(B) For the purpose of expediting the consideration and enactment of joint 171 resolutions under this subsection, a motion to proceed to the consideration of any such joint 171 resolution after it has been reported by the appropriate committee shall be treated as highly privileged in the House of Representatives.

(4) 188 The provisions of subsection (b)(5) shall apply to any equipment, article, or service for which a numbered certification has been transmitted to Congress pursuant to paragraph (1) in the same manner and to the same extent as that subsection applies to any equipment, article, or service for which a numbered certification has been transmitted to Congress pursuant to subsection (b)(1). For purposes of such application, any reference in subsection (b)(5) to "a letter of offer" or "an offer" shall be deemed to be a reference to "a contract".

(d)(1) 189 In the case of an approval under section 38 of this Act of a United States commercial technical assistance or manufacturing licensing agreement 190 which involves the manufacture abroad of any item of significant combat equipment on the United States Munitions List, before such approval is given, the President shall submit a certification with respect to such proposed commercial agreement in a manner similar to the certification required under subsection (c)(1) containing comparable information, except that the last sentence of such subsection shall not apply to certifications submitted pursuant to this subsection.

(2) 191 A certification under this subsection shall be submitted(A) at least 15 days before approval is given in the case of an agreement for or in a country which is a member of the North Atlantic Treaty Organization or Australia, Japan, or New Zealand; and

(B) at least 30 days before approval is given in the case of an agreement for or in any other country;

unless the President states in his certification that an emergency exists which requires the immediate approval of the agreement in the national security interests of the United States.

(3) If the President states in his certification that an emergency exists which requires the immediate approval of the agreement in the national security interests of the United States, thus waiving the requirements of paragraph (4), he shall set forth in the certification a detailed justification for his determination, including a description of the emergency circumstances which necessitate the immediate approval of the agreement and a discussion of the national security interests involved.

(4) Approval for an agreement subject to paragraph (1) may not be given under section 38 if the Congress, within the 15-day or 30

188 Sec. 1224 of the Security Assistance Act of 1999 (title XII of the Admiral James W. Nance and Meg Donovan Foreign Relations Authorization Act, Fiscal Years 2000 and 2001 (H.R. 3427, enacted by reference in sec. 1000(a)(7) of Public Law 106-113; 113 Stat. 1536)) added para. (4). 189 Sec. 141(d)(1) of Public Law 104-164 (110 Stat. 1432) inserted para. designation "(1)" after "(d)".

190 Sec. 141(d)(2) of Public Law 104-164 (110 Stat. 1432) struck out "for or in a country not a member of the North Atlantic Treaty Organization" after "licensing agreement".

191 Sec. 141(d)(3) of Public Law 104-164 (110 Stat. 1432) added paras. (2) through (5). Sec. 141(f) of Public Law 104-164 (110 Stat. 1433) provided that "amendments made by this section [sec. 141] apply with respect to certifications required to be submitted on or after the date of the enactment of this Act (July 21, 1996].".

day period specified in paragraph (2)(A) or (B), as the case may be, enacts a joint resolution prohibiting such approval.

(5)(A) Any joint resolution under paragraph (4) shall be considered in the Senate in accordance with the provisions of section 601(b) of the International Security Assistance and Arms Export Control Act of 1976.

(B) For the purpose of expediting the consideration and enactment of joint resolutions under paragraph (4), a motion to proceed to the consideration of any such joint resolution after it has been reported by the appropriate committee shall be treated as highly privileged in the House of Representatives.

(e) 192 For purposes of this section

(1) the term "offset agreement" means an agreement, arrangement, or understanding between a United States supplier of defense articles or defense services and a foreign country under which the supplier agrees to purchase or acquire, or to promote the purchase or acquisition by other United States persons of, goods or services produced, manufactured, grown, or extracted, in whole or in part, in that foreign country in consideration for the purchase by the foreign country of defense articles or defense service from the supplier; and

(2) the term "United States person" means

(A) an individual who is a national or permanent resident alien of the United States; and

(B) any corporation, business association, partnership, trust, or other juridical entity

(i) organized under the laws of the United States or any State, district, territory, or possession thereof; or (ii) owned or controlled in fact by individuals described in subparagraph (A).

(f) 193 The President shall cause to be published in a timely manner 194 in the Federal Register, upon transmittal to the Speaker of the House of Representatives and to the chairman of the Committee on Foreign Relations of the Senate, the full unclassified text of 195

(1) each numbered certification submitted pursuant to subsection (b);

(2) each notification of a proposed commercial sale submitted under subsection (c); and

192 Sec. 732(c) of the Foreign Relations Authorization Act, Fiscal Years 1994 and 1995 (Public Law 103-236; 108 Stat. 503) added subsec. (e).

193 Sec. 155 of Public Law 104-164 (110 Stat. 1440) added this subsec. as subsec. (e). Sec. 1245(b)(1) of the Defense Offsets Disclosure Act of 1999 (title XII, subtitle D of the Admiral James W. Nance and Meg Donovan Foreign Relations Authorization Act, Fiscal Years 2000 and 2001 (H.R. 3427, enacted by reference in sec. 1000(a)(7) of Public Law 106-113; 113 Stat. 1536)) redesignated as subsec. (f) to correct the occurrence of two subsecs. (e).

194 Sec. 1301(a)(1) of the Arms Control, Nonproliferation, and Security Assistance Act of 1999 (Division B of the Admiral James W. Nance and Meg Donovan Foreign Relations Authorization Act, Fiscal Years 2000 and 2001 (H.R. 3427, enacted by reference in sec. 1000(a)(7) of Public Law 106-113; 113 Stat. 1536), inserted "in a timely manner" after "to be published".

195 Sec. 1301(a)(2) of the Arms Control, Nonproliferation, and Security Assistance Act of 1999 (Division B of the Admiral James W. Nance and Meg Donovan Foreign Relations Authorization Act, Fiscal Years 2000 and 2001 (H.R. 3427, enacted by reference in sec. 1000(a)(7) of Public Law 106-113; 113 Stat. 1536), struck out "the full unclassified text of each numbered certification submitted pursuant to subsection (b) and each notification of a proposed commercial sale submitted under subsection (c)." and inserted in lieu thereof "the full unclassified text of-" and text of subparas. (1) through (3).

(3) each notification of a proposed commercial technical assistance or manufacturing licensing agreement submitted under subsection (d).

(g) 196 Information relating to offset agreements provided pursuant to subparagraph (C) of the fifth sentence of subsection (b)(1) and the second sentence of subsection (c)(1) shall be treated as confidential information in accordance with section 12(c) of the Export Administration Act of 1979 (50 U.S.C. App. 2411(c)).

Sec. 37.197 Fiscal Provisions Relating to Foreign Military Sales Credits. (a) Cash payments received under sections 21, 22, and 29 198 and advances received under section 23 shall be available solely for payments to suppliers (including the military departments) and refunds to purchasers and shall not be available for financing credits and guaranties.

(b) Amounts received from foreign governments and international organizations as repayments for credits extended pursuant to section 23, amounts received from the disposition of instruments evidencing indebtedness under section 24(b) (excluding such portion of the sales proceeds as may be required at the time of disposition to be obligated as a reserve for payment of claims under guaranties issued pursuant to section 24(b), which sums are made available for such obligations), 199 and other collections (including fees and interest) shall be transferred to the miscellaneous receipts of the Treasury.

(c) 200 Notwithstanding the provisions of subsection (b), to the extent that any of the funds constituting the reserve under section 24(c) are paid out for a claim arising out of a loan guaranteed under section 24, amounts received from a foreign government or international organization after the date of such payment, with respect to such claim, shall be credited to such reserve, shall be merged with the funds in such reserve, and shall be available for any purpose for which funds in such reserve are available.

Sec. 38.201 Control of Arms Exports and Imports.-(a)(1) In furtherance of world peace and the security and foreign policy of

196 Sec. 1245(b)(2) of the Defense Offsets Disclosure Act of 1999 (title XII, subtitle D of the Admiral James W. Nance and Meg Donovan Foreign Relations Authorization Act, Fiscal Years 2000 and 2001 (H.R. 3427, enacted by reference in sec. 1000(a)(7) of Public Law 106–113; 113 Stat. 1536)) added subsec. (g).

197 22 U.S.C. 2777.

198 The reference to sec. 29 was added by sec. 105(e)(1) of the International Security and Development Cooperation Act of 1980 (Public Law 96-533; 94 Stat. 3135).

199 The words to this point beginning with "under section 24(b) (excluding” were added by sec. 25(11) of the FA Act of 1973.

200 Subsec. (c) was added by sec. 104(b) of the International Security and Development Cooperation Act of 1980 (Public Law 96-533; 94 Stat. 3133).

201 22 U.S.C. 2778.

Sec. 38 was added by sec. 212(a)(1) of the International Security Assistance and Arms Export Control Act of 1976 (Public Law 94-329; 90 Stat. 744). Sec. 212(b) of the same Act repealed sec. 414 of the Mutual Security Act of 1954 and stated that any reference to sec. 414 would be considered as a reference to sec. 38 of the Arms Export Control Act.

See also secs. 1402-1412 of the National Defense Authorization Act for Fiscal Year 2000 (Public Law 106-65; 113 Stat. 798 et seq.), relating to, among other issues, export controls, satellite licensing, technology transfers, high-performance computers, and the Defense Threat Reduction Agency.

See also sec. 1309 of the Arms Control, Nonproliferation, and Security Assistance Act of 1999 (Division B of the Admiral James W. Nance and Meg Donovan Foreign Relations Authorization Act, Fiscal Years 2000 and 2001 (H.R. 3427, enacted by reference in sec. 1000(a)(7) of Public Law 106-113; 113 Stat. 1536), relating to satellite export activities.

See also title XV, subtitle B, of the Strom Thurmond National Defense Authorization Act for Fiscal Year 1999 (Public Law 105-261; 112 Stat. 2173), relating to satellite export controls, particularly as they are applied to exportation to the People's Republic of China.

See also title IV, secs. 401-405, of the Foreign Relations Authorization Act, Fiscal Years 1992 and 1993 (Public Law 102-138; 105 Stat. 718-722), relating to arms transfers restraint policy for the Middle East and Persian Gulf region.

See also in the National Defense Authorization Act for Fiscal Year 1993 (Public Law 102484; 106 Stat. 2561): sec. 1365, relating to landmine export moratorium; title XV-Weapons of Mass Destruction Control Act of 1992; and title XVI-Iran-Iraq Arms Non-Proliferation Act of 1992. As a result of sec. 1365 of that Act, the Department of State gave notice to the following: "Notice is hereby given that all licenses, approvals, sales or transfers of landmines specifically designed for antipersonnel use, regardless of method of delivery, are suspended until further notice. Additionally, all existing authorizations for the sale, export, or transfer of such defense articles are revoked until further notice. This action has been taken pursuant to sections 2, 38 and 42 of the Arms Export Control Act, and section 1365 of the National Defense Authorization Act for Fiscal Year 1993." (Public Notice 1727 of November 25, 1992; 57 F.R. 55614).

Licenses and approvals to export or otherwise transfer defense articles and defense services to the following countries or foreign entities are suspended or restricted:

Iran (January 23, 1984; Department of State Notice 84-3; 49 F.R. 2836); Iraq (August 2, 1990; Department of State Public Notice 1238; 55 F.R. 31808); Serbia and Montenegro (Federal Republic of Yugoslavia) (effective July 11, 1991; Department of State Public Notice 1427; 56 F.R. 33322; July 19, 1991); Haiti-including those for use by the police (effective October 3, 1991; Department of State Public Notice 1496; 56 F.R. 50968; October 9, 1991); Sudan (effective October 8, 1992; Department of State Public Notice 1711; 57 F.R. 49741; November 3, 1992); Yemen (effective November 16, 1992; Department of State Public Notice 1734; 57 F.R. 59852; December 16, 1992); the armed forces on Cyprus (except to the United Nations Forces in Cyprus) (effective November 18, 1992; Department of State Public Notice 1738; 57 F.R. 60265; December 18, 1992); Somalia (effective December 16, 1992; Department of State Public Notice 1736; 57 F.R. 59851; December 16, 1992); Liberia (other than for the peacekeeping forces of ECOWAS) (effective December 18, 1992; Department of State Public Notice 1737; 57 F.R. 60265; December 18, 1992; and Department of State Public Notice 3767; 66 F.R. 46491; September 5, 2001); Zaire (Department of State Public Notice 1795; 58 F.R. 26024; April 29, 1993); Burma (Department of State Public Notice 1820; 58 F.R. 33293; June 16, 1993); Guatemala (Department of State Public Notice 1831; 58 F.R. 38597; July 19, 1993); Taliban-controlled areas of Afghanistan (Department of State Public Notice (June 27, 1996; 61 F.R. 33313; and Public Notice 3657, May 8, 2001; 66 F.R. 23310);

Over 2000-2001, restrictions imposed against India and Pakistan were adjusted or lifted (Presidential Determination No. 2000-18; March 18, 2000; 65 F.R. 16297); Presidential Determination No. 2001-11; January 19, 2001; 66 F.R. 8503; Presidential Determination No. 200123; August 9, 2001; 66 F.R. 44521; and Presidential Determination No. 2001-28; September 22, 2001; 66 F.R. 50095). (Restrictions originally imposed against India on May 13, 1998 (Department of State Public Notice 2825; 63 F.R. 27781); and against Pakistan on May 30, 1998 (Department of State Public Notice 2835; 63 F.R. 33122).

*

Effective September 10, 1999, restrictions were imposed against Indonesia ("except for certain exports related to commercial communication satellites and Y2K compliance activities"; Department of State Public Notice 3137; 64 F.R. 55805; September 10, 1999); These were eased, effective August 25, 2000, to expand "the exception of the items permitted to be exported * to, on a case-by-case basis, C-130 spare parts including when for the Government of Indonesia" (Department of State Public Notice 3557; 66 F.R. 7836). Effective November 28, 2000, exceptions to Indonesia for defense articles and defense services "for ultimate end-use by a third country" were allowed on a case-by-case basis (Department of State Public Notice 3612; 66 F.R. 16085). Effective September 19, 2001, the exceptions to Indonesia were again expanded to include, on a case-by-case basis: "(a) Non-lethal defense articles and spare parts; and (b) non-lethal, safetyof-use spare parts for lethal end-items. An example of safety-of-use items would be cartridge actuated aircraft for purposes of enhancing the safety of the aircraft crew. for non-lethal defense end-items, no distinction will be made between Indonesia's existing and new inventory." (Department of State Public Notice 3854; 66 F.R. 65235).

Effective May 30, 1999, restrictions against Nigeria were eased. Henceforth, applications for licenses are reviewed on a case by case basis (Department of State Public Notice 3076; 64 F.R. 34304). Exports to Nigeria had been restricted since 1993 (see: Department of State Public Notice 1844; 58 F.R. 40845; July 30, 1993; and Public Notice 2313; 60 F.R. 66334; December 11, 1995).

Peru and Ecuador are restricted on a case-by-case basis (Peru: Department of State Public Notice 2021; 59 F.R. 32481; June 8, 1994; and Public Notice 2168; 60 F.R. 10138; February 23, 1995; Peru and Ecuador: Department of State Public Notice 2205; 60 F.R. 26070; May 4, 1995; and Public Notice 2286; 60 F.R. 57049; November 13, 1995).

Effective July 2, 1993, the domestic arms embargo on Angola was lifted and section 126.1(a) of the International Traffic in Arms Regulations (ITAR) (22 CFR Part 126) was amended accordingly (Department of State Public Notice 1826; 58 F.R. 35864; July 2, 1993). There continues to be a presumption of denial for lethal articles, and an embargo is in place with respect to UNITA (Executive Order 12865, September 29, 1993). See Legislation on Foreign Relations Through 2000, vol. III.

The following countries are embargoed under International Traffic in Arms Regulations (ITAR; 22 CFR Part 126) (Department of State Public Notice 1832; 58 F.R. 39280, as amended): Afghanistan (June 27, 1996; 61 F.R. 33313; and Public Notice 3657, May 8, 2001; 66 F.R. 23310); Armenia, Azerbaijan, Byelarus, Cuba, Iran, Iraq, Libya, North Korea, Syria, Tajikistan, and Vietnam (April 4, 1994; 59 F.R. 15625). For some of these countries, other restrictions may

Continued

the United States, the President is authorized to control the import and the export of defense articles and defense services and to provide foreign policy guidance to persons of the United States involved in the export and import of such articles and services. The President is authorized to designate those items which shall be considered as defense articles and defense services for the purposes of this section and to promulgate regulations for the import and export of such articles and services. The items so designated shall constitute the United States Munitions List.

(2) Decisions on issuing export licenses under this section shall take into account 202 whether the export of an article would contribute to an arms race, aid in the development of weapons of mass destruction, support international terrorism, increase the possibility of outbreak or escalation of conflict, or prejudice the development of bilateral or multilateral arms control or nonproliferation agreements or other arrangements.203

(3) 204 In exercising the authorities conferred by this section, the President may require that any defense article or defense service be sold under this Act as a condition of its eligibility for export, and may require that persons engaged in the negotiation for the export of defense articles and services keep the President fully and currently informed of the progress and future prospects of such negotiations.

(b)(1)(A)(i) 205 As prescribed in regulations issued under this section, every person (other than an officer or employee of the United States Government acting in an official capacity) who engages in the business of manufacturing, exporting, or importing any defense articles or defense services designated by the President under subsection (a)(1) shall register with the United States Government agency charged with the administration of this section, and shall

also make arms transfers unavailable. Restrictions under the ITAR also apply to countries with respect to which the United States maintains an arms embargo: Burma, People's Republic of China, Federal Republic of Yugoslavia (Serbia and Montenegro), Haiti, Liberia, Rwanda (59 F.R. 42158), Somalia, Sudan, and Zaire (relating to Liberia, see also 66 F.R. 46491).

Ukraine was removed from the ITAR restrictive list, effective December 27, 2000 (65 F.R. 81739).

Mongolia was removed from the ITAR restrictive list, effective June 30, 1997, in State Department Public Notice 2567 (62 F.R. 37133). The phrase "the states of the former Yugoslavia" was replaced with "the FRY (Serbia and Montenegro)", effective July 12, 1996, pursuant to State Department Public Notice 2410 (61 F.R. 36625). Georgia, Kazakhstan, Turkmenistan, and Uzbekistan were removed from the ITAR restrictive list, effective July 17, 1996, in State Department Public Notice 2407 (61 F.R. 41499).

202 Sec. 1225(a)(2)(A) of the Foreign Affairs Agencies Consolidation Act of 1998 (division G, subdivision A of Public Law 105-277; 112 Stat. 2681) struck out "be made in coordination with the Director of the United States Arms Control and Disarmament Agency, taking into account the Director's assessment as to" and inserted in lieu thereof "take into account".

203 Sec. 1225(a)(2)(B) of the Foreign Affairs Agencies Consolidation Act of 1998 (division G, subdivision A of Public Law 105-277; 112 Stat. 2681) struck out The Director of the Arms Control and Disarmament Agency is authorized, whenever the Director determines that the issuance of an export license under this section would be detrimental to the national security of the United States, to recommend to the President that such export license be disapproved.". Previously, sec. 714(a)(1) of the Foreign Relations Authorization Act, Fiscal Years 1994 and 1995 (Public Law 103-236; 108 Stat. 497), amended and restated para. (2). The paragraph formerly read as follows:

"(2) Decisions on issuing export licenses under this section shall be made in coordination with the director of the United States Arms Control and Disarmament Agency and shall take into account the Director's opinion as to whether the export of an article will contribute to an arms race, support international terrorism, increase the possibility of outbreak or escalation of conflict, or prejudice the development of bilateral or multilateral arms control arrangements.".

204 Par. (3) was added by sec. 107(c) of the International Security and Development Cooperation Act of 1980 (Public Law 96-533, 94 Stat. 3136).

205 Sec. 151(a) of Public Law 104-164 (110 Stat. 1437) added clause designation “(i)” and added clause (ii).