141
to ensure a level playing field for United States exporters, 
and detracts from United States efforts to promote greater 
transparency and responsibility by other countries in their 
export control systems. 
(b) PUBLICATION REQUIREMENT.—The Secretary of 
Commerce and the Secretary of State shall—
(1) upon making a commodity classification de-
termination or a commodity jurisdiction classifica-
tion, as the case may be, referred to in subsection (a) 
in response to a request by a private person, publish 
in the Federal Register, not later than 30 days after 
the date of the determination—
(A) a description of the item, including per-
formance levels or other technical characteristics 
where appropriate, 
(B) an explanation of whether the item is 
controlled under the International Traffic in 
Arms Regulations or the Export Administration 
Regulations, and 
(C) the United States Munitions List des-
ignation or export control classification number 
under which the item has been designated or 
classified, as the case may be,
142
except that the name of the name of the person, the 
person’s business organization, customers, or prices 
are not required to be published; and 
(2) maintain on their respective Internet 
websites an archive, that is accessible to the general 
public and other departments and agencies of the 
United States, of the determinations published in the 
Federal Register under paragraph (1). 
(c) REPORT.—Not later than 120 days after the date 
of the enactment of this Act, the Secretary of State and the 
Secretary of Commerce shall submit to the appropriate con-
gressional committees a joint report that contains a descrip-
tion of the plans to implement the requirements of this sec-
tion. 
(d) REQUIREMENT.—Notwithstanding any other pro-
vision of law, beginning 180 days after the date of the enact-
ment of this Act, the Secretary of Commerce may make a 
commodity classification determination referred to in sub-
section (a), and the Secretary of State may make a com-
modity jurisdiction determination referred to in subsection 
(a), in response to a request by a private person only in 
in accordance with the requirements of subsection (b).
143
SEC. 722. CERTIFICATIONS RELATING TO EXPORT OF CER-
TAIN 
DEFENSE 
ARTICLES 
AND 
DEFENSE 
SERVICES. 
(a) REPORTS ON COMMERCIAL AND GOVERNMENTAL 
MILITARY EXPORTS; CONGRESSIONAL ACTION.—Section 
36(c) of the Arms Export Control Act (22 U.S.C. 2776(c)) 
is amended—
(1) in the first sentence of paragraph (1), by in-
serting after ‘‘$1,000,000 or more’’ the following: ‘‘, 
or, notwithstanding section 27(g) of this Act, for any 
special comprehensive authorization under sections 
120–130 of title 22, Code of Federal Regulations 
(commonly known as the ‘International Traffic in 
Arms Regulations’) for the export of defense articles 
or defense services in an aggregate amount of 
$100,000,000 or more’’; 
(2) in paragraph (2)—
(A) in subparagraph (A), by adding ‘‘and’’ 
at the end; 
(B) by striking subparagraph (B); and 
(C) by redesignating subparagraph (C) as 
subparagraph (B); and 
(3) in the matter preceding subparagraph (A) of 
paragraph (5), by inserting ‘‘or paragraph (2)’’ after 
‘‘paragraph (1)’’.
144
(b) SENSE OF CONGRESS.—It is the sense of Congress 
that the Department of State should revise its procedures 
in order to improve the timeliness and quality of service 
it is providing to United States exporters concerning mat-
ters requiring notification to Congress under sections 3 and 
36 of the Arms Export Control Act (22 U.S.C. 2753 and 
2776) by—
(1) expediting its internal and interagency proc-
esses such that consultations with the Committee on 
International Relations of the House of Representa-
tives and the Committee on Foreign Relations of the 
Senate commence not later than 30 days following re-
ceipt of a proposal requiring notification; 
(2) providing informal notice to such Commit-
tees within 10 days of receipt of such a proposal, such 
that questions by the Committees may be addressed 
wherever feasible in conjunction with the Depart-
ment’s processing; and 
(3) making each interval in the processing of the 
proposal transparent to United States exporters 
through the Internet website of the Department. 
SEC. 723. PRIORITY FOR UNITED STATES MILITARY OPER-
ATIONS. 
The Secretary of State may not accord higher priority 
in the adjudication of munitions export licenses to any
145
measure included within the ‘‘Defense Trade Security Ini-
tiative’’ announced by the Department of State in May 
2000 over the processing of licenses in support of Operation 
Enduring Freedom, Operation Iraqi Freedom, or any other 
military operation involving the United States Armed 
Forces. 
SEC. 724. LICENSE OFFICER STAFFING AND WORKLOAD. 
Section 36(a) Arms Export Control Act (22 U.S.C. 
2776(a)) is amended—
(1) in paragraph (11), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (12), by striking the period at 
the end and inserting ‘‘; and’’; and 
(3) by adding at the end the following new para-
graph: 
‘‘(13) a report on the number of civilian and 
military officers assigned to munitions export licens-
ing at the Department of State and their average 
weekly workload for both open and closed cases.’’. 
SEC. 725. DATABASE OF UNITED STATES MILITARY ASSIST-
ANCE. 
Section 655 of the Foreign Assistance Act of 1961 (22 
U.S.C. 2415) is amended by striking subsection (c) and in-
serting the following new subsection:
146
‘‘(c) AVAILABILITY OF REPORT INFORMATION ON THE 
INTERNET.—
‘‘(1) REQUIREMENT FOR DATABASE.—The Sec-
retary of State, in consultation with the Secretary of 
Defense, shall make available to the public the unclas-
sified portion of each such report in the form of a 
database that is available via the Internet and that 
may be searched by various criteria. 
‘‘(2) SCHEDULE FOR UPDATING.—Not later than 
April 1 of each year, the Secretary of State shall 
make available in the database the information con-
tained in the annual report for the fiscal year ending 
the previous September 30.’’. 
SEC. 726. TRAINING AND LIAISON FOR SMALL BUSINESSES. 
(a) SENSE OF CONGRESS.—It is the sense of Congress 
that it is increasingly important that the Secretary of 
State, in administering the licensing, registration, compli-
ance, and other authorities contained in section 38 of the 
Arms Export Control Act (22 U.S.C. 2778), should provide 
up-to-date training and other educational assistance to 
small businesses in the United States aerospace and defense 
industrial sector. 
(b) SMALL BUSINESS LIAISON.—Not later than 180 
days after the date of the enactment of this Act, the Sec-
retary shall designate, within the Office of Defense Trade
147
Controls of the Department of State, a coordinator for small 
business affairs. The coordinator shall serve as a liaison for 
small businesses in the United States aerospace and defense 
industrial sector with respect to licensing and registration 
requirements in order to facilitate the compliance and other 
forms of participation by such small businesses in the 
United States munitions control system, including by pro-
viding training, technical assistance, and through other ef-
forts as may be appropriate. 
SEC. 
727. 
COMMERCIAL 
COMMUNICATIONS 
SATELLITE 
TECHNICAL DATA. 
Not later than 180 days after the date of the enactment 
of this Act, the Secretary of State, in consultation with the 
Secretary of Defense, shall amend the International Traffic 
in Arms Regulations to provide for the export without a 
license of communications satellite technical data, at a level 
established by the Secretary of Defense, in instances in 
which—
(1) the exporter is a person registered under sec-
tion 38(b) of the Arms Export Control Act (22 U.S.C. 
2778(b)); 
(2) the purpose of the export is to market a sale 
of a United States manufactured communications sat-
ellite solely for commercial or civil end use;
148
(3) no party to the transaction is proscribed 
under section 126.1 of the Regulations or otherwise 
restricted from receiving United States defense arti-
cles; and 
(4) each end user or recipient has agreed in 
writing not to reexport or retransfer the United 
States furnished technical data to any other person 
without the prior written consent of the United States 
Government. 
SEC. 728. 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 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
149
license agreement, including the specific exemption 
provision in the regulation under which the export 
was made.’’. 
Subtitle D—Terrorist-Related Provi-
sions and Enforcement Matters 
SEC. 731. SENSITIVE TECHNOLOGY TRANSFERS TO FOR-
EIGN 
PERSONS 
LOCATED 
WITHIN 
THE 
UNITED STATES. 
(a) WEAPONS TRANSFERS.—Pursuant to regulations 
issued under section 38(g)(6) of the Arms Export Control 
(22 U.S.C. 2778(g)(6)), the President shall require a license 
for the transfer of any defense articles and defense services, 
other than a firearm for personal use, specified in a report 
required under subsection (c) to a foreign person located 
within the United States (other than to a foreign govern-
ment, unless such government is proscribed under section 
126.1 of the International Traffic in Arms Regulations or 
otherwise restricted from receiving defense articles and de-
fense services). 
(b) DUAL USE TRANSFERS.—Notwithstanding any 
other provision of law, the President may require a license 
under the Export Administration Regulations for the trans-
fer of any dual use goods and technology, other than a fire-
arm for personal use, specified in a report required under
150
subsection (c) to a foreign person located within the United 
States. 
(c) REPORT.—Not later than 180 days after the date 
of the enactment of this Act, and annually thereafter, the 
Secretary of State, in consultation with the Attorney Gen-
eral and the Secretary of Homeland Security, shall submit 
to the appropriate congressional committees a report that 
specifies those items which warrant scrutiny and enforce-
ment by the Government of the United States through li-
cense procedures prior to a transfer to a foreign person lo-
cated within the United States in order to deter efforts on 
the part of such person to acquire such items for terrorist 
or other unlawful purposes 
SEC. 732. CERTIFICATION CONCERNING EXEMPT WEAPONS 
TRANSFERS ALONG THE NORTHERN BORDER 
OF THE UNITED STATES. 
Not later than 180 days after the date of the enactment 
of this Act, and annually thereafter, the Secretary of State, 
in consultation with the Secretary of Homeland Security, 
shall submit to the appropriate congressional committees a 
written report certifying that—
(1) provisions of the International Traffic in 
Arms Regulations permitting unlicensed temporary 
imports into the United States from Canada by any 
person of any unclassified defense article on the
151
United States Munitions List do not present a risk to 
the national security of the United States; and 
(2) personnel of the Bureau of Customs and Bor-
der Protection of the Department of Homeland Secu-
rity located along the northern border of the United 
States have adequate written guidance from the De-
partment of State which permits them to effectively 
enforce provisions of the International Traffic in 
Arms Regulations permitting unlicensed exports to 
Canada of certain items on the United States Muni-
tions List. 
SEC. 733. COMPREHENSIVE NATURE OF UNITED STATES 
ARMS EMBARGOES. 
(a) FINDINGS; SENSE OF CONGRESS.—
(1) FINDINGS.—Congress finds that—
(A) governments to which the Government 
of the United States prohibits by law or policy 
the transfer of implements of war, including ma-
terial, components, parts, and other defense arti-
cles and defense services (as defined in para-
graphs (3) and (4) of section 47 of the Arms Ex-
port Control Act (22 U.S.C. 2794(3) and (4)), 
respectively) continue to seek to evade these em-
bargoes through increasingly sophisticated illegal 
acquisitions via the ‘‘international gray arms
152
market’’ and by seeking to exploit weaknesses in 
the export control system of the United States 
and its friends and allies; and 
(B) the strict and comprehensive applica-
tion of arms embargoes referred to in subpara-
graph (A), including those embargoes established 
by the United Nations Security Council, is of 
fundamental importance to the security and for-
eign policy interests of the United States. 
(2) SENSE
OF
CONGRESS.—It is the sense of 
Congress that the United States Government should 
continue to provide a leadership role internationally 
in ensuring the effectiveness of arms embargoes re-
ferred to in paragraph (1). 
(b) SCOPE OF EMBARGOES.—Section 38 of the Arms 
Export Control Act (22 U.S.C. 2778) is amended by adding 
at the end the following: 
‘‘(k) Whenever the United States maintains an arms 
embargo pursuant to United States law, or through public 
notice by the President or Secretary of State pursuant to 
the authorities of this Act, no defense article or defense serv-
ice subject to sections 120–130 of title 22, Code of Federal 
Regulations (commonly known as the ‘International Traffic 
in Arms Regulations’) and no dual use good or technology 
subject to sections 730–774 of title 15, Code of Federal Reg-
153
ulations (commonly known as the ‘Export Administration 
Regulations’) shall be sold or transferred to the military, 
intelligence or other security forces of the embargoed govern-
ment, including any associated governmental agency, sub-
division, entity, or other person acting on their behalf, un-
less, at a minimum and without prejudice to any addi-
tional requirements established in United States law or reg-
ulation, the Secretary of State and the Secretary of Defense 
have concurred in the sale or transfer through issuance of 
a license.’’. 
(c) ESTABLISHMENT OF CONTROLS.—The Secretary of 
State shall consult with the Secretary of Commerce to en-
sure the establishment of appropriate foreign policy and na-
tional security controls and license requirements under the 
Export Administration Regulations in order to ensure the 
effective implementation of section 38(k) of the Arms Export 
Control Act, as added by subsection (b). 
(d) REPORT.—Not later than 120 days after the date 
of the enactment of this Act, the Secretary of State shall 
submit to the appropriate congressional committees a report 
that describes the actions taken to implement the require-
ments of subsection (c).
154
SEC. 734. CONTROL OF ITEMS ON MISSILE TECHNOLOGY 
CONTROL REGIME ANNEX. 
(a) SENSE OF CONGRESS.—It is the sense of Congress 
that all proposals to export or transfer to foreign persons 
by other means, whether in the United States or abroad, 
and any other activities subject to regulation under section 
38, 39, or 40 of the Arms Export Control Act (22 U.S.C. 
2778, 2779, or 2780), relating to items on the Missile Tech-
nology Control Regime Annex, should be accorded stringent 
control and scrutiny consistent with the purposes of section 
71 of the Arms Export Control Act (22 U.S.C. 2797). 
(b) CONTROL OF ITEMS ON MTCR ANNEX.—The Sec-
retary of State, in coordination with the Secretary of Com-
merce, the Attorney General, and the Secretary of Defense, 
shall ensure that all items on the MTCR Annex are subject 
to stringent control by the Government of the United States 
pursuant to the International Traffic in Arms Regulations 
and the Export Administration Regulations. 
(c) CERTIFICATION.—Not later than March 1 of each 
year, the Secretary of State, in coordination with the Sec-
retary of Commerce, the Attorney General and the Secretary 
of Defense, shall submit to the appropriate congressional 
committees a report that contains—
(1) a certification that the requirement of sub-
section (b) has been met for the prior year, or if the
155
requirement has not been met, the reasons therefor; 
and 
(2) a description of the updated coverage, if any, 
of the regulations referred to in subsection (b) with re-
spect to all items on the MTCR Annex and an expla-
nation of any areas of overlap or omissions, if any, 
among the regulations. 
SEC. 735. UNLAWFUL USE OF UNITED STATES DEFENSE AR-
TICLES. 
(a) INELIGIBILITY FOR TERRORIST RELATED TRANS-
ACTIONS.—Section 3(c)(1) of the Arms Export Control Act 
(22 U.S.C. 2753(c)(1)) is amended—
(1) in each of subparagraphs (A) and (B), by 
striking ‘‘or any predecessor Act,’’ and inserting ‘‘any 
predecessor Act, or licensed or approved under section 
38 of this Act, to carry out a transaction with a 
country, the government of which the Secretary of 
State has determined is a state sponsor of inter-
national terrorism for purposes of section 6(j)(1) of 
the Export Administration Act of 1979 (50 U.S.C. 
App. 2405(j)(1)), or otherwise uses such defense arti-
cles or defense services’’; and 
(2) by adding at the end the following: 
‘‘(C) In this section, the term ‘transaction’ means the 
taking of any action, directly or indirectly, by a foreign
156
country that would be a transaction prohibited by section 
40 of this Act with respect to the United States Government 
and United States persons.’’. 
(b) REPORTING REQUIREMENT.—Section 3(e) of the 
Arms Export Control Act (22 U.S.C. 2753(e)) is amended 
by inserting after ‘‘the Foreign Assistance Act of 1961,’’ the 
following: ‘‘regardless of whether the article or service has 
been sold or otherwise furnished by the United States Gov-
ernment or licensed under section 38 of this Act,’’. 
Subtitle E—Strengthening United 
States Missile Nonproliferation 
Law 
SEC. 741. PROBATIONARY PERIOD FOR FOREIGN PERSONS. 
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, upon the expiration, or the granting of a waiv-
er, on or after January 1, 2003, of sanctions against a for-
eign person imposed under section 73(a) of the Arms Export 
Control Act (22 U.S.C. 2797b(a)) or under section 
11B(b)(1) of the Export Administration Act of 1979 (50 
U.S.C. App. 2410b(b)(1)), as continued in effect under the 
International Emergency Economic Powers Act, a license 
shall be required, for a period of not less than three years, 
for the export to that foreign person of all items controlled 
for export under section 5 or 6 of the Export Administra-
tion Act of 1979 (50 U.S.C. App. 2404, 2405), as continued
157
in effect under the International Emergency Economic 
Powers Act, in accordance with the Export Administration 
Regulations. 
(b) TERMINATION.—Subsection (a) shall not apply to 
a foreign person 30 days after the President notifies the 
Committee on International Relations of the House of Rep-
resentatives and the Committee on Banking, Housing and 
Urban Affairs and the Committee on Foreign Relations of 
the Senate that the President has determined that—
(1) the foreign person has—
(A) ceased all activity related to the origi-
nal imposition of sanctions under section 73(a) 
of the Arms Export Control Act or section 
11B(b)(1) of the Export Administration Act of 
1979, as the case may be; and 
(B) has instituted a program of trans-
parency measures under which the United States 
will be able to verify, for a period of at least 3 
years, that the foreign person is not engaging in 
prohibited activities under those provisions of 
law referred to in paragraph (1); and 
(2) there has been an appropriate resolution of 
the original violation or violations, such as financial 
penalties, incarceration, destruction of prohibited
158
items, or other appropriate measures taken to prevent 
a recurrence of the violation or violations. 
(c) WAIVER.—Subsection (a) shall not apply to a for-
eign person if—
(1) the President issues a waiver of sanctions 
imposed upon that person under section 73(a) of the 
Arms Export Control Act or under section 11B(b)(1) 
of the Export Administration Act of 1979, on the 
basis that the waiver is essential to the national secu-
rity of the United States; 
(2) the President designates the waiver as classi-
fied information (as defined in section 606 of the Na-
tional Security Act of 1947 (50 U.S.C. 426)); and 
(3) the President transmits to the committees re-
ferred to in subsection (b)—
(A) a justification for designating the waiv-
er as classified information; and 
(B) a description of—
(i) any discussions with the foreign 
person, concerning the activities that were 
the subject of the sanctions, that have been 
conducted by United States Government of-
ficials, or by officials of the government of 
the country that has jurisdiction over the
159
foreign person or in which the foreign per-
son conducted such activities; and 
(ii) any actions that the foreign per-
son, or the government of the country that 
has jurisdiction over the foreign person or 
in which the foreign person conducted the 
activities that were the subject of the sanc-
tions, has taken to prevent a recurrence of 
the same or similar activities. 
SEC. 742. STRENGTHENING UNITED STATES MISSILE PRO-
LIFERATION SANCTIONS ON FOREIGN PER-
SONS. 
(a) ARMS EXPORT CONTROL ACT.—Section 73(a)(2) 
of the Arms Export Control Act (22 U.S.C. 2797b(a)(2)) 
is amended by striking ‘‘2 years’’ each place it appears and 
inserting ‘‘4 years’’. 
(b) PUBLIC INFORMATION.—Section 73(e)(2) of the 
Arms Export Control Act (22 U.S.C. 2797b(e)(2)) is amend-
ed by adding at the end the following new sentences: ‘‘Such 
report may be classified only to the extent necessary to pro-
tect intelligence sources and methods. If the report is so clas-
sified, the President shall make every effort to acquire suffi-
cient alternative information that would allow a subsequent 
unclassified version of the report to be issued.’’.
160
(c) EXPORT ADMINISTRATION ACT
OF 1979.—Any 
sanction imposed on a foreign person under section 
11B(b)(1) of the Export Administration Act of 1979 (50 
U.S.C. App. 2410b(b)(1)), as continued in effect under the 
International Emergency Economic Powers Act, shall be in 
effect for a period of four years beginning on the date on 
which the sanction was imposed. 
(d) APPLICABILITY.—The amendments made by sub-
sections (a) and (b) and the provisions of subsection (c) 
shall apply to all sanctions imposed under section 73(a) 
of the Arms Export Control Act or section 11B(b)(1) of the 
Export Administration Act of 1979, as continued in effect 
under the International Emergency Economic Powers Act, 
by reason of acts giving rise to such sanctions that were 
committed by foreign persons on or after January 1, 2004. 
SEC. 743. COMPREHENSIVE UNITED STATES MISSILE PRO-
LIFERATION SANCTIONS ON ALL RESPON-
SIBLE FOREIGN PERSONS. 
(a) ARMS EXPORT CONTROL ACT.—Section 73(a) of 
the Arms Export Control Act (22 U.S.C. 2797b(a)) is 
amended by adding at the end the following new paragraph: 
‘‘(3)(A) Sanctions imposed upon a foreign person 
under paragraph (2) shall also be imposed on any govern-
mental entity that the President determines exercises effec-
161
tive control over, benefits from, or directly or indirectly fa-
cilitates the activities of that foreign person. 
‘‘(B) When a sanction is imposed on a foreign person 
under paragraph (2), the President may also impose that 
sanction on any other person or entity that the President 
has reason to believe has or may acquire prohibited items 
with the intent to transfer to that foreign person, or provide 
to that foreign person access to, such items. In this subpara-
graph, ‘prohibited items’ are items that may not be exported 
to that foreign person on account of the sanction imposed 
on that foreign person. 
‘‘(C) The President may also prohibit, for such period 
of time as the President may determine, any transaction 
or dealing, by a United States person or within the United 
States, with any foreign person on whom sanctions have 
been imposed under this subsection. 
‘‘(D) The President shall report on an annual basis 
to the Committee on International Relations of the House 
of Representatives and the Committee on Foreign Relations 
of the Senate the identity of any foreign person that engages 
in any transaction or activity with a foreign person on 
whom sanctions have been imposed under this subsection 
that either—
162
‘‘(i) would be the basis for imposing sanctions 
under subparagraph (B) but for which sanctions have 
not been imposed; or 
‘‘(ii) would be the basis for imposing sanctions 
under subparagraph (C) if the transaction or activity 
had been carried out by a United States person or by 
a person in the United States. 
Such report shall be unclassified to the maximum extent 
feasible, but may include a classified annex.’’. 
(b) DEFINITION OF PERSON.—Section 74(a)(8)(A) of 
the Arms Export Control Act (22 U.S.C. 2797c(a)(8)(A)) 
is amended to read as follows: 
‘‘(8)(A) The term ‘person’ means—
‘‘(i) a natural person; 
‘‘(ii) a corporation, business associa-
tion, 
partnership, 
society, 
trust, 
transnational corporation, or transnational 
joint venture, any other nongovernmental 
entity, organization, or group, and any gov-
ernmental entity; 
‘‘(iii) any subsidiary, subunit, or par-
ent entity of any business enterprise or 
other organization or entity listed in clause 
(ii); and
163
‘‘(iv) any successor of any business en-
terprise or other organization or entity list-
ed in clause (ii) or (iii); and’’. 
(c) EXPORT ADMINISTRATION ACT OF 1979.—
(1) SANCTIONS IMPOSED ON GOVERNMENTAL EN-
TITIES.—Any sanction imposed on a foreign person 
under section 11B(b)(1)(B) of the Export Administra-
tion Act of 1979 (50 U.S.C. App. 2410b(b)(1)(B)), as 
continued in effect under the International Emer-
gency Economic Powers Act (in this subsection re-
ferred to as a ‘‘dual use sanction’’), shall also be im-
posed on any governmental entity that the President 
determines exercises effective control over, benefits 
from, or directly or indirectly facilitates the activities 
of that foreign person. 
(2) OTHER ENTITIES.—When a dual use sanc-
tion is imposed on a foreign person, the President 
may also impose that sanction on any other person 
or entity that the President has reason to believe has 
or may acquire prohibited items with the intent to 
transfer to that foreign person, or provide to that for-
eign person access to, such items. In this paragraph, 
‘‘prohibited items’’ are items that may not be ex-
ported to that foreign person on account of the dual 
use sanction imposed on that foreign person.
164
(3) TRANSACTIONS
BY
THIRD
PARTIES.—The 
President may also prohibit, for such period of time 
as he may determine, any transaction or dealing, by 
a United States person or within the United States, 
with any foreign person on whom dual use sanctions 
have been imposed. 
(4) REPORT.—The President shall submit on an 
annual basis to the Committee on International Rela-
tions of the House of Representatives and the Com-
mittee on Banking, Housing and Urban Affairs and 
the Committee on Foreign Relations of the Senate a 
report that contains the identity of any foreign person 
that engages in any transaction or activity with a 
foreign person on whom dual use sanctions have been 
imposed that either—
(A) would be the basis for imposing dual 
use sanctions under paragraph (2) but for which 
such sanctions have not been imposed; or 
(B) would be the basis for imposing dual 
use sanctions under paragraph (3) if the trans-
action or activity had been carried out by a 
United States person or by a person in the 
United States. 
Such report shall be unclassified to the maximum ex-
tent feasible, but may include a classified annex.
165
(5) DEFINITIONS.—In this subsection: 
(A) 
MISSILE
EQUIPMENT
OR
TECH-
NOLOGY.—The term ‘‘missile equipment or tech-
nology’’ has the meaning given that term in sec-
tion 11B(c) of the Export Administration Act of 
1979 (50 U.S.C. App. 2410b(c)). 
(B) PERSON.—
(i) The term ‘‘person’’ means—
(I) a natural person; 
(II) a corporation, business asso-
ciation, partnership, society, trust, 
transnational 
corporation, 
or 
transnational joint venture, any other 
nongovernmental entity, organization, 
or group, and any governmental enti-
ty; 
(III) any subsidiary, subunit, or 
parent entity of any business enter-
prise or other organization or entity 
listed in subclause (II); and 
(IV) any successor of any business 
enterprise or other organization or en-
tity listed in subclause (II) or (III). 
(ii) In the case of countries where it 
may be impossible to identify a specific gov-
166
ernmental entity referred to in clause (i), 
the term ‘‘person’’ means—
(I) all activities of that govern-
ment relating to the development or 
production of any missile equipment or 
technology; and 
(II) all activities of that govern-
ment affecting the development or pro-
duction of aircraft, electronics, and 
space systems or equipment. 
(C) UNITED
STATES
PERSON.—The term 
‘‘United States person’’ has the meaning given 
that term in section 16(2) of the Export Admin-
istration Act of 1979 (50 U.S.C. App. 2415(2)). 
(d) EFFECTIVE DATE.—The amendments made by 
subsections (a) and (b) shall apply with respect to sanctions 
imposed on or after January 1, 2004, on foreign persons 
under section 73(a)(2) of the Arms Export Control Act, and 
the provisions of subsection (c) shall apply with respect to 
sanctions imposed on or after January 1, 2004, on foreign 
persons under section 11B(b)(1) of the Export Administra-
tion Act of 1979 (50 U.S.C. App. 2410b(b)(1)), as continued 
in effect under the International Emergency Economic 
Powers Act.
167
Subtitle F—Security Assistance and 
Related Provisions 
SEC. 751. AUTHORITY TO TRANSFER NAVAL VESSELS TO 
CERTAIN FOREIGN COUNTRIES. 
(a) AUTHORITY TO TRANSFER BY GRANT.—The Presi-
dent is authorized 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) GREECE.—To the Government of Greece, the 
OSPREY class minehunter coastal ship PELICAN 
(MHC–53). 
(2) EGYPT.—To the Government of Egypt, the 
OSPREY class minehunter coastal ships CARDINAL 
(MHC–60) and RAVEN (MHC–61). 
(3) PAKISTAN.—To the Government of Pakistan, 
the SPRUANCE class destroyer ship FLETCHER 
(DD–992). 
(4) TURKEY.—To the Government of Turkey, the 
SPRUANCE class destroyer ship CUSHING (DD–
985). 
(b) AUTHORITY TO TRANSFER BY SALE.—The Presi-
dent is authorized to transfer vessels to foreign countries 
on a sale basis under section 21 of the Arms Export Control 
Act (22 U.S.C. 2761), as follows:
168
(1) INDIA.—To the Government of India, the 
AUSTIN class amphibious transport dock ship 
TRENTON (LPD–14). 
(2) GREECE.—To the Government of Greece, the 
OSPREY class minehunter coastal ship HERON 
(MHC–52). 
(3) TURKEY.—To the Government of Turkey, the 
SPRUANCE class destroyer ship O’BANNON (DD–
987). 
(c) GRANTS
NOT COUNTED
IN ANNUAL TOTAL
OF 
TRANSFERRED EXCESS DEFENSE ARTICLES.—The value of 
a vessel transferred to another country on a grant basis pur-
suant to authority provided by subsection (a) shall not be 
counted against the aggregate value of excess defense articles 
transferred to countries in any fiscal year under section 
516(g) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2321j(g)). 
(d) COSTS OF TRANSFERS.—Any expense incurred by 
the United States in connection with a transfer authorized 
under subsection (a) or (b) shall be charged to the recipient. 
(e) REPAIR AND REFURBISHMENT IN UNITED STATES 
SHIPYARDS.—To the maximum extent practicable, the 
President shall require, as a condition of the transfer of a 
vessel under this section, that the country to which the vessel 
is transferred have such repair or refurbishment of the vessel
169
as is needed, before the vessel joins the naval forces of that 
country, performed at a shipyard located in the United 
States, including a United States Navy shipyard. 
(f) EXPIRATION OF AUTHORITY.—The authority to 
transfer a vessel under this section shall expire at the end 
of the two-year period beginning on the date of the enact-
ment of this Act. 
SEC. 752. TRANSFER OF OBSOLETE AND SURPLUS ITEMS 
FROM KOREAN WAR RESERVES STOCKPILE 
AND REMOVAL OR DISPOSAL OF REMAINING 
ITEMS. 
(a) TRANSFER OF ITEMS IN KOREAN STOCKPILE.—
(1) AUTHORITY.—Notwithstanding section 514 of 
the Foreign Assistance Act of 1961 (22 U.S.C. 2321h), 
the President is authorized to transfer to the Republic 
of Korea, in return for concessions to be negotiated by 
the Secretary of Defense, any or all of the items de-
scribed in paragraph (2). 
(2) COVERED ITEMS.—The items referred to in 
paragraph (1) are munitions, equipment, and mate-
riel such as tanks, trucks, artillery, mortars, general 
purpose bombs, repair parts, barrier material, and 
ancillary equipment, if such items are—
(A) obsolete or surplus items;
170
(B) in the inventory of the Department of 
Defense; 
(C) intended for use as reserve stocks for the 
Republic of Korea; and 
(D) as of the date of the enactment of this 
Act, located in a stockpile in the Republic of 
Korea. 
(3) VALUATION OF CONCESSIONS.—(A) The value 
of concessions negotiated pursuant to paragraph (1) 
shall be at least equal to—
(i) the fair market value of the items trans-
ferred; minus 
(ii) the savings to the Department of De-
fense of the cost of removal of the items from the 
Republic of Korea and disposal of the items that 
would have been incurred by the Department but 
for the transfer of the items pursuant to para-
graph (1), not to exceed the fair market value of 
the items transferred. 
(B) The concessions may include cash compensa-
tion, service, waiver of charges otherwise payable by 
the United States, such as charges for demolition of 
United States-owned or United States-intended muni-
tions, and other items of value.
171
(4) PRIOR NOTIFICATIONS OF PROPOSED TRANS-
FERS.—Not less than 30 days before making a trans-
fer under the authority of this subsection, the Presi-
dent shall transmit to the Committees on Armed Serv-
ices and International Relations of the House of Rep-
resentatives and the Committees on Armed Services 
and Foreign Relations of the Senate a detailed notifi-
cation of the proposed transfer, which shall include 
an identification of the items to be transferred and 
the concessions to be received. 
(5) TERMINATION OF AUTHORITY.—No transfer 
may be made under the authority of this subsection 
more than three years after the date of the enactment 
of this Act. 
(b) REMOVAL OR DISPOSAL OF REMAINING ITEMS IN 
KOREAN STOCKPILE.—The President shall provide for the 
removal or disposal of all items described in subsection 
(a)(2) that are not transferred pursuant to the authority 
of subsection (a) by not later than four years after the date 
of the enactment of this Act. 
SEC. 753. EXTENSION OF PAKISTAN WAIVERS. 
The Act entitled ‘‘An Act to authorize the President 
to exercise waivers of foreign assistance restrictions with re-
spect to Pakistan through September 30, 2003, and for other
172
purposes’’, approved October 27, 2001 (Public Law 107–
57; 115 Stat. 403), is amended—
(1) in section 1(b)—
(A) in the heading, by striking ‘‘FISCAL 
YEARS 2005 AND 2006’’ and inserting ‘‘FISCAL 
YEARS 2006 AND 2007’’; and 
(B) in paragraph (1), by striking ‘‘2005 or 
2006’’ and inserting ‘‘2006 or 2007’’; 
(2) in section 3(2), by striking ‘‘and 2006’’ and 
inserting ‘‘2006, and 2007’’; and 
(3) in section 6, by striking ‘‘2006’’ and insert-
ing ‘‘2007’’. 
SEC. 754. REPORTING REQUIREMENT FOR FOREIGN MILI-
TARY TRAINING. 
Subsection (a)(1) of section 656 of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2416) is amended—
(1) by striking ‘‘January 31’’ and inserting 
‘‘March 1’’; and 
(2) by striking ‘‘and all such training proposed 
for the current fiscal year’’. 
SEC. 755. CERTAIN SERVICES PROVIDED BY THE UNITED 
STATES IN CONNECTION WITH FOREIGN MILI-
TARY SALES. 
(a) QUALITY ASSURANCE, INSPECTION, CONTRACT AD-
MINISTRATION, AND CONTRACT AUDIT DEFENSE SERV-
173
ICES.—Section 21(h)(1)(A) of the Arms Export Control Act 
(22 U.S.C. 2761(h)(1)(A)) is amended by inserting after 
‘‘North Atlantic Treaty Organization’’ the following: ‘‘or the 
Governments of Australia, New Zealand, Japan, or Israel’’. 
(b) CATALOGING
DATA
AND
SERVICES.—Section 
21(h)(2) of the Arms Export Control Act (22 U.S.C. 
2761(h)(2)) is amended by striking ‘‘or to any member gov-
ernment of that Organization if that Organization or mem-
ber government’’ and inserting ‘‘, to any member of that 
Organization, or to the Governments of Australia, New Zea-
land, Japan, or Israel if that Organization, member govern-
ment, or the Governments of Australia, New Zealand, 
Japan, or Israel’’. 
SEC. 756. MARITIME INTERDICTION PATROL BOATS FOR 
MOZAMBIQUE. 
(a) IN GENERAL.—Of the amounts made available to 
carry out section 23 of the Arms Export Control Act for 
fiscal year 2006, there is authorized to be appropriated 
$1,000,000 for refurbishment, delivery, operational train-
ing, and related costs associated with the provision of not 
more than four excess coastal patrol boats to the Govern-
ment of Mozambique for maritime patrol and interdiction 
activities. 
(b) AVAILABILITY.—Amounts appropriated pursuant 
to the authorization of appropriations under subsection (a)
174
are authorized to remain available until September 30, 
2007. 
SEC. 757. REIMBURSEMENT FOR INTERNATIONAL MILITARY 
EDUCATION AND TRAINING. 
Section 541 of the Foreign Assistance Act of 1961 (22 
U.S.C. 2347) is amended—
(1) in the first sentence, by striking ‘‘The Presi-
dent’’ and inserting ‘‘(a) The President’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(b) The President shall seek reimbursement for mili-
tary education and training furnished under this chapter 
from countries using assistance under section 23 of the 
Arms Export Control Act (22 U.S.C. 2763; relating to the 
the Foreign Military Financing Program) to purchase such 
military education and training at a rate comparable to 
the rate charged to countries receiving grant assistance for 
military education and training under this chapter.’’. 
TITLE VIII—NUCLEAR BLACK 
MARKET ELIMINATION ACT 
SEC. 801. SHORT TITLE. 
This title may be cited as the ‘‘Nuclear Black Market 
Elimination Act of 2005’’.
175
Subtitle A—Sanctions for Transfers 
of Nuclear Enrichment, Reproc-
essing, and Weapons Technology, 
Equipment and Materials In-
volving 
Foreign 
Persons 
and 
Terrorists 
SEC. 811. AUTHORITY TO IMPOSE SANCTIONS ON FOREIGN 
PERSONS. 
(a) DETERMINATION OF NUCLEAR ACTIVITIES BY FOR-
EIGN PERSONS.—Notwithstanding any other provision of 
law, the President is authorized to impose any or all of 
the sanctions described in subsection (b) whenever the Presi-
dent determines that a foreign person participated, on or 
after the date of the enactment of this Act, in the export, 
transfer or trade of—
(1) nuclear enrichment or reprocessing equip-
ment, materials, or technology to any nonnuclear-
weapon state (as defined in section 102(c) of the Arms 
Export Control Act) that—
(A) does not possess functioning nuclear en-
richment or reprocessing plants as of January 1, 
2004; and 
(B)(i) does not have in force an additional 
protocol with the International Atomic Energy 
Agency for the application of safeguards (as de-
176
rived from IAEA document INFCIRC/540 and 
related corrections and additions); or 
(ii) is developing, manufacturing, or ac-
quiring a nuclear explosive device; or 
(2) any nuclear explosive device, or design infor-
mation or component, equipment, materials, or other 
items or technology that—
(A) is designated for national export con-
trols under the Nuclear Supplier Group Guide-
lines for the Export of Nuclear Material, Equip-
ment and Technology (published by the Inter-
national Atomic Energy Agency as IAEA docu-
ment INFICRC/254/Rev. 6/Part 1 and subse-
quent revisions) and the Guidelines for Transfers 
of Nuclear-Related Dual-Use Equipment, Mate-
rial, and Related Technology (published as IAEA 
document INFCIRC/254/Rev. 5/ Part 2 and sub-
sequent revisions); and 
(B) contributes to the development, manu-
facture, or acquisition of a nuclear explosive de-
vice by—
(i) a nonnuclear weapon state; or 
(ii) a foreign person.
177
(b) SANCTIONS.—The sanctions referred to in sub-
section (a) that are to be imposed on a foreign person are 
the following: 
(1) No assistance may be provided to the foreign 
person under the Foreign Assistance Act of 1961, and 
the foreign person may not participate in any assist-
ance program of the United States Government. Any 
such assistance being provided to the foreign person, 
and any participation in such assistance program by 
the foreign person, on the date on which the sanction 
under this paragraph is imposed, shall be terminated 
as of such date. 
(2) The United States Government may not sell 
any defense articles, defense services, or design or con-
struction services to the foreign person under the For-
eign Assistance Act of 1961 or the Arms Export Con-
trol Act, and any contract to sell such articles or serv-
ices, under either such Act, that is in effect on the 
date on which the sanction under this paragraph is 
imposed, shall be terminated as of such date. 
(3) Licenses or any other approval may not be 
issued to the foreign person for the export or import 
of any defense articles or defense services under the 
Arms Export Control Act or its implementing regula-
tions. Any such license or approval that is in effect