” in par. (B).
1992—Subsec. (a). Pub. L. 102–391 substituted “1993” for “1992” in par. (B).
Pub. L. 102–266 added Pub. L. 102–145, § 118. See 1991 Amendment note below.
1991—Subsec. (a). Pub. L. 102–145, § 118, as added by Pub. L. 102–266, substituted “1992” for “1991” in par. (B).
See Codification note above.
1990—Subsec. (a). Pub. L. 101–513 substituted “1991” for “1990” in par. (B).
1989—Subsec. (a). Pub. L. 101–167 substituted “1990” for “1989” in par. (B).
1988—Subsec. (a). Pub. L. 100–461 substituted “1989” for “1988” in par. (B).
1987—Subsec. (a). Pub. L. 100–202 substituted “1988” for “1987” in par. (B).
1986—Subsec. (a). Pub. L. 99–500 and Pub. L. 99–591 inserted provision authorizing the President to waive the
requirements of par. (3) with respect to a lease which is made in exchange with the lessee for a lease on substantially
reciprocal terms of defense articles for the Department of Defense and providing exceptions to such waiver authority.
Effective Date of 1996 Amendment
Section 153(b) of Pub. L. 104–164 provided that: “The third sentence of section 61(a) of the Arms Export Control
Act, as added by subsection (a)(2) [22 U.S.C. 2796 (a)], shall apply only with respect to a defense article leased on
or after the date of the enactment of this Act [July 21, 1996].”
Delegation of Functions
Functions of President under this section delegated to Secretary of Defense by section 1(r) of Ex. Ord. No. 11958, Jan.
18, 1977, 42 F.R. 4311, as amended, set out as a note under section 2751 of this title.
.....................................
§ 2796a. Reports to Congress
(a) Written certification to Speaker of the House and chairmen of Congressional committees
Before entering into or renewing any agreement with a foreign country or international organization to
lease any defense article under this subchapter, or to loan any defense article under chapter 2 of part
II of the Foreign Assistance Act of 1961 [22 U.S.C. 2311 et seq.], for a period of one year or longer,
the President shall transmit to the Speaker of the House of Representatives, and to the chairman of the
Committee on Foreign Relations of the Senate and the chairman of the Committee on Armed Services
of the Senate, a written certification which specifies—
(1) the country or international organization to which the defense article is to be leased or loaned;
(2) the type, quantity, and value (in terms of replacement cost) of the defense article to be leased
or loaned;
(3) the terms and duration of the lease or loan; and
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(4) a justification for the lease or loan, including an explanation of why the defense article is being
leased or loaned rather than sold under this chapter.
(b) Waiver; determination of emergency
The President may waive the requirements of this section (and in the case of an agreement described in
section 2796b of this title, may waive the provisions of that section) if he states in his certification, that
an emergency exists which requires that the lease or loan be entered into immediately in the national
security interests of the United States. If the President states in his certification that such an emergency
exists, he shall set forth in the certification a detailed justification for his determination, including a
description of the emergency circumstances which necessitate that the lease be entered into immediately
and a discussion of the national security interests involved.
(c) Transmission of certification
The certification required by subsection (a) of this section shall be transmitted—
(1) not less than 15 calendar days before the agreement is entered into or renewed in the case of an
agreement with the North Atlantic Treaty Organization, any member country of that Organization
or Australia, Japan, the Republic of Korea, Israel, or New Zealand; and
(2) not less than 30 calendar days before the agreement is entered into or renewed in the case of
an agreement with any other organization or country.
(Pub. L. 90–629, ch. 6, § 62, as added Pub. L. 97–113, title I, § 109(a), Dec. 29, 1981, 95 Stat. 1525;
amended Pub. L. 104–164, title I, § 141(e)(1), July 21, 1996, 110 Stat. 1432; Pub. L. 110–429, title II,
§ 203(b)(1), Oct. 15, 2008, 122 Stat. 4845; Pub. L. 111–266, title III, § 301(1), Oct. 8, 2010, 124 Stat.
2804.)
References in Text
The Foreign Assistance Act of 1961, referred to in subsec. (a), is Pub. L. 87–195, Sept. 4, 1961, 75 Stat. 424, as
amended. Chapter 2 of part II of that Act is classified generally to part II (§ 2311 et seq.) of subchapter II of this
chapter. For complete classification of this Act to the Code, see Short Title note set out under section 2151 of this
title and Tables.
This chapter, referred to in subsec. (a)(4), was in the original “this Act”, meaning Pub. L. 90–629, Oct. 22, 1968, 82
Stat. 1321, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short
Title note set out under section 2751 of this title and Tables.
Amendments
2010—Subsec. (c)(1). Pub. L. 111–266 inserted “Israel,” before “or New Zealand”.
2008—Subsec. (c)(1). Pub. L. 110–429 inserted “the Republic of Korea,” before “or New Zealand”.
1996—Subsec. (a). Pub. L. 104–164, § 141(e)(1)(A), substituted “Before” for “Not less than 30 days before”.
Subsec. (b). Pub. L. 104–164, § 141(e)(1)(B), substituted “states in his certification” for “determines, and immediately
reports to the Congress” and inserted at end “If the President states in his certification that such an emergency exists, he
shall set forth in the certification a detailed justification for his determination, including a description of the emergency
circumstances which necessitate that the lease be entered into immediately and a discussion of the national security
interests involved.”
Subsec. (c). Pub. L. 104–164, § 141(e)(1)(C), added subsec. (c).
Effective Date of 1996 Amendment
Amendment by Pub. L. 104–164 applicable with respect to certifications required to be submitted on or after July 21,
1996, see section 141(f) of Pub. L. 104–164, set out as a note under section 2753 of this title.
Delegation of Functions
Functions of President under subsec. (a) of this section delegated to Secretary of Defense by section 1(r) of Ex. Ord.
No. 11958, Jan. 18, 1977, 42 F.R. 4311, as amended, set out as a note under section 2751 of this title.
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§ 2796b. Legislative review procedures
(a) Applicability
(1) Subject to paragraph (2), in the case of any agreement involving the lease under this
subchapter, or the loan under chapter 2 of part II of the Foreign Assistance Act of 1961 [22 U.S.C.
2311 et seq.], to any foreign country or international organization for a period of one year or longer
of any defense articles which are either
(i) major defense equipment valued (in terms of its replacement cost less any
depreciation in its value) at $14,000,000 or more, or
(ii) defense articles valued (in terms of their replacement cost less any depreciation in
their value) at $50,000,000 or more, the agreement may not be entered into or renewed if
the Congress, within the 15-day or 30-day period specified in section 2796a (c)(1) or (2)
of this title, as the case may be, enacts a joint resolution prohibiting the proposed lease
or loan.
(2) In the case of an agreement described in paragraph (1) that is entered into with a member
country of the North Atlantic Treaty Organization (NATO) or Australia, Japan, the Republic of
Korea, Israel, or New Zealand, the limitations in paragraph (1) shall apply only if the agreement
involves a lease or loan of—
(A) major defense equipment valued (in terms of its replacement cost less any depreciation
in its value) at $25,000,000 or more; or
(B) defense articles valued (in terms of their replacement cost less any depreciation in their
value) at $100,000,000 or more.
(b) Consideration of resolution
Any joint resolution under subsection (a) of this section shall be considered in the Senate in accordance
with the provisions of section 601(b) of the International Security Assistance and Arms Export Control
Act of 1976.
(c) Highly privileged nature of resolution
For the purpose of expediting the consideration and enactment of joint resolutions under subsection
(a) of this section, a motion to proceed to the consideration of any such joint resolution after it has
been reported by the appropriate committee shall be treated as highly privileged in the House of
Representatives.
(Pub. L. 90–629, ch. 6, § 63, as added Pub. L. 97–113, title I, § 109(a), Dec. 29, 1981, 95 Stat. 1525;
amended Pub. L. 99–247, § 1(d), Feb. 12, 1986, 100 Stat. 9; Pub. L. 104–164, title I, § 141(e)(2), July 21,
1996, 110 Stat. 1433; Pub. L. 107–228, div. B, title XIV, § 1405(a)(3), Sept. 30, 2002, 116 Stat. 1457;
Pub. L. 110–429, title II, § 203(b)(1), Oct. 15, 2008, 122 Stat. 4845; Pub. L. 111–266, title III, § 301(1),
Oct. 8, 2010, 124 Stat. 2804.)
References in Text
The Foreign Assistance Act of 1961, referred to in subsec. (a)(1), is Pub. L. 87–195, Sept. 4, 1961, 75 Stat. 424, as
amended. Chapter 2 of part II of that Act is classified generally to part II (§ 2311 et seq.) of subchapter II of this
chapter. For complete classification of this Act to the Code, see Short Title note set out under section 2151 of this
title and Tables.
Section 601(b) of the International Security Assistance and Arms Export Control Act of 1976, referred to in subsec.
(b), is section 601(b) of Pub. L. 94–329, June 30, 1976, 90 Stat. 765, which made provision for expedited procedures
in the Senate, and was not classified to the Code.
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Amendments
2010—Subsec. (a)(2). Pub. L. 111–266 inserted “Israel,” before “or New Zealand” in introductory provisions.
2008—Subsec. (a)(2). Pub. L. 110–429 inserted “the Republic of Korea,” before “or New Zealand”.
2002—Subsec. (a). Pub. L. 107–228 designated existing provisions as par. (1), substituted “Subject to paragraph (2),
in the case of” for “In the case of”, and added par. (2).
1996—Subsec. (a). Pub. L. 104–164 redesignated par. (1) as entire subsec. (a), substituted “the 15-day or 30-day
period specified in section 2796a (c)(1) or (2) of this title, as the case may be” for “30 calendar days after receiving
the certification with respect to that proposed agreement pursuant to section 2796a (a) of this title”, and struck out par.
(2) which read as follows: “This section shall not apply with respect to a loan or lease to the North Atlantic Treaty
Organization, any member country of that Organization, Japan, Australia, or New Zealand.”
1986—Subsec. (a)(1). Pub. L. 99–247, § 1(d)(1), substituted “enacts a joint resolution prohibiting” for “adopts a
concurrent resolution stating that it objects to”.
Subsec. (b). Pub. L. 99–247, § 1(d)(2), inserted “joint” before “resolution”.
Subsec. (c). Pub. L. 99–247, § 1(d)(3), substituted “enactment of joint resolutions” for “adoption of concurrent
resolutions” and “such joint resolution” for “such resolution”.
Effective Date of 1996 Amendment
Amendment by Pub. L. 104–164 applicable with respect to certifications required to be submitted on or after July 21,
1996, see section 141(f) of Pub. L. 104–164, set out as a note under section 2753 of this title.
.....................................
§ 2796c. Applicability of other statutory provisions
Any reference to sales of defense articles under this chapter in any provision of law restricting the
countries or organizations to which such sales may be made shall be deemed to include a reference
to leases of defense articles under this subchapter.
(Pub. L. 90–629, ch. 6, § 64, as added Pub. L. 97–113, title I, § 109(a), Dec. 29, 1981, 95 Stat. 1526.)
References in Text
This chapter, referred to in text, was in the original “this Act”, meaning Pub. L. 90–629, Oct. 22, 1968, 82 Stat. 1321,
which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note
set out under section 2751 of this title and Tables.
.....................................
§ 2796d. Loan of materials, supplies, and equipment for research and development
purposes
(a) Loan or gift transactions; written agreement; covered programs
(1) Except as provided in subsection (c) of this section, the Secretary of Defense may loan to
a country that is a NATO or major non-NATO ally materials, supplies, or equipment for the
purpose of carrying out a program of cooperative research, development, testing, or evaluation.
The Secretary may accept as a loan or a gift from a country that is a NATO or major non-NATO
ally materials, supplies, or equipment for such purpose.
(2) Each loan or gift transaction entered into by the Secretary under this section shall be provided
for under the terms of a written agreement between the Secretary and the country concerned.
(3) A program of testing or evaluation for which the Secretary may loan materials, supplies, or
equipment under this section includes a program of testing or evaluation conducted solely for the
purpose of standardization, interchangeability, or technical evaluation if the country to which the
materials, supplies, or equipment are loaned agrees to provide the results of the testing or evaluation
to the United States without charge.
(b) Reimbursement of consumed materials, etc.
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The materials, supplies, or equipment loaned to a country under this section may be expended or
otherwise consumed in connection with any testing or evaluation program without a requirement for
reimbursement of the United States if the Secretary—
(1) determines that the success of the research, development, test, or evaluation depends upon
expending or otherwise consuming the materials, supplies, or equipment loaned to the country; and
(2) approves of the expenditure or consumption of such materials, supplies, or equipment.
(c) Prohibitions
The Secretary of Defense may not loan to a country under this section any material if the material is a
strategic and critical material and if, at the time the loan is to be made, the quantity of the material in
the National Defense Stockpile (provided for under section 98b of title 50) is less than the quantity of
such material to be stockpiled, as determined by the President under section 98b (a) of title 50.
(d) “NATO ally” defined
For purposes of this section, the term “NATO ally” means a member country of the North Atlantic
Treaty Organization (other than the United States).
(Pub. L. 90–629, ch. 6, § 65, as added Pub. L. 100–456, div. A, title X, § 1003(a), Sept. 29, 1988, 102
Stat. 2038; amended Pub. L. 102–25, title VII, § 705(d)(2), Apr. 6, 1991, 105 Stat. 120; Pub. L. 104–164,
title I, § 147(a)(3)(B), July 21, 1996, 110 Stat. 1435.)
Amendments
1996—Subsec. (d). Pub. L. 104–164 struck out “or major non-NATO” after “NATO” and “or a foreign country other
than a member nation of NATO designated as a major non-NATO ally under section 2350a (i)(3) of title 10” after
“(other than the United States)”.
1991—Subsec. (d). Pub. L. 102–25 substituted “section 2350a (i)(3) of title 10” for “section 2767a of this title”.
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SUBCHAPTER VII—CONTROL OF MISSILES AND MISSILE EQUIPMENT OR
TECHNOLOGY
.....................................
§ 2797. Licensing
(a) Establishment of list of controlled items
The Secretary of State, in consultation with the Secretary of Defense and the heads of other appropriate
departments and agencies, shall establish and maintain, as part of the United States Munitions List, a
list of all items on the MTCR Annex the export of which is not controlled under section 2405 (l) of
title 50, Appendix.
(b) Referral of license applications
(1) A determination of the Secretary of State to approve a license for the export of an item on the
list established under subsection (a) of this section may be made only after the license application
is referred to the Secretary of Defense.
(2) Within 10 days after a license is issued for the export of an item on the list established under
subsection (a) of this section, the Secretary of State shall provide to the Secretary of Defense and
the Secretary of Commerce the license application and accompanying documents issued to the
applicant, to the extent that the relevant Secretary indicates the need to receive such application
and documents.
(c) Information sharing
The Secretary of State shall establish a procedure for sharing information with appropriate officials
of the intelligence community, as determined by the Director of Central Intelligence, and with
other appropriate Government agencies, that will ensure effective monitoring of transfers of MTCR
equipment or technology and other missile technology.
(d) Exports to space launch vehicle programs
Within 15 days after the issuance of a license (including any brokering license) for the export of
items valued at less than $50,000,000 that are controlled under this chapter pursuant to United States
obligations under the Missile Technology Control Regime and are goods or services that are intended
to support the design, utilization, development, or production of a space launch vehicle system listed
in Category I of the MTCR Annex, the Secretary shall transmit to the Congress a report describing the
licensed export and rationale for approving such export, including the consistency of such export with
United States missile nonproliferation policy. The requirement contained in the preceding sentence
shall not apply to licenses for exports to countries that were members of the MTCR as of April 17, 1987.
(Pub. L. 90–629, ch. 7, § 71, as added Pub. L. 101–510, div. A, title XVII, § 1703, Nov. 5, 1990, 104 Stat.
1745; amended Pub. L. 103–236, title VII, §§ 714(a)(3)–(6), 735(c), Apr. 30, 1994, 108 Stat. 497, 506;
Pub. L. 105–277, div. G, subdiv. A, title XII, § 1225(a)(4)–(7), Oct. 21, 1998, 112 Stat. 2681–773; Pub.
L. 106–280, title VII, § 708(c), Oct. 6, 2000, 114 Stat. 863.)
References in Text
This chapter, referred to in subsec. (d), was in the original “this Act”, meaning Pub. L. 90–629, Oct. 22, 1968, 82 Stat.
1321, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title
note set out under section 2751 of this title and Tables.
Amendments
2000—Subsec. (d). Pub. L. 106–280 substituted “Within 15 days after the issuance of a license (including any
brokering license) for the export of items valued at less than $50,000,000 that are controlled under this chapter pursuant
to United States obligations under the Missile Technology Control Regime and are goods or services that are intended
to support the design, utilization, development, or production of a space launch vehicle system listed in Category I
of the MTCR Annex,” for “Within 15 days after the issuance of a license for the export of items valued at less than
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$14,000,000 that are controlled under this chapter pursuant to United States obligations under the Missile Technology
Control Regime and intended to support the design, development, or production of a space launch vehicle system listed
in Category I of the MTCR Annex,”.
1998—Subsec. (a). Pub. L. 105–277, § 1225(a)(4), struck out “, the Director of the Arms Control and Disarmament
Agency,” after “Secretary of Defense”.
Subsec. (b)(1). Pub. L. 105–277, § 1225(a)(5), struck out “and the Director of the United States Arms Control and
Disarmament Agency” after “Secretary of Defense”.
Subsec. (b)(2). Pub. L. 105–277, § 1225(a)(6), substituted “and the Secretary of Commerce” for “the Secretary of
Commerce, and the Director of the United States Arms Control and Disarmament Agency” and struck out “or the
Director” after “the relevant Secretary”.
Subsec. (c). Pub. L. 105–277, § 1225(a)(7), struck out “with the Director of the United States Arms Control and
Disarmament Agency,” after “Director of Central Intelligence,”.
1994—Subsec. (a). Pub. L. 103–236, § 714(a)(3), inserted “, the Director of the Arms Control and Disarmament
Agency,” after “the Secretary of Defense”.
Subsec. (b)(1). Pub. L. 103–236, § 714(a)(4), inserted “and the Director of the United States Arms Control and
Disarmament Agency” after “Secretary of Defense”.
Subsec. (b)(2). Pub. L. 103–236, § 714(a)(5), substituted “, the Secretary of Commerce, and the Director of the United
States Arms Control and Disarmament Agency” for “and the Secretary of Commerce” and inserted “or the Director”
after “relevant Secretary”.
Subsec. (c). Pub. L. 103–236, § 714(a)(6), inserted “with the Director of the United States Arms Control and
Disarmament Agency,” after “Director of Central Intelligence,”.
Subsec. (d). Pub. L. 103–236, § 735(c), added subsec. (d).
Change of Name
Reference to the Director of Central Intelligence or the Director of the Central Intelligence Agency in the Director’s
capacity as the head of the intelligence community deemed to be a reference to the Director of National Intelligence.
Reference to the Director of Central Intelligence or the Director of the Central Intelligence Agency in the Director’s
capacity as the head of the Central Intelligence Agency deemed to be a reference to the Director of the Central
Intelligence Agency. See section 1081(a), (b) of Pub. L. 108–458, set out as a note under section 401 of Title 50, War
and National Defense.
Effective Date of 1998 Amendment
Amendment by Pub. L. 105–277 effective Apr. 1, 1999, see section 1201 of Pub. L. 105–277, set out as an Effective
Date note under section 6511 of this title.
Delegation of Functions
Memorandum of President of the United States, June 25, 1991, 56 F.R. 31041, which provided for delegation of certain
functions of the President, was superseded by Ex. Ord. No. 12851, § 7, June 11, 1993, 58 F.R. 33181, set out below.
Policy and Sense of Congress on Nonproliferation of Ballistic Missiles
Pub. L. 108–375, div. A, title XII, § 1212, Oct. 28, 2004, 118 Stat. 2087, provided that:
“(a) Findings.—Congress makes the following findings:
“(1) Certain countries are seeking to acquire ballistic missiles and related technologies that could be used to attack
the United States or place at risk United States interests, deployed members of the Armed Forces, and allies of the
United States and other friendly foreign countries.
“(2) Certain countries continue to actively transfer or sell ballistic missile technologies in contravention of standards
of behavior established by the United States and allies of the United States and other friendly foreign countries.
“(3) The spread of ballistic missiles and related technologies worldwide has been slowed by a combination of national
and international export controls, forward-looking diplomacy, and multilateral interdiction activities to restrict the
development and transfer of such missiles and technologies.
“(b) Policy.—It is the policy of the United States to develop, support, and strengthen international accords and other
cooperative efforts to curtail the proliferation of ballistic missiles and related technologies which could threaten the
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territory of the United States, allies of the United States and other friendly foreign countries, and deployed members
of the Armed Forces of the United States with weapons of mass destruction.
“(c) Sense of Congress.—It is the sense of Congress that—
“(1) the United States should vigorously pursue foreign policy initiatives aimed at eliminating, reducing, or retarding
the proliferation of ballistic missiles and related technologies; and
“(2) the United States and the international community should continue to support and strengthen established
international accords and other cooperative efforts, including United Nations Security Council Resolution 1540 (April
28, 2004) and the Missile Technology Control Regime, that are designed to eliminate, reduce, or retard the proliferation
of ballistic missiles and related technologies.”
MTCR Report Transmittals
Pub. L. 106–280, title VII, § 704, Oct. 6, 2000, 114 Stat. 861, provided that: “For purposes of section 71(d) of the
Arms Export Control Act (22 U.S.C. 2797 (d)), the requirement that reports under that section shall be transmitted
to the Congress shall be considered to be a requirement that such reports shall be transmitted to the Committee on
International Relations [now Committee on Foreign Affairs] of the House of Representatives and the Committee on
Foreign Relations and the Committee on Banking, Housing and Urban Affairs of the Senate.”
Report on Missile Proliferation
Section 1704 of Pub. L. 101–510 directed President to submit to Congress reports on international transfers of
aircraft which the Secretary had reason to believe may be intended to be used for delivery of nuclear, biological, or
chemical weapons and international transfers of MTCR equipment or technology to any country seeking to acquire
such equipment or technology, and which provided for contents of reports, countries excluded from such reports,
classification of information, and definitions, prior to repeal by Pub. L. 102–190, div. A, title X, § 1097(g), Dec. 5,
1991, 105 Stat. 1491.
Ex. Ord. No. 12851. Administration of Proliferation Sanctions, Middle East Arms
Control, and Related Congressional Reporting Responsibilities
Ex. Ord. No. 12851, June 11, 1993, 58 F.R. 33181, provided:
By the authority vested in me as President by the Constitution and the laws of the United States of America, including
section 301 of title 3, United States Code; sections 1701–1703 of the National Defense Authorization Act for Fiscal
Year 1991, Public Law 101–510 (50 App. U.S.C. 2402 note , 2405, 2410b; 22 U.S.C. 2797–2797c); sections 303, 324
[105 Stat. 708, 711], and 401–405 [22 U.S.C. 2778 note ] of the Foreign Relations Authorization Act, Fiscal Years
1992 and 1993, Public Law 102–138; sections 305–308 of the Chemical and Biological Weapons Control and Warfare
Elimination Act of 1991, Public Law 102–182 (50 App. U.S.C. 2410c; 22 U.S.C. 2798, 5604–5606); sections 241 [105
Stat. 1326] and 1097 [former 22 U.S.C. 2751 note ] of the National Defense Authorization Act for Fiscal Years 1992
and 1993, Public Law 102–190; and section 1364 of the National Defense Authorization Act for Fiscal Year 1993,
Public Law 102–484 [106 Stat. 2561], I hereby order as follows:
Section 1. Chemical and Biological Weapons Proliferation and Use Sanctions. (a) Chemical and Biological Weapons
Proliferation. The authority and duties vested in me by section 81 of the Arms Export Control Act, as amended
(“AECA”) (22 U.S.C. 2798), and section 11C of the Export Administration Act of 1979, as amended (“EAA”) (50
App. U.S.C. 2410c), are delegated to the Secretary of State, except that:
(1) The authority and duties vested in me to deny certain United States Government contracts, as provided in section
81(c)(1)(A) of the AECA and section 11C(c)(1)(A) of the EAA, pursuant to a determination made by the Secretary
of State under section 81(a)(1) of the AECA or section 11C(a)(1) of the EAA, as well as the authority and duties
vested in me to make the determinations provided for in section 81(c)(2) of the AECA and section 11C(c)(2) of the
EAA are delegated to the Secretary of Defense. The Secretary of Defense shall notify the Secretary of the Treasury of
determinations made pursuant to section 81(c)(2) of the AECA and section 11 (c)(2) [11C(c)(2)] of the EAA.
(2) The authority and duties vested in me to prohibit certain imports as provided in section 81(c)(1)(B) of the AECA
and section 11C(c)(1)(B) of the EAA, pursuant to a determination made by the Secretary of State under section 81(a)(1)
of the AECA or section 11C(a)(1) of the EAA, and the obligation to implement the exceptions provided in section
81(c)(2) of the AECA and section 11C(c)(2) of the EAA, insofar as the exceptions affect imports of goods into the
United States, are delegated to the Secretary of the Treasury.
(b) Chemical and Biological Weapons Use. The authority and duties vested in me by sections 306–308 of the Chemical
and Biological Weapons Control and Warfare Elimination Act of 1991 (22 U.S.C. 5604–5606) are delegated to the
Secretary of State, except that:
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(1) The authority and duties vested in me to restrict certain imports as provided in section 307 (b)(2)(D) [22 U.S.C.
5605 (b)(2)(D)], pursuant to a determination made by the Secretary of State under section 307 (b)(1), are delegated
to the Secretary of the Treasury.
(2) The Secretary of State shall issue, transmit to the Congress, and notify the Secretary of the Treasury of, as
appropriate, waivers based upon findings made pursuant to section 307 (d)(1)(A)(ii).
(3) The authority and duties vested in me to prohibit certain exports as provided in section 307 (a)(5) and section 307
(b)(2)(C), pursuant to a determination made by the Secretary of State under section 306 (a)(1) and section 307 (b)(1),
are delegated to the Secretary of Commerce.
(c) Coordination Among Agencies. The Secretaries designated in this section shall exercise all functions delegated to
them by this section in consultation with the Secretary of State, the Secretary of Defense, the Secretary of the Treasury,
the Secretary of Commerce, the Director of the Arms Control and Disarmament Agency, and other departments
and agencies as appropriate, utilizing the appropriate interagency groups prior to any determination to exercise the
prohibition authority delegated hereby.
Sec. 2. Missile Proliferation Sanctions. (a) Arms Export Control Act. The authority and duties vested in me by sections
72–73 of the AECA (22 U.S.C. 2797a–2797b) are delegated to the Secretary of State, except that:
(1) The authority and duties vested in me by section 72 (a)(1) to make determinations with respect to violations by
United States persons of the EAA [50 App. U.S.C. 2401 et seq.] are delegated to the Secretary of Commerce.
(2) The authority and duties vested in me to deny certain United States Government contracts as provided in sections
73 (a)(2)(A)(i) and 73 (a)(2)(B)(i), pursuant to a determination made by the Secretary of State under section 73 (a)(1),
as well as the authority and duties vested in me to make the findings provided in sections 72 (c), 73 (f), and 73 (g)(1),
are delegated to the Secretary of Defense. The Secretary of State shall issue, transmit to the Congress, and notify the
Secretary of the Treasury of, as appropriate, any waivers based upon findings made pursuant to sections 72 (c) and
73 (f).
(3) The authority and duties vested in me to prohibit certain imports as provided in section 73 (a)(2)(C), pursuant to
a determination made by the Secretary of State under that section, and the obligation to implement the exceptions
provided in section 73 (g), are delegated to the Secretary of the Treasury.
(b) Export Administration Act. The authority and duties vested in me by section 11B of the EAA (50 App. U.S.C.
2410b) are delegated to the Secretary of Commerce, except that:
(1) The authority and duties vested in me by sections 11B (a)(1)(A) (insofar as such section authorizes determinations
with respect to violations by United States persons of the AECA [22 U.S.C. 2751 et seq.]), 11B(b)(1) (insofar as
such section authorizes determinations regarding activities by foreign persons), and 11B(b)(5) are delegated to the
Secretary of State.
(2) The authority and duties vested in me to make the findings provided in sections 11B (a)(3), 11B (b)(6), and 11B
(b)(7)(A) are delegated to the Secretary of Defense. The Secretary of Commerce shall issue, transmit to the Congress,
and notify the Secretary of the Treasury of, as appropriate, waivers based upon findings made pursuant to section 11B
(a)(3). The Secretary of State shall issue, transmit to the Congress, and notify the Secretary of the Treasury of, as
appropriate, waivers based upon findings made pursuant to section 11B (b)(6).
(3) The authority and duties vested in me to prohibit certain imports as provided in section 11B (b)(1), pursuant to a
determination by the Secretary of State under that section, and the obligation to implement the exceptions provided in
section 11B (b)(7), are delegated to the Secretary of the Treasury.
(c) Reporting Requirements. The authority and duties vested in me to make certain reports to the Congress as provided
in section 1097 of the National Defense Authorization Act for Fiscal Years 1992 and 1993 [former 22 U.S.C. 2751
note ] and section 1364 of the National Defense Authorization Act for Fiscal Year 1993 [Pub. L. 102–484, 106 Stat.
2561] are delegated to the Secretary of State.
(d) Coordination Among Agencies. The Secretaries designated in this section shall exercise all functions delegated to
them by this section in consultation with the Secretary of State, the Secretary of Defense, the Secretary of the Treasury,
the Secretary of Commerce, the Director of the Arms Control and Disarmament Agency, and other departments and
agencies as appropriate, utilizing the appropriate interagency groups prior to any determination to exercise prohibition
authority delegated hereby.
Sec. 3. Arms Control in the Middle East. The certification and reporting functions vested in me by sections 403 and
404 of the Foreign Relations Authorization Act, Fiscal Years 1992 and 1993 [22 U.S.C. 2778 note ], are delegated
to the Secretary of State. The Secretary of State shall exercise these functions in consultation with the Secretary of
Defense and other agencies as appropriate.
Sec. 4. China and Weapons Proliferation. The reporting functions regarding China and weapons proliferation vested
in me by sections 303(a)(2) and 324 of the Foreign Relations Authorization Act, Fiscal Years 1992 and 1993 [Pub.
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L. 102–138, 105 Stat. 709, 711], are delegated to the Secretary of State. The Secretary of State shall exercise these
functions in consultation with the Secretary of Defense and other agencies as appropriate.
Sec. 5. Arrow Tactical Anti-Missile Program. The authority and duties vested in me to make certain certifications as
provided by section 241(b)(3)(C) of the National Defense Authorization Act for Fiscal Years 1992 and 1993 [Pub. L.
102–190, 105 Stat. 1327] are delegated to the Secretary of State.
Sec. 6. Delegations. The functions delegated herein may be redelegated as appropriate. Regulations necessary to carry
out the functions delegated herein may be issued as appropriate.
Sec. 7. Priority. This order supercedes the Memorandum of the President, “Delegation of Authority Regarding Missile
Technology Proliferation,” June 25, 1991. To the extent that this order is inconsistent with any provisions of any prior
Executive order or Presidential memorandum, this order shall control.
William J. Clinton.
[For abolition, transfer of functions, and treatment of references to United States Arms Control and Disarmament
Agency, see section 6511 et seq. of this title.]
.....................................
§ 2797a. Denial of transfer of missile equipment or technology by United States persons
(a) Sanctions
(1) If the President determines that a United States person knowingly—
(A) exports, transfers, or otherwise engages in the trade of any item on the MTCR Annex,
in violation of the provisions of section 2778 of this title, section 2404 or 2405 of title 50,
Appendix, or any regulations or orders issued under any such provisions,
(B) conspires to or attempts to engage in such export, transfer, or trade, or
(C) facilitates such export, transfer, or trade by any other person,
then the President shall impose the applicable sanctions described in paragraph (2).
(2) The sanctions which apply to a United States person under paragraph (1) are the following:
(A) If the item on the MTCR Annex involved in the export, transfer, or trade is missile
equipment or technology within category II of the MTCR Annex, then the President shall deny
to such United States person for a period of 2 years—
(i) United States Government contracts relating to missile equipment or technology; and
(ii) licenses for the transfer of missile equipment or technology controlled under this
chapter.
(B) If the item on the MTCR Annex involved in the export, transfer, or trade is missile
equipment or technology within category I of the MTCR, then the President shall deny to such
United States person for a period of not less than 2 years—
(i) all United States Government contracts, and
(ii) all export licenses and agreements for items on the United States Munitions List.
(b) Discretionary sanctions
In the case of any determination made pursuant to subsection (a) of this section, the President may
pursue any penalty provided in section 2778 (c) of this title.
(c) Presumption
In determining whether to apply sanctions under subsection (a) of this section to a United States person
involved in the export, transfer, or trade of an item on the MTCR Annex, it should be a rebuttable
presumption that such item is designed for use in a missile listed in the MTCR Annex if the President
determines that the final destination of the item is a country the government of which the Secretary of
State has determined, for purposes of 2405(j)(1)(A) 1 of title 50, Appendix, has repeatedly provided
support for acts of international terrorism.
(d) Waiver
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The President may waive the imposition of sanctions under subsection (a) of this section with respect
to a product or service if the President certifies to the Congress that—
(1) the product or service is essential to the national security of the United States; and
(2) such person is a sole source supplier of the product or service, the product or service is not
available from any alternative reliable supplier, and the need for the product or service cannot be
met in a timely manner by improved manufacturing processes or technological developments.
Footnotes
1 So in original. Probably should be preceded by “section”.
(Pub. L. 90–629, ch. 7, § 72, as added Pub. L. 101–510, div. A, title XVII, § 1703, Nov. 5, 1990, 104 Stat.
1745; amended Pub. L. 103–236, title VII, § 734(a), Apr. 30, 1994, 108 Stat. 505.)
References in Text
This chapter, referred to in subsec. (a)(2)(A)(ii), was in the original “this Act”, meaning Pub. L. 90–629, Oct. 22, 1968,
82 Stat. 1321, which is classified principally to this chapter. For complete classification of this Act to the Code, see
Short Title note set out under section 2751 of this title and Tables.
Amendments
1994—Subsecs. (c), (d). Pub. L. 103–236 added subsec. (c) and redesignated former subsec. (c) as (d).
Delegation of Functions
For delegation of certain functions of the President under this section, see Ex. Ord. No. 12851, § 2(a), June 11, 1993,
58 F.R. 33181, set out as a note under section 2797 of this title.
.....................................
§ 2797b. Transfers of missile equipment or technology by foreign persons
(a) Sanctions
(1) Subject to subsections (c) through (g) 1 of this section, if the President determines that a foreign
person, after November 5, 1990, knowingly—
(A) exports, transfers, or otherwise engages in the trade of any MTCR equipment or
technology that contributes to the acquisition, design, development, or production of missiles
in a country that is not an MTCR adherent and would be, if it were United States-origin
equipment or technology, subject to the jurisdiction of the United States under this chapter,
(B) conspires to or attempts to engage in such export, transfer, or trade, or
(C) facilitates such export, transfer, or trade by any other person,
or if the President has made a determination with respect to a foreign person under section 2410b
(b)(1) of title 50, Appendix, then the President shall impose on that foreign person the applicable
sanctions under paragraph (2).
(2) The sanctions which apply to a foreign person under paragraph (1) are the following:
(A) If the item involved in the export, transfer, or trade is within category II of the MTCR
Annex, then the President shall deny, for a period of 2 years—
(i) United States Government contracts relating to missile equipment or technology; and
(ii) licenses for the transfer to such foreign person of missile equipment or technology
controlled under this chapter.
(B) If the item involved in the export, transfer, or trade is within category I of the MTCR
Annex, then the President shall deny, for a period of not less than 2 years—
(i) all United States Government contracts with such foreign person; and
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(ii) licenses for the transfer to such foreign person of all items on the United States
Munitions List.
(C) If, in addition to actions taken under subparagraphs (A) and (B), the President determines
that the export, transfer, or trade has substantially contributed to the design, development, or
production of missiles in a country that is not an MTCR adherent, then the President shall
prohibit, for a period of not less than 2 years, the importation into the United States of products
produced by that foreign person.
(b) Inapplicability with respect to MTCR adherents
(1) In general
Except as provided in paragraph (2), subsection (a) of this section does not apply with respect to—
(A) any export, transfer, or trading activity that is authorized by the laws of an MTCR
adherent, if such authorization is not obtained by misrepresentation or fraud; or
(B) any export, transfer, or trade of an item to an end user in a country that is an MTCR
adherent.
(2) Limitation
Notwithstanding paragraph (1), subsection (a) of this section shall apply to an entity subordinate to
a government that engages in exports or transfers described in section 2295a (b)(3)(A) of this title.
(c) Effect of enforcement actions by MTCR adherents
Sanctions set forth in subsection (a) of this section may not be imposed under this section on a person
with respect to acts described in such subsection or, if such sanctions are in effect against a person
on account of such acts, such sanctions shall be terminated, if an MTCR adherent is taking judicial or
other enforcement action against that person with respect to such acts, or that person has been found
by the government of an MTCR adherent to be innocent of wrongdoing with respect to such acts, and
if the President certifies to the Committee on Foreign Relations of the Senate and the Committee on
International Relations of the House of Representatives that—
(1) for any judicial or other enforcement action taken by the MTCR adherent, such action has—
(A) been comprehensive; and
(B) been performed to the satisfaction of the United States; and
(2) with respect to any finding of innocence of wrongdoing, the United States is satisfied with
the basis for such finding.
(d) Advisory opinions
The Secretary of State, in consultation with the Secretary of Defense and the Secretary of Commerce,
may, upon the request of any person, issue an advisory opinion to that person as to whether a proposed
activity by that person would subject that person to sanctions under this section. Any person who relies
in good faith on such an advisory opinion which states that the proposed activity would not subject
a person to such sanctions, and any person who thereafter engages in such activity, may not be made
subject to such sanctions on account of such activity.
(e) Waiver and report to Congress
(1) In any case other than one in which an advisory opinion has been issued under subsection (d)
of this section stating that a proposed activity would not subject a person to sanctions under this
section, the President may waive the application of subsection (a) of this section to a foreign person
if the President determines that such waiver is essential to the national security of the United States.
(2) In the event that the President decides to apply the waiver described in paragraph (1),
the President shall so notify the Committee on Armed Services and the Committee on Foreign
Relations of the Senate and the Committee on National Security and the Committee on
International Relations of the House of Representatives not less than 45 working days before
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issuing the waiver. Such notification shall include a report fully articulating the rationale and
circumstances which led the President to apply the waiver.
(f) Presumption
In determining whether to apply sanctions under subsection (a) of this section to a foreign person
involved in the export, transfer, or trade of an item on the MTCR Annex, it should be a rebuttable
presumption that such item is designed for use in a missile listed in the MTCR Annex if the President
determines that the final destination of the item is a country the government of which the Secretary of
State has determined, for purposes of 2405(j)(1)(A) 2 of title 50, Appendix, has repeatedly provided
support for acts of international terrorism.
(g) Additional waiver
The President may waive the imposition of sanctions under paragraph (1) on a person with respect to
a product or service if the President certifies to the Congress that—
(1) the product or service is essential to the national security of the United States; and
(2) such person is a sole source supplier of the product or service, the product or service is not
available from any alternative reliable supplier, and the need for the product or service cannot be
met in a timely manner by improved manufacturing processes or technological developments.
(h) Exceptions
The President shall not apply the sanction under this section prohibiting the importation of the products
of a foreign person—
(1) in the case of procurement of defense articles or defense services—
(A) under existing contracts or subcontracts, including the exercise of options for production
quantities to satisfy requirements essential to the national security of the United States;
(B) if the President determines that the person to which the sanctions would be applied is a
sole source supplier of the defense articles and services, that the defense articles or services
are essential to the national security of the United States, and that alternative sources are not
readily or reasonably available; or
(C) if the President determines that such articles or services are essential to the national
security of the United States under defense coproduction agreements or NATO Programs of
Cooperation;
(2) to products or services provided under contracts entered into before the date on which the
President publishes his intention to impose the sanctions; or
(3) to—
(A) spare parts,
(B) component parts, but not finished products, essential to United States products or
production,
(C) routine services and maintenance of products, to the extent that alternative sources are
not readily or reasonably available, or
(D) information and technology essential to United States products or production.
Footnotes
1 See References in Text note below.
2 So in original. Probably should be preceded by “section”.
(Pub. L. 90–629, ch. 7, § 73, as added Pub. L. 101–510, div. A, title XVII, § 1703, Nov. 5, 1990, 104
Stat. 1746; amended Pub. L. 102–138, title III, § 323(a), Oct. 28, 1991, 105 Stat. 711; Pub. L. 103–236,
title VII, §§ 714(a)(7), 734 (b), Apr. 30, 1994, 108 Stat. 497, 505; Pub. L. 104–106, div. A, title XIV, §
1408(d), Feb. 10, 1996, 110 Stat. 494; Pub. L. 105–277, div. G, subdiv. A, title XII, § 1225(a)(8), Oct.
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21, 1998, 112 Stat. 2681–773; Pub. L. 106–113, div. B, § 1000(a)(7) [div. B, title XI, § 1136(b), (c)],
Nov. 29, 1999, 113 Stat. 1536, 1501A–495.)
References in Text
Subsections (f) and (g) of this section, referred to in subsec. (a)(1), were redesignated subsecs. (g) and (h), respectively,
by Pub. L. 103–236, title VII, § 734(b)(1), Apr. 30, 1994, 108 Stat. 505.
This chapter, referred to in subsec. (a)(1)(A), (2)(A)(ii), was in the original “this Act”, meaning Pub. L. 90–629, Oct.
22, 1968, 82 Stat. 1321, which is classified principally to this chapter. For complete classification of this Act to the
Code, see Short Title note set out under section 2751 of this title and Tables.
Amendments
1999—Subsec. (b). Pub. L. 106–113, § 1000(a)(7) [title XI, § 1136(b)], designated existing provisions as par. (1),
inserted par. heading, in introductory provisions, substituted “Except as provided in paragraph (2), subsection (a)” for
“Subsection (a)”, redesignated former pars. (1) and (2) as subpars. (A) and (B), respectively, and added par. (2).
Subsec. (c). Pub. L. 106–113, § 1000(a)(7) [title XI, § 1136(c)], inserted before period at end “, and if the President
certifies to the Committee on Foreign Relations of the Senate and the Committee on International Relations of the
House of Representatives that—
“(1) for any judicial or other enforcement action taken by the MTCR adherent, such action has—
“(A) been comprehensive; and
“(B) been performed to the satisfaction of the United States; and
“(2) with respect to any finding of innocence of wrongdoing, the United States is satisfied with the basis for such
finding”.
1998—Subsec. (d). Pub. L. 105–277 substituted “and the Secretary of Commerce” for “, the Secretary of Commerce,
and the Director of the United States Arms Control and Disarmament Agency”.
1996—Subsec. (e)(2). Pub. L. 104–106 substituted “the Committee on Armed Services and the Committee on Foreign
Relations of the Senate and the Committee on National Security and the Committee on International Relations of the
House of Representatives” for “the Congress” and “45 working days” for “20 working days”.
1994—Subsec. (d). Pub. L. 103–236, § 714(a)(7), substituted “, the Secretary of Commerce, and the Director of the
United States Arms Control and Disarmament Agency,” for “and the Secretary of Commerce,”.
Subsecs. (f) to (h). Pub. L. 103–236, § 734(b), added subsec. (f) and redesignated former subsecs. (f) and (g) as (g)
and (h), respectively.
1991—Subsec. (a)(1)(A). Pub. L. 102–138 inserted “acquisition,” before “design,”.
Change of Name
Committee on National Security of House of Representatives changed to Committee on Armed Services of House of
Representatives by House Resolution No. 5, One Hundred Sixth Congress, Jan. 6, 1999.
Committee on International Relations of House of Representatives changed to Committee on Foreign Affairs of House
of Representatives by House Resolution No. 6, One Hundred Tenth Congress, Jan. 5, 2007.
Effective Date of 1998 Amendment
Amendment by Pub. L. 105–277 effective Apr. 1, 1999, see section 1201 of Pub. L. 105–277, set out as an Effective
Date note under section 6511 of this title.
Delegation of Functions
For delegation of certain functions of the President under this section, see Ex. Ord. No. 12851, § 2(a), June 11, 1993,
58 F.R. 33181, set out as a note under section 2797 of this title.
Space Cooperation With Russian Persons
Pub. L. 106–280, title VII, § 708, Oct. 6, 2000, 114 Stat. 862, as amended by Pub. L. 109–112, § 4(e)(2), Nov. 22,
2005, 119 Stat. 2370, provided that:
“(a) Annual Certification.—
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“(1) Requirement.—The President shall submit each year to the appropriate committees of Congress [Committee on
Foreign Relations of the Senate and Committee on Foreign Affairs of the House of Representatives], with respect to
each Russian person described in paragraph (2), a certification that the reports required to be submitted to Congress
during the preceding calendar year under section 2 of the Iran and Syria Nonproliferation Act (Public Law 106–178)
[now Iran, North Korea, and Syria Nonproliferation Act] [50 U.S.C. 1701 note ] do not identify that person on account
of a transfer to Iran of goods, services, or technology described in section 2(a)(1)(B) of such Act.
“(2) Applicability.—The certification requirement under paragraph (1) applies with respect to each Russian person that,
as of the date of the certification, is a party to an agreement relating to commercial cooperation on MTCR equipment
or technology with a United States person pursuant to an arms export license that was issued at any time since January
1, 2000.
“(3) Exemption.—No activity or transfer which specifically has been the subject of a Presidential determination
pursuant to section 5(a)(1), (2), or (3) of the Iran and Syria Nonproliferation Act (Public Law 106–178) [now Iran,
North Korea, and Syria Nonproliferation Act] [50 U.S.C. 1701 note ] shall cause a Russian person to be considered
as having been identified in the reports submitted during the preceding calendar year under section 2 of that Act for
the purposes of the certification required under paragraph (1).
“(4) Commencement and termination of requirement.—
“(A) Times for submission.—The President shall submit—
“(i) the first certification under paragraph (1) not later than 60 days after the date of the enactment of this Act [Oct.
6, 2000]; and
“(ii) each annual certification thereafter on the anniversary of the first submission.
“(B) Termination of requirement.—No certification is required under paragraph (1) after termination of cooperation
under the specific license, or 5 years after the date on which the first certification is submitted, whichever is the earlier
date.
“(b) Termination of Existing Licenses.—If, at any time after the issuance of a license under section 36(c) of the Arms
Export Control Act [22 U.S.C. 2776 (c)] relating to the use, development, or co-production of commercial rocket
engine technology with a foreign person, the President determines that the foreign person has engaged in any action
described in section 73(a)(1) of the Arms Export Control Act (22 U.S.C. 2797b (a)(1)) since the date the license was
issued, the President may terminate the license.
“(c) Report on Export Licensing of MTCR Items Under $50,000,000.—[Amended section 2797 of this title.]
“(d) Definitions.—In this section:
“(1) Foreign person.—The term ‘foreign person’ has the meaning given the term in section 74(7) of the Arms Export
Control Act (22 U.S.C. 2797c (7)).
“(2) MTCR equipment or technology.—The term ‘MTCR equipment or technology’ has the meaning given the term
in section 74(5) of the Arms Export Control Act (22 U.S.C. 2797c (5)).
“(3) Person.—The term ‘person’ has the meaning given the term in section 74(8) of the Arms Export Control Act
(22 U.S.C. 2797c (8)).
“(4) United states person.—The term ‘United States person’ has the meaning given the term in section 74(6) of the
Arms Export Control Act (22 U.S.C. 2797c (6)).”
.....................................
§ 2797b–1. Notification of admittance of MTCR adherents
(a) Policy report
Following any action by the United States that results in a country becoming a MTCR adherent, the
President shall transmit promptly to the Congress a report which describes the rationale for such action,
together with an assessment of that country’s nonproliferation policies, practices, and commitments.
Such report shall also include the text of any agreements or understandings between the United States
and such country regarding the terms and conditions of the country’s adherence to the MTCR.
(b) Intelligence assessment report
At such times that a report is transmitted pursuant to subsection (a) of this section, the Director of
Central Intelligence shall promptly prepare and submit to the Congress a separate report containing any
credible information indicating that the country described in subsection (a) of this section has engaged
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in any activity identified under subparagraph (A), (B), or (C) of section 2797b (a)(1) of this title within
the previous two years.
(Pub. L. 90–629, ch. 7, § 73A, as added Pub. L. 103–236, title VII, § 735(d), Apr. 30, 1994, 108 Stat.
506; amended Pub. L. 106–113, div. B, § 1000(a)(7) [div. B, title XI, § 1136(d)], Nov. 29, 1999, 113 Stat.
1536, 1501A–496.)
Amendments
1999—Pub. L. 106–113 designated existing provisions as subsec. (a), inserted heading, and added subsec. (b).
Change of Name
Reference to the Director of Central Intelligence or the Director of the Central Intelligence Agency in the Director’s
capacity as the head of the intelligence community deemed to be a reference to the Director of National Intelligence.
Reference to the Director of Central Intelligence or the Director of the Central Intelligence Agency in the Director’s
capacity as the head of the Central Intelligence Agency deemed to be a reference to the Director of the Central
Intelligence Agency. See section 1081(a), (b) of Pub. L. 108–458, set out as a note under section 401 of Title 50, War
and National Defense.
Delegation of Functions
Functions of President under this section delegated to Secretary of State by Memorandum of President of the United
States, July 26, 1994, 59 F.R. 40205, set out as a note under section 2370a of this title.
.....................................
§ 2797b–2. Authority relating to MTCR adherents
Notwithstanding section 2797b (b) of this title, the President may take the actions under section
2797b (a)(2) of this title under the circumstances described in section 2797c (b)(2) of this title.
(Pub. L. 90–629, ch. 7, § 73B, as added Pub. L. 106–113, div. B, § 1000(a)(7) [div. B, title XI, § 1137],
Nov. 29, 1999, 113 Stat. 1536, 1501A–496).
.....................................
§ 2797c. Definitions
(a) In general
For purposes of this subchapter—
(1) the term “missile” means a category I system as defined in the MTCR Annex, and any other
unmanned delivery system of similar capability, as well as the specially designed production
facilities for these systems;
(2) the term “Missile Technology Control Regime” or “MTCR” means the policy statement,
between the United States, the United Kingdom, the Federal Republic of Germany, France, Italy,
Canada, and Japan, announced on April 16, 1987, to restrict sensitive missile-relevant transfers
based on the MTCR Annex, and any amendments thereto;
(3) the term “MTCR adherent” means a country that participates in the MTCR or that, pursuant
to an international understanding to which the United States is a party, controls MTCR equipment
or technology in accordance with the criteria and standards set forth in the MTCR;
(4) the term “MTCR Annex” means the Guidelines and Equipment and Technology Annex of the
MTCR, and any amendments thereto;
(5) the terms “missile equipment or technology” and “MTCR equipment or technology” mean
those items listed in category I or category II of the MTCR Annex;
(6) the term “United States person” has the meaning given that term in section 2415 (2) of title
50, Appendix;
(7) the term “foreign person” means any person other than a United States person;
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OR BIOLOGICAL WEAPONS PROLIFERATION
NB: This unofficial compilation of the U.S. Code is current as of Jan. 4, 2012 (see http://www.law.cornell.edu/uscode/uscprint.html).
(8) (A) the term “person” means a natural person as well as a corporation, business association,
partnership, society, trust, any other nongovernmental entity, organization, or group, and any
governmental entity operating as a business enterprise, and any successor of any such entity;
and
(B) in the case of countries with non-market economies (excluding former members of the
Warsaw Pact), the term “person” means—
(i) all activities of that government relating to the development or production of any
missile equipment or technology; and
(ii) all activities of that government affecting the development or production of
electronics, space systems or equipment, and military aircraft; and
(9) the term “otherwise engaged in the trade of” means, with respect to a particular export or
transfer, to be a freight forwarder or designated exporting agent, or a consignee or end user of the
item to be exported or transferred.
(b) International understanding defined
For purposes of subsection (a)(3) of this section, as it relates to any international understanding
concluded with the United States after January 1, 2000, the term “international understanding” means—
(1) any specific agreement by a country not to export, transfer, or otherwise engage in the trade of
any MTCR equipment or technology that contributes to the acquisition, design, development, or
production of missiles in a country that is not an MTCR adherent and would be, if it were United
States-origin equipment or technology, subject to the jurisdiction of the United States under this
chapter; or
(2) any specific understanding by a country that, notwithstanding section 2797b (b) of this title, the
United States retains the right to take the actions under section 2797b (a)(2) of this title in the case
of any export or transfer of any MTCR equipment or technology that contributes to the acquisition,
design, development, or production of missiles in a country that is not an MTCR adherent and
would be, if it were United States-origin equipment or technology, subject to the jurisdiction of
the United States under this chapter.
(Pub. L. 90–629, ch. 7, § 74, as added Pub. L. 101–510, div. A, title XVII, § 1703, Nov. 5, 1990, 104 Stat.
1748; amended Pub. L. 102–138, title III, § 323(b), (c), Oct. 28, 1991, 105 Stat. 711; Pub. L. 106–113,
div. B, § 1000(a)(7) [div. B, title XI, § 1136(a)], Nov. 29, 1999, 113 Stat. 1536, 1501A–495.)
References in Text
This chapter, referred to in subsec. (b), was in the original “this Act”, meaning Pub. L. 90–629, Oct. 22, 1968, 82 Stat.
1321, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title
note set out under section 2751 of this title and Tables.
Amendments
1999—Pub. L. 106–113 designated existing provisions as subsec. (a), inserted heading, and added subsec. (b).
1991—Par. (8)(B). Pub. L. 102–138, § 323(b), substituted “countries with non-market economies (excluding former
members of the Warsaw Pact)” for “countries where it may be impossible to identify a specific governmental entity
referred to in subparagraph (A)”.
Par. (8)(B)(ii). Pub. L. 102–138, § 323(c), substituted “electronics, space systems or equipment, and military aircraft”
for “aircraft, electronics, and space systems or equipment”.
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NB: This unofficial compilation of the U.S. Code is current as of Jan. 4, 2012 (see http://www.law.cornell.edu/uscode/uscprint.html).
SUBCHAPTER VIII—CHEMICAL OR BIOLOGICAL WEAPONS PROLIFERATION
.....................................
§ 2798. Sanctions against certain foreign persons
(a) Imposition of sanctions
(1) Determination by the President
Except as provided in subsection (b)(2) of this section, the President shall impose both of the
sanctions described in subsection (c) of this section if the President determines that a foreign
person, on or after October 28, 1991, has knowingly and materially contributed—
(A) through the export from the United States of any goods or technology that are subject to
the jurisdiction of the United States,
(B) through the export from any other country of any goods or technology that would be, if
they were United States goods or technology, subject to the jurisdiction of the United States, or
(C) through any other transaction not subject to sanctions pursuant to the Export
Administration Act of 1979 [50 App. U.S.C. 2401 et seq.],
to the efforts by any foreign country, project, or entity described in paragraph (2) to use, develop,
produce, stockpile, or otherwise acquire chemical or biological weapons.
(2) Countries, projects, or entities receiving assistance
Paragraph (1) applies in the case of—
(A) any foreign country that the President determines has, at any time after January 1, 1980—
(i) used chemical or biological weapons in violation of international law;
(ii) used lethal chemical or biological weapons against its own nationals; or
(iii) made substantial preparations to engage in the activities described in clause (i) or (ii);
(B) any foreign country whose government is determined for purposes of section 6(j) of the
Export Administration Act of 1979 [50 App. U.S.C. 2405 (j)] to be a government that has
repeatedly provided support for acts of international terrorism; or
(C) any other foreign country, project, or entity designated by the President for purposes of
this section.
(3) Persons against whom sanctions are to be imposed
Sanctions shall be imposed pursuant to paragraph (1) on—
(A) the foreign person with respect to which the President makes the determination described
in that paragraph;
(B) any successor entity to that foreign person;
(C) any foreign person that is a parent or subsidiary of that foreign person if that parent or
subsidiary knowingly assisted in the activities which were the basis of that determination; and
(D) any foreign person that is an affiliate of that foreign person if that affiliate knowingly
assisted in the activities which were the basis of that determination and if that affiliate is
controlled in fact by that foreign person.
(b) Consultations with and actions by foreign government of jurisdiction
(1) Consultations
If the President makes the determinations described in subsection (a)(1) of this section with respect
to a foreign person, the Congress urges the President to initiate consultations immediately with the
government with primary jurisdiction over that foreign person with respect to the imposition of
sanctions pursuant to this section.
(2) Actions by government of jurisdiction
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In order to pursue such consultations with that government, the President may delay imposition
of sanctions pursuant to this section for a period of up to 90 days. Following these consultations,
the President shall impose sanctions unless the President determines and certifies to the Congress
that that government has taken specific and effective actions, including appropriate penalties, to
terminate the involvement of the foreign person in the activities described in subsection (a)(1) of
this section. The President may delay imposition of sanctions for an additional period of up to 90
days if the President determines and certifies to the Congress that that government is in the process
of taking the actions described in the preceding sentence.
(3) Report to Congress
The President shall report to the Congress, not later than 90 days after making a determination
under subsection (a)(1) of this section, on the status of consultations with the appropriate
government under this subsection, and the basis for any determination under paragraph (2) of this
subsection that such government has taken specific corrective actions.
(c) Sanctions
(1) Description of sanctions
The sanctions to be imposed pursuant to subsection (a)(1) of this section are, except as provided
in paragraph (2) of this subsection, the following:
(A) Procurement sanction
The United States Government shall not procure, or enter into any contract for the procurement
of, any goods or services from any person described in subsection (a)(3) of this section.
(B) Import sanctions
The importation into the United States of products produced by any person described in
subsection (a)(3) of this section shall be prohibited.
(2) Exceptions
The President shall not be required to apply or maintain sanctions under this section—
(A) in the case of procurement of defense articles or defense services—
(i) under existing contracts or subcontracts, including the exercise of options for
production quantities to satisfy United States operational military requirements;
(ii) if the President determines that the person or other entity to which the sanctions
would otherwise be applied is a sole source supplier of the defense articles or services, that
the defense articles or services are essential, and that alternative sources are not readily
or reasonably available; or
(iii) if the President determines that such articles or services are essential to the national
security under defense coproduction agreements;
(B) to products or services provided under contracts entered into before the date on which
the President publishes his intention to impose sanctions;
(C) to—
(i) spare parts,
(ii) component parts, but not finished products, essential to United States products or
production, or
(iii) routine servicing and maintenance of products, to the extent that alternative sources
are not readily or reasonably available;
(D) to information and technology essential to United States products or production; or
(E) to medical or other humanitarian items.
(d) Termination of sanctions
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OF CERTAIN CFE TREATY-LIMITED EQUIPMENT ...
NB: This unofficial compilation of the U.S. Code is current as of Jan. 4, 2012 (see http://www.law.cornell.edu/uscode/uscprint.html).
The sanctions imposed pursuant to this section shall apply for a period of at least 12 months following
the imposition of sanctions and shall cease to apply thereafter only if the President determines and
certifies to the Congress that reliable information indicates that the foreign person with respect to which
the determination was made under subsection (a)(1) of this section has ceased to aid or abet any foreign
government, project, or entity in its efforts to acquire chemical or biological weapons capability as
described in that subsection.
(e) Waiver
(1) Criterion for waiver
The President may waive the application of any sanction imposed on any person pursuant to this
section, after the end of the 12-month period beginning on the date on which that sanction was
imposed on that person, if the President determines and certifies to the Congress that such waiver
is important to the national security interests of the United States.
(2) Notification of and report to Congress
If the President decides to exercise the waiver authority provided in paragraph (1), the President
shall so notify the Congress not less than 20 days before the waiver takes effect. Such notification
shall include a report fully articulating the rationale and circumstances which led the President to
exercise the waiver authority.
(f) “Foreign person” defined
For the purposes of this section, the term “foreign person” means—
(1) an individual who is not a citizen of the United States or an alien admitted for permanent
residence to the United States; or
(2) a corporation, partnership, or other entity which is created or organized under the laws of a
foreign country or which has its principal place of business outside the United States.
(Pub. L. 90–629, ch. 8, § 81, as added and amended Pub. L. 102–182, title III, §§ 305(b), 309 (b)(2), Dec.
4, 1991, 105 Stat. 1250, 1258.)
References in Text
The Export Administration Act of 1979, referred to in subsec. (a)(1)(C), is Pub. L. 96–72, Sept. 29, 1979, 93 Stat.
503, as amended, which is classified principally to section 2401 et seq. of the Appendix to Title 50, War and National
Defense. For complete classification of this Act to the Code, see Short Title note set out under section 2401 of the
Appendix to Title 50 and Tables.
Prior Provisions
A prior subchapter VIII, consisting of former section 2798, as added by Pub. L. 102–138, title V, § 505(b), Oct. 28,
1991, 105 Stat. 727, was substantially identical to subchapter VIII, as added by section 305(b) of Pub. L. 102–182,
prior to repeal by Pub. L. 102–182, title III, § 309(a), Dec. 4, 1991, 105 Stat. 1258.
Amendments
1991—Subsec. (a)(1). Pub. L. 101–182, § 309(b)(2), substituted “October 28, 1991” for reference to the “date of the
enactment of this section” which was enacted Dec. 4, 1991.
Delegation of Functions
For delegation of certain functions of the President under this section, see Ex. Ord. No. 12851, § 1(a), June 11, 1993,
58 F.R. 33181, set out as a note under section 2797 of this title.
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SUBCHAPTER IX—TRANSFER OF CERTAIN CFE TREATY-LIMITED EQUIPMENT
TO NATO MEMBERS
.....................................
§ 2799. Purpose
The purpose of this subchapter is to authorize the President to support, consistent with the CFE
Treaty, a NATO equipment transfer program that will—
(1) enhance NATO’s forces,
(2) increase NATO standardization and interoperability, and
(3) better distribute defense burdens within the NATO alliance.
(Pub. L. 90–629, ch. 9, § 91, as added Pub. L. 102–228, § 2, Dec. 12, 1991, 105 Stat. 1691.)
.....................................
§ 2799a. CFE Treaty obligations
The authorities provided in this subchapter shall be exercised consistent with the obligations
incurred by the United States in connection with the CFE Treaty.
(Pub. L. 90–629, ch. 9, § 92, as added Pub. L. 102–228, § 2, Dec. 12, 1991, 105 Stat. 1691.)
.....................................
§ 2799b. Authorities
(a) General authority
The President may transfer to any NATO/CFE country, in accordance with NATO plans, defense
articles—
(1) that are battle tanks, armoured combat vehicles, or artillery included within the CFE Treaty’s
definition of “conventional armaments and equipment limited by the Treaty”;
(2) that were, as of the date of signature of the CFE Treaty, in the stocks of the Department of
Defense and located in the CFE Treaty’s area of application; and
(3) that the President determines are not needed by United States military forces within the CFE
Treaty’s area of application.
(b) Acceptance of NATO assistance in eliminating direct costs of transfers
In order to eliminate direct costs of facilitating transfers of defense articles under subsection (a) of
this section, the United States may utilize services provided by NATO or any NATO/CFE country,
including inspection, repair, or transportation services with respect to defense articles so transferred.
(c) Acceptance of NATO assistance in meeting certain United States obligations
In order to facilitate United States compliance with the CFE Treaty-mandated obligations for
destruction of conventional armaments and equipment limited by the CFE Treaty, the United States
may utilize services or funds provided by NATO or any NATO/CFE country.
(d) Authority to transfer on grant basis
Defense articles may be transferred under subsection (a) of this section without cost to the recipient
country.
(e) Third country transfers restrictions
For purposes of sections 2753 (a)(2), 2753 (a)(3), 2753 (c), and 2753 (d) of this title, defense articles
transferred under subsection (a) of this section shall be deemed to have been sold under this chapter.
(f) Maintenance of military balance in Eastern Mediterranean
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NB: This unofficial compilation of the U.S. Code is current as of Jan. 4, 2012 (see http://www.law.cornell.edu/uscode/uscprint.html).
The President shall ensure that transfers by the United States under subsection (a) of this section, taken
together with transfers by other NATO/CFE countries in implementing the CFE Treaty, are of such
valuations so as to be consistent with the United States policy, embodied in section 2373 of this title,
of maintaining the military balance in the Eastern Mediterranean.
(g) Expiration of authority
(1) In general
Except as provided in paragraph (2), the authority of subsection (a) of this section expires at the
end of the 40-month period beginning on the date on which the CFE Treaty enters into force.
(2) Transition rule
Paragraph (1) does not apply with respect to a transfer of defense articles for which notification
under section 2799c (a) of this title is submitted before the end of the period described in that
paragraph.
(Pub. L. 90–629, ch. 9, § 93, as added Pub. L. 102–228, § 2, Dec. 12, 1991, 105 Stat. 1691.)
References in Text
This chapter, referred to in subsec. (e), was in the original “this Act”, meaning Pub. L. 90–629, Oct. 22, 1968, 82 Stat.
1321, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title
note set out under section 2751 of this title and Tables.
Delegation of Functions
Memorandum of President of the United States, Feb. 13, 1992, 57 F.R. 6663, provided:
Memorandum for the Secretary of State and the Secretary of Defense
By virtue of the authority vested in me by the Constitution and laws of the United States of America, including section
301 of title 3 of the United States Code, I hereby delegate to the Secretary of Defense the functions vested in me by
section 93 (a) and section 94 of the Arms Export Control Act, as amended (the “Act”) [22 U.S.C. 2799b (a), 2799c],
and to the Secretary of State the functions vested in me by section 93(f) of the Act. Consistent with section 2 of the
Act [22 U.S.C. 2752], transfers of defense articles under section 93 (a) shall be subject to the policy direction of the
Secretary of State, including the determination of whether such transfers shall occur.
The Secretary of State is authorized and directed to publish this memorandum in the Federal Register.
George Bush.
.....................................
§ 2799c. Notifications and reports to Congress
(a) Notifications
Not less than 15 days before transferring any defense articles pursuant to section 2799b (a) of this
title, the President shall notify the Committee on Foreign Affairs of the House of Representatives and
the Committee on Foreign Relations of the Senate in accordance with the procedures applicable to
reprogramming notifications pursuant to section 2394–1 of this title.
(b) Annual reports
Not later than February 1 each year, the President shall submit to the Committee on Foreign Affairs
and the Committee on Armed Services of the House of Representatives and the Committee on Foreign
Relations and the Committee on Armed Services of the Senate a report that—
(1) lists all transfers made to each recipient NATO/CFE country by the United States under section
2799b (a) of this title during the preceding calendar year;
(2) describes how those transfers further the purposes described in paragraphs (1) through (3) of
section 2799 of this title; and
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TITLE 22 - Section 2799d - Definitions
NB: This unofficial compilation of the U.S. Code is current as of Jan. 4, 2012 (see http://www.law.cornell.edu/uscode/uscprint.html).
(3) lists, on a country-by-country basis, all transfers to another country of conventional armaments
and equipment limited by the CFE Treaty—
(A) by each NATO/CFE country (other than the United States) in implementing the CFE
Treaty, and
(B) by each country of the Eastern Group of States Parties in implementing the CFE Treaty.
(Pub. L. 90–629, ch. 9, § 94, as added Pub. L. 102–228, § 2, Dec. 12, 1991, 105 Stat. 1692; amended Pub.
L. 103–199, title IV, § 402(1), Dec. 17, 1993, 107 Stat. 2324.)
Amendments
1993—Subsec. (b)(3)(B). Pub. L. 103–199 substituted “country of the Eastern Group of States Parties” for “Warsaw
Pact country”.
Delegation of Functions
Functions of President under this section delegated to Secretary of Defense by Memorandum of President of the United
States, Feb. 13, 1992, 57 F.R. 6663, set out as a note under section 2799b of this title.
.....................................
§ 2799d. Definitions
As used in this subchapter—
(1) the term “CFE Treaty” means the Treaty on Conventional Armed Forces in Europe (signed at Paris,
November 19, 1990);
(2) the term “conventional armaments and equipment limited by the CFE Treaty” has the same
meaning as the term “conventional armaments and equipment limited by the Treaty” does under
paragraph 1(J) of article II of the CFE Treaty;
(3) the term “NATO” means the North Atlantic Treaty Organization;
(4) the term “NATO/CFE country” means a member country of NATO that is a party to the CFE
Treaty and is listed in paragraph 1(A) of article II of the CFE Treaty within the group of States Parties
that signed or acceded to the Treaty of Brussels of 1948 or the Treaty of Washington of 1949 (the North
Atlantic Treaty); and
(5) the term “country of the Eastern Group of States Parties” means a country that is listed in paragraph
1(A) of article II of the CFE Treaty within the group of States Parties that signed the Treaty of Warsaw
of 1955 or a successor state to such a country.
(Pub. L. 90–629, ch. 9, § 95, as added Pub. L. 102–228, § 2, Dec. 12, 1991, 105 Stat. 1693; amended Pub.
L. 103–199, title IV, § 402(2), Dec. 17, 1993, 107 Stat. 2324.)
Amendments
1993—Par. (5). Pub. L. 103–199 substituted “country of the Eastern Group of States Parties” for “Warsaw Pact
country” and inserted before period at end “or a successor state to such a country”.
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TITLE 22 - Section 2799aa - Nuclear enrichment transfers
NB: This unofficial compilation of the U.S. Code is current as of Jan. 4, 2012 (see http://www.law.cornell.edu/uscode/uscprint.html).
SUBCHAPTER X—NUCLEAR NONPROLIFERATION CONTROLS
.....................................
§ 2799aa. Nuclear enrichment transfers
(a) Prohibitions; safeguards and management
Except as provided in subsection (b) of this section, no funds made available to carry out the Foreign
Assistance Act of 1961 [22 U.S.C. 2151 et seq.] or this chapter may be used for the purpose of providing
economic assistance (including assistance under chapter 4 of part II of the Foreign Assistance Act of
1961 [22 U.S.C. 2346 et seq.]), providing military assistance or grant military education and training,
providing assistance under chapter 6 of part II of that Act [22 U.S.C. 2348 et seq.], or extending
military credits or making guarantees, to any country which the President determines delivers nuclear
enrichment equipment, materials, or technology to any other country on or after August 4, 1977, or
receives such equipment, materials, or technology from any other country on or after August 4, 1977,
unless before such delivery—
(1) the supplying country and receiving country have reached agreement to place all such
equipment, materials, or technology, upon delivery, under multilateral auspices and management
when available; and
(2) the recipient country has entered into an agreement with the International Atomic Energy
Agency to place all such equipment, materials, technology, and all nuclear fuel and facilities in
such country under the safeguards system of such Agency.
(b) Certification by President of necessity of continued assistance; disapproval by Congress
(1) Notwithstanding subsection (a) of this section, the President may furnish assistance which
would otherwise be prohibited under such subsection if he determines and certifies in writing to
the Speaker of the House of Representatives and the Committee on Foreign Relations of the Senate
that—
(A) the termination of such assistance would have a serious adverse effect on vital United
States interests; and
(B) he has received reliable assurances that the country in question will not acquire or develop
nuclear weapons or assist other nations in doing so.
Such certification shall set forth the reasons supporting such determination in each particular case.
(2) (A) A certification under paragraph (1) of this subsection shall take effect on the date on
which the certification is received by the Congress. However, if, within thirty calendar days
after receiving this certification, the Congress enacts a joint resolution stating in substance that
the Congress disapproves the furnishing of assistance pursuant to the certification, then upon
the enactment of that resolution the certification shall cease to be effective and all deliveries of
assistance furnished under the authority of that certification shall be suspended immediately.
(B) Any joint resolution under this paragraph shall be considered in the Senate in accordance
with the provisions of section 601(b) of the International Security Assistance and Arms Export
Control Act of 1976.
(Pub. L. 90–629, ch. 10, § 101, as added Pub. L. 103–236, title VIII, § 826(a), Apr. 30, 1994, 108 Stat.
515.)
References in Text
The Foreign Assistance Act of 1961, referred to in subsec. (a), is Pub. L. 87–195, Sept. 4, 1961, 75 Stat. 424, as
amended, which is classified principally to chapter 32 (§ 2151 et seq.) of this title. Chapters 4 and 6 of part II of the
Act are classified generally to parts IV (§ 2346 et seq.) and VI (§ 2348 et seq.), respectively, of subchapter II of chapter
32 of this title. For complete classification of this Act to the Code, see Short Title note set out under section 2151
of this title and Tables.
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NB: This unofficial compilation of the U.S. Code is current as of Jan. 4, 2012 (see http://www.law.cornell.edu/uscode/uscprint.html).
This chapter, referred to in subsec. (a), was in the original “this Act”, meaning Pub. L. 90–629, Oct. 22, 1968, 82 Stat.
1321, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title
note set out under section 2751 of this title and Tables.
Section 601(b) of the International Security Assistance and Arms Export Control Act of 1976, referred to in subsec.
(b)(2)(B), is section 601(b) of Pub. L. 94–329, title VI, June 30, 1976, 90 Stat. 765, which is not classified to the Code.
References to Sections 2429 and 2429a of This Title Deemed To Be References
to Sections 2799aa and 2799aa–1 of This Title
Section 826(c) of Pub. L. 103–236 provided that: “Any reference in law as of the date of enactment of this Act [Apr.
30, 1994] to section 669 or 670 of the Foreign Assistance Act of 1961 [former 22 U.S.C. 2429, 2429a] shall, after
such date, be deemed to be a reference to section 101 or 102, as the case may be, of the Arms Export Control Act
[22 U.S.C. 2799aa, 2799aa–1].”
Effective Date
Subchapter effective 60 days after Apr. 30, 1994, see section 831 of Pub. L. 103–236, set out as a note under section
6301 of this title.
Waiver of Sanctions
Sanctions contained in this section waived in certain regards with respect to India by Determination of President of
the United States, No. 2000–18, Mar. 16, 2000, 65 F.R. 16297, set out as a note under section 2799aa–1 of this title.
Sanctions contained in this section waived in certain regards with respect to India and Pakistan by Determination of
President of the United States, No. 2000–4, Oct. 27, 1999, 64 F.R. 60649, set out as a note under section 2799aa–1
of this title.
.....................................
§ 2799aa–1. Nuclear reprocessing transfers, illegal exports for nuclear explosive devices,
transfers of nuclear explosive devices, and nuclear detonations
(a) Prohibitions on assistance to countries involved in transfer of nuclear reprocessing
equipment, materials, or technology; exceptions; procedures applicable
(1) Except as provided in paragraph (2) of this subsection, no funds made available to carry out
the Foreign Assistance Act of 1961 [22 U.S.C. 2151 et seq.] or this chapter may be used for the
purpose of providing economic assistance (including assistance under chapter 4 of part II of the
Foreign Assistance Act of 1961 [22 U.S.C. 2346 et seq.]), providing military assistance or grant
military education and training, providing assistance under chapter 6 of part II of that Act [22
U.S.C. 2348 et seq.], or extending military credits or making guarantees, to any country which the
President determines—
(A) delivers nuclear reprocessing equipment, materials, or technology to any other country
on or after August 4, 1977, or receives such equipment, materials, or technology from any
other country on or after August 4, 1977 (except for the transfer of reprocessing technology
associated with the investigation, under international evaluation programs in which the United
States participates, of technologies which are alternatives to pure plutonium reprocessing), or
(B) is a non-nuclear-weapon state which, on or after August 8, 1985, exports illegally (or
attempts to export illegally) from the United States any material, equipment, or technology
which would contribute significantly to the ability of such country to manufacture a nuclear
explosive device, if the President determines that the material, equipment, or technology was
to be used by such country in the manufacture of a nuclear explosive device.
For purposes of clause (B), an export (or attempted export) by a person who is an agent of, or is
otherwise acting on behalf of or in the interests of, a country shall be considered to be an export
(or attempted export) by that country.
(2) Notwithstanding paragraph (1) of this subsection, the President in any fiscal year may furnish
assistance which would otherwise be prohibited under that paragraph if he determines and certifies
in writing during that fiscal year to the Speaker of the House of Representatives and the Committee
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on Foreign Relations of the Senate that the termination of such assistance would be seriously
prejudicial to the achievement of United States nonproliferation objectives or otherwise jeopardize
the common defense and security. The President shall transmit with such certification a statement
setting forth the specific reasons therefor.
(3) (A) A certification under paragraph (2) of this subsection shall take effect on the date on
which the certification is received by the Congress. However, if, within 30 calendar days after
receiving this certification, the Congress enacts a joint resolution stating in substance that the
Congress disapproves the furnishing of assistance pursuant to the certification, then upon the
enactment of that resolution the certification shall cease to be effective and all deliveries of
assistance furnished under the authority of that certification shall be suspended immediately.
(B) Any joint resolution under this paragraph shall be considered in the Senate in accordance
with the provisions of section 601(b) of the International Security Assistance and Arms Export
Control Act of 1976.
(b) Prohibitions on assistance to countries involved in transfer or use of nuclear explosive
devices; exceptions; procedures applicable
(1) Except as provided in paragraphs (4), (5), and (6), in the event that the President determines
that any country, after the effective date of part B of the Nuclear Proliferation Prevention Act of
1994—
(A) transfers to a non-nuclear-weapon state a nuclear explosive device,
(B) is a non-nuclear-weapon state and either—
(i) receives a nuclear explosive device, or
(ii) detonates a nuclear explosive device,
(C) transfers to a non-nuclear-weapon state any design information or component which is
determined by the President to be important to, and known by the transferring country to
be intended by the recipient state for use in, the development or manufacture of any nuclear
explosive device, or
(D) is a non-nuclear-weapon state and seeks and receives any design information or
component which is determined by the President to be important to, and intended by the
recipient state for use in, the development or manufacture of any nuclear explosive device,
then the President shall forthwith report in writing his determination to the Congress and shall
forthwith impose the sanctions described in paragraph (2) against that country.
(2) The sanctions referred to in paragraph (1) are as follows:
(A) The United States Government shall terminate assistance to that country under the
Foreign Assistance Act of 1961 [22 U.S.C. 2151 et seq.], except for humanitarian assistance
or food or other agricultural commodities.
(B) The United States Government shall terminate—
(i) sales to that country under this chapter of any defense articles, defense services, or
design and construction services, and
(ii) licenses for the export to that country of any item on the United States Munitions List.
(C) The United States Government shall terminate all foreign military financing for that
country under this chapter.
(D) The United States Government shall deny to that country any credit, credit guarantees, or
other financial assistance by any department, agency, or instrumentality of the United States
Government, except that the sanction of this subparagraph shall not apply—
(i) to any transaction subject to the reporting requirements of title V of the National
Security Act of 1947 [50 U.S.C. 413 et seq.] (relating to congressional oversight of
intelligence activities),
(ii) to medicines, medical equipment, and humanitarian assistance, or
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(iii) to any credit, credit guarantee, or financial assistance provided by the Department
of Agriculture to support the purchase of food or other agricultural commodity.
(E) The United States Government shall oppose, in accordance with section 262d of this
title, the extension of any loan or financial or technical assistance to that country by any
international financial institution.
(F) The United States Government shall prohibit any United States bank from making any
loan or providing any credit to the government of that country, except for loans or credits for
the purpose of purchasing food or other agricultural commodities, which includes fertilizer.
(G) The authorities of section 2405 of title 50, Appendix, shall be used to prohibit exports
to that country of specific goods and technology (excluding food and other agricultural
commodities), except that such prohibition shall not apply to any transaction subject to the
reporting requirements of title V of the National Security Act of 1947 [50 U.S.C. 413 et seq.]
(relating to congressional oversight of intelligence activities).
(3) As used in this subsection—
(A) the term “design information” means specific information that relates to the design of a
nuclear explosive device and that is not available to the public; and
(B) the term “component” means a specific component of a nuclear explosive device.
(4) (A) Notwithstanding paragraph (1) of this subsection, the President may, for a period of
not more than 30 days of continuous session, delay the imposition of sanctions which would
otherwise be required under paragraph (1)(A) or (1)(B) of this subsection if the President first
transmits to the Speaker of the House of Representatives, and to the chairman of the Committee
on Foreign Relations of the Senate, a certification that he has determined that an immediate
imposition of sanctions on that country would be detrimental to the national security of the
United States. Not more than one such certification may be transmitted for a country with
respect to the same detonation, transfer, or receipt of a nuclear explosive device.
(B) If the President transmits a certification to the Congress under subparagraph (A), a joint
resolution which would permit the President to exercise the waiver authority of paragraph (5)
of this subsection shall, if introduced in either House within thirty days of continuous session
after the Congress receives this certification, be considered in the Senate in accordance with
subparagraph (C) of this paragraph.
(C) Any joint resolution under this paragraph shall be considered in the Senate in accordance
with the provisions of section 601(b) of the International Security Assistance and Arms Export
Control Act of 1976.
(D) For purposes of this paragraph, the term “joint resolution” means a joint resolution
the matter after the resolving clause of which is as follows: “That the Congress having
received on XX a certification by the President under section 102(b)(4) of the Arms Export
Control Act with respect to XX, the Congress hereby authorizes the President to exercise the
waiver authority contained in section 102(b)(5) of that Act.”, with the date of receipt of the
certification inserted in the first blank and the name of the country inserted in the second blank.
(5) Notwithstanding paragraph (1) of this subsection, if the Congress enacts a joint resolution
under paragraph (4) of this subsection, the President may waive any sanction which would
otherwise be required under paragraph (1)(A) or (1)(B) if he determines and certifies in writing
to the Speaker of the House of Representatives and the Committee on Foreign Relations of the
Senate that the imposition of such sanction would be seriously prejudicial to the achievement
of United States nonproliferation objectives or otherwise jeopardize the common defense and
security. The President shall transmit with such certification a statement setting forth the specific
reasons therefor.
(6) (A) In the event the President is required to impose sanctions against a country under
paragraph (1)(C) or (1)(D), the President shall forthwith so inform such country and shall
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impose the required sanctions beginning 30 days after submitting to the Congress the report
required by paragraph (1) unless, and to the extent that, there is enacted during the 30-day
period a law prohibiting the imposition of such sanctions.
(B) Notwithstanding any other provision of law, the sanctions which are required to be
imposed against a country under paragraph (1)(C) or (1)(D) shall not apply if the President
determines and certifies in writing to the Committee on Foreign Relations and the Committee
on Governmental Affairs of the Senate and the Committee on Foreign Affairs of the House
of Representatives that the application of such sanctions against such country would have a
serious adverse effect on vital United States interests. The President shall transmit with such
certification a statement setting forth the specific reasons therefor.
(7) For purposes of this subsection, continuity of session is broken only by an adjournment of
Congress sine die and the days on which either House is not in session because of an adjournment
of more than three days to a day certain are excluded in the computation of any period of time in
which Congress is in continuous session.
(8) The President may not delegate or transfer his power, authority, or discretion to make or
modify determinations under this subsection.
(c) “Non-nuclear-weapon state” defined
As used in this section, the term “non-nuclear-weapon state” means any country which is not a
nuclear-weapon state, as defined in Article IX(3) of the Treaty on the Non-Proliferation of Nuclear
Weapons.
(Pub. L. 90–629, ch. 10, § 102, as added Pub. L. 103–236, title VIII, § 826(a), Apr. 30, 1994, 108 Stat.
516; amended Pub. L. 105–194, § 2(a)–(c), July 14, 1998, 112 Stat. 627.)
References in Text
The Foreign Assistance Act of 1961, referred to in subsecs. (a)(1) and (b)(2)(A), is Pub. L. 87–195, Sept. 4, 1961,
75 Stat. 424, as amended, which is classified principally to chapter 32 (§ 2151 et seq.) of this title. Chapters 4 and
6 of part II of the Act are classified generally to parts IV (§ 2346 et seq.) and VI (§ 2348 et seq.), respectively, of
subchapter II of chapter 32 of this title. For complete classification of this Act to the Code, see Short Title note set
out under section 2151 of this title and Tables.
This chapter, referred to in subsecs. (a)(1) and (b)(2)(B)(i), (C), was in the original “this Act”, meaning Pub. L. 90–629,
Oct. 22, 1968, 82 Stat. 1321, which is classified principally to this chapter. For complete classification of this Act to
the Code, see Short Title note set out under section 2751 of this title and Tables.
Section 601(b) of the International Security Assistance and Arms Export Control Act of 1976, referred to in subsecs.
(a)(3)(B) and (b)(4)(C), is section 601(b) of Pub. L. 94–329, title VI, June 30, 1976, 90 Stat. 765, which is not classified
to the Code.
For effective date of part B of the Nuclear Proliferation Prevention Act of 1994 [part B of title VIII of Pub. L. 103–236],
referred to in subsec. (b)(1), as 60 days after Apr. 30, 1994, see section 831 of Pub. L. 103–236, set out as an Effective
Date note under section 6301 of this title.
The National Security Act of 1947, as amended, referred to in subsec. (b)(2)(D)(i), (G), is act July 26, 1947, ch. 343,
61 Stat. 495, as amended. Title V of the Act is classified generally to subchapter III (§ 413 et seq.) of chapter 15 of
Title 50, War and National Defense. For complete classification of this Act to the Code, see Short Title note set out
under section 401 of Title 50 and Tables.
Section 102 of the Arms Export Control Act, referred to in subsec. (b)(4)(D), is classified to this section.
Amendments
1998—Subsec. (b)(2)(D)(ii). Pub. L. 105–194, § 2(c), inserted “medicines, medical equipment, and” after “to”.
Subsec. (b)(2)(D)(iii). Pub. L. 105–194, § 2(a), added cl. (iii).
Subsec. (b)(2)(F). Pub. L. 105–194, § 2(b), inserted “, which includes fertilizer” before period at end.
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Change of Name
Committee on Governmental Affairs of Senate changed to Committee on Homeland Security and Governmental
Affairs of Senate, effective Jan. 4, 2005, by Senate Resolution No. 445, One Hundred Eighth Congress, Oct. 9. 2004.
Effective Date of 1998 Amendment
Pub. L. 105–194, § 2(d), July 14, 1998, 112 Stat. 627, provided that: “The amendment made by subsection (a)(3)
[amending this section] shall apply to any credit, credit guarantee, or other financial assistance provided by the
Department of Agriculture before, on, or after the date of enactment of this Act [July 14, 1998] through September
30, 1999.”
Delegation of Functions
Functions of President under subsec. (a)(2) of this section delegated to Secretary of State by section 1(a)(iii) of Ex.
Ord. No. 13346, July 8, 2004, 69 F.R. 41905, set out as a note under section 301 of Title 3, The President.
Waiver of Certain Sanctions Against North Korea
Pub. L. 110–252, title I, § 1405, June 30, 2008, 122 Stat. 2337, provided that:
“(a) Waiver Authority.—
“(1) In general.—Except as provided in subsection (b), the President may waive in whole or in part, with respect to
North Korea, the application of any sanction contained in subparagraph (A), (B), (D) or (G) under section 102(b)(2) of
the Arms Export Control Act (22 U.S.C. 2799aa–1 (b)[(2)(A), (B), (D), (G)]), for the purpose of providing assistance
related to—
“(A) the implementation and verification of the compliance by North Korea with its commitment, undertaken in the
Joint Statement of September 19, 2005, to abandon all nuclear weapons and existing nuclear programs as part of the
verifiable denuclearization of the Korean Peninsula; and
“(B) the elimination of the capability of North Korea to develop, deploy, transfer, or maintain weapons of mass
destruction and their delivery systems.
“(2) Limitation.—The authority under paragraph (1) shall expire 5 years after the date of enactment of this Act [June
30, 2008].
“(b) Exceptions.—
“(1) Limited exception related to certain sanctions and prohibitions.—The authority under subsection (a) shall not
apply with respect to a sanction or prohibition under subparagraph (B) or (G) of section 102(b)(2) of the Arms Export
Control Act [22 U.S.C. 2799aa–1 (b) [(2)(B), (G)], unless the President determines and certifies to the appropriate
congressional committees that—
“(A) all reasonable steps will be taken to assure that the articles or services exported or otherwise provided will not
be used to improve the military capabilities of the armed forces of North Korea; and
“(B) such waiver is in the national security interests of the United States.
“(2) Limited exception related to certain activities.—Unless the President determines and certifies to the appropriate
congressional committees that using the authority under subsection (a) is vital to the national security interests of the
United States, such authority shall not apply with respect to—
“(A) an activity described in subparagraph (A) of section 102(b)(1) of the Arms Export Control Act [22 U.S.C.
2799aa–1 (b)(1)(A)] that occurs after September 19, 2005, and before the date of the enactment of this Act [June 30,
2008];
“(B) an activity described in subparagraph (C) of such section that occurs after September 19, 2005; or
“(C) an activity described in subparagraph (D) of such section that occurs after the date of enactment of this Act.
“(3) Exception related to certain activities occurring after date of enactment.—The authority under subsection (a) shall
not apply with respect to an activity described in subparagraph (A) or (B) of section 102(b)(1) of the Arms Export
Control Act [22 U.S.C. 2799aa–1 (b)(1)(A), (B)] that occurs after the date of the enactment of this Act.
“(4) Limited exception related to lethal weapons.—The authority under subsection (a) shall not apply with respect
to any export of lethal defense articles that would be prevented by the application of section 102(b)(2) of the Arms
Export Control Act [22 U.S.C. 2799aa–1 (b)(2)].
“(c) Notifications and Reports.—
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“(1) Congressional notification.—The President shall notify the appropriate congressional committees in writing not
later than 15 days before exercising the waiver authority under subsection (a).
“(2) Annual report.—Not later than January 31, 2009, and annually thereafter, the President shall submit to the
appropriate congressional committees a report that—
“(A) lists all waivers issued under subsection (a) during the preceding year;
“(B) describes in detail the progress that is being made in the implementation of the commitment undertaken by North
Korea, in the Joint Statement of September 19, 2005, to abandon all nuclear weapons and existing nuclear programs
as part of the verifiable denuclearization of the Korean Peninsula;
“(C) discusses specifically any shortcomings in the implementation by North Korea of that commitment; and
“(D) lists and describes the progress and shortcomings, in the preceding year, of all other programs promoting the
elimination of the capability of North Korea to develop, deploy, transfer, or maintain weapons of mass destruction
or their delivery systems.
“(3) Report on verification measures relating to north korea’s nuclear programs.—
“(A) In general.—Not later than 15 days after the date of enactment of this Act [June 30, 2008], the Secretary of
State shall submit to the appropriate congressional committees a report on verification measures relating to North
Korea’s nuclear programs under the Six-Party Talks Agreement of February 13, 2007, with specific focus on how
such verification measures are defined under the Six-Party Talks Agreement and understood by the United States
Government.
“(B) Matters to be included.—The report required under subsection (A) shall include, among other elements, a
description of—
“(i) how the United States will confirm that North Korea has ‘provided a complete and correct declaration of all of
its nuclear programs’;
“(ii) how the United States will maintain a high and ongoing level of confidence that North Korea has fully met the
terms of the Six-Party Talks Agreement relating to its nuclear programs;
“(iii) any diplomatic agreement with North Korea regarding verification measures relating to North Korea’s
nuclear programs under the Six-Party Talks Agreement (other than implementing arrangements made during on-site
operations); and
“(iv) any significant and continuing disagreement with North Korea regarding verification measures relating to North
Korea’s nuclear programs under the Six-Party Talks Agreement.
“(C) Form.—The report required under subsection (A) shall be submitted in unclassified form, but may include a
classified annex.
“(d) Appropriate Congressional Committees Defined.—In this section, the term ‘appropriate congressional
committees’ means—
“(1) the Committees on Appropriations, Armed Services, and Foreign Relations of the Senate; and
“(2) the Committees on Appropriations, Armed Services, and Foreign Affairs of the House of Representatives.”
Exemption for Rhinoceros, Tiger, Asian Elephant, and Great Ape Conservation
Programs
Pub. L. 107–63, title I, Nov. 5, 2001, 115 Stat. 421, provided in part: “That funds made available under this Act [see
Tables for classification], Public Law 106–291 [see Tables for classification], and Public Law 106–554 [see Tables
for classification] and hereafter in annual appropriations Acts for rhinoceros, tiger, Asian elephant, and great ape
conservation programs are exempt from any sanctions imposed against any country under section 102 of the Arms
Export Control Act (22 U.S.C. 2799aa–1).”
Similar provisions were contained in the following prior appropriation acts:
Pub. L. 106–291, title I, Oct. 11, 2000, 114 Stat. 927.
Pub. L. 106–113, div. B, § 1000(a)(3) [title I], Nov. 29, 1999, 113 Stat. 1535, 1501A–141.
Waiver of Certain Sanctions Against India and Pakistan
Pub. L. 106–79, title IX, § 9001, Oct. 25, 1999, 113 Stat. 1283, as amended by Pub. L. 107–228, div. B, title XIV, §
1405(b), Sept. 30, 2002, 116 Stat. 1458, provided that:
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“(a) Waiver Authority.—Except as provided in subsections (b) and (c) of this section, the President may waive, with
respect to India and Pakistan, the application of any sanction contained in section 101 or 102 of the Arms Export
Control Act (22 U.S.C. 2799aa or 22 U.S.C. 2799aa–1), section 2(b)(4) of the Export Import Bank Act of 1945 (12
U.S.C. 635 (b)(4)), or section 620E(e) of the Foreign Assistance Act of 1961, as amended, (22 U.S.C. 2375 (e)).
“(b) Exception.—The authority to waive the application of a sanction or prohibition (or portion thereof) under
subsection (a) shall not apply with respect to a sanction or prohibition contained in subparagraph (B), (C), or (G)
of section 102(b)(2) of the Arms Export Control Act [22 U.S.C. 2799aa–1 (b)(2)(B), (C), (G)], unless the President
determines, and so certifies to the Congress, that the application of the restriction would not be in the national security
interests of the United States.
“(c) Termination of Waiver.—The President may not exercise the authority of subsection (a), and any waiver
previously issued under subsection (a) shall cease to apply, with respect to India or Pakistan, if that country detonates
a nuclear explosive device after the date of the enactment of this Act [Oct. 25, 1999] or otherwise takes such action
which would cause the President to report pursuant to section 102(b)(1) of the Arms Export Control Act [22 U.S.C.
2799aa–1 (b)(1)].
“(d) Targeted Sanctions.—
“(1) Sense of the congress.—
“(A) it is the sense of the Congress that the broad application of export controls to nearly 300 Indian and Pakistani
entities is inconsistent with the specific national security interests of the United States and that this control list requires
refinement; and
“(B) export controls should be applied only to those Indian and Pakistani entities that make direct and material
contributions to weapons of mass destruction and missile programs and only to those items that can contribute to such
programs.
“(2) Reporting requirement.—Not later than 60 days after the date of the enactment of this Act [Oct. 25, 1999], the
President shall submit both a classified and unclassified report to the appropriate congressional committees listing
those Indian and Pakistani entities whose activities contribute to missile programs or weapons of mass destruction
programs.
“(e) Congressional Notification.—The issuance of a license for export of a defense article, defense service, or
technology under the authority of this section shall be subject to the same requirements as are applicable to the export
of items described in section 36(c) of the Arms Export Control Act (22 U.S.C. 2776 (c)), including the transmittal of
information and the application of congressional review procedures. The application of these requirements shall be
subject to the dollar amount thresholds specified in that section.
“(f) Repeal.—[Repealed section 101 (a) [title IX] of div. A of Pub. L. 105–277, formerly set out below.]”
India-Pakistan Relief
Pub. L. 105–277, div. A, § 101(a) [title IX], Oct. 21, 1998, 112 Stat. 2681, 2681–40, known as the India-Pakistan Relief
Act, provided for a one-year waiver of certain sanctions against India and Pakistan under the Arms Export Control
Act, prior to repeal by Pub. L. 106–79, title IX, § 9001(f), Oct. 25, 1999, 113 Stat. 1284, effective Oct. 21, 1999.
Effect on Existing Sanctions
Pub. L. 105–194, § 2(e), July 14, 1998, 112 Stat. 627, provided that: “Any sanction imposed under section 102(b)(1)
of the Arms Export Control Act [subsec. (b)(1) of this section] before the date of the enactment of this Act [July 14,
1998] shall cease to apply upon that date with respect to the items described in the amendments made by subsections
(b) and (c) [amending this section]. In the case of the amendment made by subsection (a)(3) [amending this section],
any sanction imposed under section 102(b)(1) of the Arms Export Control Act before the date of the enactment of this
Act shall not be in effect during the period beginning on that date and ending on September 30, 1999, with respect to
the activities and items described in the amendment.”
Sanctions Against India for Detonation of a Nuclear Explosive Device
Determination of President of the United States, No. 98–22, May 13, 1998, 63 F.R. 27665, provided a determination
that India, a non-nuclear-weapon state, detonated a nuclear explosive device on May 11, 1998, and imposed sanctions
described in subsec. (b)(2) of this section.
Sanctions Against Pakistan for Detonation of a Nuclear Explosive Device
Determination of President of the United States, No. 98–25, May 30, 1998, 63 F.R. 31881, provided a determination
that Pakistan, a non-nuclear-weapon state, detonated a nuclear explosive device on May 28, 1998, and imposed
sanctions described in subsec. (b)(2) of this section.
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Waiver of Certain Sanctions Against India and Pakistan
Provisions relating to waiver of sanctions against India and Pakistan consistent with section 9001 of Pub. L. 106–79,
set out as a note above, or section 101 (a) [title IX, § 902] of Pub. L. 105–277, formerly set out in a note above, were
contained in the following:
Determination of President of the United States, No. 2001–28, Sept. 22, 2001, 66 F.R. 50095.
Determination of President of the United States, No. 2001–23, Aug. 9, 2001, 66 F.R. 44521.
Determination of President of the United States, No. 2001–11, Jan. 19, 2001, 66 F.R. 8503.
Determination of President of the United States, No. 2000–18, Mar. 16, 2000, 65 F.R. 16297.
Determination of President of the United States, No. 2000–4, Oct. 27, 1999, 64 F.R. 60649.
Determination of President of the United States, No. 99–7, Dec. 1, 1998, 34 Weekly Compilation of Presidential
Documents 2402, Dec. 7, 1998.
.....................................
§ 2799aa–2. “Nuclear explosive device” defined
As used in this subchapter, the term “nuclear explosive device” has the meaning given that term
in section 6305 (4) of this title.
(Pub. L. 90–629, ch. 10, § 103, as added Pub. L. 103–236, title VIII, § 826(a), Apr. 30, 1994, 108 Stat.
519.)
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| File Type | application/pdf |
| File Modified | 0000-00-00 |
| File Created | 2012-04-24 |