REQUIREMENTS RELATING TO COUNTRY EXEMPTIONS FOR LICENSING OF DEFENSE ITEMS FOR EXPORT TO FOREIGN COUNTRIES.

SEC. 102. REQUIREMENTS RELATING TO COUNTRY EXEMPTIONS FOR LICENSING OF DEFENSE ITEMS FOR EXPORT TO FOREIGN COUNTRIES. (a) Requirements of Exemption.—Section 38 of the Arms Export Control Act (22 U.S.C. 2778) is amended by adding at the end the following: “(j) Requirements Relating to Country Exemptions for Licensing of Defense Items for Export to Foreign Countries.—114 STAT. 847 “(1) Requirement for bilateral agreement.— “(A) In general.—The President may utilize the regulatory or other authority pursuant to this Act to exempt a foreign country from the licensing requirements of this Act with respect to exports of defense items only if the United States Government has concluded a binding bilateral agreement with the foreign country. Such agreement shall— “(i) meet the requirements set forth in paragraph (2); and “(ii) be implemented by the United States and the foreign country in a manner that is legally-binding under their domestic laws. “(B) Exception.—The requirement to conclude a bilateral agreement in accordance with subparagraph (A) shall not apply with respect to an exemption for Canada from the licensing requirements of this Act for the export of defense items. “(2) Requirements of bilateral agreement.—A bilateral agreement referred to paragraph (1)— “(A) shall, at a minimum, require the foreign country, as necessary, to revise its policies and practices, and promulgate or enact necessary modifications to its laws and regulations to establish an export control regime that is at least comparable to United States law, regulation, and policy requiring— “(i) conditions on the handling of all United States-origin defense items exported to the foreign country, including prior written United States Government approval for any reexports to third countries; “(ii) end-use and retransfer control commitments, including securing binding end-use and retransfer control commitments from all end-users, including such documentation as is needed in order to ensure compliance and enforcement, with respect to such United States-origin defense items; “(iii) establishment of a procedure comparable to a ‘watchlist’ (if such a watchlist does not exist) and full cooperation with United States Government law enforcement agencies to allow for sharing of export and import documentation and background information on foreign businesses and individuals employed by or otherwise connected to those businesses; and “(iv) establishment of a list of controlled defense items to ensure coverage of those items to be exported under the exemption; and “(B) should, at a minimum, require the foreign country, as necessary, to revise its policies and practices, and promulgate or enact necessary modifications to its laws and regulations to establish an export control regime that is at least comparable to United States law, regulation, and policy regarding— “(i) controls on the export of tangible or intangible technology, including via fax, phone, and electronic media;114 STAT. 848 “(ii) appropriate controls on unclassified information relating to defense items exported to foreign nationals; “(iii) controls on international arms trafficking and brokering; “(iv) cooperation with United States Government agencies, including intelligence agencies, to combat efforts by third countries to acquire defense items, the export of which to such countries would not be authorized pursuant to the export control regimes of the foreign country and the United States; and “(v) violations of export control laws, and penalties for such violations. “(3) Advance Certification.—Not less than 30 days before authorizing an exemption for a foreign country from the licensing requirements of this Act for the export of defense items, the President shall transmit to the Committee on International Relations of the House of Representatives and the Committee on Foreign Relations of the Senate a certification that— “(A) the United States has entered into a bilateral agreement with that foreign country satisfying all requirements set forth in paragraph (2); “(B) the foreign country has promulgated or enacted all necessary modifications to its laws and regulations to comply with its obligations under the bilateral agreement with the United States; and “(C) the appropriate congressional committees will continue to receive notifications pursuant to the authorities, procedures, and practices of section 36 of this Act for defense exports to a foreign country to which that section would apply and without regard to any form of defense export licensing exemption otherwise available for that country. “(4) Definitions.—In this section: “(A) Defense items.—The term ‘defense items’ means defense articles, defense services, and related technical data. “(B) Appropriate congressional committees.—The term ‘appropriate congressional committees’ means— “(i) the Committee on International Relations and the Committee on Appropriations of the House of Representatives; and “(ii) the Committee on Foreign Relations and the Committee on Appropriations of the Senate.”. (b) Notification of Exemption.—Section 38(f) of the Arms Export Control Act (22 U.S.C. 2778(f)) is amended— (1) by inserting “(1)” after “(f)”; and (2) by adding at the end the following: “(2) The President may not authorize an exemption for a foreign country from the licensing requirements of this Act for the export of defense items under subsection (j) or any other provision of this Act until 30 days after the date on which the President has transmitted to the Committee on International Relations of the House of Representatives and the Committee on Foreign Relations of the Senate a notification that includes—114 STAT. 849 “(A) a description of the scope of the exemption, including a detailed summary of the defense articles, defense services, and related technical data covered by the exemption; and “(B) a determination by the Attorney General that the bilateral agreement concluded under subsection (j) requires the compilation and maintenance of sufficient documentation relating to the export of United States defense articles, defense services, and related technical data to facilitate law enforcement efforts to detect, prevent, and prosecute criminal violations of any provision of this Act, including the efforts on the part of countries and factions engaged in international terrorism to illicitly acquire sophisticated United States defense items. “(3) Paragraph (2) shall not apply with respect to an exemption for Canada from the licensing requirements of this Act for the export of defense items.”. (c) Exports of Commercial Communications Satellites.— (1) Amendment of the arms export control act.—Section 36(c)(2) of the Arms Export Control Act (22 U.S.C. 2776(c)(2)) is amended— (A) by striking “and” at the end of subparagraph (A); (B) by redesignating subparagraph (B) as subparagraph (C); and (C) by inserting after subparagraph (A) the following: “(B) in the case of a license for an export of a commercial communications satellite for launch from, and by nationals of, the Russian Federation, Ukraine, or Kazakhstan, shall not be issued until at least 15 calendar days after the Congress receives such certification, and shall not be issued then if the Congress, within that 15-day period, enacts a joint resolution prohibiting the proposed export; and”. (2) Sense of the Congress.—It is the sense of the Congress that the appropriate committees of Congress and the appropriate agencies of the United States Government should review the commodity jurisdiction of United States commercial communications satellites. (d) Sense of the Congress on Submission to the Senate of Certain Agreements as Treaties.—It is the sense of the Congress that, prior to amending the International Traffic in Arms Regulations, the Secretary of State should consult with the appropriate committees of Congress for the purpose of determining whether certain agreements regarding defense trade with the United Kingdom and Australia should be submitted to the Senate as treaties.