475 
(i) the term ‘‘significant component or 
part’’ means a component or part that is 
essential to a military function; and 
(ii) the term ‘‘significantly modified’’ 
means a modification that constitutes an 
alteration of 25 percent or greater of the 
component or part from a non-military 
version. 
(5) DEFENSE SERVICE.— 
(A) IN
GENERAL.—The term ‘‘defense 
service’’— 
(i) includes any service, test, inspec-
tion, repair, training, publication, technical 
or other assistance, or defense information 
used for the purposes of making military 
sales; but 
(ii) does not include design and con-
struction services under section 4311. 
(B) ADDITIONAL TERM.—In subparagraph 
(A)(i), the term ‘‘defense information’’ includes 
any document, writing, sketch, photograph, 
plan, model, specification, design, prototype, or 
other recorded or oral information relating to 
any defense article or defense service, but does 
not include Restricted Data as defined by the 
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476 
Atomic Energy Act of 1954 and data removed 
from the Restricted Data category under sec-
tion 142d of that Act. 
(6) DESIGN AND CONSTRUCTION SERVICES.— 
The term ‘‘design and construction services’’ means, 
with respect to sales under section 4251, the design 
and construction of real property facilities, including 
necessary construction equipment and materials, en-
gineering services, construction contract manage-
ment services relating thereto, and technical advi-
sory assistance in the operation and maintenance of 
real property facilities provided or performed by the 
Department of Defense or by a contractor pursuant 
to a contract with such department or agency. 
(7) END ITEM.—The term ‘‘end item’’ means 
an assembled article that is ready for its intended 
use and for which only ammunition, fuel, or another 
energy source is required to place the item in its op-
erating state. 
(8) EXCESS
DEFENSE
ARTICLE.—The term 
‘‘excess defense article’’ means defense articles 
(other than construction equipment, including trac-
tors, scrapers, loaders, graders, bulldozers, dump 
trucks, generators, and compressors) owned by the 
United States Government, and not procured in an-
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477 
ticipation of security assistance or sales require-
ments, or pursuant to a security assistance or sales 
order, which is in excess of the Approved Force Ac-
quisition Objective and Approved Force Retention 
Stock of all Department of Defense Components at 
the time such articles are dropped from inventory by 
the supplying agency for delivery to countries or 
international organizations under this Act. 
(9) INCENTIVE PAYMENTS.—The term ‘‘incen-
tive payments’’ means direct monetary compensation 
made by a United States supplier of defense articles 
or defense services or by any employee, agent, or 
subcontractor thereof to any other United States 
person to induce or persuade that United States per-
son to purchase or acquire goods or services pro-
duced, manufactured, grown, or extracted, in whole 
or in part, in the foreign country which is pur-
chasing those defense articles or defense services 
from the United States supplier. 
(10) MAJOR DEFENSE EQUIPMENT.—The term 
‘‘major defense equipment’’ means any item of sig-
nificant military equipment on the United States 
Munitions List having a nonrecurring research and 
development cost of more than $50,000,000 or a 
total production cost of more than $200,000,000. 
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478 
(11) MAJOR UNITED STATES ALLY.—The term 
‘‘major United States ally’’ means a country that is 
designated in accordance with section 4409 as a 
major United States ally for purposes of this Act. 
(12) 
NATO/SHAPE 
PROJECT.—The 
term 
‘‘NATO/SHAPE project’’ means a common-funded 
project supported by allocated credits from North 
Atlantic Treaty Organization bodies or by host na-
tions with NATO Infrastructure funds. 
(13) NUCLEAR EXPLOSIVE DEVICE.—The term 
‘‘nuclear explosive device’’ has the meaning given 
that term in section 830(4) of the Nuclear Prolifera-
tion Prevention Act of 1994. 
(14) OFFSET AGREEMENT.—The term ‘‘offset 
agreement’’ means an agreement, arrangement, or 
understanding between a United States supplier of 
defense articles or defense services and a foreign 
country under which the supplier agrees to purchase 
or acquire, or to promote the purchase or acquisition 
by other United States persons of, goods or services 
produced, manufactured, grown, or extracted, in 
whole or in part, in that foreign country in consider-
ation for the purchase by the foreign country of de-
fense articles or defense services from the supplier. 
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479 
(15) SECURITY
ASSISTANCE
SURVEY.—The 
term ‘‘security assistance survey’’ means any survey 
or study conducted in a foreign country by United 
States Government personnel for the purpose of as-
sessing the needs of that country for security assist-
ance, and includes defense requirement surveys, site 
surveys, general surveys or studies, and engineering 
assessment surveys. 
(16) SIGNIFICANT MILITARY EQUIPMENT.—The 
term ‘‘significant military equipment’’ means arti-
cles— 
(A) for which special export controls are 
warranted because of the capacity of such arti-
cles for substantial military utility or capability; 
and 
(B) identified on the United States Muni-
tions List. 
(17) SMALL
ARM
OR
LIGHT
WEAPON.—The 
term ‘‘small arm or light weapon’’ means— 
(A) an item listed in Category I(a) of the 
United States Munitions List, 
(B) an item listed in Category III (as it 
applies to Category I(a)) of the United States 
Munitions List, or 
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