I 
113TH CONGRESS 
1ST SESSION H. R. 3470 
To provide for the transfer of naval vessels to certain foreign countries, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 13, 2013 
Mr. ROYCE (for himself and Mr. ENGEL) introduced the following bill; which 
was referred to the Committee on Foreign Affairs 
A BILL 
To provide for the transfer of naval vessels to certain foreign 
countries, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Naval Vessel Transfer and Arms Export Control Amend-
ments Act of 2013’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title and table of contents. 
TITLE I—TRANSFER OF NAVAL VESSELS TO CERTAIN FOREIGN 
RECIPIENTS 
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Sec. 101. Transfer of naval vessels to certain foreign recipients. 
TITLE II—ARMS EXPORT CONTROL ACT AMENDMENTS 
Sec. 201. Increase in congressional notification thresholds. 
Sec. 202. Licensing of certain commerce-controlled items. 
Sec. 203. Amendments relating to removal of items from the United States Mu-
nitions List. 
Sec. 204. Amendment to definition of ‘‘security assistance’’ under the Foreign 
Assistance Act of 1961. 
Sec. 205. Amendments to definitions of ‘‘defense article’’ and ‘‘defense service’’ 
under the Arms Export Control Act. 
Sec. 206. Revision of statutory references to former NATO support organiza-
tions and related NATO agreements. 
Sec. 207. Technical amendments. 
TITLE I—TRANSFER OF NAVAL 
VESSELS TO CERTAIN FOR-
EIGN RECIPIENTS 
SEC. 101. TRANSFER OF NAVAL VESSELS TO CERTAIN FOR-
EIGN RECIPIENTS. 
(a) TRANSFERS BY GRANT.—The President is au-
thorized to transfer vessels to foreign countries on a grant 
basis under section 516 of the Foreign Assistance Act of 
1961 (22 U.S.C. 2321j), as follows: 
(1) MEXICO.—To the Government of Mexico, 
the OLIVER HAZARD PERRY class guided missile 
frigates 
USS 
CURTS 
(FFG–38) 
and 
USS 
MCCLUSKY (FFG–41). 
(2) THAILAND.—To the Government of Thai-
land, the OLIVER HAZARD PERRY class guided 
missile frigates USS RENTZ (FFG–46) and USS 
VANDEGRIFT (FFG–48). 
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(b) TRANSFER BY SALE.—The President is author-
ized to transfer the OLIVER HAZARD PERRY class 
guided missile frigates USS TAYLOR (FFG–50), USS 
GARY (FFG–51), USS CARR (FFG–52), and USS 
ELROD (FFG–55) to the Taipei Economic and Cultural 
Representative Office of the United States (which is the 
Taiwan instrumentality designated pursuant to section 
10(a) of the Taiwan Relations Act (22 U.S.C. 3309(a))) 
on a sale basis under section 21 of the Arms Export Con-
trol Act (22 U.S.C. 2761). 
(c) ALTERNATIVE
TRANSFER
AUTHORITY.—Not-
withstanding the authority provided in subsections (a) and 
(b) to transfer specific vessels to specific countries, the 
President is authorized, subject to the same conditions 
that would apply for such country under this Act, to trans-
fer any vessel named in this Act to any country named 
in this Act such that the total number of vessels trans-
ferred to such country does not exceed the total number 
of vessels authorized for transfer to such country by this 
Act. 
(d) GRANTS NOT COUNTED IN ANNUAL TOTAL OF 
TRANSFERRED EXCESS DEFENSE ARTICLES.—The value 
of a vessel transferred to another country on a grant basis 
pursuant to authority provided by subsection (a) or (c) 
shall not be counted against the aggregate value of excess 
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defense articles transferred in any fiscal year under sec-
tion 516 of the Foreign Assistance Act of 1961 (22 U.S.C. 
2321j). 
(e) COSTS OF TRANSFERS.—Any expense incurred by 
the United States in connection with a transfer authorized 
by this section shall be charged to the recipient notwith-
standing section 516(e) of the Foreign Assistance Act of 
1961 (22 U.S.C. 2321j(e)). 
(f) REPAIR
AND
REFURBISHMENT
IN
UNITED 
STATES SHIPYARDS.—To the maximum extent prac-
ticable, the President shall require, as a condition of the 
transfer of a vessel under this section, that the recipient 
to which the vessel is transferred have such repair or re-
furbishment of the vessel as is needed, before the vessel 
joins the naval forces of that recipient, performed at a 
shipyard located in the United States, including a United 
States Navy shipyard. 
(g) EXPIRATION OF AUTHORITY.—The authority to 
transfer a vessel under this section shall expire at the end 
of the 3-year period beginning on the date of the enact-
ment of this Act. 
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TITLE II—ARMS EXPORT 
CONTROL ACT AMENDMENTS 
SEC. 201. INCREASE IN CONGRESSIONAL NOTIFICATION 
THRESHOLDS. 
(a) FOREIGN MILITARY SALES.— 
(1) IN
GENERAL.—Section 36(b)(1) of the 
Arms Export Control Act (22 U.S.C. 2776(b)(1)) is 
amended— 
(A) in the matter preceding subparagraph 
(A)— 
(i) by striking ‘‘$50,000,000’’ and in-
serting ‘‘$100,000,000’’; 
(ii) by striking ‘‘$200,000,000’’ and 
inserting ‘‘$300,000,000’’; and 
(iii) by striking ‘‘$14,000,000’’ and 
inserting ‘‘$25,000,000’’; and 
(B) in the matter following subparagraph 
(P)— 
(i) by inserting ‘‘of any defense arti-
cles or defense services under this Act for 
$200,000,000 or more, any design and 
construction services for $300,000,000 or 
more, or any major defense equipment for 
$75,000,000 or more,’’ after ‘‘The letter of 
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(C) by striking ‘‘$50,000,000’’ and insert-
ing ‘‘$100,000,000’’; 
(2) in paragraph (2)— 
(A) in subparagraph (A), by inserting after 
‘‘for an export’’ the following: ‘‘of any major 
defense equipment sold under a contract in the 
amount of $75,000,000 or more or of defense 
articles or defense services sold under a con-
tract in the amount of $200,000,000 or more, 
(or, in the case of a defense article that is a 
firearm controlled under category I of the 
United States Munitions List, $1,000,000 or 
more)’’; and 
(B) in subparagraph (C), by inserting after 
‘‘license’’ the following: ‘‘for an export of any 
major defense equipment sold under a contract 
in the amount of $50,000,000 or more or of de-
fense articles or defense services sold under a 
contract in the amount of $100,000,000 or 
more, (or, in the case of a defense article that 
is a firearm controlled under category I of the 
United States Munitions List, $1,000,000 or 
more)’’; 
(3) by striking paragraph (5); and 
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(4) by redesignating paragraph (6) as para-
graph (5). 
SEC. 
202. 
LICENSING 
OF 
CERTAIN 
COMMERCE-CON-
TROLLED ITEMS. 
Section 38 of the Arms Export Control Act (22 
U.S.C. 2778) is amended by adding at the end the fol-
lowing new subsection: 
‘‘(k) LICENSING
OF
CERTAIN
COMMERCE-CON-
TROLLED ITEMS.— 
‘‘(1) IN GENERAL.—A license or other approval 
from the Department of State granted in accordance 
with this section may also authorize the export of 
items subject to the Export Administration Regula-
tions if such items are to be used in or with defense 
articles controlled on the United States Munitions 
List. 
‘‘(2) OTHER
REQUIREMENTS.—The following 
requirements shall apply with respect to a license or 
other approval to authorize the export of items sub-
ject to the Export Administration Regulations under 
paragraph (1): 
‘‘(A) Separate approval from the Depart-
ment of Commerce shall not be required for 
such items if such items are approved for ex-
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port under a Department of State license or 
other approval. 
‘‘(B) Such items subject to the Export Ad-
ministration Regulations that are exported pur-
suant to a Department of State license or other 
approval would remain under the jurisdiction of 
the Department of Commerce with respect to 
any subsequent transactions. 
‘‘(C) The inclusion of the term ‘subject to 
the EAR’ or any similar term on a Department 
of State license or approval shall not affect the 
jurisdiction with respect to such items. 
‘‘(3) DEFINITION.—In this subsection, the term 
‘Export Administration Regulations’ means— 
‘‘(A) the Export Administration Regula-
tions as maintained and amended under the au-
thority of the International Emergency Eco-
nomic Powers Act (50 U.S.C. 1701 et seq.); or 
‘‘(B) any successor regulations.’’. 
SEC. 203. AMENDMENTS RELATING TO REMOVAL OF ITEMS 
FROM THE UNITED STATES MUNITIONS LIST. 
(a) REQUIREMENTS FOR REMOVAL OF MAJOR DE-
FENSE EQUIPMENT AND SIGNIFICANT MILITARY EQUIP-
MENT FROM THE UNITED STATES MUNITIONS LIST.— 
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Section 38(f) of the Arms Export Control Act (22 U.S.C. 
2778(f)) is amended by adding at the end the following: 
‘‘(5)(A) Except as provided in subparagraph 
(B), the President shall take such actions as may be 
necessary to ensure that any major defense equip-
ment or significant military equipment that is re-
moved from the United States Munitions List and 
transferred to the Commerce Control List for pur-
poses of commercial export is not subsequently 
modified so as to transform such equipment into a 
defense article. 
‘‘(B) The President may authorize the trans-
formation of major defense equipment or significant 
military equipment that is removed from the United 
States Munitions List and transferred to the Com-
merce Control List for purposes of commercial ex-
port into a defense article if the President— 
‘‘(i) determines that such transformation is 
appropriate and in the national interests of the 
United States; and 
‘‘(ii) provides notice of such transformation 
to the chairman of the Committee on Foreign 
Affairs of the House of Representatives and the 
chairman of the Committee on Foreign Rela-
tions of the Senate consistent with the notifica-
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tion requirements of section 36(b)(5)(A) of this 
Act. 
‘‘(C) In this paragraph— 
‘‘(i) the term ‘Commerce Control List’ 
means— 
‘‘(I) 
items 
transferred 
from 
the 
United States Munitions List to the Com-
merce Control List and designated as ‘600 
series’ items on the Commerce Control List 
under the Export Administration Regula-
tions, as proposed by the Bureau of Indus-
try and Security of the Department of 
Commerce on July 15, 2011 (76 Fed. Reg. 
41958); or 
‘‘(II) any successor regulations; and 
‘‘(ii) the term ‘defense article’ means an 
item designated by the President pursuant to 
subsection (a)(1).’’. 
(b) NOTIFICATION AND REPORTING REQUIREMENTS 
FOR MAJOR DEFENSE EQUIPMENT
AND SIGNIFICANT 
MILITARY EQUIPMENT REMOVED FROM
THE UNITED 
STATES MUNITIONS LIST.—Section 38(f) of the Arms Ex-
port Control Act (22 U.S.C. 2778(f)), as amended by this 
section, is further amended by adding at the end the fol-
lowing: 
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