US (United States) Code. Title 22. Chapter 39: Arms export control

Codificación normativa de EEUU (Estados Unidos) Legislación Federal estadounidense # Foreign Relations and Intercourse

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-CITE-

22 USC CHAPTER 39 - ARMS EXPORT CONTROL 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

-HEAD-

CHAPTER 39 - ARMS EXPORT CONTROL

-MISC1-

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.

(a) Noninfringement of powers or functions of

Secretary of State.

(b) Responsibility for supervision and direction

of sales, leases, financing, cooperative

projects, and exports.

(c) Coordination among representatives of United

States.

2753. Eligibility for defense services or defense

articles.

(a) Prerequisites for consent by President;

report to Congress.

(b) Necessity of consent by President.

(c) Termination of credits, guaranties or sales;

report of violation by President; national

security exception; conditions for

reinstatement.

(d) Submission of written certification to

Congress; contents; classified material;

effective date of consent; report to

Congress; transfers not subject to

procedures.

(e) Transfers without consent of President;

report to Congress.

(f) Sales and leases to countries in breach of

nuclear nonproliferation agreements and

treaties.

(g) Unauthorized use of 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.

(a) Congressional declaration of policy.

(b) Employment of personnel; required

contractual provision.

(c) Report by President; contents.

(d) Congressional request for information from

President; information required; 60 day

period; failure to supply information;

termination or restriction of sale.

2756. Foreign intimidation and harassment of individuals

in United States.

SUBCHAPTER II - FOREIGN MILITARY SALES AUTHORIZATIONS

2761. Sales from stocks.

(a) Eligible countries or international

organizations; basis of payment; valuation

of certain defense articles.

(b) Time of payment.

(c) Personnel performing defense services sold

as prohibited from performing combat

activities.

(d) Billings; interest after due date, rates of

interest and extension of due date.

(e) Charges; reduction or waiver.

(f) Public inspection of contracts.

(g) North Atlantic Treaty Organization

standardization agreements, similar

agreements; reimbursement for costs;

transmittal to Congress.

(h) Reciprocal quality assurance, inspection,

contract administrative services, and

contract audit defense services; catalog

data and services.

(i) Sales affecting combat readiness of Armed

Forces; statement to Congress; limitation

on delivery.

(j) Repealed.

(k) Effect of sales of excess defense articles

on national technology and industrial base.

(l) Repair of defense articles.

(m) Return of defense articles.

2762. Procurement for cash sales.

(a) Authority of President; dependable

undertaking by foreign country or

international organization; interest rates.

(b) Issuance of letters of offer under emergency

determination; availability of

appropriations for payment.

(c) Applicability of Renegotiation Act of 1951.

(d) Competitive pricing.

2763. Credit sales.

(a) Financing procurement of defense articles

and services, and design and construction

services.

(b) Repayment period.

(c) Interest rate; definitions.

(d) Participations in credits.

(e) Payments on account of prior credits or

loans.

(f) Audit of certain private firms.

(g) Notification requirements with respect to

cash flow financing.

(h) Limitation on use of funds for direct

commercial contracts.

2764. Guaranties.

(a) Guaranty against political and credit risks

of nonpayment.

(b) Sale of promissory notes of friendly

countries and international organizations;

guaranty of payment.

(c) Guaranty Reserve Fund; payment of

guaranties; guaranty reserve below

prescribed amount.

2765. Annual estimate and justification for sales

program.

(a) Report to Congress; contents.

(b) Congressional request for additional

information.

(c) Submission of information in unclassified

form or classified addendum with

unclassified summary.

(d) "Cash flow financing" defined.

(d) Transmission of information to Congress.

(e) "Appropriate congressional committees"

defined.

2766. Security assistance surveys.

(a) Statement of findings and policy.

(b) Reporting requirements.

(c) Submission of surveys to Congress.

(d) "Security assistance surveys" defined.

2767. Authority of President to enter into cooperative

projects with friendly foreign countries.

(a) Authority of President.

(b) Definitions.

(c) Agreements for equitable share of costs;

limiting nature of agreements.

(d) Contractual or other obligation;

preconditions.

(e) Waiver of charges; administrative

surcharges.

(f) Transmission of numbered certification to

Congress respecting proposed agreement;

contents.

(g) Reporting and certification requirements

applicable.

(h) Statutory provisions applicable to sales.

(i) Agreements entered into before October 1,

1985.

(j) Cooperative project agreements with friendly

foreign countries not members of NATO.

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.

(a) Sale of defense articles and services by

President to United States companies;

restriction on performance of services;

reimbursement credited to selling agency.

(b) Conditions of sale.

(c) "Defense articles" and "defense services"

defined.

SUBCHAPTER II-C - EXCHANGE OF TRAINING AND RELATED SUPPORT

2770a. Exchange of training and related support.

(a) Authorization; eligibility; scope.

(b) Reciprocal arrangements; reimbursement.

(c) Regulations.

(d) Report to Congress.

SUBCHAPTER III - MILITARY EXPORT CONTROLS

2771. Military sales authorizations and ceilings.

(a) Authorization for foreign military sales

credit and guarantee program.

(b) Aggregate ceilings on credit sales;

availability at concessional rates of

interest.

(c) Interest rates.

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.

(a) Report by President; contents.

(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.

(c) Application for export license; submission

of numbered Presidential certification and

statement to Congress; contents; emergency

circumstances; joint resolution; exception;

notification of upgrades.

(d) Commercial technical assistance or

manufacturing licensing agreements with

non-North Atlantic Treaty Organization

member countries; submission of

Presidential certification; contents.

(e) Definitions.

(f) Publication of arms sales certifications.

(g) Confidentiality.

2777. Fiscal provisions relating to foreign military

sales credits.

(a) Permissible uses of cash payments under

sections 2761, 2762, 2763, and 2769.

(b) Transfer of funds to miscellaneous receipts

of Treasury.

(c) Credit of funds to reserve under section

2764(c).

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.

(b) Registration and licensing requirements for

manufacturers, exporters, or importers of

designated defense articles and defense

services.

(c) Criminal violations; punishment.

(d) Repealed.

(e) Enforcement powers of President.

(f) Periodic review of items on Munitions List;

exemptions.

(g) Identification of persons convicted or

subject to indictment for violations of

certain provisions.

(h) Judicial review of designation of items as

defense articles or services.

(i) Report to Department of State.

(j) Requirements relating to country exemptions

for licensing of defense items for export

to foreign countries.

2778a. Exportation of uranium depleted in the isotope

235.

2779. Fees of military sales agents.

(a) Adequate and timely reports to Secretary of

State; maintenance of records.

(b) Presidential regulation.

(c) Allocation to contract; improper influence.

(d) Availability of records to Congress and

Federal agencies.

2779a. Prohibition on incentive payments.

(a) In general.

(b) Civil penalties.

(c) Presidential authority.

(d) Definitions.

2780. Transactions with countries supporting acts of

international terrorism.

(a) Prohibited transactions by United States

Government.

(b) Prohibited transactions by United States

persons.

(c) Transfers to governments and persons

covered.

(d) Countries covered by prohibition.

(e) Publication of determinations.

(f) Rescission.

(g) Waiver.

(h) Exemption for transactions subject to

National Security Act reporting

requirements.

(i) Relation to other laws.

(j) Criminal penalty.

(k) Civil penalties; enforcement.

(l) Definitions.

2781. Transactions with countries not fully cooperating

with United States antiterrorism efforts.

(a) Prohibited transactions.

(b) Waiver.

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.

(b) Conduct of program.

(c) Report to Congress.

(d) Third country transfers.

SUBCHAPTER IV - GENERAL, ADMINISTRATIVE, AND MISCELLANEOUS

PROVISIONS

2791. General provisions.

(a) Considerations in procurement outside United

States.

(b) Information to Congress on credit sales and

guaranties.

(c) Availability of funds for procurement

outside United States.

(d) Responsibility of Secretary of Defense with

respect to sales and guaranties.

(e) Revocation and suspension provisions of

contracts for sale and export licenses;

appropriations for refunds.

(f) Use of civilian contract personnel in

foreign countries.

2792. Administrative expenses.

(a) Availability of funds.

(b) Charges for administrative expenses and

official reception and representation

expenses.

(c) Limitations on funds used for official

reception and representation expenses.

2793. Other provisions unaffected.

2794. Definitions.

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.

(b) Collections in Fund.

(c) Amounts.

2795a. Use and transfer of items procured by Fund.

(a) Authorization.

(b) Temporary use.

(c) Storage, maintenance and other costs.

2795b. Repealed.

SUBCHAPTER VI - LEASES OF DEFENSE ARTICLES AND LOAN AUTHORITY FOR

COOPERATIVE RESEARCH AND DEVELOPMENT PURPOSES

2796. Leasing authority.

(a) Preconditions.

(b) Duration; termination.

(c) Applicable statutory authorities.

2796a. Reports to Congress.

(a) Written certification to Speaker of the

House and chairmen of Congressional

committees.

(b) Waiver; determination of emergency.

(c) Transmission of certification.

2796b. Legislative review procedures.

(a) Applicability.

(b) Consideration of resolution.

(c) Highly privileged nature of resolution.

2796c. Applicability of other statutory provisions.

2796d. Loan of materials, supplies, and equipment for

research and development purposes.

(a) Loan or gift transactions; written

agreement; covered programs.

(b) Reimbursement of consumed materials, etc.

(c) Prohibitions.

(d) "NATO ally" defined.

SUBCHAPTER VII - CONTROL OF MISSILES AND MISSILE EQUIPMENT OR

TECHNOLOGY

2797. Licensing.

(a) Establishment of list of controlled items.

(b) Referral of license applications.

(c) Information sharing.

(d) Exports to space launch vehicle programs.

2797a. Denial of transfer of missile equipment or

technology by United States persons.

(a) Sanctions.

(b) Discretionary sanctions.

(c) Presumption.

(d) Waiver.

2797b. Transfers of missile equipment or technology by

foreign persons.

(a) Sanctions.

(b) Inapplicability with respect to MTCR

adherents.

(c) Effect of enforcement actions by MTCR

adherents.

(d) Advisory opinions.

(e) Waiver and report to Congress.

(f) Presumption.

(g) Additional waiver.

(h) Exceptions.

2797b-1. Notification of admittance of MTCR adherents.

(a) Policy report.

(b) Intelligence assessment report.

2797b-2. Authority relating to MTCR adherents.

2797c. Definitions.

(a) In general.

(b) International understanding defined.

SUBCHAPTER VIII - CHEMICAL OR BIOLOGICAL WEAPONS PROLIFERATION

2798. Sanctions against certain foreign persons.

(a) Imposition of sanctions.

(b) Consultations with and actions by foreign

government of jurisdiction.

(c) Sanctions.

(d) Termination of sanctions.

(e) Waiver.

(f) "Foreign person" defined.

SUBCHAPTER IX - TRANSFER OF CERTAIN CFE TREATY-LIMITED EQUIPMENT TO

NATO MEMBERS

2799. Purpose.

2799a. CFE Treaty obligations.

2799b. Authorities.

(a) General authority.

(b) Acceptance of NATO assistance in eliminating

direct costs of transfers.

(c) Acceptance of NATO assistance in meeting

certain United States obligations.

(d) Authority to transfer on grant basis.

(e) Third country transfers restrictions.

(f) Maintenance of military balance in Eastern

Mediterranean.

(g) Expiration of authority.

2799c. Notifications and reports to Congress.

(a) Notifications.

(b) Annual reports.

2799d. Definitions.

SUBCHAPTER X - NUCLEAR NONPROLIFERATION CONTROLS

2799aa. Nuclear enrichment transfers.

(a) Prohibitions; safeguards and management.

(b) Certification by President of necessity of

continued assistance; disapproval by

Congress.

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.

(b) Prohibitions on assistance to countries

involved in transfer or use of nuclear

explosive devices; exceptions; procedures

applicable.

(c) "Non-nuclear-weapon state" defined.

2799aa-2. "Nuclear explosive device" defined.

-SECREF-

CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to sections 2272, 2291, 2291e, 2291f,

2304, 2305, 2311, 2318, 2321h, 2321i, 2321j, 2321k, 2349a,

2349aa-2, 2364, 2367, 2370a, 2373, 2378-1, 2394-1, 2403, 2413,

2414, 2423, 2778a, 3402, 5603, 5605, 6003, 6041, 6445, 6593, 6713,

7102, 7551 of this title; title 10 sections 130, 2344, 2350b,

2350c, 4688; title 12 section 635; title 15 section 4605; title 18

section 2516; title 26 section 901; title 49 section 44908; title

50 section 415.

-End-

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22 USC SUBCHAPTER I - FOREIGN AND NATIONAL SECURITY

POLICY OBJECTIVES AND

RESTRAINTS 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER I - FOREIGN AND NATIONAL SECURITY POLICY OBJECTIVES AND

RESTRAINTS

-HEAD-

SUBCHAPTER I - FOREIGN AND NATIONAL SECURITY POLICY OBJECTIVES AND

RESTRAINTS

-End-

-CITE-

22 USC Sec. 2751 01/06/03

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TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER I - FOREIGN AND NATIONAL SECURITY POLICY OBJECTIVES AND

RESTRAINTS

-HEAD-

Sec. 2751. Need for international defense cooperation and military

export controls; Presidential waiver; report to Congress; arms

sales policy

-STATUTE-

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.

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.

-SOURCE-

(Pub. L. 90-629, ch. 1, Sec. 1, Oct. 22, 1968, 82 Stat. 1321; Pub.

L. 91-672, Sec. 4, Jan. 12, 1971, 84 Stat. 2053; Pub. L. 93-189,

Sec. 25(1), Dec. 17, 1973, 87 Stat. 729; Pub. L. 94-329, title II,

Sec. 202, formerly Sec. 202(a), June 30, 1976, 90 Stat. 734,

renumbered and amended Pub. L. 95-384, Secs. 15(a), 29(c)(1)(A),

Sept. 26, 1978, 92 Stat. 739, 747; Pub. L. 97-113, title VII, Sec.

734(a)(10), Dec. 29, 1981, 95 Stat. 1560.)

-REFTEXT-

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 (Sec. 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, as

amended, 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 (Sec. 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."

-MISC1-

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, Sec. 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 1999 AMENDMENT

Pub. L. 106-113, div. B, Sec. 1000(a)(7) [div. B, Sec. 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, Sec. 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, Sec. 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'."

ELIGIBILITY OF PANAMA UNDER ARMS EXPORT CONTROL ACT

Pub. L. 104-164, title I, Sec. 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, Sec. 1503, Oct. 5, 1994, 108

Stat. 2916; Pub. L. 104-201, div. A, title XIII, Sec. 1309(d),

Sept. 23, 1996, 110 Stat. 2710; Pub. L. 106-65, div. A, title XV,

Sec. 1504(c), Oct. 5, 1999, 113 Stat. 808; Pub. L. 107-314, div. A,

title XII, Sec. 1208(b), (c), Dec. 2, 2002, 116 Stat. 2668,

provided that:

"(a) Annual Report Required. - Not later than May 1 each 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 fiscal year preceding the

fiscal year in which the report is submitted, 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, 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."

ARAB LEAGUE BOYCOTT OF ISRAEL

Pub. L. 103-236, title V, Sec. 564, Apr. 30, 1994, 108 Stat. 484,

as amended by Pub. L. 103-415, Sec. 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 [now Committee on International Relations] 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, Secs. 1603, 1605, 1607, Nov.

30, 1993, 107 Stat. 1843, 1845, 1847, as amended by Pub. L.

103-337, div. A, title XV, Secs. 1502, 1505(a), (b), Oct. 5, 1994,

108 Stat. 2914, 2919; Pub. L. 104-106, div. A, title XV, Sec.

1504(b), Feb. 10, 1996, 110 Stat. 513; Pub. L. 104-201, div. A,

title XIII, Sec. 1309(a)-(c), Sept. 23, 1996, 110 Stat. 2710; Pub.

L. 106-65, div. A, title XV, Sec. 1504(a), (b), Oct. 5, 1999, 113

Stat. 808; Pub. L. 107-314, div. A, title XII, Sec. 1208(a), (d),

Dec. 2, 2002, 116 Stat. 2668, 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

"(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 Central Intelligence.

"(D) The Chairman of the Joint Chiefs of Staff.

"(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 Logisitics [sic] 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 to the Secretary of Defense for Nuclear and

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.

"(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 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, 2008.

"SEC. 1607. DEFINITIONS.

"For purposes of this subtitle [subtitle A, Secs. 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 [now Committee on International

Relations], 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, Sec. 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 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, Sec. 1097, Dec. 5, 1991, 105

Stat. 1489, as amended by Pub. L. 104-106, div. A, title XV, Secs.

1502(c)(3), 1504(d), Feb. 10, 1996, 110 Stat. 507, 514; Pub. L.

106-65, div. A, title X, Sec. 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, Sec. 1308(g)(1)(A), Sept. 30, 2002, 116 Stat.

1441.

CONVENTIONAL ARMS TRANSFERS

Pub. L. 99-83, title I, Sec. 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, Sec. 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, Sec. 27, Aug. 4, 1977, 91 Stat. 626, set out below, prior to

repeal by Pub. L. 97-113, title VII, Sec. 734(a)(12), Dec. 29,

1981, 95 Stat. 1560.

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, Sec. 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, Sec.

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, Sec. 24, Aug. 4, 1977, 91 Stat. 624, as amended by

Pub. L. 97-113, title VII, Sec. 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, Sec. 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, Sec. 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, Sec. 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, Sec. 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, Sec. 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, Sec. 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 [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."

-EXEC-

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, Sec. 7, Dec. 14, 1990, 55 F.R. 52035;

Ex. Ord. No. 13030, Sec. 2, Dec. 12, 1996, 61 F.R. 66187; Ex. Ord.

No. 13091, Sec. 1, June 29, 1998, 63 F.R. 36153; Ex. Ord. No.

13118, Sec. 10(8), Mar. 31, 1999, 64 F.R. 16598; Ex. Ord. No.

13284, Sec. 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.

(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.

(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.]

-End-

-CITE-

22 USC Sec. 2752 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER I - FOREIGN AND NATIONAL SECURITY POLICY OBJECTIVES AND

RESTRAINTS

-HEAD-

Sec. 2752. Coordination with foreign policy

-STATUTE-

(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.

-SOURCE-

(Pub. L. 90-629, ch. 1, Sec. 2, Oct. 22, 1968, 82 Stat. 1322; Pub.

L. 94-329, title II, Sec. 212(a)(2), June 30, 1976, 90 Stat. 745;

Pub. L. 97-113, title I, Sec. 109(b)(1), Dec. 29, 1981, 95 Stat.

1526; Pub. L. 99-83, title I, Sec. 115(b)(1), Aug. 8, 1985, 99

Stat. 201; Pub. L. 99-145, title XI, Sec. 1102(a)(2), (5), Nov. 8,

1985, 99 Stat. 710; Pub. L. 99-661, div. A, title XIII, Sec.

1342(e), Nov. 14, 1986, 100 Stat. 3991.)

-MISC1-

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, Sec. 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, Sec. 1102(a)(5), Nov. 8, 1985, 99 Stat.

710, which provided for the repeal of the amendments made by Sec.

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, Sec. 1342(e), Nov. 14, 1986, 100 Stat.

3991.

-End-

-CITE-

22 USC Sec. 2753 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER I - FOREIGN AND NATIONAL SECURITY POLICY OBJECTIVES AND

RESTRAINTS

-HEAD-

Sec. 2753. Eligibility for defense services or defense articles

-STATUTE-

(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:

(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 -

(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, 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; (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.

(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, 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, 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, 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.

(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, 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

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.

-SOURCE-

(Pub. L. 90-629, ch. 1, Sec. 3, Oct. 22, 1968, 82 Stat. 1322; Pub.

L. 91-672, Sec. 1, Jan. 12, 1971, 84 Stat. 2053; Pub. L. 93-189,

Sec. 25(2), Dec. 17, 1973, 87 Stat. 729; Pub. L. 93-559, Sec.

45(a)(1), Dec. 30, 1974, 88 Stat. 1813; Pub. L. 94-329, title II,

Secs. 203(a), 204(a), (b)(1), title III, Sec. 304(b), June 30,

1976, 90 Stat. 735, 736, 754, 755; Pub. L. 95-92, Secs. 15-18, Aug.

4, 1977, 91 Stat. 622; Pub. L. 96-92, Sec. 11, Oct. 29, 1979, 93

Stat. 705; Pub. L. 96-533, title I, Sec. 101, Dec. 16, 1980, 94

Stat. 3131; Pub. L. 97-113, title I, Secs. 101(a), 102(a),

109(b)(2), Dec. 29, 1981, 95 Stat. 1519, 1520, 1526; Pub. L. 99-83,

title I, Sec. 115(b)(2), title V, Sec. 503(b), Aug. 8, 1985, 99

Stat. 201, 221; Pub. L. 99-145, title XI, Sec. 1102(a)(3), (5),

Nov. 8, 1985, 99 Stat. 710; Pub. L. 99-247, Sec. 1(a), Feb. 12,

1986, 100 Stat. 9; Pub. L. 99-661, div. A, title XIII, Sec.

1342(e), Nov. 14, 1986, 100 Stat. 3991; Pub. L. 100-461, title V,

Sec. 577, Oct. 1, 1988, 102 Stat. 2268-45; Pub. L. 101-222, Sec.

2(b), Dec. 12, 1989, 103 Stat. 1896; Pub. L. 103-236, title VIII,

Sec. 822(a)(1), Apr. 30, 1994, 108 Stat. 511; Pub. L. 104-164,

title I, Secs. 141(a), (b), 142, July 21, 1996, 110 Stat. 1430,

1431, 1433; Pub. L. 106-113, div. B, Sec. 1000(a)(7) [div. B, title

XII, Sec. 1225], Nov. 29, 1999, 113 Stat. 1536, 1501A-499; Pub. L.

107-228, div. B, title XIV, Sec. 1405(a)(1), Sept. 30, 2002, 116

Stat. 1456.)

-REFTEXT-

REFERENCES IN TEXT

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.

-MISC1-

AMENDMENTS

2002 - Subsec. (d)(1), (3)(A). Pub. L. 107-228, Sec.

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, Sec. 1405(a)(1)(B), added par.

(5).

1999 - Subsec. (g). Pub. L. 106-113 added subsec. (g).

1996 - Subsec. (b). Pub. L. 104-164, Sec. 142, added subsec. (b).

Subsec. (d)(2)(A). Pub. L. 104-164, Sec. 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, Sec. 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, Sec. 141(a)(3), added

subpars. (C) and (D).

Subsec. (d)(3)(A). Pub. L. 104-164, Sec. 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, Sec. 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, Sec. 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, Sec. 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, Sec. 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, Sec. 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, Sec. 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, Sec. 1102(a)(3), which enacted amendments similar

to those provided in Pub. L. 99-83, Sec. 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, Sec. 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, Sec. 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, Sec. 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 $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, Sec. 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, Sec. 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, Sec. 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, Sec. 101(a)(2)(A),

substituted "pursuant to this paragraph" for "pursuant to this

subsection".

Subsec. (d)(2). Pub. L. 96-533, Sec. 101(a)(2)(B), substituted

"paragraph (1) of this subsection" for "this subsection".

Subsec. (d)(3). Pub. L. 96-533, Sec. 101(a)(1)(B), added par.

(3). Former par. (3) redesignated (4).

Subsec. (d)(4). Pub. L. 96-533, Sec. 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, Sec. 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, Secs. 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, Sec. 18, added subsec. (f).

1976 - Subsec. (a). Pub. L. 94-329, Secs. 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, Sec. 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, Secs. 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, Secs. 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, Sec. 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. (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, Sec. 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.

-TRANS-

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.

-MISC2-

REPORTING REQUIREMENTS

Pub. L. 105-277, div. A, Sec. 101(d) [title V, Sec. 594], Oct.

21, 1998, 112 Stat. 2681-150, 2681-215, as amended by Pub. L.

106-31, title V, Sec. 5002(c)-(e), May 21, 1999, 113 Stat. 109,

provided that:

"(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 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, Sec. 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, Sec. 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))."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2765, 2776, 2780, 2799b,

3281 of this title; title 10 section 4542.

-FOOTNOTE-

(!1) So in original. The closing parenthesis probably should not

appear.

-End-

-CITE-

22 USC Sec. 2754 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER I - FOREIGN AND NATIONAL SECURITY POLICY OBJECTIVES AND

RESTRAINTS

-HEAD-

Sec. 2754. Purposes for which military sales or leases by the

United States are authorized; report to Congress

-STATUTE-

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 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.

-SOURCE-

(Pub. L. 90-629, ch. 1, Sec. 4, Oct. 22, 1968, 82 Stat. 1322; Pub.

L. 97-113, title I, Sec. 109(b)(3), Dec. 29, 1981, 95 Stat. 1526;

Pub. L. 107-228, div. B, title XII, Sec. 1202(a), Sept. 30, 2002,

116 Stat. 1427.)

-MISC1-

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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 2753 of this title; title

12 section 635.

-End-

-CITE-

22 USC Sec. 2755 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER I - FOREIGN AND NATIONAL SECURITY POLICY OBJECTIVES AND

RESTRAINTS

-HEAD-

Sec. 2755. Discrimination prohibited if based on race, religion,

national origin, or sex

-STATUTE-

(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.

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 (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.

-SOURCE-

(Pub. L. 90-629, ch. 1, Sec. 5, as added Pub. L. 94-329, title III,

Sec. 302(b), June 30, 1976, 90 Stat. 752; amended Pub. L. 95-105,

title I, Sec. 109(a)(5), Aug. 17, 1977, 91 Stat. 846; Pub. L.

99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095; Pub. L. 103-236,

title I, Sec. 162(f), Apr. 30, 1994, 108 Stat. 405; Pub. L.

103-437, Sec. 9(a)(7), Nov. 2, 1994, 108 Stat. 4588.)

-REFTEXT-

REFERENCES IN TEXT

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.

-MISC1-

AMENDMENTS

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.

-CHANGE-

CHANGE OF NAME

Committee on Foreign Affairs of House of Representatives treated

as referring to Committee on International Relations of House of

Representatives by section 1(a) of Pub. L. 104-14, set out as a

note preceding section 21 of Title 2, The Congress.

-MISC2-

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.

-TRANS-

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.

-End-

-CITE-

22 USC Sec. 2756 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER I - FOREIGN AND NATIONAL SECURITY POLICY OBJECTIVES AND

RESTRAINTS

-HEAD-

Sec. 2756. Foreign intimidation and harassment of individuals in

United States

-STATUTE-

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.

-SOURCE-

(Pub. L. 90-629, ch. 1, Sec. 6, as added Pub. L. 97-113, title I,

Sec. 115, Dec. 29, 1981, 95 Stat. 1528.)

-End-

-CITE-

22 USC SUBCHAPTER II - FOREIGN MILITARY SALES

AUTHORIZATIONS 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER II - FOREIGN MILITARY SALES AUTHORIZATIONS

-HEAD-

SUBCHAPTER II - FOREIGN MILITARY SALES AUTHORIZATIONS

-SECREF-

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in section 2415 of this title.

-End-

-CITE-

22 USC Sec. 2761 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER II - FOREIGN MILITARY SALES AUTHORIZATIONS

-HEAD-

Sec. 2761. Sales from stocks

-STATUTE-

(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 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, 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 -

(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, 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.

(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 or to any

member government of that Organization if that Organization or

member government 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 of this chapter,

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, Sec. 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.

(g742l) 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

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

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.

-SOURCE-

(Pub. L. 90-629, ch. 2, Sec. 21, Oct. 22, 1968, 82 Stat. 1323; Pub.

L. 94-329, title II, Secs. 205, 206, June 30, 1976, 90 Stat. 736,

738; Pub. L. 95-384, Sec. 16, Sept. 26, 1978, 92 Stat. 740; Pub. L.

96-92, Sec. 12, Oct. 29, 1979, 93 Stat. 705; Pub. L. 96-533, title

I, Secs. 102, 103, 105(b)(1), 115(b)(2), Dec. 16, 1980, 94 Stat.

3132, 3134, 3140; Pub. L. 97-113, title I, Secs. 103, 104, Dec. 29,

1981, 95 Stat. 1521; Pub. L. 97-392, Sec. 3, Dec. 29, 1982, 96

Stat. 1963; Pub. L. 98-473, title I, Sec. 101(1) [title III, Sec.

301], Oct. 12, 1984, 98 Stat. 1884, 1895; Pub. L. 99-83, title I,

Secs. 107(a), 108-111, Aug. 8, 1985, 99 Stat. 196, 197; Pub. L.

100-202, Sec. 101(e) [title V, Sec. 580], Dec. 22, 1987, 101 Stat.

1329-131, 1329-181; Pub. L. 100-456, div. A, title X, Sec. 1002,

Sept. 29, 1988, 102 Stat. 2037; Pub. L. 101-165, title IX, Sec.

9104(c), Nov. 21, 1989, 103 Stat. 1152; Pub. L. 102-25, title VII,

Sec. 705(d)(1), Apr. 6, 1991, 105 Stat. 120; Pub. L. 102-484, div.

A, title I, Sec. 114, Oct. 23, 1992, 106 Stat. 2333; Pub. L.

103-236, title VII, Sec. 731(d), Apr. 30, 1994, 108 Stat. 503; Pub.

L. 104-106, div. A, title I, Sec. 112, div. D, title XLIII, Sec.

4303(a), Feb. 10, 1996, 110 Stat. 206, 658; Pub. L. 104-164, title

I, Secs. 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, Sec. 2802(d)(2), Sept. 23, 1996, 110 Stat.

2787; Pub. L. 106-113, div. B, Sec. 1000(a)(7) [div. B, title XII,

Sec. 1222], Nov. 29, 1999, 113 Stat. 1536, 1501A-498.)

-REFTEXT-

REFERENCES IN TEXT

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

(Sec. 2151 et seq.) of this title. Chapter 5 of part II of such Act

is classified generally to part V of subchapter II (Sec. 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.

-COD-

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.

-MISC1-

AMENDMENTS

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, Sec. 112(c)(2),

inserted "or to any high-income foreign country (as described in

that chapter)".

Subsec. (e)(2). Pub. L. 104-106, Sec. 4303(a), designated

existing provisions as subpar. (A) and added subpars. (B) and (C).

Subsec. (g). Pub. L. 104-164, Sec. 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, Sec. 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, Sec. 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, Sec. 152(a), added subsec. (l).

Subsec. (m). Pub. L. 104-164, Sec. 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, Sec. 9104(c)(1),

inserted reference to section 2792(b) and (c) of this title.

Subsec. (e)(1)(B). Pub. L. 101-165, Sec. 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, Sec. 9104(c)(3),

redesignated subpar. (D) as (C). Former subpar. (C) redesignated

(B).

Subsec. (e)(2). Pub. L. 101-165, Sec. 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, Sec. 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, Sec. 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, Sec. 107(a)(3), added par. (2).

Subsec. (e)(1)(A). Pub. L. 99-83, Sec. 109, inserted provisions

excluding pro rata share of fixed base operation costs.

Subsec. (g). Pub. L. 99-83, Sec. 108(b), added subsec. (g).

Subsec. (h)(1). Pub. L. 99-83, Secs. 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, Sec. 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 of this

chapter.

1981 - Subsec. (c)(2). Pub. L. 97-113, Sec. 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, Sec. 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, Sec. 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, Sec. 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, Sec. 103, authorized the President

to enter into standardization agreements with Japan, Australia, and

New Zealand.

Subsec. (h). Pub. L. 96-533, Sec. 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, Sec. 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, Secs. 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 -

"(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, Sec. 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."

-TRANS-

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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2291c, 2311, 2321i, 2751,

2765, 2767, 2775, 2776, 2777, 2791, 2792, 2794, 2795 of this title;

title 10 sections 114, 2350c, 2562.

-FOOTNOTE-

(!1) So in original. Probably should be "subparagraph".

-End-

-CITE-

22 USC Sec. 2762 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER II - FOREIGN MILITARY SALES AUTHORIZATIONS

-HEAD-

Sec. 2762. Procurement for cash sales

-STATUTE-

(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.

(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.

-SOURCE-

(Pub. L. 90-629, ch. 2, Sec. 22, Oct. 22, 1968, 82 Stat. 1323; Pub.

L. 93-189, Sec. 25(3), Dec. 17, 1973, 87 Stat. 730; Pub. L. 94-329,

title II, Sec. 207, June 30, 1976, 90 Stat. 738; Pub. L. 95-384,

Sec. 17, Sept. 26, 1978, 92 Stat. 740; Pub. L. 96-533, title I,

Sec. 105(b)(2), Dec. 16, 1980, 94 Stat. 3134; Pub. L. 104-107,

title V, Sec. 531A(a), Feb. 12, 1996, 110 Stat. 731; Pub. L.

106-113, div. B, Sec. 1000(a)(7) [div. B, title XII, Sec. 1223],

Nov. 29, 1999, 113 Stat. 1536, 1501A-498.)

-REFTEXT-

REFERENCES IN TEXT

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.

-MISC1-

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).

1976 - Subsec. (a). Pub. L. 94-329, Sec. 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, Sec. 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."

-TRANS-

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.

-MISC2-

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, Sec. 1000(a)(2) [title V, Sec. 556],

Nov. 29, 1999, 113 Stat. 1535, 1501A-100.

Pub. L. 105-277, div. A, Sec. 101(d) [title V, Sec. 536], Oct.

21, 1998, 112 Stat. 2681-150, 2681-181.

Pub. L. 105-118, title V, Sec. 535, Nov. 26, 1997, 111 Stat.

2416.

Pub. L. 104-208, div. A, title I, Sec. 101(c) [title V, Sec.

533A], Sept. 30, 1996, 110 Stat. 3009-121, 3009-153.

Pub. L. 104-107, title V, Sec. 531A(c), Feb. 12, 1996, 110 Stat.

731.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2291c, 2311, 2751, 2767,

2775, 2776, 2777, 2779, 2791, 2795 of this title.

-End-

-CITE-

22 USC Sec. 2763 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER II - FOREIGN MILITARY SALES AUTHORIZATIONS

-HEAD-

Sec. 2763. Credit sales

-STATUTE-

(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 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.

-SOURCE-

(Pub. L. 90-629, ch. 2, Sec. 23, Oct. 22, 1968, 82 Stat. 1324; Pub.

L. 93-559, Sec. 45(a)(2), Dec. 30, 1974, 88 Stat. 1813; Pub. L.

94-329, title II, Sec. 208(a), June 30, 1976, 90 Stat. 739; Pub. L.

96-533, title I, Sec. 105(b)(3), Dec. 16, 1980, 94 Stat. 3134; Pub.

L. 99-83, title I, Sec. 102, Aug. 8, 1985, 99 Stat. 195; Pub. L.

100-202, Sec. 101(e) [title V, Sec. 572], Dec. 22, 1987, 101 Stat.

1329-131, 1329-176; Pub. L. 101-513, title V, Sec. 580, Nov. 5,

1990, 104 Stat. 2045; Pub. L. 104-164, title I, Sec. 102(a)-(c),

July 21, 1996, 110 Stat. 1422.)

-REFTEXT-

REFERENCES IN TEXT

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 (Sec. 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.

-MISC1-

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."

-TRANS-

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.

-MISC2-

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:

Pub. L. 106-113, div. B, Sec. 1000(a)(2) [title V, Sec. 528],

Nov. 29, 1999, 113 Stat. 1535, 1501A-90.

Pub. L. 105-277, div. A, Sec. 101(d) [title V, Sec. 529], Oct.

21, 1998, 112 Stat. 2681-150, 2681-178.

Pub. L. 105-118, title V, Sec. 528, Nov. 26, 1997, 111 Stat.

2413.

Pub. L. 104-208, div. A, title I, Sec. 101(c) [title V, Sec.

528], Sept. 30, 1996, 110 Stat. 3009-121, 3009-149.

Pub. L. 104-107, title V, Sec. 528, Feb. 12, 1996, 110 Stat. 730.

Pub. L. 103-306, title V, Sec. 530, Aug. 23, 1994, 108 Stat.

1635.

Pub. L. 103-87, title V, Sec. 530, Sept. 30, 1993, 107 Stat. 954.

Pub. L. 102-391, title V, Sec. 558, Oct. 6, 1992, 106 Stat. 1676.

Pub. L. 101-513, title V, Sec. 561, Nov. 5, 1990, 104 Stat. 2026.

Pub. L. 101-167, title V, Sec. 571, Nov. 21, 1989, 103 Stat.

1245.

Pub. L. 100-461, title V, Sec. 580, Oct. 1, 1988, 102 Stat.

2268-48.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2291c, 2305, 2311, 2321j,

2360, 2761, 2764, 2771, 2774, 2775, 2776, 2777, 2791, 5854, 7432,

7536 of this title.

-End-

-CITE-

22 USC Sec. 2764 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER II - FOREIGN MILITARY SALES AUTHORIZATIONS

-HEAD-

Sec. 2764. Guaranties

-STATUTE-

(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.

-SOURCE-

(Pub. L. 90-629, ch. 2, Sec. 24, Oct. 22, 1968, 82 Stat. 1324; Pub.

L. 93-189, Sec. 25(4), Dec. 17, 1973, 87 Stat. 730; Pub. L. 93-559,

Sec. 45(a)(3), (4), Dec. 30, 1974, 88 Stat. 1814; Pub. L. 96-533,

title I, Secs. 104(a), 105(b)(3), Dec. 16, 1980, 94 Stat. 3132,

3134; Pub. L. 99-83, title I, Sec. 106(b), (c), Aug. 8, 1985, 99

Stat. 196; Pub. L. 100-71, title I, July 11, 1987, 101 Stat. 409.)

-MISC1-

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, Sec. 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, Sec. 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, Sec. 45(a)(3), inserted

"other than the Federal Financing Bank" in parenthetical text.

Subsec. (c). Pub. L. 93-559, Sec. 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]."

-TRANS-

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.

-MISC2-

FOREIGN MILITARY SALES DEBT REFORM

Pub. L. 102-145, Sec. 118, as added by Pub. L. 102-266, Sec. 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 "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, Sec.

101(e) [title III, Sec. 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, Sec. 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, Sec. 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, Sec. 118, as added

by Pub. L. 102-266, Sec. 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 [now

Committee on International Relations] 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, Sec. 118, as added by Pub. L.

102-266, Sec. 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].

"(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."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2763, 2765, 2771, 2774,

2775, 2776, 2777, 2791, 3402 of this title.

-End-

-CITE-

22 USC Sec. 2765 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER II - FOREIGN MILITARY SALES AUTHORIZATIONS

-HEAD-

Sec. 2765. Annual estimate and justification for sales program

-STATUTE-

(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 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 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;

(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 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.

-SOURCE-

(Pub. L. 90-629, ch. 2, Sec. 25, as added Pub. L. 94-329, title II,

Sec. 209(a), June 30, 1976, 90 Stat. 739; amended Pub. L. 95-384,

Sec. 18, Sept. 26, 1978, 92 Stat. 740; Pub. L. 96-92, Secs. 13, 14,

Oct. 29, 1979, 93 Stat. 706; Pub. L. 96-533, title I, Secs. 104(c),

107(d), Dec. 16, 1980, 94 Stat. 3133, 3137; Pub. L. 97-113, title

VII, Sec. 732, Dec. 29, 1981, 95 Stat. 1557; Pub. L. 99-83, title

I, Secs. 112, 113, Aug. 8, 1985, 99 Stat. 198; Pub. L. 104-164,

title I, Sec. 102(d), July 21, 1996, 110 Stat. 1423; Pub. L.

105-118, title V, Sec. 519, Nov. 26, 1997, 111 Stat. 2411; Pub. L.

107-228, div. B, title XII, Sec. 1232, Sept. 30, 2002, 116 Stat.

1433.)

-REFTEXT-

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.

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 (Sec. 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.

-MISC1-

AMENDMENTS

2002 - Subsec. (a)(13), (14). Pub. L. 107-228 added par. (13) and

redesignated former par. (13) as (14).

1997 - Subsec. (a). Pub. L. 105-118, Sec. 519(1), substituted

"appropriate congressional committees" for "Congress" in

introductory provisions.

Subsec. (b). Pub. L. 105-118, Sec. 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, Sec. 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, Sec. 113(1), substituted

"Except as provided in subsection (d) of this section, no" for

"No".

Subsec. (a)(5). Pub. L. 99-83, Sec. 112(a), designated existing

provisions as subpar. (A) and added subpar. (B).

Subsec. (d). Pub. L. 99-83, Sec. 112(b), added subsec. (d)

defining "cash flow financing".

Pub. L. 99-83, Sec. 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 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, Sec. 104(c), added

par. (3) and redesignated former pars. (3) and (4) as (4) and (5),

respectively.

Subsec. (d)(1). Pub. L. 96-533, Sec. 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, Sec. 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, Sec. 14, added subsec. (e).

1978 - Subsec. (c). Pub. L. 95-384, Sec. 18(b), substituted

"subsection (a) or (b) of this section" for "this section".

Subsec. (d). Pub. L. 95-384, Sec. 18(a), 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.

-TRANS-

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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 2763 of this title.

-FOOTNOTE-

(!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.

-End-

-CITE-

22 USC Sec. 2766 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER II - FOREIGN MILITARY SALES AUTHORIZATIONS

-HEAD-

Sec. 2766. Security assistance surveys

-STATUTE-

(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.

(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.

-SOURCE-

(Pub. L. 90-629, ch. 2, Sec. 26, as added Pub. L. 95-384, Sec. 19,

Sept. 26, 1978, 92 Stat. 740; amended Pub. L. 99-83, title I, Sec.

114, Aug. 8, 1985, 99 Stat. 198; Pub. L. 103-437, Sec. 9(a)(7),

Nov. 2, 1994, 108 Stat. 4588.)

-MISC1-

AMENDMENTS

1994 - Subsec. (c). Pub. L. 103-437 substituted "Foreign Affairs"

for "International Relations".

1985 - Pub. L. 99-83, Sec. 114(a)(1), substituted "Security

assistance" for "Defense requirement" in section catchline.

Subsecs. (a), (b). Pub. L. 99-83, Sec. 114(a)(2), substituted

"security assistance" for "defense requirement" wherever appearing.

Subsec. (c). Pub. L. 99-83, Sec. 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, Sec. 114(a)(3), added subsec. (d).

-CHANGE-

CHANGE OF NAME

Committee on Foreign Affairs of House of Representatives treated

as referring to Committee on International Relations of House of

Representatives by section 1(a) of Pub. L. 104-14, set out as a

note preceding section 21 of Title 2, The Congress.

-MISC2-

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.

-End-

-CITE-

22 USC Sec. 2767 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER II - FOREIGN MILITARY SALES AUTHORIZATIONS

-HEAD-

Sec. 2767. Authority of President to enter into cooperative

projects with friendly foreign countries

-STATUTE-

(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;

(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

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.

(2) Omitted.

-SOURCE-

(Pub. L. 90-629, ch. 2, Sec. 27, as added Pub. L. 96-92, Sec. 15,

Oct. 29, 1979, 93 Stat. 706; amended Pub. L. 99-83, title I, Sec.

115(a), Aug. 8, 1985, 99 Stat. 199; Pub. L. 99-145, title XI, Sec.

1102(a)(1), (5), Nov. 8, 1985, 99 Stat. 708, 710; Pub. L. 99-661,

div. A, title XI, Sec. 1103(a), title XIII, Sec. 1342(e), Nov. 14,

1986, 100 Stat. 3962, 3991; Pub. L. 100-180, div. A, title X, Sec.

1022, Dec. 4, 1987, 101 Stat. 1144; Pub. L. 102-484, div. A, title

VIII, Sec. 843(a), Oct. 23, 1992, 106 Stat. 2468.)

-REFTEXT-

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.

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.

-COD-

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.

-MISC1-

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, Sec. 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, Sec. 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, Sec. 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, Sec. 1103(a)(1)(A)(ii)-(iv),

added par. (2) and redesignated former par. (2) as (3).

Subsec. (f)(3). Pub. L. 99-661, Sec. 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, Sec. 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, Sec. 1103(a)(1)(D), added subsec.

(j).

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, Sec. 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.

-CHANGE-

CHANGE OF NAME

Committee on Foreign Affairs of House of Representatives treated

as referring to Committee on International Relations of House of

Representatives by section 1(a) of Pub. L. 104-14, set out as a

note preceding section 21 of Title 2, The Congress.

-MISC2-

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.

-TRANS-

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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2753, 2791 of this title;

title 10 sections 2350b, 4542.

-FOOTNOTE-

(!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.

-End-

-CITE-

22 USC Sec. 2767a 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER II - FOREIGN MILITARY SALES AUTHORIZATIONS

-HEAD-

Sec. 2767a. Repealed. Pub. L. 101-189, div. A, title IX, Sec.

931(d)(2), Nov. 29, 1989, 103 Stat. 1535

-MISC1-

Section, Pub. L. 99-661, div. A, title XI, Sec. 1105, Nov. 14,

1986, 100 Stat. 3965; Pub. L. 100-456, div. A, title X, Sec. 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.

-End-

-CITE-

22 USC Sec. 2768 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER II - FOREIGN MILITARY SALES AUTHORIZATIONS

-HEAD-

Sec. 2768. Repealed. Pub. L. 104-106, div. A, title X, Sec.

1064(a), Feb. 10, 1996, 110 Stat. 445

-MISC1-

Section, Pub. L. 90-629, ch. 2, Sec. 28, as added Pub. L. 96-92,

Sec. 16(a), Oct. 29, 1979, 93 Stat. 708; amended Pub. L. 97-113,

title I, Sec. 101(b), Dec. 29, 1981, 95 Stat. 1520; Pub. L.

100-461, title V, Sec. 588(a), Oct. 1, 1988, 102 Stat. 2268-51,

related to reports on price and availability estimates.

-End-

-CITE-

22 USC SUBCHAPTER II-A - FOREIGN MILITARY CONSTRUCTION

SALES 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER II09A - FOREIGN MILITARY CONSTRUCTION SALES

-HEAD-

SUBCHAPTER II-A - FOREIGN MILITARY CONSTRUCTION SALES

-End-

-CITE-

22 USC Sec. 2769 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER II09A - FOREIGN MILITARY CONSTRUCTION SALES

-HEAD-

Sec. 2769. Foreign military construction sales

-STATUTE-

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.

-SOURCE-

(Pub. L. 90-629, ch. 2A, Sec. 29, as added Pub. L. 96-533, title I,

Sec. 105(a), Dec. 16, 1980, 94 Stat. 3133.)

-TRANS-

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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2762, 2776, 2777, 2779,

2791, 2794 of this title.

-End-

-CITE-

22 USC SUBCHAPTER II-B - SALES TO UNITED STATES COMPANIES

FOR INCORPORATION INTO END

ITEMS 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER II09B - SALES TO UNITED STATES COMPANIES FOR

INCORPORATION INTO END ITEMS

-HEAD-

SUBCHAPTER II-B - SALES TO UNITED STATES COMPANIES FOR

INCORPORATION INTO END ITEMS

-SECREF-

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in section 2761 of this title.

-End-

-CITE-

22 USC Sec. 2770 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER II09B - SALES TO UNITED STATES COMPANIES FOR

INCORPORATION INTO END ITEMS

-HEAD-

Sec. 2770. General authority

-STATUTE-

(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

chapter: 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.

-SOURCE-

(Pub. L. 90-629, ch. 2B, Sec. 30, as added Pub. L. 97-392, Sec. 1,

Dec. 29, 1982, 96 Stat. 1962; amended Pub. L. 101-165, title IX,

Sec. 9097, Nov. 21, 1989, 103 Stat. 1150.)

-MISC1-

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".

-TRANS-

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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 2791 of this title.

-End-

-CITE-

22 USC SUBCHAPTER II-C - EXCHANGE OF TRAINING AND RELATED

SUPPORT 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER II09C - EXCHANGE OF TRAINING AND RELATED SUPPORT

-HEAD-

SUBCHAPTER II-C - EXCHANGE OF TRAINING AND RELATED SUPPORT

-End-

-CITE-

22 USC Sec. 2770a 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER II09C - EXCHANGE OF TRAINING AND RELATED SUPPORT

-HEAD-

Sec. 2770a. Exchange of training and related support

-STATUTE-

(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.

-SOURCE-

(Pub. L. 90-629, ch. 2C, Sec. 30A, as added Pub. L. 99-83, title I,

Sec. 116, Aug. 8, 1985, 99 Stat. 201.)

-MISC1-

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.

-TRANS-

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.

-End-

-CITE-

22 USC SUBCHAPTER III - MILITARY EXPORT CONTROLS 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER III - MILITARY EXPORT CONTROLS

-HEAD-

SUBCHAPTER III - MILITARY EXPORT CONTROLS

-End-

-CITE-

22 USC Sec. 2771 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER III - MILITARY EXPORT CONTROLS

-HEAD-

Sec. 2771. Military sales authorizations and ceilings

-STATUTE-

(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.

-SOURCE-

(Pub. L. 90-629, ch. 3, Sec. 31, Oct. 22, 1968, 82 Stat. 1324; Pub.

L. 91-672, Sec. 2, Jan. 12, 1971, 84 Stat. 2053; Pub. L. 92-226,

pt. IV, Sec. 401(a), (b), Feb. 7, 1972, 86 Stat. 32; Pub. L.

93-189, Sec. 25(5), (6), Dec. 17, 1973, 87 Stat. 730; Pub. L.

93-559, Sec. 45(a)(6), (7), Dec. 30, 1974, 88 Stat. 1815; Pub. L.

94-329, title II, Sec. 210(a)-(c)(1), June 30, 1976, 90 Stat. 740;

Pub. L. 95-92, Sec. 19, Aug. 4, 1977, 91 Stat. 623; Pub. L. 95-384,

Sec. 20, Sept. 26, 1978, 92 Stat. 741; Pub. L. 96-92, Sec. 17(a),

Oct. 29, 1979, 93 Stat. 708; Pub. L. 96-533, title I, Secs. 104(d),

105(b)(3), 106(a)-(c), Dec. 16, 1980, 94 Stat. 3133-3136; Pub. L.

97-113, title I, Sec. 105, Dec. 29, 1981, 95 Stat. 1521; Pub. L.

98-151, Sec. 101(b)(2), Nov. 14, 1983, 97 Stat. 969, 970; Pub. L.

99-83, title I, Sec. 101(a), (b), Aug. 8, 1985, 99 Stat. 193; Pub.

L. 101-513, title V, Sec. 596(c), Nov. 5, 1990, 104 Stat. 2062;

Pub. L. 104-164, title I, Secs. 101, 104(b)(2)(C), July 21, 1996,

110 Stat. 1422, 1427.)

-MISC1-

AMENDMENTS

1996 - Subsec. (c). Pub. L. 104-164, Sec. 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, Sec. 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 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, Sec. 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, Sec. 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, Sec. 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, Sec. 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, Sec. 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, Sec. 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, Secs. 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, Sec. 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, Secs. 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, Sec. 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".

Subsec. (b). Pub. L. 96-92, Sec. 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, Sec. 17(a)(3), substituted "fiscal

year 1980" for "fiscal year 1979".

Subsec. (d). Pub. L. 96-92, Sec. 17(a)(4), substituted

"$250,000,000" for "$150,000,000".

1978 - Subsec. (a). Pub. L. 95-384, Sec. 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, Sec. 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, Sec. 20(c), substituted "fiscal year

1979" for "fiscal year 1978".

Subsec. (d). Pub. L. 95-384, Sec. 20(d), substituted

"$150,000,000" for "$100,000,000".

1977 - Subsec. (a). Pub. L. 95-92, Sec. 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, Sec. 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, Sec. 19(3), substituted "year 1978"

for "years 1976 and 1977" and struck out "each" before "such year".

1976 - Subsec. (a). Pub. L. 94-329, Sec. 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, Sec. 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, Sec. 210(c)(1), added subsecs.

(c) and (d).

1974 - Subsec. (a). Pub. L. 93-559, Sec. 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, Sec. 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, Sec. 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, Sec. 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, Sec. 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, Sec. 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, Sec. 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.

Subsec. (b). Pub. L. 91-672, Sec. 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."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2442, 3402 of this title.

-End-

-CITE-

22 USC Sec. 2772 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER III - MILITARY EXPORT CONTROLS

-HEAD-

Sec. 2772. Repealed. Pub. L. 102-429, title I, Sec. 112(e), Oct.

21, 1992, 106 Stat. 2195

-MISC1-

Section, Pub. L. 90-629, ch. 3, Sec. 32, Oct. 22, 1968, 82 Stat.

1325, prohibited certain military export financing by Export-Import

Bank.

-End-

-CITE-

22 USC Sec. 2773 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER III - MILITARY EXPORT CONTROLS

-HEAD-

Sec. 2773. Restraint in arms sales to Sub-Saharan Africa

-STATUTE-

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.

-SOURCE-

(Pub. L. 90-629, ch. 3, Sec. 33, Oct. 22, 1968, 82 Stat. 1325; Pub.

L. 91-672, Sec. 3, Jan. 12, 1971, 84 Stat. 2053; Pub. L. 92-226,

pt. IV, Sec. 401(c), (d), Feb. 7, 1972, 86 Stat. 32; Pub. L.

93-189, Sec. 25(7)-(9), Dec. 17, 1973, 87 Stat. 731; Pub. L.

93-559, Sec. 45(a)(8), Dec. 30, 1974, 88 Stat. 1815; Pub. L. 96-92,

Sec. 18, Oct. 29, 1979, 93 Stat. 709.)

-MISC1-

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, Sec. 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, Sec. 45(a)(8)(B), (C), added subsec.

(b) and redesignated former subsec. (b) as (a).

1973 - Subsec. (a). Pub. L. 93-189, Sec. 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, Sec. 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 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, Sec. 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, Sec. 401(c), substituted

"$100,000,000" for "$75,000,000".

Subsec. (c). Pub. L. 92-226, Sec. 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, Sec. 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, Sec. 3(2), made fiscal year 1969

ceiling of $40,000,000 for African countries a continuing ceiling

applicable in each fiscal year.

-End-

-CITE-

22 USC Sec. 2774 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER III - MILITARY EXPORT CONTROLS

-HEAD-

Sec. 2774. Foreign military sales credit standards

-STATUTE-

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.

-SOURCE-

(Pub. L. 90-629, ch. 3, Sec. 34, Oct. 22, 1968, 82 Stat. 1325.)

-TRANS-

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.

-End-

-CITE-

22 USC Sec. 2775 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER III - MILITARY EXPORT CONTROLS

-HEAD-

Sec. 2775. Foreign military sales to less developed countries

-STATUTE-

(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 Agricultural Trade Development and

Assistance Act of 1954, 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, Sec. 45(a)(5), Dec. 30, 1974, 88

Stat. 1814.

-SOURCE-

(Pub. L. 90-629, ch. 3, Sec. 35, Oct. 22, 1968, 82 Stat. 1325; Pub.

L. 93-559, Sec. 45(a)(5), Dec. 30, 1974, 88 Stat. 1814.)

-REFTEXT-

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 (Sec. 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 Agricultural Trade Development and Assistance Act of 1954, as

amended, referred to in subsec. (a), is act July 10, 1954, ch. 469,

68 Stat. 454, as amended, which is classified principally to

chapter 41 (Sec. 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.

-MISC1-

AMENDMENTS

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.

-TRANS-

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.

-End-

-CITE-

22 USC Sec. 2776 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER III - MILITARY EXPORT CONTROLS

-HEAD-

Sec. 2776. Reports and certifications to Congress on military

exports

-STATUTE-

(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;

(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

(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;

(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.

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, 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, 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.

(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, 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 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, 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, or New Zealand that

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.

(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, 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.

(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.

-SOURCE-

(Pub. L. 90-629, ch. 3, Sec. 36, Oct. 22, 1968, 82 Stat. 1326; Pub.

L. 93-189, Sec. 25(10), Dec. 17, 1973, 87 Stat. 731; Pub. L.

93-559, Sec. 45(a)(5), Dec. 30, 1974, 88 Stat. 1814; Pub. L.

94-329, title II, Sec. 211(a), title VI, Sec. 604(a), June 30,

1976, 90 Stat. 740, 766; Pub. L. 95-384, Sec. 21, Sept. 26, 1978,

92 Stat. 741; Pub. L. 96-92, Secs. 16(b), 19(a), (c), 20(b), Oct.

29, 1979, 93 Stat. 708-710; Pub. L. 96-533, title I, Secs. 105(c),

(d), 107(b), 109(f), Dec. 16, 1980, 94 Stat. 3134, 3136, 3138; Pub.

L. 97-113, title I, Secs. 101(c)-(e), 102(b), 109(d)(2), Dec. 29,

1981, 95 Stat. 1520, 1526; Pub. L. 99-83, title I, Secs. 117, 118,

title XII, Sec. 1209(c), Aug. 8, 1985, 99 Stat. 202, 203, 279; Pub.

L. 99-247, Sec. 1(b), (c), Feb. 12, 1986, 100 Stat. 9; Pub. L.

101-222, Secs. 3(b), 7, Dec. 12, 1989, 103 Stat. 1896, 1899; Pub.

L. 103-236, title VII, Secs. 732, 735(a), (b), Apr. 30, 1994, 108

Stat. 503, 505, 506; Pub. L. 103-437, Sec. 9(a)(7), Nov. 2, 1994,

108 Stat. 4588; Pub. L. 104-164, title I, Secs. 141(c), (d), 155,

July 21, 1996, 110 Stat. 1431, 1432, 1440; Pub. L. 104-201, div. A,

title X, Sec. 1045(a), Sept. 23, 1996, 110 Stat. 2644; Pub. L.

105-277, div. G, subdiv. A, title XII, Sec. 1225(a)(1), Oct. 21,

1998, 112 Stat. 2681-773; Pub. L. 106-113, div. B, Sec. 1000(a)(7)

[div. B, title XII, Secs. 1224, 1245, title XIII, Secs. 1301,

1302(b)], Nov. 29, 1999, 113 Stat. 1536, 1501A-498, 1501A-502,

1501A-510, 1501A-511; Pub. L. 106-280, title I, Sec. 102(c)(1),

Oct. 6, 2000, 114 Stat. 849; Pub. L. 107-228, div. B, title XII,

Secs. 1205(a), 1262(c), title XIV, Sec. 1405(a)(2), Sept. 30, 2002,

116 Stat. 1427, 1434, 1457.)

-REFTEXT-

REFERENCES IN TEXT

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 (Sec. 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, Sec. 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, Sec. 1064(a), Feb.

10, 1996, 110 Stat. 445.

-MISC1-

AMENDMENTS

2002 - Subsec. (a)(7) to (13). Pub. L. 107-228, Sec. 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

"(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, Sec. 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, Sec. 1405(a)(2)(A)(ii),

substituted "Subject to paragraph (6), if" for "If".

Subsec. (b)(6). Pub. L. 107-228, Sec. 1405(a)(2)(A)(iii), added

par. (6).

Subsec. (c)(1). Pub. L. 107-228, Sec. 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, Sec. 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, Sec. 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, Sec. 1000(a)(7) [title

XIII, Sec. 1302(b)], added par. (13).

Subsec. (b)(1). Pub. L. 106-113, Sec. 1000(a)(7) [title XIII,

Sec. 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, Sec. 1000(a)(7) [title XII,

Sec. 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, Sec. 1000(a)(7) [title XIII,

Sec. 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, Sec. 1000(a)(7) [title XII, Sec. 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, Sec. 1000(a)(7) [title XII, Sec.

1224], added par. (4).

Subsec. (e). Pub. L. 106-113, Sec. 1000(a)(7) [title XII, Sec.

1245(b)(1)], redesignated subsec. (e), relating to publication of

arms sales certifications, as (f).

Subsec. (f). Pub. L. 106-113, Sec. 1000(a)(7) [title XIII, Sec.

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, Sec. 1000(a)(7) [title XII, Sec. 1245(b)(1)],

redesignated subsec. (e), relating to publication of arms sales

certifications, as (f).

Subsec. (g). Pub. L. 106-113, Sec. 1000(a)(7) [title XII, Sec.

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, Sec. 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

"(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, Sec. 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, Sec. 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, Secs. 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, Sec. 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, Sec. 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, Sec. 732(b)(2). See

below.

Pub. L. 103-236, Sec. 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, Sec. 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, Sec. 732(c), added subsec. (e).

1989 - Subsec. (a). Pub. L. 101-222, Sec. 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, Sec. 7(a), added pars.

(10) and (11).

Subsec. (b)(1)(D)(ii) to (v). Pub. L. 101-222, Sec. 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, Sec. 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, Sec. 1(b)(2), inserted "joint"

before "resolution" in four places.

Subsec. (b)(3). Pub. L. 99-247, Sec. 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, Sec. 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, Sec. 1(c)(2), inserted "joint"

before "resolution".

Subsec. (c)(3)(B). Pub. L. 99-247, Sec. 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, Sec. 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.

Subsec. (a)(6). Pub. L. 99-83, Sec. 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, Sec. 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, Sec. 118(1), inserted requirement

respecting detailed justification of reasons for sale of sensitive

articles or services.

Subsec. (b)(5). Pub. L. 99-83, Sec. 118(2), added par. (5).

1981 - Subsec. (a)(10). Pub. L. 97-113, Sec. 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, Secs. 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, Sec. 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, Sec. 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, Sec. 101(e), substituted reference

to subsec. "(c)(1)" for "(c)" of this section.

1980 - Subsec. (a)(9), (10). Pub. L. 96-533, Secs. 105(c),

109(f), added pars. (9) and (10).

Subsec. (b)(1). Pub. L. 96-533, Sec. 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, Sec. 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, Sec. 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, Secs. 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, Sec. 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, Secs. 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, Secs. 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 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, Sec. 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, Sec. 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-

CHANGE OF NAME

Committee on Foreign Affairs of House of Representatives treated

as referring to Committee on International Relations of House of

Representatives by section 1(a) of Pub. L. 104-14, set out as a

note preceding section 21 of Title 2, The Congress.

-MISC2-

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]."

-TRANS-

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.

-MISC3-

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, Sec. 734(a)(11), Dec. 29,

1981, 95 Stat. 1560.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2373, 2753, 2766, 2767,

2778, 3402 of this title; title 10 section 2533a.

-FOOTNOTE-

(!1) See References in Text note below.

-End-

-CITE-

22 USC Sec. 2777 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER III - MILITARY EXPORT CONTROLS

-HEAD-

Sec. 2777. Fiscal provisions relating to foreign military sales

credits

-STATUTE-

(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

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.

-SOURCE-

(Pub. L. 90-629, ch. 3, Sec. 37, Oct. 22, 1968, 82 Stat. 1326; Pub.

L. 93-189, Sec. 25(11), Dec. 17, 1973, 87 Stat. 731; Pub. L.

96-533, title I, Secs. 104(b), 105(e)(1), Dec. 16, 1980, 94 Stat.

3133, 3135.)

-MISC1-

AMENDMENTS

1980 - Subsec. (a). Pub. L. 96-533, Sec. 105(e)(1), inserted

reference to section 2769 of this title.

Subsec. (c). Pub. L. 96-533, Sec. 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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 2291c of this title; title

10 section 114.

-End-

-CITE-

22 USC Sec. 2778 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER III - MILITARY EXPORT CONTROLS

-HEAD-

Sec. 2778. Control of arms exports and imports

-STATUTE-

(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 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.

(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

or section 2779 of this title, or any rule or regulation issued

under either section, 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 ten years, or

both.

(d) Repealed. Pub. L. 96-70, title III, Sec. 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, 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

(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.

(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

U.S.C. App. 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 U.S.C.

App. 16),

(v) section 206 of the International Emergency Economic

Powers Act (relating to foreign assets controls; 50 U.S.C. App.

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)),

(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), or

(xi) section 603(b) or (c) of the Comprehensive

Anti-Apartheid Act of 1986 (22 U.S.C. 5113(b) and (c));

(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.

(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

(ii) be implemented by the United States and the foreign

country in a manner that is legally-binding under their

domestic laws.

(B) Exception

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.

(2) Requirements of bilateral agreement

A bilateral agreement referred to (!2) 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);

(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.

-SOURCE-

(Pub. L. 90-629, ch. 3, Sec. 38, as added Pub. L. 94-329, title II,

Sec. 212(a)(1), June 30, 1976, 90 Stat. 744; amended Pub. L. 95-92,

Sec. 20, Aug. 4, 1977, 91 Stat. 623; Pub. L. 96-70, title III, Sec.

3303(a)(4), Sept. 27, 1979, 93 Stat. 499; Pub. L. 96-72, Sec.

22(a), Sept. 29, 1979, 93 Stat. 535; Pub. L. 96-92, Sec. 21, Oct.

29, 1979, 93 Stat. 710; Pub. L. 96-533, title I, Sec. 107(a), (c),

Dec. 16, 1980, 94 Stat. 3136; Pub. L. 97-113, title I, Secs. 106,

107, Dec. 29, 1981, 95 Stat. 1522; Pub. L. 99-64, title I, Sec.

123(a), July 12, 1985, 99 Stat. 156; Pub. L. 99-83, title I, Sec.

119(a), (b), Aug. 8, 1985, 99 Stat. 203, 204; Pub. L. 100-202, Sec.

101(b) [title VIII, Sec. 8142(a)], Dec. 22, 1987, 101 Stat.

1329-43, 1329-88; Pub. L. 100-204, title XII, Sec. 1255, Dec. 22,

1987, 101 Stat. 1429; Pub. L. 101-222, Secs. 3(a), 6, Dec. 12,

1989, 103 Stat. 1896, 1899; Pub. L. 103-236, title VII, Sec.

714(a)(1), Apr. 30, 1994, 108 Stat. 497; Pub. L. 104-164, title I,

Secs. 151(a), 156, July 21, 1996, 110 Stat. 1437, 1440; Pub. L.

105-277, div. G, subdiv. A, title XII, Sec. 1225(a)(2), Oct. 21,

1998, 112 Stat. 2681-773; Pub. L. 106-113, div. B, Sec. 1000(a)(7)

[div. B, title XIII, Secs. 1302(a), 1303, 1304], Nov. 29, 1999, 113

Stat. 1536, 1501A-510, 1501A-511; Pub. L. 106-280, title I, Sec.

102(a), (b), Oct. 6, 2000, 114 Stat. 846, 848; Pub. L. 107-228,

div. B, title XIV, Sec. 1406, Sept. 30, 2002, 116 Stat. 1458.)

-REFTEXT-

REFERENCES IN TEXT

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.

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.

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 (Sec. 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.

-MISC1-

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

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, Sec. 102(b), designated

existing provisions as par. (1) and added pars. (2) and (3).

Subsec. (j). Pub. L. 106-280, Sec. 102(a), added subsec. (j).

1999 - Subsec. (e). Pub. L. 106-113, Sec. 1000(a)(7) [title XIII,

Sec. 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, Sec. 1000(a)(7) [title

XIII, Sec. 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, Sec. 1000(a)(7) [title XIII, Sec.

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, Sec. 151(a),

designated existing provisions of subpar. (A) as cl. (i) and added

cl. (ii).

Subsec. (e). Pub. L. 104-164, Sec. 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, Sec. 3(a), inserted

"support international terrorism," after "arms race,".

Subsec. (h). Pub. L. 101-222, Sec. 6, added subsec. (h).

1987 - Subsec. (b)(1). Pub. L. 100-204, Sec. 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, Sec. 1255(c), added par. (3).

Subsec. (g). Pub. L. 100-204, Sec. 1255(a), added subsec. (g).

1985 - Subsec. (c). Pub. L. 99-83, Sec. 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, Sec. 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, Sec. 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, Sec. 107, added subsec. (f).

1980 - Subsec. (a)(3). Pub. L. 96-533, Sec. 107(c), added par.

(3).

Subsec. (b)(3). Pub. L. 96-533, Sec. 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.

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]."

EFFECTIVE DATE OF 1987 AMENDMENT

Section 101(b) [title VIII, Sec. 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.

-TRANS-

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.

-MISC2-

INFORMATION MANAGEMENT PRIORITIES

Pub. L. 107-228, div. B, title XIV, Sec. 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.]

EFFECTIVE REGULATION OF SATELLITE EXPORT ACTIVITIES

Pub. L. 106-113, div. B, Sec. 1000(a)(7) [div. B, title XIII,

Sec. 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, Secs. 1402-1405, 1408-1412,

Oct. 5, 1999, 113 Stat. 798-804, as amended by Pub. L. 106-398,

Sec. 1 [[div. A], title XII, Sec. 1204], Oct. 30, 2000, 114 Stat.

1654, 1654A-325; Pub. L. 107-107, div. A, title X, Sec. 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

"(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:

"(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;

"(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 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).

"(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, 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.]

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, Sec.

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

"(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.

"(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.

"(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, Sec. 146(b), Oct. 21, 1998,

112 Stat. 2681-610, provided that: "The amendments made by this

section [amending Pub. L. 105-261, Sec. 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]."]

[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.]

LANDMINE EXPORT MORATORIUM

Pub. L. 102-484, div. A, title XIII, Sec. 1365, Oct. 23, 1992,

106 Stat. 2561, as amended by Pub. L. 103-160, div. A, title XI,

Sec. 1182(c)(3), title XIV, Sec. 1423(c), Nov. 30, 1993, 107 Stat.

1772, 1832; Pub. L. 104-107, title V, Sec. 558, Feb. 12, 1996, 110

Stat. 743; Pub. L. 104-208, div. A, title I, Sec. 101(c) [title V,

Sec. 556], Sept. 30, 1996, 110 Stat. 3009-121, 3009-161; Pub. L.

106-113, div. B, Sec. 1000(a)(2) [title V, Sec. 553], Nov. 29,

1999, 113 Stat. 1535, 1501A-99; Pub. L. 107-115, title V, Sec. 548,

Jan. 10, 2002, 115 Stat. 2156, 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 16-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;

"(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 1000(a)(2) [title V, Sec. 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.

"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;

"(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;

"(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, Sec. 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,

set out as a note 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, Sec. 3, Aug. 19, 1994, 59 F.R. 43437,

formerly set out as a note under section 1701 of Title 50, prior to

revocation by Ex. Ord. No. 13206, Sec. 1, Apr. 4, 2001, 66 F.R.

18397.

Ex. Ord. No. 12923, Sec. 3, June 30, 1994, 59 F.R. 34551,

formerly set out as a note under section 1701 of Title 50, prior to

revocation by Ex. Ord. No. 12924, Sec. 4, Aug. 19, 1994, 59 F.R.

43438.

Ex. Ord. No. 12867, Sec. 3, Sept. 30, 1993, 58 F.R. 51747, set

out as a note under section 1701 of Title 50.

Ex. Ord. No. 12730, Sec. 3, Sept. 30, 1990, 55 F.R. 40373,

formerly set out as a note 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, Sec. 3, July 12, 1985, 50 F.R. 28757, set out

as a note under section 1701 of Title 50.

Ex. Ord. No. 12470, Sec. 3, Mar. 30, 1984, 49 F.R. 13099,

formerly set out as a note 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, Sec. 3, Dec. 20, 1983, 48 F.R. 56563, set out

as a note under section 1701 of Title 50.

Ex. Ord. No. 12444, Sec. 3, Oct. 14, 1983, 48 F.R. 48215,

formerly set out as a note under section 1701 of Title 50, prior to

revocation by Ex. Ord. No. 12451, Dec. 20, 1983, 48 F.R. 56563.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2291-5, 2304, 2373, 2415,

2751, 2753, 2767, 2770, 2776, 2779, 2780, 2785, 2791, 2794, 2797a,

7203 of this title; title 10 sections 2350, 2563, 4543, 4687; title

12 section 635; title 18 sections 1956, 2516; title 19 section

1583; title 26 sections 995, 5847; title 50 sections 415, 2332;

title 50 App. sections 2410, 2410b, 2416.

-FOOTNOTE-

(!1) So in original. There are two subpars. designated "(B)".

(!2) So in original. Probably should be followed by "in".

-End-

-CITE-

22 USC Sec. 2778a 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER III - MILITARY EXPORT CONTROLS

-HEAD-

Sec. 2778a. Exportation of uranium depleted in the isotope 235

-STATUTE-

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.].

-SOURCE-

(Pub. L. 96-533, title I, Sec. 110, Dec. 16, 1980, 94 Stat. 3138.)

-REFTEXT-

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, Sec. 1,

68 Stat. 921, and amended, which is classified generally to chapter

23 (Sec. 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 (Sec. 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 (Sec. 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.

-COD-

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.

-End-

-CITE-

22 USC Sec. 2779 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER III - MILITARY EXPORT CONTROLS

-HEAD-

Sec. 2779. Fees of military sales agents

-STATUTE-

(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; or

(2) commercial sales of defense articles or defense services

licensed or approved under section 2778 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 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.

-SOURCE-

(Pub. L. 90-629, ch. 3, Sec. 39, as added Pub. L. 94-329, title VI,

Sec. 604(b), June 30, 1976, 90 Stat. 767; amended Pub. L. 96-533,

title I, Sec. 105(e)(2), Dec. 16, 1980, 94 Stat. 3135.)

-MISC1-

AMENDMENTS

1980 - Subsec. (a)(1). Pub. L. 96-533, Sec. 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, Sec. 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.

-TRANS-

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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2776, 2778 of this title.

-End-

-CITE-

22 USC Sec. 2779a 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER III - MILITARY EXPORT CONTROLS

-HEAD-

Sec. 2779a. Prohibition on incentive payments

-STATUTE-

(a) In general

No United States supplier of defense articles or services sold or

licensed under this chapter, 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

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).

-SOURCE-

(Pub. L. 90-629, ch. 3, Sec. 39A, as added Pub. L. 103-236, title

VII, Sec. 733, Apr. 30, 1994, 108 Stat. 504; amended Pub. L.

106-113, div. B, Sec. 1000(a)(7) [div. B, title XII, Sec. 1246,

title XIII, Sec. 1303], Nov. 29, 1999, 113 Stat. 1536, 1501A-502,

1501A-511.)

-REFTEXT-

REFERENCES IN TEXT

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.

-MISC1-

AMENDMENTS

1999 - Subsec. (a). Pub. L. 106-113, Sec. 1000(a)(7) [title XII,

Sec. 1246(a)], inserted "or licensed" after "sold" and "or export"

after "sale".

Subsec. (c). Pub. L. 106-113, Sec. 1000(a)(7) [title XIII, Sec.

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, Sec. 1000(a)(7) [title

XII, Sec. 1246(b)], inserted "or by an entity described in clause

(i)" after "subparagraph (A)".

-TRANS-

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.

-End-

-CITE-

22 USC Sec. 2780 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER III - MILITARY EXPORT CONTROLS

-HEAD-

Sec. 2780. Transactions with countries supporting acts of

international terrorism

-STATUTE-

(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 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

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 _________ 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

(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

10 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.

(g742l) Definitions

As used in this section -

(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.

-SOURCE-

(Pub. L. 90-629, ch. 3, Sec. 40, as added Pub. L. 99-399, title V,

Sec. 509(a), Aug. 27, 1986, 100 Stat. 874; amended Pub. L. 101-222,

Sec. 2(a), Dec. 12, 1989, 103 Stat. 1892; Pub. L. 102-138, title

III, Sec. 321, Oct. 28, 1991, 105 Stat. 710; Pub. L. 103-236, title

VIII, Sec. 822(a)(2), Apr. 30, 1994, 108 Stat. 511; Pub. L.

106-113, div. B, Sec. 1000(a)(7) [div. B, title XIII, Sec. 1303],

Nov. 29, 1999, 113 Stat. 1536, 1501A-511; Pub. L. 107-228, div. B,

title XII, Sec. 1204, Sept. 30, 2002, 116 Stat. 1427.)

-REFTEXT-

REFERENCES IN TEXT

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

(Sec. 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, Sec.

101(h) [title VIII, Sec. 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 (Sec. 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.

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.

-MISC1-

AMENDMENTS

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, Sec. 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, Sec. 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, Sec. 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, Sec. 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 U.S.C. App. 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."

-CHANGE-

CHANGE OF NAME

Committee on Foreign Affairs of House of Representatives treated

as referring to Committee on International Relations of House of

Representatives by section 1(a) of Pub. L. 104-14, set out as a

note preceding section 21 of Title 2, The Congress.

-MISC2-

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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2371, 2656g, 3281, 7205,

7533 of this title; title 8 section 1735; title 18 section 175b;

title 50 sections 2202, 2332.

-FOOTNOTE-

(!1) So in original. Probably should be capitalized.

-End-

-CITE-

22 USC Sec. 2781 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER III - MILITARY EXPORT CONTROLS

-HEAD-

Sec. 2781. Transactions with countries not fully cooperating with

United States antiterrorism efforts

-STATUTE-

(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.

-SOURCE-

(Pub. L. 90-629, ch. 3, Sec. 40A, as added Pub. L. 104-132, title

III, Sec. 330, Apr. 24, 1996, 110 Stat. 1258.)

-COD-

CODIFICATION

Another section 40A of Pub. L. 90-629 is classified to section

2785 of this title.

-TRANS-

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.

-End-

-CITE-

22 USC SUBCHAPTER III-A - END-USE MONITORING OF DEFENSE

ARTICLES AND DEFENSE

SERVICES 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER III09A - END-USE MONITORING OF DEFENSE ARTICLES AND

DEFENSE SERVICES

-HEAD-

SUBCHAPTER III-A - END-USE MONITORING OF DEFENSE ARTICLES AND

DEFENSE SERVICES

-End-

-CITE-

22 USC Sec. 2785 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER III09A - END-USE MONITORING OF DEFENSE ARTICLES AND

DEFENSE SERVICES

-HEAD-

Sec. 2785. End-use monitoring of defense articles and defense

services

-STATUTE-

(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.

-SOURCE-

(Pub. L. 90-629, ch. 3A, Sec. 40A, as added Pub. L. 104-164, title

I, Sec. 150(a), July 21, 1996, 110 Stat. 1436; amended Pub. L.

107-228, div. B, title XII, Sec. 1205(b), Sept. 30, 2002, 116 Stat.

1428.)

-REFTEXT-

REFERENCES IN TEXT

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 (Sec. 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.

-COD-

CODIFICATION

Another section 40A of Pub. L. 90-629 is classified to section

2781 of this title.

-MISC1-

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]."

-TRANS-

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.

-End-

-CITE-

22 USC SUBCHAPTER IV - GENERAL, ADMINISTRATIVE, AND

MISCELLANEOUS PROVISIONS 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER IV - GENERAL, ADMINISTRATIVE, AND MISCELLANEOUS

PROVISIONS

-HEAD-

SUBCHAPTER IV - GENERAL, ADMINISTRATIVE, AND MISCELLANEOUS

PROVISIONS

-End-

-CITE-

22 USC Sec. 2791 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER IV - GENERAL, ADMINISTRATIVE, AND MISCELLANEOUS

PROVISIONS

-HEAD-

Sec. 2791. General provisions

-STATUTE-

(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

(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.

-SOURCE-

(Pub. L. 90-629, ch. 4, Sec. 42, Oct. 22, 1968, 82 Stat. 1326; Pub.

L. 92-226, pt. IV, Sec. 401(e), (f), Feb. 7, 1972, 86 Stat. 33;

Pub. L. 94-141, title I, Sec. 150(b), Nov. 29, 1975, 89 Stat. 760;

Pub. L. 94-329, title II, Sec. 213, title VI, Sec. 605(b), June 30,

1976, 90 Stat. 745, 768; Pub. L. 96-533, title I, Sec. 105(e)(3),

Dec. 16, 1980, 94 Stat. 3135; Pub. L. 97-392, Sec. 2, Dec. 29,

1982, 96 Stat. 1963; Pub. L. 99-83, title I, Sec. 115(b)(3), Aug.

8, 1985, 99 Stat. 201; Pub. L. 99-145, title XI, Sec. 1102(a)(4),

(5), Nov. 8, 1985, 99 Stat. 710; Pub. L. 99-661, div. A, title

XIII, Sec. 1342(e), Nov. 14, 1986, 100 Stat. 3991; Pub. L. 103-236,

title VII, Sec. 714(a)(2), Apr. 30, 1994, 108 Stat. 497; Pub. L.

105-277, div. G, subdiv. A, title XII, Sec. 1225(a)(3), Oct. 21,

1998, 112 Stat. 2681-773.)

-MISC1-

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."

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, Sec. 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, Sec.

105(e)(3), inserted reference to section 2769 of this title.

1976 - Subsec. (e). Pub. L. 94-329, Sec. 213, added subsec. (e).

Subsec. (f). Pub. L. 94-329, Sec. 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, Sec. 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, Sec. 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.

-TRANS-

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.

-End-

-CITE-

22 USC Sec. 2792 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER IV - GENERAL, ADMINISTRATIVE, AND MISCELLANEOUS

PROVISIONS

-HEAD-

Sec. 2792. Administrative expenses

-STATUTE-

(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

(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.

-SOURCE-

(Pub. L. 90-629, ch. 4, Sec. 43, Oct. 22, 1968, 82 Stat. 1327; Pub.

L. 94-329, title II, Sec. 214, June 30, 1976, 90 Stat. 746; Pub. L.

95-92, Sec. 7(d), Aug. 4, 1977, 91 Stat. 617; Pub. L. 96-92, Sec.

19(b), Oct. 29, 1979, 93 Stat. 709; Pub. L. 97-113, title VII, Sec.

734(a)(10), Dec. 29, 1981, 95 Stat. 1560; Pub. L. 99-83, title I,

Sec. 120, Aug. 8, 1985, 99 Stat. 204; Pub. L. 101-165, title IX,

Sec. 9104(b)(1), Nov. 21, 1989, 103 Stat. 1152; Pub. L. 107-228,

div. B, title XII, Sec. 1203, Sept. 30, 2002, 116 Stat. 1427.)

-MISC1-

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, Sec. 120(1), inserted "and

official reception and representation expenses".

Subsec. (c). Pub. L. 99-83, Sec. 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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2291c, 2321i, 2761, 2765,

2767, 2795a of this title.

-End-

-CITE-

22 USC Sec. 2793 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER IV - GENERAL, ADMINISTRATIVE, AND MISCELLANEOUS

PROVISIONS

-HEAD-

Sec. 2793. Other provisions unaffected

-STATUTE-

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.

-SOURCE-

(Pub. L. 90-629, ch. 4, Sec. 44, Oct. 22, 1968, 82 Stat. 1327.)

-REFTEXT-

REFERENCES IN TEXT

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, Sec. 1, 68 Stat. 921, and amended, which is classified

principally to chapter 23 (Sec. 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.

-MISC1-

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.

-End-

-CITE-

22 USC Sec. 2794 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER IV - GENERAL, ADMINISTRATIVE, AND MISCELLANEOUS

PROVISIONS

-HEAD-

Sec. 2794. Definitions

-STATUTE-

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 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.

-SOURCE-

(Pub. L. 90-629, ch. 4, Sec. 47, as added Pub. L. 93-189, Sec.

25(12), Dec. 17, 1973, 87 Stat. 731; amended Pub. L. 94-329, title

II, Sec. 215, June 30, 1976, 90 Stat. 746; Pub. L. 96-92, Sec. 22,

Oct. 29, 1979, 93 Stat. 710; Pub. L. 96-533, title I, Sec. 105(f),

Dec. 16, 1980, 94 Stat. 3135; Pub. L. 99-83, title I, Sec. 107(b),

title XII, Sec. 1211(b)(3), Aug. 8, 1985, 99 Stat. 197, 279; Pub.

L. 104-164, title I, Sec. 144, July 21, 1996, 110 Stat. 1434; Pub.

L. 107-228, div. B, title XII, Sec. 1202(b), title XIV, Sec.

1405(a)(4), Sept. 30, 2002, 116 Stat. 1427, 1458.)

-REFTEXT-

REFERENCES IN TEXT

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, Sec. 1, 68 Stat. 921, and amended, which is classified

principally to chapter 23 (Sec. 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.

-MISC1-

AMENDMENTS

2002 - Par. (10). Pub. L. 107-228, Sec. 1202(b), added par. (10).

Par. (11). Pub. L. 107-228, Sec. 1405(a)(4), added par. (11).

1996 - Par. (9). Pub. L. 104-164 added par. (9).

1985 - Par. (2). Pub. L. 99-83, Sec. 107(b), inserted ", except

as otherwise provided in section 2761(a) of this title,".

Par. (6). Pub. L. 99-83, Sec. 1211(b)(3), substituted "military"

for "combat".

1980 - Par. (4). Pub. L. 96-533, Sec. 105(f)(1), excluded from

term "defense service" design and construction services under

section 2769 of this title.

Par. (8). Pub. L. 96-533, Sec. 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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2321j, 2753, 2761, 2765,

2770 of this title; title 10 sections 2350i, 2540d; title 12

section 635.

-FOOTNOTE-

(!1) So in original.

-End-

-CITE-

22 USC SUBCHAPTER V - SPECIAL DEFENSE ACQUISITION FUND 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER V - SPECIAL DEFENSE ACQUISITION FUND

-HEAD-

SUBCHAPTER V - SPECIAL DEFENSE ACQUISITION FUND

-SECREF-

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in section 2291c of this title;

title 10 section 114.

-End-

-CITE-

22 USC Sec. 2795 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER V - SPECIAL DEFENSE ACQUISITION FUND

-HEAD-

Sec. 2795. Fund

-STATUTE-

(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.

-SOURCE-

(Pub. L. 90-629, ch. 5, Sec. 51, as added Pub. L. 97-113, title I,

Sec. 108(a), Dec. 29, 1981, 95 Stat. 1522; amended Pub. L. 99-83,

title I, Sec. 121, Aug. 8, 1985, 99 Stat. 204; Pub. L. 99-139, Sec.

1(a), Oct. 30, 1985, 99 Stat. 562; Pub. L. 99-433, title I, Sec.

110(h)(1), Oct. 1, 1986, 100 Stat. 1004; Pub. L. 101-231, Sec. 4,

Dec. 13, 1989, 103 Stat. 1957; Pub. L. 104-164, title I, Sec.

145(b), July 21, 1996, 110 Stat. 1434.)

-REFTEXT-

REFERENCES IN TEXT

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 (Sec. 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.

-MISC1-

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, Sec. 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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 10 section 114.

-End-

-CITE-

22 USC Sec. 2795a 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER V - SPECIAL DEFENSE ACQUISITION FUND

-HEAD-

Sec. 2795a. Use and transfer of items procured by Fund

-STATUTE-

(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

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.

-SOURCE-

(Pub. L. 90-629, ch. 5, Sec. 52, as added Pub. L. 97-113, title I,

Sec. 108(a), Dec. 29, 1981, 95 Stat. 1523.)

-REFTEXT-

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 (Sec. 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.

-TRANS-

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.

-End-

-CITE-

22 USC Sec. 2795b 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER V - SPECIAL DEFENSE ACQUISITION FUND

-HEAD-

Sec. 2795b. Repealed. Pub. L. 104-164, title I, Sec. 145(a), July

21, 1996, 110 Stat. 1434

-MISC1-

Section, Pub. L. 90-629, ch. 5, Sec. 53, as added Pub. L. 97-113,

title I, Sec. 108(a), Dec. 29, 1981, 95 Stat. 1524; amended Pub. L.

99-433, title I, Sec. 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.

-End-

-CITE-

22 USC SUBCHAPTER VI - LEASES OF DEFENSE ARTICLES AND

LOAN AUTHORITY FOR

COOPERATIVE RESEARCH AND

DEVELOPMENT PURPOSES 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER VI - LEASES OF DEFENSE ARTICLES AND LOAN AUTHORITY FOR

COOPERATIVE RESEARCH AND DEVELOPMENT PURPOSES

-HEAD-

SUBCHAPTER VI - LEASES OF DEFENSE ARTICLES AND LOAN AUTHORITY FOR

COOPERATIVE RESEARCH AND DEVELOPMENT PURPOSES

-SECREF-

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in section 2291c of this title;

title 10 section 7307.

-End-

-CITE-

22 USC Sec. 2796 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER VI - LEASES OF DEFENSE ARTICLES AND LOAN AUTHORITY FOR

COOPERATIVE RESEARCH AND DEVELOPMENT PURPOSES

-HEAD-

Sec. 2796. Leasing authority

-STATUTE-

(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.

(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.

-SOURCE-

(Pub. L. 90-629, ch. 6, Sec. 61, as added Pub. L. 97-113, title I,

Sec. 109(a), Dec. 29, 1981, 95 Stat. 1524; amended Pub. L. 99-500,

Sec. 147, Oct. 18, 1986, 100 Stat. 1783-351, and Pub. L. 99-591,

Sec. 147, Oct. 30, 1986, 100 Stat. 3341-354; Pub. L. 100-202, Sec.

101(e) [title V, Sec. 556], Dec. 22, 1987, 101 Stat. 1329-131,

1329-170; Pub. L. 100-461, title V, Sec. 552, Oct. 1, 1988, 102

Stat. 2268-35; Pub. L. 101-167, title V, Sec. 550, Nov. 21, 1989,

103 Stat. 1235; Pub. L. 101-513, title V, Sec. 546, Nov. 5, 1990,

104 Stat. 2019; Pub. L. 102-145, Sec. 118, as added Pub. L.

102-266, Sec. 102, Apr. 1, 1992, 106 Stat. 93; Pub. L. 102-391,

title V, Sec. 544, Oct. 6, 1992, 106 Stat. 1672; Pub. L. 103-87,

title V, Sec. 524, Sept. 30, 1993, 107 Stat. 952; Pub. L. 103-236,

title VII, Sec. 731(e), Apr. 30, 1994, 108 Stat. 503; Pub. L.

103-306, title V, Sec. 524, Aug. 23, 1994, 108 Stat. 1632; Pub. L.

104-107, title V, Sec. 524, Feb. 12, 1996, 110 Stat. 729; Pub. L.

104-164, title I, Secs. 146, 153(a), July 21, 1996, 110 Stat. 1434,

1440; Pub. L. 104-208, div. A, title I, Sec. 101(c) [title V, Sec.

524], Sept. 30, 1996, 110 Stat. 3009-121, 3009-149; Pub. L.

105-118, title V, Sec. 524, Nov. 26, 1997, 111 Stat. 2412; Pub. L.

105-277, div. A, Sec. 101(d) [title V, Sec. 524], Oct. 21, 1998,

112 Stat. 2681-150, 2681-177; Pub. L. 107-228, div. B, title XII,

Sec. 1233, Sept. 30, 2002, 116 Stat. 1433.)

-REFTEXT-

REFERENCES IN TEXT

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 (Sec.

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.

-COD-

CODIFICATION

Amendment by Pub. L. 102-145 is based on section 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, Sec. 118, as added by Pub. L. 102-266, Sec.

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.

-MISC1-

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, Sec. 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 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, Sec. 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, Sec. 118. See 1991

Amendment note below.

1991 - Subsec. (a). Pub. L. 102-145, Sec. 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.

-CHANGE-

CHANGE OF NAME

Committee on Foreign Affairs of House of Representatives treated

as referring to Committee on International Relations of House of

Representatives by section 1(a) of Pub. L. 104-14, set out as a

note preceding section 21 of Title 2, The Congress.

-MISC2-

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]."

-TRANS-

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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 2291c of this title.

-FOOTNOTE-

(!1) So in original. The words "the fiscal year" probably should not

appear.

-End-

-CITE-

22 USC Sec. 2796a 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER VI - LEASES OF DEFENSE ARTICLES AND LOAN AUTHORITY FOR

COOPERATIVE RESEARCH AND DEVELOPMENT PURPOSES

-HEAD-

Sec. 2796a. Reports to Congress

-STATUTE-

(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

(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, 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.

-SOURCE-

(Pub. L. 90-629, ch. 6, Sec. 62, as added Pub. L. 97-113, title I,

Sec. 109(a), Dec. 29, 1981, 95 Stat. 1525; amended Pub. L. 104-164,

title I, Sec. 141(e)(1), July 21, 1996, 110 Stat. 1432.)

-REFTEXT-

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 (Sec.

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.

-MISC1-

AMENDMENTS

1996 - Subsec. (a). Pub. L. 104-164, Sec. 141(e)(1)(A),

substituted "Before" for "Not less than 30 days before".

Subsec. (b). Pub. L. 104-164, Sec. 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, Sec. 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.

-TRANS-

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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 2796b of this title.

-End-

-CITE-

22 USC Sec. 2796b 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER VI - LEASES OF DEFENSE ARTICLES AND LOAN AUTHORITY FOR

COOPERATIVE RESEARCH AND DEVELOPMENT PURPOSES

-HEAD-

Sec. 2796b. Legislative review procedures

-STATUTE-

(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, 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.

-SOURCE-

(Pub. L. 90-629, ch. 6, Sec. 63, as added Pub. L. 97-113, title I,

Sec. 109(a), Dec. 29, 1981, 95 Stat. 1525; amended Pub. L. 99-247,

Sec. 1(d), Feb. 12, 1986, 100 Stat. 9; Pub. L. 104-164, title I,

Sec. 141(e)(2), July 21, 1996, 110 Stat. 1433; Pub. L. 107-228,

div. B, title XIV, Sec. 1405(a)(3), Sept. 30, 2002, 116 Stat.

1457.)

-REFTEXT-

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

(Sec. 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.

-MISC1-

AMENDMENTS

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, Sec. 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, Sec. 1(d)(2), inserted "joint"

before "resolution".

Subsec. (c). Pub. L. 99-247, Sec. 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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 2796a of this title.

-End-

-CITE-

22 USC Sec. 2796c 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER VI - LEASES OF DEFENSE ARTICLES AND LOAN AUTHORITY FOR

COOPERATIVE RESEARCH AND DEVELOPMENT PURPOSES

-HEAD-

Sec. 2796c. Applicability of other statutory provisions

-STATUTE-

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.

-SOURCE-

(Pub. L. 90-629, ch. 6, Sec. 64, as added Pub. L. 97-113, title I,

Sec. 109(a), Dec. 29, 1981, 95 Stat. 1526.)

-End-

-CITE-

22 USC Sec. 2796d 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER VI - LEASES OF DEFENSE ARTICLES AND LOAN AUTHORITY FOR

COOPERATIVE RESEARCH AND DEVELOPMENT PURPOSES

-HEAD-

Sec. 2796d. Loan of materials, supplies, and equipment for research

and development purposes

-STATUTE-

(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.

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).

-SOURCE-

(Pub. L. 90-629, ch. 6, Sec. 65, as added Pub. L. 100-456, div. A,

title X, Sec. 1003(a), Sept. 29, 1988, 102 Stat. 2038; amended Pub.

L. 102-25, title VII, Sec. 705(d)(2), Apr. 6, 1991, 105 Stat. 120;

Pub. L. 104-164, title I, Sec. 147(a)(3)(B), July 21, 1996, 110

Stat. 1435.)

-MISC1-

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".

-End-

-CITE-

22 USC SUBCHAPTER VII - CONTROL OF MISSILES AND MISSILE

EQUIPMENT OR TECHNOLOGY 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER VII - CONTROL OF MISSILES AND MISSILE EQUIPMENT OR

TECHNOLOGY

-HEAD-

SUBCHAPTER VII - CONTROL OF MISSILES AND MISSILE EQUIPMENT OR

TECHNOLOGY

-SECREF-

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in title 50 App. section 2410b.

-End-

-CITE-

22 USC Sec. 2797 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER VII - CONTROL OF MISSILES AND MISSILE EQUIPMENT OR

TECHNOLOGY

-HEAD-

Sec. 2797. Licensing

-STATUTE-

(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.

-SOURCE-

(Pub. L. 90-629, ch. 7, Sec. 71, as added Pub. L. 101-510, div. A,

title XVII, Sec. 1703, Nov. 5, 1990, 104 Stat. 1745; amended Pub.

L. 103-236, title VII, Secs. 714(a)(3)-(6), 735(c), Apr. 30, 1994,

108 Stat. 497, 506; Pub. L. 105-277, div. G, subdiv. A, title XII,

Sec. 1225(a)(4)-(7), Oct. 21, 1998, 112 Stat. 2681-773; Pub. L.

106-280, title VII, Sec. 708(c), Oct. 6, 2000, 114 Stat. 863.)

-MISC1-

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

$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, Sec. 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, Sec. 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, Sec. 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, Sec. 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, Sec. 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, Sec. 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, Sec. 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, Sec. 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, Sec. 735(c), added subsec. (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.

-TRANS-

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, Sec. 7, June

11, 1993, 58 F.R. 33181, set out below.

-MISC2-

MTCR REPORT TRANSMITTALS

Pub. L. 106-280, title VII, Sec. 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 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, Sec. 1097(g), Dec. 5,

1991, 105 Stat. 1491.

-EXEC-

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 U.S.C. App. 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 U.S.C. App. 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

U.S.C. App. 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:

(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 U.S.C. App. 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. 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.]

-End-

-CITE-

22 USC Sec. 2797a 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER VII - CONTROL OF MISSILES AND MISSILE EQUIPMENT OR

TECHNOLOGY

-HEAD-

Sec. 2797a. Denial of transfer of missile equipment or technology

by United States persons

-STATUTE-

(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

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.

-SOURCE-

(Pub. L. 90-629, ch. 7, Sec. 72, as added Pub. L. 101-510, div. A,

title XVII, Sec. 1703, Nov. 5, 1990, 104 Stat. 1745; amended Pub.

L. 103-236, title VII, Sec. 734(a), Apr. 30, 1994, 108 Stat. 505.)

-MISC1-

AMENDMENTS

1994 - Subsecs. (c), (d). Pub. L. 103-236 added subsec. (c) and

redesignated former subsec. (c) as (d).

-TRANS-

DELEGATION OF FUNCTIONS

For delegation of certain functions of the President under this

section, see Ex. Ord. No. 12851, Sec. 2(a), June 11, 1993, 58 F.R.

33181, set out as a note under section 2797 of this title.

-FOOTNOTE-

(!1) So in original. Probably should be preceded by "section".

-End-

-CITE-

22 USC Sec. 2797b 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER VII - CONTROL OF MISSILES AND MISSILE EQUIPMENT OR

TECHNOLOGY

-HEAD-

Sec. 2797b. Transfers of missile equipment or technology by foreign

persons

-STATUTE-

(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

(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 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.

-SOURCE-

(Pub. L. 90-629, ch. 7, Sec. 73, as added Pub. L. 101-510, div. A,

title XVII, Sec. 1703, Nov. 5, 1990, 104 Stat. 1746; amended Pub.

L. 102-138, title III, Sec. 323(a), Oct. 28, 1991, 105 Stat. 711;

Pub. L. 103-236, title VII, Secs. 714(a)(7), 734(b), Apr. 30, 1994,

108 Stat. 497, 505; Pub. L. 104-106, div. A, title XIV, Sec.

1408(d), Feb. 10, 1996, 110 Stat. 494; Pub. L. 105-277, div. G,

subdiv. A, title XII, Sec. 1225(a)(8), Oct. 21, 1998, 112 Stat.

2681-773; Pub. L. 106-113, div. B, Sec. 1000(a)(7) [div. B, title

XI, Sec. 1136(b), (c)], Nov. 29, 1999, 113 Stat. 1536, 1501A-495.)

-REFTEXT-

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, Sec. 734(b)(1), Apr. 30, 1994, 108

Stat. 505.

-MISC1-

AMENDMENTS

1999 - Subsec. (b). Pub. L. 106-113, Sec. 1000(a)(7) [title XI,

Sec. 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, Sec. 1000(a)(7) [title XI, Sec.

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, Sec. 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, Sec. 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-

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.

-MISC2-

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.

-TRANS-

DELEGATION OF FUNCTIONS

For delegation of certain functions of the President under this

section, see Ex. Ord. No. 12851, Sec. 2(a), June 11, 1993, 58 F.R.

33181, set out as a note under section 2797 of this title.

-MISC3-

SPACE COOPERATION WITH RUSSIAN PERSONS

Pub. L. 106-280, title VII, Sec. 708, Oct. 6, 2000, 114 Stat.

862, provided that:

"(a) Annual Certification. -

"(1) Requirement. - The President shall submit each year to the

appropriate committees of Congress [Committee on Foreign

Relations of the Senate and Committee on International Relations

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 Nonproliferation Act of

2000 (Public Law 106-178) [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 Nonproliferation Act of

2000 (Public Law 106-178) [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))."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2375, 2797b-1, 2797b-2,

2797c of this title; title 50 section 2368; title 50 App. section

2410b.

-FOOTNOTE-

(!1) See References in Text note below.

(!2) So in original. Probably should be preceded by "section".

-End-

-CITE-

22 USC Sec. 2797b-1 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER VII - CONTROL OF MISSILES AND MISSILE EQUIPMENT OR

TECHNOLOGY

-HEAD-

Sec. 2797b-1. Notification of admittance of MTCR adherents

-STATUTE-

(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 in any

activity identified under subparagraph (A), (B), or (C) of section

2797b(a)(1) of this title within the previous two years.

-SOURCE-

(Pub. L. 90-629, ch. 7, Sec. 73A, as added Pub. L. 103-236, title

VII, Sec. 735(d), Apr. 30, 1994, 108 Stat. 506; amended Pub. L.

106-113, div. B, Sec. 1000(a)(7) [div. B, title XI, Sec. 1136(d)],

Nov. 29, 1999, 113 Stat. 1536, 1501A-496.)

-MISC1-

AMENDMENTS

1999 - Pub. L. 106-113 designated existing provisions as subsec.

(a), inserted heading, and added subsec. (b).

-TRANS-

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.

-End-

-CITE-

22 USC Sec. 2797b-2 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER VII - CONTROL OF MISSILES AND MISSILE EQUIPMENT OR

TECHNOLOGY

-HEAD-

Sec. 2797b-2. Authority relating to MTCR adherents

-STATUTE-

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.

-SOURCE-

(Pub. L. 90-629, ch. 7, Sec. 73B, as added Pub. L. 106-113, div. B,

Sec. 1000(a)(7) [div. B, title XI, Sec. 1137], Nov. 29, 1999, 113

Stat. 1536, 1501A-496).

-End-

-CITE-

22 USC Sec. 2797c 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER VII - CONTROL OF MISSILES AND MISSILE EQUIPMENT OR

TECHNOLOGY

-HEAD-

Sec. 2797c. Definitions

-STATUTE-

(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;

(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.

-SOURCE-

(Pub. L. 90-629, ch. 7, Sec. 74, as added Pub. L. 101-510, div. A,

title XVII, Sec. 1703, Nov. 5, 1990, 104 Stat. 1748; amended Pub.

L. 102-138, title III, Sec. 323(b), (c), Oct. 28, 1991, 105 Stat.

711; Pub. L. 106-113, div. B, Sec. 1000(a)(7) [div. B, title XI,

Sec. 1136(a)], Nov. 29, 1999, 113 Stat. 1536, 1501A-495.)

-MISC1-

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, Sec. 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, Sec. 323(c), substituted

"electronics, space systems or equipment, and military aircraft"

for "aircraft, electronics, and space systems or equipment".

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2776, 2797b-2 of this

title; title 50 section 2368.

-End-

-CITE-

22 USC SUBCHAPTER VIII - CHEMICAL OR BIOLOGICAL WEAPONS

PROLIFERATION 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER VIII - CHEMICAL OR BIOLOGICAL WEAPONS PROLIFERATION

-HEAD-

SUBCHAPTER VIII - CHEMICAL OR BIOLOGICAL WEAPONS PROLIFERATION

-End-

-CITE-

22 USC Sec. 2798 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER VIII - CHEMICAL OR BIOLOGICAL WEAPONS PROLIFERATION

-HEAD-

Sec. 2798. Sanctions against certain foreign persons

-STATUTE-

(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

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

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.

-SOURCE-

(Pub. L. 90-629, ch. 8, Sec. 81, as added and amended Pub. L.

102-182, title III, Secs. 305(b), 309(b)(2), Dec. 4, 1991, 105

Stat. 1250, 1258.)

-REFTEXT-

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.

-MISC1-

PRIOR PROVISIONS

A prior subchapter VIII, consisting of former section 2798, as

added by Pub. L. 102-138, title V, Sec. 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, Sec. 309(a), Dec. 4, 1991, 105 Stat. 1258.

AMENDMENTS

1991 - Subsec. (a)(1). Pub. L. 101-182, Sec. 309(b)(2),

substituted "October 28, 1991" for reference to the "date of the

enactment of this section" which was enacted Dec. 4, 1991.

-TRANS-

DELEGATION OF FUNCTIONS

For delegation of certain functions of the President under this

section, see Ex. Ord. No. 12851, Sec. 1(a), June 11, 1993, 58 F.R.

33181, set out as a note under section 2797 of this title.

-End-

-CITE-

22 USC SUBCHAPTER IX - TRANSFER OF CERTAIN CFE

TREATY-LIMITED EQUIPMENT TO

NATO MEMBERS 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER IX - TRANSFER OF CERTAIN CFE TREATY-LIMITED EQUIPMENT TO

NATO MEMBERS

-HEAD-

SUBCHAPTER IX - TRANSFER OF CERTAIN CFE TREATY-LIMITED EQUIPMENT TO

NATO MEMBERS

-End-

-CITE-

22 USC Sec. 2799 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER IX - TRANSFER OF CERTAIN CFE TREATY-LIMITED EQUIPMENT TO

NATO MEMBERS

-HEAD-

Sec. 2799. Purpose

-STATUTE-

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.

-SOURCE-

(Pub. L. 90-629, ch. 9, Sec. 91, as added Pub. L. 102-228, Sec. 2,

Dec. 12, 1991, 105 Stat. 1691.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 2799c of this title.

-End-

-CITE-

22 USC Sec. 2799a 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER IX - TRANSFER OF CERTAIN CFE TREATY-LIMITED EQUIPMENT TO

NATO MEMBERS

-HEAD-

Sec. 2799a. CFE Treaty obligations

-STATUTE-

The authorities provided in this subchapter shall be exercised

consistent with the obligations incurred by the United States in

connection with the CFE Treaty.

-SOURCE-

(Pub. L. 90-629, ch. 9, Sec. 92, as added Pub. L. 102-228, Sec. 2,

Dec. 12, 1991, 105 Stat. 1691.)

-End-

-CITE-

22 USC Sec. 2799b 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER IX - TRANSFER OF CERTAIN CFE TREATY-LIMITED EQUIPMENT TO

NATO MEMBERS

-HEAD-

Sec. 2799b. Authorities

-STATUTE-

(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

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.

-SOURCE-

(Pub. L. 90-629, ch. 9, Sec. 93, as added Pub. L. 102-228, Sec. 2,

Dec. 12, 1991, 105 Stat. 1691.)

-TRANS-

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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 2799c of this title.

-End-

-CITE-

22 USC Sec. 2799c 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER IX - TRANSFER OF CERTAIN CFE TREATY-LIMITED EQUIPMENT TO

NATO MEMBERS

-HEAD-

Sec. 2799c. Notifications and reports to Congress

-STATUTE-

(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

(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.

-SOURCE-

(Pub. L. 90-629, ch. 9, Sec. 94, as added Pub. L. 102-228, Sec. 2,

Dec. 12, 1991, 105 Stat. 1692; amended Pub. L. 103-199, title IV,

Sec. 402(1), Dec. 17, 1993, 107 Stat. 2324.)

-MISC1-

AMENDMENTS

1993 - Subsec. (b)(3)(B). Pub. L. 103-199 substituted "country of

the Eastern Group of States Parties" for "Warsaw Pact country".

-CHANGE-

CHANGE OF NAME

Committee on Foreign Affairs of House of Representatives treated

as referring to Committee on International Relations of House of

Representatives by section 1(a) of Pub. L. 104-14, set out as a

note preceding section 21 of Title 2, The Congress.

-TRANS-

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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 2799b of this title.

-End-

-CITE-

22 USC Sec. 2799d 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER IX - TRANSFER OF CERTAIN CFE TREATY-LIMITED EQUIPMENT TO

NATO MEMBERS

-HEAD-

Sec. 2799d. Definitions

-STATUTE-

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.

-SOURCE-

(Pub. L. 90-629, ch. 9, Sec. 95, as added Pub. L. 102-228, Sec. 2,

Dec. 12, 1991, 105 Stat. 1693; amended Pub. L. 103-199, title IV,

Sec. 402(2), Dec. 17, 1993, 107 Stat. 2324.)

-MISC1-

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".

-End-

-CITE-

22 USC SUBCHAPTER X - NUCLEAR NONPROLIFERATION CONTROLS 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER X - NUCLEAR NONPROLIFERATION CONTROLS

-HEAD-

SUBCHAPTER X - NUCLEAR NONPROLIFERATION CONTROLS

-End-

-CITE-

22 USC Sec. 2799aa 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER X - NUCLEAR NONPROLIFERATION CONTROLS

-HEAD-

Sec. 2799aa. Nuclear enrichment transfers

-STATUTE-

(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.

-SOURCE-

(Pub. L. 90-629, ch. 10, Sec. 101, as added Pub. L. 103-236, title

VIII, Sec. 826(a), Apr. 30, 1994, 108 Stat. 515.)

-REFTEXT-

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 (Sec. 2151 et seq.) of this

title. Chapters 4 and 6 of part II of the Act are classified

generally to parts IV (Sec. 2346 et seq.) and VI (Sec. 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.

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.

-MISC1-

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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2295a, 2295b, 2375 of

this title.

-End-

-CITE-

22 USC Sec. 2799aa-1 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER X - NUCLEAR NONPROLIFERATION CONTROLS

-HEAD-

Sec. 2799aa-1. Nuclear reprocessing transfers, illegal exports for

nuclear explosive devices, transfers of nuclear explosive

devices, and nuclear detonations

-STATUTE-

(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 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

(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 __ a

certification by the President under section 102(b)(4) of the Arms

Export Control Act with respect to __, 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 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.

-SOURCE-

(Pub. L. 90-629, ch. 10, Sec. 102, as added Pub. L. 103-236, title

VIII, Sec. 826(a), Apr. 30, 1994, 108 Stat. 516; amended Pub. L.

105-194, Sec. 2(a)-(c), July 14, 1998, 112 Stat. 627.)

-REFTEXT-

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

(Sec. 2151 et seq.) of this title. Chapters 4 and 6 of part II of

the Act are classified generally to parts IV (Sec. 2346 et seq.)

and VI (Sec. 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.

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 (Sec. 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.

-MISC1-

AMENDMENTS

1998 - Subsec. (b)(2)(D)(ii). Pub. L. 105-194, Sec. 2(c),

inserted "medicines, medical equipment, and" after "to".

Subsec. (b)(2)(D)(iii). Pub. L. 105-194, Sec. 2(a), added cl.

(iii).

Subsec. (b)(2)(F). Pub. L. 105-194, Sec. 2(b), inserted ", which

includes fertilizer" before period at end.

-CHANGE-

CHANGE OF NAME

Committee on Foreign Affairs of House of Representatives treated

as referring to Committee on International Relations of House of

Representatives by section 1(a) of Pub. L. 104-14, set out as a

note preceding section 21 of Title 2, The Congress.

-MISC2-

EFFECTIVE DATE OF 1998 AMENDMENT

Pub. L. 105-194, Sec. 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."

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, Sec. 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, Sec. 9001, Oct. 25, 1999, 113 Stat.

1283, as amended by Pub. L. 107-228, div. B, title XIV, Sec.

1405(b), Sept. 30, 2002, 116 Stat. 1458, provided that:

"(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, Sec. 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, Sec. 9001(f), Oct. 25, 1999, 113 Stat.

1284, effective Oct. 21, 1999.

EFFECT ON EXISTING SANCTIONS

Pub. L. 105-194, Sec. 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."

-EXEC-

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.

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, Sec. 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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2295a, 2295b, 3281 of

this title.

-End-

-CITE-

22 USC Sec. 2799aa-2 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 39 - ARMS EXPORT CONTROL

SUBCHAPTER X - NUCLEAR NONPROLIFERATION CONTROLS

-HEAD-

Sec. 2799aa-2. "Nuclear explosive device" defined

-STATUTE-

As used in this subchapter, the term "nuclear explosive device"

has the meaning given that term in section 6305(4) of this title.

-SOURCE-

(Pub. L. 90-629, ch. 10, Sec. 103, as added Pub. L. 103-236, title

VIII, Sec. 826(a), Apr. 30, 1994, 108 Stat. 519.)

-End-