Sec. 1343. EXPORT CONTROL EXEMPTIONS AND STANDARDS
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## SEC. 1343 EXPORT CONTROL EXEMPTIONS AND STANDARDS ###
(a)In General Section 38 of the Arms Export Control Act (22 U.S.C. 2778) is amended by adding at the end the following: > > ### “(l) AUKUS Defense Trade Cooperation > > > #### “(1) Determination and certification > > > ##### “(A) In general > > Not later than 120 days after the date of the enactment of this subsection, the President shall determine and certify in writing, and include a detailed justification, to the Committee on Foreign Relations of the Senate and the Committee on Foreign Affairs of the House of Representatives whether Australia or the United Kingdom has— > > > ###### “(i) > > implemented a system of export controls comparable to those of the United States that satisfies the elements of subsection (j)(2)(A)(i), (ii), (iii), and
(iv)and subsection (j)(2)(B)(i),
(ii)and
(v)for United States-origin defense articles and defense services, and for controlling the provision of military training; and > > > ###### “(ii) > > implemented a comparable exemption from its export controls for the United States. > > > ##### “(B) Matters to be included > > > ###### “(i) Requirements met > > If the President makes the determination that Australia or the United Kingdom meets the comparability standards of clauses
(i)and
(ii)of subparagraph (A), the justification required by such subparagraph shall include an assessment of how the country satisfied the specific elements described in such clauses. > > > ###### “(ii) Requirements not met > > If the President makes a determination that Australia or the United Kingdom does not meet the comparability standards of clauses
(i)and
(ii)of subparagraph (A), the justification required by such subparagraph shall include, as applicable— > > > ###### “(I) > > the specific elements of either such clause
(i)or
(ii)that were determined not to meet the comparability standards; > > > ###### “(II) > > the specific actions the country needs to take in order to meet the comparability standards; and > > > ###### “(III) > > the actions the United States is taking, as appropriate, to facilitate that the country is granted an exemption in a timely manner upon meeting the comparability standards. > > > ##### “(C) Form > > The determination and certification described in subparagraph
(A)shall be submitted in unclassified form, but may include a classified annex. > > > #### “(2) Exemption > > Upon submittal of a determination and certification to the Committee on Foreign Relations of the Senate and the Committee on Foreign Affairs of the House of Representatives that Australia or the United Kingdom has met the comparability standards of clauses
(i)and
(ii)of paragraph (1)(A), and subject to the limitation in paragraph (4), the President shall immediately exempt from the licensing or other approval requirements of this section exports and transfers (including reexports, transfers, temporary imports, and brokering activities) of defense articles and defense services between the United States and that country or among the United States, the United Kingdom, and Australia. > > > #### “(3) Reassessment > > > ##### “(A) In general > > If the President is unable to make a determination that Australia or the United Kingdom has met the comparability standards of clauses
(i)and
(ii)of paragraph (1)(A) or suspends the exemption pursuant to paragraph (5), the President shall— > > > ###### “(i) > > not less frequently than once every 120 days reassess whether the country has met those requirements; > > > ###### “(ii) > > report the results of such reassessment in writing, and include a detailed justification, to the Committee on Foreign Relations of the Senate and the Committee on Foreign Affairs of the House of Representatives; and > > > ###### “(iii) > > report on steps the country must take to establish the exemption. > > > ##### “(B) Positive reassessment > > Upon any reassessment under subparagraph
(A)in which the President determines that Australia or the United Kingdom has met the comparability standards of clauses
(i)and
(ii)of paragraph (1)(A), the President shall immediately provide to that country an exemption described in paragraph (2). > > > ##### “(C) Negative reassessment > > If the President finds in any reassessment under subparagraph
(A)that Australia or the United Kingdom has not met the comparability standards of clauses
(i)and
(ii)of paragraph (1)(A), the written reassessment shall include, as applicable— > > > ###### “(i) > > the specific elements of either such clauses that were determined not to be comparable; > > > ###### “(ii) > > the specific actions the country needs to take in order to meet the comparability standards; and > > > ###### “(iii) > > the actions the United States is taking, as appropriate, to facilitate that the country is granted an exemption in a timely manner upon meeting the comparability standards. > > > ##### “(D) Form > > The reassessment described in subparagraph (A)(ii) shall be submitted in an unclassified form, but may include a classified annex. > > > #### “(4) Limitation > > An exemption described in paragraph
(2)shall not apply to any activity (including exports, transfers, reexports, retransfers, temporary imports, or brokering) of defense articles and defense services between or among the United States, the United Kingdom, and Australia that— > > > ##### “(A) > > are excluded by those countries; > > > ##### “(B) > > are referred to in subsection (j)(1)(C)(ii); or > > > ##### “(C) > > involve individuals or entities that are not approved by— > > > ###### “(i) > > the Secretary of State; and > > > ###### “(ii) > > the Ministry of Defense, the Ministry of Foreign Affairs, or other similar authority within those countries. > > > #### “(5) Temporary suspension of exemption > > > ##### “(A) In general > > The President may suspend an exemption described in paragraph
(2)with respect to Australia or the United Kingdom if the President determines and certifies in writing, and includes a detailed justification, to the Committee on Foreign Relations of the Senate and the Committee on Foreign Affairs of the House of Representatives that— > > > ###### “(i) > > the country has ceased to implement a system of export controls comparable to those of the United States that satisfies the elements of subsection (j)(2)(A)(i), (ii), (iii), and
(iv)and subsection (j)(2)(B)(i),
(ii)and
(v)for United States-origin defense articles and defense services, and for controlling the provision of military training; and > > > ###### “(ii) > > due to a substantial change in circumstance, the suspension is necessary to protect the vital national security or foreign policy interests of the United States in relation to the country concerned; or > > > ###### “(iii) > > the country concerned has ceased to implement a comparable exemption from its export controls for the United States. > > > ##### “(B) Additional matter to be included > > The justification required to be included in the determination and certification described in subparagraph
(A)shall also include a description of the specific actions the United States and the country are taking to address the reasons for the suspension. > > > ##### “(C) Form > > The determination and certification described in subparagraph
(A)shall be submitted in unclassified form, but may include a classified annex. > > > ##### “(D) Report > > If the President reissues an exemption described in paragraph
(2)with respect to Australia or the United Kingdom that the President suspended pursuant to subparagraph (A), the President shall submit to the Committee on Foreign Relations of the Senate and the Committee on Foreign Affairs of the House of Representatives a report stating the steps the country took that allowed the exemption to be so reinstated. > > > #### “(6) Certain requirements not applicable > > > ##### “(A) In general > > Paragraphs (1), (2), and
(3)of section 3(d) shall not apply to any export or transfer that is the subject of an exemption described in paragraph (2). > > > ##### “(B) Quarterly reports > > The Secretary of State shall— > > > ###### “(i) > > require all exports and transfers that would be subject to the requirements of paragraphs (1), (2), and
(3)of section 3(d) but for the application of subparagraph
(A)to be reported to the Secretary; and > > > ###### “(ii) > > submit such reports to the Committee on Foreign Relations of the Senate and Committee on Foreign Affairs of the House of Representatives on a quarterly basis. > > > #### “(7) Sunset > > > ##### “(A) In general > > Any exemption described in paragraph
(2)shall terminate on the date that is 15 years after the date of the enactment of this subsection. > > > ##### “(B) Renewal > > The Secretary of State may renew such exemption for 5 years upon a certification to the Committee on Foreign Relations of the Senate and the Committee on Foreign Affairs of the House of Representatives that such exemption is in the vital national interest of the United States with a detailed justification for such certification.” > .”. ###
(b)Reports **[**[22 U.S.C. 2778 note](/us/usc/t22/s2778)**]** ####
(1)In general Not later than one year after the date of the enactment of this Act, and annually thereafter until no exemptions described in subsection (l)(2) of section 38 of the Arms Export Control Act (22 U.S.C. 2778), as added by subsection
(a)of this section, remain in effect, the Secretary of State shall submit to the Committee on Foreign Relations of the Senate and the Committee on Foreign Affairs of the House of Representatives a report on the operation of exemptions described in such subsection (l)(2), including whether any changes to such exemptions are likely to be made in the coming year. ####
(2)Initial report The first report submitted under paragraph
(1)shall also include an assessment of key recommendations the United States Government has provided to the Governments of Australia and the United Kingdom to revise laws, regulations, and policies of such countries that are required to implement the AUKUS partnership. ####
(3)Report on expedited review of export licenses for exports of advanced technologies Not later than 180 days after the date of the enactment of this Act, the Secretary of State, in coordination with the Secretary of Defense, shall report on the practical application of a possible “fast track” decision-making process for applications, classified or unclassified, to export defense articles and defense services to Australia, the United Kingdom, and Canada.
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Sec. 1343
EXPORT CONTROL EXEMPTIONS AND STANDARDS
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