PUBLIC LAW 104-164-^ULY 21, 1996 110 STAT. 1437 "(b) CONDUCT OF PROGRAM.—In carrying out the program established under subsection (a), the President shall ensure that the program— "(1) provides for the end-use verification of defense articles and defense services that incorporate sensitive technology, defense articles and defense services that are particularly vulnerable to diversion or other misuse, or defense articles or defense services whose diversion or other misuse could have significant consequences; and "(2) prevents the diversion (through reverse engineering or other means) of technology incorporated in defense articles. "(c) REPORT TO CONGRESS. —Not later than 6 months after the date of the enactment of this section, and annually thereafter as a part of the annual congressional presentation documents submitted under section 634 of the Foreign Assistance Act of 1961, the President shall transmit to the Congress a report describing the actions taken to implement this section, including a detailed accounting of the costs and number of personnel associated with the monitoring program. "(d) THIRD COUNTRY TRANSFERS.— For purposes of this section, defense articles and defense services sold, leased, or exported under this Act or the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.) includes defense articles and defense services that are transferred to a third country or other third party.". (b) EFFECTIVE DATE. —Section 40A of the Arms Export Control 22 USC 2785 Act, as added by subsection (a), applies with respect to defense ^°^- articles and defense services provided before or after the date of the enactment of this Act. SEC. 151. BROKERING ACTIVITIES RELATING TO COMMERCIAL SALES OF DEFENSE ARTICLES AND SERVICES. (a) IN GENERAL. —Section 38(b)(1)(A) of the Arms Export Control Act (22 U.S.C. 2778(b)(1)(A)) is amended— (1) in the first sentence, by striking "As prescribed in regulations" and inserting "(i) As prescribed in regulations"; and (2) by adding at the end the following new clause: "(ii)(I) As prescribed in regulations issued under this section. Regulations. 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. "(Ill) 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
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