TNAG-2404-FCO40-3491-Hong-Kong-defence-and-public-order-1992 — Page 50

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Applicability and scope..

Definitions.

165.2

165.3

165.4

Policy.

165.5

165.6

Responsibilities.

Procedures.

165.7 Waivers (including reductions).

Authority: 31 U.S.C. 9701.

Sec. 165.1 Purpose.

This part updates policy to conform with Public Law 90-629, "Arms Export Control Act," October 22, 1968, as amended, nonrecurring cost recoupment charges on sales or licensing of items developed for or by the Department of Defense to non-U.S. Government customers.

Sec. 165.2

Applicability and scope.

(a) This part applies to the Office of the Secretary of Defense, the Military Departments, the Chairman of the Joint Chiefs of Staff and the Joint Staff, the Unified and Specified Commands, the Defense Agencies, and the DOD Field Activities (hereafter referred to collectively as "the DoD

Components").

(b) The provisions of this part shall be applied to those receiving DoD technical data packages from the Department of Defense and contractually to DOD contractors who sell or license defense items developed with DOD appropriations or funds (and, in special cases, customer funds) or use technical data packages to manufacture items sold commercially to a foreign government, international organization, foreign commercial firm, or private party for military purposes.

(c) The provisions of this part do not apply to sales of excess property when accountability has been transferred to property disposal activities and the property is sold in open competition to the highest bidder.

(d) The policies and procedures provided for in this part shall apply to all prospective sales and shall entirely supersede application thresholds and charges previously established. Previously established nonrecurring cost. recoupment thresholds and charges shall be eliminated or revised in accordance with this part on all future sales. Existing contracts encompassing items for which recoupment charges are applicable, other than major defense equipment sold for military purposes, may, upon request by a contractor, be renegotiated to reduce the nonrecurring cost recoupment to the extent permitted by law.

Sec. 165.3

Definitions.

(a) Cost Pool. Represents the total cost to be distributed across the specific number of units. The nonrecurring research, development, test, and evaluation cost pool comprises the costs described in paragraph (k) of this section. The nonrecurring production cost pool comprises costs described in paragraph (j) of this section.

(b) Direct Commercial Sale. A commercial sale, for military use, to a customer by a defense contractor of items, technology, materiel, services, and development or production techniques that originally were developed, improved, or produced using DoD appropriations or funds.