§ 2761. — Sales from stocks.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 22USC2761]
TITLE 22--FOREIGN RELATIONS AND INTERCOURSE
CHAPTER 39--ARMS EXPORT CONTROL
SUBCHAPTER II--FOREIGN MILITARY SALES AUTHORIZATIONS
Sec. 2761. Sales from stocks
(a) Eligible countries or international organizations; basis of payment;
valuation of certain defense articles
(1) The President may sell defense articles and defense services
from the stocks of the Department of Defense and the Coast Guard to any
eligible country or international organization if such country or
international organization agrees to pay in United States dollars--
(A) in the case of a defense article not intended to be replaced
at the time such agreement is entered into, not less than the actual
value thereof;
(B) in the case of a defense article intended to be replaced at
the time such agreement is entered into, the estimated cost of
replacement of such article, including the contract or production
costs less any depreciation in the value of such article; or
(C) in the case of the sale of a defense service, the full cost
to the United States Government of furnishing such service, except
that in the case of training sold to a purchaser who is concurrently
receiving assistance under chapter 5 of part II of the Foreign
Assistance Act of 1961 [22 U.S.C. 2347 et seq.] or to any high-
income foreign country (as described in that chapter), only those
additional costs that are incurred by the United States Government
in furnishing such assistance.
(2) For purposes of subparagraph (A) of paragraph (1), the actual
value of a naval vessel of 3,000 tons or less and 20 years or more of
age shall be considered to be not less than the greater of the scrap
value or fair value (including conversion costs) of such vessel, as
determined by the Secretary of Defense.
(b) Time of payment
Except as provided by subsection (d) of this section, payment shall
be made in advance or, if the President determines it to be in the
national interest, upon delivery of the defense article or rendering of
the defense service.
(c) Personnel performing defense services sold as prohibited from
performing combat activities
(1) Personnel performing defense services sold under this chapter
may not perform any duties of a combatant nature, including any duties
related to training and advising that may engage United States personnel
in combat activities, outside the United States in connection with the
performance of those defense services.
(2) Within forty-eight hours of the existence of, or a change in
status of significant hostilities or terrorist acts or a series of such
acts, which may endanger American lives or property, involving a country
in which United States personnel are performing defense services
pursuant to this chapter or the Foreign Assistance Act of 1961 [22
U.S.C. 2151 et seq.], the President shall submit to the Speaker of the
House of Representatives and to the President pro tempore of the Senate
a report, in writing, classified if necessary, setting forth--
(A) the identity of such country;
(B) a description of such hostilities or terrorist acts; and
(C) the number of members of the United States Armed Forces and
the number of United States civilian personnel that may be
endangered by such hostilities or terrorist acts.
(d) Billings; interest after due date, rates of interest and extension
of due date
If the President determines it to be in the national interest
pursuant to subsection (b) of this section, billings for sales made
under letters of offer issued under this section after June 30, 1976,
may be dated and issued upon delivery of the defense article or
rendering of the defense service and shall be due and payable upon
receipt thereof by the purchasing country or international organization.
Interest shall be charged on any net amount due and payable which is not
paid within sixty days after the date of such billing. The rate of
interest charged shall be a rate not less than a rate determined by the
Secretary of the Treasury taking into consideration the current average
market yield on outstanding short-term obligations of the United States
as of the last day of the month preceding the billing and shall be
computed from the date of billing. The President may extend such sixty-
day period to one hundred and twenty days if he determines that
emergency requirements of the purchaser for acquisition of such defense
articles or defense services exceed the ready availability to the
purchaser of funds sufficient to pay the United States in full for them
within such sixty-day period and submits that determination to the
Congress together with a special emergency request for the authorization
and appropriation of additional funds to finance such purchases under
this chapter.
(e) Charges; reduction or waiver
(1) After September 30, 1976, letters of offer for the sale of
defense articles or for the sale of defense services that are issued
pursuant to this section or pursuant to section 2762 of this title shall
include appropriate charges for--
(A) administrative services, calculated on an average percentage
basis to recover the full estimated costs (excluding a pro rata
share of fixed base operation costs) of administration of sales made
under this chapter to all purchasers of such articles and services
as specified in section 2792(b) of this title and section 2792(c) of
this title;
(B) a proportionate amount of any nonrecurring costs of
research, development, and production of major defense equipment
(except for equipment wholly paid for either from funds transferred
under section 503(a)(3) of the Foreign Assistance Act of 1961 [22
U.S.C. 2311(a)(3)] or from funds made available on a nonrepayable
basis under section 2763 of this title); and
(C) the recovery of ordinary inventory losses associated with
the sale from stock of defense articles that are being stored at the
expense of the purchaser of such articles.
(2)(A) The President may reduce or waive the charge or charges which
would otherwise be considered appropriate under paragraph (1)(B) for
particular sales that would, if made, significantly advance United
States Government interests in North Atlantic Treaty Organization
standardization, standardization with the Armed Forces of Japan,
Australia, or New Zealand in furtherance of the mutual defense treaties
between the United States and those countries, or foreign procurement in
the United States under coproduction arrangements.
(B) The President may waive the charge or charges which would
otherwise be considered appropriate under paragraph (1)(B) for a
particular sale if the President determines that--
(i) imposition of the charge or charges likely would result in
the loss of the sale; or
(ii) in the case of a sale of major defense equipment that is
also being procured for the use of the Armed Forces, the waiver of
the charge or charges would (through a resulting increase in the
total quantity of the equipment purchased from the source of the
equipment that causes a reduction in the unit cost of the equipment)
result in a savings to the United States on the cost of the
equipment procured for the use of the Armed Forces that
substantially offsets the revenue foregone by reason of the waiver
of the charge or charges.
(C) The President may waive, for particular sales of major defense
equipment, any increase in a charge or charges previously considered
appropriate under paragraph (1)(B) if the increase results from a
correction of an estimate (reasonable when made) of the production
quantity base that was used for calculating the charge or charges for
purposes of such paragraph.
(3)(A) The President may waive the charges for administrative
services that would otherwise be required by paragraph (1)(A) in
connection with any sale to the Maintenance and Supply Agency of the
North Atlantic Treaty Organization in support of--
(i) a weapon system partnership agreement; or
(ii) a NATO/SHAPE project.
(B) The Secretary of Defense may reimburse the fund established to
carry out section 2792(b) of this title in the amount of the charges
waived under subparagraph (A) of this paragraph. Any such reimbursement
may be made from any funds available to the Department of Defense.
(C) As used in this paragraph--
(i) the term ``weapon system partnership agreement'' means an
agreement between two or more member countries of the Maintenance
and Supply Agency of the North Atlantic Treaty Organization that--
(I) is entered into pursuant to the terms of the charter of
that organization; and
(II) is for the common logistic support of a specific weapon
system common to the participating countries; and
(ii) the term ``NATO/SHAPE project'' means a common-funded
project supported by allocated credits from North Atlantic Treaty
Organization bodies or by host nations with NATO Infrastructure
funds.
(f) Public inspection of contracts
Any contracts entered into between the United States and a foreign
country under the authority of this section or section 2762 of this
title shall be prepared in a manner which will permit them to be made
available for public inspection to the fullest extent possible
consistent with the national security of the United States.
(g) North Atlantic Treaty Organization standardization agreements,
similar agreements; reimbursement for costs; transmittal to
Congress
The President may enter into North Atlantic Treaty Organization
standardization agreements in carrying out section 814 of the Act of
October 7, 1975 (Public Law 94-106), and may enter into similar
agreements with countries which are major non-NATO allies, for the
cooperative furnishing of training on bilateral or multilateral basis,
if the financial principles of such agreements are based on reciprocity.
Such agreements shall include reimbursement for all direct costs but may
exclude reimbursement for indirect costs, administrative surcharges, and
costs of billeting of trainees (except to the extent that members of the
United States Armed Forces occupying comparable accommodations are
charged for such accommodations by the United States). Each such
agreement shall be transmitted promptly to the Speaker of the House of
Representatives and the Committees on Appropriations, Armed Services,
and Foreign Relations of the Senate.
(h) Reciprocal quality assurance, inspection, contract administrative
services, and contract audit defense services; catalog data and
services
(1) The President is authorized to provide (without charge) quality
assurance, inspection, contract administration services, and contract
audit defense services under this section--
(A) in connection with the placement or administration of any
contract or subcontract for defense articles, defense services, or
design and construction services entered into after October 29,
1979, by, or under this chapter on behalf of, a foreign government
which is a member of the North Atlantic Treaty Organization, if such
government provides such services in accordance with an agreement on
a reciprocal basis, without charge, to the United States Government;
or
(B) in connection with the placement or administration of any
contract or subcontract for defense articles, defense services, or
design and construction services pursuant to the North Atlantic
Treaty Organization Security Investment program in accordance with
an agreement under which the foreign governments participating in
such program provide such services, without charge, in connection
with similar contracts or subcontracts.
(2) In carrying out the objectives of this section, the President is
authorized to provide cataloging data and cataloging services, without
charge, to the North Atlantic Treaty Organization or to any member
government of that Organization if that Organization or member
government provides such data and services in accordance with an
agreement on a reciprocal basis, without charge, to the United States
Government.
(i) Sales affecting combat readiness of Armed Forces; statement to
Congress; limitation on delivery
(1) Sales of defense articles and defense services which could have
significant adverse effect on the combat readiness of the Armed Forces
of the United States shall be kept to an absolute minimum. The President
shall transmit to the Speaker of the House of Representatives and the
Committees on Armed Services and Foreign Relations of the Senate on the
same day a written statement giving a complete explanation with respect
to any proposal to sell, under this section or under authority of
subchapter II-B of this chapter, any defense articles or defense
services if such sale could have a significant adverse effect on the
combat readiness of the Armed Forces of the United States. Each such
statement shall be unclassified except to the extent that public
disclosure of any item of information contained therein would be clearly
detrimental to the security of the United States. Any necessarily
classified information shall be confined to a supplemental report. Each
such statement shall include an explanation relating to only one such
proposal to sell and shall set forth--
(A) the country or international organization to which the sale
is proposed to be made;
(B) the amount of the proposed sale;
(C) a description of the defense article or service proposed to
be sold;
(D) a full description of the impact which the proposed sale
will have on the Armed Forces of the United States; and
(E) a justification for such proposed sale, including a
certification that such sale is important to the security of the
United States.
A certification described in subparagraph (E) shall take effect on the
date on which such certification is transmitted and shall remain in
effect for not to exceed one year.
(2) No delivery may be made under any sale which is required to be
reported under paragraph (1) of this subsection unless the certification
required to be transmitted by paragraph \1\ (E) of paragraph (1) is in
effect.
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\1\ So in original. Probably should be ``subparagraph''.
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(j) Repealed. Pub. L. 104-106, div. A, title I, Sec. 112, Feb. 10, 1996,
110 Stat. 206
(k) Effect of sales of excess defense articles on national technology
and industrial base
Before entering into the sale under this chapter of defense articles
that are excess to the stocks of the Department of Defense, the
President shall determine that the sale of such articles will not have
an adverse impact on the national technology and industrial base and,
particularly, will not reduce the opportunities of entities in the
national technology and industrial base to sell new or used equipment to
the countries to which such articles are transferred.
(l) Repair of defense articles
(1) In general
The President may acquire a repairable defense article from a
foreign country or international organization if such defense
article--
(A) previously was transferred to such country or
organization under this chapter;
(B) is not an end item; and
(C) will be exchanged for a defense article of the same type
that is in the stocks of the Department of Defense.
(2) Limitation
The President may exercise the authority provided in paragraph
(1) only to the extent that the Department of Defense--
(A)(i) has a requirement for the defense article being
returned; and
(ii) has available sufficient funds authorized and
appropriated for such purpose; or
(B)(i) is accepting the return of the defense article for
subsequent transfer to another foreign government or
international organization pursuant to a letter of offer and
acceptance implemented in accordance with this chapter; and
(ii) has available sufficient funds provided by or on behalf
of such other foreign government or international organization
pursuant to a letter of offer and acceptance implemented in
accordance with this chapter.
(3) Requirement
(A) The foreign government or international organization
receiving a new or repaired defense article in exchange for a
repairable defense article pursuant to paragraph (1) shall, upon the
acceptance by the United States Government of the repairable defense
article being returned, be charged the total cost associated with
the repair and replacement transaction.
(B) The total cost charged pursuant to subparagraph (A) shall be
the same as that charged the United States Armed Forces for a
similar repair and replacement transaction, plus an administrative
surcharge in accordance with subsection (e)(1)(A) of this section.
(4) Relationship to certain other provisions of law
The authority of the President to accept the return of a
repairable defense article as provided in subsection (a) of this
section shall not be subject to chapter 137 of title 10 or any other
provision of law relating to the conclusion of contracts.
(m) Return of defense articles
(1) In general
The President may accept the return of a defense article from a
foreign country or international organization if such defense
article--
(A) previously was transferred to such country or
organization under this chapter;
(B) is not significant military equipment (as defined in
section 2794(9) of this title); and
(C) is in fully functioning condition without need of repair
or rehabilitation.
(2) Limitation
The President may exercise the authority provided in paragraph
(1) only to the extent that the Department of Defense--
(A)(i) has a requirement for the defense article being
returned; and
(ii) has available sufficient funds authorized and
appropriated for such purpose; or
(B)(i) is accepting the return of the defense article for
subsequent transfer to another foreign government or
international organization pursuant to a letter of offer and
acceptance implemented in accordance with this chapter; and
(ii) has available sufficient funds provided by or on behalf
of such other foreign government or international organization
pursuant to a letter of offer and acceptance implemented in
accordance with this chapter.
(3) Credit for transaction
Upon acquisition and acceptance by the United States Government
of a defense article under paragraph (1), the appropriate Foreign
Military Sales account of the provider shall be credited to reflect
the transaction.
(4) Relationship to certain other provisions of law
The authority of the President to accept the return of a defense
article as provided in paragraph (1) shall not be subject to chapter
137 of title 10 or any other provision of law relating to the
conclusion of contracts.
(Pub. L. 90-629, ch. 2, Sec. 21, Oct. 22, 1968, 82 Stat. 1323; Pub. L.
94-329, title II, Secs. 205, 206, June 30, 1976, 90 Stat. 736, 738; Pub.
L. 95-384, Sec. 16, Sept. 26, 1978, 92 Stat. 740; Pub. L. 96-92,
Sec. 12, Oct. 29, 1979, 93 Stat. 705; Pub. L. 96-533, title I,
Secs. 102, 103, 105(b)(1), 115(b)(2), Dec. 16, 1980, 94 Stat. 3132,
3134, 3140; Pub. L. 97-113, title I, Secs. 103, 104, Dec. 29, 1981, 95
Stat. 1521; Pub. L. 97-392, Sec. 3, Dec. 29, 1982, 96 Stat. 1963; Pub.
L. 98-473, title I, Sec. 101(1) [title III, Sec. 301], Oct. 12, 1984, 98
Stat. 1884, 1895; Pub. L. 99-83, title I, Secs. 107(a), 108-111, Aug. 8,
1985, 99 Stat. 196, 197; Pub. L. 100-202, Sec. 101(e) [title V,
Sec. 580], Dec. 22, 1987, 101 Stat. 1329-131, 1329-181; Pub. L. 100-456,
div. A, title X, Sec. 1002, Sept. 29, 1988, 102 Stat. 2037; Pub. L. 101-
165, title IX, Sec. 9104(c), Nov. 21, 1989, 103 Stat. 1152; Pub. L. 102-
25, title VII, Sec. 705(d)(1), Apr. 6, 1991, 105 Stat. 120; Pub. L. 102-
484, div. A, title I, Sec. 114, Oct. 23, 1992, 106 Stat. 2333; Pub. L.
103-236, title VII, Sec. 731(d), Apr. 30, 1994, 108 Stat. 503; Pub. L.
104-106, div. A, title I, Sec. 112, div. D, title XLIII, Sec. 4303(a),
Feb. 10, 1996, 110 Stat. 206, 658; Pub. L. 104-164, title I,
Secs. 104(b)(1), 112(c)(2), 147(a)(3)(A), (b), 152(a), (b), July 21,
1996, 110 Stat. 1426, 1428, 1435, 1438, 1439; Pub. L. 104-201, div. B,
title XXVIII, Sec. 2802(d)(2), Sept. 23, 1996, 110 Stat. 2787; Pub. L.
106-113, div. B, Sec. 1000(a)(7) [div. B, title XII, Sec. 1222], Nov.
29, 1999, 113 Stat. 1536, 1501A-498.)
References in Text
The Foreign Assistance Act of 1961, referred to in subsecs.
(a)(1)(C) and (c)(2), is Pub. L. 87-195, Sept. 4, 1961, 75 Stat. 424, as
amended, which is classified principally to chapter 32 (Sec. 2151 et
seq.) of this title. Chapter 5 of part II of such Act is classified
generally to part V of subchapter II (Sec. 2347 et seq.) of chapter 32
of this title. For complete classification of this Act to the Code, see
Short Title note set out under section 2151 of this title and Tables.
Section 814 of the act of October 7, 1975 (Public Law 94-106),
referred to in subsec. (g), is not classified to the Code.
Codification
Amendment by Pub. L. 98-473 is based on section 102 of S. 2346,
Ninety-eighth Congress, as introduced in the Senate Feb. 27, 1984, which
was enacted into permanent law by Pub. L. 98-473.
Amendments
1999--Subsec. (a)(1). Pub. L. 106-113 inserted ``and the Coast
Guard'' after ``Department of Defense'' in introductory provisions.
1996--Subsec. (a)(1)(C). Pub. L. 104-164, Sec. 112(c)(2), inserted
``or to any high-income foreign country (as described in that
chapter)''.
Subsec. (e)(2). Pub. L. 104-106, Sec. 4303(a), designated existing
provisions as subpar. (A) and added subpars. (B) and (C).
Subsec. (g). Pub. L. 104-164, Sec. 147(a)(3)(A), (b), substituted
``similar agreements with countries'' for ``similar agreements with
Japan, Australia, and New Zealand, and with other countries'' in first
sentence and struck out at end ``As used in this subsection, the term
`major non-NATO allies' means those countries designated as major non-
NATO allies for purposes of section 2350a(i)(3) of title 10.''
Subsec. (h)(1)(B). Pub. L. 104-201 substituted ``Security Investment
program'' for ``Infrastructure Program''.
Subsec. (j). Pub. L. 104-106, Sec. 112, struck out heading and text
of subsec. (j). Text read as follows:
``(1) Funds received from the sale of tanks under this section shall
be available for the upgrading of tanks for fielding to the Army.
``(2) Funds received from the sale of infantry fighting vehicles or
armored personnel carriers under this section shall be available for the
upgrading of infantry fighting vehicles or armored personnel carriers
for fielding to the Army.
``(3) Paragraphs (1) and (2) apply only to the extent provided in
advance in appropriations Acts.
``(4) This subsection applies with respect to funds received from
sales occurring after September 30, 1989.''
Subsec. (k). Pub. L. 104-164, Sec. 104(b)(1), substituted ``the
President shall determine that the sale of such articles will not have
an adverse impact on the national technology and industrial base and,
particularly, will not reduce the opportunities of entities in the
national technology and industrial base to sell new or used equipment to
the countries to which such articles are transferred.'' for ``the
President shall first consider the effects of the sale of the articles
on the national technology and industrial base, particularly the extent,
if any, to which the sale reduces the opportunities of entities in the
national technology and industrial base to sell new equipment to the
country or countries to which the excess defense articles are sold.''
Subsec. (l). Pub. L. 104-164, Sec. 152(a), added subsec. (l).
Subsec. (m). Pub. L. 104-164, Sec. 152(b), added subsec. (m).
1994--Subsec. (k). Pub. L. 103-236 added subsec. (k).
1992--Subsec. (j). Pub. L. 102-484 added subsec. (j).
1991--Subsec. (g). Pub. L. 102-25 substituted ``section 2350a(i)(3)
of title 10'' for ``section 2767a of this title''.
1989--Subsec. (e)(1)(A). Pub. L. 101-165, Sec. 9104(c)(1), inserted
reference to section 2792(b) and (c) of this title.
Subsec. (e)(1)(B). Pub. L. 101-165, Sec. 9104(c)(2), (3),
redesignated subpar. (C) as (B) and inserted exception for equipment
wholly paid for from funds transferred under the Foreign Assistance Act
of 1961 or from funds made available under section 2763 of this title.
Former subpar. (B), which included charges for any use of plant and
production equipment in connection with defense articles, was struck
out.
Subsec. (e)(1)(C), (D). Pub. L. 101-165, Sec. 9104(c)(3),
redesignated subpar. (D) as (C). Former subpar. (C) redesignated (B).
Subsec. (e)(2). Pub. L. 101-165, Sec. 9104(c)(4), substituted
reference to par. (1)(B) for reference to pars. (1)(B) and (1)(C).
1988--Subsec. (e)(3). Pub. L. 100-456 added par. (3).
1987--Subsec. (g). Pub. L. 100-202 inserted ``and with other
countries which are major non-NATO allies,'' after ``New Zealand,'' and
inserted last sentence defining ``major non-NATO allies''.
1985--Subsec. (a)(1). Pub. L. 99-83, Sec. 107(a)(1), (2), designated
existing provisions as par. (1), and substituted ``(A)'', ``(B)'', and
``(C)'' for ``(1)'', ``(2)'', and ``(3)'', respectively.
Subsec. (a)(1)(C). Pub. L. 99-83, Sec. 108(a), inserted provisions
relating to training sold to a purchaser receiving assistance under
chapter 5 of part II of the Foreign Assistance Act of 1961.
Subsec. (a)(2). Pub. L. 99-83, Sec. 107(a)(3), added par. (2).
Subsec. (e)(1)(A). Pub. L. 99-83, Sec. 109, inserted provisions
excluding pro rata share of fixed base operation costs.
Subsec. (g). Pub. L. 99-83, Sec. 108(b), added subsec. (g).
Subsec. (h)(1). Pub. L. 99-83, Secs. 110, 111(1), (2), designated
existing provisions as par. (1), inserted applicability to contract
administrative services, and substituted ``(A)'' and ``(B)'' for ``(1)''
and ``(2)'', respectively.
Subsec. (h)(2). Pub. L. 99-83, Sec. 111(3), added par. (2).
1984--Subsec. (a)(3). Pub. L. 98-473 struck out ``sold to a
purchaser who is concurrently receiving assistance under chapter 5 of
part II of the Foreign Assistance Act of 1961'' after ``in the case of
training''.
Subsec. (g). Pub. L. 98-473 struck out subsec. (g) which related to
NATO standardization agreements and similar agreements with Japan,
Australia, and New Zealand.
1982--Subsec. (i)(1). Pub. L. 97-392 inserted reference to proposals
to sell under the authority of subchapter II-B of this chapter.
1981--Subsec. (c)(2). Pub. L. 97-113, Sec. 103, substituted
provision for a report within forty-eight hours of existence of or
change in status of significant hostilities or terrorist acts or series
of such acts, which may endanger American lives or property for
provision for a report within 48 hours after outbreak of significant
hostilities and omitted provision for statement of relation between the
defense services and hostilities in the country, the location and
precise nature of personnel activities, and likelihood of personnel
engagement in the hostilities.
Subsec. (e)(2). Pub. L. 97-113, Sec. 104, authorized reduction or
waiver of charges for use and nonrecurring research, development, and
production costs respecting sales significantly advancing United States
interests in standardization with Armed Forces of Japan, Australia, or
New Zealand in furtherance of the mutual defense treaties between the
United States and those countries.
1980--Subsec. (a)(3). Pub. L. 96-533, Sec. 115(b)(2), included
payment, in case of training sold to a purchaser currently receiving
international military education and training assistance, of additional
costs incurred by the United States Government in furnishing the
training.
Subsec. (c). Pub. L. 96-533, Sec. 102, designated existing provision
as par. (1), substituted ``training and advising that may engage United
States personnel in combat activities'' for ``training, advising, or
otherwise providing assistance regarding combat activities'', and added
par. (2).
Subsec. (g). Pub. L. 96-533, Sec. 103, authorized the President to
enter into standardization agreements with Japan, Australia, and New
Zealand.
Subsec. (h). Pub. L. 96-533, Sec. 105(b)(1), substituted ``defense
articles, defense services, or design and construction services'' for
``defense articles or defense services'' in two places.
1979--Subsecs. (h), (i). Pub. L. 96-92 added subsec. (h) and
redesignated former subsec. (h) as (i).
1978--Subsec. (e)(1)(D). Pub. L. 95-384 added subpar. (D).
1976--Subsec. (a). Pub. L. 94-329, Sec. 205, designated existing
provisions as subsec. (a) and substituted provisions authorizing
President to sell defense articles and defense services from Department
of Defense stocks to eligible countries and international organizations
who agree to pay specified values for such articles and services in
United States dollars, for provisions requiring that payment for defense
articles and defense services from stocks be made in advance, or if in
the best interest of the United States as determined by the President,
within a reasonable period not to exceed 120 days after delivery of the
articles or rendering of the services.
Subsecs. (b) to (h). Pub. L. 94-329, Secs. 205, 206, added subsecs.
(b) to (h).
Effective Date of 1996 Amendment
Section 4303(b)-(d) of Pub. L. 104-106 provided that:
``(b) Conditions.--Subsection (a) [amending this section] shall be
effective only if--
``(1) the President, in the budget of the President for fiscal
year 1997, proposes legislation that if enacted would be qualifying
offsetting legislation; and
``(2) there is enacted qualifying offsetting legislation.
``(c) Effective Date.--If the conditions in subsection (b) are met,
then the amendments made by subsection (a) shall take effect on the date
of the enactment of qualifying offsetting legislation [Sept. 23, 1996].
``(d) Definitions.--For purposes of this section:
``(1) The term `qualifying offsetting legislation' means
legislation that includes provisions that--
``(A) offset fully the estimated revenues lost as a result
of the amendments made by subsection (a) for each of the fiscal
years 1997 through 2005;
``(B) expressly state that they are enacted for the purpose
of the offset described in subparagraph (A); and
``(C) are included in full on the PayGo scorecard.
``(2) The term `PayGo scorecard' means the estimates that are
made by the Director of the Congressional Budget Office and the
Director of the Office of Management and Budget under section 252(d)
of the Balanced Budget and Emergency Deficit Control Act of 1985 [2
U.S.C. 902(d)].''
[Qualifying offsetting legislation was enacted by Pub. L. 104-201,
Sec. 3303, listed in a Materials in the National Defense Stockpile table
under section 98d of Title 50, War and National Defense.]
Effective Date of 1985 Amendment
Amendment by Pub. L. 99-83 effective Oct. 1, 1985, see section 1301
of Pub. L. 99-83, set out as a note under section 2151-1 of this title.
Regulations
Section 152(c) of Pub. L. 104-164 provided that: ``Under the
direction of the President, the Secretary of Defense shall promulgate
regulations to implement subsections (l) and (m) of section 21 of the
Arms Export Control Act [22 U.S.C. 2761(l), (m)], as added by this
section.''
Transfer of Functions
For transfer of authorities, functions, personnel, and assets of the
Coast Guard, including the authorities and functions of the Secretary of
Transportation relating thereto, to the Department of Homeland Security,
and for treatment of related references, see sections 468(b), 551(d),
552(d), and 557 of Title 6, Domestic Security, and the Department of
Homeland Security Reorganization Plan of November 25, 2002, as modified,
set out as a note under section 542 of Title 6.
Delegation of Functions
Functions of President under this section, except the last sentence
of subsec. (d) and subsec. (i), delegated to Secretary of Defense by
section 1(c) of Ex. Ord. No. 11958, Jan. 18, 1977, 42 F.R. 4311, as
amended, set out as a note under section 2751 of this title.
Section Referred to in Other Sections
This section is referred to in sections 2291c, 2311, 2321i, 2751,
2765, 2767, 2775, 2776, 2777, 2791, 2792, 2794, 2795 of this title;
title 10 sections 114, 2350c, 2562.
