461 
retary deems such action to be advisable. Nothing in 
this paragraph may be construed as limiting the reg-
ulatory authority of the President under this Act. 
(3) AUTHORIZATION
OF
APPROPRIATIONS.— 
There are authorized to be appropriated from time 
to time such sums as may be necessary— 
(A) to refund moneys received from pur-
chasers under contracts of sale entered into 
under sections 4311, 4312, 4324, and 4351, or 
under contracts entered into under section 
4282, that are canceled or suspended under this 
subsection to the extent such moneys have pre-
viously been disbursed to private contractors 
and United States Government agencies for 
work in progress; and 
(B) to pay such damages and costs that 
accrue from the corresponding cancellation or 
suspension of the existing procurement con-
tracts or Federal agency work orders involved. 
(f) CIVILIAN CONTRACT PERSONNEL.—The Presi-
dent shall, to the maximum extent possible and consistent 
with the purposes of this title, use civilian contract per-
sonnel in any foreign country to perform defense services 
sold under this title. 
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462 
SEC. 4402. ADMINISTRATIVE EXPENSES. 
(a) IN GENERAL.—Funds made available under other 
provisions of law for the operations of Federal agencies 
carrying out functions under this title shall be available 
for the administrative expenses incurred by such agencies 
under this title. 
(b) RECOVERY OF EXPENSES.—Charges for adminis-
trative services calculated under section 4314(a)(1) shall 
include recovery of administrative expenses and official re-
ception and representation expenses incurred by any Fed-
eral agency, including any mission or group thereof, in 
carrying out functions under this title if— 
(1) such functions are primarily for the benefit 
of any foreign country; 
(2) such expenses are not directly and fully 
charged to, and reimbursed from amounts received 
for, sale of defense services under section 4311; and 
(3) such expenses are neither salaries of the 
United States Armed Forces nor represent unfunded 
estimated costs of civilian retirement and other ben-
efits. 
(c) OFFICIAL RECEPTION
AND REPRESENTATION 
EXPENSES.—Not more than $86,500 of the funds derived 
from charges for administrative services pursuant to sec-
tion 4314(a)(1) may be used each fiscal year for official 
reception and representation expenses. 
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463 
SEC. 4403. DETAIL OF APPROPRIATE PERSONNEL. 
The President may detail, as necessary, to the De-
partment of State appropriate personnel from any other 
Federal agency on a nonreimbursable basis, to assist in 
the initial screening of applications for export licenses 
under this subtitle in order to determine the need for fur-
ther review of those applications for foreign policy, na-
tional security, and law enforcement concerns. 
SEC. 4404. RULE OF CONSTRUCTION. 
Nothing in this title shall be construed as modifying 
in any way the provisions of the Atomic Energy Act of 
1954 or section 7307 of title 10, United States Code. 
SEC. 4405. PERFORMANCE GOALS FOR PROCESSING OF AP-
PLICATIONS 
FOR 
LICENSES 
TO 
EXPORT 
ITEMS ON UNITED STATES MUNITIONS LIST. 
(a) IN GENERAL.—The Secretary shall establish and 
maintain the following goals: 
(1) The processing time for review of each ap-
plication for a license to export items on the United 
States Munitions List (other than a Manufacturing 
License Agreement) shall be not more than 60 days 
from the date of receipt of the application. 
(2) The processing time for review of each ap-
plication for a commodity jurisdiction determination 
shall be not more than 60 days from the date of re-
ceipt of the application. 
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464 
(3) The total number of applications described 
in paragraph (1) that are unprocessed shall be not 
more than 7 percent of the total number of such ap-
plications submitted in the preceding calendar year. 
(b) ADDITIONAL REVIEW.— 
(1) IN GENERAL.—If an application described 
in paragraph (1) or (2) of subsection (a) is not proc-
essed within the time period described in the respec-
tive paragraph of such subsection, then the Sec-
retary shall ensure that the appropriate managing 
official shall review the status of the application to 
determine if further action is required to process the 
application. 
(2) ADDITIONAL REQUIREMENTS.—If an appli-
cation described in paragraph (1) or (2) of sub-
section (a) is not processed within 90 days from the 
date of receipt of the application, then the appro-
priate managing official shall— 
(A) review the status of the application to 
determine if further action is required to proc-
ess the application; and 
(B) submit to the appropriate congres-
sional committees a notification of the review 
conducted under subparagraph (A), including a 
description of the application, the reason for 
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465 
delay in processing the application, and a pro-
posal for further action to process the applica-
tion. 
(3) ANNUAL REVIEW.—For each calendar year, 
the appropriate managing official shall review not 
less than 2 percent of the total number of applica-
tions described in paragraphs (1) and (2) of sub-
section (a) to ensure that the processing of such ap-
plications, including decisions to approve, deny, or 
return without action, is consistent with both the 
foreign policy and regulatory requirements of the 
United States. 
(c) STATEMENTS OF POLICY.— 
(1) UNITED STATES ALLIES.—Congress states 
that— 
(A) to ensure that, to the maximum extent 
practicable, the processing time for review of 
applications to export items to United States al-
lies in direct support of combat operations or 
peacekeeping or humanitarian operations with 
the United States Armed Forces is not more 
than 7 days from the date of receipt of the ap-
plication; and 
(B) the Secretary shall ensure that, to the 
maximum extent practicable, the processing 
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time for review of applications described in sub-
section (a)(1) to export items that are not sub-
ject to the requirements of chapter 6 to a stra-
tegic United States ally, and, as appropriate, 
other major United States allies for any pur-
pose other than the purpose described in para-
graph (1) is not more than 30 days from the 
date of receipt of the application. 
(2) PRIORITY FOR APPLICATIONS FOR EXPORT 
OF U.S.-ORIGIN EQUIPMENT.—In meeting the goals 
established by this section, the Secretary shall 
prioritize the processing of applications for licenses 
and agreements necessary for the export of United 
States-origin equipment over applications for Manu-
facturing License Agreements. 
(d) REPORT.—Not later than 180 days after the date 
of the enactment of this Act, and not later than 1 year 
thereafter, the Secretary shall submit to the appropriate 
congressional committees a report that contains a detailed 
description of— 
(1)(A) the average processing time for and 
number of applications described in subsection 
(a)(1) to— 
(i) a strategic United States ally; 
(ii) a major United States ally; and 
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(iii) any other country; and 
(B) to the extent practicable, the average proc-
essing time for and number of applications described 
in subsection (b)(1) by item category; 
(2) the average processing time for and number 
of applications described in subsection (a)(2); 
(3) the average processing time for and number 
of applications for agreements described in part 124 
of title 22, Code of Federal Regulations (relating to 
the International Traffic in Arms Regulations), 
other than Manufacturing License Agreements; 
(4) the average processing times for applica-
tions for Manufacturing License Agreements; 
(5) any management decisions of the Direc-
torate of Defense Trade Controls of the Department 
of State that have been made in response to data 
contained in paragraphs (1) through (3); and 
(6) any advances in technology that will allow 
the time-frames described in subsection (a)(1) to be 
substantially reduced. 
(e) CONGRESSIONAL BRIEFINGS.—If, at the end of 
any month beginning after the date of the enactment of 
this Act, the total number of applications described in sub-
section (a)(1) that are unprocessed is more than 7 percent 
of the total number of such applications submitted in the 
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468 
preceding calendar year, then the Secretary shall ensure 
that the Assistant Secretary for Political-Military Affairs 
shall brief the appropriate congressional committees on 
such matters and the corrective measures that will be 
taken to comply with the requirements of subsection (a). 
(f) TRANSPARENCY OF COMMODITY JURISDICTION 
DETERMINATIONS.— 
(1) IN
GENERAL.—To the maximum extent 
practicable, commodity jurisdiction determinations 
made as the appropriate controls to be applied to 
commodities shall be made public. 
(2) PUBLICATION ON DEPARTMENT OF STATE’S 
INTERNET WEBSITE.—The Secretary shall— 
(A) publish a commodity jurisdiction deter-
mination referred to in paragraph (1) on the 
Internet website of the Department of State not 
later than 30 days after the date of the deter-
mination, which includes— 
(i) the name of the manufacturer of 
the item; 
(ii) a brief general description of the 
item; 
(iii) the model or part number of the 
item; and 
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469 
(iv) the designation under which the 
item has been designated, except that— 
(I) the name of the person or 
business organization that sought the 
commodity jurisdiction determination 
shall not be published if the person or 
business organization is not the man-
ufacturer of the item; and 
(II) the names of the customers, 
the price of the item, and any propri-
etary information relating to the item 
indicated by the person or business 
organization that sought the com-
modity 
jurisdiction 
determination 
shall not be published; and 
(B) maintain on the Internet website of 
the Department of State an archive, that is ac-
cessible to the general public and other depart-
ments and agencies of the United States, of the 
information published under subparagraph (A). 
(g) RULE OF CONSTRUCTION.—Nothing in this sec-
tion shall be construed to prohibit the President from un-
dertaking a thorough review of the national security and 
foreign policy implications of a proposed export of items 
on the United States Munitions List. 
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470 
SEC. 4406. AVAILABILITY OF INFORMATION ON THE STATUS 
OF LICENSE APPLICATIONS. 
(a) IN GENERAL.—The Secretary shall make avail-
able to persons who have pending license applications 
under this chapter and the appropriate congressional com-
mittees the ability to access electronically current informa-
tion on the status of each license application required to 
be submitted under this chapter. 
(b) MATTERS TO BE INCLUDED.—The information 
referred to in subsection (a) shall be limited to the fol-
lowing: 
(1) The case number of the license application. 
(2) The date on which the license application is 
received by the Department of State and becomes an 
‘‘open application’’. 
(3) The date on which the Directorate of De-
fense Trade Controls makes a determination with re-
spect to the license application or transmits it for 
interagency review, if required. 
(4) The date on which the interagency review 
process for the license application is completed, if 
such a review process is required. 
(5) The date on which the Department of State 
begins consultations with the appropriate congres-
sional committees with respect to the license applica-
tion. 
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471 
(6) The date on which the license application is 
sent to the appropriate congressional committees. 
SEC. 4407. REQUIREMENT TO ENSURE ADEQUATE STAFF 
AND RESOURCES FOR THE DIRECTORATE OF 
DEFENSE TRADE CONTROLS OF THE DEPART-
MENT OF STATE. 
(a) REQUIREMENT.—The Secretary shall ensure that 
there are the necessary staff and resources to carry out 
this subtitle. 
(b) MINIMUM NUMBER OF LICENSING OFFICERS.— 
The Secretary should ensure that there is at least 1 licens-
ing officer for every 1,250 applications for licenses and 
other authorizations to export items on the United States 
Munitions List or successor list. 
(c) MINIMUM NUMBER OF STAFF FOR COMMODITY 
JURISDICTION DETERMINATIONS.—The Secretary shall 
ensure that the Directorate of Defense Trade Controls 
has, to the extent practicable, not less than three individ-
uals assigned to review applications for commodity juris-
diction determinations. 
SEC. 4408. OVERSEAS MANAGEMENT OF ASSISTANCE AND 
SALES PROGRAMS. 
(a) IN GENERAL.—In order to carry out the Presi-
dent’s responsibilities for the management of international 
security assistance programs conducted under this title, 
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472 
the President may assign members of the United States 
Armed Forces, personnel of the Department of Defense, 
the Department of State, or any other Federal agency, 
to a foreign country to perform one or more of the fol-
lowing functions: 
(1) Equipment and services case management. 
(2) Training management. 
(3) Program monitoring. 
(4) Evaluation and planning of the host govern-
ment’s military capabilities and requirements. 
(5) Administrative support. 
(6) Promoting rationalization, standardization, 
interoperability, and other defense cooperation meas-
ures. 
(7) Liaison functions exclusive of advisory and 
training assistance. 
(b) ADVISORY AND TRAINING ASSISTANCE.—Advi-
sory and training assistance conducted by military per-
sonnel assigned under this section shall be kept to an ab-
solute minimum. It is the sense of Congress that advisory 
and training assistance conducted in countries to which 
military personnel are assigned under this section should 
be provided primarily by other personnel who are not as-
signed under this section and who are detailed for limited 
periods to perform specific tasks. 
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473 
(c) LIMITATION ON NUMBER OF UNITED STATES 
ARMED FORCES MEMBERS.— 
(1) LIMITATION.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (C), the number of members of 
the United States Armed Forces assigned to a 
foreign country under this section in a fiscal 
year may not exceed 12 unless specifically au-
thorized by Congress. 
(B) WAIVER.—The President may waive 
the limitation in subparagraph (A) with respect 
to the number of members of the United States 
Armed Forces assigned to a foreign country if 
the President determines and reports to the ap-
propriate congressional committees 30 days 
prior to the introduction of the additional mem-
bers of the United States Armed Forces in the 
foreign country, that United States national in-
terests require that more than 12 members of 
the United States Armed Forces be assigned 
under this section to carry out international se-
curity assistance programs in the foreign coun-
try. 
(C) EXEMPTED COUNTRIES.—The limita-
tion in subparagraph (A) shall not apply with 
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474 
respect to Pakistan, Tunisia, El Salvador, Hon-
duras, Israel, Colombia, Indonesia, the Republic 
of Korea, the Philippines, Thailand, Egypt, Jor-
dan, Morocco, Saudi Arabia, Greece, Portugal, 
Spain, and Turkey. 
(2) 
CONGRESSIONAL
BUDGET
JUSTIFICA-
TION.—The total number of members of the United 
States Armed Forces assigned to a foreign country 
under this section in a fiscal year may not exceed 
the number justified to Congress for that country in 
the congressional budget justification documents for 
that fiscal year, unless the appropriate congressional 
committees are notified 30 days in advance of the 
introduction of the additional members of the United 
States Armed Forces. 
(d) COSTS.—The entire costs (excluding salaries of 
members of the United States Armed Forces (other than 
the Coast Guard)) of overseas management of inter-
national security assistance programs under this section 
shall be charged to or reimbursed from funds made avail-
able to carry out this chapter, other than any such costs 
which are either paid directly for such defense services 
under section 4311 or reimbursed from charges for serv-
ices collected from foreign governments pursuant to sec-
tion 4311 and section 4402. 
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475 
(e) SUPERVISION OF CHIEF OF DIPLOMATIC MIS-
SION.—Members of the United States Armed Forces as-
signed to a foreign country under this section shall serve 
under the direction and supervision of the Chief of the 
United States Diplomatic Mission to that country. 
(f) GUIDANCE REGARDING PURCHASES.—The Presi-
dent shall continue to instruct United States diplomatic 
and military personnel in United States missions that such 
personnel should not encourage, promote, or influence the 
purchase by any foreign country of United States-made 
military equipment, unless such personnel are specifically 
instructed to do so by an appropriate official of the execu-
tive branch. 
SEC. 4409. DESIGNATION OF MAJOR UNITED STATES AL-
LIES. 
(a) NOTICE TO CONGRESS.—The President shall no-
tify Congress in writing at least 30 days before— 
(1) designating a country as a major United 
States ally for purposes of this Act; or 
(2) terminating such a designation. 
(b) INITIAL
DESIGNATIONS.—Egypt, Argentina, 
Pakistan, Bahrain, the Philippines, Jordan, Thailand, Ku-
wait, and Morocco shall be deemed to have been so des-
ignated by the President as of the date of the enactment 
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476 
of this Act, and the President is not required to notify 
Congress of such designation of those countries. 
SEC. 4410. DEPLETED URANIUM AMMUNITION. 
(a) PROHIBITION.—Except as provided in subsection 
(b), none of the funds made available to carry out this 
Act or any other Act may be made available to facilitate 
in any way the sale of M833 or M900 antitank shells or 
any comparable antitank shells containing a depleted ura-
nium penetrating component to any country other than 
a country that is a strategic United States ally. 
(b) EXCEPTION.—The prohibition in subsection (a) 
shall not apply with respect to the use of funds to facilitate 
the sale of antitank shells to a country if the President 
determines that to do so is in the national security interest 
of the United States. 
SEC. 4411. DEFINITIONS. 
In this title: 
(1) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional com-
mittees’’ means— 
(A) the Committee on Foreign Affairs and 
the Committee on Appropriations of the House 
of Representatives; and 
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477 
(B) the Committee on Foreign Relations 
and the Committee on Appropriations of the 
Senate. 
(2) CASH FLOW FINANCING.—The term ‘‘cash 
flow financing’’ means the dollar amount of the dif-
ference between the total estimated price of a Letter 
of Offer and Acceptance or other purchase agree-
ment that has been approved for financing under 
this title and the amount of the financing that has 
been approved therefor. 
(3) CATEGORY I SPACE LAUNCH VEHICLE SYS-
TEM.—The term ‘‘Category I space launch vehicle 
system’’ means a category I system as defined in the 
MTCR Annex for the launching of payloads into 
outer space, as well as the specially designed produc-
tion facilities for these systems. 
(4) DEFENSE ARTICLE.— 
(A) IN GENERAL.—The term ‘‘defense arti-
cle’’— 
(i) includes— 
(I) any weapon, weapons system, 
munition, aircraft, vessel, boat, or 
other implement of war and related 
technical data; 
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478 
(II) any property, installation, 
commodity, material, equipment, sup-
ply, or goods used for the purposes of 
making military sales; 
(III) any machinery, facility, tool, 
material, supply, or other item nec-
essary for the manufacture, produc-
tion, processing, repair, servicing, 
storage, construction, transportation, 
operation, or use of any article listed 
in this paragraph; and 
(IV) any significant component 
or part of any article listed in this 
paragraph that has been specifically 
designed or significantly modified for 
a military application; but 
(ii) does not include— 
(I) merchant vessels; or 
(II) source material (except ura-
nium depleted in the isotope 235 
which is incorporated in defense arti-
cles solely to take advantage of high 
density or pyrophoric characteristics 
unrelated to radioactivity), byproduct 
material, special nuclear material, 
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479 
production facilities, utilization facili-
ties, or atomic weapons or articles in-
volving Restricted Data, as defined by 
the Atomic Energy Act of 1954. 
(B) ADDITIONAL
TERMS.—In subpara-
graph (A)(i)(IV)— 
(i) the term ‘‘significant component or 
part’’ means a component or part that is 
essential to a military function; and 
(ii) the term ‘‘significantly modified’’ 
means a modification that constitutes an 
alteration of 25 percent or greater of the 
component or part from a non-military 
version. 
(5) DEFENSE SERVICE.— 
(A) IN
GENERAL.—The term ‘‘defense 
service’’— 
(i) includes any service, test, inspec-
tion, repair, training, publication, technical 
or other assistance, or defense information 
used for the purposes of making military 
sales; but 
(ii) does not include design and con-
struction services under section 4311. 
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480 
(B) ADDITIONAL TERM.—In subparagraph 
(A)(i), the term ‘‘defense information’’ includes 
any document, writing, sketch, photograph, 
plan, model, specification, design, prototype, or 
other recorded or oral information relating to 
any defense article or defense service, but does 
not include Restricted Data as defined by the 
Atomic Energy Act of 1954 and data removed 
from the Restricted Data category under sec-
tion 142d of that Act. 
(6) DESIGN AND CONSTRUCTION SERVICES.— 
The term ‘‘design and construction services’’ means, 
with respect to sales under section 4251, the design 
and construction of real property facilities, including 
necessary construction equipment and materials, en-
gineering services, construction contract manage-
ment services relating thereto, and technical advi-
sory assistance in the operation and maintenance of 
real property facilities provided or performed by the 
Department of Defense or by a contractor pursuant 
to a contract with such department or agency. 
(7) END ITEM.—The term ‘‘end item’’ means 
an assembled article that is ready for its intended 
use and for which only ammunition, fuel, or another 
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481 
energy source is required to place the item in its op-
erating state. 
(8) EXCESS
DEFENSE
ARTICLE.—The term 
‘‘excess defense article’’ means defense articles 
(other than construction equipment, including trac-
tors, scrapers, loaders, graders, bulldozers, dump 
trucks, generators, and compressors) owned by the 
United States Government, and not procured in an-
ticipation of security assistance or sales require-
ments, or pursuant to a security assistance or sales 
order, which is in excess of the Approved Force Ac-
quisition Objective and Approved Force Retention 
Stock of all Department of Defense Components at 
the time such articles are dropped from inventory by 
the supplying agency for delivery to countries or 
international organizations under this Act. 
(9) INCENTIVE PAYMENTS.—The term ‘‘incen-
tive payments’’ means direct monetary compensation 
made by a United States supplier of defense articles 
or defense services or by any employee, agent, or 
subcontractor thereof to any other United States 
person to induce or persuade that United States per-
son to purchase or acquire goods or services pro-
duced, manufactured, grown, or extracted, in whole 
or in part, in the foreign country which is pur-
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482 
chasing those defense articles or defense services 
from the United States supplier. 
(10) MAJOR DEFENSE EQUIPMENT.—The term 
‘‘major defense equipment’’ means any item of sig-
nificant military equipment on the United States 
Munitions List having a nonrecurring research and 
development cost of more than $50,000,000 or a 
total production cost of more than $200,000,000. 
(11) MAJOR UNITED STATES ALLY.—The term 
‘‘major United States ally’’ means a country that is 
designated in accordance with section 4409 as a 
major United States ally for purposes of this Act. 
(12) 
NATO/SHAPE 
PROJECT.—The 
term 
‘‘NATO/SHAPE project’’ means a common-funded 
project supported by allocated credits from North 
Atlantic Treaty Organization bodies or by host na-
tions with NATO Infrastructure funds. 
(13) NUCLEAR EXPLOSIVE DEVICE.—The term 
‘‘nuclear explosive device’’ has the meaning given 
that term in section 830(4) of the Nuclear Prolifera-
tion Prevention Act of 1994. 
(14) OFFSET AGREEMENT.—The term ‘‘offset 
agreement’’ means an agreement, arrangement, or 
understanding between a United States supplier of 
defense articles or defense services and a foreign 
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483 
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 consider-
ation for the purchase by the foreign country of de-
fense articles or defense services from the supplier. 
(15) SECURITY
ASSISTANCE
SURVEY.—The 
term ‘‘security assistance survey’’ means any survey 
or study conducted in a foreign country by United 
States Government personnel for the purpose of as-
sessing the needs of that country for security assist-
ance, and includes defense requirement surveys, site 
surveys, general surveys or studies, and engineering 
assessment surveys. 
(16) SIGNIFICANT MILITARY EQUIPMENT.—The 
term ‘‘significant military equipment’’ means arti-
cles— 
(A) for which special export controls are 
warranted because of the capacity of such arti-
cles for substantial military utility or capability; 
and 
(B) identified on the United States Muni-
tions List. 
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484 
(17) SMALL
ARM
OR
LIGHT
WEAPON.—The 
term ‘‘small arm or light weapon’’ means— 
(A) an item listed in Category I(a) of the 
United States Munitions List, 
(B) an item listed in Category III (as it 
applies to Category I(a)) of the United States 
Munitions List, or 
(C) a grenade listed in Category IV(a) of 
the United States Munitions List, 
that requires a license for international export under 
this title. 
(18) STRATEGIC UNITED STATES ALLY.—The 
term ‘‘strategic United States ally’’ means any mem-
ber country of the North Atlantic Treaty Organiza-
tion (NATO), Australia, Israel, Japan, the Republic 
of Korea, or New Zealand. 
(19) TRAINING.—The term ‘‘training’’ includes 
formal or informal instruction of foreign students in 
the United States or overseas by officers or employ-
ees of the United States, contract technicians, or 
contractors (including instruction at civilian institu-
tions), or by correspondence courses, technical, edu-
cational, or information publications and media of 
all kinds, training aid, orientation, training exercise, 
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485 
and military advice to foreign military units and 
forces. 
(20) UNITED
STATES.—The term ‘‘United 
States’’, when used geographically, means the sev-
eral States, the District of Columbia, the Common-
wealth of Puerto Rico, the Commonwealth of the 
Northern Mariana Islands, and any territory or pos-
session of the United States. 
(21) VALUE.—The term ‘‘value’’ means, in the 
case of an excess defense article, except as otherwise 
provided in section 4311(a), not less than the great-
er of— 
(A) the gross cost incurred by the United 
States Government in repairing, rehabilitating, 
or modifying such article, plus the scrap value; 
or 
(B) the market value, if ascertainable. 
(22) WEAPON
SYSTEM
PARTNERSHIP
AGREE-
MENT.—The term ‘‘weapon system partnership 
agreement’’ means an agreement between two or 
more member countries of the Maintenance and 
Supply Agency of the North Atlantic Treaty Organi-
zation that— 
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486 
(A) is entered into pursuant to the terms 
of the Charter of the North Atlantic Treaty Or-
ganization; and 
(B) is for the common logistic support of 
a specific weapon system common to the par-
ticipating countries. 
(23) WEAPONS OF MASS DESTRUCTION.—The 
term ‘‘weapons of mass destruction’’ has the mean-
ing given such term in section 1403(1) of the De-
fense Against Weapons of Mass Destruction Act of 
1996 (title XIV of Public Law 104–201; 110 Stat. 
2717; 50 U.S.C. 2302(1)). 
TITLE V—COUNTERING 
TRANSNATIONAL THREATS 
Subtitle A—Nonproliferation 
Authorities 
CHAPTER 1—NUCLEAR 
NONPROLIFERATION 
SEC. 5111. AUTHORIZATION OF ASSISTANCE TO PROHIBIT 
THE PROLIFERATION OF NUCLEAR, CHEM-
ICAL, AND BIOLOGICAL WEAPONS. 
(a) AUTHORIZATION
OF ASSISTANCE.—The Presi-
dent is authorized to provide, on such terms and condi-
tions as the President may determine, foreign assistance 
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487 
to any country or organization in order to carry out the 
purposes described in subsection (b). 
(b) PURPOSES.—The purposes of assistance under 
this section are to prohibit the proliferation of nuclear, 
chemical, and biological weapons and the means to deliver 
such weapons, through support of activities designed— 
(1) to enhance the nonproliferation capabilities 
of a country or organization by providing training 
and equipment to detect, deter, monitor, interdict, 
and counter proliferation; 
(2) to strengthen the bilateral ties of the United 
States with a country or organization by offering as-
sistance in this area of vital national security inter-
est; 
(3) to accomplish the activities and objectives 
set forth in sections 503 and 504 of the FREEDOM 
Support Act (22 U.S.C. 5853 and 5854), without re-
gard to the limitation of those sections to the inde-
pendent states of the former Soviet Union; and 
(4) to promote multilateral activities, including 
cooperation with international organizations, relating 
to nonproliferation. 
(c) ACTIVITIES SUPPORTED.—Assistance under this 
section may include training services and the provision of 
funds, equipment, and other commodities related to the 
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488 
detection, deterrence, monitoring, interdiction, and pre-
vention or countering of proliferation, the establishment 
of effective nonproliferation laws and regulations, and the 
apprehension of those individuals involved in acts of pro-
liferation of such weapons. 
SEC. 5112. EDUCATION AND TRAINING TO ENHANCE NON-
PROLIFERATION AND EXPORT CONTROL CA-
PABILITIES. 
(a) IN GENERAL.—The Secretary is authorized to 
provide education and training to appropriate military and 
civilian personnel of foreign countries for the purpose of 
enhancing the nonproliferation and export control capa-
bilities of such personnel through their attendance in spe-
cial courses of instruction conducted by the United States. 
Such education and training may be provided on such 
terms and conditions as the Secretary may determine and 
consistent with this subtitle but whenever feasible on a re-
imbursable basis. 
(b) ADMINISTRATION OF COURSES.—The Secretary 
shall have overall responsibility for the development and 
conduct of international nonproliferation education and 
training programs under this section, and may utilize 
other Federal agencies, as appropriate, to recommend per-
sonnel for the education and training programs and to ad-
minister specific courses of instruction. 
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489 
(c) PURPOSES.—Education and training activities 
conducted under this section shall be— 
(1) of a technical nature, emphasizing tech-
niques for detecting, deterring, monitoring, inter-
dicting, and countering proliferation; 
(2) designed to encourage effective and mutu-
ally beneficial relations and increased understanding 
between the United States and other countries; and 
(3) designed to improve the ability of other 
countries to utilize their resources with maximum ef-
fectiveness, thereby contributing to greater self-reli-
ance by such countries. 
(d) PRIORITY TO CERTAIN COUNTRIES.—In selecting 
personnel for education and training programs under this 
section, priority should be given to personnel from coun-
tries determined by the Secretary to be countries fre-
quently transited by proliferation-related shipments of 
cargo. 
SEC. 5113. OPPOSITION OF WITHDRAWAL FROM TREATY ON 
THE 
NON-PROLIFERATION 
OF 
NUCLEAR 
WEAPONS. 
(a) STATEMENT OF POLICY.—It is the policy of the 
United States to oppose the withdrawal of any country 
that is a party to the Treaty on the Non-Proliferation of 
Nuclear Weapons (hereinafter in this section referred to 
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490 
as the ‘‘Treaty’’) and to use all political, economic, and 
diplomatic means at its disposal to deter, prevent, and 
sanction any such withdrawal from the Treaty. 
(b) LIMITATION ON ASSISTANCE.— 
(1) IN GENERAL.—Notwithstanding any other 
provision of law, no foreign assistance (other than 
humanitarian assistance) under any provision of law 
may be provided to a country that has withdrawn 
from the Treaty. 
(2) WAIVER.—The President may waive the re-
quirements of paragraph (1) on a case-by-case basis 
if the President determines and notifies the appro-
priate congressional committees that such waiver is 
in the vital national security interest of the United 
States. 
(c) RETURN OF ALL UNITED STATES-ORIGIN MATE-
RIALS AND EQUIPMENT.—The United States shall seek 
the return of any material, equipment or components 
transferred under an Agreement for Civil Nuclear Co-
operation that is in force pursuant to the authority of sec-
tion 123 of the Atomic Energy Act of 1954 on or after 
the date of the enactment of this Act, and any special fis-
sionable material produced through the use of such mate-
rial, equipment or components, previously provided to a 
country that withdraws from the Treaty. 
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491 
SEC. 5114. MATTERS RELATING TO INTERNATIONAL ATOM-
IC ENERGY AGENCY. 
(a) PAYMENT OF UNITED STATES DUES.—Not later 
than January 31, 2014, and January 31 of each suc-
ceeding year, the United States shall pay its full assessed 
contribution to the regular operating budget of the Inter-
national Atomic Energy Agency (IAEA). 
(b) ADDITIONAL PROTOCOL AS A CRITERION FOR 
UNITED STATES ASSISTANCE.— 
(1) STATEMENT OF POLICY.—It is the policy of 
the United States to ensure that each country that 
is a party to the Treaty on the Non-Proliferation of 
Nuclear Weapons should bring into force an Addi-
tional Protocol to its safeguards agreement with the 
IAEA. 
(2) CRITERION FOR ASSISTANCE.—The United 
States shall, when considering the provision of as-
sistance under this Act, take into consideration 
whether the proposed recipient has in force an Addi-
tional Protocol to its safeguards agreement with the 
IAEA. 
SEC. 5115. ARMS CONTROL AND NONPROLIFERATION 
SCHOLARSHIP PROGRAM. 
(a) ESTABLISHMENT.— 
(1) IN GENERAL.—The Secretary shall establish 
a scholarship program (to be known as the ‘‘Arms 
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492 
Control and Nonproliferation Scholarship Program’’) 
to award scholarships for the purpose of recruiting 
and preparing students for civilian careers in the 
fields of nonproliferation, arms control, and inter-
national security to meet the critical needs of the 
Department of State. 
(2) SELECTION OF RECIPIENTS.— 
(A) MERIT AND DEPARTMENT NEEDS.— 
Individuals shall be selected to receive scholar-
ships under this section through a competitive 
process primarily on the basis of academic 
merit and the arms control and nonproliferation 
needs of the Department of State. 
(B) DEMONSTRATED COMMITMENT.—Indi-
viduals selected under this section shall have a 
demonstrated interest in public service and a 
commitment to the field of study for which the 
scholarship is awarded. 
(3) CONTRACTUAL AGREEMENTS.—In order to 
carry out the scholarship program, the Secretary 
shall enter into contractual agreements with individ-
uals selected under paragraph (2) pursuant to which 
such individuals agree to serve as full-time employ-
ees of the Department of State following achieve-
ment of the specified degree, for a period to be de-
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493 
termined by the Secretary, not to exceed 6 years, in 
arms control and nonproliferation positions needed 
by the Department of State and for which the indi-
viduals are qualified, in exchange for receiving a 
scholarship. 
(b) ELIGIBILITY.—Except as provided in subsection 
(f), in order to be eligible to participate in the scholarship 
program, an individual shall— 
(1) be enrolled or accepted for enrollment as a 
full-time student at an institution of higher edu-
cation and be pursuing or intend to pursue an un-
dergraduate or graduate education degree in an aca-
demic field or discipline specified in the list made 
available under subsection (d); and 
(2) be a United States citizen. 
(c) APPLICATION.—An individual seeking a scholar-
ship under this section shall submit to the Secretary an 
application at such time, in such manner, and containing 
such information, agreements, or assurances as the Sec-
retary may require. 
(d) PROGRAMS AND FIELDS OF STUDY.—The Sec-
retary shall make publicly available a list of academic pro-
grams and fields of study for which scholarships under 
this section may be awarded. 
(e) SCHOLARSHIPS.— 
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494 
(1) IN GENERAL.—The Secretary may award a 
scholarship under this section for an academic year 
if the individual applying for the scholarship has 
submitted to the Secretary, as part of the applica-
tion required under subsection (c), a proposed aca-
demic program leading to a degree in a program or 
field of study specified on the list made available 
under subsection (d). 
(2) LIMITATION ON YEARS.—An individual may 
not receive a scholarship under this section for more 
than 4 academic years, unless the Secretary grants 
a waiver. 
(3) STUDENT
RESPONSIBILITIES.—A scholar-
ship recipient shall maintain satisfactory academic 
progress for purposes of continued participation in 
the scholarship program. 
(4) AMOUNT.—The dollar amount of a scholar-
ship awarded under this section for an academic 
year shall be determined under regulations issued by 
the Secretary, but shall in no case exceed the cost 
of tuition, fees, and other authorized expenses as de-
termined by the Secretary. 
(5) USE
OF
SCHOLARSHIPS.—A scholarship 
awarded under this section may be expended for tui-
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495 
tion, fees, and other authorized expenses as estab-
lished by the Secretary by regulation. 
(6) PAYMENT
TO
INSTITUTION
OF
HIGHER 
EDUCATION.—The Secretary may enter into a con-
tractual agreement with an institution of higher edu-
cation under which the amounts provided for a 
scholarship under this section for tuition, fees, and 
other authorized expenses are paid directly to the in-
stitution with respect to which such scholarship is 
awarded. 
(f) SPECIAL CONSIDERATION
FOR CURRENT EM-
PLOYEES.—Notwithstanding subsection (b), up to 5 per-
cent of the scholarships awarded under this section may 
be set aside for individuals who are Federal employees on 
the date of the enactment of this Act to enhance the edu-
cation of such employees in areas of critical arms control 
or nonproliferation needs of the Department of State, for 
undergraduate or graduate education through enrollment 
in a graduate degree program under the scholarship on 
a full-time or part-time basis. 
(g) REPAYMENT.— 
(1) IN GENERAL.—A scholarship recipient who 
fails to maintain a high level of academic standing, 
as defined by the Secretary who is dismissed for dis-
ciplinary reasons from the educational institution 
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496 
such recipient is attending, or who voluntarily termi-
nates academic training before graduation from the 
educational program for which the scholarship was 
awarded shall be in breach of the contractual agree-
ment under subsection (a)(3) and, in lieu of any 
service obligation arising under such agreement, 
shall be liable to the United States for repayment 
within 1 year after the date of such default of all 
scholarship funds paid to such recipient and to the 
institution of higher education on the behalf of such 
recipient under such agreement. The repayment pe-
riod may be extended by the Secretary if the Sec-
retary determines such extension to be necessary, as 
established by regulation. 
(2) LIABILITY.—A scholarship recipient who, 
for any reason, fails to begin or complete the service 
obligation under the contractual agreement under 
subsection (a)(3) after completion of academic train-
ing, or fails to comply with the terms and conditions 
of deferment established by the Secretary under 
paragraph (1), shall be in breach of such contractual 
agreement and shall be liable to the United States 
for an amount equal to— 
(A) the total amount of the scholarship re-
ceived by such recipient under this section; and 
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497 
(B) the total amount of interest that would 
have been payable under a direct unsubsidized 
loan issued through the Department of Edu-
cation’s Direct Loan Program. 
(h) REGULATIONS.—The Secretary shall prescribe 
regulations necessary to carry out this section. 
(i) CONVERSION.—The Secretary is authorized to 
convert the status of a scholarship recipient to a member 
of the Foreign Service, as defined in section 103 of the 
Foreign Service Act of 1980, following the successful com-
pletion of the period of service described in subsection 
(a)(3). 
SEC. 5116. ARMS CONTROL AND NONPROLIFERATION RO-
TATION PROGRAM. 
(a) ESTABLISHMENT.—The Secretary, in consulta-
tion with the heads of other relevant Federal agencies, 
shall establish the Arms Control and Nonproliferation Ro-
tation Program (in this section referred to as the ‘‘Rota-
tion Program’’) for personnel of such agencies. The Rota-
tion Program shall use applicable best practices, including 
those prescribed by the Chief Human Capital Officers 
Council. Personnel of a relevant Federal agency partici-
pating in the Rotation Program may be detailed to any 
other relevant Federal agency on a nonreimbursable basis. 
(b) GOALS.—The Rotation Program shall— 
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498 
(1) be established in accordance with the 
human capital strategic plan of the Department of 
State; 
(2) provide midlevel personnel of relevant Fed-
eral agencies the opportunity to broaden their 
knowledge through exposure to other relevant Fed-
eral agencies, including to other bureaus and offices 
of the Department of State; 
(3) expand the knowledge base of the Depart-
ment of State and other relevant Federal agencies; 
(4) build professional relationships and contacts 
among employees of relevant Federal agencies; 
(5) invigorate the Department of State’s arms 
control and nonproliferation workforce with profes-
sionally rewarding opportunities; and 
(6) incorporate human capital strategic plans 
and activities of the Department of State, and ad-
dress critical human capital deficiencies, professional 
development, recruitment and retention efforts, and 
succession planning within the Department of State. 
(c) RESPONSIBILITIES.—The Secretary shall— 
(1) provide oversight of the establishment and 
implementation of the Rotation Program; 
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499 
(2) establish a framework that supports the 
goals of the Rotation Program and promotes cross 
disciplinary rotational opportunities; 
(3) establish eligibility for personnel of other 
relevant agencies to participate in the Rotation Pro-
gram and select participants from among the appli-
cants; 
(4) establish incentives for personnel to partici-
pate in the Rotation Program, including through 
promotions and employment preferences; 
(5) ensure that the Rotation Program provides 
professional education and training; 
(6) ensure that the Rotation Program develops 
qualified employees and future leaders with broad 
based experience throughout the Department of 
State; and 
(7) provide for greater interaction among em-
ployees of relevant Federal agencies. 
(d) ALLOWANCES, PRIVILEGES, AND BENEFITS.—All 
allowances, privileges, rights, seniority, and other benefits 
of personnel participating in the Rotation Program shall 
be preserved. 
(e) REPORTING.—Not later than 1 year after the 
date of the establishment of the Rotation Program, the 
Secretary shall submit to the appropriate congressional 
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500 
committees and the Committee on Armed Services of the 
House of Representatives and the Committee on Armed 
Services of the Senate a report on the status of the Rota-
tion Program, including a description of the Rotation Pro-
gram, the number of individuals participating, and how 
the Rotation Program is used in succession planning and 
leadership development. 
(f) DEFINITION.—For the purposes of this section, 
the term ‘‘relevant Federal agency’’ means the Depart-
ment of State and any other Federal agency that is in-
volved in United States arms control and nonproliferation 
activities. 
CHAPTER 2—MISSILE 
NONPROLIFERATION 
SEC. 5121. LICENSING. 
(a) ESTABLISHMENT
OF LIST
OF CONTROLLED 
ITEMS.—The Secretary, in consultation with the Secretary 
of Defense and the heads of other appropriate Federal 
agencies, shall establish and maintain, as part of the 
United States Munitions List, a list of all items on the 
Missile Technology Control Regime (MTCR) Annex the 
export of which is not controlled under section 6(l) of the 
Export Administration Act of 1979 (as continued in effect 
under the International Emergency Economic Powers 
Act). 
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501 
(b) REFERRAL OF LICENSE APPLICATIONS.— 
(1) IN GENERAL.—A determination of the Sec-
retary to approve a license for the export of an item 
on the list established under subsection (a) may be 
made only after the license application is referred to 
the Secretary of Defense. 
(2) COORDINATION.—Not later than 10 days 
after a license is issued for the export of an item on 
the list established under subsection (a), the Sec-
retary shall provide to the Secretary of Defense and 
the Secretary of Commerce the license application 
and accompanying documents issued to the appli-
cant, to the extent that the relevant Secretary indi-
cates the need to receive such application and docu-
ments. 
(c) INFORMATION SHARING.—The Secretary shall es-
tablish a procedure for sharing information with appro-
priate officials of the intelligence community, as deter-
mined by the Director of National Intelligence, and with 
other appropriate Federal departments and agencies, that 
will ensure effective monitoring of transfers of MTCR 
equipment or technology and other missile technology. 
(d) EXPORTS
TO SPACE LAUNCH VEHICLE PRO-
GRAMS.—Not later than 15 days after the issuance of a 
license (including any brokering license) for the export of 
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508 
(1) any export, transfer, or trading activity that 
is authorized by the laws of an MTCR adherent, if 
such authorization is not obtained by misrepresenta-
tion or fraud; or 
(2) any export, transfer, or trade of an item to 
an end user in a country that is an MTCR adherent. 
(c) EFFECT OF ENFORCEMENT ACTIONS BY MTCR 
ADHERENTS.—Sanctions set forth in subsection (a) may 
not be imposed under this section on a person with respect 
to acts described in such subsection or, if such sanctions 
are in effect against a person on account of such acts, 
such sanctions shall be terminated, if an MTCR adherent 
is taking judicial or other enforcement action against that 
person with respect to such acts, or that person has been 
found by the government of an MTCR adherent to be in-
nocent of wrongdoing with respect to such acts, and if the 
President certifies to the appropriate congressional com-
mittees that— 
(1) for any judicial or other enforcement action 
taken by the MTCR adherent, such action has— 
(A) been comprehensive; and 
(B) been performed to the satisfaction of 
the United States; and 
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509 
(2) with respect to any finding of innocence of 
wrongdoing, the United States is satisfied with the 
basis for such finding. 
(d) ADVISORY OPINIONS.—The Secretary, in con-
sultation with the Secretary of Defense and the Secretary 
of Commerce, may, upon the request of any person, issue 
an advisory opinion to that person as to whether a pro-
posed activity by that person would subject that person 
to sanctions under this section. Any person who relies in 
good faith on such an advisory opinion which states that 
the proposed activity would not subject a person to such 
sanctions, and any person who thereafter engages in such 
activity, may not be made subject to such sanctions on 
account of such activity. 
(e) WAIVER AND REPORT TO CONGRESS.— 
(1) IN GENERAL.—In any case other than one 
in which an advisory opinion has been issued under 
subsection (d) stating that a proposed activity would 
not subject a person to sanctions under this section, 
the President may waive the application of sub-
section (a) to a foreign person if the President deter-
mines that such waiver is essential to the national 
security of the United States. 
(2) NOTIFICATION.—In the event that the 
President decides to apply the waiver described in 
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516 
(9) the term ‘‘otherwise engaged in the trade 
of’’ means, with respect to a particular export or 
transfer, to be a freight forwarder or designated ex-
porting agent, or a consignee or end user of the item 
to be exported or transferred. 
(b) INTERNATIONAL UNDERSTANDING DEFINED.— 
For purposes of subsection (a)(3), as it relates to any 
international understanding concluded with the United 
States after January 1, 2000, the term ‘‘international un-
derstanding’’ means— 
(1) any specific agreement by a country not to 
export, transfer, or otherwise engage in the trade of 
any MTCR equipment or technology that contributes 
to the acquisition, design, development, or produc-
tion of missiles in a country that is not an MTCR 
adherent and would be, if it were United States-ori-
gin equipment or technology, subject to the jurisdic-
tion of the United States under this Act; or 
(2) any specific understanding by a country 
that, notwithstanding section 5123(b), the United 
States retains the right to take the actions under 
section 5123(a)(2) in the case of any export or 
transfer of any MTCR equipment or technology that 
contributes to the acquisition, design, development, 
or production of missiles in a country that is not an 
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745 
Subtitle B—Policy Authorities 
SEC. 10601. CONTINGENCIES. 
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, the President is authorized to use funds made 
available to carry out any provision of this Act in order 
to provide, for any unanticipated contingencies, assistance 
authorized by title I, II or III in accordance with the provi-
sions applicable to the furnishing of such assistance. 
(b) LIMITATION.—The authority of subsection (a) 
may not be used to authorize the use of more than 
$50,000,000 during any fiscal year. 
(c) REPORT REQUIRED.—The President shall report 
in advance to the extent practicable to the appropriate 
congressional committees each time the President intends 
to exercise the authority of subsection (a). 
SEC. 10602. TRANSFER BETWEEN ACCOUNTS. 
(a) IN GENERAL.—Whenever the President deter-
mines it to be necessary for the purposes of this Act, not 
to exceed 10 percent of the funds made available for any 
provision of this Act may be transferred to, and consoli-
dated with, the funds made available for any other provi-
sion of this Act, and may be used for any of the purposes 
for which such funds may be used, except that the total 
in the provision for the benefit of which the transfer is 
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