§ 2770. General authority

Statutory text

Sale of defense articles and services by President to United States companies; restriction on performance of services; reimbursement credited to selling agency

Subject to the conditions specified in subsection (b) of this section, the President may, on a negotiated contract basis, under cash terms (1) sell defense articles at not less than their estimated replacement cost (or actual cost in the case of services), or (2) procure or manufacture and sell defense articles at not less than their contract or manufacturing cost to the United States Government, to any United States company for incorporation into end items (and for concurrent or follow-on support) to be sold by such a company either (i) on a direct commercial basis to a friendly foreign country or international organization pursuant to an export license or approval under section 2778 of this title or (ii) in the case of ammunition parts subject to subsection (b) of this section, using commercial practices which restrict actual delivery directly to a friendly foreign country or international organization pursuant to approval under section 2778 of this title. The President may also sell defense services in support of such sales of defense articles, subject to the requirements of this subchapter: Provided, however, That such services may be performed only in the United States. The amount of reimbursement received from such sales shall be credited to the current applicable appropriation, fund, or account of the selling agency of the United States Government.

Conditions of sale

Defense articles and defense services may be sold, procured and sold, or manufactured and sold, pursuant to subsection (a) of this section only if (1) the end item to which the articles apply is to be procured for the armed forces of a friendly country or international organization, (2) the articles would be supplied to the prime contractor as government-furnished equipment or materials if the end item were being procured for the use of the United States Armed Forces, and (3) the articles and services are available only from United States Government sources or are not available to the prime contractor directly from United States commercial sources at such times as may be required to meet the prime contractor’s delivery schedule.

“Defense articles” and “defense services” defined

For the purpose of this section, the terms “defense articles” and “defense services” mean defense articles and defense services as defined in section 2794(3) and (4) of this title.

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.

1982
The Foreign Military Sales Act
Pub. L. 90–629 · 82 Stat. 1320
Enacted · 22 U.S.C. § 2770
Pub. L. 90–629, ch. 2B, § 30, as added Pub. L. 97–392, § 1, Dec. 29, 1982, 96 Stat. 1962
Source evidence
Code source credit
Pub. L. 90–629, ch. 2B, § 30, as added Pub. L. 97–392, § 1, Dec. 29, 1982, 96 Stat. 1962
1989
Department of Defense Appropriations Act, 1990
Pub. L. 101–165 title IX § 9097 · 103 Stat. 1112
1. Inserted · 22 U.S.C. § 2770(a)
  Pub. L. 101–165 inserted “either (i)” after “such a company” in first sentence
2. Inserted · 22 U.S.C. § 2770(a)
  Pub. L. 101–165 inserted before period at end of first sentence “or (ii) in the case of ammunition parts subject to subsection (b) of this section, using commercial practices which restrict actual delivery directly to a friendly foreign country or international organization pursuant to approval under section 2778 of this title”
Source evidence
Code amendment note
Subsec. (a). Pub. L. 101–165 inserted “either (i)” after “such a company” in first sentence and inserted before period at end of first sentence “or (ii) in the case of ammunition parts subject to subsection (b) of this section, using commercial practices which restrict actual delivery directly to a friendly foreign country or international organization pursuant to approval under section 2778 of this title”.
Enacted provision · exact public law section
Sec. 9097. Section 30(a) of chapter 2B of the Arms Export Control 22 USC 2770. Act, Public Law 97–392, is amended by inserting “either (i)” immediately after the phrase “such a company” in the first sentence thereof and by adding immediately before the period at the end of that sentence “or (ii) in the case of ammunition parts subject to subsection (b) of this section, using commercial practices which restrict actual delivery directly to a friendly foreign country or international organization pursuant to approval under section 38 of this Act”.

2 of 3 references resolved to an enrolled provision · 1 partial

Editorial Notes

Amendments

1989—Subsec. (a). Pub. L. 101–165 inserted “either (i)” after “such a company” in first sentence and inserted before period at end of first sentence “or (ii) in the case of ammunition parts subject to subsection (b) of this section, using commercial practices which restrict actual delivery directly to a friendly foreign country or international organization pursuant to approval under section 2778 of this title”.

Executive Documents

Delegation of Functions

For delegation of functions of the President under this section, see section 1(d) 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

1982–1989 · 2 acts

1982Pub. L. 90–629, ch. 2B, § 30, as added Pub. L. 97–392, § 1, Dec. 29, 1982, 96 Stat. 1962
1989amended Pub. L. 101–165, title IX, § 9097, Nov. 21, 1989, 103 Stat. 1150.

Show as published

(Pub. L. 90–629, ch. 2B, § 30, as added Pub. L. 97–392, § 1, Dec. 29, 1982, 96 Stat. 1962; amended Pub. L. 101–165, title IX, § 9097, Nov. 21, 1989, 103 Stat. 1150.)