[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4246 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 4246

 To improve the performance of the defense trade controls functions of 
            the Department of State, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           November 15, 2007

  Mr. Sherman (for himself, Mr. Manzullo, Mr. Crowley, and Mr. Blunt) 
 introduced the following bill; which was referred to the Committee on 
                            Foreign Affairs

_______________________________________________________________________

                                 A BILL


 
 To improve the performance of the defense trade controls functions of 
            the Department of State, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Defense Trade 
Controls Performance Improvement Act of 2007''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title and table of contents.
Sec. 2. Findings.
Sec. 3. Strategic review and assessment of the United States export 
                            controls system.
Sec. 4. Performance requirements in the processing of applications for 
                            licenses to export or import items on the 
                            United States Munitions List.
Sec. 5. Requirement to ensure adequate staff and resources for the 
                            Directorate of Defense Trade Controls of 
                            the Department of State.
Sec. 6. Audit by Government Accountability Office.
Sec. 7. Increased flexibility for use of defense trade controls 
                            registration fees.
Sec. 8. Increased transparency through publication of licensing 
                            information.
Sec. 9. Control of items on Missile Technology Control Regime Annex.
Sec. 10. Waiver of licensing requirements for spare and replacement 
                            parts or components and related services of 
                            defense items for exports to NATO member 
                            states, Australia, Japan, and New Zealand.
Sec. 11. Availability of information on the status of license 
                            applications under chapter 3 of the Arms 
                            Export Control Act.
Sec. 12. Export controls of civil aircraft products.
Sec. 13. Definitions.
Sec. 14. Authorization of appropriations.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) In a time of international terrorist threats and a 
        dynamic global economic and security environment, United States 
        policy with regard to export controls is in urgent need of a 
        comprehensive review in order to ensure such controls are 
        protecting the national security and foreign policy interests 
        of the United States.
            (2) In January 2007, the Government Accountability Office 
        designated the effective identification and protection of 
        critical technologies as a government wide, high-risk area, 
        warranting a strategic re-examination of existing programs to 
        include those relating to arms export controls.
            (3) Federal Government agencies must review licenses for 
        the export of munitions and dual-use items in a thorough and 
        timely manner to ensure that the United States is able to help 
        its allies and to prevent nuclear and conventional weapons from 
        getting into the hands of our enemies.
            (4) A Government Accountability Office report of October 9, 
        2001 (GAO-02-120), documented ambiguous export control 
        jurisdiction affecting 25 percent of the items that the United 
        States Government agreed to control as part of its commitments 
        to the Missile Technology Control Regime. More than 6 years 
        later, the Departments of Commerce and State have not clearly 
        determined which department has jurisdiction over these items, 
        which increases the risk that these items will fall into the 
        wrong hands. During both the 108th and 109th Congresses, the 
        House of Representatives passed legislation mandating that the 
        Administration clarify this issue.
            (5) Both the staffing and funding that relate to the 
        Department of State's arms export control responsibilities have 
        not kept pace with the increased workload relating to such 
        responsibilities, especially over the last five years.
            (6) In the report to Congress required by the Conference 
        Report (Report 109-272) accompanying the bill, H.R. 2862 (the 
        Science, State, Justice, Commerce and Related Agencies 
        Appropriations Act, 2006; Public Law 109-108), the Department 
        of State concluded that--
                    (A) defense trade licensing has become much more 
                complex in recent years as a consequence of the 
                increasing globalization of the defense industry;
                    (B) the most important challenge to the Department 
                of State's licensing process has been the sheer growth 
                in volume of applicants for licenses and agreements, 
                without the corresponding increase in licensing 
                officers;
                    (C) fiscal year 2005 marked the third straight year 
                of roughly 8 percent annual increases in licensing 
                volume;
                    (D) although an 8 percent increase in workload 
                equates to a requirement for three additional licensing 
                officers per year, there has been no increase in 
                licensing officers during this period; and
                    (E) the increase in licensing volume without 
                corresponding increase in trained and experienced 
                personnel has resulted in delays and increased 
                processing times.
            (7) In 2006, the Department of State processed over three 
        times as many licensing applications as the Department of 
        Commerce with about a fifth of the staff of the Department of 
        Commerce.
            (8) On July 27, 2007, in testimony delivered to the 
        Subcommittee on Terrorism, Nonproliferation and Trade of the 
        House Committee on Foreign Affairs to examine the effectiveness 
        of the United States export control regime, the Government 
        Accountability Office found that--
                    (A) despite the existence of known vulnerabilities, 
                neither the Departments of Commerce and State have 
                conducted assessments to determine their overall 
                effectiveness in the area of arms export control;
                    (B) the initiatives of the Department of State to 
                facilitate defense trade by reducing the time it takes 
                to process export license applications have generally 
                not been successful; and
                    (C) the processing times of the Department of State 
                doubled over the period from 2002 to 2006.
            (9) At the end of 2006, the Department of State's backlog 
        or open license applications reached its highest level by 
        exceeding 10,000 cases. This resulted in major management and 
        personnel challenges for the Department of State's Directorate 
        of Defense Trade Controls.
            (10) Allowing a continuation of the status quo in resources 
        for defense trade licensing could ultimately harm the United 
        States defense industrial base. The 2007 Institute for Defense 
        Analysis report entitled ``Export Controls and the U.S. Defense 
        Industrial Base'' found that the large backlog and long 
        processing times for Department of State processed licenses led 
        to an impairment of United States firms in some sectors to 
        conduct global business relative to foreign competitors. 
        Additionally, the report found that United States commercial 
        firms have been reluctant to engage in research and development 
        activities for the Department of Defense because this raises 
        the future prospects that the products based on this research 
        and development, even if intrinsically commercial, will be 
        saddled by Department of State munitions controls due to the 
        link to that research.
            (11) According to the Department of State's fiscal year 
        2008 budget justification to Congress, commercial exports 
        licensed or approved under the Arms Export Control Act exceeded 
        $30,000,000,000, with nearly eighty percent of these items 
        exported to United States NATO allies and other major non-NATO 
        allies. The inability of Federal Government agencies to 
        properly assess and categorize United States manufactured goods 
        in a timely and consistent manner hinders legitimate trade and 
        exacerbates the United States merchandise trade deficit, which 
        reached $836,000,000,000 in 2006.
            (12) The failure on the part of the Departments of Commerce 
        and State to assess the overall effectiveness of their export 
        controls, combined with the lack of resources dedicated to 
        these efforts at the Department of State, raises serious 
        national and economic security concerns for the United States 
        that must be addressed expeditiously.

SEC. 3. STRATEGIC REVIEW AND ASSESSMENT OF THE UNITED STATES EXPORT 
              CONTROLS SYSTEM.

    (a) Assessment.--The Secretary of State, in coordination with the 
heads of other Federal agencies (including relevant law enforcement 
agencies), as appropriate, shall conduct a comprehensive and systematic 
review and assessment of the United States export controls system in 
the context of the strategic foreign policy objectives of the United 
States. Such review and assessment shall determine the overall 
effectiveness of the United States export controls system in order to, 
where appropriate, strengthen controls, improve efficiency, and reduce 
unnecessary redundancies across Federal Government agencies, through 
administrative actions, including regulations, and to formulate 
legislative proposals for new authorities that are needed.
    (b) Report.--Not later than one year after the date of the 
enactment of this Act, the Secretary of State shall submit to the 
appropriate congressional committees a report that contains the results 
of the review and assessment conducted under subsection (a).
    (c) Congressional Briefings.--At the time the report required by 
subsection (b) is submitted to the appropriate congressional committees 
in accordance with such subsection, the Secretary of State (or the 
Secretary's designee) shall brief the chairmen and ranking members of 
the appropriate congressional committees on the matters contained in 
the report.

SEC. 4. PERFORMANCE REQUIREMENTS IN THE PROCESSING OF APPLICATIONS FOR 
              LICENSES TO EXPORT OR IMPORT ITEMS ON THE UNITED STATES 
              MUNITIONS LIST.

    (a) Requirements.--The Secretary of State, acting through the 
Directorate of Defense Trade Controls of the Department of State, shall 
ensure that--
            (1) the average processing time for review and issuance or 
        denial of applications for licenses to export or import items 
        on the United States Munitions List that are not subject to the 
        requirements of subsection (b) or (c) of section 36 of the Arms 
        Export Control Act (22 U.S.C. 2776)--
                    (A) to countries that are member states of the 
                North Atlantic Treaty Organization (NATO), Australia, 
                Israel, Japan, and New Zealand is not more than 20 days 
                from receipt of application;
                    (B) to countries that are major non-NATO allies 
                (other than major non-NATO allies described in 
                subparagraph (A)) is not more than 30 days from receipt 
                of application; and
                    (C) to other eligible countries is not more than 60 
                days from receipt of application; and
            (2) prior to consultation with the appropriate 
        congressional committees, the average processing time for 
        review of applications for licenses to export or import items 
        on the United States Munitions List that are subject to the 
        requirements of subsection (b) or (c) of section 36 of the Arms 
        Export Control Act (22 U.S.C. 2776)--
                    (A) to countries that are member states of the 
                North Atlantic Treaty Organization (NATO), Australia, 
                Israel, Japan, and New Zealand is not more than 40 days 
                from receipt of application;
                    (B) to countries that are major non-NATO allies 
                (other than major non-NATO allies described in 
                subparagraph (A)) is not more than 60 days from receipt 
                of application; and
                    (C) to other eligible countries is not more than 
                120 days from receipt of application;
            (3) the average processing time for review and 
        determinations of commodity jurisdiction requests is not more 
        than 60 days;
            (4) the average processing time for review and 
        determinations of technical assistance agreements is not more 
        than 120 days;
            (5) at no time does the Directorate of Defense Trade 
        Controls have more than 2,000 open applications for licenses to 
        export or import items on the United States Munitions List; and
            (6) applications for licenses to export or import items on 
        the United States Munitions List that are returned without 
        action or denied are periodically reviewed by the Managing 
        Director of the Directorate of Defense Trade Controls to ensure 
        such decisions are consistent with both policy and regulatory 
        requirements of the Department of State.
    (b) Statement of Policy.--Congress states that it shall be the 
policy of the Directorate of Defense Trade Controls of the Department 
of State to ensure that, to the maximum extent practicable, the average 
processing time for review and issuance or denial of applications for 
licenses to export or import items on the United States Munitions List 
that are not subject to the requirements of subsection (b) or (c) of 
section 36 of the Arms Export Control Act (22 U.S.C. 2776) to United 
States NATO allies and major non-NATO allies in direct support of 
combat operations or peacekeeping or humanitarian operations with 
United States Armed Forces is not more than seven calendar days from 
receipt of application.
    (c) Determination of Average Processing Time.--The Secretary of 
State shall determine the average processing times established under 
subsections (a) and (b) on the basis of the volume of applications 
received by the Directorate of Defense Trade Controls during the 
immediately preceding 6-month period.
    (d) Congressional Briefings.--If, at the end of any month--
            (1) the average processing times for review and issuance or 
        denial of applications for licenses to export or import items 
        under any category of the United States Munitions List is in 
        excess of the times specified in subparagraphs (A), (B), and 
        (C) of paragraphs (1) and (2) of subsection (a),
            (2) the average processing time for review and 
        determinations of commodity jurisdiction requests is more than 
        60 days as described in subsection (a)(3), or
            (3) the Directorate of Defense Trade Controls has more than 
        2,000 open applications as described in subsection (a)(5),
the Secretary of State, acting through the Undersecretary for Arms 
Control and International Affairs, the Assistant Secretary for 
Political and Military Affairs, or the Deputy Assistant Secretary for 
Defense Trade Controls of the Department of State, shall brief the 
appropriate congressional committees on such matters and the corrective 
measures that the Directorate of Defense Trade Controls will take to 
comply with the requirements of subsection (a).
    (e) Congressional Report.--If the processing time for review and 
determination of a commodity jurisdiction request is more than 120 
days, the Secretary of State shall submit to the appropriate 
congressional committees a report that describes the request and the 
reasons for the extended duration of the processing time of the 
request.
    (f) Review and Assessment of Comprehensive Defense Trade Security 
Initiatives.--
            (1) Review and assessment.--The Secretary of State, in 
        coordination with the heads of other relevant Federal 
        departments and agencies, shall review each of the Department 
        of State's Comprehensive Defense Trade Security Initiative's 
        export authorizations described in paragraph (2) and assess the 
        effectiveness of each such authorization, including the extent 
        to which the authorization is utilized and is achieving the 
        initiative's stated objectives. This review should also assess 
        how well such authorizations are supporting defense cooperation 
        and interoperability with United States allies and partners by 
        permitting timely sharing of technology, maintenance 
        information, and spare parts and components for cooperative 
        defense programs.
            (2) Comprehensive defense trade security initiatives.--The 
        Comprehensive Defense Trade Security Initiative's export 
        authorizations referred to in paragraph (1) are the following:
                    (A) Major project authorization.--Comprehensive 
                authorization for a range of export activities between 
                a single registered United States exporter, as original 
                equipment manufacturer, and a foreign company or 
                government, including integration, codevelopment, or 
                production.
                    (B) Major program authorization.--Comprehensive 
                authorization for a range of export activities for a 
                principal registered contractor covering all aspects of 
                a commercial project with a foreign company or 
                government, including participation by multiple 
                subcontractors and exporters, such as a transaction for 
                a foreign government's purchase of a United States 
                major weapons system.
                    (C) Global project authorization.--Comprehensive 
                authorization for a United States exporter to carry out 
                broad range of activities associated with a cooperative 
                project pursuant to a government -to-government 
                agreement.
            (3) Report.--Not later than 180 days after the date of the 
        enactment of this Act, the Secretary of State shall submit to 
        the appropriate congressional committees a report that contains 
        the results of the review and assessment conducted under 
        paragraph (1) and recommendations based on the review and 
        assessment of any needed improvements.
    (g) Rule of Construction.--Nothing in this section shall be 
construed to prohibit the President or Congress from undertaking a 
thorough review of the national security and foreign policy 
implications of a proposed export or import of items on the United 
States Munitions List.

SEC. 5. REQUIREMENT TO ENSURE ADEQUATE STAFF AND RESOURCES FOR THE 
              DIRECTORATE OF DEFENSE TRADE CONTROLS OF THE DEPARTMENT 
              OF STATE.

    (a) Requirement.--The Secretary of State shall ensure that the 
Directorate of Defense Trade Controls of the Department of State has 
the necessary staff and resources to carry out this Act and the 
amendments made by this Act.
    (b) Minimum Number of Licensing Officers.--The Secretary of State 
shall ensure that the Directorate of Defense Trade Controls has not 
less than the following number of licensing officers for the following 
fiscal years:
            (1) 60 licensing officers for fiscal year 2009.
            (2) 70 licensing officers for fiscal year 2010.
            (3) An appropriate number of licensing officers so that the 
        ratio between the number of licensing officers to the estimated 
        number of applications for licenses to export or import items 
        on the United States Munitions List for fiscal year 2011 and 
        each subsequent fiscal year is not less than 1 to 1,250.
    (c) Minimum Number of Staff for Commodity Jurisdiction Requests.--
For each of the fiscal years 2009 through 2011, the Secretary of State 
shall ensure that the Directorate of Defense Trade Controls has not 
less than three individuals assigned to review and make determinations 
of commodity jurisdiction requests.

SEC. 6. AUDIT BY GOVERNMENT ACCOUNTABILITY OFFICE.

    (a) Audit.--Not later than end of each of the fiscal years 2009 
through 2011, the Comptroller General shall conduct an independent 
audit to determine whether or not the Department of State is meeting 
the requirements of sections 4 and 5 of this Act.
    (b) Report.--The Comptroller General shall submit to the 
appropriate congressional committees a report that contains the result 
of each audit conducted under subsection (a).

SEC. 7. INCREASED FLEXIBILITY FOR USE OF DEFENSE TRADE CONTROLS 
              REGISTRATION FEES.

    Section 45 of the State Department Basic Authorities Act of 1956 
(22 U.S.C. 2717) is amended--
            (1) in the first sentence, by striking ``Office'' and 
        inserting ``Directorate''; and
            (2) in the second sentence, to read as follows: ``Fees 
        credited to that account shall be available only for payment of 
        expenses incurred for management, licensing, compliance, and 
        policy activities of defense trade controls functions. In 
        allocating fees for payment of expenses described in the 
        preceding sentence, the Secretary of State shall accord the 
        highest priority to payment of expenses incurred for personnel 
        of the Directorate of Defense Trade Controls, including payment 
        of expenses incurred to meet the requirements of section 5 of 
        the Defense Trade Controls Performance Improvement Act of 2007 
        (relating to adequate staff and resources of the Directorate of 
        Defense Trade Controls).''.

SEC. 8. INCREASED TRANSPARENCY THROUGH PUBLICATION OF LICENSING 
              INFORMATION.

    (a) Status of Applications.--The Directorate of Defense Trade 
Controls shall establish a secure Internet-based system for tracking 
the progress of applications for licenses to export or import items on 
the United States Munitions List so that applicants can track the 
status of their applications.
    (b) Other Information.--Beginning not later than 180 days after the 
date of the enactment of this Act, the Secretary of State shall publish 
on the Internet website of the Department of State, and update as 
appropriate--
            (1) information concerning the average processing times, by 
        category, and the number of open applications, as required by 
        section 4 of this Act; and
            (2) information concerning staff and resources of the 
        Directorate of Defense Trade Controls of the Department of 
        State, including the number of licensing officers, as required 
        by section 5 of this Act.

SEC. 9. CONTROL OF ITEMS ON MISSILE TECHNOLOGY CONTROL REGIME ANNEX.

    (a) Control of Items on MTCR Annex.--The Secretary of State, in 
coordination with the Secretary of Commerce, the Secretary of Defense, 
and the heads of other federal agencies, as appropriate, shall ensure 
that all items on the Missile Technology Control Regime Annex are 
subject to stringent control by the Government of the United States 
pursuant to the International Traffic in Arms Regulations and the 
Export Administration Regulations.
    (b) Certification.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of State, in coordination with the 
Secretary of Commerce, the Secretary of Defense, and the heads of other 
federal agencies, as appropriate, shall submit to the appropriate 
congressional committees a report that contains--
            (1) a certification that the requirement of subsection (a) 
        has been met, or if the requirement has not been met, the 
        reasons therefore; and
            (2) a description of the updated coverage, if any, of the 
        regulations referred to in subsection (a) with respect to all 
        items on the MTCR Annex and an explanation of any areas of 
        overlap or omissions, if any, among the regulations.

SEC. 10. WAIVER OF LICENSING REQUIREMENTS FOR SPARE AND REPLACEMENT 
              PARTS OR COMPONENTS AND RELATED SERVICES OF DEFENSE ITEMS 
              FOR EXPORTS TO NATO MEMBER STATES, AUSTRALIA, JAPAN, AND 
              NEW ZEALAND.

    (a) In General.--Section 38(j) of the Arms Export Control Act (22 
U.S.C. 2778(j)) is amended--
            (1) by redesignating paragraph (4) as paragraph (5); and
            (2) by inserting after paragraph (3) the following new 
        paragraph:
            ``(4) Waiver of licensing requirements for spare and 
        replacement parts or components and related services of defense 
        items for exports to nato member states, australia, japan, and 
        new zealand.--
                    ``(A) Waiver.--(i) Subject to subparagraph (B), the 
                President shall waive the licensing requirements of 
                this Act for exports of spare and replacement parts or 
                components and related services of defense items 
                exported to NATO member states, Australia, Japan, and 
                New Zealand.
                    ``(ii) A waiver may be issued under this 
                subparagraph only if--
                            ``(I) the export of spare and replacement 
                        parts or components and related services--
                                    ``(aa) supports a defense item 
                                previously lawfully exported;
                                    ``(bb) is a one-for-one replacement 
                                of the spare and replacement parts or 
                                components and related services; and
                                    ``(cc) is limited to destruction or 
                                return of the replaced part or 
                                component and documentation of the 
                                process;
                            ``(II) the spare and replacement parts or 
                        components and related services will be 
                        transferred to a defense agency of a country 
                        described in clause (i) that is a previously 
                        approved end-user of the defense items and not 
                        to a distributor of such defense items;
                            ``(III) the spare and replacement parts or 
                        components and related services will not to be 
                        used to enhance, optimize, or otherwise upgrade 
                        the capability of the defense items; and
                            ``(IV) the spare and replacement parts or 
                        components and related services relate to a 
                        defense item that is owned, operated, and in 
                        the inventory of the armed forces a country 
                        described in clause (i).
                    ``(iii) For purposes of this paragraph, the term 
                `defense items' has the meaning given the term in 
                paragraph (5) of this subsection, except that such term 
                does not include items on the list referred to in 
                subsection (a)(1) of this section that are significant 
                military equipment or items on the Missile Technology 
                Control Regime Annex (as such term is defined in 
                section 11B(c)(4) of the Export Administration Act of 
                1979 (50 U.S.C. App. 2401b(c)(4))).
                    ``(B) Exception.--The President is authorized to 
                not issue a waiver under subparagraph (A) with respect 
                to a country described in such subparagraph if the 
                President determines that it is in the national 
                security interests of the United States to do so.
                    ``(C) Inapplicability to re-exports and re-
                transfers.--The provisions of this paragraph shall not 
                apply with respect to re-exports or re-transfers of 
                spare and replacement parts or components and related 
                services of defense items described in subparagraph 
                (A).
                    ``(D) Advance notification and disapproval 
                provisions.--Every person who seeks to export spare and 
                replacement parts or components and related services of 
                defense items described in subparagraph (A)--
                            ``(i) shall, not less than 5 days prior to 
                        the export of such parts, components, and 
                        services, notify the Secretary of State of the 
                        type, number, and monetary value of such parts, 
                        components, and services; and
                            ``(ii) may export such parts, components, 
                        and services only if the Secretary of State 
                        does not disapprove the export of such parts, 
                        components, and services during such 5-day 
                        period.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on October 1, 2008.

SEC. 11. AVAILABILITY OF INFORMATION ON THE STATUS OF LICENSE 
              APPLICATIONS UNDER CHAPTER 3 OF THE ARMS EXPORT CONTROL 
              ACT.

    Chapter 3 of the Arms Export Control Act (22 U.S.C. 2771 et seq.) 
is amended by inserting after section 38 the following new section:

``SEC. 38A. AVAILABILITY OF INFORMATION ON THE STATUS OF LICENSE 
              APPLICATIONS UNDER THIS CHAPTER.

    ``(a) Availability to Congress.--Not later than six months after 
the date of the enactment of the Defense Trade Controls Performance 
Improvement Act of 2007, the President shall make available to the 
congressional committees of jurisdiction the ability to access 
electronically, by secure means, current information on the status of 
all license applications required to be submitted under this chapter.
    ``(b) Matters To Be Included.--The information described in 
subsection (a) shall include, but is not limited to, the following:
            ``(1) The date on which each license is received by the 
        Department of State and becomes an `open application'.
            ``(2) The date on which the Directorate of Defense Trade 
        Controls makes a determination with respect to each license or 
        sends it out for interagency review, if required.
            ``(3) The date on which the interagency review process for 
        each license is completed, if such a review process is 
        required.
            ``(4) The date on which each license is sent to the Bureau 
        of Legislative Affairs of the Department State for action.
            ``(5) The date on which the Bureau of Legislative Affairs 
        of the Department of State begins consultations with the 
        congressional committees of jurisdiction with respect to each 
        license.
            ``(6) The date on which each license is formally sent to 
        the congressional committees of jurisdiction.
    ``(c) Availability to United States Exporters.--No later than 12 
months after the date of the enactment of the Defense Trade Controls 
Performance Improvement Act of 2007, the President shall make available 
to each United States exporter, through secure electronic means, the 
information described in subsection (b) with respect to each license 
that such exporter has submitted pursuant to this chapter.''.

SEC. 12. EXPORT CONTROLS OF CIVIL AIRCRAFT PRODUCTS.

    (a) Export Controls Under Jurisdiction of Department of Commerce.--
Subject to subsections (b), (c), and (d), any civil aircraft product 
that was included in the type design of a type certificate for a civil 
aircraft issued by the Federal Aviation Administration under part 21 of 
title 14, Code of Federal Regulations, on or before the date of the 
enactment of this Act, shall be subject to the exclusive jurisdiction 
of the Department of Commerce and shall not be subject to controls 
under section 38 of the Arms Export Control Act (22 U.S.C. 2778).
    (b) Revision To Export Controls.--Not later than 180 days after the 
date of the enactment of this Act, the Secretary of State and the 
Secretary of Commerce shall promulgate regulations and publish in the 
Federal Register amendments, as appropriate, to the Commerce Control 
List or the United States Munitions List, or both, specifying any civil 
aircraft product described in subsection (a) that requires additional 
or different export controls than the export controls described in such 
subsection.
    (c) Export Controls Under Jurisdiction of Department of State.--Any 
civil aircraft product that has a lethal military end-use, is currently 
subject to a license issued by the Department of State, is determined 
to be subject to the jurisdiction of the Department of State as a 
result of a commodity jurisdiction determination, or is an anti-missile 
defense item, including a special mission system installed on United 
States commercial aircraft for anti-missile defense, shall be subject 
to the jurisdiction of the Department of State unless determined 
otherwise by the Secretary of State.
    (d) Waiver.--The President shall waive the application of any 
provision of this section with respect to any civil aircraft product 
for which the President determines that exercising such waiver is in 
the national security interests of the United States.
    (e) Civil Aircraft Product Defined.--In this section, the term 
``civil aircraft product'' means--
            (1) a Class I product, Class II product, or Class III 
        product, as defined in section 21.321(b) of title 14, Code of 
        Federal Regulations (as in effect on June 1, 2007); and
            (2) any part, component, or related technical data of a 
        product described in paragraph (1).

SEC. 13. DEFINITIONS.

    In this Act:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means the Committee on 
        Foreign Affairs of the House of Representatives and the 
        Committee on Foreign Relations of the Senate.
            (2) Export administration regulations.--The term ``Export 
        Administration Regulations'' means those regulations contained 
        in sections 730 through 774 of title 15, Code of Federal 
        Regulations (or successor regulations).
            (3) Commerce control list.--The term ``Commerce Control 
        List'' means the list maintained under part 774 of title 15, 
        Code of Federal Regulations.
            (4) International traffic in arms regulations.--The term 
        ``International Traffic in Arms Regulations'' means those 
        regulations contained in sections 120 through 130 of title 22, 
        Code of Federal Regulations (or successor regulations).
            (5) Major non-nato ally.--The term ``major non-NATO ally'' 
        means a country that is designated in accordance with section 
        517 of the Foreign Assistance Act of 1961 (22 U.S.C. 2321k) as 
        a major non-NATO ally for purposes of the Foreign Assistance 
        Act of 1961 (22 U.S.C. 2151 et seq.) and the Arms Export 
        Control Act (22 U.S.C. 2751 et seq.).
            (6) Missile technology control regime; mtcr.--The term 
        ``Missile Technology Control Regime'' or ``MTCR'' has the 
        meaning given the term in section 11B(c)(2) of the Export 
        Administration Act of 1979 (50 U.S.C. App. 2401b(c)(2)).
            (7) Missile technology control regime annex; mtcr annex.--
        The term ``Missile Technology Control Regime Annex'' or ``MTCR 
        Annex'' has the meaning given the term in section 11B(c)(4) of 
        the Export Administration Act of 1979 (50 U.S.C. App. 
        2401b(c)(4)).
            (8) Technical assistance agreement.--The term ``technical 
        assistance agreement'' means an agreement described in section 
        120.22 of title 22, Code of Federal Regulations (or successor 
        regulations).
            (9) United states munitions list.--The term ``United States 
        Munitions List'' means the list referred to in section 38(a)(1) 
        of the Arms Export Control Act (22 U.S.C. 2778(a)(1)).

SEC. 14. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as may be 
necessary for fiscal year 2009 and each subsequent fiscal year to carry 
out this Act and the amendments made by this Act.
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