H.R. 4716 would authorize the President to exempt from certain licensing and certification requirements transfers and exports of defense articles to Australia and between Australia, the United Kingdom, and the United States. H.R. 4716 also would increase the criminal penalty for violating rules governing defense exports and imports. Lastly, the bill would require the Department of State to report to the Congress on transfers to Australia that would no longer require certifications under the bill and on the potential ramifications of implementing this bill on Taiwan, Thailand, South Korea, Japan, and the Philippines.