-CITE- 22 USC Sec. 2778 -EXPCITE- TITLE 22 CHAPTER 39 SUBCHAPTER III -HEAD- Sec. 2778. Control of arms exports and imports -STATUTE- (a) Presidential control of exports and imports of defense articles and services, guidance of policy, etc.; designation of United States Munitions List; issuance of export licenses; condition for export; negotiations information (1) In furtherance of world peace and the security and foreign policy of the United States, the President is authorized to control the import and the export of defense articles and defense services and to provide foreign policy guidance to persons of the United States involved in the export and import of such articles and services. The President is authorized to designate those items which shall be considered as defense articles and defense services for the purposes of this section and to promulgate regulations for the import and export of such articles and services. The items so designated shall constitute the United States Munitions List. (2) Decisions on issuing export licenses under this section shall be made in coordination with the Director of the United States Arms Control and Disarmament Agency and shall take into account the Director's opinion as to whether the export of an article will contribute to an arms race, support international terrorism, increase the possibility of outbreak or escalation of conflict, or prejudice the development of bilateral or multilateral arms control arrangements. (3) In exercising the authorities conferred by this section, the President may require that any defense article or defense service be sold under this chapter as a condition of its eligibility for export, and may require that persons engaged in the negotiation for the export of defense articles and services keep the President fully and currently informed of the progress and future prospects of such negotiations. (b) Registration and licensing requirements for manufacturers, exporters, or importers of designated defense articles and defense services (1)(A) As prescribed in regulations issued under this section, every person (other than an officer or employee of the United States Government acting in an official capacity) who engages in the business of manufacturing, exporting, or importing any defense articles or defense services designated by the President under subsection (a)(1) of this section shall register with the United States Government agency charged with the administration of this section, and shall pay a registration fee which shall be prescribed by such regulations. Such regulations shall prohibit the return to the United States for sale in the United States (other than for the Armed Forces of the United States and its allies or for any State or local law enforcement agency) of any military firearms or ammunition of United States manufacture furnished to foreign governments by the United States under this chapter or any other foreign assistance or sales program of the United States, whether or not enhanced in value or improved in condition in a foreign country. This prohibition shall not extend to similar firearms that have been so substantially transformed as to become, in effect, articles of foreign manufacture. (B) (FOOTNOTE 1) The prohibition under such regulations required by the second sentence of subparagraph (A) shall not extend to any military firearms (or ammunition, components, parts, accessories, and attachments for such firearms) of United States manufacture furnished to any foreign government by the United States under this chapter or any other foreign assistance or sales program of the United States if - (FOOTNOTE 1) So in original. There are two subpars. designated '(B)'. (i) such firearms are among those firearms that the Secretary of the Treasury is, or was at any time, required to authorize the importation of by reason of the provisions of section 925(e) of title 18 (including the requirement for the listing of such firearms as curios or relics under section 921(a)(13) of that title); and (ii) such foreign government certifies to the United States Government that such firearms are owned by such foreign government. (B) (FOOTNOTE 1) A copy of each registration made under this paragraph shall be transmitted to the Secretary of the Treasury for review regarding law enforcement concerns. The Secretary shall report to the President regarding such concerns as necessary. (2) Except as otherwise specifically provided in regulations issued under subsection (a)(1) of this section, no defense articles or defense services designated by the President under subsection (a)(1) of this section may be exported or imported without a license for such export or import, issued in accordance with this chapter and regulations issued under this chapter, except that no license shall be required for exports or imports made by or for an agency of the United States Government (A) for official use by a department or agency of the United States Government, or (B) for carrying out any foreign assistance or sales program authorized by law and subject to the control of the President by other means. (3)(A) For each of the fiscal years 1988 and 1989, $250,000 of registration fees collected pursuant to paragraph (1) shall be credited to a Department of State account, to be available without fiscal year limitation. Fees credited to that account shall be available only for the payment of expenses incurred for - (i) contract personnel to assist in the evaluation of munitions control license applications, reduce processing time for license applications, and improve monitoring of compliance with the terms of licenses; and (ii) the automation of munitions control functions and the processing of munitions control license applications, including the development, procurement, and utilization of computer equipment and related software. (B) The authority of this paragraph may be exercised only to such extent or in such amounts as are provided in advance in appropriation Acts. (c) Criminal violations; punishment Any person who willfully violates any provision of this section or section 2779 of this title, or any rule or regulation issued under either section, or who willfully, in a registration or license application or required report, makes any untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading, shall upon conviction be fined for each violation not more than $1,000,000 or imprisoned not more than ten years, or both. (d) Repealed. Pub. L. 96-70, title III, Sec. 3303(a)(4), Sept. 27, 1979, 93 Stat. 499 (e) Enforcement powers of President In carrying out functions under this section with respect to the export of defense articles and defense services, the President is authorized to exercise the same powers concerning violations and enforcement which are conferred upon departments, agencies and officials by subsections (c), (d), (e), and (g) of section 11 of the Export Administration Act of 1979 (50 App. U.S.C. 2410(c), (d), (e), and (g)), and by subsections (a) and (c) of section 12 of such Act (50 App. U.S.C. 2411(a) and (c)), subject to the same terms and conditions as are applicable to such powers under such Act (50 App. U.S.C. 2401 et seq.). Nothing in this subsection shall be construed as authorizing the withholding of information from the Congress. Notwithstanding section 11(c) of the Export Administration Act of 1979, the civil penalty for each violation involving controls imposed on the export of defense articles and defense services under this section may not exceed $500,000. (f) Periodic review of items on Munitions List The President shall periodically review the items on the United States Munitions List to determine what items, if any, no longer warrant export controls under this section. The results of such reviews shall be reported to the Speaker of the House of Representatives and to the Committee on Foreign Relations and the Committee on Banking, Housing, and Urban Affairs of the Senate. Such a report shall be submitted at least 30 days before any item is removed from the Munitions List and shall describe the nature of any controls to be imposed on that item under the Export Administration Act of 1979 (50 App. U.S.C. 2401 et seq.). (g) Identification of persons convicted or subject to indictment for violations of certain provisions (1) The President shall develop appropriate mechanisms to identify, in connection with the export licensing process under this section - (A) persons who are the subject of an indictment for, or have been convicted of, a violation under - (i) this section, (ii) section 11 of the Export Administration Act of 1979 (50 U.S.C. App. 2410), (iii) section 793, 794, or 798 of title 18 (relating to espionage involving defense or classified information), (iv) section 16 of the Trading with the Enemy Act (50 U.S.C. App. 16), (v) section 206 of the International Emergency Economic Powers Act (relating to foreign assets controls; 50 U.S.C. App. 1705) (50 U.S.C. 1705), (vi) section 30A of the Securities Exchange Act of 1934 (15 U.S.C. 78dd-1) or section 104 of the Foreign Corrupt Practices Act (15 U.S.C. 78dd-2), (vii) chapter 105 of title 18 (relating to sabotage), (viii) section 4(b) of the Internal Security Act of 1950 (relating to communication of classified information; 50 U.S.C. 783(b)), (ix) section 57, 92, 101, 104, 222, 224, 225, or 226 of the Atomic Energy Act of 1954 (42 U.S.C. 2077, 2122, 2131, 2134, 2272, 2274, 2275, and 2276), (x) section 601 of the National Security Act of 1947 (relating to intelligence identities protection; 50 U.S.C. 421), or (xi) section 603(b) or (c) of the Comprehensive Anti-Apartheid Act of 1986 (22 U.S.C. 5113(b) and (c)); (B) persons who are the subject of an indictment or have been convicted under section 371 of title 18 for conspiracy to violate any of the statutes cited in subparagraph (A); and (C) persons who are ineligible - (i) to contract with, (ii) to receive a license or other form of authorization to export from, or (iii) to receive a license or other form of authorization to import defense articles or defense services from, any agency of the United States Government. (2) The President shall require that each applicant for a license to export an item on the United States Munitions List identify in the application all consignees and freight forwarders involved in the proposed export. (3) If the President determines - (A) that an applicant for a license to export under this section is the subject of an indictment for a violation of any of the statutes cited in paragraph (1), (B) that there is reasonable cause to believe that an applicant for a license to export under this section has violated any of the statutes cited in paragraph (1), or (C) that an applicant for a license to export under this section is ineligible to contract with, or to receive a license or other form of authorization to import defense articles or defense services from, any agency of the United States Government, the President may disapprove the application. The President shall consider requests by the Secretary of the Treasury to disapprove any export license application based on these criteria. (4) A license to export an item on the United States Munitions List may not be issued to a person - (A) if that person, or any party to the export, has been convicted of violating a statute cited in paragraph (1), or (B) if that person, or any party to the export, is at the time of the license review ineligible to receive export licenses (or other forms of authorization to export) from any agency of the United States Government, except as may be determined on a case-by-case basis by the President, after consultation with the Secretary of the Treasury, after a thorough review of the circumstances surrounding the conviction or ineligibility to export and a finding by the President that appropriate steps have been taken to mitigate any law enforcement concerns. (5) A license to export an item on the United States Munitions List may not be issued to a foreign person (other than a foreign government). (6) The President may require a license (or other form of authorization) before any item on the United States Munitions List is sold or otherwise transferred to the control or possession of a foreign person or a person acting on behalf of a foreign person. (7) The President shall, in coordination with law enforcement and national security agencies, develop standards for identifying high-risk exports for regular end-use verification. These standards shall be published in the Federal Register and the initial standards shall be published not later than October 1, 1988. (8) Upon request of the Secretary of State, the Secretary of Defense and the Secretary of the Treasury shall detail to the office primarily responsible for export licensing functions under this section, on a nonreimbursable basis, personnel with appropriate expertise to assist in the initial screening of applications for export licenses under this section in order to determine the need for further review of those applications for foreign policy, national security, and law enforcement concerns. (9) For purposes of this subsection - (A) the term 'foreign corporation' means a corporation that is not incorporated in the United States; (B) the term 'foreign government' includes any agency or subdivision of a foreign government, including an official mission of a foreign government; (C) the term 'foreign person' means any person who is not a citizen or national of the United States or lawfully admitted to the United States for permanent residence under the Immigration and Nationality Act (8 U.S.C. 1101 et seq.), and includes foreign corporations, international organizations, and foreign governments; (D) the term 'party to the export' means - (i) the president, the chief executive officer, and other senior officers of the license applicant; (ii) the freight forwarders or designated exporting agent of the license application; and (iii) any consignee or end user of any item to be exported; and (E) the term 'person' means a natural person as well as a corporation, business association, partnership, society, trust, or any other entity, organization, or group, including governmental entities. (h) Judicial review of designation of items as defense articles or services The designation by the President (or by an official to whom the President's functions under subsection (a) of this section have been duly delegated), in regulations issued under this section, of items as defense articles or defense services for purposes of this section shall not be subject to judicial review. -SOURCE- (Pub. L. 90-629, ch. 3, Sec. 38, as added Pub. L. 94-329, title II, Sec. 212(a)(1), June 30, 1976, 90 Stat. 744; amended Pub. L. 95-92, Sec. 20, Aug. 4, 1977, 91 Stat. 623; Pub. L. 96-70, title III, Sec. 3303(a)(4), Sept. 27, 1979, 93 Stat. 499; Pub. L. 96-72, Sec. 22(a), Sept. 29, 1979, 93 Stat. 535; Pub. L. 96-92, Sec. 21, Oct. 29, 1979, 93 Stat. 710; Pub. L. 96-533, title I, Sec. 107(a), (c), Dec. 16, 1980, 94 Stat. 3136; Pub. L. 97-113, title I, Sec. 106, 107, Dec. 29, 1981, 95 Stat. 1522; Pub. L. 99-64, title I, Sec. 123(a), July 12, 1985, 99 Stat. 156; Pub. L. 99-83, title I, Sec. 119(a), (b), Aug. 8, 1985, 99 Stat. 203, 204; Pub. L. 100-202, Sec. 101(b) (title VIII, Sec. 8142(a)), Dec. 22, 1987, 101 Stat. 1329-43, 1329-88; Pub. L. 100-204, title XII, Sec. 1255, Dec. 22, 1987, 101 Stat. 1429; Pub. L. 101-222, Sec. 3(a), 6, Dec. 12, 1989, 103 Stat. 1896, 1899.) -REFTEXT- REFERENCES IN TEXT The Export Administration Act of 1979, referred to in subsecs. (e) and (f), is Pub. L. 96-72, Sept. 29, 1979, 93 Stat. 503, as amended, which is classified principally to section 2401 et seq. of Title 50, Appendix, War and National Defense. For complete classification of this Act to the Code, see Short Title note set out under section 2401 of Title 50, Appendix, and Tables. Section 104 of the Foreign Corrupt Practices Act (15 U.S.C. 78dd-2), referred to in subsec. (g)(1)(A)(vi), probably means section 104 of the Foreign Corrupt Practices Act of 1977, which is classified to section 78dd-2 of Title 15, Commerce and Trade. The Immigration and Nationality Act, referred to in subsec. (g)(9)(C), is act June 27, 1952, ch. 477, 66 Stat. 163, as amended, which is classified principally to chapter 12 (Sec. 1101 et seq.) of Title 8, Aliens and Nationality. For complete classification of this Act to the Code, see Short Title note set out under section 1101 of Title 8 and Tables. -MISC2- REFERENCE TO SECTION 1934 OF THIS TITLE DEEMED REFERENCE TO THIS SECTION Section 212(b)(1) of Pub. L. 94-329 provided in part that: 'Any reference to such section (section 1934 of this title) shall be deemed to be a reference to section 38 of the Arms Export Control Act (this section) and any reference to licenses issued under section 38 of the Arms Export Control Act (this section) shall be deemed to include a reference to licenses issued under section 414 of the Mutual Security Act of 1954.' AMENDMENTS 1989 - Subsec. (a)(2). Pub. L. 101-222, Sec. 3(a), inserted 'support international terrorism,' after 'arms race,'. Subsec. (h). Pub. L. 101-222, Sec. 6, added subsec. (h). 1987 - Subsec. (b)(1). Pub. L. 100-204, Sec. 1255(b), designated existing provisions as subpar. (A) and added subpar. (B) relating to review by Secretary of the Treasury of munitions control registrations. Pub. L. 100-202 designated existing provisions as subpar. (A) and added subpar. (B) relating to allowance of return to United States of certain military firearms, etc., under certain circumstances. Subsec. (b)(3). Pub. L. 100-204, Sec. 1255(c), added par. (3). Subsec. (g). Pub. L. 100-204, Sec. 1255(a), added subsec. (g). 1985 - Subsec. (c). Pub. L. 99-83, Sec. 119(a), inserted 'for each violation' before 'not more' and substituted '$1,000,000' for '$100,000' and 'ten' for 'two'. Subsec. (e). Pub. L. 99-83, Sec. 119(b), inserted provisions relating to civil penalty for each violation. Pub. L. 99-64 substituted '(g)' for '(f)'. 1981 - Subsec. (b)(3). Pub. L. 97-113, Sec. 106, struck out par. (3) which placed a $100,000,000 ceiling on commercial arms exports of major defense equipment to all countries other than NATO countries, Japan, Australia, and New Zealand. Subsec. (f). Pub. L. 97-113, Sec. 107, added subsec. (f). 1980 - Subsec. (a)(3). Pub. L. 96-533, Sec. 107(c), added par. (3). Subsec. (b)(3). Pub. L. 96-533, Sec. 107(a), increased the limitation in the sale of major defense equipment exports to $100,000,000 from $35,000,000. 1979 - Subsec. (b)(3). Pub. L. 96-92 increased the limitation in the sale of major defense equipment exports to $35,000,000 from $25,000,000. Subsec. (d). Pub. L. 96-70 struck out subsec. (d) which provided that this section applies to and within the Canal Zone. Subsec. (e). Pub. L. 96-72 substituted 'subsections (c), (d), (e), and (f) of section 11 of the Export Administration Act of 1979, and by subsections (a) and (c) of section 12 of such Act' for 'sections 6(c), (d), (e), and (f) and 7(a) and (c) of the Export Administration Act of 1969'. 1977 - Subsec. (b)(3). Pub. L. 95-92 inserted provisions relating to exceptions to prohibitions against issuance of licenses under this section and procedures applicable for implementation of such exceptions. EFFECTIVE DATE OF 1987 AMENDMENT Section 101(b) (title VIII, Sec. 8142(b)) of Pub. L. 100-202 provided that: '(1) Except as provided in paragraphs (2) and (3), subparagraph (B) of section 38(b)(1) of the Arms Export Control Act (subsec. (b)(1)(B) of this section), as added by subsection (a), shall take effect at the end of the ninety-day period beginning on the date of the enactment of this Act (Dec. 22, 1987). '(2)(A) Such subparagraph shall take effect on the date of the enactment of this Act (Dec. 22, 1987) with respect to any military firearms or ammunition (or components, parts, accessories and attachments for such firearms) with respect to which an import permit was issued by the Secretary of the Treasury on or after July 1, 1986, irrespective of whether such import permit was subsequently suspended, revoked, or withdrawn by the Secretary of the Treasury based on the application of section 38(b)(1) of the Arms Export Control Act (subsec. (b)(1) of this section) as in effect on the day before the date of the enactment of this Act. '(B) In the case of an import permit described in subparagraph (A) which was suspended, revoked, or withdrawn by the Secretary of the Treasury during the period beginning on July 1, 1986, and ending on the date of the enactment of this Act (Dec. 22, 1987) under the conditions described in such subparagraph, such import permit shall be reinstated and reissued immediately upon the enactment of this Act, and in any event not later than ten days after the date of the enactment of this Act. '(3) During the period preceding the revision of regulations issued under section 38(b)(1) of the Arms Export Control Act (subsec. (b)(1) of this section) to reflect the provisions of subparagraph (B) of such section, as added by subsection (a), such regulations may not be applied with respect to matters covered by paragraph (2) of this subsection so as to prohibit or otherwise restrict the importation of firearms described in that paragraph or in any other manner inconsistent with that paragraph, notwithstanding that such regulations have not yet been so revised: Provided, That this section shall not take effect if during the twenty day period beginning on the date of enactment of this section (Dec. 22, 1987) the Secretary of State, the Secretary of Defense, or the Secretary of the Treasury notifies Congress that he has an objection to the intent of this section: Provided further, That the Attorney General shall, within the period of time stated in the first proviso, submit a certification to Congress indicating whether the enactment of this section will interfere with any ongoing criminal investigation with respect to this section. If a certification of criminal investigative interference or an objection to the intent of this section is made, as herein provided, no permit shall be issued to anyone.' EFFECTIVE DATE OF 1985 AMENDMENT Section 119(c) of Pub. L. 99-83 provided that: 'This section (amending this section) shall take effect upon the date of enactment of this Act (Aug. 8, 1985) or October 1, 1985, whichever is later. The amendments made by this section apply with respect to violations occurring after the effective date of this section.' EFFECTIVE DATE OF 1979 AMENDMENTS Amendment by Pub. L. 96-72 effective upon the expiration of the Export Administration Act of 1969, which terminated on Sept. 30, 1979, or upon any prior date which the Congress by concurrent resolution or the President by proclamation designated, see section 2418 and Prior Provisions note set out under section 2413 of Title 50, Appendix, War and National Defense. Amendment by Pub. L. 96-70 effective Oct. 1, 1979, see section 3304 of Pub. L. 96-70, set out as an Effective Date note under section 3601 of this title. -TRANS- DELEGATION OF FUNCTIONS Functions of President under this section, with certain exceptions, delegated to Secretary of State, with concurrence of Secretary of Defense required for designations of items or categories of items which are considered as defense articles or services subject to export control under this section, by section 1(l)(1) of Ex. Ord. No. 11958, Jan. 18, 1977, 42 F.R. 4311, as amended, set out as a note under section 2751 of this title. Functions of President under this section relating to the control of import of defense articles and services transferred to Secretary of the Treasury, with certain requirements for considering the views of Secretary of State and for receiving concurrence of Secretary of State and Secretary of Defense for designations of items or categories of items which are considered as defense articles and services subject to import control under this section, by section 1(l)(2) of Ex. Ord. No. 11958. Functions of President which involve subsec. (e) of this section and are agreed to by Secretary of State and Secretary of Commerce delegated to Secretary of Commerce to be carried out on behalf of Secretary of State by section 1(l)(3) of Ex. Ord. No. 11958. -MISC5- LANDMINE EXPORT MORATORIUM Pub. L. 102-484, div. A, title XIII, Sec. 1365, Oct. 23, 1992, 106 Stat. 2561, provided that: '(a) Findings. - The Congress makes the following findings: '(1) Anti-personnel landmines, which are specifically designed to maim and kill people, have been used indiscriminately in dramatically increasing numbers, primarily in insurgencies in poor developing countries. Noncombatant civilians, including tens of thousands of children, have been the primary victims. '(2) Unlike other military weapons, landmines often remain implanted and undiscovered after conflict has ended, causing untold suffering to civilian populations. In Afghanistan, Cambodia, Laos, Vietnam, and Angola, tens of millions of unexploded landmines have rendered whole areas uninhabitable. In Afghanistan, an estimated hundreds of thousands of people have been maimed and killed by landmines during the 14-year civil war. In Cambodia, more than 20,000 civilians have lost limbs and another 60 are being maimed each month from landmines. '(3) Over 35 countries are known to manufacture landmines, including the United States. However, the United States is not a major exporter of landmines. During the past ten years the Department of State has approved ten licenses for the commercial export of anti-personnel landmines valued at $980,000, and during the past five years the Department of Defense has approved the sale of 13,156 anti-personnel landmines valued at $841,145. '(4) The United States signed, but has not ratified, the 1981 Convention on Prohibitions or Restrictions on the Use of Certain Conventional Weapons Which May Be Deemed To Be Excessively Injurious or To Have Indiscriminate Effects. The Convention prohibits the indiscriminate use of landmines. '(5) When it signed the Convention, the United States stated: 'We believe that the Convention represents a positive step forward in efforts to minimize injury or damage to the civilian population in time of armed conflict. Our signature of the Convention reflects the general willingness of the United States to adopt practical and reasonable provisions concerning the conduct of military operations, for the purpose of protecting noncombatants.'. '(6) The President should submit the Convention to the Senate for its advice and consent to ratification, and the President should actively negotiate under United Nations auspices or other auspices an international agreement, or a modification of the Convention, to prohibit the sale, transfer or export of anti-personnel landmines. Such an agreement or modification would be an appropriate response to the end of the Cold War and the promotion of arms control agreements to reduce the indiscriminate killing and maiming of civilians. '(7) The United States should set an example for other countries in such negotiations, by implementing a one-year moratorium on the sale, transfer or export of anti-personnel landmines. '(b) Statement of Policy. - (1) It shall be the policy of the United States to seek verifiable international agreements prohibiting the sale, transfer, or export, and further limiting the use, production, possession, and deployment of anti-personnel landmines. '(2) It is the sense of the Congress that the President should actively seek to negotiate under United Nations auspices or other auspices an international agreement, or a modification of the Convention, to prohibit the sale, transfer, or export of anti-personnel landmines. '(c) Moratorium on Transfers of Anti-Personnel Landmines Abroad. - For a period of one year beginning on the date of the enactment of this Act (Oct. 23, 1992) - '(1) no sale may be made or financed, no transfer may be made, and no license for export may be issued, under the Arms Export Control Act (22 U.S.C. 2751 et seq.), with respect to any anti-personnel landmine; and '(2) no assistance may be provided under the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.), with respect to the provision of any anti-personnel landmine. '(e)((d)) Definition. - For purposes of this section, the term 'anti-personnel landmine' means - '(1) any munition placed under, on, or near the ground or other surface area, or delivered by artillery, rocket, mortar, or similar means or dropped from an aircraft and which is designed to be detonated or exploded by the presence, proximity, or contact of a person; '(2) any device or material which is designed, constructed, or adapted to kill or injure and which functions unexpectedly when a person disturbs or approaches an apparently harmless object or performs an apparently safe act; '(3) any manually-emplaced munition or device designed to kill, injure, or damage and which is actuated by remote control or automatically after a lapse of time.' ARMS TRANSFERS RESTRAINT POLICY FOR MIDDLE EAST AND PERSIAN GULF REGION Pub. L. 102-138, title IV, Oct. 28, 1991, 105 Stat. 718, provided that: 'SEC. 401. FINDINGS. 'The Congress finds that - '(1) nations in the Middle East and Persian Gulf region, which accounted for over 40 percent of the international trade in weapons and related equipment and services during the decade of the 1980's, are the principal market for the worldwide arms trade; '(2) regional instability, large financial resources, and the desire of arms-supplying governments to gain influence in the Middle East and Persian Gulf region, contribute to a regional arms race; '(3) the continued proliferation of weapons and related equipment and services contribute further to a regional arms race in the Middle East and Persian Gulf region that is politically, economically, and militarily destabilizing; '(4) the continued proliferation of unconventional weapons, including nuclear, biological, and chemical weapons, as well as delivery systems associated with those weapons, poses an urgent threat to security and stability in the Middle East and Persian Gulf region; '(5) the continued proliferation of ballistic missile technologies and ballistic missile systems that are capable of delivering conventional, nuclear, biological, or chemical warheads undermines security and stability in the Middle East and Persian Gulf region; '(6) future security and stability in the Middle East and Persian Gulf region would be enhanced by establishing a stable military balance among regional powers by restraining and reducing both conventional and unconventional weapons; '(7) security, stability, peace, and prosperity in the Middle East and Persian Gulf region are important to the welfare of the international economy and to the national security interests of the United States; '(8) future security and stability in the Middle East and Persian Gulf region would be enhanced through the development of a multilateral arms transfer and control regime similar to those of the Nuclear Suppliers' Group, the Missile Technology Control Regime, and the Australia Chemical Weapons Suppliers Group; '(9) such a regime should be developed, implemented, and agreed to through multilateral negotiations, including under the auspices of the 5 permanent members of the United Nations Security Council; '(10) confidence-building arms control measures such as the establishment of a centralized arms trade registry at the United Nations, greater multinational transparency on the transfer of defense articles and services prior to agreement or transfer, cooperative verification measures, advanced notification of military exercises, information exchanges, on-site inspections, and creation of a Middle East and Persian Gulf Conflict Prevention Center, are important to implement an effective multilateral arms transfer and control regime; '(11) as an interim step, the United States should consider introducing, during the ongoing negotiations on confidence security-building measures at the Conference on Security and Cooperation in Europe (CSCE), a proposal regarding the international exchange of information, on an annual basis, on the sale and transfer of major military equipment, particularly to the Middle East and Persian Gulf region; and '(12) such a regime should be applied to other regions with the ultimate objective of achieving an effective global arms transfer and control regime, implemented and enforced through the United Nations Security Council, that - '(A) includes a linkage of humanitarian and developmental objectives with security objectives in Third World countries, particularly the poorest of the poor countries; and '(B) encourages countries selling military equipment and services to consider the following factors before making conventional arms sales: the security needs of the purchasing countries, the level of defense expenditures by the purchasing countries, and the level of indigenous production of the purchasing countries. 'SEC. 402. MULTILATERAL ARMS TRANSFER AND CONTROL REGIME. '(a) Implementation of the Regime. - '(1) Continuing negotiations. - The President shall continue negotiations among the 5 permanent members of the United Nations Security Council and commit the United States to a multilateral arms transfer and control regime for the Middle East and Persian Gulf region. '(2) Proposing a temporary moratorium during negotiations. - In the context of these negotiations, the President should propose to the 5 permanent members of the United Nations Security Council a temporary moratorium on the sale and transfer of major military equipment to nations in the Middle East and Persian Gulf region until such time as the 5 permanent members agree to a multilateral arms transfer and control regime. '(b) Purpose of the Regime. - The purpose of the multilateral arms transfer and control regime should be - '(1) to slow and limit the proliferation of conventional weapons in the Middle East and Persian Gulf region with the aim of preventing destabilizing transfers by - '(A) controlling the transfer of conventional major military equipment; '(B) achieving transparency among arms suppliers nations through advanced notification of agreement to, or transfer of, conventional major military equipment; and '(C) developing and adopting common and comprehensive control guidelines on the sale and transfer of conventional major military equipment to the region; '(2) to halt the proliferation of unconventional weapons, including nuclear, biological, and chemical weapons, as well as delivery systems associated with those weapons and the technologies necessary to produce or assemble such weapons; '(3) to limit and halt the proliferation of ballistic missile technologies and ballistic missile systems that are capable of delivering conventional, nuclear, biological, or chemical warheads; '(4) to maintain the military balance in the Middle East and Persian Gulf region through reductions of conventional weapons and the elimination of unconventional weapons; and '(5) to promote regional arms control in the Middle East and Persian Gulf region. '(c) Achieving the Purposes of the Regime. - '(1) Controlling proliferation of conventional weapons. - In order to achieve the purposes described in subsection (b)(1), the United States should pursue the development of a multilateral arms transfer and control regime which includes - '(A) greater information-sharing practices among supplier nations regarding potential arms sales to all nations of the Middle East and Persian Gulf region; '(B) applying, for the control of conventional major military equipment, procedures already developed by the International Atomic Energy Agency, the Multilateral Coordinating Committee on Export Controls (COCOM), and the Missile Technology Control Regime (MTCR); and '(C) other strict controls on the proliferation of conventional major military equipment to the Middle East and Persian Gulf region. '(2) Halting proliferation of unconventional weapons. - In order to achieve the purposes described in subsections (b)(2) and (3), the United States should build on existing and future agreements among supplier nations by pursuing the development of a multilateral arms transfer and control regime which includes - '(A) limitations and controls contained in the Enhanced Proliferation Control Initiative; '(B) limitations and conposes of the multilateral arms transfer and control regime as described in section 402(b); '(4) describing any agreements establishing such a regime; and '(5) identifying supplier nations that have refused to participate in such a regime or that have engaged in conduct that violates or undermines such a regime. '(c) Annual Reports on Transfers and Regional Military Balance. - Beginning July 15, 1992, and every 12 months thereafter, the President shall submit to the relevant congressional committees a report - '(1) documenting all transfers of conventional and unconventional arms by any nation to the Middle East and Persian Gulf region over the previous calendar year, including sources, types, and recipient nations of weapons; '(2) analyzing the current military balance in the region, including the effect on the balance of transfer documented under paragraph (1); '(3) describing the progress in implementing the purposes of the multilateral arms transfer and control regime as described in section 402(b); and '(4) identifying supplier nations that have refused to participate in such a regime or that have engaged in conduct that violates or undermines such a regime. 'SEC. 405. RELEVANT CONGRESSIONAL COMMITTEES DEFINED. 'As used in this title, the term 'relevant congressional committees' means the Committee on Foreign Affairs of the House of Representatives and the Committee on Foreign Relations of the Senate.' Memorandum of President of the United States, Dec. 27, 1991, 56 F.R. 1069, delegated to Secretary of State, in consultation with heads of other executive agencies and departments, certification and reporting obligations of the President under sections 403 and 404 of the Foreign Relations Authorization Act, Fiscal Years 1992 and 1993, Public Law 102-138, set out above. CONTINUATION OF EXPORT CONTROL REGULATIONS Section 3 of Ex. Ord. No. 12730, Sept. 30, 1990, 55 F.R. 40373, set out as a note under section 1701 of Title 50, War and National Defense, provided that: 'Provisions for administration of section 38(e) of the Arms Export Control Act (22 U.S.C. 2778(e)) may be made and shall continue in full force and effect until amended or revoked under the authority of section 203 of the Act (50 U.S.C. 1702). To the extent permitted by law, this order also shall constitute authority for the issuance and continuation in full force and effect of all rules and regulations by the President or his delegate, and all orders, licenses, and other forms of administrative action issued, taken, or continued in effect pursuant thereto, relating to the administration of section 38(e).' Section 3 of Ex. Ord. No. 12525, July 12, 1985, 50 F.R. 28757, set out as a note under section 1701 of Title 50, provided that: 'All rules, regulations, orders, licenses, and other forms of administrative action issued, taken or continued in effect pursuant to the authority of the IEEPA and Executive Order No. 12470 (formerly set out as a note under section 1701 of Title 50) relating to the administration of Section 38(e) of the Arms Export Control Act (22 U.S.C. 2778(e)) shall remain in full force and effect until amended or revoked under proper authority.' (Section 3 of Ex. Ord. No. 12470, Mar. 30, 1984, 49 F.R. 13099, formerly set out as a note under section 1701 of Title 50, provided that: 'Provisions for the administration of section 38(e) of the Arms Export Control Act (22 U.S.C. 2778(e)) may be made and shall continue in full force and effect until amended or revoked under the authority of section 203 of the Act (50 U.S.C. 1702). To the extent permitted by law, this Order also shall constitute authority for the issuance and continuation in full force and effect of all rules and regulations by the President or his delegate, and all orders, licenses, and other forms of administrative action issued, taken or continued in effect pursuant thereto, relating to the administration of section 38(e).' The national emergency declared by Ex. Ord. No. 12470, was continued in effect beyond Mar. 31, 1985, by Notice of the President, dated Mar. 28, 1985, set out as a note under section 1701 of Title 50. Ex. Ord. No. 12470 was revoked by Ex. Ord. No. 12525, July 12, 1985, 50 F.R. 28757, set out as a note under section 1701 of Title 50.) Section 3 of Ex. Ord. No. 12451, Dec. 20, 1983, 48 F.R. 56563, set out as a note under section 1701 of Title 50, provided that: 'All orders, licenses and other forms of administrative action issued, taken or continued in effect pursuant to the authority of the IEEPA and Executive Order No. 12444 (formerly set out as a note under section 1701 of Title 50) relating to the administration of section 38(e) of the Arms Export Control Act (22 U.S.C. 2778(e)) shall remain in full force and effect until amended or revoked under proper authority.' (Section 3 of Ex. Ord. No. 12444, Oct. 14, 1983, 48 F.R. 48215, formerly set out as a note under section 1701 of Title 50, provided that: 'Provisions for the administration of section 38(e) of the Arms Export Control Act (22 U.S.C. 2778(e)) may be made and shall continue in full force and effect until amended or revoked under the authority of section 203 of the Act (50 U.S.C. 1702). To the extent permitted by law, this Order also shall constitute authority for the issuance and continuation in full force and effect of rules and regulations by the President or his delegate, and all orders, licenses, and other forms of administrative action issued, taken or continued in effect pursuant thereto, relating to the administration of section 38(e).' Ex. Ord. No. 12444 was revoked by Ex. Ord. No. 12451, Dec. 20, 1983, 48 F.R. 56563, set out as a note under section 1701 of Title 50, which further directed that administrative actions taken under such provisions remain in full force and effect until amended or revoked under proper authority.) -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 2304, 2373, 2751, 2753, 2767, 2770, 2776, 2779, 2780, 2791, 2794, 2797a of this title; title 10 section 2208; title 12 section 635; title 18 sections 1956, 2516; title 26 section 5847; title 50 section 415; title 50 App. sections 2410, 2410b, 2416. -------------------------------------------------------------------------------