INTERNATIONAL COMPETITIVENESS.

SEC. 4303. INTERNATIONAL COMPETITIVENESS. (a) Additional Authority to Waive Research, Development, and Production Costs.— Subject to subsection (b), section 21(e)(2) of the Arms Export Control Act (22 U.S.C. 2761(e)(2)) is amended— (1) by inserting “(A)” after “(2)”; and (2) by adding at the end the following new subparagraphs: “(B) The President may waive the charge or charges which would otherwise be considered appropriate under paragraph (1)(B) for a particular sale if the President determines that— “(i) imposition of the charge or charges likely would result in the loss of the sale; or “(ii) in the case of a sale of major defense equipment that is also being procured for the use of the Armed Forces, the waiver of the charge or charges would (through a resulting 110 STAT. 659increase in the total quantity of the equipment purchased from the source of the equipment that causes a reduction in the unit cost of the equipment) result in a savings to the United States on the cost of the equipment procured for the use of the Armed Forces that substantially offsets the revenue foregone by reason of the waiver of the charge or charges. “(C) The President may waive, for particular sales of major defense eauipment, any increase in a charge or charges previously considered appropriate under paragraph (1)(B) if the increase results from a correction of an estimate (reasonable when made) of the production quantity base that was used for calculating the charge or charges for purposes of such paragraph.”. (b) Conditions.— Subsection (a) shall be effective only if— (1) the President, in the budget of the President for fiscal year 1997, proposes legislation that if enacted would be qualifying offsetting legislation; and (2) there is enacted qualifying offsetting legislation. (c) Effective Date.— If the conditions in subsection (b) are met, then the amendments made by subsection (a) shall take effect on the date of the enactment of qualifying offsetting legislation. (d) Definitions.— For purposes of this section: (1) The term “qualifying offsetting legislation” means legislation that includes provisions that— (A) offset fully the estimated revenues lost as a result of the amendments made by subsection (a) for each of the fiscal years 1997 through 2005; (B) expressly state that they are enacted for the purpose of the offset described in subparagraph (A); and (C) are included in full on the PayGo scorecard. (2) The term “PayGo scorecard” means the estimates that are made by the Director of the Congressional Budget Office and the Director of the Office of Management and Budget under section 252(d) of the Balanced Budget and Emergency Deficit Control Act of 1985.