#aacth ,,congress #b;d ,session ,h4 ,r4 #cdgj ,,an ,,act ,to affirm the importance of the ,taiwan ,relations ,act1 to provide for the transfer of naval vessels to certain foreign countries1 and for other purposes4 #a4 ,short title and table of contents 7a7 ,short title ,this ,act may be cited as the ,taiwan ,relations ,act ,affirmation and ,naval ,vessel ,transfer ,act of #bjad4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title and table of contents4 ,title ,i--,affirmation of importance of ,taiwan ,relations ,act and transfer of naval vessels to ,taiwan ,sec4 #aja4 ,statement of policy relating to ,taiwan ,relations ,act4 ,sec4 #ajb4 ,transfer of naval vessels to ,taiwan4 ,title ,,ii--,transfer of naval vessels to certain other foreign recipients ,sec4 #bja4 ,findings4 ,sec4 #bjb4 ,transfer of naval vessels to certain other foreign recipients4 ,title ,,iii--,arms ,export ,control ,act amendments ,sec4 #cja4 ,increase in congressional notification thresholds4 ,sec4 #cjb4 ,licensing of certain commerce-controlled items4 ,sec4 #cjc4 ,amendments relating to removal of major defense equipment from ,united ,states ,munitions ,list4 ,sec4 #cjd4 ,amendment to definition of security assistance under the ,foreign ,assistance ,act of #aifa4 ,sec4 #cje4 ,amendments to definitions of defense article and defense service under the ,arms ,export ,control ,act4 ,sec4 #cjf4 ,technical amendments4 ,title ,,iv--,application of certain provisions of ,export ,administration ,sec4 #dja4 ,application of certain provisions of ,export ,administration ,act of #aigi4 ,i ,affirmation of importance of ,taiwan ,relations ,act and transfer of naval vessels to ,taiwan #aja4 ,statement of policy relating to ,taiwan ,relations ,act 7a7 ,findings ,congress finds the following3 7#a7 ,the ,taiwan ,relations ,act has been instrumental in maintaining peace1 security1 and stability in the ,western ,pacific since its enactment in #aigi1 and it is in the political1 security1 and economic interests of the ,united ,states4 7#b7 ,the ,taiwan ,relations ,act affirmed that the ,united ,states' decision to establish a diplomatic relationship with the ,people's ,republic of ,china was based on the expectation that the future of ,taiwan would be determined by peaceful means4 7#c7 ,the ,taiwan ,relations ,act also states that it is the policy of the ,united ,states to provide ,taiwan with arms of a defensive character and to maintain the capacity of the ,united ,states to resist any resort to force or other forms of coercion that would jeopardize the security1 or the social or economic system1 of the people on ,taiwan4 7#d7 ,the ,taiwan ,relations ,act also states that it is the policy of the ,united ,states to preserve and promote extensive1 close1 and friendly commercial1 cultural1 and other relations between the people of the ,united ,states and the people on ,taiwan1 as well as the people on the ,china mainland and all other peoples of the ,western ,pacific area4 7#e7 ,the relationship between the ,united ,states and ,taiwan has been strengthened with-- 7,a7 ,taiwan's evolution into a free society and a full-fledged1 multi-party democracy2 7,b7 the development of ,taiwan's robust market economy2 7,c7 ,taiwan's collaboration with the ,united ,states to combat terrorism1 as demonstrated in part by its participation in the ,container ,security ,initiative2 and 7,d7 the role ,taiwan has played in addressing transnational and global challenges1 including its active engagement in humanitarian relief measures1 public health endeavors1 environmental protection initiatives1 and financial market stabilization efforts4 7#f7 ,the ,united ,states is the third largest trading partner and the largest investor in ,taiwan1 while ,taiwan is the twelfth largest trading partner of the ,united ,states and the eighth largest ,united ,states agricultural market4 7#g7 ,taiwan's democracy has deepened with the second peaceful transfer of power from one political party to another after the presidential election in ,march #bjjh4 7#h7 ,the ,united ,states and ,taiwan are united in our shared values in free elections1 personal liberty1 and free enterprise4 7b7 ,statement of policy ,congress-- 7#a7 reaffirms its unwavering commitment to the ,taiwan ,relations ,act as the cornerstone of relations between the ,united ,states and ,taiwan2 7#b7 reaffirms its support for ,taiwan's democratic institutions2 7#c7 reaffirms that peace in the ,taiwan ,strait should be maintained to the benefit of the ,asia-,pacific region2 7#d7 supports the ,united ,states commitment to ,taiwan's security in accord with the ,taiwan ,relations ,act1 including ,taiwan's procurement of sophisticated weapons of a defensive character1 such as ,f-#af ,c_/,ds aircraft and diesel electric submarines2 7#e7 reaffirms its commitment to deepen ,united ,states-,taiwan trade and investment relations as well as support for ,taiwan's inclusion in bilateral and regional trade agreements at the appropriate time and under the right conditions in which outstanding issues affecting ,united ,states exports are being addressed2 and 7#f7 supports the strong and deepening relationship between the ,united ,states and ,taiwan4 #ajb4 ,transfer of naval vessels to ,taiwan 7a7 ,transfer by sale ,the ,president is authorized to transfer the ,,oliver ,,hazard ,,perry class guided missile frigates ,,uss ,,taylor 7,,ffg-#ej71 ,,uss ,,gary 7,,ffg-#ea71 ,,uss ,,carr 7,,ffg-#eb71 and ,,uss ,,elrod 7,,ffg-#ee7 to the ,taipei ,economic and ,cultural ,representative ,office of the ,united ,states 7which is the ,taiwan instrumentality designated pursuant to section #aj7;a7 of the ,taiwan ,relations ,act 7#bb ,u4,s4,c4 #ccji7;a777 on a sale basis under section #ba of the ,arms ,export ,control ,act 7#bb ,u4,s4,c4 #bgfa74 7b7 ,costs of transfers ,any expense incurred by the ,united ,states in connection with a transfer authorized by this section shall be charged to the recipient notwithstanding section #eaf7;e7 of the ,foreign ,assistance ,act of #aifa 7#bb ,u4,s4,c4 #bcba;j7e774 7c7 ,repair and refurbishment in united states shipyards ,to the maximum extent practicable1 the ,president shall require1 as a condition of the transfer of a vessel under this section1 that the recipient to which the vessel is transferred have such repair or refurbishment of the vessel as is needed1 before the vessel joins the naval forces of that recipient1 performed at a shipyard located in the ,united ,states1 including a ,united ,states ,navy shipyard4 7d7 ,expiration of authority ,the authority to transfer a vessel under this section shall expire at the end of the #c-year period beginning on the date of the enactment of this section4 ,,ii ,transfer of naval vessels to certain other foreign recipients #bja4 ,findings 7a7 ,relating to ,mexico ,congress finds the following3 7#a7 ,the partnership between the ,united ,states and ,mexico helps the economic and national security of both countries1 including in the area of energy4 7#b7 ,the ,united ,states and ,mexico share a common goal of reducing the flow of narcotics and the influence of transnational gangs in the ,hemisphere4 7#c7 ,the partnership between the ,united ,states and ,mexico helps the economic competitiveness and national security of both countries4 7#d7 ,the economies of the ,united ,states and ,mexico are increasingly interdependent1 with bilateral foreign direct investment increasing more than six-fold over the past two decades4 7#e7 ,in #bjab alone1 bilateral trade in goods and services between the ,united ,states and ,mexico exceeded #ejj1jjj1jjj1jjj4 7#f7 ,the transfer of naval vessels to ,mexico authorized under section #bjb supports the modernization efforts of the ,mexican ,navy4 7#g7 ,such naval vessels are suitable to support ,mexico's offshore maritime surveillance1 counter trafficking1 interdiction1 and oil platform security4 7#h7 ,the transfer of such naval vessels will contribute to ,united ,states interests in promoting increased maritime awareness to support security and protection of the people of the ,united ,states and the people of ,mexico4 7b7 ,relating to ,thailand ,congress finds the following3 7#a7 ,thailand was the first treaty ally of the ,united ,states in the ,asia-,pacific region and remains a steadfast friend of the ,united ,states4 7#b7 ,in ,december #bjjc1 the ,united ,states designated ,thailand as a major non-,,nato ally1 which improved the security of both countries1 particularly by facilitating joint counterterrorism efforts4 7#c7 ,for more than #cj years1 ,thailand has been the host country of ,cobra ,gold1 the ,united ,states ,pacific ,command's annual multinational military training exercise1 which is designed to ensure regional peace and promote regional security cooperation4 7#d7 ,the ,royal ,thai ,navy has commanded ,combined ,task ,force #aea 7,,ctf #aea7 of the ,combined ,maritime ,forces1 a multi-national naval partnership consisting of #cj nations operating in and around the ,gulf of ,aden and off the eastern coast of ,somalia4 7#e7 ,with the assistance of the ,royal ,thai ,navy's ,counter ,piracy ,task ,group1 ,,ctf #aea is helping to expressly disrupt and suppress piracy1 protect all vessels in the region and secure their free navigation4 7#f7 ,the ,royal ,thai ,navy is also participating in the multilateral ,malacca ,straits patrols with other regional partners to promote maritime safety and security4 7#g7 ,the transfer of naval vessels to ,thailand authorized under section #bjb will support enhanced interoperability between the ,royal ,thai ,navy and ,united ,states ,navy forces4 7#h7 ,the transfer of such naval vessels underscores the ,united ,states commitment to ,united ,states-,thai relations and to peace and security in the ,asia-,pacific region4 #bjb4 ,transfer of naval vessels to certain other foreign recipients 7a7 ,transfers by grant ,the ,president is authorized to transfer vessels to foreign countries on a grant basis under section #eaf of the ,foreign ,assistance ,act of #aifa 7#bb ,u4,s4,c4 #bcba;j71 as follows3 7#a7 ,mexico ,to the ,government of ,mexico1 the ,,oliver ,,hazard ,,perry class guided missile frigates ,,uss ,,curts 7,,ffg-#ch7 and ,,uss ,,mcclusky 7,,ffg-#da74 7#b7 ,thailand ,to the ,government of ,thailand1 the ,,oliver ,,hazard ,,perry class guided missile frigates ,,uss ,,rentz 7,,ffg-#df7 and ,,uss ,,vandegrift 7,,ffg-#dh74 7b7 ,alternative transfer authority ,notwithstanding the authority provided in subsection 7a7 to transfer specific vessels to specific countries1 the ,president is authorized1 subject to the same conditions that would apply for such country under this section1 to transfer any vessel named in this section to any country named in this section such that the total number of vessels transferred to such country does not exceed the total number of vessels authorized for transfer to such country by this section4 7c7 ,grants not counted in annual total of transferred excess defense articles ,the value of a vessel transferred to another country on a grant basis pursuant to authority provided by subsection 7a7 or 7b7 shall not be counted against the aggregate value of excess defense articles transferred in any fiscal year under section #eaf of the ,foreign ,assistance ,act of #aifa 7#bb ,u4,s4,c4 #bcba;j74 7d7 ,costs of transfers ,any expense incurred by the ,united ,states in connection with a transfer authorized by this section shall be charged to the recipient notwithstanding section #eaf7;e7 of the ,foreign ,assistance ,act of #aifa 7#bb ,u4,s4,c4 #bcba;j7e774 7e7 ,repair and refurbishment in united states shipyards ,to the maximum extent practicable1 the ,president shall require1 as a condition of the transfer of a vessel under this section1 that the recipient to which the vessel is transferred have such repair or refurbishment of the vessel as is needed1 before the vessel joins the naval forces of that recipient1 performed at a shipyard located in the ,united ,states1 including a ,united ,states ,navy shipyard4 7f7 ,expiration of authority ,the authority to transfer a vessel under this section shall expire at the end of the #c-year period beginning on the date of the enactment of this ,act4 ,,iii ,arms ,export ,control ,act amendments #cja4 ,increase in congressional notification thresholds 7a7 ,foreign military sales 7#a7 ,in general ,section #cf7;b7 of the ,arms ,export ,control ,act 7#bb ,u4,s4,c4 #bggf7;b77 is amended-- 7,a7 in paragraph 7#a7-- 7i7 in the matter preceding subparagraph 7,a7-- 7,i7 by striking #ej1jjj1jjj and inserting #ajj1jjj1jjj2 7,,ii7 by striking #bjj1jjj1jjj and inserting #cjj1jjj1jjj2 and 7,,iii7 by striking #ad1jjj1jjj and inserting #be1jjj1jjj2 and 7ii7 in the matter following subparagraph 7,p7-- 7,i7 by inserting of any defense articles or defense services under this ,act for #bjj1jjj1jjj or more1 any design and construction services for #cjj1jjj1jjj or more1 or any major defense equipment for #ge1jjj1jjj or more1 after ,the letter of offer shall not be issued1 with respect to a proposed sale2 and 7,,ii7 by inserting of any defense articles or services under this ,act for #ajj1jjj1jjj or more1 any design and construction services for #bjj1jjj1jjj or more1 or any major defense equipment for #ej1jjj1jjj or more1 after or with respect to a proposed sale2 and 7,b7 in paragraph 7#f7-- 7i7 in subparagraph 7,a71 by striking #be1jjj1jjj and inserting #ge1jjj1jjj2 and 7ii7 in subparagraph 7,b71 by striking #ajj1jjj1jjj and inserting #bjj1jjj1jjj4 7b7 ,commercial sales ,section #cf7;c7 of the ,arms ,export ,control ,act 7#bb ,u4,s4,c4 #bggf7;c77 is amended-- 7#a7 in paragraph 7#a7-- 7,a7 by striking #ad1jjj1jjj and inserting #be1jjj1jjj2 and 7,b7 by striking #ej1jjj1jjj and inserting #ajj1jjj1jjj2 and 7#b7 in paragraph 7#e7-- 7,a7 in subparagraph 7,a71 by striking #be1jjj1jjj and inserting #ge1jjj1jjj2 and 7,b7 in subparagraph 7,b71 by striking #ajj1jjj1jjj and inserting #bjj1jjj1jjj4 #cjb4 ,licensing of certain commerce-controlled items ,section #ch of the ,arms ,export ,control ,act 7#bb ,u4,s4,c4 #bggh7 is amended by adding at the end the following new subsection3 7k7 ,licensing of certain commerce-,controlled items 7#a7 ,in general ,a license or other approval from the ,department of ,state granted in accordance with this section may also authorize the export of items subject to the ,export ,administration ,regulations if such items are to be used in or with defense articles controlled on the ,united ,states ,munitions ,list4 7#b7 ,other requirements ,the following requirements shall apply with respect to a license or other approval to authorize the export of items subject to the ,export ,administration ,regulations under paragraph 7#a73 7,a7 ,separate approval from the ,department of ,commerce shall not be required for such items if such items are approved for export under a ,department of ,state license or other approval4 7,b7 ,such items subject to the ,export ,administration ,regulations that are exported pursuant to a ,department of ,state license or other approval would remain under the jurisdiction of the ,department of ,commerce with respect to any subsequent transactions4 7,c7 ,the inclusion of the term subject to the ,,ear or any similar term on a ,department of ,state license or approval shall not affect the jurisdiction with respect to such items4 7#c7 ,definition ,in this subsection1 the term ,export ,administration ,regulations means-- 7,a7 the ,export ,administration ,regulations as maintained and amended under the authority of the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agja et seq472 or 7,b7 any successor regulations4 4 #cjc4 ,amendments relating to removal of major defense equipment from ,united ,states ,munitions ,list 7a7 ,requirements for removal of major defense equipment from united states munitions list ,section #ch7;f7 of the ,arms ,export ,control ,act 7#bb ,u4,s4,c4 #bggh7;f77 is amended by adding at the end the following3 7#e7 7,a7 ,except as provided in subparagraph 7,b71 the ,president shall take such actions as may be necessary to require that1 at the time of export or reexport of any major defense equipment listed on the #fjj series of the ,commerce ,control ,list contained in ,supplement ,no4 #a to part #ggd of subtitle ,b of title #ae1 ,code of ,federal ,regulations1 the major defense equipment will not be subsequently modified so as to transform such major defense equipment into a defense article4 7,b7 ,the ,president may authorize the transformation of any major defense equipment described in subparagraph 7,a7 into a defense article if the ,president-- 7i7 determines that such transformation is appropriate and in the national interests of the ,united ,states2 and 7ii7 provides notice of such transformation to the chairman of the ,committee on ,foreign ,affairs of the ,house of ,representatives and the chairman of the ,committee on ,foreign ,relations of the ,senate consistent with the notification requirements of section #cf7;b77#e77;,a7 of this ,act4 7,c7 ,in this paragraph1 the term defense article means an item designated by the ,president pursuant to subsection 7a77#a74 4 7b7 ,notification and reporting requirements for major defense equipment removed from united states munitions list ,section #ch7;f7 of the ,arms ,export ,control ,act 7#bb ,u4,s4,c4 #bggh7;f771 as amended by this section1 is further amended by adding at the end the following3 7#f7 ,the ,president shall ensure that any major defense equipment that is listed on the #fjj series of the ,commerce ,control ,list contained in ,supplement ,no4 #a to part #ggd of subtitle ,b of title #ae1 ,code of ,federal ,regulations1 shall continue to be subject to the notification and reporting requirements of the following provisions of law3 7,a7 ,section #eaf7;f7 of the ,foreign ,assistance ,act of #aifa 7#bb ,u4,s4,c4 #bcba;j7f774 7,b7 ,section #fee of the ,foreign ,assistance ,act of #aifa 7#bb ,u4,s4,c4 #bdae74 7,c7 ,section #c7;d77#c77;,a7 of this ,act4 7,d7 ,section #be of this ,act4 7,e7 ,section #cf7;b71 7c71 and 7d7 of this ,act4 4 #cjd4 ,amendment to definition of security assistance under the ,foreign ,assistance ,act of #aifa ,section #ejb;,b7d7 of the ,foreign ,assistance ,act of #aifa 7#bb ,u4,s4,c4 #bcjd7;d77 is amended-- 7#a7 in paragraph 7#a71 by striking and at the end2 and 7#b7 in paragraph 7#b77;,c7 to read as follows3 7,c7 any license in effect with respect to the export to or for the armed forces1 police1 intelligence1 or other internal security forces of a foreign country of-- 7i7 defense articles or defense services under section #ch of the ,armed ,export ,control ,act2 or 7ii7 items listed under the #fjj series of the ,commerce ,control ,list contained in ,supplement ,no4 #a to part #ggd of subtitle ,b of title #ae1 ,code of ,federal ,regulations2 4 #cje4 ,amendments to definitions of defense article and defense service under the ,arms ,export ,control ,act ,section #dg of the ,arms ,export ,control ,act 7#bb ,u4,s4,c4 #bgid7 is amended-- 7#a7 in the matter preceding subparagraph 7,a7 of paragraph 7#c71 by striking includes and inserting means1 with respect to a sale or transfer by the ,united ,states under the authority of this ,act or any other foreign assistance or sales program of the ,united ,states2 and 7#b7 in paragraph 7#d71 by striking includes and inserting means1 with respect to a sale or transfer by the ,united ,states under the authority of this ,act or any other foreign assistance or sales program of the ,united ,states14 #cjf4 ,technical amendments 7a7 ,in general ,the ,arms ,export ,control ,act 7#bb ,u4,s4,c4 #bgea et seq47 is amended-- 7#a7 in sections #c7;a71 #c7;d77#a71 #c7;d77#c77;,a71 #c7;e71 #e7;c71 #f1 #ba7;g71 #cf7;a71 #cf7;b77#a71 #cf7;b77#e77;,c71 #cf7;c77#a71 #cf7;f71 #ch7;f77#a71 #dj7;f77#a71 #dj7;g77#b77;,b71 #aja7;b71 and #ajb7;a77#b71 by striking the ,speaker of the ,house of ,representatives and each place it appears and inserting the ,speaker of the ,house of ,representatives1 the ,committee on ,foreign ,affairs of the ,house of ,representatives1 and2 7#b7 in section #ba7;i77#a7 by inserting after the ,speaker of the ,house of ,representatives the following 1 the ,committees on ,foreign ,affairs and ,armed ,services of the ,house of ,representatives12 7#c7 in sections #be7;e71 #ch7;f77#b71 #ch7;j77#c71 and #ch7;j77#d77;,b71 by striking ,international ,relations each place it appears and inserting ,foreign ,affairs2 7#d7 in sections #bg7;f7 and #fb7;a71 by inserting after the ,speaker of the ,house of ,representatives1 each place it appears the following3 the ,committee on ,foreign ,affairs of the ,house of ,representatives12 and 7#e7 in section #gc7;e77#b71 by striking the ,committee on ,national ,security and the ,committee on ,international ,relations of the ,house of ,representatives and inserting the ,committee on ,armed ,services and the ,committee on ,foreign ,affairs of the ,house of ,representatives4 7b7 ,other technical amendments 7#a7 ,arms ,export ,control ,act ,the ,arms ,export ,control ,act 7#bb ,u4,s4,c4 #bgea et seq471 as amended by subsection 7a71 is further amended-- 7,a7 in section #ch-- 7i7 in subsection 7b77#a71 by redesignating the second subparagraph 7,b7 7as added by section #abee7;b7 of the ,foreign ,relations ,authorization ,act1 ,fiscal ,years #aihh and #aihi 7,public ,law #ajj-bjd2 #aja ,stat4 #adca77 as subparagraph 7,c72 7ii7 in subsection 7g77#a77;,a7-- 7,i7 in clause 7xi71 by striking 2 or and inserting 1 or2 and 7,,ii7 in clause 7xii7-- 7aa7 by striking section and inserting sections2 and 7bb7 by striking 7#ah ,u4,s4,c4 #age;b7 and inserting 7#ah ,u4,s4,c4 #age;c72 and 7iii7 in subsection 7j77#b71 in the matter preceding subparagraph 7,a71 by inserting in after to2 and 7,b7 in section #dg7b71 in the matter preceding subparagraph 7,a71 by striking sec4 #ba7;a711 and inserting section #ba7;a714 7#b7 ,foreign ,assistance ,act of #aifa ,section #ejb;,b of the ,foreign ,assistance ,act of #aifa 7#bb ,u4,s4,c4 #bcjd7 is amended-- 7,a7 in subsection 7b71 by striking ,wherever applicable1 a description and inserting ,wherever applicable1 such report shall include a description2 and 7,b7 in subsection 7d77#b77;,b71 by striking credits and inserting credits74 ,,iv ,application of certain provisions of ,export ,administration #dja4 ,application of certain provisions of ,export ,administration ,act of #aigi 7a7 ,protection of information ,section #ab7;c7 of the ,export ,administration ,act of #aigi 7#ej ,u4,s4,c4 ,app4 #bdaa7;c77 has been in effect from ,august #bj1 #bjja1 and continues in effect on and after the date of the enactment of this ,act1 pursuant to the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agja et seq47 and notwithstanding section #bj of the ,export ,administration ,act of #aigi 7#ej ,u4,s4,c4 ,app4 #bdai74 ,section #ab7;c77#a7 of the ,export ,administration ,act of #aigi is a statute covered by section #eeb7;b77#c7 of title #e1 ,united ,states ,code4 7b7 ,termination date ,subsection 7a7 terminates at the end of the #d-year period beginning on the date of the enactment of this ,act4 ,passed the ,house of ,representatives ,april #g1 #bjad4;,clerk4