H.R. 4216: FMS-Only List Review Act

This bill, known as the FMS-Only List Review Act, directs the Secretary of State, in coordination with the Secretary of Defense, to conduct a review of defense items and services that can currently only be sold through the Foreign Military Sales (FMS) program, as opposed to being available for direct commercial sales. The aim of this review is to evaluate which items and services should be eligible for direct commercial sales, thus potentially increasing the options available to foreign buyers.

Key Provisions

• Review Timeline: The review must be conducted no later than one year after the bill's enactment and annually thereafter.
• Scope of Review: The review will assess the following for each defense article and service:
  • Time required for transfer under the FMS versus direct commercial sales.
  • Impact on the workload of the Department of State and Department of Defense.
  • Benefits to national security and U.S. competitiveness from allowing direct commercial sales.
• Consultation Requirement: The Secretary of State will consult with the Defense Trade Advisory Group and other relevant parties during the review process.
• Reporting: A report detailing the findings of each review must be submitted to Congress within 30 days of completing the review. This report will include:
  • The criteria used to identify items for potential eligibility under direct commercial sales.
  • An identification of items newly added or removed from eligibility, along with reasons for these changes.
• Report Format: The reports will be unclassified but may include a classified annex if necessary.
• Congressional Oversight: The report will be sent to specific congressional committees, including those focused on Foreign Affairs and Armed Services in both the House and Senate.

Purpose of the Bill

The underlying intent of this legislation is to streamline and enhance the process for selling defense articles and services to foreign entities. By allowing some items to be sold via direct commercial sales, it aims to improve the efficiency of transfer processes and potentially foster competitiveness for U.S. defense contractors in the global market.

Potential Implications

Should this bill pass, it may lead to a broader range of defense products available for commercial sale, which could impact U.S. defense relationships with other nations, affect defense contractor operations, and influence how quickly countries can acquire military technology.

Relevant Companies

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