Title 10 — Armed ForcesRelease 119-73
§2347 Limitation on amounts that may be obligated or accrued by the United States
Title 10 › Subtitle Subtitle A— - General Military Law › Part PART IV— - SERVICE, SUPPLY, AND PROPERTY › Chapter CHAPTER 138— - COOPERATIVE AGREEMENTS WITH NATO ALLIES AND OTHER COUNTRIES › Subchapter SUBCHAPTER I— - ACQUISITION AND CROSS-SERVICING AGREEMENTS › § 2347
Summary
Limits how much the United States can accrue each fiscal year, before offsetting balances are calculated, in reimbursable liabilities (amounts the U.S. may have to pay) and reimbursable credits (amounts others may owe the U.S.) under certain international service agreements. For NATO members, NATO bodies, the United Nations, or similar international organizations, liabilities may not exceed $200,000,000 per year, with no more than $50,000,000 of that for buying supplies. For non‑NATO countries that have acquisition or cross‑servicing agreements with the U.S., liabilities may not exceed $60,000,000 per year, with up to $20,000,000 for supplies; that $60,000,000 is in addition to the $200,000,000. Credits are capped at $150,000,000 with NATO/UN/etc. and $75,000,000 with such non‑NATO countries (the $75,000,000 is in addition to the $150,000,000). Those dollar limits do not apply during periods of active hostilities or while U.S. forces are involved in a contingency or non‑combat operation (including humanitarian or disaster relief or UN Chapter VI or VII peacekeeping). Sales, purchases, or exchanges of petroleum, oils, or lubricants are excluded when counting the yearly totals.
Full Legal Text
Title 10, §2347
Armed Forces — Source: USLM XML via OLRC
(a)(1)Except during a period of active hostilities involving the armed forces, the total amount of reimbursable liabilities that the United States may accrue under this subchapter (before the computation of offsetting balances) with other member countries of the North Atlantic Treaty Organization, subsidiary bodies of the North Atlantic Treaty Organization, or from the United Nations Organization or any regional international organization of which the United States is a member may not exceed $200,000,000 in any fiscal year, and of such amount not more than $50,000,000 in liabilities may be accrued for the acquisition of supplies.
(2)Except during a period of active hostilities involving the armed forces, the total amount of reimbursable liabilities that the United States may accrue under this subchapter (before the computation of offsetting balances) with a country which is not a member of the North Atlantic Treaty Organization, but with which the United States has one or more acquisition or cross-servicing agreements, may not exceed $60,000,000 in any fiscal year, and of such amount not more than $20,000,000 in liabilities may be accrued for the acquisition of supplies. The $60,000,000 limitation specified in this paragraph is in addition to the limitation specified in paragraph (1).
(b)(1)Except during a period of active hostilities involving the armed forces, the total amount of reimbursable credits that the United States may accrue under this subchapter (before the computation of offsetting balances) with other member countries of the North Atlantic Treaty Organization, subsidiary bodies of the North Atlantic Treaty Organization, or from the United Nations Organization or any regional international organization of which the United States is a member may not exceed $150,000,000 in any fiscal year.
(2)Except during a period of active hostilities involving the armed forces, the total amount of reimbursable credits that the United States may accrue under this subchapter (before the computation of offsetting balances) with a country which is not a member of the North Atlantic Treaty Organization, but with which the United States has one or more acquisition or cross-servicing agreements may not exceed $75,000,000 in any fiscal year. Such limitation specified in this paragraph is in addition to the limitation specified in paragraph (1).
(c)When the armed forces are involved in a contingency operation or in a non-combat operation (including an operation in support of the provision of humanitarian or foreign disaster assistance or in support of peacekeeping operations under chapter VI or VII of the Charter of the United Nations), the restrictions in subsections (a) and (b) are waived for the purposes and duration of that operation.
(d)The amount of any sale, purchase, or exchange of petroleum, oils, or lubricants by the United States under this subchapter in any fiscal year shall be excluded in any computation for the purposes of subsection (a) or (b) of the amount of reimbursable liabilities or reimbursable credits that the United States accrues under this subchapter in that fiscal year.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Amendments
2006—Subsec. (a)(1), (2). Pub. L. 109–364, § 1221(a)(1), struck out “(other than petroleum, oils, and lubricants)” after “supplies”. Subsec. (d). Pub. L. 109–364, § 1221(a)(2), added subsec. (d). 1994—Subsec. (a)(1). Pub. L. 103–337, § 1317(g)(1), substituted “Organization, subsidiary” for “Organization and subsidiary”, inserted “, or from the United Nations Organization or any regional international organization of which the United States is a member” after “Treaty Organization”, and substituted “$200,000,000” for “$150,000,000” and “$50,000,000” for “$25,000,000”. Subsec. (a)(2). Pub. L. 103–337, § 1317(g)(2), substituted “$60,000,000” for “$10,000,000” in two places and “$20,000,000” for “$2,500,000”. Subsec. (b)(1). Pub. L. 103–337, § 1317(g)(3), substituted “Organization, subsidiary” for “Organization and subsidiary”, inserted “, or from the United Nations Organization or any regional international organization of which the United States is a member” after “Treaty Organization”, and substituted “$150,000,000” for “$100,000,000”. Subsec. (b)(2). Pub. L. 103–337, § 1317(g)(4), substituted “$75,000,000” for “$10,000,000”. Subsec. (c). Pub. L. 103–337, § 1317(g)(5), added subsec. (c). 1993—Subsec. (b)(2). Pub. L. 103–35 made technical amendment to directory language of Pub. L. 102–484, § 1312(b)(4)(B). See 1992 Amendment note below. 1992—Subsec. (a)(1). Pub. L. 102–484, § 1312(b)(1), substituted “armed forces” for “North Atlantic Treaty Organization” and inserted “with other member countries of the North Atlantic Treaty Organization and subsidiary bodies of the North Atlantic Treaty Organization” after “(before the computation of offsetting balances)”. Subsec. (a)(2). Pub. L. 102–484, § 1312(b)(2), substituted “involving the armed forces, the total amount of reimbursable liabilities that the United States may accrue under this subchapter (before the computation of offsetting balances) with” for “in the military region affecting” and struck out “the total amount of reimbursable liabilities that the United States may accrue under this subchapter (before the computation of offsetting balances) with such country” after “cross-servicing agreements,”. Subsec. (b)(1). Pub. L. 102–484, § 1312(b)(3), substituted “armed forces” for “North Atlantic Treaty Organization” and inserted “with other member countries of the North Atlantic Treaty Organization and subsidiary bodies of the North Atlantic Treaty Organization” after “(before the computation of offsetting balances)”. Subsec. (b)(2). Pub. L. 102–484, § 1312(b)(4)(A), substituted “involving the armed forces” for “in the military region affecting a country referred to in paragraph (1)”. Pub. L. 102–484, § 1312(b)(4)(B), as amended by Pub. L. 103–35, substituted “(before the computation of offsetting balances) with a country which is not a member of the North Atlantic Treaty Organization, but with which the United States has one or more acquisition or cross-servicing agreements” for “from such country (before computation of offsetting balances)”. 1989—Pub. L. 101–189 substituted “this subchapter” for “this chapter” wherever appearing. 1988—Subsec. (a)(1). Pub. L. 100–456 substituted “$150,000,000” for “$100,000,000”. 1986—Subsec. (a). Pub. L. 99–661, § 1104(d)(1), designated existing provisions as par. (1) and added par. (2). Subsec. (b). Pub. L. 99–661, § 1104(d)(2), designated existing provisions as par. (1) and added par. (2). 1985—Pub. L. 99–145 renumbered section 2327 of this title as this section.
Statutory Notes and Related Subsidiaries
Effective Date
of 2006 Amendment Pub. L. 109–364, div. A, title XII, § 1221(b), Oct. 17, 2006, 120 Stat. 2423, provided that: “The
Amendments
made by subsection (a) [amending this section] shall take effect beginning with fiscal year 2007.”
Effective Date
of 1994 AmendmentAmendment by Pub. L. 103–337 applicable with regard to any acquisition or transfer of logistic support, supplies, and services under authority of this subchapter that is initiated after Oct. 5, 1994, see section 1317(j) of Pub. L. 103–337, set out as a note under section 2341 of this title.
Effective Date
of 1993 AmendmentAmendment by Pub. L. 103–35 applicable as if included in the enactment of Pub. L. 102–484, see section 202(b) of Pub. L. 103–35, set out as a note under section 155 of this title.
Effective Date
of 1992 AmendmentAmendment by Pub. L. 102–484 effective Oct. 23, 1992, and applicable to acquisitions of logistics support, supplies, and services under this chapter that are initiated on or after Oct. 23, 1992, see section 1312(c) of Pub. L. 102–484, set out as a note under section 2341 of this title.
Reference
Citations & Metadata
Citation
10 U.S.C. § 2347
Title 10 — Armed Forces
Last Updated
Apr 6, 2026
Release point: 119-73