Title 22 — Foreign Relations and Intercourse

Chapter 39 — Arms Export Control

§ 2753. Eligibility for defense services or defense articles

Statutory text

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—

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;

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;

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

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, the Committee on Foreign Affairs 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.

Necessity of consent by President

The consent of the President under paragraph (2) of subsection (a) or under paragraph (1) of section 2314(a) of this title (as it relates to subparagraph (B) of such paragraph) shall not be required for the transfer by a foreign country or international organization of defense articles sold by the United States under this chapter if a treaty referred to in section 2778(j)(1)(C)(i) of this title permits such transfer without prior consent of the President, or if—

such articles constitute components incorporated into foreign defense articles;

the recipient is the government of a member country of the North Atlantic Treaty Organization, the Government of Australia, the Government of Japan, the Government of the Republic of Korea, the Government of Israel, or the Government of New Zealand;

the recipient is not a country designated under section 2371 of this title;

the United States-origin components are not—

significant military equipment (as defined in section 2794(9) of this title);

defense articles for which notification to Congress is required under section 2776(b) of this title; and

identified by regulation as Missile Technology Control Regime items; and

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.

Termination of credits, guaranties or sales; report of violation by President; national security exception; conditions for reinstatement

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.

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.

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.

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.

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.

A country shall remain ineligible in accordance with paragraph (1) of this subsection until such time as—

the President determines that the violation has ceased; and

the country concerned has given assurances satisfactory to the President that such violation will not recur.

Submission of written certification to Congress; contents; classified material; effective date of consent; report to Congress; transfers not subject to procedures

Subject to paragraph (5), the President may not give his consent under paragraph (2) of subsection (a) 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, the Committee on Foreign Affairs of the House of Representatives, and the Committee on Foreign Relations of the Senate a written certification with respect to such proposed transfer containing—

the name of the country or international organization proposing to make such transfer,

a description of the article or service proposed to be transferred, including its acquisition cost,

the name of the proposed recipient of such article or service,

the reasons for such proposed transfer, and

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.

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.

In the case of a proposed transfer to the North Atlantic Treaty Organization, or any member country of such Organization, Japan, Australia, the Republic of Korea, Israel, or New Zealand, unless the President states in the certification submitted pursuant to paragraph (1) of this subsection that an emergency exists which requires that consent to the proposed transfer become effective immediately in the national security interests of the United States, such consent shall not become effective until fifteen calendar days after the date of such submission and such consent shall become effective then only if the Congress does not enact, within such fifteen-day period, a joint resolution prohibiting the proposed transfer.

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.

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.

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.

Subject to paragraph (5), the President may not give his consent to the transfer of any major defense equipment valued (in terms of its original acquisition cost) at $14,000,000 or more, or of any defense article or defense service valued (in terms of its original acquisition cost) at $50,000,000 or more, the export of which has been licensed or approved under section 2778 of this title or has been exempted from the licensing requirements of this chapter pursuant to a treaty referred to in section 2778(j)(1)(C)(i) of this title where such treaty does not authorize the transfer without prior United States Government approval, unless before giving such consent the President submits to the Speaker of the House of Representatives, the Committee on Foreign Affairs 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—

at least 15 calendar days before such consent is given in the case of a transfer to a country which is a member of the North Atlantic Treaty Organization or Australia, Japan, the Republic of Korea, Israel, or New Zealand; and

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.

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.

This subsection shall not apply—

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;

to temporary transfers of defense articles for the sole purpose of receiving maintenance, repair, or overhaul; or

to arrangements among members of the North Atlantic Treaty Organization or between the North Atlantic Treaty Organization and any of its member countries—

for cooperative cross servicing, or

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.

In the case of a transfer to a member country of the North Atlantic Treaty Organization (NATO) or Australia, Japan, the Republic of Korea, Israel, or New Zealand that does not authorize a new sales territory that includes any country other than such countries, the limitations on consent of the President set forth in paragraphs (1) and (3)(A) shall apply only if the transfer is—

a transfer of major defense equipment valued (in terms of its original acquisition cost) at $25,000,000 or more; or

a transfer of defense articles or defense services valued (in terms of its original acquisition cost) at $100,000,000 or more).1

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, the Committee on Foreign Affairs of the House of Representatives, and the Committee on Foreign Relations of the Senate.

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).

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.

Footnotes

1 So in original. The closing parenthesis probably should not appear.

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1968
The Foreign Military Sales Act
Pub. L. 90–629 · 82 Stat. 1320
Enacted · 22 U.S.C. § 2753
Pub. L. 90–629, ch. 1, § 3, Oct. 22, 1968, 82 Stat. 1322
Source evidence
Code source credit
Pub. L. 90–629, ch. 1, § 3, Oct. 22, 1968, 82 Stat. 1322
1971
Pub. L. 91–672 § 1 · 84 Stat. 2053
Added · 22 U.S.C. § 2753(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
Source evidence
Code amendment note
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.
Enacted provision · exact public law section
(1) by striking out of subsection (a) “not to exceed $296,000,000 for the fiscal year 1969” and inserting in lieu thereof “not to exceed $250,000,000 for each of the fiscal years 1970 and 1971”; and
1973
Foreign Assistance Act of 1973
Pub. L. 93–189 § 25(2)(A) · 87 Stat. 714
1. Inserted · 22 U.S.C. § 2753(a)
  Pub. L. 93–189, § 25(2)(A)–(C), in par. (2) inserted requirement not to use or permit the use of such articles for purposes other than those for which furnished
2. Redesignated · 22 U.S.C. § 2753(a)
  Pub. L. 93–189, § 25(2)(A)–(C), in par. (2) redesignated former par. (3) as (4)
3. Redesignated · 22 U.S.C. § 2753(a)
  Pub. L. 93–189, § 25(2)(A)–(C), in par. (2) added a new par. (3), and following par. (4), as so redesignated
4. Inserted · 22 U.S.C. § 2753(a)
  Pub. L. 93–189, § 25(2)(A)–(C), in par. (2) inserted provisions relating to Presidential consideration of requests prior to consent under par. (2)
Source evidence
Code amendment note
Subsec. (a). Pub. L. 93–189, § 25(2)(A)–(C), in par. (2) inserted requirement not to use or permit the use of such articles for purposes other than those for which furnished, redesignated former par. (3) as (4), added a new par. (3), and following par. (4), as so redesignated, inserted provisions relating to Presidential consideration of requests prior to consent under par. (2).
Enacted provision · exact public law section
(A) by striking out “and” at the end of paragraph (2) of subsection (a) and inserting before “unless” the following: “and not to use or permit the use of such article for purposes other than those for which furnished”;
1973
Foreign Assistance Act of 1973
Pub. L. 93–189 § 25(2)(D) · 87 Stat. 714
Added · 22 U.S.C. § 2753(c); 22 U.S.C. § 2753(d)
Pub. L. 93–189, § 25(2)(D), added subsecs. (c) and (d)
Source evidence
Code amendment note
Subsecs. (c), (d). Pub. L. 93–189, § 25(2)(D), added subsecs. (c) and (d).
Enacted provision · exact public law section
(D) by adding at the end thereof the following new subsections: “(c) Except as otherwise provided in subsection (d), any foreign country which hereafter uses defense articles or defense services furnished such country under this Act, in substantial violation of any provision of this Act or any agreement entered into under this Act, shall be immediately ineligible for further cash sales, credits, or guarantees. “(d) No sophisticated weapons, including sophisticated jet aircraft or spare parts and associated ground equipment for such aircraft, shall be furnished under this or any other Act to any foreign country on or after the date that the President determines that such country has violated any agreement it has made in accordance with paragraph (2) of subsection (a) of this section or section 505(a) of the Foreign 75 Stat. 436; 81 Stat. 456. 22 USC 2314. Assistance Act of 1961 or any other provision of law requiring similar agreements. Such country shall remain ineligible in accordance with this subsection until such time as the President determines that such violation has ceased, that the country concerned has given assurances satisfactory to the President that such violation will not reoccur, and that, if such violation involved the transfer of sophisticated weapons without the consent of the President, such weapons have been returned to the country concerned.”
1974
Pub. L. 93–559 § 45(a)(1) · 88 Stat. 1795
1. Struck · 22 U.S.C. § 2753(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
2. Substituted · 22 U.S.C. § 2753(d)
  Pub. L. 93–559 substituted “in accordance with subsection (c) of this section” for “in accordance with this subsection”
Source evidence
Code amendment note
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”.
Enacted provision · exact public law section
(1) Section 3(d) is amended to read as follows: 22 USC 2753. “(d) A country shall remain ineligible in accordance with subsection (c) of this section until such time as the President determines that such violation has ceased, that the country concerned has given assurances satisfactory to the President that such violation will not recur, and that, if such violation involved the transfer of sophisticated weapons without the consent of the President, such weapons have been returned to the country concerned.”
1976
International Security Assistance and Arms Export Control Act of 1976
Pub. L. 94–329 title II · 90 Stat. 729
1. Inserted · 22 U.S.C. § 2753(a)
  Pub. L. 94–329, §§ 203(a), 204(b)(1), inserted in par. (2) “or related training or other defense service” after “article” wherever appearing
2. Struck · 22 U.S.C. § 2753(a)
  Pub. L. 94–329, §§ 203(a), 204(b)(1), 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
Source evidence
Code amendment note
Subsec. (a). Pub. L. 94–329, §§ 203(a), 204(b)(1), inserted in par. (2) “or related training or other defense service” after “article” wherever appearing and struck out provisions following par. (4) relating to the President’s notification of his consent to transfer war implements to another country, in writing, to the Speaker of the House of Representatives and the Committee on Foreign Relations of the Senate indicating his justification for the transfer and the particular war implement transferred.
Enacted provision · exact public law
TITLE II— ARMS EXPORT CONTROLS Sec. 201. change in title (a) The first section of the Foreign Military Sales Act is amended by striking out “ ‘The Foreign Military Sales Act” and inserting in lieu thereof “the ‘Arms Export Control Act”. (b) Any reference to the Foreign Military Sales Act shall be deemed to be a reference to the Arms Export Control Act. Sec. 202. arms sales policy (a) Section 1 of the Foreign Military Sales Act is amended by striking out the last paragraph and inserting tn lieu thereof the following new paragraphs: “It shall be the policy of the 1 unfed 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 cheek 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 21 or section 22 of this Act; or “(2) which are licensed or approved for export under section 38 of this Art 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.”. (b) (1) The President shall conduct a comprehensive study of the Study. 22 USC 2751 note. arms sales policies and practices of the United States Government, including policies mid practices with respect to commercial arms sales, in order to determine whether such policies and practices should be changed. Such study shall examine the rationale for arms sales to foreign countries, the benefits to the United States of such arms sales, the risks to world peace as a result of such anus sales, trends in arms sales by the United States and other countries, and steps which might be taken by the United States to provide for limitations on arms sales. In addition, such study shall include an evaluation of the impact of United States arms sales policies on the economic and social development of foreign countries and consideration of steps which might be taken by the United States to encourage the maximum use of the resources of the developing countries for economic and social development purposes. (2) Not later than the end of the one-year period beginning on the Report to Congress. date of enactment, of this section, the President shall submit to the Congress a report setting forth in detail (A) the findings made and conclusions reached as a result of the study conducted pursuant to paragraph (1) of this subsection, together with such recommendations for legislation as the President deems appropriate, (B) the efforts made by the United States during the five years immediately preceding the submission of such report to initiate and otherwise encourage arms sales limitations, and (C) the efforts being made by the United States at the time of the submission of such report to initiate and otherwise encourage arms sales limitations in accordance with the policies stated in the amendment made by subsection (a) of this section. Sec. 203. transfer of defense services (a) Section 3(a)(2) of the Foreign Military Sales Act is amended, effective July 1, 1976, by inserting immediately after 22 USC 2753 and note. “article” each time it appears “or related training or other defense service”. (b) Section 305(a) of the Foreign Assistance Act of 1961 is 22 USC 2314 and note. amended, effective July 1, 1976, by inserting immediately after “articles” each time it appears “or related training or other defense service.”. Sec. 204. approval for transfer of defense articles (a) Section 3 of the Foreign Military Sales Act is amended 22 USC 2753. by adding at the end thereof the following new subsections: “(e) The President may not give his consent under paragraph (2) Written certification, submittal to Speaker of the House and congressional committee. 22 USC 2314. of subsection (a) or under the third sentence of such subsection to a transfer of a defense article, or related training or other defense service. sold under this Act and may not give his consent to such a transfer under section 505(a)(1) or 505(a)(4) of the Foreign Assistance Act of 1961 unless, 30 days prior to giving such consent, 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— “(1) the name of the country or international organization proposing to make such transfer, “(2) 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, “(3) the name of the proposed recipient of such defense article or related training or other defense service, “(4) the reasons for such proposed transfer, and “(5) the date on which such transfer is proposed to be made. Any certification submitted to Congress pursuant to this subsection shall be unclassified, except that information regarding the dollar value and number of defense articles, or related training or other defense services, proposed to be transferred may be classified if public disclosure thereof would be clearly detrimental to the security of the United States. “(f) 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 505 of the Foreign Assistance Act of 1961, he shall report such information immediately to the Speaker of the House of Representatives and the Committee on Foreign Relations of the Senate.”. (b) (1) The second sentence of subsection (a) of section 3 of the 22 USC 2753. Foreign Military Sales Act is amended by striking out “, and prior” and ail that follows thereafter through “transferred” the second time it appears. (2) The first sentence of section 505(e) of the Foreign Assistance 22 USC 2314. Act of 1961 is amended by striking out “, and prior” and all that follows thereafter through “transferred” the second time it appears. Sec. 205. sales from stocks Section 21 of the Foreign Military Sales Act is amended to read as follows: “Sec. 21. Sales From Stocks.— (a) The President may sell defense articles and defense services from the stocks of the Department of Defense to any eligible country or international organization if such country or international organization agrees to pay in United States dollars— “(1) 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; “(2) 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 “(3) in the ease of the sale of a defense service, the full cost to the United States Government of furnishing such service. “(b) 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 under this Act may not perform any duties of a combatant nature, including any duties related to training, advising, or otherwise providing assistance regarding combat activities, outside the United States in connection with the performance of those defense services. “(d) 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 the enactment of this subsection 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 Act. “(e) (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 22 of this Act shall include 22 USC 2762. appropriate charges for— “(A) administrative services, calculated on an average percentage basis to recover the full estimated costs of administration of sales made under this Act to all purchasers of such articles and services; “(B) any use of plant and production equipment in connection with such defense articles; and “(C) a proportionate amount of any nonrecurring costs of research, development, and production of major defense equipment. “(2) The, President may reduce or waive the charge or charges Reduction or waiver. which would otherwise be considered appropriate under paragraphs (1)(B) and (1)(C) for particular sales that would, if made, significantly advance United States Government interests in North Atlantic Treaty Organization standardization, or foreign procurement in the United States under coproduction arrangements. “(f) Any contracts entered into between the United States and a foreign country under the authority of this section or section 22 of tills Act 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) In carrying out section 814 of the Act of October 7, 1975 NATO standardization agreements. 89 Stat. 540. (Public Law 94–106), the President may enter into North Atlantic Treaty Organization standardization agreements for the cooperative furnishing of training on a 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 Transmittal to Speaker of the House and congressional committees. of the House, of Representatives and the Committees on Appropriations, Armed Services, and Foreign Relations of the Senate.”. Sec. 206. sales from stocks affecting united states combat readiness Section 21 of the Foreign Military Sales Act, as amended Ante, p. 736. by section 205 of this Act, is further amended by adding at the end thereof the following new subsection: “(h) (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. Written statement, transmittal to Speaker of the House and congressional committees. 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 clay a written statement giving a complete explanation with respect to any proposal to sell, under this section, 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 lie 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 (E) of paragraph (1) is in effect.”. Sec. 207. procurement for cash sales (a) Section 22(u) of the Foreign Military Sales Act is amended by adding at the end thereof the following: “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 Interest rate. 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) Section 22(b) of the Foreign Military Sales Act is amended by striking out the first sentence and inserting in lieu thereof the following: “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 Act.”. Sec. 208. extension of payment period for credit sales (a) Paragraph (1) of section 23 of the Foreign Military Sales Act is amended by striking out “ten years” and inserting in lieu 22 USC 2763. thereof “twelve years”. (b) The amendment made by subsection (a) shall apply with respect 22 USC 2763 note. to financing under agreements entered into on or after the date of enactment of this Act for the procurement of defense articles to be delivered, or defense services to be rendered, after such date. Sec. 209. annual estimate and justification for sales program (a) Immediately after section 24 of the Foreign Military Sales Act, add the following new section: “Sec. 25. Annual Estimate and Justification for Sales Program.— (a) The President shall transmit to the Congress, as a part of the presentation materials for security assistance programs proposed for each fiscal year, a report, which sets forth— “(1) an estimate of the amount of sales expected to be made to each country under sections 21 and 22 of this Act, including a 22 USC 2761, 2762. detailed explanation of the foreign policy and United States national security considerations involved in expected sales to each country; “(2) an estimate of the amount of credits and guaranties expected to be extended to each country under sections 23 and 24 of this Act; 22 USC 2763, 2764. “(3) a list of all findings which are in effect on the date of such transmission made by the President pursuant to section 3(a)(1) of this Act, together with a full and complete justification for each such finding, explaining how sales to earn country with respect to which such finding has been made will strengthen the security of the United States and promote world peace; and “(4) an arms control impact statement for each purchasing country, including (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 includes the purchasing country. “(b) Not later than thirty days following the receipt of a request Information, submittal to congressional committee. made by the Committee on Foreign Relations of the Senate or the Committee on International Relations of the House of Representatives for additional information with respect to any estimate submitted pursuant to subsection (a), the President shall submit such information to such committee. “(c) The President shall make every effort to submit all of the information required by this section wholly in unclassified form. In the event 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.”. (b) Section 634(d) of the Foreign Assistance Act of 1961 is 22 USC 2394. amended by striking out “and military sales under this or any other Act” in the fourth sentence. Sec. 210. military sales authorization (a) Section 31(a) of the Foreign Military Sales Act is amended by striking out “not to exceed $405,000,000 for the fiscal year 1975” and inserting in lien thereof “not to exceed $1,039,000,000 for the fiscal year 1976 and not to exceed $740,000,000 for the fiscal year 1977”. (b) Section 31(b) of such Act is amended to read as follows: “(b) The aggregate total of credits, or participations in credits, extended pursuant to this Act and of the, principal amount of loans 22 USC 2764. guaranteed pursuant to section 24(a) shall not exceed $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, of which not less than $1,000,000,000 shall be available only for Israel.”. (c) (1) Section 31 of such Act is further amended by adding at the end thereof the following new subsections: “(c) Funds made, available for the fiscal years 1976 and 1977 under subsection (a) of this section shall be obligated to finance the procurement of defense articles and defense services by Israel on a long-term repayment basis either by the extension of credits, without regard 22 USC 2763. to the limitations contained in section 23, or by the issuance of guaranties under section 24. Repayment shall be hi not less than twenty years, following a grace period of ten years on repayment of principal. Israel shall be released from one-half of its contractual liability to repay the United States Government with respect to defense articles and defense services so financed for each such year. “(d) 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 22 USC 2311 et seq. Assistance Act of 1961 or pursuant to sales under this Act may not exceed $100,000,000 (exclusive of ships and their on-board stores and supplies transferred in accordance with law).”. (2) Subsections (a), (b), (c), and (e) of section 8 of the Act entitled “An Act to amend the Foreign Military Sales Act and for other purposes”, approved January 12, 1971 (Public Law 91–672; 84 Repeal. 22 USC 2321b and notes. Transfer of funds. Stat. 2053), are repealed effective July 1, 1976. All funds in the suspense account referred to in subsection (a) of such section on July 1, 1976, shall be transferred to the general fund of the Treasury. Sec. 211. reports on commercial and governmental military exports; congressional action (a) Section 36 of the Foreign Military Sales Act is amended to read as follows: “Sec. 36. Reports on Commercial and Governmental Military Exports; Congressional Action.— (a) 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 thirty 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 Contents. pursuant to subsection (b)(1) of this section) containing— “(1) a listing of all letters of offer to sell any major defense equipment for $1,006,000 or more under this Act to each foreign country and international organization, by category, if such letter’s of offer have not been accepts 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 23 and guaranty agreements under section 24 made during the 22 USC 2763, 2764. 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 cash sales expected to be made under sections 21 and 22, credits to be extended under section 23, 22 USC 2761, 2762. and guaranty agreements to lie made under section 24 in the quarter of the fiscal year immediately following the quarter for which such report is submitted; “(6) a projection with respect to all cash sales expected to be made and credits expected to be extended to each country and organization for the remainder of the fiscal year in which such report is transmitted; “(7) 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 Act; and “(8) an analysis and description of the services being performed by officers and employees of the United States Government under section 21(a) of this Act, including the number of personnel so employed. 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) (1) In the case of any letter of offer to sell any defense articles Certification, submittal to Speaker of the House and congressional committee. or services under this Act for $25,000,000 or more, or any major defense equipment for $7,000,000 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 Statement, transmittal to congressional committee. (iv) of subsection (a). In addition, the President shall, upon the request of subcommittee or the Committee on International Relations 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 or 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 or defense service proposed to be sold (if known on the date of transmittal of such statement); “(D) an analysis of the arms control impact pertinent to such offer to sell, prepared in consultation with the Secretary of Defense; “(E) the reasons why the foreign country or international organization to which the sale is proposed to be made needs the defense articles or services which are the subject of such sale and a description of how such country or organization intends to use such defense articles or 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 winch 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 or 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 or 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 or services proposed to be sold; “(K) an analysis of the extent to which comparable kinds and amounts of defense articles or 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 or services which are the subject of such sale would be delivered; and “(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, services, or 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. 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) may be classified if the public disclosure thereof would be clearly detrimental to the security of the United States. The letter of offer shall not be issued if the Congress, within thirty calendar days after receiving such certification, adopts a concurrent resolution stating that it objects to the proposed sale, unless the President states in his certification that an emergency exists which inquires such sale in the national security interests of the United States. “(2) 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. Post, p, 765. “(3) For the purpose of expediting the consideration and adoption of concurrent resolutions under this subsection, a motion to proceed to the consideration of any such resolution after it has been reported by the appropriate committee shall be treated as highly privileged in the House of Representatives. “(c) In the case of an application by a person (other than with Certification, transmittal to Speaker of the House and congressional committee. 22 USC 2761, 2762. regard to a sale under section 21 or section 22 of this Act) for a license for the export of any major defense equipment sold under a contract in the amount of $7,000,000 or more or of defense articles or defense services sold under a contract in the amount of $25,000,000 or more, not less than 30 days 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 (1) the foreign country or international organization to which such export, will be made, (2) the dollar amount of the items to be exported, and (3) a description of the items to be exported. In Statement, transmittal to congressional committees. addition, the President shall, upon the request of such committee or the Committee on International Relations 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. A certification transmitted pursuant to this subsection shall lie unclassified, except that the information specified in paragraph (2) and the details of the description specified in paragraph (3) may be classified if the public disclosure thereof would be clearly detrimental to the security of the United States. “(d) In the case of an approval under section 38 of this Act of a Post, p. 744. United States commercial technical assistance, or manufacturing licensing agreement for or in a country not a member of the North Atlantic Treaty Organization 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) containing comparable information, except that the last sentence of such subsection shall not apply to certifications submitted pursuant to this subsection.”. (b) The amendment made by subsection (a) of 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 on or after the date of enactment of this Act and to export licenses for Infra. which an application is filed under section 38 of such Act on or after such date. Sec. 212. control of licenses with respect to arms exports and imports (a) (1) Chapter 3 of the Foreign Military Sales Act is amended by adding at the end thereof the following new section: “Sec. 38. Control of Arms Exports and Imports.— (a) (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 Regulations. 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 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, increase the possibility of outbreak or escalation of conflict, or prejudice the development of bilateral or multilateral arms control arrangements. “(b) (1) 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) 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 Act 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. “(2) Except as otherwise specifically provided in regulations issued tinder subsection (a)(1), no defense articles or defense services designated by the President under subsection (a)(1) may be exported or imported without a license for such export or import, issued in accordance with this Act and regulations issued under this Act, 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) No license may be issued under this Act for the export of any major defense equipment sold under a contract in the amount of $25,000,000 or more to any foreign country which is not a member of the North Atlantic Treaty Organization unless such major defense equipment was sold under this Act. “(c) Any person who willfully violates any provision of this section Penalties. Post, p. 767. or section 31), 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 not more than $100,00(1 or imprisoned not more than two years, or both. “(d) This section applies to and within the Canal Zone. “(e) 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 sections 6 (e), (d), (e), and (f) and 7 (a) and (c) of the Export Administration Act of 1069, subject to the same terms 50 USC app. 2405, 2406. and conditions as are applicable to such powers under such Act. Nothing in this subsection shall be construed as authorizing the withholding of information from the Congress.”. (2) Section 2(b) of the Foreign Military Sales Act is amended— 22 USC 2752. (A) by inserting “and exports” immediately after “sales” both times it appears; and (B) by inserting “and whether there shall be delivery or other performance under such sale or export,” immediately after “thereof,”. (b) (1) Section 414 of the Mutual Security Act of 1954 is repealed. Repeal. 22 USC 1934 and note, 2778 note. Any reference to such section shall be deemed to be a reference to section 38 of the Arms Export Control Act and any reference to licenses issued under section 38 of the Arms Export Control Act shall be deemed to include a reference to licenses issued under section 414 of the Mutual Security Act of 1954. (2) All determinations, authorizations, regulations, orders, contracts, 22 USC 1934 note. agreements, and other actions issued, undertaken, or entered into under section 414 of the Mutual Security Act of 1954 shall continue in full force and effect until modified, revoked, or superseded by appropriate authority. Sec. 213. cancellation and suspension of licenses and contracts Section 42 of the Foreign Military Sales Act is amended 22 USC 2791. by adding at the end thereof the following new subsection: “(e) (1) Each contract for sale entered into under sections 21 and 22 of this Act shall provide that such contract may be canceled in whole 22 USC 2761, 2762. 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 38 of this Act Ante, p. 744. 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 Act. “(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 21 and 22 22 USC 2761, 2762. of this Act that are canceled or suspended under this subsection to the extent such moneys have previously teen 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.”. Sec. 214. administrative expenses Section 43 of the Foreign Military Sales Act is amended by designating the present section as subsection (a) and by adding at the end thereof the following new subsection: “(b) Administrative expenses incurred by any department or agency of the United States Government (including any mission or group) in carrying out functions under this Act which are primarily for the benefit of any foreign country shall be fully reimbursed from amounts received for sales under sections 21 and 22.”. Sec. 215. definitions Section 47 of the Foreign Military Sales Act is amended— (1) by striking out “and” at the end of paragraph (1); (2) by striking out the period at the end of paragraph (2) and inserting in lieu thereof a semicolon; and (3) by adding immediately after paragraph (2) the following new paragraphs: “(3) ‘defense article’, except as provided bi 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 42 USC 2014. Energy Act of 1954) source material, 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 22 USC 2403. in section 644(e) of the Foreign Assistance Act of 1961), used for the purposes of making military sales; “(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 combat 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: and “(7) ‘defense articles and defense services’ means, with respect to commercial exports subject to the provisions of section 38 of this Act, Ante, p. 744. those items designated by the President pursuant to subsection (a)(1) of such section.”. Sec. 216. annual foreign sales report Section 657 of the Foreign Assistance Act of 1061 is 22 USC 2417. amended as follows: (1) The section caption is amended by inserting “and Military Exports” after “Foreign Assistance”. (2) Paragraph (1) of subsection (a) is amended to lead as follows: “(1) the aggregate dollar value of all foreign assistance (including military education and training), foreign military sales, sales credits, and guaranties provided or made by the United States Government by any means to all foreign countries and international organizations, and the aggregate dollar value of such assistance, sales, sales credits, and guaranties, by category, provided or made by the United States Government to or for each such country or organization during that fiscal year;”. (3) Paragraph (3) of subsection (a) is amended to read as follows: “(3) the aggregate dollar value and quantity of defense articles and defense services, and of military education and training, exported to each foreign country and international organization, by category, specifying whether the export was made by grant under chapter 2 or chapter 5 of part IF of this Act, by sale under chapter 2 of the Arms Export Control Act, by commercial sale licensed under chapter 3 of that Act, or by other authority; and”. (4) Paragraph (4) of subsection (a) is repealed. (5) Paragraph (5) of subsection (a) is amended— (A) by redesignating such paragraph as paragraph (4), and (B) by striking out “(4)” and inserting in lieu thereof “(3)”. Sec. 217. report on sales of excess defense articles Not later than February 28, 1977, the President shall Transmittal to Speaker of the House and congressional committee. 22 USC 2751 note. transmit to the Speaker of the House of Representatives and the Committee on Foreign Relations of the Senate a full and complete report, regarding all sales made under the Arms Export Control Act during the period July 1, 1976, through December 31, 1976, of excess defense articles to foreign governments and international organizations (other than any such article sold solely for scrap). Such report shall set forth— (1) the number of such sales; (2) the total acquisition costs of the articles sold; (3) the total gross price paid for such articles exclusive of administrative, surcharges and costs of repairing, rehabilitation, or modifying such articles; (4) the data set forth under paragraphs (1), (2), and (3) totaled separately for those sales made at less than 33⅓ per centum of the acquisition costs thereof; and (5) the estimated total proceeds of soles of articles included under paragraph (4) if such articles had been sold instead through United States Government surplus property disposal operations and the percentage thereof that would have been paid out of such proceeds to meet direct expenses incurred in connection with such dispositions pursuant to law. Sec. 218. study of the effects of arms export control provisions (a) The Secretary of State, in consultation with the Secretary of Defense, shall conduct a comprehensive study of the effects of the enactment of the arms export control provisions contained in this title with a view to determining the consequences of such provisions on (1) the foreign policy of the United States, (2) the balance of payments of the United States, (3) the trade with foreign countries, (4) unemployment in the United States, and (5) weapons procurement by the Department of Defense. “(b) The Secretary of State shall submit the results of such study to the President and the Congress within one year after the date of enactment of this section, together with such comments and recommendations for legislation as he deems appropriate.
1976
International Security Assistance and Arms Export Control Act of 1976
Pub. L. 94–329 § 304(b)(1) · 90 Stat. 729
Changed · 22 U.S.C. § 2753(c)
Pub. L. 94–329, § 304(b)(1), provided that the President, by so stating in writing to Congress, or Congress, by joint resolution, terminate credits, guaranties or sales upon determining a violation, permitted cash sales and deliveries pursuant to previous sales to be made if the President certifies in writing to Congress that termination thereof would be adverse to national security unless Congress adopts or has adopted a joint resolution determining such eligibility, and specified conditions for reinstatement of eligibility
Source evidence
Code amendment note
Subsec. (c). Pub. L. 94–329, § 304(b)(1), provided that the President, by so stating in writing to Congress, or Congress, by joint resolution, terminate credits, guaranties or sales upon determining a violation, permitted cash sales and deliveries pursuant to previous sales to be made if the President certifies in writing to Congress that termination thereof would be adverse to national security unless Congress adopts or has adopted a joint resolution determining such eligibility, and specified conditions for reinstatement of eligibility.
Enacted provision · exact public law section
(1) Section 3(c) of the Foreign Military Sales Act is amended to read as follows: “(c) (1) (A) No credits (including participations in credits) may be issued and no guaranties may be extended for any foreign country under this Act as hereinafter provided, if such country uses defense articles or defense services furnished under this Act, 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 4 or, if such agreement provides that such articles or 22 USC 2754. services may only lie used for purposes more limited than those authorized under section 4 for a purpose not authorized under such agreement; (ii) by transferring such articles or services to, or permitting any use or 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 Act as hereinafter provided, if such country uses defense articles or defense services furnished under this Act, 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 4 or, if such agreement provides that such articles or services may only be used for purposes more limited than those authorized under section 4, for a purpose not authorized under such agreement. “(2) The President shall report to the Congress promptly upon the Report to Congress. 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 t hereof 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.”.
1976
International Security Assistance and Arms Export Control Act of 1976
Pub. L. 94–329 title II · 90 Stat. 729
Repealed · 22 U.S.C. § 2753(d)
Pub. L. 94–329, §§ 204(a), 304(b)(2), added subsec. (d). Former subsec. (d), which related to conditions for reinstatement after a determination of ineligibility, was repealed and is now covered by subsec. (c)
Source evidence
Code amendment note
Subsec. (d). Pub. L. 94–329, §§ 204(a), 304(b)(2), added subsec. (d). Former subsec. (d), which related to conditions for reinstatement after a determination of ineligibility, was repealed and is now covered by subsec. (c).
Enacted provision · exact public law
TITLE II— ARMS EXPORT CONTROLS Sec. 201. change in title (a) The first section of the Foreign Military Sales Act is amended by striking out “ ‘The Foreign Military Sales Act” and inserting in lieu thereof “the ‘Arms Export Control Act”. (b) Any reference to the Foreign Military Sales Act shall be deemed to be a reference to the Arms Export Control Act. Sec. 202. arms sales policy (a) Section 1 of the Foreign Military Sales Act is amended by striking out the last paragraph and inserting tn lieu thereof the following new paragraphs: “It shall be the policy of the 1 unfed 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 cheek 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 21 or section 22 of this Act; or “(2) which are licensed or approved for export under section 38 of this Art 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.”. (b) (1) The President shall conduct a comprehensive study of the Study. 22 USC 2751 note. arms sales policies and practices of the United States Government, including policies mid practices with respect to commercial arms sales, in order to determine whether such policies and practices should be changed. Such study shall examine the rationale for arms sales to foreign countries, the benefits to the United States of such arms sales, the risks to world peace as a result of such anus sales, trends in arms sales by the United States and other countries, and steps which might be taken by the United States to provide for limitations on arms sales. In addition, such study shall include an evaluation of the impact of United States arms sales policies on the economic and social development of foreign countries and consideration of steps which might be taken by the United States to encourage the maximum use of the resources of the developing countries for economic and social development purposes. (2) Not later than the end of the one-year period beginning on the Report to Congress. date of enactment, of this section, the President shall submit to the Congress a report setting forth in detail (A) the findings made and conclusions reached as a result of the study conducted pursuant to paragraph (1) of this subsection, together with such recommendations for legislation as the President deems appropriate, (B) the efforts made by the United States during the five years immediately preceding the submission of such report to initiate and otherwise encourage arms sales limitations, and (C) the efforts being made by the United States at the time of the submission of such report to initiate and otherwise encourage arms sales limitations in accordance with the policies stated in the amendment made by subsection (a) of this section. Sec. 203. transfer of defense services (a) Section 3(a)(2) of the Foreign Military Sales Act is amended, effective July 1, 1976, by inserting immediately after 22 USC 2753 and note. “article” each time it appears “or related training or other defense service”. (b) Section 305(a) of the Foreign Assistance Act of 1961 is 22 USC 2314 and note. amended, effective July 1, 1976, by inserting immediately after “articles” each time it appears “or related training or other defense service.”. Sec. 204. approval for transfer of defense articles (a) Section 3 of the Foreign Military Sales Act is amended 22 USC 2753. by adding at the end thereof the following new subsections: “(e) The President may not give his consent under paragraph (2) Written certification, submittal to Speaker of the House and congressional committee. 22 USC 2314. of subsection (a) or under the third sentence of such subsection to a transfer of a defense article, or related training or other defense service. sold under this Act and may not give his consent to such a transfer under section 505(a)(1) or 505(a)(4) of the Foreign Assistance Act of 1961 unless, 30 days prior to giving such consent, 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— “(1) the name of the country or international organization proposing to make such transfer, “(2) 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, “(3) the name of the proposed recipient of such defense article or related training or other defense service, “(4) the reasons for such proposed transfer, and “(5) the date on which such transfer is proposed to be made. Any certification submitted to Congress pursuant to this subsection shall be unclassified, except that information regarding the dollar value and number of defense articles, or related training or other defense services, proposed to be transferred may be classified if public disclosure thereof would be clearly detrimental to the security of the United States. “(f) 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 505 of the Foreign Assistance Act of 1961, he shall report such information immediately to the Speaker of the House of Representatives and the Committee on Foreign Relations of the Senate.”. (b) (1) The second sentence of subsection (a) of section 3 of the 22 USC 2753. Foreign Military Sales Act is amended by striking out “, and prior” and ail that follows thereafter through “transferred” the second time it appears. (2) The first sentence of section 505(e) of the Foreign Assistance 22 USC 2314. Act of 1961 is amended by striking out “, and prior” and all that follows thereafter through “transferred” the second time it appears. Sec. 205. sales from stocks Section 21 of the Foreign Military Sales Act is amended to read as follows: “Sec. 21. Sales From Stocks.— (a) The President may sell defense articles and defense services from the stocks of the Department of Defense to any eligible country or international organization if such country or international organization agrees to pay in United States dollars— “(1) 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; “(2) 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 “(3) in the ease of the sale of a defense service, the full cost to the United States Government of furnishing such service. “(b) 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 under this Act may not perform any duties of a combatant nature, including any duties related to training, advising, or otherwise providing assistance regarding combat activities, outside the United States in connection with the performance of those defense services. “(d) 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 the enactment of this subsection 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 Act. “(e) (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 22 of this Act shall include 22 USC 2762. appropriate charges for— “(A) administrative services, calculated on an average percentage basis to recover the full estimated costs of administration of sales made under this Act to all purchasers of such articles and services; “(B) any use of plant and production equipment in connection with such defense articles; and “(C) a proportionate amount of any nonrecurring costs of research, development, and production of major defense equipment. “(2) The, President may reduce or waive the charge or charges Reduction or waiver. which would otherwise be considered appropriate under paragraphs (1)(B) and (1)(C) for particular sales that would, if made, significantly advance United States Government interests in North Atlantic Treaty Organization standardization, or foreign procurement in the United States under coproduction arrangements. “(f) Any contracts entered into between the United States and a foreign country under the authority of this section or section 22 of tills Act 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) In carrying out section 814 of the Act of October 7, 1975 NATO standardization agreements. 89 Stat. 540. (Public Law 94–106), the President may enter into North Atlantic Treaty Organization standardization agreements for the cooperative furnishing of training on a 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 Transmittal to Speaker of the House and congressional committees. of the House, of Representatives and the Committees on Appropriations, Armed Services, and Foreign Relations of the Senate.”. Sec. 206. sales from stocks affecting united states combat readiness Section 21 of the Foreign Military Sales Act, as amended Ante, p. 736. by section 205 of this Act, is further amended by adding at the end thereof the following new subsection: “(h) (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. Written statement, transmittal to Speaker of the House and congressional committees. 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 clay a written statement giving a complete explanation with respect to any proposal to sell, under this section, 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 lie 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 (E) of paragraph (1) is in effect.”. Sec. 207. procurement for cash sales (a) Section 22(u) of the Foreign Military Sales Act is amended by adding at the end thereof the following: “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 Interest rate. 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) Section 22(b) of the Foreign Military Sales Act is amended by striking out the first sentence and inserting in lieu thereof the following: “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 Act.”. Sec. 208. extension of payment period for credit sales (a) Paragraph (1) of section 23 of the Foreign Military Sales Act is amended by striking out “ten years” and inserting in lieu 22 USC 2763. thereof “twelve years”. (b) The amendment made by subsection (a) shall apply with respect 22 USC 2763 note. to financing under agreements entered into on or after the date of enactment of this Act for the procurement of defense articles to be delivered, or defense services to be rendered, after such date. Sec. 209. annual estimate and justification for sales program (a) Immediately after section 24 of the Foreign Military Sales Act, add the following new section: “Sec. 25. Annual Estimate and Justification for Sales Program.— (a) The President shall transmit to the Congress, as a part of the presentation materials for security assistance programs proposed for each fiscal year, a report, which sets forth— “(1) an estimate of the amount of sales expected to be made to each country under sections 21 and 22 of this Act, including a 22 USC 2761, 2762. detailed explanation of the foreign policy and United States national security considerations involved in expected sales to each country; “(2) an estimate of the amount of credits and guaranties expected to be extended to each country under sections 23 and 24 of this Act; 22 USC 2763, 2764. “(3) a list of all findings which are in effect on the date of such transmission made by the President pursuant to section 3(a)(1) of this Act, together with a full and complete justification for each such finding, explaining how sales to earn country with respect to which such finding has been made will strengthen the security of the United States and promote world peace; and “(4) an arms control impact statement for each purchasing country, including (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 includes the purchasing country. “(b) Not later than thirty days following the receipt of a request Information, submittal to congressional committee. made by the Committee on Foreign Relations of the Senate or the Committee on International Relations of the House of Representatives for additional information with respect to any estimate submitted pursuant to subsection (a), the President shall submit such information to such committee. “(c) The President shall make every effort to submit all of the information required by this section wholly in unclassified form. In the event 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.”. (b) Section 634(d) of the Foreign Assistance Act of 1961 is 22 USC 2394. amended by striking out “and military sales under this or any other Act” in the fourth sentence. Sec. 210. military sales authorization (a) Section 31(a) of the Foreign Military Sales Act is amended by striking out “not to exceed $405,000,000 for the fiscal year 1975” and inserting in lien thereof “not to exceed $1,039,000,000 for the fiscal year 1976 and not to exceed $740,000,000 for the fiscal year 1977”. (b) Section 31(b) of such Act is amended to read as follows: “(b) The aggregate total of credits, or participations in credits, extended pursuant to this Act and of the, principal amount of loans 22 USC 2764. guaranteed pursuant to section 24(a) shall not exceed $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, of which not less than $1,000,000,000 shall be available only for Israel.”. (c) (1) Section 31 of such Act is further amended by adding at the end thereof the following new subsections: “(c) Funds made, available for the fiscal years 1976 and 1977 under subsection (a) of this section shall be obligated to finance the procurement of defense articles and defense services by Israel on a long-term repayment basis either by the extension of credits, without regard 22 USC 2763. to the limitations contained in section 23, or by the issuance of guaranties under section 24. Repayment shall be hi not less than twenty years, following a grace period of ten years on repayment of principal. Israel shall be released from one-half of its contractual liability to repay the United States Government with respect to defense articles and defense services so financed for each such year. “(d) 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 22 USC 2311 et seq. Assistance Act of 1961 or pursuant to sales under this Act may not exceed $100,000,000 (exclusive of ships and their on-board stores and supplies transferred in accordance with law).”. (2) Subsections (a), (b), (c), and (e) of section 8 of the Act entitled “An Act to amend the Foreign Military Sales Act and for other purposes”, approved January 12, 1971 (Public Law 91–672; 84 Repeal. 22 USC 2321b and notes. Transfer of funds. Stat. 2053), are repealed effective July 1, 1976. All funds in the suspense account referred to in subsection (a) of such section on July 1, 1976, shall be transferred to the general fund of the Treasury. Sec. 211. reports on commercial and governmental military exports; congressional action (a) Section 36 of the Foreign Military Sales Act is amended to read as follows: “Sec. 36. Reports on Commercial and Governmental Military Exports; Congressional Action.— (a) 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 thirty 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 Contents. pursuant to subsection (b)(1) of this section) containing— “(1) a listing of all letters of offer to sell any major defense equipment for $1,006,000 or more under this Act to each foreign country and international organization, by category, if such letter’s of offer have not been accepts 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 23 and guaranty agreements under section 24 made during the 22 USC 2763, 2764. 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 cash sales expected to be made under sections 21 and 22, credits to be extended under section 23, 22 USC 2761, 2762. and guaranty agreements to lie made under section 24 in the quarter of the fiscal year immediately following the quarter for which such report is submitted; “(6) a projection with respect to all cash sales expected to be made and credits expected to be extended to each country and organization for the remainder of the fiscal year in which such report is transmitted; “(7) 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 Act; and “(8) an analysis and description of the services being performed by officers and employees of the United States Government under section 21(a) of this Act, including the number of personnel so employed. 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) (1) In the case of any letter of offer to sell any defense articles Certification, submittal to Speaker of the House and congressional committee. or services under this Act for $25,000,000 or more, or any major defense equipment for $7,000,000 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 Statement, transmittal to congressional committee. (iv) of subsection (a). In addition, the President shall, upon the request of subcommittee or the Committee on International Relations 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 or 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 or defense service proposed to be sold (if known on the date of transmittal of such statement); “(D) an analysis of the arms control impact pertinent to such offer to sell, prepared in consultation with the Secretary of Defense; “(E) the reasons why the foreign country or international organization to which the sale is proposed to be made needs the defense articles or services which are the subject of such sale and a description of how such country or organization intends to use such defense articles or 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 winch 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 or 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 or 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 or services proposed to be sold; “(K) an analysis of the extent to which comparable kinds and amounts of defense articles or 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 or services which are the subject of such sale would be delivered; and “(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, services, or 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. 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) may be classified if the public disclosure thereof would be clearly detrimental to the security of the United States. The letter of offer shall not be issued if the Congress, within thirty calendar days after receiving such certification, adopts a concurrent resolution stating that it objects to the proposed sale, unless the President states in his certification that an emergency exists which inquires such sale in the national security interests of the United States. “(2) 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. Post, p, 765. “(3) For the purpose of expediting the consideration and adoption of concurrent resolutions under this subsection, a motion to proceed to the consideration of any such resolution after it has been reported by the appropriate committee shall be treated as highly privileged in the House of Representatives. “(c) In the case of an application by a person (other than with Certification, transmittal to Speaker of the House and congressional committee. 22 USC 2761, 2762. regard to a sale under section 21 or section 22 of this Act) for a license for the export of any major defense equipment sold under a contract in the amount of $7,000,000 or more or of defense articles or defense services sold under a contract in the amount of $25,000,000 or more, not less than 30 days 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 (1) the foreign country or international organization to which such export, will be made, (2) the dollar amount of the items to be exported, and (3) a description of the items to be exported. In Statement, transmittal to congressional committees. addition, the President shall, upon the request of such committee or the Committee on International Relations 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. A certification transmitted pursuant to this subsection shall lie unclassified, except that the information specified in paragraph (2) and the details of the description specified in paragraph (3) may be classified if the public disclosure thereof would be clearly detrimental to the security of the United States. “(d) In the case of an approval under section 38 of this Act of a Post, p. 744. United States commercial technical assistance, or manufacturing licensing agreement for or in a country not a member of the North Atlantic Treaty Organization 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) containing comparable information, except that the last sentence of such subsection shall not apply to certifications submitted pursuant to this subsection.”. (b) The amendment made by subsection (a) of 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 on or after the date of enactment of this Act and to export licenses for Infra. which an application is filed under section 38 of such Act on or after such date. Sec. 212. control of licenses with respect to arms exports and imports (a) (1) Chapter 3 of the Foreign Military Sales Act is amended by adding at the end thereof the following new section: “Sec. 38. Control of Arms Exports and Imports.— (a) (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 Regulations. 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 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, increase the possibility of outbreak or escalation of conflict, or prejudice the development of bilateral or multilateral arms control arrangements. “(b) (1) 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) 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 Act 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. “(2) Except as otherwise specifically provided in regulations issued tinder subsection (a)(1), no defense articles or defense services designated by the President under subsection (a)(1) may be exported or imported without a license for such export or import, issued in accordance with this Act and regulations issued under this Act, 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) No license may be issued under this Act for the export of any major defense equipment sold under a contract in the amount of $25,000,000 or more to any foreign country which is not a member of the North Atlantic Treaty Organization unless such major defense equipment was sold under this Act. “(c) Any person who willfully violates any provision of this section Penalties. Post, p. 767. or section 31), 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 not more than $100,00(1 or imprisoned not more than two years, or both. “(d) This section applies to and within the Canal Zone. “(e) 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 sections 6 (e), (d), (e), and (f) and 7 (a) and (c) of the Export Administration Act of 1069, subject to the same terms 50 USC app. 2405, 2406. and conditions as are applicable to such powers under such Act. Nothing in this subsection shall be construed as authorizing the withholding of information from the Congress.”. (2) Section 2(b) of the Foreign Military Sales Act is amended— 22 USC 2752. (A) by inserting “and exports” immediately after “sales” both times it appears; and (B) by inserting “and whether there shall be delivery or other performance under such sale or export,” immediately after “thereof,”. (b) (1) Section 414 of the Mutual Security Act of 1954 is repealed. Repeal. 22 USC 1934 and note, 2778 note. Any reference to such section shall be deemed to be a reference to section 38 of the Arms Export Control Act and any reference to licenses issued under section 38 of the Arms Export Control Act shall be deemed to include a reference to licenses issued under section 414 of the Mutual Security Act of 1954. (2) All determinations, authorizations, regulations, orders, contracts, 22 USC 1934 note. agreements, and other actions issued, undertaken, or entered into under section 414 of the Mutual Security Act of 1954 shall continue in full force and effect until modified, revoked, or superseded by appropriate authority. Sec. 213. cancellation and suspension of licenses and contracts Section 42 of the Foreign Military Sales Act is amended 22 USC 2791. by adding at the end thereof the following new subsection: “(e) (1) Each contract for sale entered into under sections 21 and 22 of this Act shall provide that such contract may be canceled in whole 22 USC 2761, 2762. 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 38 of this Act Ante, p. 744. 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 Act. “(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 21 and 22 22 USC 2761, 2762. of this Act that are canceled or suspended under this subsection to the extent such moneys have previously teen 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.”. Sec. 214. administrative expenses Section 43 of the Foreign Military Sales Act is amended by designating the present section as subsection (a) and by adding at the end thereof the following new subsection: “(b) Administrative expenses incurred by any department or agency of the United States Government (including any mission or group) in carrying out functions under this Act which are primarily for the benefit of any foreign country shall be fully reimbursed from amounts received for sales under sections 21 and 22.”. Sec. 215. definitions Section 47 of the Foreign Military Sales Act is amended— (1) by striking out “and” at the end of paragraph (1); (2) by striking out the period at the end of paragraph (2) and inserting in lieu thereof a semicolon; and (3) by adding immediately after paragraph (2) the following new paragraphs: “(3) ‘defense article’, except as provided bi 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 42 USC 2014. Energy Act of 1954) source material, 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 22 USC 2403. in section 644(e) of the Foreign Assistance Act of 1961), used for the purposes of making military sales; “(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 combat 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: and “(7) ‘defense articles and defense services’ means, with respect to commercial exports subject to the provisions of section 38 of this Act, Ante, p. 744. those items designated by the President pursuant to subsection (a)(1) of such section.”. Sec. 216. annual foreign sales report Section 657 of the Foreign Assistance Act of 1061 is 22 USC 2417. amended as follows: (1) The section caption is amended by inserting “and Military Exports” after “Foreign Assistance”. (2) Paragraph (1) of subsection (a) is amended to lead as follows: “(1) the aggregate dollar value of all foreign assistance (including military education and training), foreign military sales, sales credits, and guaranties provided or made by the United States Government by any means to all foreign countries and international organizations, and the aggregate dollar value of such assistance, sales, sales credits, and guaranties, by category, provided or made by the United States Government to or for each such country or organization during that fiscal year;”. (3) Paragraph (3) of subsection (a) is amended to read as follows: “(3) the aggregate dollar value and quantity of defense articles and defense services, and of military education and training, exported to each foreign country and international organization, by category, specifying whether the export was made by grant under chapter 2 or chapter 5 of part IF of this Act, by sale under chapter 2 of the Arms Export Control Act, by commercial sale licensed under chapter 3 of that Act, or by other authority; and”. (4) Paragraph (4) of subsection (a) is repealed. (5) Paragraph (5) of subsection (a) is amended— (A) by redesignating such paragraph as paragraph (4), and (B) by striking out “(4)” and inserting in lieu thereof “(3)”. Sec. 217. report on sales of excess defense articles Not later than February 28, 1977, the President shall Transmittal to Speaker of the House and congressional committee. 22 USC 2751 note. transmit to the Speaker of the House of Representatives and the Committee on Foreign Relations of the Senate a full and complete report, regarding all sales made under the Arms Export Control Act during the period July 1, 1976, through December 31, 1976, of excess defense articles to foreign governments and international organizations (other than any such article sold solely for scrap). Such report shall set forth— (1) the number of such sales; (2) the total acquisition costs of the articles sold; (3) the total gross price paid for such articles exclusive of administrative, surcharges and costs of repairing, rehabilitation, or modifying such articles; (4) the data set forth under paragraphs (1), (2), and (3) totaled separately for those sales made at less than 33⅓ per centum of the acquisition costs thereof; and (5) the estimated total proceeds of soles of articles included under paragraph (4) if such articles had been sold instead through United States Government surplus property disposal operations and the percentage thereof that would have been paid out of such proceeds to meet direct expenses incurred in connection with such dispositions pursuant to law. Sec. 218. study of the effects of arms export control provisions (a) The Secretary of State, in consultation with the Secretary of Defense, shall conduct a comprehensive study of the effects of the enactment of the arms export control provisions contained in this title with a view to determining the consequences of such provisions on (1) the foreign policy of the United States, (2) the balance of payments of the United States, (3) the trade with foreign countries, (4) unemployment in the United States, and (5) weapons procurement by the Department of Defense. “(b) The Secretary of State shall submit the results of such study to the President and the Congress within one year after the date of enactment of this section, together with such comments and recommendations for legislation as he deems appropriate.
1976
International Security Assistance and Arms Export Control Act of 1976
Pub. L. 94–329 title II · 90 Stat. 729
Added · 22 U.S.C. § 2753(e)
Pub. L. 94–329, §§ 204(a), 304(b)(2), added subsec. (e)
Source evidence
Code amendment note
Subsec. (e). Pub. L. 94–329, §§ 204(a), 304(b)(2), added subsec. (e).
Enacted provision · exact public law
TITLE II— ARMS EXPORT CONTROLS Sec. 201. change in title (a) The first section of the Foreign Military Sales Act is amended by striking out “ ‘The Foreign Military Sales Act” and inserting in lieu thereof “the ‘Arms Export Control Act”. (b) Any reference to the Foreign Military Sales Act shall be deemed to be a reference to the Arms Export Control Act. Sec. 202. arms sales policy (a) Section 1 of the Foreign Military Sales Act is amended by striking out the last paragraph and inserting tn lieu thereof the following new paragraphs: “It shall be the policy of the 1 unfed 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 cheek 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 21 or section 22 of this Act; or “(2) which are licensed or approved for export under section 38 of this Art 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.”. (b) (1) The President shall conduct a comprehensive study of the Study. 22 USC 2751 note. arms sales policies and practices of the United States Government, including policies mid practices with respect to commercial arms sales, in order to determine whether such policies and practices should be changed. Such study shall examine the rationale for arms sales to foreign countries, the benefits to the United States of such arms sales, the risks to world peace as a result of such anus sales, trends in arms sales by the United States and other countries, and steps which might be taken by the United States to provide for limitations on arms sales. In addition, such study shall include an evaluation of the impact of United States arms sales policies on the economic and social development of foreign countries and consideration of steps which might be taken by the United States to encourage the maximum use of the resources of the developing countries for economic and social development purposes. (2) Not later than the end of the one-year period beginning on the Report to Congress. date of enactment, of this section, the President shall submit to the Congress a report setting forth in detail (A) the findings made and conclusions reached as a result of the study conducted pursuant to paragraph (1) of this subsection, together with such recommendations for legislation as the President deems appropriate, (B) the efforts made by the United States during the five years immediately preceding the submission of such report to initiate and otherwise encourage arms sales limitations, and (C) the efforts being made by the United States at the time of the submission of such report to initiate and otherwise encourage arms sales limitations in accordance with the policies stated in the amendment made by subsection (a) of this section. Sec. 203. transfer of defense services (a) Section 3(a)(2) of the Foreign Military Sales Act is amended, effective July 1, 1976, by inserting immediately after 22 USC 2753 and note. “article” each time it appears “or related training or other defense service”. (b) Section 305(a) of the Foreign Assistance Act of 1961 is 22 USC 2314 and note. amended, effective July 1, 1976, by inserting immediately after “articles” each time it appears “or related training or other defense service.”. Sec. 204. approval for transfer of defense articles (a) Section 3 of the Foreign Military Sales Act is amended 22 USC 2753. by adding at the end thereof the following new subsections: “(e) The President may not give his consent under paragraph (2) Written certification, submittal to Speaker of the House and congressional committee. 22 USC 2314. of subsection (a) or under the third sentence of such subsection to a transfer of a defense article, or related training or other defense service. sold under this Act and may not give his consent to such a transfer under section 505(a)(1) or 505(a)(4) of the Foreign Assistance Act of 1961 unless, 30 days prior to giving such consent, 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— “(1) the name of the country or international organization proposing to make such transfer, “(2) 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, “(3) the name of the proposed recipient of such defense article or related training or other defense service, “(4) the reasons for such proposed transfer, and “(5) the date on which such transfer is proposed to be made. Any certification submitted to Congress pursuant to this subsection shall be unclassified, except that information regarding the dollar value and number of defense articles, or related training or other defense services, proposed to be transferred may be classified if public disclosure thereof would be clearly detrimental to the security of the United States. “(f) 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 505 of the Foreign Assistance Act of 1961, he shall report such information immediately to the Speaker of the House of Representatives and the Committee on Foreign Relations of the Senate.”. (b) (1) The second sentence of subsection (a) of section 3 of the 22 USC 2753. Foreign Military Sales Act is amended by striking out “, and prior” and ail that follows thereafter through “transferred” the second time it appears. (2) The first sentence of section 505(e) of the Foreign Assistance 22 USC 2314. Act of 1961 is amended by striking out “, and prior” and all that follows thereafter through “transferred” the second time it appears. Sec. 205. sales from stocks Section 21 of the Foreign Military Sales Act is amended to read as follows: “Sec. 21. Sales From Stocks.— (a) The President may sell defense articles and defense services from the stocks of the Department of Defense to any eligible country or international organization if such country or international organization agrees to pay in United States dollars— “(1) 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; “(2) 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 “(3) in the ease of the sale of a defense service, the full cost to the United States Government of furnishing such service. “(b) 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 under this Act may not perform any duties of a combatant nature, including any duties related to training, advising, or otherwise providing assistance regarding combat activities, outside the United States in connection with the performance of those defense services. “(d) 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 the enactment of this subsection 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 Act. “(e) (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 22 of this Act shall include 22 USC 2762. appropriate charges for— “(A) administrative services, calculated on an average percentage basis to recover the full estimated costs of administration of sales made under this Act to all purchasers of such articles and services; “(B) any use of plant and production equipment in connection with such defense articles; and “(C) a proportionate amount of any nonrecurring costs of research, development, and production of major defense equipment. “(2) The, President may reduce or waive the charge or charges Reduction or waiver. which would otherwise be considered appropriate under paragraphs (1)(B) and (1)(C) for particular sales that would, if made, significantly advance United States Government interests in North Atlantic Treaty Organization standardization, or foreign procurement in the United States under coproduction arrangements. “(f) Any contracts entered into between the United States and a foreign country under the authority of this section or section 22 of tills Act 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) In carrying out section 814 of the Act of October 7, 1975 NATO standardization agreements. 89 Stat. 540. (Public Law 94–106), the President may enter into North Atlantic Treaty Organization standardization agreements for the cooperative furnishing of training on a 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 Transmittal to Speaker of the House and congressional committees. of the House, of Representatives and the Committees on Appropriations, Armed Services, and Foreign Relations of the Senate.”. Sec. 206. sales from stocks affecting united states combat readiness Section 21 of the Foreign Military Sales Act, as amended Ante, p. 736. by section 205 of this Act, is further amended by adding at the end thereof the following new subsection: “(h) (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. Written statement, transmittal to Speaker of the House and congressional committees. 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 clay a written statement giving a complete explanation with respect to any proposal to sell, under this section, 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 lie 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 (E) of paragraph (1) is in effect.”. Sec. 207. procurement for cash sales (a) Section 22(u) of the Foreign Military Sales Act is amended by adding at the end thereof the following: “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 Interest rate. 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) Section 22(b) of the Foreign Military Sales Act is amended by striking out the first sentence and inserting in lieu thereof the following: “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 Act.”. Sec. 208. extension of payment period for credit sales (a) Paragraph (1) of section 23 of the Foreign Military Sales Act is amended by striking out “ten years” and inserting in lieu 22 USC 2763. thereof “twelve years”. (b) The amendment made by subsection (a) shall apply with respect 22 USC 2763 note. to financing under agreements entered into on or after the date of enactment of this Act for the procurement of defense articles to be delivered, or defense services to be rendered, after such date. Sec. 209. annual estimate and justification for sales program (a) Immediately after section 24 of the Foreign Military Sales Act, add the following new section: “Sec. 25. Annual Estimate and Justification for Sales Program.— (a) The President shall transmit to the Congress, as a part of the presentation materials for security assistance programs proposed for each fiscal year, a report, which sets forth— “(1) an estimate of the amount of sales expected to be made to each country under sections 21 and 22 of this Act, including a 22 USC 2761, 2762. detailed explanation of the foreign policy and United States national security considerations involved in expected sales to each country; “(2) an estimate of the amount of credits and guaranties expected to be extended to each country under sections 23 and 24 of this Act; 22 USC 2763, 2764. “(3) a list of all findings which are in effect on the date of such transmission made by the President pursuant to section 3(a)(1) of this Act, together with a full and complete justification for each such finding, explaining how sales to earn country with respect to which such finding has been made will strengthen the security of the United States and promote world peace; and “(4) an arms control impact statement for each purchasing country, including (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 includes the purchasing country. “(b) Not later than thirty days following the receipt of a request Information, submittal to congressional committee. made by the Committee on Foreign Relations of the Senate or the Committee on International Relations of the House of Representatives for additional information with respect to any estimate submitted pursuant to subsection (a), the President shall submit such information to such committee. “(c) The President shall make every effort to submit all of the information required by this section wholly in unclassified form. In the event 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.”. (b) Section 634(d) of the Foreign Assistance Act of 1961 is 22 USC 2394. amended by striking out “and military sales under this or any other Act” in the fourth sentence. Sec. 210. military sales authorization (a) Section 31(a) of the Foreign Military Sales Act is amended by striking out “not to exceed $405,000,000 for the fiscal year 1975” and inserting in lien thereof “not to exceed $1,039,000,000 for the fiscal year 1976 and not to exceed $740,000,000 for the fiscal year 1977”. (b) Section 31(b) of such Act is amended to read as follows: “(b) The aggregate total of credits, or participations in credits, extended pursuant to this Act and of the, principal amount of loans 22 USC 2764. guaranteed pursuant to section 24(a) shall not exceed $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, of which not less than $1,000,000,000 shall be available only for Israel.”. (c) (1) Section 31 of such Act is further amended by adding at the end thereof the following new subsections: “(c) Funds made, available for the fiscal years 1976 and 1977 under subsection (a) of this section shall be obligated to finance the procurement of defense articles and defense services by Israel on a long-term repayment basis either by the extension of credits, without regard 22 USC 2763. to the limitations contained in section 23, or by the issuance of guaranties under section 24. Repayment shall be hi not less than twenty years, following a grace period of ten years on repayment of principal. Israel shall be released from one-half of its contractual liability to repay the United States Government with respect to defense articles and defense services so financed for each such year. “(d) 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 22 USC 2311 et seq. Assistance Act of 1961 or pursuant to sales under this Act may not exceed $100,000,000 (exclusive of ships and their on-board stores and supplies transferred in accordance with law).”. (2) Subsections (a), (b), (c), and (e) of section 8 of the Act entitled “An Act to amend the Foreign Military Sales Act and for other purposes”, approved January 12, 1971 (Public Law 91–672; 84 Repeal. 22 USC 2321b and notes. Transfer of funds. Stat. 2053), are repealed effective July 1, 1976. All funds in the suspense account referred to in subsection (a) of such section on July 1, 1976, shall be transferred to the general fund of the Treasury. Sec. 211. reports on commercial and governmental military exports; congressional action (a) Section 36 of the Foreign Military Sales Act is amended to read as follows: “Sec. 36. Reports on Commercial and Governmental Military Exports; Congressional Action.— (a) 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 thirty 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 Contents. pursuant to subsection (b)(1) of this section) containing— “(1) a listing of all letters of offer to sell any major defense equipment for $1,006,000 or more under this Act to each foreign country and international organization, by category, if such letter’s of offer have not been accepts 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 23 and guaranty agreements under section 24 made during the 22 USC 2763, 2764. 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 cash sales expected to be made under sections 21 and 22, credits to be extended under section 23, 22 USC 2761, 2762. and guaranty agreements to lie made under section 24 in the quarter of the fiscal year immediately following the quarter for which such report is submitted; “(6) a projection with respect to all cash sales expected to be made and credits expected to be extended to each country and organization for the remainder of the fiscal year in which such report is transmitted; “(7) 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 Act; and “(8) an analysis and description of the services being performed by officers and employees of the United States Government under section 21(a) of this Act, including the number of personnel so employed. 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) (1) In the case of any letter of offer to sell any defense articles Certification, submittal to Speaker of the House and congressional committee. or services under this Act for $25,000,000 or more, or any major defense equipment for $7,000,000 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 Statement, transmittal to congressional committee. (iv) of subsection (a). In addition, the President shall, upon the request of subcommittee or the Committee on International Relations 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 or 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 or defense service proposed to be sold (if known on the date of transmittal of such statement); “(D) an analysis of the arms control impact pertinent to such offer to sell, prepared in consultation with the Secretary of Defense; “(E) the reasons why the foreign country or international organization to which the sale is proposed to be made needs the defense articles or services which are the subject of such sale and a description of how such country or organization intends to use such defense articles or 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 winch 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 or 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 or 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 or services proposed to be sold; “(K) an analysis of the extent to which comparable kinds and amounts of defense articles or 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 or services which are the subject of such sale would be delivered; and “(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, services, or 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. 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) may be classified if the public disclosure thereof would be clearly detrimental to the security of the United States. The letter of offer shall not be issued if the Congress, within thirty calendar days after receiving such certification, adopts a concurrent resolution stating that it objects to the proposed sale, unless the President states in his certification that an emergency exists which inquires such sale in the national security interests of the United States. “(2) 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. Post, p, 765. “(3) For the purpose of expediting the consideration and adoption of concurrent resolutions under this subsection, a motion to proceed to the consideration of any such resolution after it has been reported by the appropriate committee shall be treated as highly privileged in the House of Representatives. “(c) In the case of an application by a person (other than with Certification, transmittal to Speaker of the House and congressional committee. 22 USC 2761, 2762. regard to a sale under section 21 or section 22 of this Act) for a license for the export of any major defense equipment sold under a contract in the amount of $7,000,000 or more or of defense articles or defense services sold under a contract in the amount of $25,000,000 or more, not less than 30 days 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 (1) the foreign country or international organization to which such export, will be made, (2) the dollar amount of the items to be exported, and (3) a description of the items to be exported. In Statement, transmittal to congressional committees. addition, the President shall, upon the request of such committee or the Committee on International Relations 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. A certification transmitted pursuant to this subsection shall lie unclassified, except that the information specified in paragraph (2) and the details of the description specified in paragraph (3) may be classified if the public disclosure thereof would be clearly detrimental to the security of the United States. “(d) In the case of an approval under section 38 of this Act of a Post, p. 744. United States commercial technical assistance, or manufacturing licensing agreement for or in a country not a member of the North Atlantic Treaty Organization 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) containing comparable information, except that the last sentence of such subsection shall not apply to certifications submitted pursuant to this subsection.”. (b) The amendment made by subsection (a) of 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 on or after the date of enactment of this Act and to export licenses for Infra. which an application is filed under section 38 of such Act on or after such date. Sec. 212. control of licenses with respect to arms exports and imports (a) (1) Chapter 3 of the Foreign Military Sales Act is amended by adding at the end thereof the following new section: “Sec. 38. Control of Arms Exports and Imports.— (a) (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 Regulations. 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 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, increase the possibility of outbreak or escalation of conflict, or prejudice the development of bilateral or multilateral arms control arrangements. “(b) (1) 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) 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 Act 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. “(2) Except as otherwise specifically provided in regulations issued tinder subsection (a)(1), no defense articles or defense services designated by the President under subsection (a)(1) may be exported or imported without a license for such export or import, issued in accordance with this Act and regulations issued under this Act, 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) No license may be issued under this Act for the export of any major defense equipment sold under a contract in the amount of $25,000,000 or more to any foreign country which is not a member of the North Atlantic Treaty Organization unless such major defense equipment was sold under this Act. “(c) Any person who willfully violates any provision of this section Penalties. Post, p. 767. or section 31), 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 not more than $100,00(1 or imprisoned not more than two years, or both. “(d) This section applies to and within the Canal Zone. “(e) 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 sections 6 (e), (d), (e), and (f) and 7 (a) and (c) of the Export Administration Act of 1069, subject to the same terms 50 USC app. 2405, 2406. and conditions as are applicable to such powers under such Act. Nothing in this subsection shall be construed as authorizing the withholding of information from the Congress.”. (2) Section 2(b) of the Foreign Military Sales Act is amended— 22 USC 2752. (A) by inserting “and exports” immediately after “sales” both times it appears; and (B) by inserting “and whether there shall be delivery or other performance under such sale or export,” immediately after “thereof,”. (b) (1) Section 414 of the Mutual Security Act of 1954 is repealed. Repeal. 22 USC 1934 and note, 2778 note. Any reference to such section shall be deemed to be a reference to section 38 of the Arms Export Control Act and any reference to licenses issued under section 38 of the Arms Export Control Act shall be deemed to include a reference to licenses issued under section 414 of the Mutual Security Act of 1954. (2) All determinations, authorizations, regulations, orders, contracts, 22 USC 1934 note. agreements, and other actions issued, undertaken, or entered into under section 414 of the Mutual Security Act of 1954 shall continue in full force and effect until modified, revoked, or superseded by appropriate authority. Sec. 213. cancellation and suspension of licenses and contracts Section 42 of the Foreign Military Sales Act is amended 22 USC 2791. by adding at the end thereof the following new subsection: “(e) (1) Each contract for sale entered into under sections 21 and 22 of this Act shall provide that such contract may be canceled in whole 22 USC 2761, 2762. 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 38 of this Act Ante, p. 744. 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 Act. “(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 21 and 22 22 USC 2761, 2762. of this Act that are canceled or suspended under this subsection to the extent such moneys have previously teen 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.”. Sec. 214. administrative expenses Section 43 of the Foreign Military Sales Act is amended by designating the present section as subsection (a) and by adding at the end thereof the following new subsection: “(b) Administrative expenses incurred by any department or agency of the United States Government (including any mission or group) in carrying out functions under this Act which are primarily for the benefit of any foreign country shall be fully reimbursed from amounts received for sales under sections 21 and 22.”. Sec. 215. definitions Section 47 of the Foreign Military Sales Act is amended— (1) by striking out “and” at the end of paragraph (1); (2) by striking out the period at the end of paragraph (2) and inserting in lieu thereof a semicolon; and (3) by adding immediately after paragraph (2) the following new paragraphs: “(3) ‘defense article’, except as provided bi 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 42 USC 2014. Energy Act of 1954) source material, 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 22 USC 2403. in section 644(e) of the Foreign Assistance Act of 1961), used for the purposes of making military sales; “(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 combat 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: and “(7) ‘defense articles and defense services’ means, with respect to commercial exports subject to the provisions of section 38 of this Act, Ante, p. 744. those items designated by the President pursuant to subsection (a)(1) of such section.”. Sec. 216. annual foreign sales report Section 657 of the Foreign Assistance Act of 1061 is 22 USC 2417. amended as follows: (1) The section caption is amended by inserting “and Military Exports” after “Foreign Assistance”. (2) Paragraph (1) of subsection (a) is amended to lead as follows: “(1) the aggregate dollar value of all foreign assistance (including military education and training), foreign military sales, sales credits, and guaranties provided or made by the United States Government by any means to all foreign countries and international organizations, and the aggregate dollar value of such assistance, sales, sales credits, and guaranties, by category, provided or made by the United States Government to or for each such country or organization during that fiscal year;”. (3) Paragraph (3) of subsection (a) is amended to read as follows: “(3) the aggregate dollar value and quantity of defense articles and defense services, and of military education and training, exported to each foreign country and international organization, by category, specifying whether the export was made by grant under chapter 2 or chapter 5 of part IF of this Act, by sale under chapter 2 of the Arms Export Control Act, by commercial sale licensed under chapter 3 of that Act, or by other authority; and”. (4) Paragraph (4) of subsection (a) is repealed. (5) Paragraph (5) of subsection (a) is amended— (A) by redesignating such paragraph as paragraph (4), and (B) by striking out “(4)” and inserting in lieu thereof “(3)”. Sec. 217. report on sales of excess defense articles Not later than February 28, 1977, the President shall Transmittal to Speaker of the House and congressional committee. 22 USC 2751 note. transmit to the Speaker of the House of Representatives and the Committee on Foreign Relations of the Senate a full and complete report, regarding all sales made under the Arms Export Control Act during the period July 1, 1976, through December 31, 1976, of excess defense articles to foreign governments and international organizations (other than any such article sold solely for scrap). Such report shall set forth— (1) the number of such sales; (2) the total acquisition costs of the articles sold; (3) the total gross price paid for such articles exclusive of administrative, surcharges and costs of repairing, rehabilitation, or modifying such articles; (4) the data set forth under paragraphs (1), (2), and (3) totaled separately for those sales made at less than 33⅓ per centum of the acquisition costs thereof; and (5) the estimated total proceeds of soles of articles included under paragraph (4) if such articles had been sold instead through United States Government surplus property disposal operations and the percentage thereof that would have been paid out of such proceeds to meet direct expenses incurred in connection with such dispositions pursuant to law. Sec. 218. study of the effects of arms export control provisions (a) The Secretary of State, in consultation with the Secretary of Defense, shall conduct a comprehensive study of the effects of the enactment of the arms export control provisions contained in this title with a view to determining the consequences of such provisions on (1) the foreign policy of the United States, (2) the balance of payments of the United States, (3) the trade with foreign countries, (4) unemployment in the United States, and (5) weapons procurement by the Department of Defense. “(b) The Secretary of State shall submit the results of such study to the President and the Congress within one year after the date of enactment of this section, together with such comments and recommendations for legislation as he deems appropriate.
1977
International Security Assistance Act of 1977
Pub. L. 95–92 § 15 · 91 Stat. 614
Struck · 22 U.S.C. § 2753(b)
Pub. L. 95–92, § 15, struck out subsec. (b) which related to prohibitions on sales, etc., to countries seizing or fining American fishing vessels for fishing in waters more than twelve miles from their coastlines
Source evidence
Code amendment note
Subsec. (b). Pub. L. 95–92, § 15, struck out subsec. (b) which related to prohibitions on sales, etc., to countries seizing or fining American fishing vessels for fishing in waters more than twelve miles from their coastlines.
Enacted provision · exact public law section
Sec. 15. repeal of prohibition relating to the twelve-mile fishing limit Section 3(b) of the Arms Export Control Act is repealed.
1977
International Security Assistance Act of 1977
Pub. L. 95–92 · 91 Stat. 614
1. Redesignated · 22 U.S.C. § 2753(d)
  Pub. L. 95–92, §§ 16, 17, redesignated existing provisions as par. (1)
2. Struck · 22 U.S.C. § 2753(d)
  Pub. L. 95–92, §§ 16, 17, struck out “, 30 days prior to giving such consent,” before “the President submits”
3. Redesignated · 22 U.S.C. § 2753(d)
  Pub. L. 95–92, §§ 16, 17, redesignated pars. (1) to (5) as subpars. (A) to (E), respectively
4. Added · 22 U.S.C. § 2753(d)
  Pub. L. 95–92, §§ 16, 17, added pars. (2) and (3)
Source evidence
Code amendment note
Subsec. (d). Pub. L. 95–92, §§ 16, 17, redesignated existing provisions as par. (1), struck out “, 30 days prior to giving such consent,” before “the President submits”, redesignated pars. (1) to (5) as subpars. (A) to (E), respectively, and added pars. (2) and (3).
1977
International Security Assistance Act of 1977
Pub. L. 95–92 § 18 · 91 Stat. 614
Added · 22 U.S.C. § 2753(f)
Pub. L. 95–92, § 18, added subsec. (f)
Source evidence
Code amendment note
Subsec. (f). Pub. L. 95–92, § 18, added subsec. (f).
Enacted provision · exact public law section
Sec. 18. prohibition against sales, credits, and guaranties to countries which grant sanctuary to international terrorists Section 3 of the Arms Export Control Act is amended by adding at the end thereof the following new subsection: “(f) (1) Unless the President finds that the national security requires otherwise, he shall terminate all sales, credits, and guaranties under this Act to any government which aids or abets, by granting sanctuary from prosecution to, any individual or group which has committed an act of international terrorism. The President may not thereafter make or extend sales, credits, or guaranties to such government until the end of the one year period beginning on the date of such termination, except that if during its period of ineligibility for sales, credits, and guaranties pursuant to this section such government aids or abets, by granting sanctuary from prosecution to, any other individual or group which has committed an act of international terrorism, such government’s period of ineligibility shall be extended for an additional year for each such individual or group. “(2) If the President finds that the national security justifies a continuation Presidential report to Speaker of the House and congressional committee. of sales, credits, or guaranties to any government described in paragraph (1), he shall report such finding to the Speaker of the House of Representatives and the Committee on Foreign Relations of the Senate.”.
1979
Pub. L. 96–92 § 11 · 93 Stat. 701
1. Amended · 22 U.S.C. § 2753(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)
2. Added · 22 U.S.C. § 2753(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 added cl. (ii)
Source evidence
Code amendment note
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).
Enacted provision · exact public law section
Sec. 11. cooperative cross servicing and lead-nation procurement arrangements within the north atlantic treaty organization Subparagraph (C) of section 3(d)(3) of the Arms Export Control Act is amended to read as follows: 22 USC 2753. “(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 36(b) of this Act 22 USC 2776. with regard to such lead-nation procurement identified the transferees on whose behalf the lead-nation procurement was proposed.”.
1980
International Security and Development Cooperation Act of 1980
Pub. L. 96–533 § 101(a)(2)(A) · 94 Stat. 3131
Substituted · 22 U.S.C. § 2753(d)(1)
Pub. L. 96–533, § 101(a)(2)(A), substituted “pursuant to this paragraph” for “pursuant to this subsection”
Source evidence
Code amendment note
Subsec. (d)(1). Pub. L. 96–533, § 101(a)(2)(A), substituted “pursuant to this paragraph” for “pursuant to this subsection”.
Enacted provision · exact public law section
(A) in the last sentence of paragraph (1) by striking out “subsection” and inserting in lieu thereof “paragraph”; and
1980
International Security and Development Cooperation Act of 1980
Pub. L. 96–533 § 101(a)(2)(B) · 94 Stat. 3131
Substituted · 22 U.S.C. § 2753(d)(2)
Pub. L. 96–533, § 101(a)(2)(B), substituted “paragraph (1) of this subsection” for “this subsection”
Source evidence
Code amendment note
Subsec. (d)(2). Pub. L. 96–533, § 101(a)(2)(B), substituted “paragraph (1) of this subsection” for “this subsection”.
Enacted provision · exact public law section
(B) in paragraph (2) by inserting “paragraph (1) of” immediately before “this subsection”.
1980
International Security and Development Cooperation Act of 1980
Pub. L. 96–533 § 101(a)(1)(B) · 94 Stat. 3131
Redesignated · 22 U.S.C. § 2753(d)(3)
Pub. L. 96–533, § 101(a)(1)(B), added par. (3). Former par. (3) redesignated (4)
Source evidence
Code amendment note
Subsec. (d)(3). Pub. L. 96–533, § 101(a)(1)(B), added par. (3). Former par. (3) redesignated (4).
Enacted provision · exact public law section
(B) by inserting the following new paragraph (3) immediately after paragraph (2): “(3) The President may not give his consent to the transfer to a Report to Congress. 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, the export of which has been licensed or approved under section 38 of this Act, unless at least 30 calendar days before 22 USC 2778. 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 report containing the information specified in subparagraphs (A) through (E) of paragraph (1).”.
1980
International Security and Development Cooperation Act of 1980
Pub. L. 96–533 § 101(a)(1)(A) · 94 Stat. 3131
1. Redesignated · 22 U.S.C. § 2753(d)(4)
  Pub. L. 96–533, § 101(a)(1)(A), (b), redesignated former par. (3) as (4) and, in par (4) as so redesignated
2. Added · 22 U.S.C. § 2753(d)(4)
  Pub. L. 96–533, § 101(a)(1)(A), (b), added subpar. (D)
Source evidence
Code amendment note
Subsec. (d)(4). Pub. L. 96–533, § 101(a)(1)(A), (b), redesignated former par. (3) as (4) and, in par (4) as so redesignated, added subpar. (D).
Enacted provision · exact public law section
(A) by redesignating existing paragraph (3) as paragraph (4); and
1981
Pub. L. 97–113 § 109(b)(2) · 95 Stat. 1519
1. Substituted · 22 U.S.C. § 2753(a)
  Pub. L. 97–113, § 109(b)(2), substituted in introductory text “sold or leased” for “sold”
2. Substituted · 22 U.S.C. § 2753(a)
  Pub. L. 97–113, § 109(b)(2), substituted in introductory text “purchase or lease” for “purchase”
Source evidence
Code amendment note
Subsec. (a). Pub. L. 97–113, § 109(b)(2), substituted in introductory text “sold or leased” for “sold”, and in par. (4) “purchase or lease” for “purchase”.
Enacted provision · exact public law section
(2) in section 3(a)— (A) in the text preceding paragraph (1) by inserting “or leased” immediately after “sold”, and (B) in paragraph (4) by inserting “or lease” immediately after “purchase”; and
1981
Pub. L. 97–113 § 101(a)(1) · 95 Stat. 1519
1. Substituted · 22 U.S.C. § 2753(d)(1)
  Pub. L. 97–113, § 101(a)(1), substituted in introductory text “, or under section 2314(a)(1) or 2314(a)(4) of this title, to a transfer of any major defense equipment valued (in terms of its original acquisition cost) at $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”
2. Substituted · 22 U.S.C. § 2753(d)(1)
  Pub. L. 97–113, § 101(a)(1), substituted in introductory text “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”
3. Substituted · 22 U.S.C. § 2753(d)(1)
  Pub. L. 97–113, § 101(a)(1), substituted in introductory text “article or service” for “defense article or related training or other defense service”
4. Substituted · 22 U.S.C. § 2753(d)(1)
  Pub. L. 97–113, § 101(a)(1), substituted in introductory text “articles or services” for “defense articles, or related training or other defense services,”
Source evidence
Code amendment note
Subsec. (d)(1). Pub. L. 97–113, § 101(a)(1), substituted in introductory text “, or under section 2314(a)(1) or 2314(a)(4) of this title, to a transfer of any major defense equipment valued (in terms of its original acquisition cost) at $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,”.
Enacted provision · exact public law section
(1) Section 3(d)(1) of the Arms Export Control Act is 22 USC 2753. amended— (A) in the text preceding subparagraph (A) by striking out “to a transfer of a defense article, or related training or other defense service, sold under this Act and may not give his consent to such a transfer under section 505(a)(1) or 505(a)(4) of the Foreign Assistance Act of 1961” and inserting in lieu thereof “, or under 22 USC 2314. section 505(a)(1) or 505(a)(4) of the Foreign Assistance Act of 1961, 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,”; (B) by amending subparagraph (B) to read as follows: “(B) a description of the article or service proposed to be transferred, including its acquisition cost,”; (C) in subparagraph (C) by striking out “defense article or related training or other defense service” and inserting in lieu thereof “article or service”; and (D) in the last sentence by striking out “defense articles, or related training or other defense services,” and inserting in lieu thereof “articles or services”.
1981
Pub. L. 97–113 § 102(a) · 95 Stat. 1519
1. Amended · 22 U.S.C. § 2753(d)(2)
  Pub. L. 97–113, § 102(a), designated existing provisions as subpar. (A)
2. Substituted · 22 U.S.C. § 2753(d)(2)
  Pub. L. 97–113, § 102(a), substituted “Except as provided in subparagraph (B), unless” for “Unless”
3. Added · 22 U.S.C. § 2753(d)(2)
  Pub. L. 97–113, § 102(a), added subpar. (B)
Source evidence
Code amendment note
Subsec. (d)(2). Pub. L. 97–113, § 102(a), designated existing provisions as subpar. (A), substituted “Except as provided in subparagraph (B), unless” for “Unless”, and added subpar. (B).
Enacted provision · exact public law section
(a) Section 3(d)(2) of the Arms Export Control Act is amended— (1) by striking out “(2) Unless” and inserting in lieu thereof “(2)(A) Except as provided in subparagraph (B), unless”; and (2) by adding at the end thereof the following: “(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 adopt, within such fifteen-day period, a concurrent resolution disapproving the proposed transfer.”.
1981
Pub. L. 97–113 § 101(a)(2) · 95 Stat. 1519
Substituted · 22 U.S.C. § 2753(d)(3)
Pub. L. 97–113, § 101(a)(2), substituted “transfer of any major defense equipment valued (in terms of its original acquisition cost) at $14,000,000 or more, or of any defense article or defense service valued (in terms of its original acquisition cost) at $50,000,000 or more” for “transfer to a third country of a defense article or a defense service valued (in terms of its original acquisition costs) at $25,000,000 or more, or of major defense equipment valued (in terms of its original acquisition costs) at $7,000,000 or more”
Source evidence
Code amendment note
Subsec. (d)(3). Pub. L. 97–113, § 101(a)(2), substituted “transfer of any major defense equipment valued (in terms of its original acquisition cost) at $14,000,000 or more, or of any defense article or defense service valued (in terms of its original acquisition cost) at $50,000,000 or more” for “transfer to a third country of a defense article or a defense service valued (in terms of its original acquisition costs) at $25,000,000 or more, or of major defense equipment valued (in terms of its original acquisition costs) at $7,000,000 or more”.
Enacted provision · exact public law section
(2) Section 3(d)(3) of such Act is amended by striking out all that follows “The President may not give his consent” through “section 38 of this Act,” and inserting in lieu thereof “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 38 of this Act,”. 22 USC 2778.
1981
Pub. L. 97–113 § 101(a)(3) · 95 Stat. 1519
Struck · 22 U.S.C. § 2753(d)(4)
Pub. L. 97–113, § 101(a)(3), struck out subpar. (D), which provided that subsec. (d) of this section not apply to transfers to the North Atlantic Treaty Organization, any member country of such organization, Japan, Australia, or New Zealand, of any major defense equipment valued (in terms of its original acquisition cost) at less than $7,000,000 or of any defense article or related training or other defense service valued (in terms of its original acquisition cost) at less than $25,000,000
Source evidence
Code amendment note
Subsec. (d)(4). Pub. L. 97–113, § 101(a)(3), struck out subpar. (D), which provided that subsec. (d) of this section not apply to transfers to the North Atlantic Treaty Organization, any member country of such organization, Japan, Australia, or New Zealand, of any major defense equipment valued (in terms of its original acquisition cost) at less than $7,000,000 or of any defense article or related training or other defense service valued (in terms of its original acquisition cost) at less than $25,000,000.
Enacted provision · exact public law section
(3) Section 3(d)(4) of such Act is amended— (A) by inserting “or” at the end of subparagraph (B); (B) by striking out “; or” at the end of subparagraph (C) and inserting in lieu thereof a period; and (C) by striking out subparagraph (D).
1985
International Security and Development Cooperation Act of 1985
Pub. L. 99–83 § 115(b)(2) · 99 Stat. 190
Inserted · 22 U.S.C. § 2753(a)
Pub. L. 99–83, § 115(b)(2), in introductory text and in par. (2) inserted provisions relating to cooperative projects, and in par. (3) inserted “or service” after “such article” in two places
Source evidence
Code amendment note
Subsec. (a). Pub. L. 99–83, § 115(b)(2), in introductory text and in par. (2) inserted provisions relating to cooperative projects, and in par. (3) inserted “or service” after “such article” in two places.
Enacted provision · exact public law section
(2) Section 3(a) of such Act is amended— 22 USC 2753. (A) in the text preceding paragraph (1), by inserting “, and no agreement shall be entered into for a cooperative project (as defined in section 27 of this Act),” after “international organization”; (B) in paragraph (2)— (i) by inserting “, or produced in a cooperative project (as defined in section 27 of this Act),” after “so furnished to it”; and (ii) by inserting “(or the North Atlantic Treaty Organization or the specified member countries (other than the United States) in the case of a cooperative project)” after “international organization” the second place it appears; and (C) in paragraph (3), by inserting “or service” after “such article” both places it appears.
1985
International Security and Development Cooperation Act of 1985
Pub. L. 99–83 § 503(b) · 99 Stat. 190
Struck · 22 U.S.C. § 2753(f)
Pub. L. 99–83, § 503(b), struck out “, credits, and guaranties” and “, credits, or guaranties” wherever appearing in pars. (1) and (2)
Source evidence
Code amendment note
Subsec. (f). Pub. L. 99–83, § 503(b), struck out “, credits, and guaranties” and “, credits, or guaranties” wherever appearing in pars. (1) and (2).
Enacted provision · exact public law section
(b) Conforming Amendment.— Section 3(f) of the Arms Export Control Act is amended by striking out “, credits, and guaranties” 22 USC 2753. and “, credits, or guaranties” each place they appear.
1985
Department of Defense Authorization Act, 1986
Pub. L. 99–145 § 1102(a)(3) · 99 Stat. 583
Repealed · 22 U.S.C. § 2753(a)
Pub. L. 99–145, § 1102(a)(3), which enacted amendments similar to those provided in Pub. L. 99–83, § 115(b)(2), was repealed. See 1986 Amendments note above and former section 1105(a)(5) of Pub. L. 99–145 set out as a Repeals; Effective Date note under section 2752 of this title
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 99–145, § 1102(a)(3), which enacted amendments similar to those provided in Pub. L. 99–83, § 115(b)(2), was repealed. See 1986 Amendments note above and former section 1105(a)(5) of Pub. L. 99–145 set out as a Repeals; Effective Date note under section 2752 of this title.
Enacted provision · exact public law section
(3) Section 3(a) of such Act (22 U.S.C. 2753(a)) is amended— (A) in the text preceding clause (1), by inserting “, and no agreement shall be entered into for a cooperative project (as Ante, p. 199. defined in section 27(b) of this Act),” after “international organization,”; (B) in paragraph (2)— (i) by inserting “, or produced in a cooperative project (as defined in section 27 of this Act)” after “so furnished to it”; (ii) by inserting “(or the North Atlantic Treaty Organization or the specified member countries (other than the United States) in case of a cooperative project)” after “international organization” the second place it appears; and (C) in paragraph (3), by inserting “or service” after “such article” both places it appears.
1986
Pub. L. 99–247 § 1(a)(1) · 100 Stat. 9
Substituted · 22 U.S.C. § 2753(d)(2)(A)
Pub. L. 99–247, § 1(a)(1), substituted “enact, within such 30-day period, a law prohibiting” for “adopt, within such 30-day period, a concurrent resolution disapproving”
Source evidence
Code amendment note
Subsec. (d)(2)(A). Pub. L. 99–247, § 1(a)(1), substituted “enact, within such 30-day period, a law prohibiting” for “adopt, within such 30-day period, a concurrent resolution disapproving”.
Enacted provision · exact public law section
(1) in subparagraph (A), by striking out “adopt, within such 30-day period, a concurrent resolution disapproving” and inserting in lieu thereof “enact, within such 30-day period, a law prohibiting”; and
1986
Pub. L. 99–247 § 1(a)(2) · 100 Stat. 9
Substituted · 22 U.S.C. § 2753(d)(2)(B)
Pub. L. 99–247, § 1(a)(2), substituted “enact, within such fifteen-day period, a law prohibiting” for “adopt, within such fifteen-day period, a concurrent resolution disapproving”
Source evidence
Code amendment note
Subsec. (d)(2)(B). Pub. L. 99–247, § 1(a)(2), substituted “enact, within such fifteen-day period, a law prohibiting” for “adopt, within such fifteen-day period, a concurrent resolution disapproving”.
Enacted provision · exact public law section
(1) in subparagraph (A), by striking out “adopt, within such 30-day period, a concurrent resolution disapproving” and inserting in lieu thereof “enact, within such 30-day period, a law prohibiting”; and
1986
Department of Defense Authorization Act, 1987
Pub. L. 99–661 div. A title XIII § 1342(e) · 100 Stat. 3816
Repealed · 22 U.S.C. § 2753(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
Source evidence
Code amendment note
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.
Enacted provision · exact public law section
(e) Repeal of Duplicative Amendments.— Subsection (a) of section 22 USC 2752, 2752 note, 2753, 2767, 2791. 1102 of the Department of Defense Authorization Act, 1986 (99 Stat. 708), and the amendments made by that subsection are repealed, and the Arms Export Control Act shall apply as if that 22 USC 2751 note. subsection had not been enacted.
1988
Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1989
Pub. L. 100–461 § 577(1) · 102 Stat. 2268
Substituted · 22 U.S.C. § 2753(d)(2)(A)
Pub. L. 100–461, § 577(1), substituted “joint resolution, as provided for in sections 2776(b)(2) and 2776(b)(3) of this title” for “law”
Source evidence
Code amendment note
Subsec. (d)(2)(A). Pub. L. 100–461, § 577(1), substituted “joint resolution, as provided for in sections 2776(b)(2) and 2776(b)(3) of this title” for “law”.
Enacted provision · exact public law section
(1) in paragraph (2)(A), by striking out “law” and inserting in lieu thereof “joint resolution, as provided for in sections 36(b)(2) and 36(b)(3) of this Act”; and
1988
Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1989
Pub. L. 100–461 § 577(2) · 102 Stat. 2268
Inserted · 22 U.S.C. § 2753(d)(3)
Pub. L. 100–461, § 577(2), inserted at end “Such consent shall become effective then only if the Congress does not enact, within a 30-day period, a joint resolution, as provided for in sections 2776(c)(2) and 2776(c)(3) of this title prohibiting the proposed transfer.”
Source evidence
Code amendment note
Subsec. (d)(3). Pub. L. 100–461, § 577(2), inserted at end “Such consent shall become effective then only if the Congress does not enact, within a 30-day period, a joint resolution, as provided for in sections 2776(c)(2) and 2776(c)(3) of this title prohibiting the proposed transfer.”
Enacted provision · exact public law section
(2) in paragraph (3), by adding at the end thereof “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 36(c)(2) and 36(c)(3) of this Act prohibiting the proposed transfer.”.
1989
Anti-Terrorism and Arms Export Amendments Act of 1989
Pub. L. 101–222 § 2(b) · 103 Stat. 1892
Struck · 22 U.S.C. § 2753(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
Source evidence
Code amendment note
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.
Enacted provision · exact public law section
(b) Conforming Amendment.— Section 3(f) of the Arms Export Control Act (22 U.S.C. 2753(f)) is repealed.
1994
Nuclear Proliferation Prevention Act of 1994
Pub. L. 103–236 title VIII § 822(a)(1) · 108 Stat. 382
Added · 22 U.S.C. § 2753(f)
Pub. L. 103–236 added subsec. (f)
Source evidence
Code amendment note
Subsec. (f). Pub. L. 103–236 added subsec. (f).
Enacted provision · exact public law section
(1) Prohibition.— Section 3 of the Arms Export Control Act (22 U.S.C. 2753) is amended by adding at the end the following new subsection: “(f) 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 830(4) of the Nuclear Proliferation Prevention Act of 1994) and unsafeguarded special nuclear material (as defined in section 830(8) of that Act).”.
1996
Pub. L. 104–164 § 142 · 110 Stat. 1421
Added · 22 U.S.C. § 2753(b)
Pub. L. 104–164, § 142, added subsec. (b)
Source evidence
Code amendment note
Subsec. (b). Pub. L. 104–164, § 142, added subsec. (b).
Enacted provision · exact public law section
SEC. 142. STANDARDIZATION OF THIRD COUNTRY TRANSFERS OF DEFENSE ARTICLES. Section 3 of the Arms Export Control Act (22 U.S.C. 2753) is amended by inserting after subsection (a) the following new subsection: “(b) The consent of the President under paragraph (2) of subsection (a) or under paragraph (1) of section 505(a) of the Foreign Assistance Act of 1961 (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 Act 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 620A of the Foreign Assistance Act of 1961; “(4) the United States-origin components are not— “(A) significant military equipment (as defined in section 47(9)); “(B) defense articles for which notification to Congress is required under section 36(b); 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.”.
Effective date note
Pub. L. 104–164, title I, § 141(f), July 21, 1996, 110 Stat. 1433, 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].”
1996
Pub. L. 104–164 § 141(a)(1) · 110 Stat. 1421
Struck · 22 U.S.C. § 2753(d)(2)(A)
Pub. L. 104–164, § 141(a)(1), struck out “, as provided for in sections 2776(b)(2) and 2776(b)(3) of this title” after “joint resolution”
Source evidence
Code amendment note
Subsec. (d)(2)(A). Pub. L. 104–164, § 141(a)(1), struck out “, as provided for in sections 2776(b)(2) and 2776(b)(3) of this title” after “joint resolution”.
Enacted provision · exact public law section
(1) in subparagraph (A), by striking “, as provided for in sections 36(b)(2) and 36(b)(3) of this Act”;
Effective date note
Pub. L. 104–164, title I, § 141(f), July 21, 1996, 110 Stat. 1433, 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].”
1996
Pub. L. 104–164 § 141(a)(2) · 110 Stat. 1421
Substituted · 22 U.S.C. § 2753(d)(2)(B)
Pub. L. 104–164, § 141(a)(2), substituted “joint resolution prohibiting the proposed transfer” for “law prohibiting the proposed transfer”
Source evidence
Code amendment note
Subsec. (d)(2)(B). Pub. L. 104–164, § 141(a)(2), substituted “joint resolution prohibiting the proposed transfer” for “law prohibiting the proposed transfer”.
Enacted provision · exact public law section
(2) in subparagraph (B), by striking “law” and inserting “joint resolution”; and
Effective date note
Pub. L. 104–164, title I, § 141(f), July 21, 1996, 110 Stat. 1433, 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].”
1996
Pub. L. 104–164 § 141(a)(3) · 110 Stat. 1421
Added · 22 U.S.C. § 2753(d)(2)(C); 22 U.S.C. § 2753(d)(2)(D)
Pub. L. 104–164, § 141(a)(3), added subpars. (C) and (D)
Source evidence
Code amendment note
Subsec. (d)(2)(C), (D). Pub. L. 104–164, § 141(a)(3), added subpars. (C) and (D).
Enacted provision · exact public law section
(3) by adding at the end the following: “(C) If the President states in his certification under subparagraph President. (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.”.
Effective date note
Pub. L. 104–164, title I, § 141(f), July 21, 1996, 110 Stat. 1433, 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].”
1996
Pub. L. 104–164 § 141(b) · 110 Stat. 1421
1. Amended · 22 U.S.C. § 2753(d)(3)(A)
  Pub. L. 104–164, § 141(b), designated existing provisions as subpar. (A)
2. Struck · 22 U.S.C. § 2753(d)(3)(A)
  Pub. L. 104–164, § 141(b), struck out “at least 30 calendar days” before “before giving such consent the President”
3. Substituted · 22 U.S.C. § 2753(d)(3)(A)
  Pub. L. 104–164, § 141(b), substituted “a certification” for “a report” after “Committee on Foreign Relations of the Senate”
4. Substituted · 22 U.S.C. § 2753(d)(3)(A)
  Pub. L. 104–164, § 141(b), substituted “Such certification shall be submitted—
Source evidence
Code amendment note
Subsec. (d)(3)(A). Pub. L. 104–164, § 141(b), designated existing provisions as subpar. (A), struck out “at least 30 calendar days” before “before giving such consent the President”, substituted “a certification” for “a report” after “Committee on Foreign Relations of the Senate”, and substituted “Such certification shall be submitted—
“(i) at least 15 calendar days before such consent is given in the case of a transfer to a country which is a member of the North Atlantic Treaty Organization or Australia, Japan, or New Zealand; and “(ii) at least 30 calendar days before such consent is given in the case of a transfer to any other country, unless the President states in his certification that an emergency exists which requires that consent to the proposed transfer become effective immediately in the national security interests of the United States. If the President states in his certification that such an emergency exists (thus waiving the requirements of clause (i) or (ii), as the case may be, and of subparagraph (B)) the President shall set forth in the certification a detailed justification for his determination, including a description of the emergency circumstances which necessitate that consent to the proposed transfer become effective immediately and a discussion of the national security interests involved.” for “Such consent shall become effective then only if the Congress does not enact, within a 30-day period, a joint resolution, as provided for in sections 2776(c)(2) and 2776(c)(3) of this title prohibiting the proposed transfer.”
Enacted provision · exact public law section
(b) Third Country Transfers Under Commercial Sales.— Section 3(d)(3) of such Act (22 U.S.C. 2753(d)(3)) is amended— (1) by inserting “(A)” after “(3)”; (2) in the first sentence— (A) by striking “at least 30 calendar days”; and (B) by striking “report” and inserting “certification”; and (3) by striking the last sentence and inserting the following: “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 President. 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 Effective date. 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.”.
Effective date note
Pub. L. 104–164, title I, § 141(f), July 21, 1996, 110 Stat. 1433, 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].”
1996
Pub. L. 104–164 § 141(b)(3) · 110 Stat. 1421
Added · 22 U.S.C. § 2753(d)(3)(B); 22 U.S.C. § 2753(d)(3)(C)
Pub. L. 104–164, § 141(b)(3), added subpars. (B) and (C)
Source evidence
Code amendment note
Subsec. (d)(3)(B), (C). Pub. L. 104–164, § 141(b)(3), added subpars. (B) and (C).
Enacted provision · exact public law section
(3) by striking the last sentence and inserting the following: “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 President. 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 Effective date. 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.”.
Effective date note
Pub. L. 104–164, title I, § 141(f), July 21, 1996, 110 Stat. 1433, 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].”
1999
District of Columbia Appropriations Act, 2000
Pub. L. 106–113 div. B § 1000(a)(7)(dB)(tXII)(s1225) · 113 Stat. 1501
Added · 22 U.S.C. § 2753(g)
Pub. L. 106–113 added subsec. (g)
Source evidence
Code amendment note
Subsec. (g). Pub. L. 106–113 added subsec. (g).
2002
Security Assistance Act of 2002
Pub. L. 107–228 § 1405(a)(1)(A) · 116 Stat. 1350
Substituted · 22 U.S.C. § 2753(d)(1); 22 U.S.C. § 2753(3)(A)
Pub. L. 107–228, § 1405(a)(1)(A), substituted “Subject to paragraph (5), the President may not” for “The President may not” in introductory provisions
Source evidence
Code amendment note
Subsec. (d)(1), (3)(A). Pub. L. 107–228, § 1405(a)(1)(A), substituted “Subject to paragraph (5), the President may not” for “The President may not” in introductory provisions.
Enacted provision · exact public law section
(A) in paragraphs (1) and (3)(A), by striking “The President may not” and inserting “Subject to paragraph (5), the President may not”; and
2002
Security Assistance Act of 2002
Pub. L. 107–228 § 1405(a)(1)(B) · 116 Stat. 1350
Added · 22 U.S.C. § 2753(d)(5)
Pub. L. 107–228, § 1405(a)(1)(B), added par. (5)
Source evidence
Code amendment note
Subsec. (d)(5). Pub. L. 107–228, § 1405(a)(1)(B), added par. (5).
Enacted provision · exact public law section
(B) by adding at the end of the following new paragraph: “(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).”;
2008
Pub. L. 110–429 § 203(b)(2) · 122 Stat. 4842
Inserted · 22 U.S.C. § 2753(b)(2)
Pub. L. 110–429, § 203(b)(2), inserted “the Government of the Republic of Korea,” before “or the Government of New Zealand”
Source evidence
Code amendment note
Subsec. (b)(2). Pub. L. 110–429, § 203(b)(2), inserted “the Government of the Republic of Korea,” before “or the Government of New Zealand”.
Enacted provision · exact public law section
(2) in section 3(b)(2), by inserting “the Government of the Republic of Korea,” before “or the Government of New Zealand”;
2008
Pub. L. 110–429 § 203(b)(1) · 122 Stat. 4842
Inserted · 22 U.S.C. § 2753(d)(2)(B); 22 U.S.C. § 2753(3)(A)(i); 22 U.S.C. § 2753(d)(2)(5)
Pub. L. 110–429, § 203(b)(1), inserted “the Republic of Korea,” before “or New Zealand”
Source evidence
Code amendment note
Subsec. (d)(2)(B), (3)(A)(i), (5). Pub. L. 110–429, § 203(b)(1), inserted “the Republic of Korea,” before “or New Zealand”.
Enacted provision · exact public law section
(1) in sections 3(d)(2)(B), 3(d)(3)(A)(i), 3(d)(5), 21(e)(2)(A), 36(b), 36(c), 36(d)(2)(A), 62(c)(1), and 63(a)(2), 22 USC 2753, 2761, 2776, 2796a, 2796b. by inserting “the Republic of Korea,” before “or New Zealand” each place it appears;
2010
Defense Trade Cooperation Treaties Implementation Act of 2010
Pub. L. 111–266 § 102(a) · 124 Stat. 2797
Inserted · 22 U.S.C. § 2753(b)
Pub. L. 111–266, § 102(a), inserted “a treaty referred to in section 2778(j)(1)(C)(i) of this title permits such transfer without prior consent of the President, or if” after “under this chapter if” in introductory provisions
Source evidence
Code amendment note
Subsec. (b). Pub. L. 111–266, § 102(a), inserted “a treaty referred to in section 2778(j)(1)(C)(i) of this title permits such transfer without prior consent of the President, or if” after “under this chapter if” in introductory provisions.
Enacted provision · exact public law section
(a) Retransfer Requirements.— Section 3(b) of the Arms Export Control Act (22 U.S.C. 2753(b)) is amended by inserting “a treaty referred to in section 38(j)(1)(C)(i) of this Act permits such transfer without prior consent of the President, or if” after “if”.
2010
Security Cooperation Act of 2010
Pub. L. 111–266 § 301(2) · 124 Stat. 2797
Inserted · 22 U.S.C. § 2753(b)(2)
Pub. L. 111–266, § 301(2), inserted “the Government of Israel,” before “or the Government of New Zealand”
Source evidence
Code amendment note
Subsec. (b)(2). Pub. L. 111–266, § 301(2), inserted “the Government of Israel,” before “or the Government of New Zealand”.
Enacted provision · exact public law section
(2) in section 3(b)(2), by inserting “the Government of Israel,” before “or the Government of New Zealand”.
2010
Security Cooperation Act of 2010
Pub. L. 111–266 § 301(1) · 124 Stat. 2797
Inserted · 22 U.S.C. § 2753(d)(2)(B)
Pub. L. 111–266, § 301(1), inserted “Israel,” before “or New Zealand”
Source evidence
Code amendment note
Subsec. (d)(2)(B). Pub. L. 111–266, § 301(1), inserted “Israel,” before “or New Zealand”.
Enacted provision · exact public law section
(1) in 22 USC 2753, 2761, 2776, 2796a, 2796b. sections 3(d)(2)(B), 3(d)(3)(A)(i), 3(d)(5), 21(e)(2)(A), 36(b), 36(c), 36(d)(2)(A), 62(c)(1), and 63(a)(2), by inserting “Israel,” before “or New Zealand” each place it appears; and
2010
Defense Trade Cooperation Treaties Implementation Act of 2010
Pub. L. 111–266 § 104(a) · 124 Stat. 2797
Inserted · 22 U.S.C. § 2753(d)(3)(A)
Pub. L. 111–266, § 104(a), inserted in introductory provisions “or has been exempted from the licensing requirements of this chapter pursuant to a treaty referred to in section 2778(j)(1)(C)(i) of this title where such treaty does not authorize the transfer without prior United States Government approval” after “approved under section 2778 of this title”
Source evidence
Code amendment note
Subsec. (d)(3)(A). Pub. L. 111–266, § 104(a), inserted in introductory provisions “or has been exempted from the licensing requirements of this chapter pursuant to a treaty referred to in section 2778(j)(1)(C)(i) of this title where such treaty does not authorize the transfer without prior United States Government approval” after “approved under section 2778 of this title”.
Enacted provision · exact public law section
(a) Retransfers and Reexports.— Section 3(d)(3)(A) of such Act (22 U.S.C. 2753(d)(3)(A)) is amended by inserting “or has been exempted from the licensing requirements of this Act pursuant to a treaty referred to in section 38(j)(1)(C)(i) of this Act where such treaty does not authorize the transfer without prior United States Government approval” after “approved under section 38 of this Act”.
2010
Security Cooperation Act of 2010
Pub. L. 111–266 § 301(1) · 124 Stat. 2797
Inserted · 22 U.S.C. § 2753(d)(3)(A)(i)
Pub. L. 111–266, § 301(1), inserted “Israel,” before “or New Zealand”
Source evidence
Code amendment note
Subsec. (d)(3)(A)(i). Pub. L. 111–266, § 301(1), inserted “Israel,” before “or New Zealand”.
Enacted provision · exact public law section
(1) in 22 USC 2753, 2761, 2776, 2796a, 2796b. sections 3(d)(2)(B), 3(d)(3)(A)(i), 3(d)(5), 21(e)(2)(A), 36(b), 36(c), 36(d)(2)(A), 62(c)(1), and 63(a)(2), by inserting “Israel,” before “or New Zealand” each place it appears; and
2010
Security Cooperation Act of 2010
Pub. L. 111–266 § 301(1) · 124 Stat. 2797
Inserted · 22 U.S.C. § 2753(d)(5)
Pub. L. 111–266, § 301(1), inserted “Israel,” before “or New Zealand” in introductory provisions
Source evidence
Code amendment note
Subsec. (d)(5). Pub. L. 111–266, § 301(1), inserted “Israel,” before “or New Zealand” in introductory provisions.
Enacted provision · exact public law section
(1) in 22 USC 2753, 2761, 2776, 2796a, 2796b. sections 3(d)(2)(B), 3(d)(3)(A)(i), 3(d)(5), 21(e)(2)(A), 36(b), 36(c), 36(d)(2)(A), 62(c)(1), and 63(a)(2), by inserting “Israel,” before “or New Zealand” each place it appears; and
2014
Pub. L. 113–276 title II § 208(a)(1) · 128 Stat. 2989
Substituted · 22 U.S.C. § 2753(a); 22 U.S.C. § 2753(d)(1); 22 U.S.C. § 2753(3)(A); 22 U.S.C. § 2753(e)
Pub. L. 113–276 substituted “the Speaker of the House of Representatives, the Committee on Foreign Affairs of the House of Representatives, and” for “the Speaker of the House of Representatives and”
Source evidence
Code amendment note
Subsecs. (a), (d)(1), (3)(A), (e). Pub. L. 113–276 substituted “the Speaker of the House of Representatives, the Committee on Foreign Affairs of the House of Representatives, and” for “the Speaker of the House of Representatives and”.
Enacted provision · exact public law section
(1) in sections 3(a), 3(d)(1), 3(d)(3)(A), 3(e), 5(c), 6, 21(g), 36(a), 36(b)(1), 36(b)(5)(C), 36(c)(1), 36(f), 38(f)(1), 40(f)(1), 40(g)(2)(B), 101(b), and 102(a)(2), 22 USC 2753, 2755, 2756, 2761, 2776, 2778, 2780, 2799. by striking “the Speaker of the House of Representatives and” each place it appears and inserting “the Speaker of the House of Representatives, the Committee on Foreign Affairs of the House of Representatives, and”;

59 of 69 references resolved to an enrolled provision · 10 partial

Editorial Notes

References in Text

This chapter, referred to in subsecs. (a) to (d), was in the original “this Act”, meaning Pub. L. 90–629, Oct. 22, 1968, 82 Stat. 1321, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note set out under section 2751 of this title and Tables.

Section 601(b) of the International Security Assistance and Arms Export Control Act of 1976, referred to in subsec. (d)(2)(D)(i), (3)(C)(i), is section 601(b) of Pub. L. 94–329, June 30, 1976, 90 Stat. 729, which made provision for expedited procedures in the Senate, and is not classified to the Code.

Amendments1971–2014 · 19 rounds

2014

Subsecs. (a), (d)(1), (3)(A), (e). Pub. L. 113–276 substituted “the Speaker of the House of Representatives, the Committee on Foreign Affairs of the House of Representatives, and” for “the Speaker of the House of Representatives and”.

2010

Subsec. (b). Pub. L. 111–266, § 102(a), inserted “a treaty referred to in section 2778(j)(1)(C)(i) of this title permits such transfer without prior consent of the President, or if” after “under this chapter if” in introductory provisions.

Subsec. (b)(2). Pub. L. 111–266, § 301(2), inserted “the Government of Israel,” before “or the Government of New Zealand”.

Subsec. (d)(2)(B). Pub. L. 111–266, § 301(1), inserted “Israel,” before “or New Zealand”.

Subsec. (d)(3)(A). Pub. L. 111–266, § 104(a), inserted in introductory provisions “or has been exempted from the licensing requirements of this chapter pursuant to a treaty referred to in section 2778(j)(1)(C)(i) of this title where such treaty does not authorize the transfer without prior United States Government approval” after “approved under section 2778 of this title”.

Subsec. (d)(3)(A)(i). Pub. L. 111–266, § 301(1), inserted “Israel,” before “or New Zealand”.

Subsec. (d)(5). Pub. L. 111–266, § 301(1), inserted “Israel,” before “or New Zealand” in introductory provisions.

2008

Subsec. (b)(2). Pub. L. 110–429, § 203(b)(2), inserted “the Government of the Republic of Korea,” before “or the Government of New Zealand”.

Subsec. (d)(2)(B), (3)(A)(i), (5). Pub. L. 110–429, § 203(b)(1), inserted “the Republic of Korea,” before “or New Zealand”.

2002

Subsec. (d)(1), (3)(A). Pub. L. 107–228, § 1405(a)(1)(A), substituted “Subject to paragraph (5), the President may not” for “The President may not” in introductory provisions.

Subsec. (d)(5). Pub. L. 107–228, § 1405(a)(1)(B), added par. (5).

1999

Subsec. (g). Pub. L. 106–113 added subsec. (g).

1996

Subsec. (b). Pub. L. 104–164, § 142, added subsec. (b).

Subsec. (d)(2)(A). Pub. L. 104–164, § 141(a)(1), struck out “, as provided for in sections 2776(b)(2) and 2776(b)(3) of this title” after “joint resolution”.

Subsec. (d)(2)(B). Pub. L. 104–164, § 141(a)(2), substituted “joint resolution prohibiting the proposed transfer” for “law prohibiting the proposed transfer”.

Subsec. (d)(2)(C), (D). Pub. L. 104–164, § 141(a)(3), added subpars. (C) and (D).

Subsec. (d)(3)(A). Pub. L. 104–164, § 141(b), designated existing provisions as subpar. (A), struck out “at least 30 calendar days” before “before giving such consent the President”, substituted “a certification” for “a report” after “Committee on Foreign Relations of the Senate”, and substituted “Such certification shall be submitted—

“(i) at least 15 calendar days before such consent is given in the case of a transfer to a country which is a member of the North Atlantic Treaty Organization or Australia, Japan, or New Zealand; and

“(ii) at least 30 calendar days before such consent is given in the case of a transfer to any other country,

Subsec. (d)(3)(B), (C). Pub. L. 104–164, § 141(b)(3), added subpars. (B) and (C).

1994

Subsec. (f). Pub. L. 103–236 added subsec. (f).

1989

Subsec. (f). Pub. L. 101–222 struck out subsec. (f) which directed termination of sales under this chapter to countries granting sanctuary to international terrorists. See section 2780 of this title.

1988

Subsec. (d)(2)(A). Pub. L. 100–461, § 577(1), substituted “joint resolution, as provided for in sections 2776(b)(2) and 2776(b)(3) of this title” for “law”.

Subsec. (d)(3). Pub. L. 100–461, § 577(2), inserted at end “Such consent shall become effective then only if the Congress does not enact, within a 30-day period, a joint resolution, as provided for in sections 2776(c)(2) and 2776(c)(3) of this title prohibiting the proposed transfer.”

1986

Subsec. (a). Pub. L. 99–661 repealed section 1102(a)(3) of Pub. L. 99–145 and the amendments made by that section, and provided that this section shall apply as if that section had never been enacted. See 1985 Amendments note below.

Subsec. (d)(2)(A). Pub. L. 99–247, § 1(a)(1), substituted “enact, within such 30-day period, a law prohibiting” for “adopt, within such 30-day period, a concurrent resolution disapproving”.

Subsec. (d)(2)(B). Pub. L. 99–247, § 1(a)(2), substituted “enact, within such fifteen-day period, a law prohibiting” for “adopt, within such fifteen-day period, a concurrent resolution disapproving”.

1985

Subsec. (a). Pub. L. 99–83, § 115(b)(2), in introductory text and in par. (2) inserted provisions relating to cooperative projects, and in par. (3) inserted “or service” after “such article” in two places.

Pub. L. 99–145, § 1102(a)(3), which enacted amendments similar to those provided in Pub. L. 99–83, § 115(b)(2), was repealed. See 1986 Amendments note above and former section 1105(a)(5) of Pub. L. 99–145 set out as a Repeals; Effective Date note under section 2752 of this title.

Subsec. (f). Pub. L. 99–83, § 503(b), struck out “, credits, and guaranties” and “, credits, or guaranties” wherever appearing in pars. (1) and (2).

1981

Subsec. (a). Pub. L. 97–113, § 109(b)(2), substituted in introductory text “sold or leased” for “sold”, and in par. (4) “purchase or lease” for “purchase”.

Subsec. (d)(1). Pub. L. 97–113, § 101(a)(1), substituted in introductory text “, or under section 2314(a)(1) or 2314(a)(4) of this title, to a transfer of any major defense equipment valued (in terms of its original acquisition cost) at $14,000,000 or more, or any defense article or related training or other defense service valued (in terms of its original acquisition cost) at $50,000,000 or more,” for “to a transfer of a defense article, or related training or other defense service, sold under this chapter and may not give his consent to such a transfer under section 2314(a)(1) or (a)(4) of this title”, in subpar. (B) “a description of the article or service proposed to be transferred, including its acquisition cost” for “a description of the defense article or related training or other defense service proposed to be transferred, including the original acquisition cost of such defense article or related training or other defense service”, in subpar. (C) “article or service” for “defense article or related training or other defense service”, and in provision following subpar. (E) “articles or services” for “defense articles, or related training or other defense services,”.

Subsec. (d)(2). Pub. L. 97–113, § 102(a), designated existing provisions as subpar. (A), substituted “Except as provided in subparagraph (B), unless” for “Unless”, and added subpar. (B).

Subsec. (d)(3). Pub. L. 97–113, § 101(a)(2), substituted “transfer of any major defense equipment valued (in terms of its original acquisition cost) at $14,000,000 or more, or of any defense article or defense service valued (in terms of its original acquisition cost) at $50,000,000 or more” for “transfer to a third country of a defense article or a defense service valued (in terms of its original acquisition costs) at $25,000,000 or more, or of major defense equipment valued (in terms of its original acquisition costs) at $7,000,000 or more”.

Subsec. (d)(4). Pub. L. 97–113, § 101(a)(3), struck out subpar. (D), which provided that subsec. (d) of this section not apply to transfers to the North Atlantic Treaty Organization, any member country of such organization, Japan, Australia, or New Zealand, of any major defense equipment valued (in terms of its original acquisition cost) at less than $7,000,000 or of any defense article or related training or other defense service valued (in terms of its original acquisition cost) at less than $25,000,000.

1980

Subsec. (d)(1). Pub. L. 96–533, § 101(a)(2)(A), substituted “pursuant to this paragraph” for “pursuant to this subsection”.

Subsec. (d)(2). Pub. L. 96–533, § 101(a)(2)(B), substituted “paragraph (1) of this subsection” for “this subsection”.

Subsec. (d)(3). Pub. L. 96–533, § 101(a)(1)(B), added par. (3). Former par. (3) redesignated (4).

Subsec. (d)(4). Pub. L. 96–533, § 101(a)(1)(A), (b), redesignated former par. (3) as (4) and, in par (4) as so redesignated, added subpar. (D).

1979

Subsec. (d)(3)(C). Pub. L. 96–92 made subsec. (d) of this section inapplicable to arrangements between the North Atlantic Treaty Organization and any of its member countries, incorporated existing text in provisions designated cl. (i) and added cl. (ii).

1977

Subsec. (b). Pub. L. 95–92, § 15, struck out subsec. (b) which related to prohibitions on sales, etc., to countries seizing or fining American fishing vessels for fishing in waters more than twelve miles from their coastlines.

Subsec. (d). Pub. L. 95–92, §§ 16, 17, redesignated existing provisions as par. (1), struck out “, 30 days prior to giving such consent,” before “the President submits”, redesignated pars. (1) to (5) as subpars. (A) to (E), respectively, and added pars. (2) and (3).

Subsec. (f). Pub. L. 95–92, § 18, added subsec. (f).

1976

Subsec. (a). Pub. L. 94–329, §§ 203(a), 204(b)(1), inserted in par. (2) “or related training or other defense service” after “article” wherever appearing and struck out provisions following par. (4) relating to the President’s notification of his consent to transfer war implements to another country, in writing, to the Speaker of the House of Representatives and the Committee on Foreign Relations of the Senate indicating his justification for the transfer and the particular war implement transferred.

Subsec. (c). Pub. L. 94–329, § 304(b)(1), provided that the President, by so stating in writing to Congress, or Congress, by joint resolution, terminate credits, guaranties or sales upon determining a violation, permitted cash sales and deliveries pursuant to previous sales to be made if the President certifies in writing to Congress that termination thereof would be adverse to national security unless Congress adopts or has adopted a joint resolution determining such eligibility, and specified conditions for reinstatement of eligibility.

Subsec. (d). Pub. L. 94–329, §§ 204(a), 304(b)(2), added subsec. (d). Former subsec. (d), which related to conditions for reinstatement after a determination of ineligibility, was repealed and is now covered by subsec. (c).

Subsec. (e). Pub. L. 94–329, §§ 204(a), 304(b)(2), added subsec. (e).

1974

Subsec. (d). Pub. L. 93–559 struck out first sentence provision respecting furnishing of sophisticated weapons to countries in violation of agreements pursuant to subsec. (a)(2) of this section, section 2314(a) of this title, or other similar provisions and substituted “in accordance with subsection (c) of this section” for “in accordance with this subsection”.

1973

Subsec. (a). Pub. L. 93–189, § 25(2)(A)–(C), in par. (2) inserted requirement not to use or permit the use of such articles for purposes other than those for which furnished, redesignated former par. (3) as (4), added a new par. (3), and following par. (4), as so redesignated, inserted provisions relating to Presidential consideration of requests prior to consent under par. (2).

Subsecs. (c), (d). Pub. L. 93–189, § 25(2)(D), added subsecs. (c) and (d).

1971

Subsec. (b). Pub. L. 91–672 extended the retaliatory measures against countries seizing, taking custody or fining American vessels for fishing outside of twelve miles of their coast, to sales, credits, guaranties, and laid down a period of one year as the extent of such prohibition, and added assurances of future restraint received from such countries as an additional ground for waiver, and provided exception that the prohibition will not apply in cases governed by international agreements to which the United States is a party.

Statutory Notes and Related Subsidiaries

Effective Date of 1996 Amendment

Pub. L. 104–164, title I, § 141(f), July 21, 1996, 110 Stat. 1433, 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

Pub. L. 94–329, title II, § 203(a), June 30, 1976, 90 Stat. 735, provided that the amendment made by that section is effective July 1, 1976.

Effective Date

Section effective July 1, 1968, see section 41 of Pub. L. 90–629, set out as a note under section 2751 of this title.

Security Assistance for Baltic Nations for Joint Program for Interoperability and Deterrence Against Aggression

Pub. L. 115–91, div. A, title XII, § 1279D, Dec. 12, 2017, 131 Stat. 1702, as amended by Pub. L. 116–92, div. A, title XII, § 1246(c)–(e), Dec. 20, 2019, 133 Stat. 1662, provided the Secretary of Defense could, with the concurrence of the Secretary of State, conduct or support a single joint program of the Baltic nations to improve their interoperability and build their capacity to deter and resist aggression by the Russian Federation and such assistance would not be provided after Dec. 31, 2021.

Enhanced Defense Cooperation

Pub. L. 114–123, § 5, Feb. 18, 2016, 130 Stat. 118, provided that:

“(a)
In General.—
During the 3-year period beginning on the date of the enactment of this Act [Feb. 18, 2016], the Hashemite Kingdom of Jordan shall be treated as if it were a country listed in the provisions of law described in subsection (b) for purposes of applying and administering such provisions of law.
#
“(b)
Arms Export Control Act.—
The provisions of law described in this subsection are—
“(1)
subsections (b)(2), (d)(2)(B), (d)(3)(A)(i), and (d)(5) of section 3 of the Arms Export Control Act (22 U.S.C. 2753);
#
“(2)
subsections (e)(2)(A), (h)(1)(A), and (h)(2) of section 21 of such Act (22 U.S.C. 2761);
#
“(3)
subsections (b)(1), (b)(2), (b)(6), (c), and (d)(2)(A) of section 36 of such Act (22 U.S.C. 2776);
#
“(4)
section 62(c)(1) of such Act (22 U.S.C. 2796a(c)(1)); and
#
“(5)
section 63(a)(2) of such Act (22 U.S.C. 2796b(a)(2)).”
#
#

Pilot Program on Repair, Overhaul, and Refurbishment of Defense Articles for Sale or Transfer to Eligible Foreign Countries and Entities

Pub. L. 112–239, div. A, title XII, § 1285, Jan. 2, 2013, 126 Stat. 2036, provided that:

“(a)
Pilot Program Authorized.—
The Secretary of Defense may carry out a pilot program to repair, overhaul, or refurbish in-stock defense articles in anticipation of the sale or transfer of such defense articles to eligible foreign countries or international organizations under law.
#
“(b)
Fund for Support of Program Authorized.—
The Secretary of Defense may establish and administer a fund to be known as the ‘Special Defense Repair Fund’ (in this section referred to as the ‘Fund’) to support the program authorized by subsection (a).
#
“(c)
Credits to Fund.—
“(1)
In general.—
Subject to paragraphs (2) and (3), the following shall be credited to the Fund:
“(A)
Such amounts, not to exceed $50,000,000, from amounts authorized to be appropriated for overseas contingency operations for fiscal year 2013 as the Secretary of Defense considers appropriate, and reprogrammed under a reprogramming authority provided by another provision of this Act or by other law.
#
“(B)
Notwithstanding section 114(c) of title 10, United States Code, any collection from the sale or transfer of defense articles from Department of Defense stocks repaired, overhauled, or refurbished with amounts from the Fund that are not intended to be replaced which sale or transfer is made pursuant to section 21(a)(1)(A) of the Arms Export Control Act (22 U.S.C. 2761(a)(1)(A)), the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.), or another provision of law.
#
“(C)
Notwithstanding section 37(a) of the Arms Export Control Act (22 U.S.C. 2777(a)), any cash payment from the sale or transfer of defense articles from Department of Defense stocks repaired, overhauled, or refurbished with amounts from the Fund that are intended to be replaced.
#
#
“(2)
Limitation on amounts creditable from sale or transfer of articles.—
“(A)
Credits in connection with articles not to be replaced.—
The amount credited to the Fund under paragraph (1)(B) in connection with a collection from the sale or transfer of defense articles may not exceed the cost incurred by the Department of Defense in repairing, overhauling, or refurbishing such defense articles under the program authorized by subsection (a).
#
“(B)
Credits in connection with articles to be replaced.—
The amount credited to the Fund under paragraph (1)(C) in connection with a sale or transfer of defense articles may not exceed the amounts from the Fund used to repair, overhaul, or refurbish such defense articles.
#
#
“(3)
Limitation on size of fund.—
The total amount in the Fund at any time may not exceed $50,000,000.
#
“(4)
Treatment of amounts credited.—
Amounts credited to the Fund under this subsection shall be merged with amounts in the Fund, and shall remain available until expended.
#
“(5)
Authorization to purchase services from dod working capital fund activities.—
The Fund shall be considered an authorized customer of Department of Defense Working Capital Fund activities. Prices of goods and services sold by Working Capital Fund activities to the Fund shall reflect Foreign Military Sales pricing guidelines, as promulgated by the Department of Defense Financial Management Regulation, and other applicable guidelines.
#
#
“(d)
Nonavailability of Amounts in Fund for Storage, Maintenance, and Related Costs.—
Following the repair, overhaul, or refurbishment of defense articles under the program authorized by subsection (a), amounts in the Fund may not be used to pay costs of storage and maintenance of such defense articles or any other costs associated with the preservation or preparation for sale or transfer of such defense articles.
#
“(e)
Sales or Transfers of Defense Articles.—
“(1)
In general.—
Any sale or transfer of defense articles repaired, overhauled, or refurbished under the program authorized by subsection (a) shall be in accordance with—
“(A)
the Arms Export Control Act (22 U.S.C. 2751 et seq.);
#
“(B)
the Foreign Assistance Act of 1961; or
#
“(C)
another provision of law authorizing such sale or transfer.
#
#
“(2)
Secretary of state concurrence required for certain sales or transfers to foreign countries.—
If the sale or transfer of defense articles occurs in accordance with a provision of law referred to in paragraph (1)(C) that does not otherwise require the concurrence of the Secretary of State for the sale or transfer, the sale or transfer may be made only with the concurrence of the Secretary of State.
#
#
“(f)
Transfers of Amounts.—
“(1)
Transfer to other department of defense accounts.—
Amounts in the Fund may be transferred to any Department of Defense account for use in carrying out the program authorized by subsection (a). Any amount so transferred shall be merged with amounts in the account to which transferred, and shall be available for the same purposes and the same time period as amounts in the account to which transferred.
#
“(2)
Transfer from other department of defense accounts.—
Upon a determination by the Secretary of Defense with respect to an amount transferred under paragraph (1) that all or part of such transfer is not necessary for the purposes transferred, such amount may be transferred back to the Fund. Any amount so transferred shall be merged with amounts in the Fund, and shall remain available until expended.
#
#
“(g)
Certain Excess Proceeds To Be Credited to Special Defense Acquisition Fund.—
Any collection from the sale or transfer of defense articles that are not intended to be replaced in excess of the amount creditable to the Fund under subsection (c)(2)(A) shall be credited to the Special Defense Acquisition Fund established pursuant to chapter 5 of the Arms Export Control Act (22 U.S.C. 2795 et seq.).
#
“(h)
Materiel Efficiencies and Duplication.—
In administering the program authorized by subsection (a), the Secretary of Defense shall ensure to the maximum extent possible that purchases made utilizing the Fund utilize existing Defense Logistics Agency contracts. The Secretary shall also ensure that none of the activities carried out under the program authorized by subsection (a) are duplicative in nature to those performed by other military departments or Defense Agencies.
#
“(i)
Conduct by Public or Private Sector Facilities or Entities.—
The repair, overhaul, and refurbishment of defense articles under the program authorized by subsection (a) may be conducted by a facility or entity in the public sector or the private sector, consistent with the requirements of chapter 146 of title 10, United States Code.
#
“(j)
Reports.—
“(1)
Annual report.—
Not later than 45 days after the end of each fiscal year through the date of expiration specified in subsection (l), the Secretary of Defense shall submit to the appropriate congressional committees a report on the authorities under this section during such fiscal year. Each report shall include, for the fiscal year covered by such report, the following:
“(A)
The types and quantities of defense articles repaired, overhauled, or refurbished under the program authorized by subsection (a).
#
“(B)
The value of the repair, overhaul, or refurbishment performed under the program.
#
“(C)
The amount of operation and maintenance funds credited to the Fund under subsection (c)(1)(A).
#
“(D)
The amount of any collections from the sale or transfer of defense articles repaired, overhauled, or refurbished under the program that was credited to the Fund under subsection (c)(1)(B).
#
“(E)
The amount of any cash payments from the sale or transfer of defense articles repaired, overhauled, or refurbished under the program that was credited to the Fund under subsection (c)(1)(C).
#
#
“(2)
Assessment report.—
Not later than February 1, 2015, the Secretary of Defense shall submit to the appropriate congressional committees a report on the operation of the authorities in this section. The report shall include an assessment of the effectiveness of the authorities in meeting the objectives of the program authorized by subsection (a). At a minimum, the assessment shall address the following:
“(A)
Cost efficiencies generated by utilization of the Fund.
#
“(B)
Time efficiencies gained in the delivery of defense articles under the program.
#
“(C)
An explanation of all amounts transferred to and from the Fund pursuant to subsection (f).
#
“(D)
A detailed account of excess proceeds credited to the Special Defense Acquisition Fund pursuant to section (g).
#
“(E)
A list of defense articles, by quantity and type, repaired under the program and an identification of the foreign countries or international organizations to which the repaired defense articles were sold or transferred.
#
#
“(3)
Appropriate congressional committees defined.—
In this subsection, the term ‘appropriate congressional committees’ means—
“(A)
the congressional defense committees [Committees on Armed Services and Appropriations of the Senate and the House of Representatives]; and
#
“(B)
the Committee on Foreign Relations of the Senate and the Committee on Foreign Affairs of the House of Representatives.
#
#
#
“(k)
Defense Article Defined.—
In this section, the term ‘defense article’ has the meaning given that term in section 47(3) of the Arms Export Control Act (22 U.S.C. 2794(3)).
#
“(l)
Expiration of Authority.—
The authority to carry out the program authorized by subsection (a), and to use amounts in the Fund in support of the program, shall expire on September 30, 2015.”
#

Security Cooperation With the Republic of Korea

Pub. L. 110–429, title II, § 203(a), Oct. 15, 2008, 122 Stat. 4844, provided that:

“Congress makes the following findings:
“(1)
Close and continuing defense cooperation between the United States and the Republic of Korea continues to be in the national security interest of the United States.
#
“(2)
The Republic of Korea was designated a major non-NATO ally in 1987, the first such designation.
#
“(3)
The Republic of Korea has been a major purchaser of United States defense articles and services through the Foreign Military Sales (FMS) program, totaling $6,900,000,000 in deliveries over the last 10 years.
#
“(4)
Purchases of United States defense articles, services, and major defense equipment facilitate and increase the interoperability of Republic of Korea military forces with the United States Armed Forces.
#
“(5)
Congress has previously enacted important, special defense cooperation arrangements for the Republic of Korea, as in the Act entitled ‘An Act to authorize the transfer of items in the War Reserves Stockpile for Allies, Korea’, approved December 30, 2005 (Public Law 109–159; 119 Stat. 2955), which authorized the President, notwithstanding section 514 of the Foreign Assistance Act of 1961 (22 U.S.C. 2321h), to transfer to the Republic of Korea certain defense items to be included in a war reserve stockpile for that country.
#
“(6)
Enhanced support for defense cooperation with the Republic of Korea is important to the national security of the United States, including through creation of a status in law for the Republic of Korea similar to the countries in the North Atlantic Treaty Organization, Japan, Australia, and New Zealand, with respect to consideration by Congress of foreign military sales to the Republic of Korea.”
#

Reporting Requirements

Pub. L. 105–277, div. A, § 101(d) [title V, § 594], Oct. 21, 1998, 112 Stat. 2681–150, 2681–215, as amended by Pub. L. 106–31, title V, § 5002(c)–(e), May 21, 1999, 113 Stat. 109, provided that:

“(a)
Notification.—
No less than 15 days prior to the export to any country identified pursuant to subparagraph (c) of any lethal defense article or service in the amount of $14,000,000 or less, the President shall provide a detailed notification to the Committees on Appropriations and Foreign Relations of the Senate and the Committees on Appropriations and International Relations [now Committee on Foreign Affairs] of the House of Representatives.
#
“(b)
Content of Notification.—
A detailed notification transmitted pursuant to subsection (a) shall include the same type and quantity of information required of a notification submitted pursuant to section 36(b) of the Arms Export Control Act (22 U.S.C. 2776(b)).
#
“(c)
Countries Defined.—
This section shall apply to any country that is—
“(1)
identified in section 520 of this Act [Pub. L. 105–277, 112 Stat. 2681–176], or a comparable provision in a subsequent appropriations Act; or
#
“(2)
currently ineligible, in whole or in part, under an annual appropriations Act to receive funds for International Military Education and Training or under the Foreign Military Financing Program, excluding high-income countries as defined pursuant to section 546(b) of the Foreign Assistance Act of 1961 [22 U.S.C. 2347e(b)].
#
#
“(d)
Exclusions.—
Information reportable under title V of the National Security Act of 1947 [50 U.S.C. 3091 et seq.] is excluded from the requirements of this section.”
#

[For delegation of functions of President under section 101(d) [title V, § 594] of div. A of Pub. L. 105–277, set out above, see Ex. Ord. No. 12163, Sept. 29, 1979, 44 F.R. 56673, as amended, set out as a note under section 2381 of this title.]

Eligibility of Baltic States for Nonlethal Defense Articles

Pub. L. 102–511, title IX, § 906, Oct. 24, 1992, 106 Stat. 3356, provided that:

“(a)
Eligibility.—
Estonia, Latvia, and Lithuania shall each be eligible—
“(1)
to purchase, or to receive financing for the purchase of, nonlethal defense articles—
“(A)
under the Arms Export Control Act (22 U.S.C. 2751 et seq.), without regard to section 3(a)(1) of that Act [22 U.S.C. 2753(a)(1)], or
#
“(B)
under section 503 of the Foreign Assistance Act of 1961 (22 U.S.C. 2311), without regard to the requirement in subsection (a) of that section for a Presidential finding; and
#
#
“(2)
to receive nonlethal excess defense articles transferred under section 519 of the Foreign Assistance Act of 1961 (22 U.S.C. 2321m), without regard to the restrictions in subsection (a) of that section.
#
#
“(b)
Definitions.—
As used in this section—
“(1)
the term ‘defense article’ has the same meaning given to that term in section 47(3) of the Arms Export Control Act (22 U.S.C. 2794(3)); and
#
“(2)
the term ‘excess defense article’ has the same meaning given to that term in section 644(g) of the Foreign Assistance Act of 1961 (22 U.S.C. 2403(g)).”
#
#

Executive Documents

Delegation of Functions

For delegation of certain functions of the President under this section, see section 1(a) of Ex. Ord. No. 13637, Mar. 8, 2013, 78 F.R. 16129, set out as a note under section 2751 of this title. Functions were previously delegated by Ex. Ord. No. 11958, which was formerly set out as a note under section 2751 of this title and was revoked, subject to a savings provision, by section 4 of Ex. Ord. No. 13637.

Credits

1968–2014 · 22 acts

1968Pub. L. 90–629, ch. 1, § 3, Oct. 22, 1968, 82 Stat. 1322
1971Pub. L. 91–672, § 1, Jan. 12, 1971, 84 Stat. 2053
1973Pub. L. 93–189, § 25(2), Dec. 17, 1973, 87 Stat. 729
1974Pub. L. 93–559, § 45(a)(1), Dec. 30, 1974, 88 Stat. 1813
1976Pub. L. 94–329, title II, §§ 203(a), 204(a), (b)(1), title III, § 304(b), June 30, 1976, 90 Stat. 735, 736, 754, 755
1977Pub. L. 95–92, §§ 15–18, Aug. 4, 1977, 91 Stat. 622
1979Pub. L. 96–92, § 11, Oct. 29, 1979, 93 Stat. 705
1980Pub. L. 96–533, title I, § 101, Dec. 16, 1980, 94 Stat. 3131
1981Pub. L. 97–113, title I, §§ 101(a), 102(a), 109(b)(2), Dec. 29, 1981, 95 Stat. 1519, 1520, 1526
1985Pub. L. 99–83, title I, § 115(b)(2), title V, § 503(b), Aug. 8, 1985, 99 Stat. 201, 221
1985Pub. L. 99–145, title XI, § 1102(a)(3), (5), Nov. 8, 1985, 99 Stat. 710
1986Pub. L. 99–247, § 1(a), Feb. 12, 1986, 100 Stat. 9
1986Pub. L. 99–661, div. A, title XIII, § 1342(e), Nov. 14, 1986, 100 Stat. 3991
1988Pub. L. 100–461, title V, § 577, Oct. 1, 1988, 102 Stat. 2268–45
1989Pub. L. 101–222, § 2(b), Dec. 12, 1989, 103 Stat. 1896
1994Pub. L. 103–236, title VIII, § 822(a)(1), Apr. 30, 1994, 108 Stat. 511
1996Pub. L. 104–164, title I, §§ 141(a), (b), 142, July 21, 1996, 110 Stat. 1430, 1431, 1433
1999Pub. L. 106–113, div. B, § 1000(a)(7) [div. B, title XII, § 1225], Nov. 29, 1999, 113 Stat. 1536, 1501A–499
2002Pub. L. 107–228, div. B, title XIV, § 1405(a)(1), Sept. 30, 2002, 116 Stat. 1456
2008Pub. L. 110–429, title II, § 203(b)(1), (2), Oct. 15, 2008, 122 Stat. 4845
2010Pub. L. 111–266, title I, §§ 102(a), 104(a), title III, § 301, Oct. 8, 2010, 124 Stat. 2797, 2799, 2804
2014Pub. L. 113–276, title II, § 208(a)(1), Dec. 18, 2014, 128 Stat. 2992.

Show as published

(Pub. L. 90–629, ch. 1, § 3, Oct. 22, 1968, 82 Stat. 1322; Pub. L. 91–672, § 1, Jan. 12, 1971, 84 Stat. 2053; Pub. L. 93–189, § 25(2), Dec. 17, 1973, 87 Stat. 729; Pub. L. 93–559, § 45(a)(1), Dec. 30, 1974, 88 Stat. 1813; Pub. L. 94–329, title II, §§ 203(a), 204(a), (b)(1), title III, § 304(b), June 30, 1976, 90 Stat. 735, 736, 754, 755; Pub. L. 95–92, §§ 15–18, Aug. 4, 1977, 91 Stat. 622; Pub. L. 96–92, § 11, Oct. 29, 1979, 93 Stat. 705; Pub. L. 96–533, title I, § 101, Dec. 16, 1980, 94 Stat. 3131; Pub. L. 97–113, title I, §§ 101(a), 102(a), 109(b)(2), Dec. 29, 1981, 95 Stat. 1519, 1520, 1526; Pub. L. 99–83, title I, § 115(b)(2), title V, § 503(b), Aug. 8, 1985, 99 Stat. 201, 221; Pub. L. 99–145, title XI, § 1102(a)(3), (5), Nov. 8, 1985, 99 Stat. 710; Pub. L. 99–247, § 1(a), Feb. 12, 1986, 100 Stat. 9; Pub. L. 99–661, div. A, title XIII, § 1342(e), Nov. 14, 1986, 100 Stat. 3991; Pub. L. 100–461, title V, § 577, Oct. 1, 1988, 102 Stat. 2268–45; Pub. L. 101–222, § 2(b), Dec. 12, 1989, 103 Stat. 1896; Pub. L. 103–236, title VIII, § 822(a)(1), Apr. 30, 1994, 108 Stat. 511; Pub. L. 104–164, title I, §§ 141(a), (b), 142, July 21, 1996, 110 Stat. 1430, 1431, 1433; Pub. L. 106–113, div. B, § 1000(a)(7) [div. B, title XII, § 1225], Nov. 29, 1999, 113 Stat. 1536, 1501A–499; Pub. L. 107–228, div. B, title XIV, § 1405(a)(1), Sept. 30, 2002, 116 Stat. 1456; Pub. L. 110–429, title II, § 203(b)(1), (2), Oct. 15, 2008, 122 Stat. 4845; Pub. L. 111–266, title I, §§ 102(a), 104(a), title III, § 301, Oct. 8, 2010, 124 Stat. 2797, 2799, 2804; Pub. L. 113–276, title II, § 208(a)(1), Dec. 18, 2014, 128 Stat. 2992.)