
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 10USC4687]

 
                         TITLE 10--ARMED FORCES
 
                            Subtitle B--Army
 
                PART IV--SERVICE, SUPPLY, AND PROCUREMENT
 
          CHAPTER 443--DISPOSAL OF OBSOLETE OR SURPLUS MATERIAL
 
Sec. 4687. Sale of excess, obsolete, or unserviceable ammunition 
        and ammunition components
        
    (a) Authority To Sell Outside DoD.--The Secretary of the Army may 
sell to an eligible purchaser described in subsection (c) ammunition or 
ammunition components that are excess, obsolete, or unserviceable and 
have not been demilitarized if--
        (1) the purchaser enters into an agreement, in advance, with the 
    Secretary--
            (A) to demilitarize the ammunition or components; and
            (B) to reclaim, recycle, or reuse the component parts or 
        materials; or

        (2) the Secretary, or an official of the Department of the Army 
    designated by the Secretary, approves the use of the ammunition or 
    components proposed by the purchaser as being consistent with the 
    public interest.

    (b) Method of Sale.--The Secretary shall use competitive procedures 
to sell ammunition and ammunition components under this section, except 
that the Secretary may use procedures other than competitive procedures 
in any case in which the Secretary determines that there is only one 
potential buyer of the items being offered for sale.
    (c) Eligible Purchasers.--To be eligible to purchase excess, 
obsolete, or unserviceable ammunition or ammunition components under 
this section, the purchaser shall be a licensed manufacturer (as defined 
in section 921(10) of title 18) that, as determined by the Secretary, 
has a capability to modify, reclaim, transport, and either store or sell 
the ammunition or ammunition components sought to be purchased.
    (d) Hold Harmless Agreement.--The Secretary shall require a 
purchaser of ammunition or ammunition components under this section to 
agree to hold harmless and indemnify the United States from any claim 
for damages for death, injury, or other loss resulting from a use of the 
ammunition or ammunition components, except in a case of willful 
misconduct or gross negligence of a representative of the United States.
    (e) Verification of Demilitarization.--The Secretary shall establish 
procedures for ensuring that a purchaser of ammunition or ammunition 
components under this section demilitarizes the ammunition or ammunition 
components in accordance with any agreement to do so under subsection 
(a)(1). The procedures shall include onsite verification of 
demilitarization activities.
    (f) Consideration.--The Secretary may accept ammunition, ammunition 
components, or ammunition demilitarization services as consideration for 
ammunition or ammunition components sold under this section. The fair 
market value of any such consideration shall be equal to or exceed the 
fair market value or, if higher, the sale price of the ammunition or 
ammunition components sold.
    (g) Relationship to Arms Export Control Act.--Nothing in this 
section shall be construed to affect the applicability of section 38 of 
the Arms Export Control Act (22 U.S.C. 2778) to sales of ammunition or 
ammunition components on the United States Munitions List.
    (h) Definitions.--In this section:
        (1) The term ``excess, obsolete, or unserviceable'', with 
    respect to ammunition or ammunition components, means that the 
    ammunition or ammunition components are no longer necessary for war 
    reserves or for support of training of the Army or production of 
    ammunition or ammunition components.
        (2) The term ``demilitarize'', with respect to ammunition or 
    ammunition components--
            (A) means to destroy the military offensive or defensive 
        advantages inherent in the ammunition or ammunition components; 
        and
            (B) includes any mutilation, scrapping, melting, burning, or 
        alteration that prevents the use of the ammunition or ammunition 
        components for the military purposes for which the ammunition or 
        ammunition components was designed or for a lethal purpose.

(Added Pub. L. 105-85, div. A, title X, Sec. 1065(a)(1), Nov. 18, 1997, 
111 Stat. 1893.)


                         Review of Initial Sales

    Section 1065(b) of Pub. L. 105-85 provided that:
    ``(1) For each of the first three fiscal years during which the 
Secretary of the Army sells ammunition or ammunition components under 
the authority of section 4687 of title 10, United States Code, as added 
by subsection (a), the Director of the Army Audit Agency shall conduct a 
review of sales under such section to ensure that--
        ``(A) purchasers that enter into an agreement under subsection 
    (a)(1) of such section to demilitarize the purchased ammunition or 
    ammunition components fully comply with the agreement; and
        ``(B) purchasers that are authorized under subsection (a)(2) of 
    such section to use the purchased ammunition or ammunition 
    components actually use the ammunition or ammunition components in 
    the manner proposed.
    ``(2) Not later than 180 days after the end of each fiscal year in 
which the review is conducted, the Secretary of the Army shall submit to 
Congress a report containing the results of the review for the fiscal 
year covered by the report.''
