ADJUSTMENT OF THRESHOLD AMOUNTS FOR CONGRESSIONAL REVIEW PURPOSES.

SEC. 1405. ADJUSTMENT OF THRESHOLD AMOUNTS FOR CONGRESSIONAL REVIEW PURPOSES. (a) In General.—The Arms Export Control Act is amended— (1) in section 3(d) (22 U.S.C. 2753(d))— (A) in paragraphs (1) and (3)(A), by striking “The President may not” and inserting “Subject to paragraph (5), the President may not”; and 116 STAT. 1457 (B) by adding at the end of the following new paragraph: “(5) In the case of a transfer to a member country of the North Atlantic Treaty Organization (NATO) or Australia, Japan, or New Zealand that does not authorize a new sales territory that includes any country other than such countries, the limitations on consent of the President set forth in paragraphs (1) and (3)(A) shall apply only if the transfer is— “(A) a transfer of major defense equipment valued (in terms of its original acquisition cost) at $25,000,000 or more; or “(B) a transfer of defense articles or defense services valued (in terms of its original acquisition cost) at $100,000,000 or more).”; (2) in section 36 (22 U.S.C. 2776)— (A) in subsection (b)— (i) in paragraph (1), by striking “(1) In the case of” and inserting “(1) Subject to paragraph (6), in the case of”; (ii) in paragraph (5)(C), by striking “(C) If” and inserting “(C) Subject to paragraph (6), if”; and (iii) by adding at the end of the following new paragraph: “(6) The limitation in paragraph (1) and the requirement in paragraph (5)(C) shall apply in the case of a letter of offer to sell to a member country of the North Atlantic Treaty Organization (NATO) or Australia, Japan, or New Zealand that does not authorize a new sales territory that includes any country other than such countries only if the letter of offer involves— “(A) the sale of major defense equipment under this Act for, or the enhancement or upgrade of major defense equipment at a cost of, $25,000,000 or more, as the case may be; and “(B) the sale of defense articles or services for, or the enhancement or upgrade of defense articles or services at a cost of, $100,000,000 or more, as the case may be; or “(C) the sale of design and construction services for, or the enhancement or upgrade of design and construction services at a cost of, $300,000,000 or more, as the case may be.”; and (B) in subsection (c)— (i) in paragraph (1), by striking “(1) In the case of” and inserting “(1) Subject to paragraph (5), in the case of”; and (ii) by adding at the end the following new paragraph: “(5) In the case of an application by a person (other than with regard to a sale under section 21 or 22 of this Act) for a license for the export to a member country of the North Atlantic Treaty Organization (NATO) or Australia, Japan, or New Zealand that does not authorize a new sales territory that includes any country other than such countries, the limitations on the issuance of the license set forth in paragraph (1) shall apply only if the license is for export of— “(A) major defense equipment sold under a contract in the amount of $25,000,000 or more; or “(B) defense articles or defense services sold under a contract in the amount of $100,000,000 or more.”; (3) in section 63(a) (22 U.S.C. 2796b(a))— 116 STAT. 1458 (A) by striking “In the case of” and inserting “(1) Subject to paragraph (2), in the case of”; and (B) by adding at the end the following new paragraph: “(2) In the case of an agreement described in paragraph (1) that is entered into with a member country of the North Atlantic Treaty Organization (NATO) or Australia, Japan, or New Zealand, the limitations in paragraph (1) shall apply only if the agreement involves a lease or loan of— “(A) major defense equipment valued (in terms of its replacement cost less any depreciation in its value) at $25,000,000 or more; or “(B) defense articles valued (in terms of their replacement cost less any depreciation in their value) at $100,000,000 or more.”; and (4) in section 47 (22 U.S.C. 2794), as amended by section 1202(b) of this Act— (A) by striking “and” at the end of paragraph (9); (B) by striking the period at the end of paragraph (10) and inserting “; and”; and (C) by adding at the end the following new paragraph: “(11) ‘Sales territory’ means a country or group of countries to which a defense article or defense service is authorized to be reexported.”. (b) Licenses for Exports to India and Pakistan.—Section 9001(e) of the Department of Defense Appropriations Act, Fiscal Year 2000 (Public Law 106-79) is amended by adding at the end the following: “The application of these requirements shall be subject to the dollar amount thresholds specified in that section.”.