diplomatic efforts to strengthen national and international 
arms export controls by establishing a senior-level initia-
tive to ensure that those arms export controls are com-
parable to and supportive of United States arms export 
controls, particularly with respect to countries of concern 
to the United States. 
(b) REPORT.—Not later than 1 year after the date 
of the enactment of this Act, and annually thereafter for 
4 years, the President shall transmit to the Committee on 
Foreign Affairs of the House of Representatives and the 
Committee on Foreign Relations of the Senate a report 
on United States diplomatic efforts described in subsection 
(a). 
SEC. 3. REPORTING REQUIREMENT FOR UNLICENSED EX-
PORTS. 
Section 655(b) of the Foreign Assistance Act of 1961 
(22 U.S.C. 2415(b)) is amended— 
(1) in paragraph (2), by striking ‘‘or’’ at the 
end; 
(2) in paragraph (3), by striking the period at 
the end and inserting ‘‘; or’’; and 
(3) by adding at the end the following: 
‘‘(4) were exported without a license under sec-
tion 38 of the Arms Export Control Act (22 U.S.C. 
2778) pursuant to an exemption established under 
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the International Traffic in Arms Regulations, other 
than defense articles exported in furtherance of a 
letter of offer and acceptance under the Foreign 
Military Sales program or a technical assistance or 
manufacturing license agreement, including the spe-
cific exemption provision in the regulation under 
which the export was made.’’. 
SEC. 4. REPORT ON VALUE OF MAJOR DEFENSE EQUIP-
MENT AND DEFENSE ARTICLES EXPORTED 
UNDER SECTION 38 OF THE ARMS EXPORT 
CONTROL ACT. 
Section 38 of the Arms Export Control Act (22 
U.S.C. 2778) is amended by adding at the end the fol-
lowing: 
‘‘(k) REPORT.— 
‘‘(1) IN GENERAL.—The President shall trans-
mit to the Committee on Foreign Affairs of the 
House of Representatives and the Committee on 
Foreign Relations of the Senate a report that con-
tains a detailed listing, by country and by inter-
national organization, of the total dollar value of 
major defense equipment and defense articles ex-
ported pursuant to licenses authorized under this 
section for the previous fiscal year. 
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‘‘(2) INCLUSION IN ANNUAL BUDGET.—The re-
port required by this subsection shall be included in 
the supporting information of the annual budget of 
the United States Government required to be sub-
mitted to Congress under section 1105 of title 31, 
United States Code.’’. 
SEC. 5. AUTHORITY TO REMOVE SATELLITES AND RELATED 
COMPONENTS FROM THE UNITED STATES 
MUNITIONS LIST. 
(a) AUTHORITY.—Except as provided in subsection 
(b) and subject to subsection (d), the President is author-
ized to remove satellites and related components from the 
United States Munitions List, consistent with the proce-
dures in section 38(f) of the Arms Export Control Act (22 
U.S.C. 2778(f)). 
(b) EXCEPTION.—The authority of subsection (a) 
may not be exercised with respect to any satellite or re-
lated component that may, directly or indirectly, be trans-
ferred to, or launched into outer space by, the People’s 
Republic of China. 
(c) UNITED STATES MUNITIONS LIST.—In this sec-
tion, the term ‘‘United States Munitions List’’ means the 
list referred to in section 38(a)(1) of the Arms Export 
Control Act (22 U.S.C. 2778(a)(1)). 
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(d) EFFECTIVE DATE.—The President may not exer-
cise the authority provided in this section before the date 
that is 90 days after the date of the enactment of this 
Act. 
SEC. 6. REVIEW AND REPORT OF INVESTIGATIONS OF VIO-
LATIONS OF SECTION 3 OF THE ARMS EX-
PORT CONTROL ACT. 
(a) REVIEW.—The Inspector General of the Depart-
ment of State shall conduct a review of investigations by 
the Department of State during each of fiscal years 2012 
through 2016 of any and all possible violations of section 
3 of the Arms Export Control Act (22 U.S.C. 2753) with 
respect to misuse of United States-origin defense items to 
determine whether the Department of State has fully com-
plied with the requirements of such section, as well as its 
own internal procedures (and whether such procedures are 
adequate), for reporting to Congress any information re-
garding the unlawful use or transfer of United States-ori-
gin defense articles, defense services, and technology by 
foreign countries, as required by such section. 
(b) REPORT.—The Inspector General of the Depart-
ment of State shall submit to the Committee on Foreign 
Affairs of the House of Representatives and the Com-
mittee on Foreign Relations of the Senate for each of fis-
cal years 2012 through 2016 a report that contains the 
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findings and results of the review conducted under sub-
section (a). The report shall be submitted in unclassified 
form to the maximum extent possible, but may include a 
classified annex. 
SEC. 7. REPORT ON SELF-FINANCING OPTIONS FOR EX-
PORT LICENSING FUNCTIONS OF DDTC OF 
THE DEPARTMENT OF STATE. 
Not later than 90 days after the date of the enact-
ment of this Act, the Secretary of State shall submit to 
the Committee on Foreign Affairs of the House of Rep-
resentatives and the Committee on Foreign Relations of 
the Senate a report on possible mechanisms to place the 
export licensing functions of the Directorate of Defense 
Trade Controls of the Department of State on a 100 per-
cent self-financing basis. 
Æ 
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