[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1862 Placed on Calendar Senate (PCS)]
Calendar No. 388
108th CONGRESS
1st Session
S. 1862
To provide certain exceptions from requirements for bilateral
agreements with Australia and the United Kingdom for exemptions from
the International Traffic in Arms Regulations.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
November 14 (legislative day, November 12), 2003
Mr. Lugar introduced the following bill; which was read the first time
November 17, 2003
Read the second time and placed on the calendar
_______________________________________________________________________
A BILL
To provide certain exceptions from requirements for bilateral
agreements with Australia and the United Kingdom for exemptions from
the International Traffic in Arms Regulations.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Defense Trade Cooperation Act of
2003''.
SEC. 2. FINDINGS.
Congress makes the following findings:
(1) Close defense cooperation between the United States and
each of the United Kingdom and Australia requires
interoperability among the armed forces.
(2) The need for interoperability must be balanced with the
need for the appropriate and effective regulation of trade in
defense articles and defense services.
(3) The Arms Export Control Act (22 U.S.C. 2751 et seq.)
represents a delegation to the executive branch of the
constitutional power of Congress to regulate commerce with
foreign nations.
(4) Agreements to gain exemption from the International
Traffic in Arms Regulations must be submitted to Congress for
review.
SEC. 3. DEFINITIONS.
In this Act--
(1) the term ``appropriate congressional committees'' means
the Committee on International Relations of the House of
Representatives and the Committee on Foreign Relations of the
Senate;
(2) the term ``defense articles'' has the meaning given the
term in section 47 of the Arms Export Control Act (22 U.S.C.
2794);
(3) the term ``defense services'' has the meaning given the
term in section 47 of the Arms Export Control Act (22 U.S.C.
2794); and
(4) the term ``International Traffic in Arms Regulations''
means the regulations maintained under sections 120 through 130
of title 22, Code of Federal Regulations, or any successor
regulations.
SEC. 4. EXCEPTIONS TO BILATERAL AGREEMENT REQUIREMENTS FOR AUSTRALIA
AND THE UNITED KINGDOM.
(a) Exceptions.--Subsection (j) of section 38 of the Arms Export
Control Act (22 U.S.C. 2778) is amended--
(1) by redesignating paragraph (4) as paragraph (5); and
(2) by inserting after paragraph (3) the following new
paragraph (4):
``(4) Exceptions from bilateral agreement requirements.--
``(A) Australia.--Subject to the provisions of the
Defense Trade Cooperation Act of 2003, the requirements
for a bilateral agreement described in paragraph (2)(A)
shall not apply to such a bilateral agreement between
the United States Government and the Government of
Australia with respect to transfers or changes in end
use within Australia of defense items that will remain
subject to the licensing requirements of this Act after
such agreement enters into force.
``(B) United kingdom.--Subject to the provisions of
the Defense Trade Cooperation Act of 2003, the
requirements for a bilateral agreement described in
paragraphs (1)(A)(ii), (2)(A)(i), and (2)(A)(ii) shall
not apply to such 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.''.
(b) 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''.
SEC. 5. CERTIFICATIONS FOR THE UNITED KINGDOM AND AUSTRALIA.
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 section 4 of this Act, the President
shall certify to the appropriate congressional committees that such
agreement--
(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 as outlined in section 1 of the Arms Export Control Act
(22 U.S.C. 2751);
(2) does not adversely affect the ability of the
International Traffic in Arms Regulations to provide consistent
and adequate controls for licensed exports of United States
defense items; and
(3) will not adversely affect the duties or requirements of
the Secretary of State under the Arms Export Control Act.
SEC. 6. NOTIFICATION OF REGULATIONS PERMITTING 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 section 4 of this Act, the President
shall submit to the appropriate congressional committees the text of
the regulations that authorize such a licensing exemption.
SEC. 7. REPORT ON ISSUES RAISED IN CONSULTATIONS PURSUANT TO BILATERAL
AGREEMENTS WITH AUSTRALIA AND THE UNITED KINGDOM.
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 with Australia, or
under the terms of any bilateral agreement with the United Kingdom, for
exemption from the licensing requirements of the Arms Export Control
Act (22 U.S.C. 2751 et seq.). Each report shall contain detailed
information--
(1) 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;
(2) listing 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;
(3) 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;
(4) on provisions and procedures undertaken pursuant to--
(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
(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;
(5) 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;
(6) on consultations with the Government of the United
Kingdom or the Government of Australia concerning the legal
enforcement of any such agreements;
(7) 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
(8) 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.
SEC. 8. SPECIAL REPORTS ON UNAUTHORIZED END-USE OR DIVERSION.
The Secretary of State shall notify the appropriate congressional
committees, in a manner consistent with ongoing efforts to investigate
and bring civil or criminal charges regarding such matters, not later
than 90 days after receiving any credible information regarding the
unauthorized end-use or diversion of United States exports made
pursuant to any agreement with a country to gain exemption from the
licensing requirements of the Arms Export Control Act. Such
notification may be made in classified or unclassified form and shall
include--
(1) a description of the good or service;
(2) the United States origin of the good or service;
(3) the authorized recipient of the good or service;
(4) a detailed description of the unauthorized end-use or
diversion of the good or service, including any knowledge by
the United States exporter of such unauthorized end-use or
diversion;
(5) any enforcement action taken by the Government of the
United States; and
(6) any enforcement action taken by the government of the
recipient nation.
Calendar No. 388
108th CONGRESS
1st Session
S. 1862
_______________________________________________________________________
A BILL
To provide certain exceptions from requirements for bilateral
agreements with Australia and the United Kingdom for exemptions from
the International Traffic in Arms Regulations.
_______________________________________________________________________
November 17, 2003
Read the second time and placed on the calendar