Understanding Major Defense Equipment: Legal Insights and Implications

Definition & Meaning

The term major defense equipment refers to significant military items listed on the United States Munitions List. These items are characterized by either a nonrecurring research and development cost exceeding $50,000,000 or a total production cost surpassing $200,000,000. This definition is crucial for understanding the scope of military transactions and regulations in the context of U.S. foreign relations and arms control.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: A defense contractor develops a new fighter jet with a research and development cost of $60,000,000. This jet qualifies as major defense equipment.

Example 2: A military vehicle is produced with a total cost of $250,000,000. This vehicle is also classified as major defense equipment.

Comparison with related terms

Term Definition Difference
Defense Articles Items specifically designed for military use. Major defense equipment is a subset of defense articles with higher cost thresholds.
Military Equipment General term for any equipment used by armed forces. Major defense equipment refers to high-value items with specific legal definitions.

What to do if this term applies to you

If you are involved in a transaction or contract that may include major defense equipment, consider the following steps:

  • Review the relevant laws and regulations regarding arms exports.
  • Utilize legal templates from US Legal Forms to draft necessary documents.
  • If the situation is complex, consult with a legal professional specializing in defense contracts.

Quick facts

Attribute Details
Cost Threshold for R&D More than $50,000,000
Cost Threshold for Production More than $200,000,000
Legal Reference 22 USCS § 2794

Key takeaways

Frequently asked questions

Items that are on the U.S. Munitions List with significant costs in research and development or production.