; (2) by striking ; and and inserting ; or ; and (3) by adding at the end the following: (ii) is significant military equipment (as defined in section 47(9) of this Act) and the Secretary of State has provided prior approval of the return of such defense article from the foreign country or international organization; and . 103. Requirements relating to exemptions for licensing of defense items Section 38(j) of the Arms Export Control Act ( 22 U.S.C. 2778(j) ) is amended— (1) in the subsection heading— (A) by striking country ; and (B) by striking to foreign countries ; (2) in paragraph (1)(A)— (A) in the matter preceding clause (i)— (i) by striking a foreign country and inserting the North Atlantic Treaty Organization, any member country of that Organization, the Republic of Korea, Australia, New Zealand, Japan, or Israel ; (ii) by inserting (except that the President may not so exempt such Organization, member country, or other country that is not eligible to acquire defense items under any other provision of law) after with respect to exports of defense items ; and (iii) by striking the foreign country and inserting such Organization, member country, or other country ; and (B) in clause (ii)— (i) by striking the foreign country and inserting such Organization, member country, or other country ; and (ii) by striking under their domestic laws ; (3) in paragraph (2)— (A) in subparagraph (A)— (i) in the matter preceding clause (i)— (I) by striking , at a minimum, ; (II) by striking the foreign country and inserting the Organization, member country, or other country referred to in paragraph (1) ; and (III) by striking to revise its policies and practices, and promulgate or enact necessary modifications to its laws and regulations ; (ii) in clause (i), by striking the foreign country and inserting such Organization, member country, or other country ; and (iii) in clause (ii), by striking retransfer control commitments, including securing and inserting retransfer controls that secure