Congressional Notification of Transfers

Third party transfers are subject to requirements for Congressional notification under AECA,  §3(d) (reference (c)), using guidelines similar to those for AECA,  §36(b) (reference (c)) notifications (see Chapter 5, section C5.6). A 30-day prior Congressional notification is required for third-party transfer requests that involve defense articles and services with original acquisition values that fall in one of the following categories: Major Defense Equipment (MDE) with an acquisition value equal to or greater than $14,000,000 for non-North Atlantic Treaty Organization (NATO) recipients and $25,000,000 if the recipient is a member of NATO, Australia, Japan, or New Zealand; or any other defense article or related training or defense service with an acquisition value of $50,000,000 or more for non-NATO recipients and $100,000,000 or more for NATO, Australia, Japan, and New Zealand recipients. Approval is granted after the 30-day (including weekends) period has expired if no objections are raised.

In cases where the proposed defense article carries an original value of at least $1,000,000, the transfer is entered in a written quarterly report sent to Congress. Such notification does not affect timing of overall processing of the transfer.