Title 10 › Subtitle B — Army › PART IV — SERVICE, SUPPLY, AND PROCUREMENT › CHAPTER 763 — PROCUREMENT › § 7542
The Department of Defense may not use its money to give foreign countries the technical data package (the design and production instructions) for a weapon made in a U.S. arsenal, or to help a foreign country make that weapon. The Secretary of the Army can allow a transfer or help only if the country is friendly (the Secretary of Defense checks with the Secretary of State), the action clearly helps keep the U.S. cannon production base alive, it does not hand over technology unique to the arsenal (unless rules below allow it), and the Secretary of Defense signs a formal agreement with the country. The agreement must be either a government-to-government coproduction memorandum or a cooperative project under the Arms Export Control Act. Such agreements must say what data or help will be shared, require sharing production benefits with the U.S. arsenal, bar the foreign country from giving the items or data to others (unless exceptions apply), and let the Defense Department monitor and get reports. Unique technology may be licensed nonexclusively if a fee or royalty is paid; those payments go into the arsenal’s operating fund for capital and technology work. Transfers to third parties are allowed only for partnered cooperative work or if the President follows required export rules and certifies to Congress that the transfer helps U.S. cannon production. The Army must notify Congress about each agreement and report on them twice a year. "Arsenal" means a government-owned, government-run plant that makes large-caliber cannon.
Full Legal Text
Armed Forces, Source: USLM XML via OLRC
Legislative History
Reference
Citation
10 U.S.C. § 7542
Title 10, Armed Forces
Last Updated
Sep 22, 2026
Release point: 119-110