
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: 22USC2785]

 
               TITLE 22--FOREIGN RELATIONS AND INTERCOURSE
 
                     CHAPTER 39--ARMS EXPORT CONTROL
 
  SUBCHAPTER III-A--END-USE MONITORING OF DEFENSE ARTICLES AND DEFENSE 
                                SERVICES
 
Sec. 2785. End-use monitoring of defense articles and defense 
        services
        

(a) Establishment of monitoring program

                           (1) In general

        In order to improve accountability with respect to defense 
    articles and defense services sold, leased, or exported under this 
    chapter or the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et 
    seq.), the President shall establish a program which provides for 
    the end-use monitoring of such articles and services.

                     (2) Requirements of program

        To the extent practicable, such program--
            (A) shall provide for the end-use monitoring of defense 
        articles and defense services in accordance with the standards 
        that apply for identifying high-risk exports for regular end-use 
        verification developed under section 2778(g)(7) of this title 
        (commonly referred to as the ``Blue Lantern'' program); and
            (B) shall be designed to provide reasonable assurance that--
                (i) the recipient is complying with the requirements 
            imposed by the United States Government with respect to use, 
            transfers, and security of defense articles and defense 
            services; and
                (ii) such articles and services are being used for the 
            purposes for which they are provided.

(b) Conduct of program

    In carrying out the program established under subsection (a) of this 
section, the President shall ensure that the program--
        (1) provides for the end-use verification of defense articles 
    and defense services that incorporate sensitive technology, defense 
    articles and defense services that are particularly vulnerable to 
    diversion or other misuse, or defense articles or defense services 
    whose diversion or other misuse could have significant consequences; 
    and
        (2) prevents the diversion (through reverse engineering or other 
    means) of technology incorporated in defense articles.

(c) Report to Congress

    Not later than 6 months after July 21, 1996, and annually thereafter 
as a part of the annual congressional presentation documents submitted 
under section 634 of the Foreign Assistance Act of 1961 [22 U.S.C. 
2394], the President shall transmit to the Congress a report describing 
the actions taken to implement this section, including a detailed 
accounting of the costs and number of personnel associated with the 
monitoring program.

(d) Third country transfers

    For purposes of this section, defense articles and defense services 
sold, leased, or exported under this chapter or the Foreign Assistance 
Act of 1961 (22 U.S.C. 2151 et seq.) includes defense articles and 
defense services that are transferred to a third country or other third 
party.

(Pub. L. 90-629, ch. 3A, Sec. 40A, as added Pub. L. 104-164, title I, 
Sec. 150(a), July 21, 1996, 110 Stat. 1436.)

                       References in Text

    The Foreign Assistance Act of 1961, referred to in subsecs. (a)(1) 
and (d), is Pub. L. 87-195, Sept. 4, 1961, 75 Stat. 424, as amended, 
which is classified principally to chapter 32 (Sec. 2151 et seq.) of 
this title. For complete classification of this Act to the Code, see 
Short Title note set out under section 2151 of this title and Tables.

                          Codification

    Another section 40A of Pub. L. 90-629 is classified to section 2781 
of this title.


                             Effective Date

    Section 150(b) of Pub. L. 104-164 provided that: ``Section 40A of 
the Arms Export Control Act, as added by subsection (a) [22 U.S.C. 
2785], applies with respect to defense articles and defense services 
provided before or after the date of the enactment of this Act [July 21, 
1996].''

                         Delegation of Functions

    Functions of President under this section delegated to Secretary of 
State insofar as they relate to commercial exports licensed under this 
chapter, and to Secretary of Defense insofar as they relate to defense 
articles and defense services sold, leased, or transferred under the 
Foreign Military Sales Program, by section 1(n) of Ex. Ord. No. 11958, 
Jan. 18, 1977, 42 F.R. 4311, as amended, set out as a note under section 
2751 of this title.
