422 
statement of a material fact or omits to state a material 
fact required to be stated therein or necessary to make 
the statements therein not misleading, shall upon convic-
tion be fined for each violation not more than $1,000,000, 
or imprisoned not more than 20 years, or both. 
(b) ILLICIT TRAFFICKING IN THE WESTERN HEMI-
SPHERE.—Any person who willfully exports to a country 
in the Western Hemisphere any small arm or light weapon 
without a license in violation of the requirements of this 
Act shall upon conviction be fined for each violation not 
less than $1,000,000 but not more than $3,000,000 and 
imprisoned for not more than 20 years, or both. 
SEC. 4373. IDENTIFICATION OF PERSONS OF CONCERN. 
(a) IN GENERAL.—The President shall develop ap-
propriate mechanisms to identify, in connection with the 
export licensing process under this subtitle— 
(1) persons who are the subject of an indict-
ment for, or have been convicted of, a violation 
under— 
(A) section 4372; 
(B) section 11 of the Export Administra-
tion Act of 1979 (50 U.S.C. App. 2410) (as 
continued in effect under the International 
Emergency Economic Powers Act); 
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423 
(C) section 793, 794, or 798 of title 18, 
United States Code (relating to espionage in-
volving defense or classified information) or sec-
tion 2339A of such title (relating to providing 
material support to terrorists); 
(D) section 16 of the Trading with the 
Enemy Act (50 U.S.C. App. 16); 
(E) section 206 of the International Emer-
gency Economic Powers Act (relating to foreign 
assets controls; 50 U.S.C. App. 1705); 
(F) section 30A of the Securities Exchange 
Act of 1934 (15 U.S.C. 78dd1) or section 104 
of the Foreign Corrupt Practices Act (15 
U.S.C. 78dd2); 
(G) chapter 105 of title 18, United States 
Code (relating to sabotage); 
(H) section 4(b) of the Internal Security 
Act of 1950 (relating to communication of clas-
sified information; 50 U.S.C. 783(b)); 
(I) section 57, 92, 101, 104, 222, 224, 
225, or 226 of the Atomic Energy Act of 1954 
(42 U.S.C. 2077, 2122, 2131, 2134, 2272, 
2274, 2275, and 2276); 
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424 
(J) section 601 of the National Security 
Act of 1947 (relating to intelligence identities 
protection; 50 U.S.C. 421); 
(K) section 603(b) or (c) of the Com-
prehensive Anti-Apartheid Act of 1986 (22 
U.S.C. 5113(b) or (c)); or 
(L) section 3, 4, 5, and 6 of the Preven-
tion of Terrorist Access to Destructive Weapons 
Act of 2004, relating to missile systems de-
signed to destroy aircraft (18 U.S.C. 2332g), 
prohibitions governing atomic weapons (42 
U.S.C. 2122), radiological dispersal devices (18 
U.S.C. 2332h), and variola virus (18 U.S.C. 
175b); 
(2) persons who are the subject of an indict-
ment or have been convicted under section 371 of 
title 18, United States Code, for conspiracy to vio-
late any of the provisions of law described in para-
graph (1); and 
(3) persons who are ineligible— 
(A) to contract with, 
(B) to receive a license or other form of 
authorization to export from, or 
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425 
(C) to receive a license or other form of 
authorization to import defense articles or de-
fense services from, 
any Federal agency. 
(b) DISAPPROVAL OF APPLICATION.—If the Presi-
dent determines that— 
(1) an applicant for a license to export under 
this subtitle is the subject of an indictment for a vio-
lation of any of the provisions of law described in 
subsection (a), 
(2) there is reasonable cause to believe that an 
applicant for a license to export under this subtitle 
has violated any of the provisions of law described 
in subsection (a), or 
(3) an applicant for a license to export under 
this subtitle is ineligible to contract with, or to re-
ceive a license or other form of authorization to im-
port defense articles or defense services from, any 
Federal agency, 
the President may disapprove the export license applica-
tion. The President shall consider requests by the Sec-
retary of the Treasury to disapprove any export license 
application based on these criteria. 
(c) PROHIBITION ON ISSUANCE OF LICENSE TO EX-
PORT ITEMS ON THE USML.— 
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(1) IN GENERAL.—A license to export an item 
on the United States Munitions List may not be 
issued to a person— 
(A) if the person, or any party to the ex-
port, has been convicted of violating a provision 
of law described in subsection (a); or 
(B) if the person, or any party to the ex-
port, is at the time of the license review ineli-
gible to receive export licenses (or other forms 
of authorization to export) from any Federal 
agency. 
(2) EXCEPTION.—A license to export an item 
on the United States Munitions List may be issued 
to a person described in paragraph (1) if the Presi-
dent, after consultation with the Secretary of the 
Treasury, and after a thorough review of the cir-
cumstances surrounding the conviction or ineligi-
bility to export, determines that appropriate steps 
have been taken to mitigate any law enforcement 
concerns. 
SEC. 4374. STANDARDS TO IDENTIFY HIGH-RISK EXPORTS. 
The Secretary shall, in coordination with the heads 
of appropriate Federal agencies, develop standards for 
identifying high-risk defense articles for regular end-use 
verification. 
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427 
SEC. 4375. REQUIREMENT OF EXPORTERS TO REPORT 
SHIPMENT. 
As prescribed in regulations issued under this chap-
ter, a person to whom a license has been granted to export 
an item on the United States Munitions List shall, not 
later than 15 days after the item is exported, submit to 
the Department of State a report containing all shipment 
information, including a description of the item and the 
quantity, value, port of exit, and end-user and country of 
destination of the item. 
SEC. 4376. END-USE MONITORING OF DEFENSE ARTICLES 
AND DEFENSE SERVICES. 
(a) ESTABLISHMENT OF MONITORING PROGRAM.— 
(1) IN GENERAL.—In order to improve account-
ability with respect to defense articles and defense 
services sold, leased, or exported under this Act and 
predecessor Acts, the President shall establish a pro-
gram which provides for the end-use monitoring of 
the articles and services. 
(2) REQUIREMENTS OF PROGRAM.—To the ex-
tent practicable, the program shall be— 
(A) established and carried out in accord-
ance with the standards that apply for identi-
fying high-risk exports for regular end-use 
verification developed under section 4374 (com-
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428 
monly referred to as the ‘‘Blue Lantern’’ pro-
gram); and 
(B) designed to provide reasonable assur-
ance that— 
(i) the recipient is complying with the 
requirements imposed by the United States 
Government with respect to use, transfers, 
and security of defense articles and defense 
services; and 
(ii) the articles and services are being 
used for the purposes for which they are 
provided. 
(b) CONDUCT OF PROGRAM.—In carrying out the 
program established under subsection (a), the President 
shall ensure that the program— 
(1) provides for the end-use verification of de-
fense articles and defense services that incorporate 
sensitive technology, defense articles and defense 
services that are particularly vulnerable to diversion 
or other misuse, or defense articles or defense serv-
ices whose diversion or other misuse could have sig-
nificant consequences; and 
(2) prevents the diversion (through reverse en-
gineering or other means) of technology incorporated 
in defense articles. 
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429 
(c) REPORT TO CONGRESS.—As part of the annual 
congressional budget justification submitted under section 
9302, the President shall transmit to Congress a report 
describing the actions taken to implement this section, in-
cluding a detailed accounting of the costs and number of 
personnel associated with the monitoring program. 
(d) THIRD COUNTRY TRANSFERS.—For purposes of 
this section, defense articles and defense services sold, 
leased, or exported under this Act includes defense articles 
and defense services that are transferred to a third coun-
try or other third party and the numbers, range, and find-
ing of end-use monitoring of United States transfers of 
small arms and light weapons. 
SEC. 4377. FEES OF MILITARY SALES AGENTS AND OTHER 
PAYMENTS. 
(a) IN GENERAL.—In accordance with such regula-
tions as the Secretary may prescribe under subsection (b), 
the Secretary shall require adequate and timely reporting 
on political contributions, gifts, commissions and fees 
paid, or offered or agreed to be paid, by any person in 
connection with— 
(1) sales of defense articles or defense services, 
or of design and construction services under section 
4312; or 
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430 
(2) commercial sales of defense articles or de-
fense services licensed or approved under section 
4301, to or for the armed forces of a foreign country 
or international organization in order to solicit, pro-
mote, or otherwise to secure the conclusion of such 
sales. 
(b) REGULATIONS.—The regulations referred to in 
subsection (a) shall specify the amounts and the kinds of 
payments, offers, and agreements to be reported, and the 
form and timing of reports, and shall require reports on 
the names of sales agents and other persons receiving such 
payments. The Secretary shall by regulation require such 
recordkeeping as the Secretary determines is necessary. 
(c) PROHIBITION, LIMITATION, CONDITIONS.—The 
Secretary may, by regulation, prohibit, limit, or prescribe 
conditions with respect to such contributions, gifts, com-
missions, and fees as the President determines will be in 
furtherance of the purposes of this Act. 
(d) REQUIREMENT
FOR INCLUSION
IN PROCURE-
MENT CONTRACT.— 
(1) IN GENERAL.—No such contribution, gift, 
commission, or fee may be included, in whole or in 
part, in the amount paid under any procurement 
contract entered into under section 4312, unless the 
amount thereof is reasonable, allocable to such con-
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431 
tract, and not made to a person who has solicited, 
promoted, or otherwise secured such sale, or has 
held himself out as being able to do so, through im-
proper influence. 
(2) DEFINITION.—For the purposes of this sub-
section, the term ‘‘improper influence’’ means influ-
ence, direct or indirect, which induces or attempts to 
induce consideration or action by any employee or 
officer of a purchasing foreign government or inter-
national organization with respect to such purchase 
on any basis other than such consideration of merit 
as are involved in comparable United States procure-
ments. 
(e) 
AVAILABILITY
OF
INFORMATION
AND 
RECORDS.— 
(1) IN GENERAL.—All information reported to 
the Secretary and all records maintained by any per-
son pursuant to regulations prescribed under this 
section shall be available, upon request, to any 
standing committee of Congress or any sub-
committee thereof and to any Federal agency au-
thorized by law to have access to the books and 
records of the person required to submit reports or 
to maintain records under this section. 
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432 
(2) TERMS
AND
CONDITIONS.—Access by an 
Federal agency to records maintained under this 
section shall be on the same terms and conditions 
that govern access by the agency to the books and 
records of the person concerned. 
SEC. 4378. PROHIBITION ON INCENTIVE PAYMENTS. 
(a) PROHIBITION.—A United States person, or any 
employee, agent, or subcontractor thereof, may not, with 
respect to the sale or export of any defense article or de-
fense service to a foreign country, make any incentive pay-
ments for the purpose of satisfying, in whole or in part, 
any offset agreement with the country. 
(b) CIVIL PENALTIES.—Any person who violates the 
provisions of subsection (a) shall be subject to the imposi-
tion of civil penalties as provided for in subsection (c). 
(c) ENFORCEMENT.—In providing for the enforce-
ment of this section, the Secretary is authorized to exer-
cise the same powers concerning violations and enforce-
ment and imposition of civil penalties that are conferred 
upon Federal agencies and officials by subsections (c), (d), 
(e), and (f) of section 11 of the Export Administration 
Act of 1979 and section 12(a) of such Act (as continued 
in effect under the International Emergency Economic 
Powers Act), subject to the same terms and conditions as 
are applicable to such powers under such Act, except that 
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433 
section 11(c)(2)(B) of such Act shall not apply, and in-
stead, as prescribed in regulations issued under this sec-
tion, the Secretary may assess civil penalties for violations 
of this Act and regulations prescribed thereunder and fur-
ther may commence a civil action to recover such civil pen-
alties, and except further that notwithstanding section 
11(c) of that Act, the civil penalty for each violation of 
this section may not exceed $500,000 or five times the 
amount of the prohibited incentive payment, whichever is 
greater. 
CHAPTER 6—CONGRESSIONAL REVIEW OF 
ARMS SALES 
SEC. 4381. REPORTS ON COMMERCIAL AND GOVERN-
MENTAL 
MILITARY 
EXPORTS; 
CONGRES-
SIONAL ACTION. 
(a) IN GENERAL.—The Secretary shall transmit to 
the appropriate congressional committees not later than 
60 days after the end of each calendar quarter an unclassi-
fied report (except that any material which was trans-
mitted in classified form under subsection (b)(1) or (c)(1) 
may be contained in a classified addendum to such report, 
and any letter of offer referred to in paragraph (1) may 
be listed in such addendum unless such letter of offer has 
been the subject of an unclassified certification pursuant 
to subsection (b)(1), and any information provided under 
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434 
paragraph (11) may also be provided in a classified adden-
dum) containing— 
(1) a listing of all letters of offer to sell any 
major defense equipment for $1,000,000 or more 
under this Act to each foreign country and inter-
national organization, by category, if such letters of 
offer have not been accepted or canceled; 
(2) a listing of all such letters of offer that have 
been accepted during the fiscal year in which such 
report is submitted, together with the total value of 
all defense articles and defense services sold to each 
foreign country and international organization dur-
ing such fiscal year; 
(3) the cumulative dollar amounts, by foreign 
country and international organization, of sales cred-
it agreements under section 4251 made during the 
fiscal year in which such report is submitted; 
(4) a numbered listing of all licenses and ap-
provals for the export to each foreign country and 
international organization during such fiscal year of 
commercially sold major defense equipment, by cat-
egory, sold for $1,000,000 or more, together with 
the total value of all defense articles and defense 
services so licensed for each foreign country and 
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435 
international organization, setting forth, with respect 
to the listed major defense equipment— 
(A) the items to be exported under the li-
cense; 
(B) the quantity and contract price of each 
such item to be provided; and 
(C) the name and address of the ultimate 
user of each such item; 
(5) projections of the dollar amounts, by foreign 
country and international organization, of sales ex-
pected to be made under sections 4311 and 4312, in 
the quarter of the fiscal year immediately following 
the quarter for which such report is submitted; 
(6) a projection with respect to all sales ex-
pected to be made to each country and organization 
for the remainder of the fiscal year in which such re-
port is transmitted; 
(7) a description of each payment, contribution, 
gift, commission, or fee reported to the Secretary 
under section 4377, including— 
(A) the name of the person who made such 
payment, contribution, gift, commission, or fee; 
(B) the name of any sales agent or other 
person to whom such payment, contribution, 
gift, commission, or fee was paid; 
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436 
(C) the date and amount of such payment, 
contribution, gift, commission, or fee; 
(D) a description of the sale in connection 
with which such payment, contribution, gift, 
commission, or fee was paid; and 
(E) the identification of any business infor-
mation considered confidential by the person 
submitting it which is included in the report; 
(8) a listing of each sale under section 4251 
during the quarter for which such report is made, 
specifying— 
(A) the purchaser; 
(B) the Federal agency responsible for im-
plementing the sale; 
(C) an estimate of the dollar amount of the 
sale; and 
(D) a general description of the real prop-
erty facilities to be constructed pursuant to 
such sale; 
(9) a listing of each export of defense articles 
under section 4311 during the quarter for which re-
port is made, specifying the recipient, the defense 
article, the dollar amount of the export, and a de-
scription of the cooperative agreement pursuant to 
which the export was made; 
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437 
(10) a listing of the consents to third-party 
transfers of defense articles or defense services 
which were granted, during the quarter for which 
such report is submitted, if the value (in terms of 
original acquisition cost) of the defense articles or 
defense services to be transferred is $1,000,000 or 
more; 
(11) a listing of all munitions items that were 
sold, leased, or otherwise transferred by the Depart-
ment of Defense to any other Federal agency during 
the quarter for which such report is submitted (in-
cluding the name of the recipient agency and a dis-
cussion of what the agency will do with those muni-
tions items) if— 
(A) the value of the munitions items was 
$250,000 of more, and 
(B) the value of all munitions items trans-
ferred to the Federal agency during that quar-
ter was $250,000 or more, 
excluding munitions items transferred (i) for disposi-
tion or use solely within the United States, or (ii) 
for use in connection with intelligence activities sub-
ject to reporting requirements under title V of the 
National Security Act of 1947 (50 U.S.C. 413 et 
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438 
seq.; relating to congressional oversight of intel-
ligence activities); 
(12) a report on all concluded government-to- 
government agreements regarding foreign coproduc-
tion of defense articles of United States origin and 
all other concluded agreements involving coproduc-
tion or licensed production outside of the United 
States of defense articles of United States origin (in-
cluding coproduction memoranda of understanding 
or agreement) that have not been previously re-
ported under this subsection, which shall include— 
(A) the identity of the foreign countries, 
international organizations, or foreign firms in-
volved; 
(B) a description and the estimated value 
of the articles authorized to be produced, and 
an estimate of the quantity of the articles au-
thorized to be produced; 
(C) a description of any restrictions on 
third-party transfers of the foreign-manufac-
tured articles; and 
(D) if any such agreement does not pro-
vide for United States access to and verification 
of quantities of defense articles produced out-
side the United States and their disposition in 
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439 
the foreign country, a description of alternative 
measures and controls incorporated in the co-
production or licensing program to ensure com-
pliance with restrictions in the agreement on 
production quantities and third-party transfers; 
(13) a report on all exports of significant mili-
tary equipment for which information has been pro-
vided pursuant to section 4375; and 
(14) copies of security assistance surveys con-
ducted by United States Government personnel for 
the calendar quarter for which the report is trans-
mitted. 
(b) ADDITIONAL INFORMATION.—For each letter of 
offer to sell under paragraphs (1) and (2) of subsection 
(a), the report shall specify— 
(1) the foreign country or international organi-
zation to which the defense article or defense service 
is offered or was sold, as the case may be; 
(2) the dollar amount of the offer to sell or the 
sale and the number of defense articles offered or 
sold, as the case may be; 
(3) a description of the defense article or de-
fense service offered or sold, as the case may be; and 
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440 
(4) the United States Armed Forces or Federal 
agency that is making the offer to sell or the sale, 
as the case may be. 
SEC. 4382. CONGRESSIONAL CERTIFICATION OF SENSITIVE 
FOREIGN 
MILITARY 
SALES 
AND 
AGREE-
MENTS. 
(a) IN GENERAL.—The President shall submit to the 
appropriate congressional committees a numbered certifi-
cation with respect to any letter of offer to sell, or an ap-
plication by a person for a license for the export of, pursu-
ant to this or any other Act, the following to a foreign 
country or international organization: 
(1) Major defense equipment of a type that 
have not been sold to the country or organization for 
$25,000,000 or more. 
(2) Major defense equipment of a type that 
have been sold to the country or organization but 
are significantly different in terms of capability from 
those previously sold, for $25,000,000 or more. 
(3) Fixed- or rotary-wing aircraft, whether 
flown remotely or by an onboard pilot, primarily 
used for military purposes; navigation, sensors, sen-
sitive components; and engines for same and sen-
sitive components of such engines. 
(4) Radars for military end-use. 
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441 
(5) Guided or ballistic missiles, regardless of 
mode of launch. 
(6) Firearms, close assault weapons, and com-
bat shotguns over $1,000,000. 
(7) Night vision devices. 
(8) Naval vessels, both surface vessels (above 
3,000 tons) and submersibles. 
(9) Toxicological Agents and associated equip-
ment, for $25,000,000 or more. 
(10) Tanks (including significant components) 
and armored vehicle chassis, regardless of armament 
or lack thereof. 
(11) Other defense articles and defense services 
for $100,000,000 or more. 
(12) Military-related design and construction 
services for $300,000,000 or more. 
(b) CERTIFICATION.—The following requirements 
shall apply with respect to the submission of a numbered 
certification under subsection (a): 
(1) Before a United States commercial tech-
nical assistance or manufacturing licensing agree-
ment that involves the manufacture outside the 
United States of any sensitive military equipment is 
approved under section 4301, the Secretary shall 
transmit to the appropriate congressional commit-
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442 
tees an unclassified numbered certification with re-
spect to the agreement. 
(2) Each numbered certification shall specify— 
(A) the foreign country or international or-
ganization to which the defense article or de-
fense service is offered or was sold, as the case 
may be; 
(B) the dollar amount of the offer to sell 
or the sale and the number of defense articles 
offered or sold, as the case may be; 
(C) a description of the defense article or 
defense service offered or sold, as the case may 
be; and 
(D) the United States Armed Forces or 
Federal agency that is making the offer to sell 
or the sale, as the case may be. 
(3) For commercial technical assistance or 
manufacturing licensing agreements, each numbered 
certification shall specify— 
(A) the purchaser; 
(B) the Federal agency responsible for im-
plementing the sale; 
(C) an estimate of the dollar amount of the 
sale; and 
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443 
(D) a general description of the real prop-
erty facilities to be constructed pursuant to 
such sale. 
(c) ADDITIONAL
INFORMATION.—Each numbered 
certification submitted under subsection (a) shall also con-
tain information on the following: 
(1) A description, containing the information 
described in section 4381(a)(7), of any contribution, 
gift, commission, or fee paid or offered or agreed to 
be paid in order to solicit, promote, or otherwise to 
secure the letter of offer relating to the numbered 
certification. 
(2) An item, classified if necessary, identifying 
the sensitivity of technology contained in the defense 
articles, defense services, or design and construction 
services proposed to be sold, and a detailed justifica-
tion of the reasons necessitating the sale of the arti-
cles, services, or design and construction services in 
view of the sensitivity of the technology. 
(3) In a case in which the defense articles or 
defense services listed on the Missile Technology 
Control Regime Annex are intended to support the 
design, development, or production of a Category I 
space launch vehicle system, the certification shall 
also include a description of the proposed export and 
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rationale for approving such export, including the 
consistency of such export with United States mis-
sile nonproliferation policy. 
(4) Each numbered certification shall contain 
an item indicating whether any offset agreement is 
proposed to be entered into in connection with such 
letter of offer to sell (if known on the date of trans-
mittal of such certification). 
(d) FORM.—A numbered certification transmitted 
pursuant to subsection (a) shall be in unclassified form, 
except that the information specified in paragraphs (2) 
and (3) of section 4381(b) and the details of the descrip-
tion specified in subsections (b) and (c) may be classified 
if the public disclosure thereof would be clearly detri-
mental to the security of the United States, in which case 
the information shall be accompanied by a description of 
the damage to the national security that could be expected 
to result from public disclosure of the information. 
(e) CONSULTATION.—The Secretary shall consult 
with the appropriate congressional committees prior to the 
notification of a letter of offer, an application to export, 
or the conclusion of an commercial technical assistance 
agreement or a manufacturing license agreement. 
(f) COMMITTEE INFORMATION REQUEST.—The Sec-
retary shall, upon the request of an appropriate congres-
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sional committee, transmit promptly to both such commit-
tees a statement setting forth, to the extent specified in 
such request— 
(1) a detailed description of the defense articles, 
defense services, or design and construction services 
to be offered, including a brief description of the ca-
pabilities of any defense article to be offered; 
(2) an estimate of the number of officers and 
employees of the United States Government and of 
United States civilian contract personnel expected to 
be needed in such country to carry out the proposed 
sale; 
(3) the name of each contractor expected to 
provide the defense article, defense service, or design 
and construction services proposed to be sold and a 
description of any offset agreement with respect to 
such sale; 
(4) an evaluation, prepared by the Secretary in 
consultation with the Secretary of Defense and the 
Director of Central Intelligence, of the manner, if 
any, in which the proposed sale would— 
(A) contribute to an arms race; 
(B) support international terrorism; 
(C) increase the possibility of an outbreak 
or escalation of conflict; 
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(D) prejudice the negotiation of any arms 
controls; 
(E) adversely affect the arms control or 
nonproliferation policy of the United States; 
(F) support blackmarket or greymarket 
trade in arms, either those transferred or obso-
lete arms to be replaced by the arms sale; or 
(G) require the transfer of United States 
arms sensitive technology or manufacturing 
techniques as a condition of the arms sale, and 
the impact of such transfer on the United 
States manufacturing base, including on jobs 
based in the United States; 
(5) the reasons why the foreign country or 
international organization to which the sale is pro-
posed to be made needs the defense articles, defense 
services, or design and construction services which 
are the subject of such sale and a description of how 
such country or organization intends to use such de-
fense articles, defense services, or design and con-
struction services; 
(6) an analysis of the impact of the proposed 
sale on the military stocks and the military pre-
paredness of the United States; 
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(7) the reasons why the proposed sale is in the 
national interest of the United States; 
(8) an analysis of the impact of the proposed 
sale on the military capabilities of the foreign coun-
try or international organization to which such sale 
would be made; 
(9) an analysis of how the proposed sale would 
affect the relative military strengths of countries in 
the region to which the defense articles, defense 
services, or design and construction services which 
are the subject of such sale would be delivered and 
whether other countries in the region have com-
parable kinds and amounts of defense articles, de-
fense services, or design and construction services; 
(10) an estimate of the levels of trained per-
sonnel and maintenance facilities of the foreign 
country or international organization to which the 
sale would be made which are needed and available 
to utilize effectively the defense articles, defense 
services, or design and construction services pro-
posed to be sold; 
(11) an analysis of the extent to which com-
parable kinds and amounts of defense articles, de-
fense services, or design and construction services 
are available from other countries; 
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(12) an analysis of the impact of the proposed 
sale on United States relations with the countries in 
the region to which the defense articles, defense 
services, or design and construction services which 
are the subject of such sale would be delivered; 
(13) a detailed description of any agreement 
proposed to be entered into by the United States for 
the purchase or acquisition by the United States of 
defense articles, defense services, design and con-
struction services or defense equipment, or other ar-
ticles, services, or equipment of the foreign country 
or international organization in connection with, or 
as consideration for, such letter of offer, including 
an analysis of the impact of such proposed agree-
ment upon United States business concerns which 
might otherwise have provided such articles, services, 
or equipment to the United States, an estimate of 
the costs to be incurred by the United States in con-
nection with such agreement compared with costs 
which would otherwise have been incurred, an esti-
mate of the economic impact and unemployment 
which would result from entering into such proposed 
agreement, and an analysis of whether such costs 
and such domestic economic impact justify entering 
into such proposed agreement; 
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(14) the projected delivery dates of the defense 
articles, defense services, or design and construction 
services to be offered; 
(15) a detailed description of weapons and lev-
els of munitions that may be required as support for 
the proposed sale; 
(16) an analysis of the relationship of the pro-
posed sale to projected procurements of the same 
item, and 
(17) an analysis, classified if necessary, of the 
security to be provided by the proposed recipient of 
the arms sale on the defense articles and defense 
services, both against external and internal security 
threats, including espionage. 
SEC. 4383. UPGRADE OR ENHANCEMENT. 
(a) IN GENERAL.—If, before the delivery of any 
major defense article or major defense equipment, or the 
furnishing of any defense service or design and construc-
tion service, sold pursuant to a letter of offer or a contract 
pursuant to a license described in section 4382, the sensi-
tivity of technology or the capability of the article, equip-
ment, or service is enhanced or upgraded from the level 
of sensitivity or capability described in the numbered cer-
tification with respect to an offer to sell such article, 
equipment, or service, then, at least 45 days before the 
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delivery of such article or equipment or the furnishing of 
such service, the President shall prepare and transmit to 
the chairman of the Committee on Foreign Affairs of the 
House of Representatives and the chairman of the Com-
mittee on Foreign Relations of the Senate a report— 
(1) describing the manner in which the tech-
nology or capability has been enhanced or upgraded 
and describing the significance of such enhancement 
or upgrade; and 
(2) setting forth a detailed justification for such 
enhancement or upgrade. 
(b) APPLICATION.—The provisions of subsection (a) 
apply to an article or equipment delivered, or a service 
furnished, within 10 years after the transmittal to the 
Congress of a numbered certification with respect to the 
sale of such article, equipment, or service. 
(c) NEW NUMBERED CERTIFICATION.— 
(1) IN GENERAL.—If the enhancement or up-
grade in the sensitivity of technology or the capa-
bility of major defense equipment, defense articles, 
defense services, or design and construction services 
described in a numbered certification submitted 
under this section costs $14,000,000 or more in the 
case of any major defense equipment, $50,000,000 
or more in the case of defense articles or defense 
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744 
SEC. 10507. LIMITATION ON ASSISTANCE TO COUNTRIES IN 
DEFAULT. 
No assistance made available under this Act may be 
made available for new loans to the government of any 
country which is in default, during a period in excess of 
six calendar months, in payment to the United States of 
principal or interest on any loan made to such country 
under this Act, unless— 
(1) such country meets its obligations under the 
existing loan; or 
(2) the Secretary determines that new loans to 
such government are in the national interest and no-
tifies the appropriate congressional committees of 
such determination. 
SEC. 10508. PROHIBITION ON PROMOTION OF TOBACCO. 
No foreign assistance may be made available to pro-
mote the sale or export of tobacco or tobacco products, 
or to seek the reduction or removal by any foreign country 
of restrictions on the marketing of tobacco or tobacco 
products, except to ensure that restrictions are applied 
equally to all tobacco or tobacco products of the same type. 
SEC. 10509. PROHIBITION ON ASSISTANCE FOR OFFICIAL 
GIFTS. 
No assistance made available under this Act may be 
used to pay for a gift to an official of a foreign govern-
ment. 
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