Sec. 4314. Charges
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/bill/113/hr/1793/ih/section-4314·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Letters of offer for the sale of defense articles or defense services that are issued pursuant to section 4311 or 4312 shall include appropriate charges for— administrative services, calculated on an average percentage basis to recover the full estimated costs (excluding a pro rata share of fixed base operations costs) of administration of sales made under this Act to all purchasers of such articles and services as specified in section 4402(b) and (c); a proportionate amount of any nonrecurring costs of research, development, and production of major defense equipment (except for equipment wholly paid for either from funds transferred under section 4211(b)(3) or from funds made available on a nonrepayable basis under section 4251; and the recovery of ordinary inventory losses associated with the sale from stock of defense articles that are being stored at the expense of the purchaser of such articles.
The President may waive the charges for administrative services that would otherwise be required by— subsection (a)(1) in connection with any sale to a foreign country, if the President determines that a waiver— is in the national security interests of the United States; and will facilitate the ability of that country to detect, deter, prevent, defeat, or counter terrorist activities, or participate in, or support, military operations, coalition operations, or stability operations of the United States; or subsection (a)(2) in connection with any sale to the Maintenance and Supply Agency of the North Atlantic Treaty Organization in support of— a weapon system partnership agreement; or a NATO/SHAPE project.
The President may reduce or waive the charge or charges that would otherwise be considered appropriate under subsection (a)(2) for a particular sale or for sales if the President determines that— the reduction or waiver would significantly advance United States Government interests in standardization with the armed forces of a foreign country that is a strategic United States ally, or would promote foreign procurement in the United States under coproduction arrangements; imposition of the charge or charges likely would result in the loss of the sale; or in the case of a sale of major defense equipment that is also being procured for the use of the United States Armed Forces, the waiver of the charge or charges would (through a resulting increase in the total quantity of the equipment purchased from the source of the equipment that causes a reduction in the unit cost of the equipment) result in a savings to the United States on the cost of the equipment procured for the use of the United States Armed Forces that substantially offsets the revenue foregone by reason of the waiver of the charge or charges.
The President may waive, for particular sales of major defense equipment, any increase in a charge or charges previously considered appropriate under paragraph
(2)of subsection
(a)if the increase results from a correction of an estimate (reasonable when made) of the production quantity base that was used for calculating the charge or charges for purposes of such paragraph.