Saturday, September 10, 2016

Limitations in Regulation of Direct Contract (Arms) Sales

 "It should be noted, however, that the Leahy law applies only to what is called “Foreign Military Sales,” (FMS) and not to what is called “Direct Contract Sales” (DCS.) In other words, there are tremendous limitations to the Leahy law. . . .

As mentioned above, the “Leahy Law” is only applicable to Foreign Military Sales (FMS), not to the more heavily used Direct Commercial Sales (DCS). Foreign Military Sales are facilitated by the US Department of Defense and cover the sales of US arms, training, and other defense equipment to foreign governments, while Direct Commercial Sales are sales in which foreign governments buy directly from US weapons manufactuerers. FMS is an entirely governmental process, where the vetting process applies. DCS includes the sale and transfer of weapons and other defense articles, services, and training between private US companies and foreign recipients. FMS is far more regulated than DCS. As international exports, DCS must meet all eligibility requirements, such as valid export licenses and permissibility of materials, contained in the Arms Export Control Act and the International Traffic in Arms Regulations. Furthermore, the US is required by Congress under the FAA to prepare an annual report on this category of military assistance and exports (a provision made possible in part by Senator Leahy). These ‘655’ reports are the most detailed account available of specific Direct Commercial Sales of US weapons exported to governments or private buyers around the world. The 655 report, as called for by the Foreign Assistance Act of 1961, is compiled from the annual records of the State Department and each yearly report can be found online at www.pmddtc.state.gov. "

http://facingteargas.org/bp/37/understanding-us-weapons-exports

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