S.Amdt. 1564

1. Adds SEC. 1205. EXCEPTION TO BILATERAL AGREEMENT REQUIREMENTS FOR TRANSFERS OF DEFENSE ITEMS at the end of title XII

   Adds a section

   In S. 1042 · Placed on Calendar Senate

   (c) Effective Date.--The amendments made by this section shall take effect on October, 1, 2005.

   Inserted: SEC. 1205. EXCEPTION TO BILATERAL AGREEMENT REQUIREMENTS FOR TRANSFERS OF DEFENSE ITEMS.

   Inserted: (a) Findings.--Congress makes the following findings:

   Inserted: (1) Close defense cooperation between the United States and each of the United Kingdom and Australia requires interoperability among the armed forces of those countries.

   Inserted: (2) The need for interoperability must be balanced with the need for appropriate and effective regulation of trade in defense items.

   Inserted: (3) The Arms Export Control Act (22 U.S.C. 2751 et seq.) authorizes the executive branch to administer arms export policies enacted by Congress in the exercise of its constitutional power to regulate commerce with foreign nations.

   Inserted: (4) The executive branch has exercised its authority under the Arms Export Control Act, in part, through the International Traffic in Arms Regulations.

   Inserted: (5) Agreements to gain exemption from the International Traffic in Arms Regulations must be submitted to Congress for review.

   Inserted: (b) Definitions.--In this section:

   Inserted: (1) Appropriate congressional committees.--The term "appropriate congressional committees" means--

   Inserted: (A) the Committee on Foreign Relations and the Committee on Armed Services of the Senate; and

   Inserted: (B) the Committee on International Relations and the Committee on Armed Services of the House of Representatives.

   Inserted: (2) Defense items.--The term "defense items" has the meaning given the term in section 38 of the Arms Export Control Act (22 U.S.C. 2778).

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   Inserted: (3) International traffic in arms regulations.--The term "International Traffic in Arms Regulations" means the regulations maintained under parts 120 through 130 of title 22, Code of Federal Regulations, and any successor regulations.

   Inserted: (c) Exceptions From Bilateral Agreement Requirements.--

   Inserted: (1) In general.--Subsection (j) of section 38 of the Arms Export Control Act (22 U.S.C. 2778) is amended--

   Inserted: (A) by redesignating paragraph (4) as paragraph (5); and

   Inserted: (B) by inserting after paragraph (3) the following new paragraph (4):

   Inserted: "(4) Exceptions from bilateral agreement requirements.--

   Inserted: "(A) Australia.--Subject to section 1205 of the National Defense Authorization Act for Fiscal Year 2006, the requirements for a bilateral agreement described in paragraph (2)(A) shall not apply to a bilateral agreement between the United States Government and the Government of Australia with respect to transfers or changes in end use of defense items within Australia that will remain subject to the licensing requirements of this Act after such agreement enters into force.

   Inserted: "(B) United kingdom.--Subject to section 1205 of the National Defense Authorization Act for Fiscal Year 2006, the requirements for a bilateral agreement described in paragraphs (1)(A)(ii), (2)(A)(i), and (2)(A)(ii) shall not apply to a bilateral agreement between the United States Government and the Government of the United Kingdom for an exemption from the licensing requirements of this Act.".

   Inserted: (2) Conforming amendment.--Paragraph (2) of such subsection is amended in the matter preceding subparagraph (A) by striking "A bilateral agreement" and inserting "Except as provided in paragraph (4), a bilateral agreement".

   Inserted: (d) Certifications.--Not later than 30 days before authorizing an exemption from the licensing requirements of the International Traffic in Arms Regulations in accordance with any bilateral agreement entered into with the United Kingdom or Australia under section 38(j) of the Arms Export Control Act (22 U.S.C. 2778(j)), as amended by subsection (c), the President shall certify to the appropriate congressional committees that such agreement--

   Inserted: (1) is in the national interest of the United States and will not in any way affect the goals and policy of the United States under section 1 of the Arms Export Control Act (22 U.S.C. 2751);

   Inserted: (2) will be void if such country quantitatively or qualitatively increases the export of defense items to the People's Republic of China.

   Inserted: (3) does not adversely affect the efficacy of the International Traffic in Arms Regulations to provide consistent and adequate controls for licensed exports of United States defense items; and

   Inserted: (4) will not adversely affect the duties or requirements of the Secretary of State under the Arms Export Control Act.

   Inserted: (e) Notification of Bilateral Licensing Exemptions.--Not later than 30 days before authorizing an exemption from the licensing requirements of the International Traffic in Arms Regulations in accordance with any bilateral agreement entered into with the United Kingdom or Australia under section 38(j) of the Arms Export Control Act (22 U.S.C. 2778(j)), as amended by subsection (c), the President shall submit to the appropriate congressional committees the text of the regulations that authorize such a licensing exemption.

   Inserted: (f) Report on Consultation Issues.--Not later than one year after the date of the enactment of this Act and annually thereafter for each of the following 5 years, the President shall submit to the appropriate congressional committees a report on issues raised during the previous year in consultations conducted under the terms of any bilateral agreement entered into with Australia under section 38(j) of the Arms Export Control Act, or under the terms of any bilateral agreement entered into with the United Kingdom under such section, for exemption from the licensing requirements of the Arms Export Control Act (22 U.S.C. 2751 et seq.). Each report shall contain--

   Inserted: (1) information on any notifications or consultations between the United States and the United Kingdom under the terms of any agreement with the United Kingdom, or between the United States and Australia under the terms of any agreement with Australia, concerning the modification, deletion, or addition of defense items on the United States Munitions List, the United Kingdom Military List, or the Australian Defense and Strategic Goods List;

   Inserted: (2) a list of all United Kingdom or Australia persons and entities that have been designated as qualified persons eligible to receive United States origin defense items exempt from the licensing requirements of the Arms Export Control Act under the terms of such agreements, and listing any modification, deletion, or addition to such lists, pursuant to the requirements of any agreement with the United Kingdom or any agreement with Australia;

   Inserted: (3) information on consultations or steps taken pursuant to any agreement with the United Kingdom or any agreement with Australia concerning cooperation and consultation with either government on the effectiveness of the defense trade control systems of such government;

   Inserted: (4) information on provisions and procedures undertaken pursuant to--

   Inserted: (A) any agreement with the United Kingdom with respect to the handling of United States origin defense items exempt from the licensing requirements of the Arms Export Control Act by persons and entities qualified to receive such items in the United Kingdom; and

   Inserted: (B) any agreement with Australia with respect to the handling of United States origin defense items exempt from the licensing requirements of the Arms Export Control Act by persons and entities qualified to receive such items in Australia;

   Inserted: (5) information on any new understandings, including the text of such understandings, between the United States and the United Kingdom concerning retransfer of United States origin defense items made pursuant to any agreement with the United Kingdom to gain exemption from the licensing requirements of the Arms Export Control Act;

   Inserted: (6) information on consultations with the Government of the United Kingdom or the Government of Australia concerning the legal enforcement of any such agreements;

   Inserted: (7) information on United States origin defense items with respect to which the United States has provided an exception under the Memorandum of Understanding between the United States and the United Kingdom and any agreement between the United States and Australia from the requirement for United States Government re-export consent that was not provided for under United States laws and regulations in effect on the date of the enactment of this Act; and

   Inserted: (8) information on any significant concerns that have arisen between the Government of Australia or the Government of the United Kingdom and the United States Government concerning any aspect of any bilateral agreement between such country and the United States to gain exemption from the licensing requirements of the Arms Export Control Act.

   Inserted: (g) Special Notifications.--

   Inserted: (1) Required notifications.--The Secretary of State shall notify the appropriate congressional committees not later than 90 days after receiving any credible information regarding an unauthorized end-use or diversion of United States exports of goods or services made pursuant to any agreement with a country to gain exemption from the licensing requirements of the Arms Export Control Act. The notification shall be made in a manner that is consistent with any ongoing efforts to investigate and commence civil actions or criminal investigations or prosecutions regarding such matters and may be made in classified or unclassified form.

   Inserted: (2) Content.--The notification regarding an unauthorized end-use or diversion of goods or services under paragraph (1) shall include--

   Inserted: (A) a description of the goods or services;

   Inserted: (B) the United States origin of the good or service;

   Inserted: (C) the authorized recipient of the good or service;

   Inserted: (D) a detailed description of the unauthorized end-use or diversion, including any knowledge by the United States exporter of such unauthorized end-use or diversion;

   Inserted: (E) any enforcement action taken by the Government of the United States; and

   Inserted: (F) any enforcement action taken by the government of the recipient nation.

   Original wording

   At the end of title XII, add the following:

Read automatically from the Congressional Record. Check the original before relying on it.

As printed