ARMS EXPORT CONTROL ENFORCEMENT AND COORDINATION.

SEC. 1255. ARMS EXPORT CONTROL ENFORCEMENT AND COORDINATION. (a) Export Licenses.— Section 38 of the Arms Export Control Act (22 U.S.C. 2778) is amended by adding at the end the following new subsection: “(g) (1) The President shall develop appropriate mechanisms to identify, in connection with the export licensing process under this section— “(A) persons who are the subject of an indictment for, or have been convicted of, a violation under— “(i) this section, “(ii) section 11 of the Export Administration Act of 1979 (50 U.S.C. App. 2410), “(iii) section 793, 794, or 798 of title 18, United States Code (relating to espionage involving defense or classified information), “(iv) section 16 of the Trading with the Enemy Act (50 U.S.C. App. 16), “(v) section 206 of the International Emergency Economic Powers Act (relating to foreign assets controls; 50 U.S.C. App. 1705), “(vi) section 30A of the Securities Exchange Act of 1934 (15 U.S.C. 78dd–1) or section 104 of the Foreign Corrupt Practices Act (15 U.S.C. 78dd–2), “(vii) chapter 105 of title 18, United States Code (relating to sabotage), “(viii) section 4(b) of the Internal Security Act of 1950 (relating to communication of classified information; 50 U.S.C. 783(b)), “(ix) section 57, 92, 101, 104, 222, 224, 225, or 226 of the Atomic Energy Act of 1954 (42 U.S.C. 2077, 2122, 2131, 2134, 2272, 2274, 2275, and 2276), “(x) section 601 of the National Security Act of 1947 (relating to intelligence identities protection; 50 U.S.C. 421), or “(xi) section 603 (b) or (c) of the Comprehensive Anti-Apartheid Act of 1986 (22 U.S.C. 5113 (b) and (c)); “(B) persons who are the subject of an indictment or have been convicted under section 371 of title 18, United States Code, for conspiracy to violate any of the statutes cited in subparagraph (A); and “(C) persons who are ineligible— “(i) to contract with, “(ii) to receive a license or other form of authorization to export from, or 101 STAT. 1430 “(iii) to receive a license or other form of authorization to import defense articles or defense services from, any agency of the United States Government. “(2) The President shall require that each applicant for a license to export an item on the United States Munitions List identify in the application all consignees and freight forwarders involved in the proposed export. “(3) If the President determines— “(A) that an applicant for a license to export under this section is the subject of an indictment for a violation of any of the statutes cited in paragraph (1), “(B) that there is reasonable cause to believe that an applicant for a license to export under this section has violated any of the statutes cited in paragraph (1), or “(C) that an applicant for a license to export under this section is ineligible to contract with, or to receive a license or other form of authorization to import defense articles or defense services from, any agency of the United States Government, the President may disapprove the application. The President shall consider requests by the Secretary of the Treasury to disapprove any export license application based on these criteria. “(4) A license to export an item on the United States Munitions List may not be issued to a person— “(A) if that person, or any party to the export, has been convicted of violating a statute cited in paragraph (1), or “(B) if that person, or any party to the export, is at the time of the license review ineligible to receive export licenses (or other forms of authorization to export) from any agency of the United States Government, except as may be determined on a case-by-case basis by the President, after consultation with the Secretary of the Treasury, after a thorough review of the circumstances surrounding the conviction or ineligibility to export and a finding by the President that appropriate steps have been taken to mitigate any law enforcement concerns. “(5) A license to export an item on the United States Munitions List may not be issued to a foreign person (other than a foreign government). “(6) The President may require a license (or other form of authorization) before any item on the United States Munitions List is sold or otherwise transferred to the control or possession of a foreign person or a person acting on behalf of a foreign person. “(7) The President shall, in coordination with law enforcement and national security agencies, develop standards for identifying high-risk exports for regular end-use verification. These standards shall be published in the Federal Register and the initial standards shall be published not later than October 1, 1988. “(8) Upon request of the Secretary of State, the Secretary of Defense and the Secretary of the Treasury shall detail to the office primarily responsible for export licensing functions under this section, on a nonreimbursable basis, personnel with appropriate expertise to assist in the initial screening of applications for export licenses under this section in order to determine the need for further review of those applications for foreign policy, national security, and law enforcement concerns. “(9) For purposes of this subsection— 101 STAT. 1431 “(A) the term ‘foreign corporation’ means a corporation that is not incorporated in the United States; “(B) the term ‘foreign government’ includes any agency or subdivision of a foreign government, including an official mission of a foreign government; “(C) the term ‘foreign person’ means any person who is not a citizen or national of the United States or lawfully admitted to the United States for permanent residence under the Immigration and Nationality Act, and includes foreign corporations, international organizations, and foreign governments; “(D) the term ‘party to the export’ means— “(i) the president, the chief executive officer, and other senior officers of the license applicant; “(ii) the freight forwarders or designated exporting agent of the license application; and “(iii) any consignee or end user of any item to be exported; and “(E) the term ‘person’ means a natural person as well as a corporation, business association, partnership, society, trust, or any other entity, organization, or group, including governmental entities.”. (b) Review of Munitions Control Registrations.— Section 38(b)(1) of that Act is amended— (1) by inserting “(A)” after “(1)”; and (2) by adding at the end the following new paragraph: “(B) A copy of each registration made under this paragraph shall be transmitted to the Secretary of the Treasury for review regarding law enforcement concerns. The Secretary shall report to the President regarding such concerns as necessary.”. (c) Munitions Control Registration Fees.— Section 38(b) of that Act is amended by inserting at the end the following: “(3) (A) For each of the fiscal years 1988 and 1989, $250,000 of registration fees collected pursuant to paragraph (1) shall be credited to a Department of State account, to be available without fiscal year limitation. Fees credited to that account shall be available only for the payment of expenses incurred for— “(i) contract personnel to assist in the evaluation of munitions control license applications, reduce processing time for license applications, and improve monitoring of compliance with the terms of licenses; and “(ii) the automation of munitions control functions and the processing of munitions control license applications, including the development, procurement, and utilization of computer equipment and related software. “(B) The authority of this paragraph may be exercised only to such extent or in such amounts as are provided in advance in appropriation Acts.”.