[Congressional Record Volume 154, Number 80 (Thursday, May 15, 2008)]
[Extensions of Remarks]
[Pages E944-E945]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 AMENDED SECURITY ASSISTANCE AND ARMS EXPORT CONTROL REFORM ACT OF 2008

                                 ______
                                 

                               speech of

                        HON. DONALD A. MANZULLO

                              of illinois

                    in the house of representatives

                         Tuesday, May 13, 2008

  Mr. MANZULLO. Mr. Speaker, today is a great day. When others talk 
about a dysfunctional Congress or claim that members of different 
political parties can't work together, they ought to look at this bill. 
Today, the House votes on the Security Assistance and Arms Export 
Control Reform Act of 2008 (H.R. 5196) that we debated on Tuesday. 
Subtitle A of Title I of H.R. 5916 has been in the making for the past 
18 months when I first learned of the complaints from industry 
regarding the immense backlog of defense export license applications at 
the State Department. The Executive Branch, both sides of the House 
Foreign Affairs Committee, industry, and Non-Governmental 
Organizations, NGOs, interested in non-proliferation all had input into 
this legislation.
  Last year, I joined with Representatives Joe Crowley of New York and 
Earl Blumenauer of Oregon to establish the Congressional Export Control 
Working Group. We educated Members of Congress and their staff on the 
importance of export control modernization efforts to both our national 
and economic security.
  Export control modernization is extremely important to the 
constituents I am proud to represent in the 16th District of Illinois. 
This area of the country is one of the most heavily industrialized 
Congressional districts in the Nation. We make everything from nuts and 
bolts to the advanced electrical system for the new Boeing 787, the 
Dreamliner. Many of the products and technologies produced by the 
manufacturers I am so proud to represent are regulated under U.S. 
export control law.
  When I was first elected to Congress almost 16 years ago, a 
manufacturer from northern Illinois came to me for assistance in 
navigating the regulatory process for selling their product overseas. 
Ever since that first experience, I have been dedicated to modernizing 
our Nation's export control system. I am continuing to work on policies 
that will enhance U.S. national security, strengthen our defense 
industrial base, and boost U.S. competitiveness.
  One piece of that puzzle is being considered here today. The Security 
Assistance and Arms Export Control Reform Act of 2008--which I am proud 
to have co-sponsored--contains legislation (Subtitle A of Title I 
entitled the Defense Trade Controls Performance Improvement Act of 
2008) I co-wrote along with my good friend and colleague from 
California, Representative Brad Sherman who is the Chairman of the 
Terrorism, Non-proliferation, and Trade Subcommittee. This legislation 
will reduce defense trade license processing times, create a spare part 
waiver for our closest allies, and make licensing of defense items more 
transparent and predictable. These process improvements will make U.S. 
defense manufacturers in every category, including space, more 
competitive in the international marketplace. No longer will they have 
to fear being shut out of foreign markets or products because of a 
taint from the International Traffic in Arms Regulations, ITAR.

  The bill will modernize the Federal Government's inefficient export 
control policy while strengthening national security and helping 
American companies sell more defense-related goods and services 
overseas to our allies.
  H.R. 5916 requires the Directorate of Defense Trade Controls, DDTC, 
at the State Department to hire more staff to reduce the backlog of 
license applications that impedes legitimate trade with our allies 
without compromising national security. The last time I checked, the 
State Department has only 42 licensing officers. By 2010, this 
legislation requires adequate staff and resources at the State 
Department to review and process defense trade licenses in a timely 
manner. This legislation creates a ratio of at least one DDTC officer 
for ever 1,250 applications by 2010. The independent Congressional 
Budget Office, CBO, estimated that this provision would require the 
hiring of 35 additional licensing officers.
  H.R. 5916 also requires DDTC to assign no less than 3 individuals by 
fiscal year 2009 to review applications for commodity jurisdiction 
determinations. This is one area of export controls that is extremely 
complex and time consuming--determining whether or not a particular 
widget is a commercial dual-use item or a munition. Having specialized 
personnel dedicated to this task will be extremely helpful in improving 
the processing of these determinations. The legislation also increasing 
the transparency of commodity jurisdiction determinations with the 
publication of those decisions on the Internet. This will help 
companies know in advance whether or not their particular product would 
fall into a commercial or munitions category.
  The legislation also creates a series of performance goals for DDTC: 
No longer than 60 days to process a defense trade license; 30 days to 
process a defense trade license for close allies; and 7 days to process 
a defense trade license from our close allies in support of combat 
operations or peacekeeping or humanitarian operations with U.S. Armed 
Forces. This in no way implies forcing a premature decision--these are 
simply goals to achieve that have already been vetted with the 
Executive Branch. All tolled, CBO scored these personnel enhancement as 
costing $6 million in 2009 and $31 million over the next 5 years,

[[Page E945]]

which is a relatively modest price to pay to insure a vibrant and 
growing U.S. aerospace export industry. In 2007, the U.S. exported 
nearly $97 billion worth of aerospace products, producing a $60 billion 
positive trade balance in an otherwise grim trade picture. 
Nevertheless, H.R. 5916 also requires a report within 90 days on 
possible means for DDTC to achieve 100 percent self-financing.
  H.R. 5916 creates a special licensing authorization for U.S. 
manufactured spare and replacement parts or components in connection 
with defense items previously lawfully exported to our closest friends 
and allies. This will help free up time of DDTC employees to go after 
more significant threats to our national security. Finally, the bill 
augments the input of the private sector Defense Trade Advisory Group, 
DTAG, into the State Department's defense trade agenda.
  In conclusion, the Security Assistance and Arms Export Control Reform 
Act of 2008 streamlines the export control process, reduces the 
application backlog, and allows greater scrutiny on sensitive exports 
that could harm our country. It will better protect our Nation while 
helping U.S. companies sell more goods and services to our allies, 
creating more jobs for Americans. I appreciate the Foreign Affairs 
Committee's bipartisan efforts on this issue, particularly Chairmen 
Berman and Sherman and their respective staffs, and I urge my 
colleagues to support H.R. 5916.

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