Details of House-Passed Defense Trade Controls Performance Improvement Act

Although the House has passed H.R. 2410, it is not in effect. Generally, in order for a bill to be implemented, identical versions of that bill must be passed by both the House and Senate and then the bill must be approved (enacted) by the President.

Highlights of the Defense Trade Controls Performance Improvement Act of 2009, passed by the House on June 10, 2009, include (partial list):

Strategic Review, Assessment of U.S. Export Controls System

The bill would require the President to conduct a comprehensive and systematic review and assessment of the U.S. arms export controls system in the context of U.S. national security interests and strategic foreign policy objectives not later than March 31, 2010.

The President would also brief congressional committees periodically and provide a report on the results of its review.

Performance Goals for USML Export License, CJ Determination Applications

The State Department's Directorate of Defense Trade Controls (DDTC) would be required to establish and maintain the following performance goals:

1. A processing time for review of each application for a license to export USML items (other than a Manufacturing License Agreement) of not more than 60 days from the date of receipt of the application.
2. A processing time for review of each commodity jurisdiction (CJ) determination application of not more than 60 days from the date of receipt of the application.
3. A total number of export license applications for USML items (as described in 1. above) that are unprocessed of not more than 7% of the total number of such applications submitted in the preceding calendar year.

If an application described in 1. and 2. above is not processed within the specified time period, DDTC would be required to review the status of the application to determine if further action is required to process the application. The bill would also require the State Department to take additional actions, including notifying Congress, if the application is not processed within 90 days.

Processing of Applications for U.S.-Origin Equipment Would be a Priority

The bill would make it the policy of the DDTC to ensure that, to the maximum extent practicable, the processing time for review of applications (described in 1. above) to export USML items that are not subject to the requirements of 22 USC 2776(b) or (c) to U.S. allies in direct support of combat operations or peacekeeping or humanitarian operations with U.S. Armed Forces is not more than 7 days from the date of receipt of the application.

The bill would also establish a goal for DDTC that, to the maximum extent practicable, the processing time for review of applications (described in 1. above) to export USML items that are not subject to the requirements of 22 USC 2776(b) or (c) to government security agencies of U.S. NATO allies, Australia, New Zealand, Japan, South Korea, Israel, and, as appropriate, other major non-NATO allies for any purpose other than the purpose described above is not more than 30 days from the date of receipt of the application.

In addition, the bill would make it the policy of DDTC to prioritize the processing of applications for licenses and agreements necessary for the export of U.S.-origin equipment over applications for Manufacturing License Agreements.

Certain Information from CJ Determinations to be Posted Online

The Secretary of State would be required, upon making a CJ determination, to publish on the State Department's Web site within 30 days certain information including the name of the item's manufacturer; a brief general description of the item; the item's model or part number; and the item's USML designation.

Adequate Staffing, Resources for DDTC

The Secretary of State would be required to ensure that DDTC has the necessary staff and resources to carry out the requirements of the Defense Trade Controls Performance Improvement Act of 2009.

Licensing Officers. For fiscal year 2011 and each subsequent fiscal year, the Secretary of State would be required to ensure that DDTC has at least 1 licensing officer for every 1,250 applications for licenses and other authorizations to export items on the USML by not later than the third quarter of such fiscal year, based on the number of licenses and other authorizations expected to be received during such fiscal year.

Staff for CJ Determinations. For each of the fiscal years 2010 through 2012, the Secretary of State shall ensure that DDTC has, to the extent practicable, not less than three individuals assigned to review applications for CJ determinations.

ICE investigations of ITAR violations.U.S. Immigration and Customs Enforcement (ICE) would be authorized to investigate ITAR violations on behalf of DDTC.

Review of ITAR, USML

The Secretary of State would be required to review not less than 20% of the goods and technology on the USML and ITAR every calendar year, with input from U.S. defense manufacturers and other interested parties to determine if export controls on various items should be revised. (This would ensure that the entire USML is reviewed every 5 years.) The Secretary would also be required to report to Congress.

Special Licensing Authorization for Certain Exports to NATO Member States, Australia, Japan, New Zealand, Israel, and South Korea

A new subsection would be added at the end of 22 USC 2778 to allow the President to provide for special licensing authorization for exports of U.S.-manufactured spare and replacement parts or components listed in an application for such special licensing authorization in connection with defense items previously exported to NATO member states, Australia, Japan, New Zealand, Israel, and South Korea. A special licensing authorization would be effective for a period not to exceed 5 years.

(See bill text for a description of the term "U.S.-manufactured spare and replacement parts or components.")

The President would be required to issue regulations to implement the new special licensing authorization not later than 180 days after the date of enactment.

Information on Status of License Applications Under AECA Chapter 3

The President would be required, within one year of enactment, to make available to persons who have pending license applications under AECA Chapter 3 and the committees of jurisdiction the ability to access electronically current information on the status of each license application required to be submitted.

Sense of Senate on DTAG

This section calls on the State Department to make the Defense Trade Advisory Committee's membership more diverse by including labor, academics, etc. in addition to the defense industry itself. In addition, the Secretary of State is instructed to share significant planned rules and policy shifts with DTAG for comment.

(See ITT's Online Archives or 06/15/09 news, 09061520, for previous BP summary on the House passage of H.R. 2410.)

H.R. 2410 available at http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=111_cong_reports&docid=f:hr136.111.pdf.