113 HR 3470 : Taiwan Relations Act Affirmation and Naval Vessel Transfer Act of 2014
U.S. House of Representatives
2014-04-08
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.Short title and table of contents
(a)This Act may be cited as the Taiwan Relations Act Affirmation and Naval Vessel Transfer Act of 2014
.
(b)The table of contents for this Act is as follows:
Sec. 1. Short title and table of contents.
Title I—Affirmation of importance of Taiwan Relations Act and transfer of naval vessels to Taiwan
Sec. 101. Statement of policy relating to Taiwan Relations Act.
Sec. 102. Transfer of naval vessels to Taiwan.
Title II—Transfer of naval vessels to certain other foreign recipients
Sec. 201. Findings.
Sec. 202. Transfer of naval vessels to certain other foreign recipients.
Title III—Arms Export Control Act amendments
Sec. 301. Increase in congressional notification thresholds.
Sec. 302. Licensing of certain commerce-controlled items.
Sec. 303. Amendments relating to removal of major defense equipment from United States Munitions
List.
Sec. 304. Amendment to definition of security assistance
under the Foreign Assistance Act of 1961.
Sec. 305. Amendments to definitions of defense article
and defense service
under the Arms Export Control Act.
Sec. 306. Technical amendments.
Title IV—Application of certain provisions of Export Administration
Sec. 401. Application of certain provisions of Export Administration Act of 1979.
<enum>I</enum><header>Affirmation of importance of Taiwan Relations Act and transfer of naval vessels to Taiwan</header>
<section id="H3A5783A5E4AC4AE7A6C3AC94CBDFA3FF" section-type="subsequent-section"><enum>101.</enum><header>Statement of policy relating to Taiwan Relations Act</header>
<subsection id="HDA2F502059CF404C901B391E28260383"><enum>(a)</enum><header>Findings</header><text display-inline="yes-display-inline">Congress finds the following:</text>
<paragraph id="HEC86458563F14DE8AB5C9E5AA60D403D"><enum>(1)</enum><text display-inline="yes-display-inline">The Taiwan Relations Act has been instrumental in maintaining peace, security, and stability in the
Western Pacific since its enactment in 1979, and it is in the political,
security, and economic interests of the United States.</text>
</paragraph><paragraph id="H656926E594E7427A8E86563671C580C1"><enum>(2)</enum><text display-inline="yes-display-inline">The Taiwan Relations Act affirmed that the United States’ decision to establish a diplomatic
relationship with the People’s Republic of China was based on the
expectation that the future of Taiwan would be determined by peaceful
means.</text>
</paragraph><paragraph id="H1DE3D142DEE24789812F3C5D6838C9A6"><enum>(3)</enum><text display-inline="yes-display-inline">The Taiwan Relations Act also states that <quote>it is the policy of the United States to provide Taiwan with arms of a defensive character and to
maintain the capacity of the United States to resist any resort to force
or other forms of coercion that would jeopardize the security, or the
social or economic system, of the people on Taiwan</quote>.</text>
</paragraph><paragraph id="HF298BF80140C470A8E5B87384F4685D9"><enum>(4)</enum><text display-inline="yes-display-inline">The Taiwan Relations Act also states that <quote>it is the policy of the United States to preserve and promote extensive, close, and friendly
commercial, cultural, and other relations between the people of the United
States and the people on Taiwan, as well as the people on the China
mainland and all other peoples of the Western Pacific area</quote>.</text>
</paragraph><paragraph id="HCE2430C4D61649FFB92CD7B147C77AD1"><enum>(5)</enum><text display-inline="yes-display-inline">The relationship between the United States and Taiwan has been strengthened with—</text>
<subparagraph id="H369405646E0B4C8B8E89181AC12F0320"><enum>(A)</enum><text display-inline="yes-display-inline">Taiwan’s evolution into a free society and a full-fledged, multi-party democracy;</text>
</subparagraph><subparagraph id="H27AE92394575487EAACB74BEC13221D5"><enum>(B)</enum><text display-inline="yes-display-inline">the development of Taiwan’s robust market economy;</text>
</subparagraph><subparagraph id="H1AA34FF1D75F4ABC91377C9D54ABFED6"><enum>(C)</enum><text display-inline="yes-display-inline">Taiwan’s collaboration with the United States to combat terrorism, as demonstrated in part by its
participation in the Container Security Initiative; and</text>
</subparagraph><subparagraph id="H93F52B1E095F4D22A8FD3A5012D8D665"><enum>(D)</enum><text display-inline="yes-display-inline">the role Taiwan has played in addressing transnational and global challenges, including its active
engagement in humanitarian relief measures, public health endeavors,
environmental protection initiatives, and financial market stabilization
efforts.</text>
</subparagraph></paragraph><paragraph id="HC34FB063CF77494C83DD9DA76B159E32"><enum>(6)</enum><text display-inline="yes-display-inline">The United States is the third largest trading partner and the largest investor in Taiwan, while
Taiwan is the twelfth largest trading partner of the United States and the
eighth largest United States agricultural market.</text>
</paragraph><paragraph id="H24CD46CF29C142AC9ABF3B3A3415C38D"><enum>(7)</enum><text display-inline="yes-display-inline">Taiwan’s democracy has deepened with the second peaceful transfer of power from one political party
to another after the presidential election in March 2008.</text>
</paragraph><paragraph id="H89F1A61BCEC44AB69592C69F6AD72570"><enum>(8)</enum><text display-inline="yes-display-inline">The United States and Taiwan are united in our shared values in free elections, personal liberty,
and free enterprise.</text>
</paragraph></subsection><subsection id="HE22E5E035C2144959DFCE71E39C7EF14"><enum>(b)</enum><header>Statement of policy</header><text>Congress—</text>
<paragraph id="H12B794F9FFC341F0BCCF24563852B1B3"><enum>(1)</enum><text display-inline="yes-display-inline">reaffirms its unwavering commitment to the Taiwan Relations Act as the cornerstone of relations
between the United States and Taiwan;</text>
</paragraph><paragraph id="HA70BFC216835411C91F273748053B2A8"><enum>(2)</enum><text>reaffirms its support for Taiwan’s democratic institutions;</text>
</paragraph><paragraph id="H8E284AA9E50A44CC80C559654E7D0A4C"><enum>(3)</enum><text>reaffirms that peace in the Taiwan Strait should be maintained to the benefit of the Asia-Pacific
region;</text>
</paragraph><paragraph id="HE1FC121357A344FFB7BBE95F5FE00FCE"><enum>(4)</enum><text display-inline="yes-display-inline">supports the United States commitment to Taiwan's security in accord with the Taiwan Relations Act,
including Taiwan’s procurement of sophisticated weapons of a defensive
character, such as F–16 C/Ds aircraft and diesel electric submarines;</text>
</paragraph><paragraph id="H28FA26668AED4C029E547CB600C1AB70"><enum>(5)</enum><text>reaffirms its commitment to deepen United States-Taiwan trade and investment relations as well as
support for Taiwan’s inclusion in bilateral and regional trade agreements
at the appropriate time and under the right conditions in which
outstanding issues affecting United States exports are being addressed;
and</text>
</paragraph><paragraph id="H60A2DF03111742C3AC2F83E6CCC7D39D"><enum>(6)</enum><text>supports the strong and deepening relationship between the United States and Taiwan.</text>
</paragraph></subsection></section><section id="H276D1F4A9BCD476DA3F54B379B7BB0EE" section-type="subsequent-section"><enum>102.</enum><header>Transfer of naval vessels to Taiwan</header>
<subsection id="HE6E88BB100DF483996AAF3B4D489BBCB"><enum>(a)</enum><header>Transfer by sale</header><text>The President is authorized to transfer the OLIVER HAZARD PERRY class guided missile frigates USS
TAYLOR (FFG–50), USS GARY (FFG–51), USS CARR (FFG–52), and USS ELROD
(FFG–55) to the Taipei Economic and Cultural Representative Office of the
United States (which is the Taiwan instrumentality designated pursuant to
section 10(a) of the Taiwan Relations Act (<external-xref legal-doc="usc" parsable-cite="usc/22/3309">22 U.S.C. 3309(a)</external-xref>)) on a sale basis under section 21 of the Arms Export Control Act (<external-xref legal-doc="usc" parsable-cite="usc/22/2761">22 U.S.C. 2761</external-xref>).</text>
</subsection><subsection commented="no" id="HECE98AE89D644B66AE6488E4F3A4F38F"><enum>(b)</enum><header>Costs of transfers</header><text>Any expense incurred by the United States in connection with a transfer authorized by this section
shall be charged to the recipient notwithstanding section 516(e) of the
Foreign Assistance Act of 1961 (<external-xref legal-doc="usc" parsable-cite="usc/22/2321j">22 U.S.C. 2321j(e)</external-xref>).</text>
</subsection><subsection id="H1245AB573E4A46C78AD01EF7563C6B49"><enum>(c)</enum><header>Repair and refurbishment in united states shipyards</header><text>To the maximum extent practicable, the President shall require, as a condition of the transfer of a
vessel under this section, that the recipient to which the vessel is
transferred have such repair or refurbishment of the vessel as is needed,
before the vessel joins the naval forces of that recipient, performed at a
shipyard located in the United States, including a United States Navy
shipyard.</text>
</subsection><subsection id="HA8733ACD42CE4F77BF7CBAC319C7BA19"><enum>(d)</enum><header>Expiration of authority</header><text>The authority to transfer a vessel under this section shall expire at the end of the 3-year period
beginning on the date of the enactment of this section.</text>
</subsection></section><enum>II</enum><header>Transfer of naval vessels to certain other foreign recipients</header>
<section id="H7E1BD9CF3DD448598DE6E9559113B471"><enum>201.</enum><header>Findings</header>
<subsection id="H4E9E8166E3B94133A71F402DD410A66B"><enum>(a)</enum><header>Relating to Mexico</header><text display-inline="yes-display-inline">Congress finds the following:</text>
<paragraph id="HE4943F09668F4C27AD112F50F587D326"><enum>(1)</enum><text display-inline="yes-display-inline">The partnership between the United States and Mexico helps the economic and national security of
both countries, including in the area of energy.</text>
</paragraph><paragraph id="H6FCC69A0FA4C48D49D7E5A2065841D5B"><enum>(2)</enum><text display-inline="yes-display-inline">The United States and Mexico share a common goal of reducing the flow of narcotics and the
influence of transnational gangs in the Hemisphere.</text>
</paragraph><paragraph id="H795E91DCDAA649A3839972104B20AE74"><enum>(3)</enum><text>The partnership between the United States and Mexico helps the economic competitiveness and
national security of both countries.</text>
</paragraph><paragraph id="H44129D5BECFA4D29AC16C64B2F022AE7"><enum>(4)</enum><text display-inline="yes-display-inline">The economies of the United States and Mexico are increasingly interdependent, with bilateral
foreign direct investment increasing more than six-fold over the past two
decades.</text>
</paragraph><paragraph id="HAF2F52907D3343CA83CFC6144A319E71"><enum>(5)</enum><text>In 2012 alone, bilateral trade in goods and services between the United States and Mexico exceeded
$500,000,000,000.</text>
</paragraph><paragraph id="HB1FFD803033541A69B66295DD995FF65"><enum>(6)</enum><text>The transfer of naval vessels to Mexico authorized under section 202 supports the modernization
efforts of the Mexican Navy.</text>
</paragraph><paragraph id="H7997126E03504111BB8972C273DC4F87"><enum>(7)</enum><text>Such naval vessels are suitable to support Mexico’s offshore maritime surveillance, counter
trafficking, interdiction, and oil platform security.</text>
</paragraph><paragraph id="H6A167200E0BA4B6CA271521FAF98C294"><enum>(8)</enum><text>The transfer of such naval vessels will contribute to United States interests in promoting
increased maritime awareness to support security and protection of the
people of the United States and the people of Mexico.</text>
</paragraph></subsection><subsection id="H70A98653DAD64B4DB68107DD3D8C1851"><enum>(b)</enum><header>Relating to Thailand</header><text>Congress finds the following:</text>
<paragraph id="H0E52C23E732F4ECD9B13050B21B76885"><enum>(1)</enum><text display-inline="yes-display-inline">Thailand was the first treaty ally of the United States in the Asia-Pacific region and remains a
steadfast friend of the United States.</text>
</paragraph><paragraph id="H10CA040BD38544579B1038BE74AB3D13"><enum>(2)</enum><text>In December 2003, the United States designated Thailand as a major non-NATO ally, which improved
the security of both countries, particularly by facilitating joint
counterterrorism efforts.</text>
</paragraph><paragraph id="H8DBCCE4F841A4F9FB742DEDD8439C8A3"><enum>(3)</enum><text>For more than 30 years, Thailand has been the host country of Cobra Gold, the United States Pacific
Command’s annual multinational military training exercise, which is
designed to ensure regional peace and promote regional security
cooperation.</text>
</paragraph><paragraph id="H05C44356ABB74F929A0A0130FFC6008A"><enum>(4)</enum><text display-inline="yes-display-inline">The Royal Thai Navy has commanded Combined Task Force 151 (CTF 151) of the Combined Maritime
Forces, a multi-national naval partnership consisting of 30 nations
operating in and around the Gulf of Aden and off the eastern coast of
Somalia.</text>
</paragraph><paragraph id="H6A4D639139FF43F8A0A3414E4A566040"><enum>(5)</enum><text>With the assistance of the Royal Thai Navy’s Counter Piracy Task Group, CTF 151 is helping to
expressly disrupt and suppress piracy, protect all vessels in the region
and secure their free navigation.</text>
</paragraph><paragraph id="HF51B29157BDD45DFAF09D9671B988A38"><enum>(6)</enum><text>The Royal Thai Navy is also participating in the multilateral Malacca Straits patrols with other
regional partners to promote maritime safety and security.</text>
</paragraph><paragraph id="HBE3363A0BB4B422B8ACDFF32FD7AD274"><enum>(7)</enum><text display-inline="yes-display-inline">The transfer of naval vessels to Thailand authorized under section 202 will support enhanced
interoperability between the Royal Thai Navy and United States Navy
forces.</text>
</paragraph><paragraph id="HFE03957B687E43B28C3881DF2F1B1EF2"><enum>(8)</enum><text>The transfer of such naval vessels underscores the United States commitment to United States-Thai
relations and to peace and security in the Asia-Pacific region.</text>
</paragraph></subsection></section><section id="H2857EC39256F494EB4435AF47AF5FCA2"><enum>202.</enum><header>Transfer of naval vessels to certain other foreign recipients</header>
<subsection id="H0FA8F1C37EBA4098A375D8BA49DA81B3"><enum>(a)</enum><header>Transfers by grant</header><text>The President is authorized to transfer vessels to foreign countries on a grant basis under section
516 of the Foreign Assistance Act of 1961 (<external-xref legal-doc="usc" parsable-cite="usc/22/2321j">22 U.S.C. 2321j</external-xref>), as follows:</text>
<paragraph id="H3AFDAD97991545A195D86F396E50B119"><enum>(1)</enum><header>Mexico</header><text>To the Government of Mexico, the OLIVER HAZARD PERRY class guided missile frigates USS CURTS
(FFG–38) and USS MCCLUSKY (FFG–41).</text>
</paragraph><paragraph id="H9CD86747273A47419804864A8F665C70"><enum>(2)</enum><header>Thailand</header><text display-inline="yes-display-inline">To the Government of Thailand, the OLIVER HAZARD PERRY class guided missile frigates USS RENTZ
(FFG–46) and USS VANDEGRIFT (FFG–48).</text>
</paragraph></subsection><subsection commented="no" id="H232390477D904129930CC17F961D19FD"><enum>(b)</enum><header>Alternative transfer authority</header><text>Notwithstanding the authority provided in subsection (a) to transfer specific vessels to specific
countries, the President is authorized, subject to the same conditions
that would apply for such country under this section, to transfer any
vessel named in this section to any country named in this section such
that the total number of vessels transferred to such country does not
exceed the total number of vessels authorized for transfer to such country
by this section.</text>
</subsection><subsection id="HD7E5FA34DC524A03A37B2F9EB42E975F"><enum>(c)</enum><header>Grants not counted in annual total of transferred excess defense articles</header><text>The value of a vessel transferred to another country on a grant basis pursuant to authority
provided by subsection (a) or (b) shall not be counted against the
aggregate value of excess defense articles transferred in any fiscal year
under section 516 of the Foreign Assistance Act of 1961 (<external-xref legal-doc="usc" parsable-cite="usc/22/2321j">22 U.S.C. 2321j</external-xref>).</text>
</subsection><subsection commented="no" id="H0451962E7D474C549435B0C309300686"><enum>(d)</enum><header>Costs of transfers</header><text>Any expense incurred by the United States in connection with a transfer authorized by this section
shall be charged to the recipient notwithstanding section 516(e) of the
Foreign Assistance Act of 1961 (<external-xref legal-doc="usc" parsable-cite="usc/22/2321j">22 U.S.C. 2321j(e)</external-xref>).</text>
</subsection><subsection id="HE0D039505B724299B102D655C29D783E"><enum>(e)</enum><header>Repair and refurbishment in united states shipyards</header><text>To the maximum extent practicable, the President shall require, as a condition of the transfer of a
vessel under this section, that the recipient to which the vessel is
transferred have such repair or refurbishment of the vessel as is needed,
before the vessel joins the naval forces of that recipient, performed at a
shipyard located in the United States, including a United States Navy
shipyard.</text>
</subsection><subsection id="H1C57EEBF5E5149E29863EF4BE16CAB0A"><enum>(f)</enum><header>Expiration of authority</header><text>The authority to transfer a vessel under this section shall expire at the end of the 3-year period
beginning on the date of the enactment of this Act.</text>
</subsection></section><enum>III</enum><header>Arms Export Control Act amendments</header>
<section id="H0C4F07396A5A4F17AD4CD482BEB8D9B3"><enum>301.</enum><header>Increase in congressional notification thresholds</header>
<subsection id="HB5EF0436042249BBB4D319CCDA91DF6D"><enum>(a)</enum><header>Foreign military sales</header>
<paragraph id="H9FD786FD44314574B327B452797E9519"><enum>(1)</enum><header>In general</header><text>Section 36(b) of the Arms Export Control Act (<external-xref legal-doc="usc" parsable-cite="usc/22/2776">22 U.S.C. 2776(b)</external-xref>) is amended—</text>
<subparagraph id="HB76B7322FC4D4003BA1D45F792B140DC"><enum>(A)</enum><text>in paragraph (1)—</text>
<clause id="HA7E1D194D6174348AD3913AB6606B1E9"><enum>(i)</enum><text>in the matter preceding subparagraph (A)—</text>
<subclause id="HC7C6668DBC0F4EB7A5815FEB285B4523"><enum>(I)</enum><text>by striking <quote>$50,000,000</quote> and inserting <quote>$100,000,000</quote>;</text>
</subclause><subclause id="HCA4036CE408443D7A1C85ACAB82212CF"><enum>(II)</enum><text>by striking <quote>$200,000,000</quote> and inserting <quote>$300,000,000</quote>; and</text>
</subclause><subclause id="H78F2A6632BE04916AE58EF1902E48289"><enum>(III)</enum><text>by striking <quote>$14,000,000</quote> and inserting <quote>$25,000,000</quote>; and</text>
</subclause></clause><clause id="HDA75834A3BFE4737A44C183A69D1D234"><enum>(ii)</enum><text>in the matter following subparagraph (P)—</text>
<subclause id="HC3F18C753C0843E5923B5C0F600EBFB3"><enum>(I)</enum><text>by inserting <quote>of any defense articles or defense services under this Act for $200,000,000 or more, any design and
construction services for $300,000,000 or more, or any major defense
equipment for $75,000,000 or more,</quote> after <quote>The letter of offer shall not be issued, with respect to a proposed sale</quote>; and</text>
</subclause><subclause id="HD4B3E6CC8E46444AB8E7CFDAACF66324"><enum>(II)</enum><text>by inserting <quote>of any defense articles or services under this Act for $100,000,000 or more, any design and
construction services for $200,000,000 or more, or any major defense
equipment for $50,000,000 or more,</quote> after <quote>or with respect to a proposed sale</quote>; and</text>
</subclause></clause></subparagraph><subparagraph id="H1C0FE2FCA7F14B95B0385F472E48D40C"><enum>(B)</enum><text>in paragraph (6)—</text>
<clause id="H15632125DBF9471CB65C275A595AD618"><enum>(i)</enum><text>in subparagraph (A), by striking <quote>$25,000,000</quote> and inserting <quote>$75,000,000</quote>; and</text>
</clause><clause id="H16309BDD6BA94746B6597B3BBD3F0FB8"><enum>(ii)</enum><text>in subparagraph (B), by striking <quote>$100,000,000</quote> and inserting <quote>$200,000,000</quote>.</text>
</clause></subparagraph></paragraph></subsection><subsection id="H70286EB8BA444C4B914942EA65C66694"><enum>(b)</enum><header>Commercial sales</header><text>Section 36(c) of the Arms Export Control Act (<external-xref legal-doc="usc" parsable-cite="usc/22/2776">22 U.S.C. 2776(c)</external-xref>) is amended—</text>
<paragraph id="HCAF63705E34147BB83535855E71BA17F"><enum>(1)</enum><text>in paragraph (1)—</text>
<subparagraph id="H6B0207C8112A42FD90BF3DCE0CA33B6E"><enum>(A)</enum><text>by striking <quote>$14,000,000</quote> and inserting <quote>$25,000,000</quote>; and</text>
</subparagraph><subparagraph id="H31ABF7E32C714153AD68ADCC8B8B4910"><enum>(B)</enum><text>by striking <quote>$50,000,000</quote> and inserting <quote>$100,000,000</quote>; and</text>
</subparagraph></paragraph><paragraph id="HCEADCA0ECC504110892067276951B56A"><enum>(2)</enum><text>in paragraph (5)—</text>
<subparagraph id="H765245A9CF8A4873B4B503B7D467AD3A"><enum>(A)</enum><text>in subparagraph (A), by striking <quote>$25,000,000</quote> and inserting <quote>$75,000,000</quote>; and</text>
</subparagraph><subparagraph id="H0B9A75801BCA461F8F967523CB01B769"><enum>(B)</enum><text>in subparagraph (B), by striking <quote>$100,000,000</quote> and inserting <quote>$200,000,000</quote>.</text>
</subparagraph></paragraph></subsection></section><section id="H3FDA867779314FDEB4B2E8BB16E8E1E7"><enum>302.</enum><header>Licensing of certain commerce-controlled items</header><text display-inline="no-display-inline">Section 38 of the Arms Export Control Act (<external-xref legal-doc="usc" parsable-cite="usc/22/2778">22 U.S.C. 2778</external-xref>) is amended by adding at the end the following new subsection:</text>
<quoted-block id="H89F349FFC4A64DAAA28D9FCE44CD5CDF" style="OLC">
<subsection id="H4A6B4A0CBC2B483DA65F36BA24C0D077"><enum>(k)</enum><header>Licensing of certain commerce-Controlled items</header>
<paragraph id="H862BDEB947674B3FB70819FBA56EAEA9"><enum>(1)</enum><header>In general</header><text>A license or other approval from the Department of State granted in accordance with this section
may also authorize the export of items subject to the Export
Administration Regulations if such items are to be used in or with defense
articles controlled on the United States Munitions List.</text>
</paragraph><paragraph id="H2A223769D7F44B059B788D7EA58712BF"><enum>(2)</enum><header>Other requirements</header><text>The following requirements shall apply with respect to a license or other approval to authorize the
export of items subject to the Export Administration Regulations under
paragraph (1):</text>
<subparagraph id="H47F8A069727C4AD583938A567E2C58A2"><enum>(A)</enum><text>Separate approval from the Department of Commerce shall not be required for such items if such
items are approved for export under a Department of State license or other
approval.</text>
</subparagraph><subparagraph id="HFB0680B1BDA34B1F8E980769D095F70E"><enum>(B)</enum><text>Such items subject to the Export Administration Regulations that are exported pursuant to a
Department of State license or other approval would remain under the
jurisdiction of the Department of Commerce with respect to any subsequent
transactions.</text>
</subparagraph><subparagraph id="H197C0448D69E46A19C1181F53CE9E015"><enum>(C)</enum><text>The inclusion of the term <term>subject to the EAR</term> or any similar term on a Department of State license or approval shall not affect the jurisdiction
with respect to such items.</text>
</subparagraph></paragraph><paragraph id="H1C216B4D9284459EB03758B9A833A860"><enum>(3)</enum><header>Definition</header><text>In this subsection, the term <term>Export Administration Regulations</term> means—</text>
<subparagraph id="HDEAC54BD85894709A6186E342BFADD20"><enum>(A)</enum><text>the Export Administration Regulations as maintained and amended under the authority of the
International Emergency Economic Powers Act (<external-xref legal-doc="usc" parsable-cite="usc/50/1701">50 U.S.C. 1701 et seq.</external-xref>); or</text>
</subparagraph><subparagraph id="HF6AAE61852B849D4A258B97B0A06342F"><enum>(B)</enum><text>any successor regulations.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HA73CA6B07B3F4126BF7A453B6EA6DBEB"><enum>303.</enum><header>Amendments relating to removal of major defense equipment from United States Munitions List</header>
<subsection id="H30EF1B8CC79541D28D6E3640BD19ED8D"><enum>(a)</enum><header>Requirements for removal of major defense equipment from united states munitions list</header><text>Section 38(f) of the Arms Export Control Act (<external-xref legal-doc="usc" parsable-cite="usc/22/2778">22 U.S.C. 2778(f)</external-xref>) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H70910D7F31E14C11A587FC9905518668" style="OLC">
<paragraph id="HBDC35153429E428DAC24D94DAD12741E"><enum>(5)</enum>
<subparagraph commented="no" display-inline="yes-display-inline" id="H1C52E818E4AD49BBA5C55EBEB648DF6A"><enum>(A)</enum><text display-inline="yes-display-inline">Except as provided in subparagraph (B), the President shall take such actions as may be necessary
to require that, at the time of export or reexport of any major defense
equipment listed on the 600 series of the Commerce Control List contained
in Supplement No. 1 to part 774 of subtitle B of title 15, Code of Federal
Regulations, the major defense equipment will not be subsequently modified
so as to transform such major defense equipment into a defense article.</text>
</subparagraph><subparagraph id="H250D415B53CD480BA22AA86112E1000A" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">The President may authorize the transformation of any major defense equipment described in
subparagraph (A) into a defense article if the President—</text>
<clause id="HA32A0DA283F14BF18DD0C227EC6685D6"><enum>(i)</enum><text>determines that such transformation is appropriate and in the national interests of the United
States; and</text>
</clause><clause id="H79A403BA7EF34D8090D50EEC2B00EACE"><enum>(ii)</enum><text>provides notice of such transformation to the chairman of the Committee on Foreign Affairs of the
House of Representatives and the chairman of the Committee on Foreign
Relations of the Senate consistent with the notification requirements of
section 36(b)(5)(A) of this Act.</text>
</clause></subparagraph><subparagraph id="H6DC8EDB23971422D94132E5FF8BB4C25" indent="up1"><enum>(C)</enum><text display-inline="yes-display-inline">In this paragraph, the term <term>defense article</term> means an item designated by the President pursuant to subsection (a)(1).</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HC8775491D13B4033BBD34544472D7958"><enum>(b)</enum><header>Notification and reporting requirements for major defense equipment removed from united states
munitions list</header><text>Section 38(f) of the Arms Export Control Act (<external-xref legal-doc="usc" parsable-cite="usc/22/2778">22 U.S.C. 2778(f)</external-xref>), as amended by this section, is further amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H6B78E7277E044FCCBDFE5A8CD148B732" style="OLC">
<paragraph id="HAC38FD7F152F4470B13B4388646B84E9"><enum>(6)</enum><text>The President shall ensure that any major defense equipment that is listed on the 600 series of the
Commerce Control List contained in Supplement No. 1 to part 774 of
subtitle B of title 15, Code of Federal Regulations, shall continue to be
subject to the notification and reporting requirements of the following
provisions of law:</text>
<subparagraph id="H3327351BB8304F828D6387D0FFD2C754"><enum>(A)</enum><text>Section 516(f) of the Foreign Assistance Act of 1961 (<external-xref legal-doc="usc" parsable-cite="usc/22/2321j">22 U.S.C. 2321j(f)</external-xref>).</text>
</subparagraph><subparagraph id="HB533A1FC53564003A28753D3EFD4BFD6"><enum>(B)</enum><text>Section 655 of the Foreign Assistance Act of 1961 (<external-xref legal-doc="usc" parsable-cite="usc/22/2415">22 U.S.C. 2415</external-xref>).</text>
</subparagraph><subparagraph id="HCA5AFCBCE2E04147B8C7D13C6762245C"><enum>(C)</enum><text>Section 3(d)(3)(A) of this Act.</text>
</subparagraph><subparagraph id="HB971074403F744AEA0977D3E3A0FA06B"><enum>(D)</enum><text>Section 25 of this Act.</text>
</subparagraph><subparagraph id="HED49B7700431493A9A7B46584E039228"><enum>(E)</enum><text>Section 36(b), (c), and (d) of this Act.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="HF5695DB6E4554CEABB7D79A4B1AEF4E2"><enum>304.</enum><header>Amendment to definition of <quote>security assistance</quote> under the Foreign Assistance Act of 1961</header><text display-inline="no-display-inline">Section 502B(d) of the Foreign Assistance Act of 1961 (<external-xref legal-doc="usc" parsable-cite="usc/22/2304">22 U.S.C. 2304(d)</external-xref>) is amended—</text>
<paragraph id="H2E684207F54849D0AA12DAA43AF5E7D3"><enum>(1)</enum><text>in paragraph (1), by striking <quote>and</quote> at the end; and</text>
</paragraph><paragraph id="H44F1B9A541254B0E8F7D98F3BE18A4F4"><enum>(2)</enum><text>in paragraph (2)(C) to read as follows:</text>
<quoted-block id="H806ECE68EA164ED281519D0969C039C9" style="OLC">
<subparagraph id="HC91FC0862952418ABC4BA91AB01A2057"><enum>(C)</enum><text>any license in effect with respect to the export to or for the armed forces, police, intelligence,
or other internal security forces of a foreign country of—</text>
<clause id="H38060292A3B946E79F4856ACC45D3BB5"><enum>(i)</enum><text>defense articles or defense services under section 38 of the Armed Export Control Act; or</text>
</clause><clause id="H12D59C4139D7445AB1FB8A6DDE6CE82B"><enum>(ii)</enum><text>items listed under the 600 series of the Commerce Control List contained in Supplement No. 1 to
part 774 of subtitle B of title 15, Code of Federal Regulations;</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="H70EADE92EBBB465985944ED2A1C2FFA9"><enum>305.</enum><header>Amendments to definitions of <quote>defense article</quote> and <quote>defense service</quote> under the Arms Export Control Act</header><text display-inline="no-display-inline">Section 47 of the Arms Export Control Act (<external-xref legal-doc="usc" parsable-cite="usc/22/2794">22 U.S.C. 2794</external-xref>) is amended—</text>
<paragraph id="H8D55442473854BDBB1F98BC80FE5C974"><enum>(1)</enum><text>in the matter preceding subparagraph (A) of paragraph (3), by striking <quote>includes</quote> and inserting <quote>means, with respect to a sale or transfer by the United States under the authority of this Act or
any other foreign assistance or sales program of the United States</quote>; and</text>
</paragraph><paragraph id="H6D7B8022D911488D86CDEC15BDE88C59"><enum>(2)</enum><text>in paragraph (4), by striking <quote>includes</quote> and inserting <quote>means, with respect to a sale or transfer by the United States under the authority of this Act or
any other foreign assistance or sales program of the United States,</quote>.</text>
</paragraph></section><section commented="no" id="HF93C58389195451CB499DABAE265C18E"><enum>306.</enum><header>Technical amendments</header>
<subsection id="H8FFB6A287C5F4843B0E9C16698F3E35C"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The Arms Export Control Act (<external-xref legal-doc="usc" parsable-cite="usc/22/2751">22 U.S.C. 2751 et seq.</external-xref>) is amended—</text>
<paragraph id="H0900ACC8491242C0A9D760902491478D"><enum>(1)</enum><text>in sections 3(a), 3(d)(1), 3(d)(3)(A), 3(e), 5(c), 6, 21(g), 36(a), 36(b)(1), 36(b)(5)(C),
36(c)(1), 36(f), 38(f)(1), 40(f)(1), 40(g)(2)(B), 101(b), and 102(a)(2),
by striking <quote>the Speaker of the House of Representatives and</quote> each place it appears and inserting <quote>the Speaker of the House of Representatives, the Committee on Foreign Affairs of the House of
Representatives, and</quote>;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H152F34657EBC4E09909E8376F18B8875"><enum>(2)</enum><text>in section 21(i)(1) by inserting after <quote>the Speaker of the House of Representatives</quote> the following <quote>, the Committees on Foreign Affairs and Armed Services of the House of Representatives,</quote>;</text>
</paragraph><paragraph commented="no" id="HABE210B430C44533857C600E0319814D"><enum>(3)</enum><text display-inline="yes-display-inline">in sections 25(e), 38(f)(2), 38(j)(3), and 38(j)(4)(B), by striking <quote>International Relations</quote> each place it appears and inserting <quote>Foreign Affairs</quote>;</text>
</paragraph><paragraph commented="no" id="HCB8E47B7143B4ED5A88893AA7A4E9BF7"><enum>(4)</enum><text>in sections 27(f) and 62(a), by inserting after <quote>the Speaker of the House of Representatives,</quote> each place it appears the following: <quote>the Committee on Foreign Affairs of the House of Representatives,</quote>; and</text>
</paragraph><paragraph commented="no" id="H2B3ED9E3655C417EB90A0F7DDF2C1560"><enum>(5)</enum><text>in section 73(e)(2), by striking <quote>the Committee on National Security and the Committee on International Relations of the House of
Representatives</quote> and inserting <quote>the Committee on Armed Services and the Committee on Foreign Affairs of the House of
Representatives</quote>.</text>
</paragraph></subsection><subsection id="HCDF0320CF0134B9D97DAE1BF4B314425"><enum>(b)</enum><header>Other technical amendments</header>
<paragraph id="H9DEA63A9F68E4E10BDA517E6EA469D06"><enum>(1)</enum><header>Arms Export Control Act</header><text display-inline="yes-display-inline">The Arms Export Control Act (<external-xref legal-doc="usc" parsable-cite="usc/22/2751">22 U.S.C. 2751 et seq.</external-xref>), as amended by subsection (a), is further amended—</text>
<subparagraph id="H16977F61877D4BB9B69A1BFA78C292DA"><enum>(A)</enum><text display-inline="yes-display-inline">in section 38—</text>
<clause id="HCCE02258363446BDAA6A2F058FEEE8C7"><enum>(i)</enum><text>in subsection (b)(1), by redesignating the second subparagraph (B) (as added by section 1255(b) of
the Foreign Relations Authorization Act, Fiscal Years 1988 and 1989 (<external-xref legal-doc="public-law" parsable-cite="pl/100/204">Public Law 100–204</external-xref>; 101 Stat. 1431)) as subparagraph (C);</text>
</clause><clause id="H87232FE2FB4340A4BFB05243E0FEFBC3"><enum>(ii)</enum><text display-inline="yes-display-inline">in subsection (g)(1)(A)—</text>
<subclause id="H49F5FFF0AB6F4AEEAAA3AA2B5BBA5EDA"><enum>(I)</enum><text>in clause (xi), by striking <quote>; or</quote> and inserting <quote>, or</quote>; and</text>
</subclause><subclause id="H7F9C9D7D58E545958DFEF5C04D2047E0"><enum>(II)</enum><text>in clause (xii)—</text>
<item id="H98907C7FBA484139956141DEFB6DF86A"><enum>(aa)</enum><text>by striking <quote>section</quote> and inserting <quote>sections</quote>; and</text>
</item><item id="H4DA38B81ADD64FF4BEE243E422DB7137"><enum>(bb)</enum><text>by striking <quote>(<external-xref legal-doc="usc" parsable-cite="usc/18/175b">18 U.S.C. 175b</external-xref>)</quote> and inserting <quote>(<external-xref legal-doc="usc" parsable-cite="usc/18/175c">18 U.S.C. 175c</external-xref>)</quote>; and</text>
</item></subclause></clause><clause id="H7DC112815F5B4ABA91C551CB7AF76F11"><enum>(iii)</enum><text>in subsection (j)(2), in the matter preceding subparagraph (A), by inserting <quote>in</quote> after <quote>to</quote>; and</text>
</clause></subparagraph><subparagraph id="HEF0BF89F16A041BBBE912F8D37981D4D"><enum>(B)</enum><text>in section 47(2), in the matter preceding subparagraph (A), by striking <quote>sec. 21(a),,</quote> and inserting <quote>section 21(a),</quote>.</text>
</subparagraph></paragraph><paragraph id="H48F2AC32CC3D41CDB12F298A6B2A3F27"><enum>(2)</enum><header>Foreign Assistance Act of 1961</header><text display-inline="yes-display-inline">Section 502B of the Foreign Assistance Act of 1961 (<external-xref legal-doc="usc" parsable-cite="usc/22/2304">22 U.S.C. 2304</external-xref>) is amended—</text>
<subparagraph id="HBB4C741C42F248439750CEE0A066E8BF"><enum>(A)</enum><text display-inline="yes-display-inline">in subsection (b), by striking <quote>Wherever applicable, a description</quote> and inserting <quote>Wherever applicable, such report shall include a description</quote>; and</text>
</subparagraph><subparagraph id="H289752C5807740DAAE20790B61BBB625"><enum>(B)</enum><text>in subsection (d)(2)(B), by striking <quote>credits</quote> and inserting <quote>credits)</quote>.</text>
</subparagraph></paragraph></subsection></section><enum>IV</enum><header>Application of certain provisions of Export Administration</header>
<section id="HF1314680F3A44BAE8BFEB59FFD58BE18" section-type="subsequent-section"><enum>401.</enum><header>Application of certain provisions of Export Administration Act of 1979</header>
<subsection id="H3E308D90171945129B859F912A93F022"><enum>(a)</enum><header>Protection of information</header><text display-inline="yes-display-inline">Section 12(c) of the Export Administration Act of 1979 (<external-xref legal-doc="usc-appendix" parsable-cite="usc-appendix/50/2411">50 U.S.C. App. 2411(c)</external-xref>) has been in effect from August 20, 2001, and continues in effect on and after the date of the
enactment of this Act, pursuant to the International Emergency Economic
Powers Act (<external-xref legal-doc="usc" parsable-cite="usc/50/1701">50 U.S.C. 1701 et seq.</external-xref>) and notwithstanding section 20 of the Export Administration Act of 1979 (<external-xref legal-doc="usc-appendix" parsable-cite="usc-appendix/50/2419">50 U.S.C. App. 2419</external-xref>). Section 12(c)(1) of the Export Administration Act of 1979 is a statute covered by <external-xref legal-doc="usc" parsable-cite="usc/5/552">section 552(b)(3)</external-xref> of title 5, United States Code.</text>
</subsection><subsection id="H12B938EC5BCD45799F7D291FEC89C102"><enum>(b)</enum><header>Termination date</header><text display-inline="yes-display-inline">Subsection (a) terminates at the end of the 4-year period beginning on the date of the enactment of
this Act.</text>
</subsection></section>
Passed the House of Representatives April 7, 2014.Karen L. Haas,Clerk.