§7687 Sale of Excess, Obsolete, or Unserviceable Ammunition and Ammunition Components

Summary

The Secretary of the Army may sell Army ammunition or parts that are extra, outdated, or not usable to outside buyers if the buyer agrees ahead of time to destroy their military usefulness and to reclaim or recycle the materials, or if the Army approves the buyer’s proposed nonmilitary use as being in the public interest. Sales must normally be done by competitive bidding, unless there is only one possible buyer. Buyers must be licensed manufacturers (18 U.S.C. 921(a)(10)) who can modify, reclaim, move, and either store or resell the items. Buyers must agree to protect and pay the United States for any claims for injury or loss caused by use of the items, except when a U.S. representative acts with gross negligence or on purpose. The Army must check that buyers follow their destruction agreements, including on-site checks. The Army may accept ammo, parts, or destruction services as payment if their fair market value meets or exceeds the sale price. Sales that are on the U.S. Munitions List remain subject to section 38 of the Arms Export Control Act (22 U.S.C. 2778). “Excess, obsolete, or unserviceable” means no longer needed for war stock, training, or production. “Demilitarize” means make the items unusable for their military or lethal purpose, for example by mutilating, melting, burning, or other alteration.