Sec. 2. Modification of certification and report requirements relating to sales of major defense equipment with respect to which nonrecurring costs of research, development, and production are waived or reduced under the Arms Export Control Act
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Section 36(b) of the Arms Export Control Act ( 22 U.S.C. 2776(b) ) is amended by adding at the end the following: In the case of any letter of offer to sell any major defense equipment for $14,000,000 or more, in addition to the other information required to be contained in a certification submitted to the Congress under this subsection, or a similar certification prior to finalization of a letter of offer to sell, each such certification shall include the value of any charge or charges for the proportionate amount of any nonrecurring costs of research, development, and production of the major defense equipment that was waived or reduced under section 21(e).
Each such certification shall also include information on— the type of waiver or reduction; the percentage of otherwise obligated nonrecurring costs with respect to which the waiver or reduction comprises; a justification for issuance of the waiver or reduction; in the case of a waiver or reduction made under paragraph (2)(A) of section 21(e)— the manner in which a sale would significantly advance standardization with the foreign countries or international organization described in such section; and the extent to which the sale’s significance should be considered relative to the existing capabilities of the foreign country or international organization and the manner in which the major defense equipment would enhance the capacity of the country or organization in joint operations; and in the case of a waiver or reduction made under paragraph (2)(B) of section 21(e)— the military needs and ability to pay of the foreign country or international organization; the price and capability of other relevant options that are or likely would be considered by the foreign country or international organization for purchase in lieu of the major defense equipment described in the letter of offer; and the previous buying history and existing capabilities of the foreign country or international organization. .
Section 36(a) of the Arms Export Control Act ( 22 U.S.C. 2776(a) ) is amended— in paragraph (11), by striking and at the end; in paragraph (12), by striking the period at the end and inserting ; and ; and by adding at the end the following: with respect to requests to waive or reduce nonrecurring costs with respect to the sale of major defense equipment for $14,000,000 or more under this Act, a report on— the total number of such requests that have been approved or denied during the quarter, including the total number of such requests that are currently under review and pending a decision; for each such request— an identification of the foreign country or international organization requesting the waiver or reduction; the total amount of nonrecurring costs to be waived or reduced; a description of the major defense equipment to be purchased; and the justification for the waiver or reduction; and for each such request that is approved, the actual amount of nonrecurring costs that are waived or reduced that are attributable to quantities of major defense equipment sold under such request. .
Section 21(e)(2) of the Arms Export Control Act ( 22 U.S.C. 2761(e)(2) ) is amended— in subparagraph (B)— in the matter preceding clause (i)— by striking The President and inserting Except as provided subparagraphs
(D)and (E), the President ; and by striking that— and all that follows through
(i)imposition and inserting that imposition ; by striking sale; or and inserting sale. ; and by striking clause (ii); and by inserting at the end the following new subparagraphs: The President may not waive the charge or charges for a proportionate amount of any nonrecurring costs that would otherwise be considered appropriate under paragraph (1)(B) for a particular sale to a country or international organization for a two-year period that begins on any of the following dates: The date of approval of a waiver under paragraph (1)(B) of a charge or charges that are valued at $16,000,000 or more under this Act with respect to a sale to the country or organization. The date that is the last day of any five-year period in which the country or organization receives 15 or more waivers of a charge or charges under paragraph (1)(B) with respect to sales to the country or organization. The date that is the last day of any five-year period in which the country or organization receives waivers of a charge or charges under paragraph (1)(B) that are valued at $425,000,000 or more under this Act with respect to sales to the country or organization. In the case of any proposed waiver of the charge or charges which would otherwise be considered appropriate under paragraph (1)(B) for a particular sale to a country or international organization of major defense equipment for $10,000,000 or more under this Act, the President shall submit to the Speaker of the House of Representatives, the Committee on Foreign Affairs of the House of Representatives, and to the chairman of the Committee on Foreign Relations of the Senate a notification with respect to such proposed waiver. The President may not waive such charge or charges if Congress, not later than 60 calendar days after receiving such notification, enacts a joint resolution prohibiting the proposed waiver. . Section 21(e) of the Arms Export Control Act ( 22 U.S.C. 2761(e) ) is amended— in paragraph (1), by inserting subject to paragraph (4), before administrative services ; and by adding at the end the following new paragraph: For each fiscal year beginning on or after the date of the enactment of the Return Expenses Paid and Yielded Act, the President shall— determine a maximum aggregate amount of charges for administrative services that would be required by paragraph (1)(A) based on the ability of the Department of Defense to issue and administer letters of offer for sale of defense articles or the sale of defense services pursuant to this section or pursuant to section 22 of this Act; and submit to Congress a report that contains the determination and specifies the maximum aggregate amount of charges for administrative services. Except as provided in clause (ii), charges for administrative services that are required by paragraph (1)(A) may not exceed the maximum aggregate amount of charges for administrative services determined under subparagraph
(A)for the fiscal year involved. The President may waive the requirement of clause
(i)on a case-by-case basis if the amount of charges for administrative services that are required by paragraph (1)(A) with respect to a sale of defense articles or a sale of defense services would exceed the maximum aggregate amount of charges for administrative services determined under subparagraph
(A)for the fiscal year. . Section 43(b) of the Arms Export Control Act ( 22 U.S.C. 2792(b) ) is amended— in paragraph (1), by adding and at the end; in paragraph (2), by striking ; and and inserting a period; and by striking paragraph (3). Section 21(e)(1)(A) of the Arms Export Control Act ( 22 U.S.C. 2761(e)(1)(A) ) is amended by striking and section 43(c) . Notwithstanding any other provision of law, the Secretary of Defense, acting through the Director of the Defense Security Cooperation Agency, shall, not less than once every two years— carry out a review of user charges under the foreign military sales program and, based on the results of the review, modify the user charges as appropriate; and submit to the appropriate congressional committees a report that contains the results of the review carried out under subparagraph
(A)and a description of any user charges that, based on the results of the review, were modified under subparagraph (A). In this subsection, the term appropriate congressional committees means— the Committee on Armed Services and the Committee on Foreign Affairs of the House of Representatives; and the Committee on Armed Services and the Committee on Foreign Relations of the Senate.
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Sec. 2
Modification of certification and report requirements relating to sales of major defense equipment with respect to which nonrecurring costs of research, development, and production are waived or reduced under the Arms Export Control Act
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