Amends the Arms Export Control Act to allow narrow exceptions to the usual requirement that the U.S. conclude a bilateral agreement before exempting some defense exports from licensing. It creates an explicit exemption for the United Kingdom and an exemption tied to the existing U.S.–Australia Defense Trade Cooperation Treaty, while preserving six specified categories of weapons, materials, and technologies that remain excluded from the treaty-based exemption.
Amend Section 38 of the Arms Export Control Act (22 U.S.C. 2778) by inserting text in subsection (f)(3) after the phrase '; and'. The text to be inserted is not reproduced in full here; the amendment instruction is explicitly stated.
Add a new subparagraph (C) to subsection (j)(1) stating that the requirement to conclude a bilateral agreement under subparagraph (A) does not apply to an exemption for the United Kingdom from the licensing requirements of the Arms Export Control Act for the export of defense items.
Add a new subparagraph (D) to subsection (j)(1) stating that the requirement to conclude a bilateral agreement under subparagraph (A) does not apply to an exemption from licensing requirements made to give effect to the Treaty Between the Government of the United States of America and the Government of Australia Concerning Defense Trade Cooperation (done at Sydney September 5, 2007) (including any implementing arrangement), except that the United States must exempt from the scope of that treaty certain specified items (listed in clauses (i)–(vi)).
Clause (i): Exclude from the treaty’s scope complete rocket systems (including ballistic missile systems, space launch vehicles, and sounding rockets) or complete unmanned aerial vehicle systems (including cruise missile systems, target drones, and reconnaissance drones) that can deliver at least a 500 kilogram payload to a range of 300 kilometers, and associated production facilities, software, or technology — as defined in the Missile Technology Control Regime (MTCR) Annex Category I, Item 1.
Clause (ii): Exclude from the treaty’s scope individual rocket stages, re-entry vehicles and equipment, solid or liquid propellant motors or engines, guidance sets, thrust vector control systems, and associated production facilities, software, and technology — as defined in MTCR Annex Category I, Item 2.
Who is affected and how:
Department of Defense components and U.S. export-control agencies: These agencies must apply the amended authority when assessing exemptions and continue oversight of excluded categories. The change modifies an administrative precondition for exemptions and will require procedural updates to licensing guidance.
Defense industrial base (munitions producers and suppliers) and U.S. exporters of defense articles: Exporters who transfer qualifying items to the UK or transfers covered under the U.S.–Australia treaty may see faster, simpler processing when an exemption applies. This can reduce time and cost for eligible transfers but will not affect shipments in the six excluded categories.
United Kingdom and Australia (and their defense establishments): These allies may receive certain defense articles more quickly under the exemption paths, improving interoperability and logistics for non-excluded items. Sensitive categories remain controlled and must follow standard licensing.
Congress and export-control stakeholders: The change shifts how exemptions can be used and may prompt requests for reporting or oversight to ensure sensitive items remain protected.
Net effect: The legislation streamlines export exemptions for two close allies in limited circumstances while safeguarding a set of sensitive items by keeping them subject to the usual licensing rules. It reduces administrative burden for some transfers but does not broadly relax U.S. export controls.
Last progress June 6, 2025 (8 months ago)
Introduced on June 6, 2025 by Mark E. Green
Referred to the House Committee on Foreign Affairs.