Mr. Speaker, today is a great day. When others talk about a dysfunctional Congress or claim that members of different political parties can't work together, they ought to look at this bill. Today,…
Mr. Speaker, today is a great day. When others talk about a dysfunctional Congress or claim that members of different political parties can't work together, they ought to look at this bill. Today, the House votes on the Security Assistance and Arms Export Control Reform Act of 2008 (H.R. 5196) that we debated on Tuesday. Subtitle A of Title I of H.R. 5916 has been in the making for the past 18 months when I first learned of the complaints from industry regarding the immense backlog of defense export license applications at the State Department. The Executive Branch, both sides of the House Foreign Affairs Committee, industry, and Non-Governmental Organizations, NGOs, interested in non-proliferation all had input into this legislation.
Last year, I joined with Representatives Joe Crowley of New York and Earl Blumenauer of Oregon to establish the Congressional Export Control Working Group. We educated Members of Congress and their staff on the importance of export control modernization efforts to both our national and economic security.
Export control modernization is extremely important to the constituents I am proud to represent in the 16th District of Illinois. This area of the country is one of the most heavily industrialized Congressional districts in the Nation. We make everything from nuts and bolts to the advanced electrical system for the new Boeing 787, the Dreamliner. Many of the products and technologies produced by the manufacturers I am so proud to represent are regulated under U.S. export control law.
When I was first elected to Congress almost 16 years ago, a manufacturer from northern Illinois came to me for assistance in navigating the regulatory process for selling their product overseas. Ever since that first experience, I have been dedicated to modernizing our Nation's export control system. I am continuing to work on policies that will enhance U.S. national security, strengthen our defense industrial base, and boost U.S. competitiveness.
One piece of that puzzle is being considered here today. The Security Assistance and Arms Export Control Reform Act of 2008--which I am proud to have co-sponsored--contains legislation (Subtitle A of Title I entitled the Defense Trade Controls Performance Improvement Act of 2008) I co-wrote along with my good friend and colleague from California, Representative Brad Sherman who is the Chairman of the Terrorism, Non-proliferation, and Trade Subcommittee. This legislation will reduce defense trade license processing times, create a spare part waiver for our closest allies, and make licensing of defense items more transparent and predictable. These process improvements will make U.S. defense manufacturers in every category, including space, more competitive in the international marketplace. No longer will they have to fear being shut out of foreign markets or products because of a taint from the International Traffic in Arms Regulations, ITAR.
The bill will modernize the Federal Government's inefficient export control policy while strengthening national security and helping American companies sell more defense-related goods and services overseas to our allies.
H.R. 5916 requires the Directorate of Defense Trade Controls, DDTC, at the State Department to hire more staff to reduce the backlog of license applications that impedes legitimate trade with our allies without compromising national security. The last time I checked, the State Department has only 42 licensing officers. By 2010, this legislation requires adequate staff and resources at the State Department to review and process defense trade licenses in a timely manner. This legislation creates a ratio of at least one DDTC officer for ever 1,250 applications by 2010. The independent Congressional Budget Office, CBO, estimated that this provision would require the hiring of 35 additional licensing officers.
H.R. 5916 also requires DDTC to assign no less than 3 individuals by fiscal year 2009 to review applications for commodity jurisdiction determinations. This is one area of export controls that is extremely complex and time consuming--determining whether or not a particular widget is a commercial dual-use item or a munition. Having specialized personnel dedicated to this task will be extremely helpful in improving the processing of these determinations. The legislation also increasing the transparency of commodity jurisdiction determinations with the publication of those decisions on the Internet. This will help companies know in advance whether or not their particular product would fall into a commercial or munitions category.
The legislation also creates a series of performance goals for DDTC: No longer than 60 days to process a defense trade license; 30 days to process a defense trade license for close allies; and 7 days to process a defense trade license from our close allies in support of combat operations or peacekeeping or humanitarian operations with U.S. Armed Forces. This in no way implies forcing a premature decision--these are simply goals to achieve that have already been vetted with the Executive Branch. All tolled, CBO scored these personnel enhancement as costing $6 million in 2009 and $31 million over the next 5 years,
which is a relatively modest price to pay to insure a vibrant and growing U.S. aerospace export industry. In 2007, the U.S. exported nearly $97 billion worth of aerospace products, producing a $60 billion positive trade balance in an otherwise grim trade picture. Nevertheless, H.R. 5916 also requires a report within 90 days on possible means for DDTC to achieve 100 percent self-financing.
H.R. 5916 creates a special licensing authorization for U.S. manufactured spare and replacement parts or components in connection with defense items previously lawfully exported to our closest friends and allies. This will help free up time of DDTC employees to go after more significant threats to our national security. Finally, the bill augments the input of the private sector Defense Trade Advisory Group, DTAG, into the State Department's defense trade agenda.
In conclusion, the Security Assistance and Arms Export Control Reform Act of 2008 streamlines the export control process, reduces the application backlog, and allows greater scrutiny on sensitive exports that could harm our country. It will better protect our Nation while helping U.S. companies sell more goods and services to our allies, creating more jobs for Americans. I appreciate the Foreign Affairs Committee's bipartisan efforts on this issue, particularly Chairmen Berman and Sherman and their respective staffs, and I urge my colleagues to support H.R. 5916.
