b. The Arms Export Control Act CONTENTS Chapter 1-Foreign and National Security Policy Objectives and Restraints Page 401 401 Section 2-Coordination With Foreign Policy 403 Section 3-Eligibility 404 Section 4-Purposes for Which Military Sales by the United States Are 412 Section 5-Prohibition Against Discrimination 413 Section 6-Foreign Intimidation and Harassment of Individuals in the Section 25-Annual Estimate and Justification for Sales Program 431 434 Section 27-Authority of President to Enter into Cooperative Projects with Friendly Foreign Countries 434 Chapter 2A-Foreign Military Construction Sales 438 438 Chapter 2B-Sales to United States Companies for Incorporation Into End 438 Section 30-General Authority 438 Chapter 2C-Exchange of Training and Related Support 439 439 Chapter 3-Military Export Controls 440 Section 31-Authorization and Aggregate Ceiling on Foreign Military 440 Section 33-Restraint in Arms Sales to Sub-Saharan Africa 443 444 Section 35-Foreign Military Sales to Less Developed Countries 444 Section 36-Reports on Commercial and Governmental Military Exports; 444 Section 37-Fiscal Provisions Relating to Foreign Military Sales Credits 458 459 Section 39-Fees of Military Sales Agents and Other Payments 470 471 Section 40-Transactions With Countries Supporting Acts of International Terrorism 472 Section 40A-Transactions With Countries Not Fully Cooperating With 480 Chapter 3A-End-Use Monitoring of Defense Articles and Defense Services Section 40A End-Use Monitoring of Defense Articles and Defense Services 480 480 Chapter 4-General, Administrative, and Miscellaneous Provisions Section 51-Special Defense Acquisition Fund 487 Section 52-Use and Transfer of Items Procured by the Fund 489 Chapter 6-Leases of Defense Articles and Loan Authority for Cooperative Research and Development Purposes 489 Section 61-Leasing Authority 489 Section 62-Reports to the Congress 491 Section 63-Legislative Review 492 Section 64-Application of Other Provisions of Law 493 Section 65-Loan of Materials, Supplies, and Equipment for Research and Development Purposes 493 Chapter 7-Control of Missiles and Missile Equipment Technology 494 Section 71-Licensing 494 Section 72-Denial of the Transfer of Missile Equipment or Technology by United States Persons 495 Section 73-Transfers of Missile Equipment or Technology by Foreign Chapter 9-Transfer of Certain CFE Treaty-Limited Equipment to NATO Section 102-Nuclear Reprocessing Transfers, Illegal Exports for Nuclear 511 Section 103-Definition of Nuclear Explosive Device 517 b. The Arms Export Control Act Public Law 90-629 (H.R. 15681], 82 Stat. 1320, approved October 22, 1968, as amended by Public Law 91-672 [H.R. 15628], 84 Stat. 2053, approved January 12, 1971; Public Law 92-226 [Foreign Assistance Act of 1971, S. 2819], 86 Stat. 20, 32, approved February 7, 1972; Public Law 93-189 [Foreign Assistance Act of 1973, S. 1443], 87 Stat. 714, approved December 17, 1973; Public Law 93-559 [Foreign Assistance Act of 1974, S. 3394], 88 Stat. 1795, 1813, approved December 31, 1974; Public Law 94-329 [International Security Assistance and Arms Export Control Act of 1976, H.R. 13680], 90 Stat. 729, approved June 30, 1976; Public Law 95-92 [International Security Assistance Act of 1977, H.R. 6884], 91 Stat. 614, approved August 4, 1977; Public Law 95-105 [Foreign Relations Authorization Act, Fiscal Year 1978; H.R. 6689], 91 Stat. 844 at 846, approved August 17, 1977; Public Law 95-384 [International Security Assistance Act of 1978, S. 3075], 92 Stat. 730, approved September 26, 1978; Public Law 96–70 [Panama Canal Act of 1979; H.R. 111], 93 Stat. 452 at 499, approved September 27, 1979; Public Law 96-72 [Export Administration Act of 1979, S. 737], 93 Stat. 503 at 535, approved September 29, 1979; Public Law 96-92 [International Security Assistance Act of 1979; H.R. 3173], 93 Stat. 701, approved October 29, 1979; Public Law 96-533 [International Security and Development Cooperation Act of 1980; H.R. 6942], 94 Stat. 3131, approved December 16, 1980; Public Law 97-113 [International Security and Development Cooperation Act of 1981; S. 1196], 95 Stat. 1519, approved December 29, 1981; Public Law 97–392 [H.R. 6758), 96 Stat. 1962, approved December 29, 1982; Public Law 98-151 [Further Continuing Appropriations, 1984; H.J. Res. 413], 97 Stat. 964, approved November 14, 1983; Public Law 98-473 [Continuing Appropriations Act, 1985; H.J. Res. 648], 98 Stat. 1837, approved October 12, 1984; Public Law 99-64 [Export Administration Amendments Act of 1985, S. 883], 99 Stat. 156, approved July 12, 1985; Public Law 9983 [International Security and Development Cooperation Act of 1985, S. 960], 99 Stat. 190, approved August 8, 1985; Public Law 99-139 [Act to amend Sec. 51(b) of the Arms Export Control Act, S. 1726], 99 Stat. 562, approved October 30, 1985; Public Law 99-247 [Act to amend the Arms Export Control Act to require that congressional vetoes of certain arms export proposals be enacted into law, S. 1831], 100 Stat. 9, approved February 12, 1986; Public Law 99-399 [Omnibus Diplomatic Security and Antiterrorism Act of 1986; H.R. 4151], 100 Stat. 853, approved August 27, 1986; Public Law 99-433 [Department of Defense Reorganization Act of 1986, H.R. 3622], 100 Stat. 992, approved October 1, 1986; Public Law 99591 [Continuing Appropriations Act, 1987; H.J. Res. 738], 100 Stat. 3341, approved October 30, 1986; Public Law 99-661 [National Defense Authorization Act for Fiscal Year 1987, S. 2638], 100 Stat. 3816, approved November 14, 1986; Public Law 100-71 [Supplemental Appropriations Act, 1987; H.R. 1827], 101 Stat. 391, approved July 11, 1987; Public Law 100-202 [Continuing Appropriations Act, 1988; H.J. Res. 395], 101 Stat. 1329, approved December 22, 1987; Public Law 100-204 [Foreign Relations Authorization Act, 1988 and 1989; H.R. 1777], 101 Stat. 1331, approved December 22, 1987; Public Law 100-456 [National Defense Authorization Act, 1989; H.R. 4481], 102 Stat. 1918, approved September 29, 1988; Public Law 100-461 [Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1989; H.R. 4637], 102 Stat. 2268, approved October 1, 1988; Public Law 101-165 [Department of Defense Appropriations Act, 1990; H.R. 3072], 103 Stat. 1112, approved November 21, 1989; Public Law 101-167 [Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1990; H.R. 3743], 103 Stat. 1195, approved November 21, 1989; Public Law 101-222 [Anti-Terrorism and Arms Export Amendments Act of 1989, H.R. 91], 103 Stat. 1892, approved December 12, 1989; Public Law 101-231 [International Narcotics Control Act of 1989, H.R. 3611], 103 Stat. 1954, approved December 13, 1989; Public Law 101-510 [National Defense Authorization for Fiscal Year 1991, H.R. 4739], 104 Stat. 1485, approved November 5, 1990; Public Law 101-513 [Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1991; H.R. 5114], 104 Stat. 1979, approved November 5, 1990; Public Law 102–25 [Persian Gulf Conflict Supplemental Authorization and Personnel Benefits Act of 1991; S. 725], 105 Stat. 75, approved April 6, 1991; Public Law 102-138 [Foreign Relations Authorization Act, Fiscal Years 1992 and 1993; H.R. 1415], 105 Stat. 647, approved October 28, 1991; Public Law 102-182 [title III-Chemical and Biological Weapons Control and Warfare Elimination Act of 1991; H.R. 1724], 105 Stat. 1233 at 1245; approved December 4, 1991; sec. 545 of H.R. 2621 as passed by the House on June 19, 1991, enacted by reference in Public Law 102-145 [H.J. Res. 360; 105 Stat. 968, approved October 28, 1991; Public Law 102-228 [Conventional Forces in Europe Treaty Implementation Act of 1991; H.R. 3807], 105 Stat. 1691, approved December 12, 1991; Public Law 102-391 [Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1993; H.R. 5368], 106 Stat. 1633, approved October 6, 1992; Public Law 102-429 [Export Enhancement Act of 1992; H.R. 5739], 106 Stat. 2186, approved October 21, 1992; Public Law 102-484 [National Defense Authorization Act for Fiscal Year 1993, H.R. 5006], 106 Stat. 2315, approved October 23, 1992; Public Law 102-583 [International Narcotics Control Act of 1992; H.R. 6187], 106 Stat. 4914, approved November 2, 1992; Public Law 103-87 [Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1994; H.R. 2295], 107 Stat. 931, approved September 30, 1993; Public Law 103-199 [FRIENDSHIP Act; H.R. 3000], 107 Stat. 2317, approved December 17, 1993; Public Law 103-236 [Foreign Relations Authorization Act, Fiscal Years 1994 and 1995; H.R. 2333], 108 Stat. 382, approved April 30, 1994; Public Law 103-306 [Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1995; H.R. 4426], 108 Stat. 1608, approved August 23, 1994; Public Law 103-437 [United States Code Technical Amendments; H.R. 4777], 108 Stat. 4581, approved November 2, 1994; Public Law 104-99 [Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1996; H.R. 1868], enacted by reference in section 301 of H.R. 2880, 110 Stat. 26, approved January 26, 1996, enacted again as Public Law 104-107 [H.R. 1868], 110 Stat. 755, approved February 12, 1996; Public Law 104-106 [National Defense Authorization Act for Fiscal Year 1996; S. 1124], 110 Stat. 186, approved February 10, 1996; Public Law 104-132 [Antiterrorism and Effective Death Penalty Act of 1996; S. 735], 110 Stat. 1214, approved April 24, 1996; Public Law 104-164 [H.R. 3121], 110 Stat. 1421, approved July 21, 1996; Public Law 104-201 [National Defense Authorization Act for Fiscal Year 1997, H.R. 3230], 110 Stat. 2422, approved September 23, 1996; Public Law 104208 [Omnibus Consolidated Appropriations Act, 1997; H.R. 3610], 110 Stat. 3009, approved September 30, 1996; Public Law 105-118 [Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1998; H.R. 2159], 111 Stat. 2386, approved November 26, 1997; Public Law 105-194 [Agriculture Export Relief Act of 1998; S. 2282], 112 Stat. 627, approved July 14, 1998; Public Law 105-277 [Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1999; and Foreign Affairs Agencies Consolidation Act of 1998; H.R. 4328], 112 Stat. 2681, approved October 21, 1998; Public Law 106-113 [Arms Control, Nonproliferation, and Security Assistance Act of 1999; division B of H.R. 3427, enacted by reference in sec. 1000(a)(7) of Consolidated Appropriations Act for Fiscal Year 2000; H.R. 3194], 113 Stat. 1501, approved November 29, 1999; Public Law 106-113 [Arms Control and Nonproliferation Act of 1999; title XI of H.R. 3427, enacted by reference in sec. 1000(a)(7) of Consolidated Appropriations Act for Fiscal Year 2000; H.R. 3194], 113 Stat. 1501, approved November 29, 1999; Public Law 106-113 [Security Assistance Act of 1999; title XII of H.R. 3427, enacted by reference in sec. 1000(a)(7) of Consolidated Appropriations Act for Fiscal Year 2000; H.R. 3194], 113 Stat. 1501, approved November 29, 1999; Public Law 106-113 [Defense Offsets Disclosure Act of 1999; subtitle D, title XII of H.R. 3427, enacted by reference in sec. 1000(a)(7) of Consolidated Appropriations Act for Fiscal Year 2000; H.R. 3194], 113 Stat. 1501, approved November 29, 1999; Public Law 106-280 [Security Assistance Act of 2000; H.R. 4919], 114 Stat. 845, approved October 6, 2000; Public Law 107-228 [Foreign Relations Authorization Act, Fiscal Year 2003; H.R. 1646], 116 Stat. 1350, approved September 30, 2002; Public Law 108-458 [Intelligence Reform and Terrorism Prevention Act of 2004; S. 2845], 118 Stat. 3638, approved December 17, 2004 AN ACT To consolidate and revise foreign assistance legislation relating to Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Arms Export Control Act".1 Chapter 1-FOREIGN AND NATIONAL SECURITY POLICY OBJECTIVES AND RESTRAINTS Section 1.2 The Need for International Defense Cooperation and Military Export Controls.-As declared by the Congress in the Arms Control and Disarmament Act, 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. 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 relationships 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 complexity of defense equipment, it is increasingly difficult and uneconomic for any country, particularly a developing country, to fill all of its legitimate defense requirements from its own design and production base. The need for international defense cooperation among the United States and those friendly countries to which it is allied by 1 Sec. 201 of the International Security Assistance and Arms Export Control Act of 1976 (Public Law 94-329; 90 Stat. 734) struck out "Foreign Military Sales Act" and inserted in lieu thereof "Arms Export Control Act". Sec. 201 further stated that "any reference to the Foreign Military Sales Act shall be deemed to be a reference to the Arms Export Control Act.". 222 U.S.C. 2751. See also sec. 1225 of the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005 (Public Law 108-375; 118 Stat. 2091), relating to bilateral exchanges and trade in defense articles and defense services between the United States and the United Kingdom and Australia; and sec. 4026 of the Intelligence Reform and Terrorism Prevention Act of 2004 (Public Law 108-458; 118 Stat. 3724), stating U.S. policy on the proliferation of ManPortable Air Defense Systems (MANPADS). Regarding the latter, see also sec. 6902 in the same Act, stating congressional findings on MANPADS and other destructive weapons. See also sec. 1605 of the National Defense Authorization Act for Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1845), establishing the Joint Committee for Review of Counterproliferation Programs of the United States; sec. 1503 of the National Defense Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2916), relating to a report of the findings of the Counterproliferation Program Review Committee; sec. 154 of Public Law 104-164 (110 Stat. 1440), relating to Panama's eligibility under this Act, in Legislation on Foreign Relations Through 2004, vol. I-B. See also sec. 564 of the Foreign Relations Authorization Act, Fiscal Years 1994 and 1995 (Public Law 103-236; 108 Stat. 484) relating to prohibiting sales and leases to those participating in or supporting the Arab boycott of Israel, in Legislation on Foreign Relations Through 2004, vol. 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