An act to authorize the sale of defense articles to United States companies for incorporation into end items to be sold to friendly foreign countries.
PL 97-392 (H.R.6758), enacted 12/29/1982

96 STAT. 1962 
PUBLIC LAW 97-392—DEC. 29, 1982 
Public Law 97-392 
97th Congress 
An Act 
Dec. 29,1982 
[H.R. 6758] 
Arms Export 
Control Act, 
amendment. 
22 use 2770. 
22 use 2778. 
"Defense 
articles," 
and "defense 
services." 
22 use 2794. 
To authorize the sale of defense articles to United States companies for incorporation 
into end items to be sold to friendly foreign countries. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, That the Arms 
Export Control Act is amended by inserting after chapter 2A the 
following new chapter: 
"Chapter 2B.—SALES TO UNITED STATES COMPANIES FOR 
INCORPORATION INTO END ITEMS 
"SEC. 30. GENERAL AUTHORITY.—(a) Subject to the conditions speci-
fied 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 incor-
poration into end items (and for concurrent or follow-on support) to 
be sold by such a company on a direct commercial basis to a friendly 
foreign country or international organization pursuant to an export 
license or approval under section 38 of this Act. 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) 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 interna-
tional 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) For the purpose of this section, the terms 'defense articles' 
and 'defense services' mean defense articles and defense services as 
defined in sections 47(3) and 47(4) of this Act.". 
-f A 
PUBLIC LAW 97-392—DEC. 29, 1982 
96 STAT. 1963 
SEC. 2. Sections 42(d) and 42(e) of the Arms Export Control Act are 22 use 2791. 
amended by striking out "and 29" wherever it appears and inserting 
in lieu thereof "29 and 30". 
SEC. 3. Section 21(i)(l) of the Arms Export Control Act is amended 2
2 use 2761. 
by deleting the comma following "under this section" and inserting 
in lieu thereof "or under authority of chapter 2B,". 
Approved December 29, 1982. 
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LEGISLATIVE HISTORY—H.R. 6758: 
SENATE REPORT No. 97-586 (Coram, on Foreign Relations). 
eONGRESSIONAL RECORD, Vol. 128 (1982): 
July 19, considered and passed House. 
Oct. 1, considered and passed Senate, amended. 
Dec. 13, House concurred in Senate amendment.