Security and Fair Enforcement in Arms Trafficking Act of 2004

Security and Fair Enforcement in Arms Trafficking Act of 2004 - Declares U.S. policy with respect to adherence by the United States to certain standards in the transfer of small arms and light weapons.

Expresses the sense of Congress that the United States should enter into international agreements to regulate the trade in small arms and light weapons.

Expresses the sense of Congress that the President should: (1) enter into negotiations with foreign parties beginning with the European Union (EU) and the North Atlantic Treaty Organization (NATO) member states for an international agreement not to export to commercial end-users semiautomatic assault weapons or related equipment, the manufacture, transfer, or possession of which is unlawful under U.S. law; (2) enter into agreements for the marking of small arms and light weapons; (3) enter into negotiations at the United Nations (UN) level to improve UN arms embargoes as they relate to such arms and weapons; (4) enter into negotiations for a comprehensive international agreement with foreign parties beginning with the EU that calls for marking and tracing small arms and light weapons, regulating arms brokers activities, prohibiting transferring such weapons to recipients engaged in gross violations of human rights, and destroying surplus weaponry; (5) make best efforts to advance international negotiations to implement the Program of Action of the 2001 United Nations Conference on the Illicit Trade in Small Arms and Light Weapons in All Its Aspects; and (6) propose the establishment among NATO members of a program on stockpile management, security, and destruction of small arms and light weapons, and the establishment of cooperative programs on stockpile management, security, and destruction of small arms and light weapons with non-NATO states of Central and Eastern Europe and the former Soviet Union.

Expresses the sense of Congress that the Secretary of State should encourage countries to sign and ratify the Inter-American Convention Against Illicit Manufacturing of and Trafficking in Firearms, Ammunitions, Explosives, and Other Related Materials.

Directs the Secretary to report annually on countries that have not cooperated in small arms programs.

Amends the Arms Export Control Act to require the President to notify Congress before issuing a license for the export of a defense article that is a firearm controlled under category I of the U.S. Munitions List and valued at $1 million or more (including any lethal defense article or defense service of $1 million or less that is exported to country where there is a risk such items may be used in an act of international aggression).