H.R. 4215: International Traffic in Arms Regulations Licensing Reform Act

This bill, known as the International Traffic in Arms Regulations Licensing Reform Act, aims to streamline the process for exporting defense articles and services from the United States. Here’s a breakdown of its key components:

Creation of a Priority List

The Secretary of State is required to develop and maintain a list of countries and end-users that are considered a priority for expedited licensing of defense exports. This list must be created within 90 days of the bill’s enactment. The countries and entities on this list will generally be those whose defense needs are aligned with the national security interests of the United States.

Reporting to Congress

Once the priority list is established, the Secretary of State must provide an updated version of this list to Congress every year, starting 30 days after the list’s creation. This will ensure transparency and allow Congress to monitor the process.

Expedited Decision-Making Process

The bill mandates that the Secretary of State, in coordination with the Secretary of Defense, implement a rule-making process to set timelines for decisions on export applications:

• For applications related to a country or end-user on the priority list, decisions (approval, return, or denial) must be made within **45 days**.
• For all other applications, decisions must be reached within **60 days**.

However, these deadlines can be extended under certain conditions, such as if a congressional resolution is pending or if additional input is required from the Department of Defense.

Accountability Through Reporting

The Secretary of State must submit biannual reports to Congress detailing any applications that took longer than the specified deadlines. These reports will include:

• A list of the defense items involved in each application.
• The recipient country or end-user, along with related corporate entities.
• Information on whether the U.S. has previously exported similar items to that recipient.
• Reasons for any delays in the decision-making process.
• Expected timelines for any outstanding decisions.

Overall Objectives

The main goal of this legislation is to enhance the efficiency and predictability of the licensing process for defense exports. By prioritizing certain countries and establishing concrete timelines, the bill seeks to facilitate international defense relationships while maintaining oversight and accountability in the export process.

Relevant Companies

• LMT (Lockheed Martin Corporation): As a leading defense contractor, Lockheed Martin would likely benefit from expedited licensing for exporting military equipment and services to priority countries.
• BA (The Boeing Company): Boeing, involved in defense systems, could see increased sales opportunities if the export process is accelerated for international customers.
• NOC (Northrop Grumman Corporation): Northrop Grumman, heavily involved in defense technology, may also see favorable impacts as the bill facilitates quicker export processes for their products.