unless the President states in his certification that an emergency exists which requires the immediate approval of the agreement in the national security interests of the United States.

(3) If the President states in his certification that an emergency exists which requires the immediate approval of the agreement in the national security interests of the United States, thus waiving the requirements of paragraph (4), he shall set forth in the certification a detailed justification for his determination, including a description of the emergency circumstances which necessitate the immediate approval of the agreement and a discussion of the national security interests involved.

(4) Approval for an agreement subject to paragraph (1) may not be given under section 38 if the Congress, within the 15-day or 30day period specified in paragraph (2)(A) or (B), as the case may be, enacts a joint resolution prohibiting such approval.

(5)(A) Any joint resolution under paragraph (4) shall be considered in the Senate in accordance with the provisions of section 601(b) of the International Security Assistance and Arms Export Control Act of 1976.

(B) For the purpose of expediting the consideration and enactment of joint resolutions under paragraph (4), a motion to proceed to the consideration of any such joint resolution after it has been reported by the appropriate committee shall be treated as highly privileged in the House of Representatives.

(e) 182 The President shall cause to be published in the Federal Register, upon transmittal to the Speaker of the House of Representatives and to the chairman of the Committee on Foreign Relations of the Senate, the full unclassified text of each numbered certification submitted pursuant to subsection (b) and each notification of a proposed commercial sale submitted under subsection (c). Sec. 37.183 Fiscal Provisions Relating to Foreign Military Sales Credits. (a) Cash payments received under sections 21, 22, and 29 184 and advances received under section 23 shall be available solely for payments to suppliers (including the military departments) and refunds to purchasers and shall not be available for financing credits and guaranties.

(b) Amounts received from foreign governments and international organizations as repayments for credits extended pursuant to section 23, amounts received from the disposition of instruments evidencing indebtedness under section 24(b) (excluding such portion of the sales proceeds as may be required at the time of disposition to be obligated as a reserve for payment of claims under guaranties issued pursuant to section 24(b), which sums are made available for such obligations),185 and other collections (including fees and interest) shall be transferred to the miscellaneous receipts of the Treasury.

182 Sec. 155 of Public Law 104-164 (110 Stat. 1440) added subsec. (e). To fulfill the requirements of sec. 36(e) of this Act in 1997, the Defense Security Assistance Agency of the Department of Defense filed some 52 notifications; see Federal Register, annual index.

183 22 U.S.C. 2777.

184 The reference to sec. 29 was added by sec. 105(e)(1) of the International Security and Development Cooperation Act of 1980 (Public Law 96-533; 94 Stat. 3135).

185 The words to this point beginning with "under section 24(b) (excluding" were added by sec. 25(11) of the FA Act of 1973.

(c) 186 Notwithstanding the provisions of subsection (b), to the extent that any of the funds constituting the reserve under section 24(c) are paid out for a claim arising out of a loan guaranteed under section 24, amounts received from a foreign government or international organization after the date of such payment, with respect to such claim, shall be credited to such reserve, shall be merged with the funds in such reserve, and shall be available for any purpose for which funds in such reserve are available.

Šec. 38.187 Control of Arms Exports and Imports.-(a)(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 pro

186 Subsec. (c) was added by sec. 104(b) of the International Security and Development Cooperation Act of 1980 (Public Law 96-533; 94 Stat. 3133).

187 22 U.S.C. 2778.

Sec. 38 was added by sec. 212(a)(1) of the International Security Assistance and Arms Export Control Act of 1976 (Public Law 94-329; 90 Stat. 744). Sec. 212(b) of the same Act repealed sec. 414 of the Mutual Security Act of 1954 and stated that any reference to sec. 414 would be considered as a reference to sec. 38 of the Arms Export Control Act.

See also title IV, secs. 401-405, of the Foreign Relations Authorization Act, Fiscal Years 1992 and 1993 (Public Law 102-138; 105 Stat. 718-722), relating to arms transfers restraint policy for the Middle East and Persian Gulf region.

See also in the National Defense Authorization Act for Fiscal Year 1993 (Public Law 102484; 106 Stat. 2561): sec. 1365, relating to landmine export moratorium; title XV-Weapons of Mass Destruction Control Act of 1992; and title XVI-Iran-Iraq Arms Non-Proliferation Act of 1992. As a result of sec. 1365 of that Act, the Department of State gave notice to the following: "Notice is hereby given that all licenses, approvals, sales or transfers of landmines specifically designed for antipersonnel use, regardless of method of delivery, are suspended until further notice. Additionally, all existing authorizations for the sale, export, or transfer of such defense articles are revoked until further notice. This action has been taken pursuant to sections 2, 38 and 42 of the Arms Export Control Act, and section 1365 of the National Defense Authorization Act for Fiscal Year 1993." (Public Notice 1727 of November 25, 1992; 57 F.R. 55614).

Licenses and approvals to export or otherwise transfer defense articles and defense services to the following countries or foreign entities are suspended or restricted:

Iran (January 23, 1984; Department of State Notice 84-3; 49 F.R. 2836); Iraq (August 2, 1990; Department of State Public Notice 1238; 55 F.R. 31808); Serbia and Montenegro (Federal Republic of Yugoslavia) (effective July 11, 1991; Department of State Public Notice 1427; 56 F.R. 33322; July 19, 1991); Haiti-including those for use by the police (effective October 3, 1991; Department of State Public Notice 1496; 56 F.R. 50968; October 9, 1991); Sudan (effective October 8, 1992; Department of State Public Notice 1711; 57 F.R. 49741; November 3, 1992); Yemen (effective November 16, 1992; Department of State Public Notice 1734; 57 F.R. 59852; December 16, 1992); the armed forces on Cyprus (except to the United Nations Forces in Cyprus) (effective November 18, 1992; Department of State Public Notice 1738; 57 F.R. 60265; December 18, 1992); Somalia (effective December 16, 1992; Department of State Public Notice 1736; 57 F.R. 59851; December 16, 1992); Liberia (other than for the peacekeeping forces of ECOWAS) (effective December 18, 1992; Department of State Public Notice 1737; 57 F.R. 60265; December 18, 1992); Zaire (Department of State Public Notice 1795; 58 FR. 26024; April 29, 1993); Burma (Department of State Public Notice 1820; 58 F.R. 33293; June 16, 1993); Guatemala (Department of State Public Notice 1831; 58 F.R. 38597; July 19, 1993); Nigeria (Department of State Public Notice 1844; 58 F.R. 40845; July 30, 1993; and Public Notice 2313; 60 F.R. 66334; December 11, 1995).

Peru and Ecuador are restricted on a case-by-case basis (Peru: Department of State Public Notice 2021; 59 F.R. 32481; June 8, 1994; and Public Notice 2168; 60 F.R. 10138; February 23, 1995; Peru and Ecuador: Department of State Public Notice 2205; 60 F.R. 26070; May 4, 1995; and Public Notice 2286; 60 F.R. 57049; November 13, 1995).

Effective July 2, 1993, the domestic arms embargo on Angola was lifted and section 126.1(a) of the International Traffic in Arms Regulations (ITAR) (22 CFR Part 126) was amended accordingly (Department of State Public Notice 1826; 58 F.R. 35864; July 2, 1993). There continues to be a presumption of denial for lethal articles, and an embargo is in place with respect to UNITA (Executive Order 12865, September 29, 1993). See Legislation on Foreign Relations Through 1997, vol. III.

The following countries are embargoed under International Traffic in Arms Regulations (ITAR; 22 CFR Part 126): Afghanistan (June 27, 1996; 61 F.R. 33313); Armenia, Azerbaijan, Byelarus, Cuba, Iran, Iraq, Libya, North Korea, Syria, Tajikistan, and Vietnam (April 4, 1994; 59 F.R. 15625). For some of these countries, other restrictions may also make arms transfers unavailable. Restrictions under the ITAR also apply to countries with respect to which the United States maintains an arms embargo: Burma, People's Republic of China, Federal Republic of Yugoslavia (Serbia and Montenegro), Haiti, Liberia, Rwanda, Somalia, Sudan, and Zaire.

Mongolia was removed from the ITAR restrictive list, effective June 30, 1997, in State Department Public Notice 2567 (62 F.R. 37133).

vide 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) 188 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, taking into account the Director's assessment as to whether the export of an article would contribute to an arms race, aid in the development of weapons of mass destruction, support international terrorism, increase the possibility of outbreak or escalation of conflict, or prejudice the development of bilateral or multilateral arms control or nonproliferation agreements or other arrangements. The Director of the Arms Control and Disarmament Agency is authorized, whenever the Director determines that the issuance of an export license under this section would be detrimental to the national security of the United States, to recommend to the President that such export license be disapproved.

(3) 189 In exercising the authorities conferred by this section, the President may require that any defense article or defense service be sold under this Act 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)(1)(A)(i) 190 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) 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 for local law enforcement agency) of any military firearms or ammunition of United States manufacture furnished to foreign governments by the United States under this Act 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 prohibi

188 Sec. 714(a)(1) of the Foreign Relations Authorization Act, Fiscal Years 1994 and 1995 (Public Law 103-236; 108 Stat. 497), amended and restated para. (2). The paragraph formerly read as follows:

"(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.".

189 Par. (3) was added by sec. 107(c) of the International Security and Development Cooperation Act of 1980 (Public Law 96-533, 94 Stat. 3136).

190 Sec. 151(a) of Public Law 104-164 (110 Stat. 1437) added clause designation "(i)" and added clause (ii).

tion shall not extend to similar firearms that have been so substantially transformed as to become, in effect, articles of foreign manufacture.

(ii) 191 (I) As prescribed in regulations issued under this section, every person (other than an officer or employee of the United States Government acting in official capacity) who engages in the business of brokering activities with respect to the manufacture, export, import, or transfer of any defense article or defense service designated by the President under subsection (a)(1), or in the business of brokering activities with respect to the manufacture, export, import, or transfer of any foreign defense article or defense service (as defined in subclause (IV)), 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.

(II) Such brokering activities shall include the financing, transportation, freight forwarding, or taking of any other action that facilitates the manufacture, export, or import of a defense article or defense service.

(III) No person may engage in the business of brokering activities described in subclause (I) without a license, issued in accordance with this Act, except that no license shall be required for such activities undertaken by or for an agency of the United States Gov

ernment

or

(aa) for use by an agency of the United States Government;

(bb) for carrying out any foreign assistance or sales program authorized by law and subject to the control of the President by other means.

(IV) For purposes of this clause, the term "foreign defense article or defense service" includes any non-United States defense article or defense service of a nature described on the United States Munitions List regardless of whether such article or service is of United States origin or whether such article or service contains United States origin components.

(B) 192 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.

(B) 192 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 Act or any other foreign assistance or sales program of the United States if

191 Sec. 151(a)(2) of Public Law 104-164 (110 Stat. 1437) added clause (ii). Subsec. (b) (22 U.S.C. 2778 note) of that section provided: "Section 38(b)(1)(A)(ii) of the Arms Export Control Act, as added by subsection (a), shall apply with respect to brokering activities engaged in beginning on or after 120 days after the enactment of this Act.".

192 The first subparagraph (B) was added by sec. 1255(b) of the Foreign Relations Authorization Act, Fiscal Years 1988 and 1989 (Public Law 100-204; 101 Stat. 1431). The second subparagraph (B), which should probably have been designated subpar. (C) was added by sec. 8142(a) of the Department of Defense Appropriations Act, 1988 (sec. 101(b) of the Continuing Appropriations for 1988, Public Law 100-202; 101 Stat. 1329-88).

(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, United States Code (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.

(2) Except as otherwise specifically provided in regulations issued under subsection (a)(1), no defense articles or defense services designated by the President under subsection (a)(1) may be exported or imported without a license for such export or import, issued in accordance with this Act and regulations issued under this Act, 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) 193 (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) Any person who willfully violates any provision of this section or section 39, 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 $1,000,000,194 or imprisoned not more than ten years, or both.

193 Par. (3) was added by sec. 1255(c) of the Foreign Relations Authorization Act, Fiscal Years 1988 and 1989 (Public Law 100-204; 101 Stat. 1431). The original par. (3), as amended by sec. 21 of Public Law 96-92 (93 Stat. 710) and sec. 107(a) of Public Law 96-533 (94 Stat. 3136), was repealed by sec. 106 of the International Security and Development Cooperation Act of 1981 (Public Law 97-113; 95 Stat. 1522). Par. (3) had stipulated that no license could be issued under this Act for the export of any major defense equipment sold under contract in the amount of $100,000,000 or more (exceptions were provided for NATO members, Australia, Japan, New Zealand, countries participating in co-production arrangements).

194 Sec. 119(a) of the International Security and Development Cooperation Act of 1985 (Public Law 99-83; 99 Stat. 203) raised the amount of the fine to $1,000,000; added the limitation "for each violation"; and raised the period of imprisonment from two to ten years. Previously the fine was "not more than $100,000".