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U.S. Code as of:
01/19/04
Section 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.
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