[Federal Register Volume 78, Number 49 (Wednesday, March 13, 2013)]
[Presidential Documents]
[Pages 16129-16132]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-05967]



[[Page 16127]]

Vol. 78

Wednesday,

No. 49

March 13, 2013

Part III





The President





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Executive Order 13637--Administration of Reformed Export Controls
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  Federal Register / Vol. 78 , No. 49 / Wednesday, March 13, 2013 / 
Presidential Documents  

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 Title 3--
 The President

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                Executive Order 13637 of March 8, 2013

                
Administration of Reformed Export Controls

                By the authority vested in me as President by the 
                Constitution and the laws of the United States of 
                America, including the Arms Export Control Act, as 
                amended (22 U.S.C. 2751 et seq.) (the ``Act''), and 
                section 301 of title 3, United States Code, it is 
                hereby ordered as follows:

                Section 1. Delegation of Functions. The following 
                functions conferred upon the President by the Act, and 
                related laws, are delegated as follows:

                    (a) Those under section 3 of the Act (22 U.S.C. 
                2753), with the exception of subsections (a)(1), (b), 
                (c)(3), (c)(4), and (f) (22 U.S.C. 2753(a)(1), (b), 
                (c)(3), (c)(4), and (f)), to the Secretary of State. 
                The Secretary of State, in the implementation of the 
                delegated functions under sections 3(a) and (d) of the 
                Act (22 U.S.C. 2753(a) and (d)), is authorized to find, 
                in the case of a proposed transfer of a defense article 
                or related training or other defense service by a 
                foreign country or international organization not 
                otherwise eligible under section 3(a)(1) of the Act (22 
                U.S.C. 2753(a)(1)), whether the proposed transfer will 
                strengthen the security of the United States and 
                promote world peace.
                    (b) Those under section 5 (22 U.S.C. 2755) to the 
                Secretary of State.
                    (c) Those under section 21 of the Act (22 U.S.C. 
                2761), with the exception of the last sentence of 
                subsection (d) and all of subsection (i) (22 U.S.C. 
                2761(d) and (i)), to the Secretary of Defense.
                    (d) Those under sections 22(a), 29, 30, and 30A of 
                the Act (22 U.S.C. 2762(a), 2769, 2770, and 2770a) to 
                the Secretary of Defense.
                    (e) Those under section 23 of the Act (22 U.S.C. 
                2763), and under section 7069 of the Department of 
                State, Foreign Operations, and Related Programs 
                Appropriations Act, 2012 (Public Law 112-74, Division 
                I) and any subsequently enacted provision of law that 
                is the same or substantially the same, to the Secretary 
                of Defense to be exercised in consultation with the 
                Secretary of State and, other than the last sentence of 
                section 23(a) (22 U.S.C. 2763(a)), in consultation with 
                the Secretary of the Treasury, except that the 
                President shall determine any rate of interest to be 
                charged that is less than the market rate of interest.
                    (f) Those under sections 24 and 27 of the Act (22 
                U.S.C. 2764 and 2767) to the Secretary of Defense. The 
                Secretary of Defense shall consult with the Secretary 
                of State and the Secretary of the Treasury in 
                implementing the delegated functions under section 24 
                (22 U.S.C. 2764) and with the Secretary of State in 
                implementing the delegated functions under section 27 
                (22 U.S.C. 2767).
                    (g) Those under section 25 of the Act (22 U.S.C. 
                2765) to the Secretary of State. The Secretary of 
                Defense shall assist the Secretary of State in the 
                preparation of materials for presentation to the 
                Congress under that section.
                    (h) Those under section 34 of the Act (22 U.S.C. 
                2774) to the Secretary of State. To the extent the 
                standards and criteria for credit and guaranty 
                transactions are based upon national security or 
                financial policies, the Secretary of State shall obtain 
                the prior concurrence of the Secretary of Defense and 
                the Secretary of the Treasury, respectively.

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                    (i) Those under section 35(a) of the Act (22 U.S.C. 
                2775(a)) to the Secretary of State.
                    (j) Those under sections 36(a) and 36(b)(1) of the 
                Act (22 U.S.C. 2776(a) and (b)(1)), except with respect 
                to the certification of an emergency as provided by 
                subsection (b)(1) (22 U.S.C. 2776(b)(1)), to the 
                Secretary of Defense. The Secretary of Defense, in the 
                implementation of the delegated functions under 
                sections 36(a) and (b)(1) (22 U.S.C. 2776(a) and 
                (b)(1)), shall consult with the Secretary of State. 
                With respect to those functions under sections 36(a)(5) 
                and (6) (22 U.S.C. 2776(a)(5) and (6)), the Secretary 
                of Defense shall consult with the Director of the 
                Office of Management and Budget.
                    (k) Those under section 36(b)(1) with respect to 
                the certification of an emergency as provided by 
                subsection (b)(1) and under sections 36(c) and (d) of 
                the Act (22 U.S.C. 2776(b)(1), (c), and (d)) to the 
                Secretary of State.
                    (l) Those under section 36(f)(1) of the Act (22 
                U.S.C. 2776(f)(1)) to the Secretary of Defense.
                    (m) Those under sections 36(f)(2) and (f)(3) of the 
                Act (22 U.S.C. 2776(f)(2) and (f)(3)) to the Secretary 
                of State.
                    (n) Those under section 38 of the Act (22 U.S.C. 
                2778) to:

(i) the Secretary of State, except as otherwise provided in this 
subsection. Designations, including changes in designations, by the 
Secretary of State of items or categories of items that shall be considered 
as defense articles and defense services subject to export control under 
section 38 (22 U.S.C. 2778) shall have the concurrence of the Secretary of 
Defense. The authority to undertake activities to ensure compliance with 
established export conditions may be redelegated to the Secretary of 
Defense, or to the head of another executive department or agency as 
appropriate, who shall exercise such functions in consultation with the 
Secretary of State;

(ii) the Attorney General, to the extent they relate to the control of the 
permanent import of defense articles and defense services. In carrying out 
such functions, the Attorney General shall be guided by the views of the 
Secretary of State on matters affecting world peace, and the external 
security and foreign policy of the United States. Designations, including 
changes in designations, by the Attorney General of items or categories of 
items that shall be considered as defense articles and defense services 
subject to permanent import control under section 38 of the Act (22 U.S.C. 
2778) shall be made with the concurrence of the Secretary of State and the 
Secretary of Defense and with notice to the Secretary of Commerce; and

(iii) the Department of State for the registration and licensing of those 
persons who engage in the business of brokering activities with respect to 
defense articles or defense services controlled either for purposes of 
export by the Department of State or for purposes of permanent import by 
the Department of Justice.

                    (o) Those under section 39(b) of the Act (22 U.S.C. 
                2779(b)) to the Secretary of State. In carrying out 
                such functions, the Secretary of State shall consult 
                with the Secretary of Defense as may be necessary to 
                avoid interference in the application of Department of 
                Defense regulations to sales made under section 22 of 
                the Act (22 U.S.C. 2762).
                    (p) Those under the portion of section 40A of the 
                Act added by Public Law 104-164 (22 U.S.C. 2785), to 
                the Secretary of State insofar as they relate to 
                commercial exports licensed under the Act, and to the 
                Secretary of Defense insofar as they relate to defense 
                articles and defense services sold, leased, or 
                transferred under the Foreign Military Sales Program.
                    (q) Those under the portion of section 40A of the 
                Act added by the Antiterrorism and Effective Death 
                Penalty Act of 1996 (Public Law 104-132) (22 U.S.C. 
                2781), to the Secretary of State.

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                    (r) Those under sections 42(c) and (f) of the Act 
                (22 U.S.C. 2791(c) and (f)) to the Secretary of 
                Defense. The Secretary of Defense shall obtain the 
                concurrence of the Secretary of State and the Secretary 
                of Commerce on any determination considered under the 
                authority of section 42(c) of the Act (22 U.S.C. 
                2791(c)).
                    (s) Those under section 52(b) of the Act (22 U.S.C. 
                2795a(b)) to the Secretary of Defense.
                    (t) Those under sections 61 and 62(a) of the Act 
                (22 U.S.C. 2796 and 2796a(a)) to the Secretary of 
                Defense.
                    (u) Those under section 2(b)(6) of the Export-
                Import Bank Act of 1945, as amended (12 U.S.C. 
                635(b)(6)) to the Secretary of State.

                Sec. 2. Coordination. (a) In addition to the specific 
                provisions of section 1 of this order, the Secretary of 
                State and the Secretary of Defense, in carrying out the 
                functions delegated to them under this order, shall 
                consult with each other and with the heads of other 
                executive departments and agencies on matters 
                pertaining to their responsibilities.

                    (b) Under the direction of the President and in 
                accordance with section 2(b) of the Act (22 U.S.C. 
                2752(b)), the Secretary of State, taking into account 
                other United States activities abroad, shall be 
                responsible for the continuous supervision and general 
                direction of sales and exports under the Act, including 
                the negotiation, conclusion, and termination of 
                international agreements, and determining whether there 
                shall be a sale to a country and the amount thereof, 
                and whether there shall be delivery or other 
                performance under such sale or export, to the end that 
                sales and exports are integrated with other United 
                States activities and the foreign policy of the United 
                States is best served thereby.

                Sec. 3. Allocation of Funds. Funds appropriated to the 
                President for carrying out the Act shall be deemed to 
                be allocated to the Secretary of Defense without any 
                further action of the President.

                Sec. 4. Revocation. Executive Order 11958 of January 
                18, 1977, as amended, is revoked; except that, to the 
                extent consistent with this order, all determinations, 
                authorizations, regulations, rulings, certificates, 
                orders, directives, contracts, agreements, and other 
                actions made, issued, taken, or entered into under the 
                provisions of Executive Order 11958, as amended, and 
                not revoked, superseded, or otherwise made 
                inapplicable, shall continue in full force and effect 
                until amended, modified, or terminated by appropriate 
                authority.

                Sec. 5. Delegation of Functions under the International 
                Emergency Economic Powers Act. Executive Order 13222 of 
                August 17, 2001, is amended as follows:

                    (a) Redesignate section 4 as section 6.
                    (b) Insert the following new sections 4 and 5 after 
                section 3: ``Sec. 4. The Secretary of Commerce shall, 
                to the extent required as a matter of statute or 
                regulation, establish appropriate procedures for when 
                Congress is to be notified of the export of firearms 
                that are subject to the jurisdiction of the Department 
                of Commerce under the Export Administration Regulations 
                and that are controlled for purposes of permanent 
                import by the Attorney General under section 38(a) of 
                the Arms Export Control Act (22 U.S.C. 2778(a)) and 
                appropriate procedures for when Congress is to be 
                notified of the export of Major Defense Equipment 
                controlled for purposes of permanent export under the 
                jurisdiction of the Department of Commerce.

                Sec. 5. (a) The Secretary of State is hereby authorized 
                to take such actions and to employ those powers granted 
                to the President by the Act as may be necessary to 
                license or otherwise approve the export, reexport, or 
                transfer of items subject to the jurisdiction of the 
                Department of Commerce as agreed to by the Secretary of 
                State and the Secretary of Commerce.

                    (b) Notwithstanding subsection (a) of this section, 
                items licensed or otherwise approved by the Secretary 
                of State pursuant to this section remain subject to the 
                jurisdiction of the Department of Commerce.''

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                Sec. 6. General Provisions. (a) Nothing in this order 
                shall be construed to impair or otherwise affect:

(i) the authority granted by law to an agency, or the head thereof; or

(ii) the functions of the Director of the Office of Management and Budget 
relating to budgetary, administrative, or legislative proposals.

                (b) This order shall be implemented consistent with 
                applicable law and subject to the availability of 
                appropriations.

                (c) This order is not intended to, and does not, create 
                any right or benefit, substantive or procedural, 
                enforceable at law or in equity by any party against 
                the United States, its departments, agencies, or 
                entities, its officers, employees, or agents, or any 
                other person.
                
                
                    (Presidential Sig.)

                THE WHITE HOUSE,

                    Washington, March 8, 2013.

[FR Doc. 2013-05967
Filed 3-12-13; 11:15 am]
Billing code 3295-F3