§ 2770. — General authority.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 22USC2770]
TITLE 22--FOREIGN RELATIONS AND INTERCOURSE
CHAPTER 39--ARMS EXPORT CONTROL
SUBCHAPTER II-B--SALES TO UNITED STATES COMPANIES FOR INCORPORATION INTO
END ITEMS
Sec. 2770. General authority
(a) Sale of defense articles and services by President to United States
companies; restriction on performance of services; reimbursement
credited to selling agency
Subject to the conditions specified in subsection (b) of this
section, the President may, on a negotiated contract basis, under cash
terms (1) sell defense articles at not less than their estimated
replacement cost (or actual cost in the case of services), or (2)
procure or manufacture and sell defense articles at not less than their
contract or manufacturing cost to the United States Government, to any
United States company for incorporation into end items (and for
concurrent or follow-on support) to be sold by such a company either (i)
on a direct commercial basis to a friendly foreign country or
international organization pursuant to an export license or approval
under section 2778 of this title or (ii) in the case of ammunition parts
subject to subsection (b) of this section, using commercial practices
which restrict actual delivery directly to a friendly foreign country or
international organization pursuant to approval under section 2778 of
this title. The President may also sell defense services in support of
such sales of defense articles, subject to the requirements of this
chapter: Provided, however, That such services may be performed only in
the United States. The amount of reimbursement received from such sales
shall be credited to the current applicable appropriation, fund, or
account of the selling agency of the United States Government.
(b) Conditions of sale
Defense articles and defense services may be sold, procured and
sold, or manufactured and sold, pursuant to subsection (a) of this
section only if (1) the end item to which the articles apply is to be
procured for the armed forces of a friendly country or international
organization, (2) the articles would be supplied to the prime contractor
as government-furnished equipment or materials if the end item were
being procured for the use of the United States Armed Forces, and (3)
the articles and services are available only from United States
Government sources or are not available to the prime contractor directly
from United States commercial sources at such times as may be required
to meet the prime contractor's delivery schedule.
(c) ``Defense articles'' and ``defense services'' defined
For the purpose of this section, the terms ``defense articles'' and
``defense services'' mean defense articles and defense services as
defined in section 2794(3) and (4) of this title.
(Pub. L. 90-629, ch. 2B, Sec. 30, as added Pub. L. 97-392, Sec. 1, Dec.
29, 1982, 96 Stat. 1962; amended Pub. L. 101-165, title IX, Sec. 9097,
Nov. 21, 1989, 103 Stat. 1150.)
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''.
Delegation of Functions
Functions of President under this section delegated to Secretary of
Defense by section 1(d) of Ex. Ord. No. 11958, Jan. 18, 1977, 42 F.R.
4311, as amended, set out as a note under section 2751 of this title.
Section Referred to in Other Sections
This section is referred to in section 2791 of this title.
