**(a) Authorization** The President is authorized to transfer excess defense articles under this section to countries for which receipt of such articles was justified pursuant to the annual congressional presentation documents for military assistance programs, or for programs under part VIII of subchapter I of this chapter, submitted under [section 2394 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section2394&num=0&edition=prelim), or for which receipt of such articles was separately justified to the Congress, for the fiscal year in which the transfer is authorized.
**(b) Limitations on transfers**
(1) The President may transfer excess defense articles under this section only if—
(A) such articles are drawn from existing stocks of the Department of Defense;
(B) funds available to the Department of Defense for the procurement of defense equipment are not expended in connection with the transfer;
(C) the transfer of such articles will not have an adverse impact on the military readiness of the United States;
(D) with respect to a proposed transfer of such articles on a grant basis, such a transfer is preferable to a transfer on a sales basis, after taking into account the potential proceeds from, and likelihood of, such sales, and the comparative foreign policy benefits that may accrue to the United States as the result of a transfer on either a grant or sales basis;
(E) the President determines that the transfer 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; and
(F) the
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Stable record: federal_law:legal_authorities:record_usc_50995fa095e9754645e89875 Source file: Laws/federal/codes/united-states-code/title-22/section-2321j-authority-to-transfer-excess-defense-articles--0cc0b288a0.md Pages: Not recorded – Not recorded Passage SHA-256: 37146a13560e3e55780b822088aa2c4cf6f589fe7cbe8cd1ad79893cf64fe93a Retained source evidence SHA-256: 6df9ac44af6368c651332c7d83bdb14042a3abe6e86647d1555c5ca40f07e0df
Source location: Title 22, Chapter 32, § 2321j; chapter-032-foreign-assistance.md
Stored source content
**(a) Authorization** The President is authorized to transfer excess defense articles under this section to countries for which receipt of such articles was justified pursuant to the annual congressional presentation documents for military assistance programs, or for programs under part VIII of subchapter I of this chapter, submitted under [section 2394 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section2394&num=0&edition=prelim), or for which receipt of such articles was separately justified to the Congress, for the fiscal year in which the transfer is authorized.
**(b) Limitations on transfers**
(1) The President may transfer excess defense articles under this section only if—
(A) such articles are drawn from existing stocks of the Department of Defense;
(B) funds available to the Department of Defense for the procurement of defense equipment are not expended in connection with the transfer;
(C) the transfer of such articles will not have an adverse impact on the military readiness of the United States;
(D) with respect to a proposed transfer of such articles on a grant basis, such a transfer is preferable to a transfer on a sales basis, after taking into account the potential proceeds from, and likelihood of, such sales, and the comparative foreign policy benefits that may accrue to the United States as the result of a transfer on either a grant or sales basis;
(E) the President determines that the transfer 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; and
(F) the transfer of such articles is consistent with the policy framework for the Eastern Mediterranean established under [section 2373 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section2373&num=0&edition=prelim).
(2) Accordingly, for the four-year period beginning on October 1, 1996, and thereafter for the four-period 11 So in original. Probably should be “four-year period”. beginning on October 1, 2000, the President shall ensure that excess defense articles offered to Greece and Turkey under this section will be made available consistent with the manner in which the President made available such excess defense articles during the four-year period that began on October 1, 1992, pursuant to section 573(e) of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1990.
**(c) Terms of transfers**
(1) **No cost to recipient country** — Excess defense articles may be transferred under this section without cost to the recipient country.
(2) **Priority** — Notwithstanding any other provision of law, the delivery of excess defense articles under this section to member countries of the North Atlantic Treaty Organization (NATO) on the southern and southeastern flank of NATO, to major non-NATO allies on such southern and southeastern flank, to Taiwan, and to the Philippines shall be given priority to the maximum extent feasible over the delivery of such excess defense articles to other countries.
**(d) Waiver of requirement for reimbursement of Department of Defense expenses** [Section 2392(d) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section2392/d&num=0&edition=prelim) shall not apply with respect to transfers of excess defense articles (including transportation and related costs) under this section.
**(e) Transportation and related costs**
(1) **In general** — Except as provided in paragraph (2), funds available to the Department of Defense may not be expended for crating, packing, handling, and transportation of excess defense articles transferred under the authority of this section.
(2) **Exception** — The President may provide for the transportation of excess defense articles without charge to a country for the costs of such transportation if—
(A) it is determined that it is in the national interest of the United States to do so;
(B) the recipient is a developing country receiving less than $10,000,000 of assistance under part V of this subchapter (relating to international military education and training) or section 23 of the Arms Export Control Act ([22 U.S.C. 2763](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section2763&num=0&edition=prelim); relating to the Foreign Military Financing program) in the fiscal year in which the transportation is provided;
(C) the total weight of the transfer does not exceed 50,000 pounds; and
(D) such transportation is accomplished on a space available basis.
**(f) Advance notification to Congress for transfer of certain excess defense articles**
(1) **In general** — The President may not transfer excess defense articles that are significant military equipment (as defined in section 47(9) of the Arms Export Control Act [[22 U.S.C. 2794(9)](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section2794/9&num=0&edition=prelim)]) or excess defense articles valued (in terms of original acquisition cost) at $7,000,000 or more, under this section or under the Arms Export Control Act ([22 U.S.C. 2751](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section2751&num=0&edition=prelim) et seq.) until 30 days after the date on which the President has provided notice of the proposed transfer to the congressional committees specified in [section 2394–1(a) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section2394–1/a&num=0&edition=prelim) in accordance with procedures applicable to reprogramming notifications under that section.
(2) **Contents** — Such notification shall include—
(A) a statement outlining the purposes for which the article is being provided to the country, including whether such article has been previously provided to such country;
(B) an assessment of the impact of the transfer on the military readiness of the United States;
(C) an assessment of the impact of the transfer on the national technology and industrial base and, particularly, the impact on opportunities of entities in the national technology and industrial base to sell new or used equipment to the countries to which such articles are to be transferred; and
(D) a statement describing the current value of such article and the value of such article at acquisition.
**(g) Aggregate annual limitation**
(1) **In general** — The aggregate value of excess defense articles transferred to countries under this section in any fiscal year may not exceed $500,000,000.
(2) **Effective date** — The limitation contained in paragraph (1) shall apply only with respect to fiscal years beginning after fiscal year 1996.
**(h) Congressional presentation documents** Documents described in subsection (a) justifying the transfer of excess defense articles shall include an explanation of the general purposes of providing excess defense articles as well as a table which provides an aggregate annual total of transfers of excess defense articles in the preceding year by country in terms of offers and actual deliveries and in terms of acquisition cost and current value. Such table shall indicate whether such excess defense articles were provided on a grant or sale basis.
**(i) Excess Coast Guard property** For purposes of this section, the term “excess defense articles” shall be deemed to include excess property of the Coast Guard, and the term “Department of Defense” shall be deemed, with respect to such excess property, to include the Coast Guard.
Cross-references
Connections may be documented source relationships, shared citations or nearby passages. Each explains its basis; a connection alone does not establish applicability to your situation.
Federal law — U.S. Code and appendices · legal_authorities
§ 2321j. Authority to transfer excess defense arti-
cles
(a) Authorization
The President is authorized to transfer excess
defense articles under this section to countries
for which receipt of such articles was justified
pursuant to the annual congressional presen-
tation documents for military assistance pro-
grams, or for programs under part VIII of sub-
chapter I of this chapter, submitted under sec-
tion 2394 of this title, or for which receipt of
such articles was separately justified to the
Congress, for the fiscal year in which the trans-
fer is authorized.
(b) Limitations on transfers
(1) The President may transfer excess defense
articles under this section only if—
(A) such articles are drawn from existing
stocks of the Department of Defense;
(B) funds available to the Department of De-
fense for the procurement of defense equip-
ment are not expended in connection with the
transfer;
(C) the transfer of such articles will not have
an adverse impact on the military readiness of
the United States;
(D) with respect to a proposed transfer of
such articles on a grant basis, such a transfer
is preferable to a transfer on a sales basis,
after taking into account the potential pro-
ceeds from, and likelihood of, such sales, and
the comparative foreign policy benefits that
may accrue to the United States as the result
of a transfer on either a grant or sales basis;
(E) the President determines that the trans-
fer of such articles will not have an adverse
impact on the national technology and indus-
trial 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; and
(F) the transfer of such article
As declared by the Congress in the Arms Control and Disarmament Act [[22 U.S.C. 2551](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section2551&num=0&edition=prelim) et seq.], an ultimate goal of the United States continues to be a world which is free from the scourge of war and the dangers and burdens of armaments; in which the use of force has been subordinated to the rule of law; and in which international adjustments to a changing world are achieved peacefully. In furtherance of that goal, it remains the policy of the United States to encourage regional arms control and disarmament agreements and to discourage arms races.
Stored review status: release_metadata_unconfirmed. The source passage cites 22 U.S.C. § 2751. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
§ 2751. Need for international defense coopera-
tion and military export controls; Presi-
dential waiver; report to Congress; arms
sales policy
As declared by the Congress in the Arms Con-
trol and Disarmament Act [22 U.S.C. 2551 et
seq.], an ultimate goal of the United States con-
tinues to be a world which is free from the
scourge of war and the dangers and burdens of
armaments; in which the use of force has been
subordinated to the rule of law; and in which
international adjustments to a changing world
are achieved peacefully. In furtherance of that
goal, it remains the policy of the United States
to encourage regional arms control and disar-
mament agreements and to discourage arms
races.
The Congress recognizes, however, that the
United States and other free and independent
countries continue to have valid requirements
for effective and mutually beneficial defense re-
lationships in order to maintain and foster the
environment of international peace and security
essential to social, economic, and political
progress. Because of the growing cost and com-
plexity of defense equipment, it is increasingly
difficult and uneconomic for any country, par-
ticularly a developing country, to fill all of its
legitimate defense requirements from its own
design and production base. The need for inter-
national defense cooperation among the United
States and those friendly countries to which it
is allied by mutual defense treaties is especially
important, since the effectiveness of their armed
Page 1186
TITLE 22—FOREIGN RELATIONS AND INTERCOURSE
§ 2751
forces to act in concert to deter or defeat ag-
gression is directly related to the operational
compatibility of their defense equipment.
Accordingly, it remains the policy of the
United States to faci
Stored review status: historical_2024_not_currentness_verified. The source passage cites 22 U.S.C. § 2751. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Financing procurement of defense articles and services, and design and construction services** The President is authorized to finance the procurement of defense articles, defense services, and design and construction services by friendly foreign countries and international organizations, on such terms and conditions as he may determine consistent with the requirements of this section. Notwithstanding any other provision of law, and subject to the regular notification requirements of the Committees on Appropriations, the authority of this section may be used to provide financing to Israel and Egypt for the procurement by leasing (including leasing with an option to purchase) of defense articles from United States commercial suppliers, not including Major Defense Equipment (other than helicopters and other types of aircraft having possible civilian application), if the President determines that there are compelling foreign policy or national security reasons for those defense articles being provided by commercial lease rather than by government-to-government sale under this chapter.
**(b) Repayment period** The President shall require repayment in United States dollars within a period not to exceed twelve years after the loan agreement with the country or international organization is signed on behalf of the United States Government, unless a longer period is specifically authorized by statute for that country or international organization.
**(c) Interest rate; definitions**
(1) The President shall charge interest under this section at such rate as he may determine, except that such rate may not be less than 5 percent per year.
(2) For purposes of financing provided under this section—
(A) the term “concessional rate of interest” means any rate of interest wh
Stored review status: release_metadata_unconfirmed. The source passage cites 22 U.S.C. § 2763. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
§ 2763. Credit sales
(a) Financing procurement of defense articles
and services, and design and construction
services
The President is authorized to finance the pro-
curement of defense articles, defense services,
and design and construction services by friendly
foreign countries and international organiza-
tions, on such terms and conditions as he may
determine consistent with the requirements of
this section. Notwithstanding any other provi-
sion of law, and subject to the regular notifica-
tion requirements of the Committees on Appro-
priations, the authority of this section may be
used to provide financing to Israel and Egypt for
the procurement by leasing (including leasing
with an option to purchase) of defense articles
from United States commercial suppliers, not
including Major Defense Equipment (other than
helicopters and other types of aircraft having
possible civilian application), if the President
determines that there are compelling foreign
policy or national security reasons for those de-
fense articles being provided by commercial
lease rather than by government-to-government
sale under this chapter.
(b) Repayment period
The President shall require repayment in
United States dollars within a period not to ex-
ceed twelve years after the loan agreement with
the country or international organization is
signed on behalf of the United States Govern-
ment, unless a longer period is specifically au-
thorized by statute for that country or inter-
national organization.
(c) Interest rate; definitions
(1) The President shall charge interest under
this section at such rate as he may determine,
except that such rate may not be less than 5 per-
cent per year.
(2) For purposes of financing provided under
this section—
(A) the term ‘‘conc
Stored review status: historical_2024_not_currentness_verified. The source passage cites 22 U.S.C. § 2763. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
For purposes of this chapter, the term—
(1) “excess defense article” has the meaning provided by [section 2403(g) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section2403/g&num=0&edition=prelim);
(2) “value” means, in the case of an excess defense article, except as otherwise provided in [section 2761(a) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section2761/a&num=0&edition=prelim), not less than the greater of—
(A) the gross cost incurred by the United States Government in repairing, rehabilitating, or modifying such article, plus the scrap value; or
(B) the market value, if ascertainable;
(3) “defense article”, except as provided in paragraph (7) of this section, means, with respect to a sale or transfer by the United States under the authority of this chapter or any other foreign assistance or sales program of the United States—
(A) any weapon, weapons system, munition, aircraft, vessel, boat, or other implement of war,
(B) any property, installation, commodity, material, equipment, supply, or goods used for the purposes of making military sales,
(C) any machinery, facility, tool, material, supply, or other item necessary for the manufacture, production, processing, repair, servicing, storage, construction, transportation, operation, or use of any article listed in this paragraph, and
(D) any component or part of any article listed in this paragraph,
but does not include merchant vessels or (as defined by the Atomic Energy Act of 1954 [[42 U.S.C. 2011](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section2011&num=0&edition=prelim) et seq.]) source material (except uranium depleted in the isotope 235 which is incorporated in defense articles so
Stored review status: release_metadata_unconfirmed. The source passage cites 22 U.S.C. § 2794. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
§ 2794. Definitions
For purposes of this chapter, the term—
(1) ‘‘excess defense article’’ has the meaning
provided by section 2403(g) of this title;
(2) ‘‘value’’ means, in the case of an excess
defense article, except as otherwise provided
in section 2761(a) of this title, not less than
the greater of—
(A) the gross cost incurred by the United
States Government in repairing, rehabili-
tating, or modifying such article, plus the
scrap value; or
(B) the market value, if ascertainable;
(3) ‘‘defense article’’, except as provided in
paragraph (7) of this section, means, with re-
spect to a sale or transfer by the United States
under the authority of this chapter or any
other foreign assistance or sales program of
the United States—
(A) any weapon, weapons system, muni-
tion, aircraft, vessel, boat, or other imple-
ment 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 man-
ufacture,
production,
processing,
repair,
servicing, storage, construction, transpor-
tation, operation, or use of any article listed
in this paragraph, and
(D) any component or part of any article
listed in this paragraph,
but does not include merchant vessels or (as
defined by the Atomic Energy Act of 1954 [42
U.S.C. 2011 et seq.]) source material (except
uranium depleted in the isotope 235 which is
incorporated in defense articles solely to take
advantage of high density or pyrophoric char-
acteristics unrelated to radioactivity), byprod-
uct material, special nuclear material, produc-
tion facilities, utilization facilities, or atomic
weapons or articles involving Restricted Data;
(4) ‘‘defense ser
Stored review status: historical_2024_not_currentness_verified. The source passage cites 22 U.S.C. § 2794. This identifies an authority to review, not proof of applicability.