22 U.S.C. § 2777 — Fiscal provisions relating to foreign mili-

Page 1240 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 2776a Statutory Notes and Related Subsidiaries CHANGE OF NAME Reference to the Director of Central Intelligence or the Director of the Central Intelligence Agency in the Director’s capacity as the head of the intelligence com- munity deemed to be a reference to the Director of Na- tional Intelligence. Reference to the Director of Cen- tral Intelligence or the Director of the Central Intel- ligence Agency in the Director’s capacity as the head of the Central Intelligence Agency deemed to be a ref- erence to the Director of the Central Intelligence Agen- cy. See section 1081(a), (b) of Pub. L. 108–458, set out as a note under section 3001 of Title 50, War and National Defense. EFFECTIVE DATE OF 1998 AMENDMENT Amendment by Pub. L. 105–277 effective Apr. 1, 1999, see section 1201 of Pub. L. 105–277, set out as an Effec- tive Date note under section 6511 of this title. EFFECTIVE DATE OF 1996 AMENDMENTS Pub. L. 104–201, title X, § 1045(b), Sept. 23, 1996, 110 Stat. 2645, provided that: ‘‘Paragraph (12) of section 36(a) of the Arms Export Control Act [now 22 U.S.C. 2776(a)(11)], as added by subsection (a)(3), does not apply with respect to an agreement described in such para- graph entered into before the date of the enactment of this Act [Sept. 23, 1996].’’ Amendment by section 141(c), (d) of Pub. L. 104–164 applicable with respect to certifications required to be submitted on or after July 21, 1996, see section 141(f) of Pub. L. 104–164, set out as a note under section 2753 of this title. 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 sec- tion 2151–1 of this title. EFFECTIVE DATE OF 1976 AMENDMENT Pub. L. 94–329, title II, § 211(b), June 30, 1976, 90 Stat. 744, provided that: ‘‘The amendment made by sub- section (a) of this section [amending this section] shall apply with respect to letters of offer for which a certifi- cation is transmitted pursuant to section 36(b) of the Arms Export Control Act [subsec. (b) of this section] on or after the date of enactment of this Act [June 30, 1976] and to export licenses for which an application is filed under section 38 of such Act [section 2778 of this title] on or after such date.’’ Pub. L. 94–329, title VI, § 604(c), June 30, 1976, 90 Stat. 768, provided that: ‘‘The amendments made by this sec- tion [amending this section and enacting section 2779 of this title] shall take effect sixty days after the date of enactment of this Act [June 30, 1976].’’ EFFECTIVE DATE Section effective July 1, 1968, see section 41 of Pub. L. 90–629, set out as a note under section 2751 of this title. ASSESSMENT OF ISRAEL’S QUALITATIVE MILITARY EDGE OVER MILITARY THREATS Pub. L. 110–429, title II, § 201, Oct. 15, 2008, 122 Stat. 4843, as amended by Pub. L. 113–296, § 11(a), Dec. 19, 2014, 128 Stat. 4078, provided that: ‘‘(a) ASSESSMENT REQUIRED.—The President shall carry out an empirical and qualitative assessment on an ongoing basis of the extent to which Israel possesses a qualitative military edge over military threats to Israel. The assessment required under this subsection shall be sufficiently robust so as to facilitate com- parability of data over concurrent years. ‘‘(b) USE OF ASSESSMENT.—The President shall ensure that the assessment required under subsection (a) is used to inform the review by the United States of appli- cations to sell defense articles and defense services under the Arms Export Control Act (22 U.S.C. 2751 et seq.) to countries in the Middle East. ‘‘(c) REPORTS.— ‘‘(1) INITIAL REPORT.—Not later than June 30, 2009, the President shall transmit to the appropriate con- gressional committees a report on the initial assess- ment required under subsection (a). ‘‘(2) QUADRENNIAL REPORT.—Not later than four years after the date on which the President transmits the initial report under paragraph (1), and every four years thereafter, the President shall transmit to the appropriate congressional committees a report on the most recent assessment required under subsection (a). ‘‘(3) BIENNIAL UPDATES.—Two years after the date on which each quadrennial report is transmitted to Congress, the President shall— ‘‘(A) reevaluate the assessment required under subsection (a); and ‘‘(B) inform and consult with the appropriate con- gressional committees on the results of the reevalu- ation conducted pursuant to subparagraph (A). ‘‘(d) CERTIFICATION.—[Amended this section.] ‘‘(e) DEFINITIONS.—In this section: ‘‘(1) APPROPRIATE CONGRESSIONAL COMMITTEES.—The term ‘appropriate congressional committees’ means the Committee on Foreign Affairs of the House of Representatives and the Committee on Foreign Rela- tions of the Senate. ‘‘(2) QUALITATIVE MILITARY EDGE.—The term ‘quali- tative military edge’ has the meaning given the term in section 36(h) of the Arms Export Control Act, as added by subsection (d) of this section [22 U.S.C. 2776(h)].’’ [Memorandum of President of the United States, June 8, 2009, 74 F.R. 28863, provided that the functions of the President in section 201(a) to (c) of Pub. L. 110–429, set out above, are delegated to the Secretary of State, in coordination with the Secretary of Defense.] NATIONAL DISCLOSURE POLICY FOR SENSITIVE WEAPONS TECHNOLOGY; REPORT TO CONGRESS Pub. L. 96–92, § 20(a), Oct. 29, 1979, 93 Stat. 710, di- rected President to undertake a thorough review of interagency procedures and disclosure criteria used by United States in determining whether sensitive weap- ons technology will be transferred to other countries, and not later than Feb. 15, 1980 to transmit a report to Congress setting forth the results of such review, to- gether with such recommendations as are necessary to improve the current disclosure system, prior to repeal by Pub. L. 97–113, title VII, § 734(a)(11), Dec. 29, 1981, 95 Stat. 1560. Executive Documents DELEGATION OF FUNCTIONS For delegation of certain functions of the President under this section, with certain conditions, see section 1(j)–(m) of Ex. Ord. No. 13637, Mar. 8, 2013, 78 F.R. 16130, set out as a note under section 2751 of this title. Func- tions 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 pro- vision, by section 4 of Ex. Ord. No. 13637. § 2776a. Repealed. Pub. L. 112–81, div. A, title X, § 1062(d)(4), Dec. 31, 2011, 125 Stat. 1585 Section, Pub. L. 109–364, div. A, title XII, § 1231, Oct. 17, 2006, 120 Stat. 2430; Pub. L. 110–181, div. A, title X, § 1063(c)(11), Jan. 28, 2008, 122 Stat. 323, required annual report on foreign sales of significant military equip- ment manufactured in the United States. § 2777. Fiscal provisions relating to foreign mili- tary sales credits (a) Permissible uses of cash payments under sec- tions 2761, 2762, 2763, and 2769 Cash payments received under sections 2761, 2762, and 2769 of this title and advances received Page 1241 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 2778 under section 2763 of this title shall be available solely for payments to suppliers (including the military departments) and refunds to purchasers and shall not be available for financing credits and guaranties. (b) Transfer of funds to miscellaneous receipts of Treasury Amounts received from foreign governments and international organizations as repayments for credits extended pursuant to section 2763 of this title, amounts received from the disposition of instruments evidencing indebtedness under section 2764(b) of this title (excluding such por- tion of the sales proceeds as may be required at the time of disposition to be obligated as a re- serve for payment of claims under guaranties issued pursuant to section 2764(b) of this title, which sums are made available for such obliga- tions), and other collections (including fees and interest) shall be transferred to the miscella- neous receipts of the Treasury. (c) Credit of funds to reserve under section 2764(c) Notwithstanding the provisions of subsection (b), to the extent that any of the funds consti- tuting the reserve under section 2764(c) of this title are paid out for a claim arising out of a loan guaranteed under section 2764 of this title, amounts received from a foreign government or international organization after the date of such payment, with respect to such claim, shall be credited to such reserve, shall be merged with the funds in such reserve, and shall be available for any purpose for which funds in such reserve are available. (Pub. L. 90–629, ch. 3, § 37, Oct. 22, 1968, 82 Stat. 1326; Pub. L. 93–189, § 25(11), Dec. 17, 1973, 87 Stat. 731; Pub. L. 96–533, title I, §§ 104(b), 105(e)(1), Dec. 16, 1980, 94 Stat. 3133, 3135.) Editorial Notes AMENDMENTS 1980—Subsec. (a). Pub. L. 96–533, § 105(e)(1), inserted reference to section 2769 of this title. Subsec. (c). Pub. L. 96–533, § 104(b), added subsec. (c). 1973—Subsec. (b). Pub. L. 93–189 inserted provisions relating to indebtedness under section 2764(b) of this title and exclusions of portions of the sales proceeds re- quired at the time of disposition as a reserve for pay- ment of claims under guaranties issued under section 2764(b) of this title. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective July 1, 1968, see section 41 of Pub. L. 90–629, set out as a note under section 2751 of this title. § 2778. Control of arms exports and imports (a) Presidential control of exports and imports of defense articles and services, guidance of policy, etc.; designation of United States Mu- nitions List; issuance of export licenses; ne- gotiations information (1) In furtherance of world peace and the secu- rity and foreign policy of the United States, the President is authorized to control the import and the export of defense articles and defense services and to provide foreign policy guidance to persons of the United States involved in the export and import of such articles and services. The President is authorized to designate those items which shall be considered as defense arti- cles and defense services for the purposes of this section and to promulgate regulations for the import and export of such articles and services. The items so designated shall constitute the United States Munitions List. (2) Decisions on issuing export licenses under this section shall take into account whether the export of an article would contribute to an arms race, aid in the development of weapons of mass destruction, support international terrorism, in- crease the possibility of outbreak or escalation of conflict, or prejudice the development of bi- lateral or multilateral arms control or non- proliferation agreements or other arrangements. (3) In exercising the authorities conferred by this section, the President may require that any defense article or defense service be sold under this chapter as a condition of its eligibility for export, and may require that persons engaged in the negotiation for the export of defense articles and services keep the President fully and cur- rently informed of the progress and future pros- pects of such negotiations. (b) Registration and licensing requirements for manufacturers, exporters, or importers of designated defense articles and defense serv- ices (1)(A)(i) As prescribed in regulations issued under this section, every person (other than an officer or employee of the United States Govern- ment acting in an official capacity) who engages in the business of manufacturing, exporting, or importing any defense articles or defense serv- ices designated by the President under sub- section (a)(1) shall register with the United States Government agency charged with the ad- ministration of this section, and shall pay a reg- istration fee which shall be prescribed by such regulations. Such regulations shall prohibit the return to the United States for sale in the United States (other than for the Armed Forces of the United States and its allies or for any State or local law enforcement agency) of any military firearms or ammunition of United States manufacture furnished to foreign govern- ments by the United States under this chapter or any other foreign assistance or sales program of the United States, whether or not enhanced in value or improved in condition in a foreign country. This prohibition shall not extend to similar firearms that have been so substantially transformed as to become, in effect, articles of foreign manufacture. (ii)(I) As prescribed in regulations issued under this section, every person (other than an officer or employee of the United States Govern- ment acting in official capacity) who engages in the business of brokering activities with respect to the manufacture, export, import, or transfer of any defense article or defense service des- ignated by the President under subsection (a)(1), or in the business of brokering activities with respect to the manufacture, export, import, or transfer of any foreign defense article or defense service (as defined in subclause (IV)), shall reg- ister with the United States Government agency