HR 2581 RH 
Union Calendar No. 212
107th CONGRESS
2d Session
H. R. 2581
[Report No. 107-297, Parts I and II]
To provide authority to control exports, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES
July 20, 2001
Mr. GILMAN introduced the following bill; which was referred to the Committee on 
International Relations, and in addition to the Committee on Rules, for a period 
to be subsequently determined by the Speaker, in each case for consideration of 
such provisions as fall within the jurisdiction of the committee concerned 
November 16, 2001
Reported from the Committee on International Relations with an amendment 
[Strike out all after the enacting clause and insert the part printed in italic]
November 16, 2001
Referral to the Committee on Rules extended for a period not later than December 
7, 2001 
November 16, 2001
Referred to the Committees on Agriculture, Armed Services, Energy and Commerce, 
the Judiciary, Ways and Means, and the Permanent Select Committee on 
Intelligence for a period ending not later than December 7, 2001, for 
consideration of such provisions of the bill and amendment as fall within the 
respective jurisdiction of those committees pursuant to clauses 1 and 11 of rule 
X 
December 7, 2001
Referral to the Committees on Agriculture, Armed Services, Energy and Commerce, 
the Judiciary, Rules, Ways and Means, and the Permanent Select Committee on 
Intelligence extended for a period ending not later than December 15, 2001 
December 14, 2001
Referral to the Committees on Agriculture, Armed Services, Energy and Commerce, 
the Judiciary, Rules, Ways and Means, and the Permanent Select Committee on 
Intelligence extended for a period ending not later than February 28, 2002 
February 28, 2002
Referral to the Committee on Agriculture, Armed Services, Energy and Commerce, 
Rules, the Judiciary, Ways and Means, and the Permanent Select Committee on 
Intelligence extended for a period ending not later than March 8, 2002 
March 8, 2002
Reported from the Committee on Armed Services with amendments 
[Omit the part struck through in italic and insert the part printed in boldface 
roman]
March 8, 2002
The Committees on Agriculture, Energy and Commerce, the Judiciary, Rules, Ways 
and Means, and the Permanent Select Committee on Intelligence discharged; 
committed to the Committee of the Whole House on the State of the Union and 
ordered to be printed 
[For text of introduced bill, see copy of bill as introduced on July 20, 2001]

A BILL
To provide authority to control exports, and for other purposes. 
  Be it enacted by the Senate and House of Representatives of the United States 
  of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
  (a) SHORT TITLE- This Act may be cited as the `Export Administration Act of 
  2001'.
  (b) TABLE OF CONTENTS- The table of contents of this Act is as follows:
    Sec. 1. Short title; table of contents.
    Sec. 2. Definitions.
TITLE I--GENERAL AUTHORITY
    Sec. 101. Commerce Control List.
    Sec. 102. Delegation of authority.
    Sec. 103. Public information; consultation requirements.
    Sec. 104. Right of export.
    Sec. 105. Export control advisory committees.
    Sec. 106. President's Technology Export Council.
    Sec. 107. Prohibition on charging fees.
TITLE II--NATIONAL SECURITY EXPORT CONTROLS
Subtitle A--Authority and Procedures
    Sec. 201. Authority for national security export controls.
    Sec. 202. National Security Control List.
    Sec. 203. Country tiers.
    Sec. 204. Incorporated parts and components.
    Sec. 205. Petition process for modifying export status.
    Sec. 206. Congressional review and report.
Subtitle B--Foreign Availability and Mass-Market Status
    Sec. 211. Determination of foreign availability and mass-market status.
    Sec. 212. Presidential set-aside of foreign availability status 
    determination.
    Sec. 213. Presidential set-aside of mass-market status determination.
    Sec. 214. Office of Technology Evaluation.
Subtitle C--High Performance Computers
    Sec. 221. Exports of high performance computing technology.
TITLE III--FOREIGN POLICY EXPORT CONTROLS
    Sec. 301. Authority for foreign policy export controls.
    Sec. 302. Procedures for imposing controls.
    Sec. 303. Criteria for foreign policy export controls.
    Sec. 304. Presidential report before imposition of control.
    Sec. 305. Imposition of controls.
    Sec. 306. Deferral authority.
    Sec. 307. Review, renewal, and termination.
    Sec. 308. Termination of controls under this title.
    Sec. 309. Compliance with international obligations.
    Sec. 310. Designation of countries supporting international terrorism.
    Sec. 311. Crime control instruments.
    Sec. 312. Measures to protect the public health.
    Sec. 313. Promotion of safe environments.
TITLE IV--PROCEDURES FOR EXPORT LICENSES AND INTERAGENCY DISPUTE RESOLUTION
    Sec. 401. Export license procedures.
    Sec. 402. Interagency dispute resolution process.
TITLE V--INTERNATIONAL ARRANGEMENTS; FOREIGN BOYCOTTS; SANCTIONS; AND 
ENFORCEMENT
    Sec. 501. International arrangements.
    Sec. 502. Foreign boycotts.
    Sec. 503. Penalties.
    Sec. 504. Missile proliferation control violations.
    Sec. 505. Chemical and biological weapons proliferation sanctions.
    Sec. 506. Enforcement.
    Sec. 507. Administrative procedure.
TITLE VI--EXPORT CONTROL AUTHORITY AND REGULATIONS
    Sec. 601. Export control authority and regulations.
    Sec. 602. Confidentiality of information.
[Struck out->] TITLE VII--EXPORTS OF SATELLITES [<-Struck out]
    [Struck out->] Sec. 701. Applicability. [<-Struck out]
    [Struck out->] Sec. 702. Export controls on satellites and related items. 
    [<-Struck out]
    [Struck out->] Sec. 703. Export license procedures. [<-Struck out]
    [Struck out->] Sec. 704. Mandatory State Department review. [<-Struck out]
    [Struck out->] Sec. 705. Definitions. [<-Struck out]
    [Struck out->] Sec. 706. Conforming amendments. [<-Struck out]
    [Struck out->] Sec. 707. Effective date. [<-Struck out]
    [Struck out->] Sec. 708. Effect on existing law. [<-Struck out]
TITLE VIII VII--MISCELLANEOUS PROVISIONS
    Sec. [Struck out->] 801 [<-Struck out] 701. Annual report.
    Sec. [Struck out->] 802 [<-Struck out] 702. Relationship to the Arms Export 
    Control Act.
    Sec. [Struck out->] 803 [<-Struck out] 703. Enhancement of congressional 
    oversight of nuclear transfers to North Korea.
    Sec. [Struck out->] 804 [<-Struck out] 704. Procedures for consideration of 
    joint resolutions.
    Sec. [Struck out->] 805 [<-Struck out] 705. Recommendations of the Judicial 
    Review Commission on Foreign Asset Control.
    Sec. [Struck out->] 806 [<-Struck out] 706. Improvements to the automated 
    export system.
    Sec. [Struck out->] 807 [<-Struck out] 707. Technical and conforming 
    amendments.
    Sec. [Struck out->] 808 [<-Struck out] 708. Savings provisions.
SEC. 2. DEFINITIONS.
  Except as otherwise expressly provided, in this Act:
    (1) AFFILIATE- The term `affiliate' includes both governmental entities and 
    commercial entities that are controlled in fact by the government of a 
    country.
    (2) CONTROL OR CONTROLLED- The terms `control' and `controlled' mean any 
    requirement, condition, authorization, or prohibition on the export or 
    reexport of an item.
    (3) CONTROL LIST- The term `Control List' means the Commerce Control List 
    established under section 101.
    (4) CONTROLLED COUNTRY- The term `controlled country' means a country with 
    respect to which exports are controlled under section 201 or 301.
    (5) CONTROLLED ITEM- The term `controlled item' means an item the export of 
    which is controlled under this Act.
    (6) COUNTRY- The term `country' means a sovereign country or an autonomous 
    customs territory.
    (7) COUNTRY SUPPORTING INTERNATIONAL TERRORISM- The term `country supporting 
    international terrorism' means a country designated by the Secretary of 
    State pursuant to section 310.
    (8) DEPARTMENT- The term `Department' means the Department of Commerce.
    (9) EXPORT- 
      (A) The term `export' means--
        (i) an actual shipment, transfer, or transmission of an item out of the 
        United States;
        (ii) a transfer to any person of an item either within the United States 
        or outside of the United States with the knowledge or intent that the 
        item will be shipped, transferred, or transmitted to an unauthorized 
        recipient outside the United States;
        [Struck out->] (iii) the release of technology to a foreign national 
        within the United States; or [<-Struck out]
        (iii) the release of an item to a foreign national within or outside of 
        the United States;
        (iv) a transfer of an item in the United States to an embassy or 
        affiliate of a country, which shall be considered an export to that 
        country.
      (B) The term includes a reexport.
    (10) FOREIGN AVAILABILITY STATUS- The term `foreign availability status' 
    means the status described in section 211(d)(1).
    (11) FOREIGN PERSON- The term `foreign person' means--
      (A) an individual who is not--
        (i) a United States citizen;
        (ii) an alien lawfully admitted for permanent residence to the United 
        States; or
        (iii) a protected individual as defined in section 274B(a)(3) of the 
        Immigration and Nationality Act. (8 U.S.C. 1324b(a)(3));
      (B) any corporation, partnership, business association, society, trust, 
      organization, or other nongovernmental entity created or organized under 
      the laws of a foreign country or that has its principal place of business 
      outside the United States; and
      (C) any governmental entity of a foreign country.
    (12) ITEM- 
      (A) IN GENERAL- The term `item' means any good, technology, or service.
      (B) OTHER DEFINITIONS- In this paragraph:
        (i) GOOD- The term `good' means any article, natural or manmade 
        substance, material, supply or manufactured product, including 
        inspection and test equipment, including source code, and excluding 
        technical data.
        [Struck out->] (ii) TECHNOLOGY- The term `technology' means specific 
        information that is necessary for the development, production, or use of 
        an item, and takes the form of technical data or technical assistance. 
        [<-Struck out]
        (ii) TECHNOLOGY- The term `technology' means specific information, 
        communicated by any means tangible or intangible, that is necessary for 
        the design, development, production, or use of an item, including taking 
        the form of technical data or technical assistance.
        (iii) SERVICE- The term `service' means any act of assistance, help, or 
        aid.
    (13) MASS-MARKET STATUS- The term `mass-market status' means the status 
    described in section 211(d)(2).
    (14) MULTILATERAL EXPORT CONTROL REGIME- The term `multilateral export 
    control regime' means an international agreement or arrangement among two or 
    more countries, including the United States, a purpose of which is to 
    coordinate national export control policies of its members regarding certain 
    items. The term includes regimes such as the Australia Group, the Wassenaar 
    Arrangement, the Missile Technology Control Regime (MTCR), and the Nuclear 
    Suppliers' Group Dual Use Arrangement.
    (15) NATIONAL SECURITY CONTROL LIST- The term `National Security Control 
    List' means the list established under section 202(a).
    (16) PERSON- The term `person' includes--
      (A) any individual, or any partnership, corporation, business association, 
      society, trust, organization, or any other group created or organized 
      under the laws of a country; and
      (B) any government, or any governmental entity, including any governmental 
      entity operating as a business enterprise.
    (17) REEXPORT- The term `reexport' means the shipment, transfer, 
    transshipment, or diversion of items from one foreign country to another.
    (18) SECRETARY- The term `Secretary' means the Secretary of Commerce.
    (19) UNITED STATES- The term `United States' means the States of the United 
    States, the District of Columbia, and any commonwealth, territory, 
    dependency, or possession of the United States, and includes the outer 
    Continental Shelf, as defined in section 2(a) of the Outer Continental Shelf 
    Lands Act (42 U.S.C. 1331(a)).
    (20) UNITED STATES PERSON- The term `United States person' means--
      (A) any United States citizen, resident, or national (other than an 
      individual resident outside the United States who is employed by a person 
      other than a United States person);
      (B) any domestic concern (including any permanent domestic establishment 
      of any foreign concern); and
      (C) any foreign subsidiary or affiliate (including any permanent foreign 
      establishment) of any domestic concern which is controlled in fact by such 
      domestic concern, as determined under regulations prescribed by the 
      President.
TITLE I--GENERAL AUTHORITY
SEC. 101. COMMERCE CONTROL LIST.
  (a) IN GENERAL- Under such conditions as the Secretary may impose, consistent 
  with the provisions of this Act, the Secretary--
    (1) shall establish and maintain a Commerce Control List consisting of items 
    the export of which are subject to licensing or other authorization or 
    requirement; and
    (2) may require any type of license, or other authorization, including 
    recordkeeping and reporting,
appropriate to the effective and efficient implementation of this Act with 
respect to the export of an item on the Control List or otherwise subject to 
control under title II or III of this Act. 
  (b) TYPES OF LICENSE OR OTHER AUTHORIZATION- The types of license or other 
  authorization referred to in subsection (a)(2) include the following:
    (1) SPECIFIC EXPORTS- A license that authorizes a specific export.
    (2) MULTIPLE EXPORTS- A license that authorizes multiple exports in lieu of 
    a license for each export.
    (3) NOTIFICATION IN LIEU OF LICENSE- A notification in lieu of a license 
    that authorizes a specific export or multiple exports subject to the 
    condition that the exporter file with the Department advance notification of 
    the intent to export in accordance with regulations prescribed by the 
    Secretary.
    (4) LICENSE EXCEPTION- Authority to export an item on the Control List 
    without prior license or notification in lieu of a license.
  (c) AFTER-MARKET SERVICE AND REPLACEMENT PARTS- A license to export an item 
  under this Act shall not be required for an exporter to provide after-market 
  service or replacement parts in order to replace on a one-for-one basis parts 
  that were in an item that was lawfully exported from the United States, 
  unless--
    (1) the Secretary determines that such license is required to export such 
    parts; or
    (2) the after-market service or replacement parts would materially enhance 
    the capability of an item which was the basis for the item being controlled.
  (d) INCIDENTAL TECHNOLOGY- A license or other authorization to export an item 
  under this Act includes authorization to export technology related to the 
  item, if the level of the technology does not exceed the minimum necessary to 
  install, repair, maintain, inspect, operate, or use the item.
SEC. 102. DELEGATION OF AUTHORITY.
  (a) IN GENERAL- Except as provided in subsection (b) and subject to the 
  provisions of this Act, the President may delegate the power, authority, and 
  discretion conferred upon the President by this Act to such departments, 
  agencies, and officials of the Government as the President considers 
  appropriate.
  (b) EXCEPTIONS- 
    (1) DELEGATION TO APPOINTEES CONFIRMED BY SENATE- No authority delegated to 
    the President under this Act may be delegated by the President to, or 
    exercised by, any official of any department or agency the head of which is 
    not appointed by the President, by and with the advice and consent of the 
    Senate.
    (2) OTHER LIMITATIONS- The President may not delegate or transfer the 
    President's power, authority, or discretion to overrule or modify any 
    recommendation or decision made by the Secretary, the Secretary of Defense, 
    or the Secretary of State under this Act.
SEC. 103. PUBLIC INFORMATION; CONSULTATION REQUIREMENTS.
  (a) PUBLIC INFORMATION- The Secretary shall keep the public fully informed of 
  changes in export control policy and procedures instituted in conformity with 
  this Act.
  (b) CONSULTATION WITH PERSONS AFFECTED- The Secretary shall consult regularly 
  with representatives of a broad spectrum of enterprises, labor organizations, 
  nonproliferation and national security experts, and citizens interested in or 
  affected by export controls in order to obtain their views on United States 
  export control policy and the foreign availability or mass-market status of 
  controlled items.
SEC. 104. RIGHT OF EXPORT.
  No license or other authorization to export may be required under this Act, or 
  under regulations issued under this Act, except to carry out the provisions of 
  this Act.
SEC. 105. EXPORT CONTROL ADVISORY COMMITTEES.
  (a) APPOINTMENT- Upon the Secretary's own initiative or upon the written 
  request of representatives of a substantial segment of any industry which 
  produces any items subject to export controls under this Act or being 
  considered for such controls, the Secretary may appoint export control 
  advisory committees with respect to any such items. Each such committee shall 
  consist of representatives of United States industry and Government officials, 
  including officials from the Departments of Commerce, Defense, and State, and 
  other appropriate departments and agencies of the Government. The Secretary 
  shall permit the widest possible participation by the business community on 
  the export control advisory committees on the export control advisory 
  committees by nonproliferation and national security experts, and by the 
  business community.
  (b) FUNCTIONS- 
    (1) IN GENERAL- Export control advisory committees appointed under 
    subsection (a) shall advise and assist the Secretary, and any other 
    department, agency, or official of the Government carrying out functions 
    under this Act, on actions (including all aspects of controls imposed or 
    proposed) designed to carry out the provisions of this Act concerning the 
    items with respect to which such export control advisory committees were 
    appointed.
    (2) OTHER CONSULTATIONS- Nothing in paragraph (1) shall prevent the United 
    States Government from consulting, at any time, with any person representing 
    an industry or the general public, regardless of whether such person is a 
    member of an export control advisory committee. Members of the public shall 
    be given a reasonable opportunity, pursuant to regulations prescribed by the 
    Secretary, to present information to such committees.
  (c) REIMBURSEMENT OF EXPENSES- Upon the request of any member of any export 
  control advisory committee appointed under subsection (a), the Secretary may, 
  if the Secretary determines it to be appropriate, reimburse such member for 
  travel, subsistence, and other necessary expenses incurred by such member in 
  connection with the duties of such member.
  (d) CHAIRPERSON- Each export control advisory committee appointed under 
  subsection (a) shall elect a chairperson, and shall meet at least every 3 
  months at the call of the chairperson, unless the chairperson determines, in 
  consultation with the other members of the committee, that such a meeting is 
  not necessary to achieve the purposes of this section. Each such committee 
  shall be terminated after a period of 2 years, unless extended by the 
  Secretary for additional periods of 2 years each. The Secretary shall consult 
  with each such committee on such termination or extension of that committee.
  (e) ACCESS TO INFORMATION- To facilitate the work of the export control 
  advisory committees appointed under subsection (a), the Secretary, in 
  conjunction with other departments and agencies participating in the 
  administration of this Act, shall disclose to each such committee adequate 
  information, consistent with national security and intelligence sources and 
  methods, pertaining to the reasons for the export controls which are in effect 
  or contemplated for the items or policies for which that committee furnishes 
  advice. Information provided by the export control advisory committees shall 
  not be subject to disclosure under section 552 of title 5, United States Code, 
  and such information shall not be published or disclosed unless the Secretary 
  determines that the withholding thereof is contrary to the national interest.
SEC. 106. PRESIDENT'S TECHNOLOGY EXPORT COUNCIL.
  The President may establish a President's Technology Export Council to advise 
  the President on the implementation, operation, and effectiveness of this Act.
SEC. 107. PROHIBITION ON CHARGING FEES.
  No fee may be charged in connection with the submission or processing of an 
  application for an export license under this Act.
TITLE II--NATIONAL SECURITY EXPORT CONTROLS
Subtitle A--Authority and Procedures
SEC. 201. AUTHORITY FOR NATIONAL SECURITY EXPORT CONTROLS.
  (a) AUTHORITY- 
    (1) IN GENERAL- In order to carry out the purposes set forth in subsection 
    (b), the President may, in accordance with the provisions of this Act, 
    prohibit, curtail, or require a license, or other authorization for the 
    export of any item subject to the jurisdiction of the United States or 
    exported by any person subject to the jurisdiction of the United States. The 
    President may also require recordkeeping and reporting with respect to the 
    export of such item.
    (2) EXERCISE OF AUTHORITY- The authority contained in this subsection shall 
    be exercised by the Secretary, in consultation with the Secretary of 
    Defense, the Secretary of State, with the concurrence of the Secretary of 
    Defense and in consultation with the Secretary of State, the intelligence 
    agencies, and the heads of such other departments and agencies as the 
    Secretary considers appropriate.
  (b) PURPOSES- The purposes of national security export controls are the 
  following:
    (1) To restrict the export of items that [Struck out->] would [<-Struck out] 
    could contribute to the military potential of countries so as to prove 
    detrimental to the national security of the United States, its allies, or 
    countries sharing common strategic objectives with the United States.
    (2) To stem the proliferation of weapons of mass destruction, and the means 
    to deliver them, and other significant military capabilities by--
      (A) leading international efforts to control the proliferation of chemical 
      and biological weapons, nuclear explosive devices, missile delivery 
      systems, key-enabling technologies, and other significant military 
      capabilities;
      (B) controlling involvement of United States persons in, and contributions 
      by United States persons to, foreign programs intended to develop weapons 
      of mass destruction, missiles, and other significant military 
      capabilities, and the means to design, test, develop, produce, stockpile, 
      or use them; and
      (C) implementing international treaties or other agreements or 
      arrangements concerning controls on exports of designated items, reports 
      on the production, processing, consumption, and exports and imports of 
      such items, and compliance with verification programs.
    [Struck out->] (3) To deter acts of international terrorism. [<-Struck out]
    (3) To restrict the export of items that could contribute to acts of 
    international terrorism so as to prove detrimental to the national security 
    of the United States, its allies, or countries sharing common strategic 
    objectives with the United States.
  (c) END USE AND END USER CONTROLS- 
    (1) GENERAL AUTHORITY- (A) Notwithstanding any other provision of this Act, 
    controls may be imposed, based on the end use or end user, on the export of 
    any item, that could contribute to the proliferation of weapons of mass 
    destruction or the means to deliver them.
    (B) The President shall seek to strengthen multilateral cooperation to 
    identify more effectively end users of concern.
    (C) The Secretary shall establish and maintain a database listing end users 
    of concern and develop a procedure by which exporters can utilize such 
    database to screen prospective end users.
    (2) PRESUMPTION OF DENIAL OF CERTAIN LICENSES- Notwithstanding any other 
    provision of this Act, there shall be a presumption of denial for the export 
    of an item if the Secretary, with the concurrence of the Secretary of 
    Defense and the Secretary of State, determines that there is a significant 
    risk that--
      (A) the end user designated to receive such item is involved in a program 
      or activity for the design, development, manufacture, stockpiling, 
      testing, or other acquisition of a weapon of mass destruction or the means 
      to deliver such a weapon and is in a country that is not an adherent to a 
      multilateral export control regime controlling such weapon or means of 
      delivery, unless the Secretary, with the concurrence of the Secretary of 
      Defense and the Secretary of State, and in consultation with the 
      intelligence agencies and the head of any other department or agency of 
      the United States that the Secretary considers appropriate, determines 
      that such export would not make a material contribution to such program or 
      activity; or
      (B) the export of such item would otherwise contribute to the military 
      capabilities of a country so as to undermine regional stability or 
      otherwise prove detrimental to the national security of the United States, 
      a NATO ally, or major non-NATO ally.
    (3) DEFINITION- For purposes of this subsection, an `adherent to a 
    multilateral export control regime' is--
      (A) a country that is a member of a multilateral export control regime;
      (B) a country that, pursuant to an international understanding to which 
      the United States is a party, controls exports in accordance with relevant 
      criteria and standards of a multilateral export control regime; or
      (C) a major non-NATO ally that, pursuant to its national legislation, 
      controls exports in accordance with such criteria and standards.
  (d) ENHANCED CONTROL- 
    (1) IN GENERAL- Notwithstanding any other provision of this title, the 
    President may determine that applying the provisions of section 204 or 211 
    with respect to an item on the National Security Control List could 
    constitute a threat to the national security of the United States and that 
    such item requires enhanced control, including the requirement for a license 
    for such item. If the President determines that enhanced control should 
    apply to such item, the item may be excluded from the provisions of sections 
    204 or 211, or both, until such time as the President determines that 
    enhanced control should no longer apply to such item.
    (2) CONTROL OF ITEMS- Notwithstanding any other provision of this Act, the 
    President may identify items to be included on the National Security Control 
    List, and any such item shall be included on that list.
    (3) NONDELEGATION- The President may not delegate the authority provided 
    under paragraphs (1) and (2).
    (4) REPORT TO CONGRESS- The President shall promptly report any 
    determination described in paragraph (1) or any items included on the 
    National Security Control List under paragraph (2), along with the specific 
    reasons for that determination or inclusion (as the case may be), to the 
    Committee on International Relations of the House of Representatives and the 
    Committee on Banking, Housing, and Urban Affairs of the Senate.
  (e) PRESUMPTION OF DENIAL ON CERTAIN LICENSES- 
    (1) PRESUMPTION- Notwithstanding any other provision of law, when a license 
    is required for export to any country of any item on the National Security 
    Control List for any reason specified in subsection (b), there shall be a 
    presumption of denial for the export of such item if there is a significant 
    risk that--
      (A) such item [Struck out->] would [<-Struck out] could contribute to the 
      nuclear, chemical, or biological weapons capabilities of such country or 
      the capabilities of such country to deliver such weapons;
      (B) such item [Struck out->] would [<-Struck out] could otherwise 
      contribute to the military capabilities of such country so as to undermine 
      regional stability or otherwise prove detrimental to the national security 
      of the United States, a NATO ally, or major non-NATO ally;
      (C) such item [Struck out->] would [<-Struck out] could likely be used or 
      diverted to a use or destination not authorized by the license or United 
      States policy; or
      (D) the export of such item [Struck out->] would [<-Struck out] could 
      otherwise materially and adversely affect the national security interests 
      of the United States.
    (2) EXCEPTION- Paragraph (1) shall not apply to the export of an item to a 
    country that is an adherent to a multilateral export control regime 
    controlling the export of such item.
    (3) DEFINITION- For purposes of this subsection, an `adherent to a 
    multilateral export control regime' is--
      (A) a country that is a member of a multilateral export control regime;
      (B) a country that, pursuant to an international understanding to which 
      the United States is a party, controls exports in accordance with relevant 
      criteria and standards of a multilateral export control regime; or
      (C) a major non-NATO ally that, pursuant to its national legislation, 
      controls exports in accordance with such criteria and standards.
SEC. 202. NATIONAL SECURITY CONTROL LIST.
  (a) ESTABLISHMENT OF LIST- 
    (1) ESTABLISHMENT- The Secretary shall establish and maintain a National 
    Security Control List, as part of the Control List.
    (2) CONTENTS- The National Security Control List shall be composed of a list 
    of items the export of which is controlled for national security purposes 
    under this title.
    (3) IDENTIFICATION OF ITEMS FOR NATIONAL SECURITY CONTROL LIST- The 
    Secretary, with the concurrence of the Secretary of Defense and the 
    Secretary of State and in consultation with the head of any other department 
    or agency of the United States that the Secretary considers appropriate, 
    shall identify the items to be included on the National Security Control 
    List, except that the National Security Control List shall, on the date of 
    enactment of this Act, include all of the items on the Commerce Control List 
    controlled on the day before the date of enactment of this Act to protect 
    the national security of the United States, to prevent the proliferation of 
    weapons of mass destruction and the means to deliver them, and to deter acts 
    of international terrorism. The Secretary shall review on a continuing basis 
    and, with the concurrence of the Secretary of Defense and the Secretary of 
    State and in consultation with the head of any other department or agency of 
    the United States that the Secretary considers appropriate, adjust the 
    National Security Control List to add items that require control under this 
    section and to remove items that no longer warrant control under this 
    section.
    (4) MILITARILY CRITICAL TECHNOLOGIES LIST-
      (A) ESTABLISHMENT- The Secretary of Defense shall establish and maintain a 
      Militarily Critical Technologies List, which shall be part of the National 
      Security Control List.
      (B) CONTENTS- The Militarily Critical Technologies List shall be composed 
      of a list of items that are, or could be, critical to the United States 
      military maintaining or advancing its qualitative advantage and 
      superiority relative to other countries or potential adversaries.
      (C) AUTHORITY OF THE SECRETARY OF DEFENSE- Notwithstanding any other 
      provision of this Act, other than section 201(d)(2), the Secretary of 
      Defense shall have sole authority for adding any item to or removing any 
      item from the Militarily Critical Technologies List, regardless of whether 
      that item is otherwise on the Control List or otherwise controlled for 
      export under this Act.
      (D) LICENSING OF MILITARILY CRITICAL TECHNOLOGIES LIST ITEMS- Items listed 
      on the Militarily Critical Technologies List shall not be approved for 
      export without the express consent of the Secretary of Defense, unless the 
      President determines otherwise pursuant to section 402(b).
      (E) ANNUAL REPORT- The Secretary of Defense shall report annually to the 
      Committee on Armed Services of the House of Representatives and the 
      Committee on Armed Services of the Senate on actions taken to carry out 
      this paragraph.
  (b) RISK ASSESSMENT- 
    (1) REQUIREMENT- In establishing and maintaining the National Security 
    Control List as set forth in paragraphs (1), (2), and (3) of subsection (a), 
    the risk factors set forth in paragraph (2) shall be considered, weighing 
    national security concerns and economic costs.
    (2) RISK FACTORS- The risk factors referred to in paragraph (1), with 
    respect to each item, are as follows:
      (A) The characteristics of the item.
      (B) The threat, if any, to the United States or the national security 
      interest of the United States from the misuse or diversion of the item.
      (C) The effectiveness of controlling the item for national security 
      purposes of the United States, taking into account mass-market status, 
      foreign availability, and other relevant factors.
      (D) The threat to the national security interests of the United States if 
      the item is not controlled.
      (E) Any other appropriate risk factors.
  (c) REPORT ON CONTROL LIST- Not later than 90 days after the date of enactment 
  of this Act, the Secretary shall submit a report to Congress which lists all 
  items on the Commerce Control List controlled on the day before the date of 
  enactment of this Act to protect the national security of the United States, 
  to prevent the proliferation of weapons
of mass destruction and the means to deliver them, and to deter acts of 
international terrorism, not included on the National Security Control List 
pursuant to the provisions of this Act. 
SEC. 203. COUNTRY TIERS.
  (a) IN GENERAL- 
    (1) ESTABLISHMENT AND ASSIGNMENT- In administering export controls for 
    national security purposes under this title, the President shall, not later 
    than 120 days after the date of enactment of this Act--
      (A) establish and maintain a country tiering system in accordance with 
      subsection (b); and
      (B) based on the assessments required under subsection (c), assign each 
      country to an appropriate tier for each item or group of items the export 
      of which is controlled for national security purposes under this title.
    (2) CONSULTATION- The establishment and assignment of country tiers under 
    this section shall be made after consultation with the Secretary, the 
    Secretary of Defense, the Secretary of State, the intelligence agencies, and 
    the heads of such other departments and agencies as the President considers 
    appropriate.
    (3) REDETERMINATION AND REVIEW OF ASSIGNMENTS- The President may redetermine 
    the assignment of a country to a particular tier at any time and shall 
    review and, as the President considers appropriate, reassign country tiers 
    on an on-going basis. The Secretary shall provide notice of any such 
    reassignment to the Committee on Banking, Housing, and Urban Affairs of the 
    Senate and the Committee on International Relations of the House of 
    Representatives.
    (4) EFFECTIVE DATE OF TIER ASSIGNMENT- An assignment of a country to a 
    particular tier shall take effect on the date on which notice of the 
    assignment is published in the Federal Register.
  (b) TIERS- 
    (1) IN GENERAL- The President shall establish a country tiering system 
    consisting of not less than 3 tiers for purposes of this section.
    (2) RANGE- Countries that represent the lowest risk of diversion or misuse 
    of an item on the National Security Control List shall be assigned to the 
    lowest tier. Countries that represent the highest risk of diversion or 
    misuse of an item on the National Security Control List shall be assigned to 
    the highest tier.
    (3) OTHER COUNTRIES- Countries that fall between the lowest and highest risk 
    to the national security interest of the United States with respect to the 
    risk of diversion or misuse of an item on the National Security Control List 
    shall be assigned to a tier other than the lowest or highest tier, based on 
    the assessments required under subsection (c).
    (4) NONDELEGATION- The President may not delegate the authorities he has 
    under subsection (a) and this subsection.
  (c) ASSESSMENTS- The President shall make an assessment of each country in 
  assigning a country tier taking into consideration risk factors that include 
  the following:
    (1) The present and potential relationship of the country with the United 
    States.
    (2) The present and potential relationship of the country with countries 
    friendly to the United States and with countries hostile to the United 
    States.
    (3) The country's goals, capabilities, and intentions regarding chemical, 
    biological, and nuclear weapons and the country's membership in or adherence 
    to, and level of compliance with, relevant multilateral export control 
    regimes.
    (4) The country's capabilities regarding missile systems and the country's 
    membership in or adherence to, and level of compliance with, relevant 
    multilateral export control regimes.
    (5) Whether the country, if a NATO or major non-NATO ally with whom the 
    United States has entered into a free trade agreement as of January 1, 1986, 
    controls exports in accordance with the criteria and standards of a 
    multilateral export control regime.
    (6) The country's other military capabilities and the potential threat posed 
    by the country to the United States or its allies.
    (7) The effectiveness of the country's export control system.
    (8) The level of the country's cooperation with United States export control 
    enforcement and other efforts.
    (9) The risk of export diversion by the country to a higher tier country.
    (10) The designation of the country as a country supporting international 
    terrorism under section 310.
    (11) The extent to which the country, pursuant to its laws, regulations, and 
    practices, controls items consistent with the criteria and standards of 
    relevant multilateral export control regimes.
  (d) TIER APPLICATION- The country tiering system shall be used in the 
  determination of license requirements pursuant to section 201(a)(1).
SEC. 204. INCORPORATED PARTS AND COMPONENTS.
  (a) EXPORT OF ITEMS CONTAINING CONTROLLED PARTS AND COMPONENTS- Controls may 
  not be imposed under this title or any other provision of law on an item 
  solely because the item contains parts or components subject to export 
  controls under this title, if the parts or components--
    (1) are essential to the functioning of the item,
    (2) are customarily included in sales of the item in countries other than 
    controlled countries, and
    (3) comprise 25 percent or less of the total value of the item,
  unless the item itself, if exported, would by virtue of the functional 
  characteristics of the item as a whole make a significant contribution to the 
  military or proliferation potential of a controlled country or end user which 
  would prove detrimental to the national security of the United States, or 
  unless failure to control the item would be contrary to the provisions of 
  section 201(c), section 201(d), or section 309 of this Act.
  (b) REEXPORTS OF FOREIGN-MADE ITEMS INCORPORATING UNITED STATES CONTROLLED 
  CONTENT- 
    (1) IN GENERAL- No authority or permission may be required under this title 
    to reexport to a country an item that is produced in a country other than 
    the United States and incorporates parts or components that are subject to 
    the jurisdiction of the United States, if the value of the controlled United 
    States content of the item produced in such other country is 25 percent or 
    less of the total value of the item; except that in the case of reexports of 
    an item to a country designated as a country supporting international 
    terrorism pursuant to section 310, controls may be maintained if the value 
    of the controlled United States content is more than 10 percent of the total 
    value of the item.
    (2) DEFINITION OF CONTROLLED UNITED STATES CONTENT- For purposes of this 
    paragraph, the term `controlled United States content' of an item means 
    those parts or components that--
      (A) are subject to the jurisdiction of the United States;
      (B) are incorporated into the item; and
      (C) would, at the time of the reexport, require a license under this title 
      if exported from the United States to a country to which the item is to be 
      reexported.
SEC. 205. PETITION PROCESS FOR MODIFYING EXPORT STATUS.
  (a) ESTABLISHMENT- The Secretary shall establish a process for interested 
  persons to petition the Secretary to change the status of an item on the 
  National Security Control List.
  (b) EVALUATIONS AND DETERMINATIONS- Evaluations and determinations with 
  respect to a petition filed pursuant to this section shall be made in 
  accordance with section 202.
SEC. 206. CONGRESSIONAL REVIEW AND REPORT.
  (a) NOTIFICATION- The Secretary shall inform the appropriate committees of 
  Congress at least 30 days before any change to the export status of an item on 
  the National Security Control List (other than the Military Critical 
  Technologies List) is made.
  (b) REPORT- Upon the request of either the chairman or ranking member of any 
  of the committees of Congress notified of a proposed change under subsection 
  (a), the Secretary shall promptly provide to that committee a report that 
  contains a clearly stated description of the proposed change, and the reasons 
  why the change is justified and necessary. The report shall include in its 
  entirety the assessment of the Secretary of Defense under subsection (c). The 
  report may be provided on a classified basis if the Secretary considers it 
  necessary.
  (c) ASSESSMENT- The Secretary of Defense, in consultation with the Secretary 
  of State and the Director of Central Intelligence, shall submit to the 
  Secretary an assessment of the following with respect to a proposed change on 
  which a report is requested under subsection (b):
    (1) The impact that the proposed change will have on the national security 
    of the United States with respect to the purposes of export controls set 
    forth in section 201(b).
    (2) The impact the proposed change will have on the United States Armed 
    Forces and the intelligence community.
    (3) The cumulative effects that the proposed change could have on the 
    national security of the United States, as well as the military potential, 
    proliferation activities, and support for international terrorism by 
    countries that may receive the exported items with respect to which the 
    proposed change would apply.
  (d) APPROPRIATE COMMITTEES- For purposes of this section, the appropriate 
  committees of Congress are the Committee on Armed Services and the Committee 
  on International Relations of the House of Representatives, and the Committee 
  on Foreign Relations, the Committee on Armed Services, and the Committee on 
  Banking, Housing, and Urban Affairs of the Senate.
Subtitle B--Foreign Availability and Mass-Market Status
SEC. 211. DETERMINATION OF FOREIGN AVAILABILITY AND MASS-MARKET STATUS.
  (a) IN GENERAL- The Secretary shall--
    (1) on a continuing basis,
    (2) upon a request from the Office of Technology Evaluation established 
    pursuant to section 214, or
    (3) upon receipt of a petition filed by an interested person,
  review [Struck out->] and determine [<-Struck out] the foreign availability 
  and the mass-market status of any item the export of which is controlled under 
  this title.
  (b) PETITION AND CONSULTATION- 
    (1) IN GENERAL- The Secretary shall establish a process for an interested 
    person to petition the Secretary for a determination that an item has a 
    foreign availability or mass-market status. In evaluating and making a 
    determination with respect to a petition filed under this section, the 
    Secretary shall consult with the Secretary of Defense, the Secretary of 
    State, and the heads of other appropriate Government agencies and with the 
    Office of Technology Evaluation.
    (2) TIME FOR MAKING DETERMINATION- The Secretary, with the concurrence of 
    the Secretary of Defense and the Secretary of State, shall, within 6 months 
    after receiving a petition described in subsection (a)(3), determine in 
    accordance with subsection (c) whether the item that is the subject of the 
    petition has foreign availability or mass-market status and shall notify the 
    petitioner of the determination.
  [Struck out->] (c) [Struck out->] RESULT OF DETERMINATION [<-Struck out] 
  [Struck out->] - In any case in which the Secretary determines, [<-Struck out] 
  [<-Struck out]
  (c) Determination- In any case in which the Secretary, with the concurrence of 
  the Secretary of Defense and the Secretary of State, determines, in accordance 
  with procedures and criteria which the Secretary shall by regulation 
  establish, that an item described in subsection (a) has--
    (1) a foreign availability status, or
    (2) a mass-market status,
  the Secretary shall notify the President (and other appropriate departments 
  and agencies) and publish the notice of the determination in the Federal 
  Register. The Secretary's determination shall become final 30 days after the 
  date the notice is published, the item shall be removed from the National 
  Security Control List, and a license or other authorization shall not be 
  required under this title with respect to the item, unless the President makes 
  a determination described in section 212 or 213, or takes action under section 
  309, with respect to the item in that 30-day period.
  (d) CRITERIA FOR DETERMINING FOREIGN AVAILABILITY AND MASS-MARKET STATUS- 
    [Struck out->] (1) FOREIGN AVAILABILITY STATUS- The Secretary shall 
    determine that an item has foreign availability status under this subtitle, 
    if the item (or a substantially identical or directly competitive item)-- 
    [<-Struck out]
      [Struck out->] (A) is available to controlled countries from sources 
      outside the United States, including countries that participate with the 
      United States in multilateral export controls; [<-Struck out]
      [Struck out->] (B) can be acquired at a price that is not excessive when 
      compared to the price at which a controlled country could acquire such 
      item from sources within the United States in the absence of export 
      controls; and [<-Struck out]
      [Struck out->] (C) is available in sufficient quantity so that the 
      requirement of a license or other authorization with respect to the export 
      of such item is or would be ineffective. [<-Struck out]
    (1) FOREIGN AVAILABILITY STATUS- An item has foreign availability status 
    under this subtitle only if the item--
      (A) is available to controlled countries without restriction from sources 
      outside the United States, more than one of which are countries that 
      participate with the United States in multilateral export control regimes 
      as members; and
      (B) is available in significant quantity and comparable quality to the 
      item produced in the United States so that the requirement of a license or 
      other authorization with
respect to the export of the item is or would be ineffective. 
    [Struck out->] (2) MASS-MARKET STATUS- [<-Struck out]
      [Struck out->] (A) IN GENERAL- In determining whether an item has 
      mass-market status under this subtitle, the Secretary shall consider the 
      following criteria with respect to the item (or a substantially identical 
      or directly competitive item): [<-Struck out]
        [Struck out->] (i) The production and availability for sale in a large 
        volume to multiple potential purchasers. [<-Struck out]
        [Struck out->] (ii) The widespread distribution through normal 
        commercial channels, such as retail stores, direct marketing catalogues, 
        electronic commerce, and other channels. [<-Struck out]
        [Struck out->] (iii) The conduciveness to shipment and delivery by 
        generally accepted commercial means of transport. [<-Struck out]
        [Struck out->] (iv) The use for the item's normal intended purpose 
        without substantial and specialized service provided by the 
        manufacturer, distributor, or other third party. [<-Struck out]
      [Struck out->] (B) DETERMINATION BY SECRETARY- If the Secretary finds that 
      the item (or a substantially identical or directly competitive item) meets 
      the criteria set forth in subparagraph (A), the Secretary shall determine 
      that the item has mass-market status. [<-Struck out]
    (2) MASS-MARKET STATUS- An item has mass-market status under this subtitle 
    only if the following criteria are met:
      (A) The item is produced in a large volume and is available for sale to 
      multiple potential purchasers.
      (B) The item is widely distributed through normal commercial channels, 
      such as retail stores, direct marketing catalogues, electronic commerce, 
      and other channels.
      (C) The item is conducive to shipment and delivery by generally accepted 
      commercial means of transport.
      (D) The item can be used for its normal intended purpose without 
      substantial and specialized service provided by the manufacturer, 
      distributor, or other third party.
    [Struck out->] (3) SPECIAL RULES- For purposes of this subtitle-- [<-Struck 
    out]
      [Struck out->] (A) SUBSTANTIALLY IDENTICAL ITEM- The determination of 
      whether an item in relation to another item is a substantially identical 
      item shall include a fair assessment of end uses, and the properties, 
      nature, and quality of the item. [<-Struck out]
      [Struck out->] (B) DIRECTLY COMPETITIVE ITEM- The determination of whether 
      an item in relation to another item is a directly competitive item shall 
      include a fair assessment of whether the item, although not substantially 
      identical in its intrinsic or inherent characteristics, is substantially 
      equivalent for commercial purposes and may be adapted for substantially 
      the same uses. [<-Struck out]
      [Struck out->] (C) EXCEPTION- An item is not a directly competitive item 
      or a substantially identical item in relation to a controlled item if the 
      item is not of comparable quality to the controlled item with respect to 
      characteristics that resulted in the export of the item being controlled. 
      [<-Struck out]
SEC. 212. PRESIDENTIAL SET-ASIDE OF FOREIGN AVAILABILITY STATUS DETERMINATION.
  (a) CRITERIA FOR PRESIDENTIAL SET-ASIDE- 
    (1) GENERAL CRITERIA- 
      (A) IN GENERAL- If the President determines that--
        (i) decontrolling or failing to control an item constitutes a threat to 
        the national security of the United States, and export controls on the 
        item would advance the national security interests of the United States,
        (ii) there is a high probability that the foreign availability of an 
        item will be eliminated through international negotiations within a 
        reasonable period of time taking into account the characteristics of the 
        item, or
        (iii) United States controls on the item have been imposed under section 
        309,
      the President may set aside the Secretary's determination of foreign 
      availability status with respect to the item.
      (B) NONDELEGATION- The President may not delegate the authority provided 
      for in this paragraph.
    (2) REPORT TO CONGRESS- The President shall promptly--
      (A) report any set-aside determination described in paragraph (1), along 
      with the specific reasons for the determination, to the Committee on 
      Banking, Housing, and Urban Affairs of the Senate and the Committee on 
      International Relations of the House of Representatives; and
      (B) publish the determination in the Federal Register.
  (b) PRESIDENTIAL ACTION IN CASE OF SET-ASIDE- 
    (1) IN GENERAL- 
      (A) NEGOTIATIONS- In any case in which export controls are maintained on 
      an item because the President has made a determination under subsection 
      (a), the President shall actively pursue negotiations with the governments 
      of the appropriate foreign countries for the purpose of eliminating such 
      availability.
      (B) REPORT TO CONGRESS- Not later than the date the President begins 
      negotiations, the President shall notify in writing the Committee on 
      Banking, Housing, and Urban Affairs of the Senate and the Committee on 
      International Relations of the House of Representatives that the President 
      has begun such negotiations and why the President believes it is important 
      to the national security that export controls on the item involved be 
      maintained.
    (2) PERIODIC REVIEW OF DETERMINATION- The President shall review a 
    determination described in subsection (a) at least every 6 months. Promptly 
    after each review is completed, the Secretary shall submit to the committees 
    of Congress referred to in paragraph (1)(B) a report on the results of the 
    review, together with the status of international negotiations to eliminate 
    the foreign availability of the item.
    (3) EXPIRATION OF PRESIDENTIAL SET-ASIDE- A determination by the President 
    described in subsection (a)(1)(A) (i) or (ii) shall cease to apply with 
    respect to an item on the earlier of--
      (A) the date that is 6 months after the date on which the determination is 
      made under subsection (a), if the President has not commenced 
      international negotiations to eliminate the foreign availability of the 
      item within that 6-month period;
      (B) the date on which the negotiations described in paragraph (1) have 
      terminated without achieving an agreement to eliminate foreign 
      availability;
      (C) the date on which the President determines that there is not a high 
      probability of
eliminating foreign availability of the item through negotiation; or 
      (D) the date that is 18 months after the date on which the determination 
      described in subsection (a)(1)(A) (i) or (ii) is made if the President has 
      been unable to achieve an agreement to eliminate foreign availability 
      within that 18-month period.
    (4) ACTION ON EXPIRATION OF PRESIDENTIAL SET-ASIDE- Upon the expiration of a 
    Presidential set-aside under paragraph (3) with respect to an item, the 
    Secretary shall not require a license or other authorization to export the 
    item.
SEC. 213. PRESIDENTIAL SET-ASIDE OF MASS-MARKET STATUS DETERMINATION.
  (a) CRITERIA FOR PRESIDENTIAL SET-ASIDE- 
    (1) GENERAL CRITERIA- If the President determines that--
      (A)(i) decontrolling or failing to control an item constitutes a serious 
      threat to the national security of the United States, and
      (ii) export controls on the item would advance the national security 
      interests of the United States, or
      (B) United States controls on the item have been imposed under section 
309,
    the President may set aside the Secretary's determination of mass-market 
    status with respect to the item.
    (2) NONDELEGATION- The President may not delegate the authority provided for 
    in this subsection.
  (b) PRESIDENTIAL ACTION IN CASE OF SET-ASIDE- 
    (1) IN GENERAL- In any case in which export controls are maintained on an 
    item because the President has made a determination under subsection (a), 
    the President shall promptly report the determination, along with the 
    specific reasons for the determination, to the Committee on Banking, 
    Housing, and Urban Affairs of the Senate and the Committee on International 
    Relations of the House of Representatives, and shall publish notice of the 
    determination in the Federal Register not later than 30 days after the 
    Secretary publishes notice of the Secretary's determination that an item has 
    mass-market status.
    (2) PERIODIC REVIEW OF DETERMINATION- The President shall review a 
    determination made under subsection (a) at least every 6 months. Promptly 
    after each review is completed, the Secretary shall submit a report on the 
    results of the review to the Committee on Banking, Housing, and Urban 
    Affairs of the Senate and the Committee on International Relations of the 
    House of Representatives.
SEC. 214. OFFICE OF TECHNOLOGY EVALUATION.
  (a) IN GENERAL- 
    (1) ESTABLISHMENT OF OFFICE- The Secretary shall establish in the Department 
    of Commerce an Office of Technology Evaluation (in this section referred to 
    as the `Office'), which shall be under the direction of the Secretary. The 
    Office shall be responsible for gathering, coordinating, and analyzing all 
    the necessary information in order for the Secretary to make determinations 
    of foreign availability and mass-market status under this Act.
    (2) STAFF- 
      (A) IN GENERAL- The Secretary shall ensure that the Office include persons 
      to carry out the responsibilities set forth in subsection (b) of this 
      section that have training, expertise, and experience in--
        (i) economic analysis;
        (ii) the defense industrial base;
        (iii) technological developments; and
        (iv) national security and foreign policy export controls.
      (B) DETAILEES- In addition to employees of the Department of Commerce, the 
      Secretary may accept on nonreimbursable detail to the Office, employees of 
      the Departments of Defense, State, and Energy and other departments and 
      agencies as appropriate.
  (b) RESPONSIBILITIES- The Office shall be responsible for--
    (1) conducting foreign availability assessments to determine whether a 
    controlled item is available to controlled countries and whether requiring a 
    license, or denial of a license for the export of such item, is or would be 
    ineffective;
    (2) conducting mass-market assessments to determine whether a controlled 
    item is available to controlled countries because of the mass-market status 
    of the item;
    (3) monitoring and evaluating worldwide technological developments in 
    industry sectors critical to the national security interests of the United 
    States to determine foreign availability and mass-market status of 
    controlled items;
    (4) monitoring and evaluating multilateral export control regimes and 
    foreign government export control policies and practices that affect the 
    national security interests of the United States;
    (5) conducting assessments of United States industrial sectors critical to 
    the United States defense industrial base and how the sectors are affected 
    by technological developments, technology transfers, and foreign 
    competition; and
    (6) conducting assessments of the impact of United States export control 
    policies on--
      (A) United States industrial sectors critical to the national security 
      interests of the United States; and
      (B) the United States economy in general.
  (c) REPORTS TO CONGRESS- The Secretary shall make available to the Committee 
  on International Relations of the House of Representatives and the Committee 
  on Banking, Housing, and Urban Affairs of the Senate as part of the 
  Secretary's annual report required under section 701 information on the 
  operations of the Office, and on improvements in the Government's ability to 
  assess foreign availability and mass-market status, during the fiscal year 
  preceding the report, including information on the training of personnel, and 
  the use of Commercial Service Officers of the United States and Foreign 
  Commercial Service to assist in making determinations. The information shall 
  also include a description of determinations made under this Act during the 
  preceding fiscal year that foreign availability or mass-market status did or 
  did not exist (as the case may be), together with an explanation of the 
  determinations.
  (d) SHARING OF INFORMATION- Each department or agency of the United States, 
  including any intelligence agency, and all contractors with any such 
  department or agency, shall, consistent with the need to protect intelligence 
  sources and methods, furnish information to the Office concerning foreign 
  availability and the mass-market status of items subject to export controls 
  under this Act.
Subtitle C--High Performance Computers
SEC. 221. EXPORTS OF HIGH PERFORMANCE COMPUTING TECHNOLOGY.
  (a) JOINT PROCESS- The Secretary, the Secretary of State, the Secretary of 
  Defense, and the Secretary of Energy shall jointly develop and implement a 
  process that would permit the United States to monitor effectively the export 
  of high performance computing technology to countries of proliferation 
  concern. Such a process shall include, at a minimum, the following:
    (1) A definition of high performance computing technology and any associated 
    performance metrics.
    (2) The ability to assess the proposed export of high performance computing 
    technology prior to its export and possibly require a license for such 
    export to end users or end uses of concern.
    (3) The use of post-shipment verifications and other procedures to monitor 
    end uses and end users in order to ensure that exports of high performance 
    computing technology are not being used by countries of proliferation 
    concern in a manner detrimental to the national security of the United 
    States.
  (b) REPORT TO CONGRESS- The President shall submit to the Congress, not later 
  than 180 days after the date of the enactment of this Act, a report describing 
  the process developed under subsection (a).
  (c) IMPLEMENTATION- The process developed under subsection (a) shall first 
  become effective 60 days after the end of the 180-day period described in 
  subsection (b).
  (d) REPEAL OF CERTAIN EXPORT CONTROLS- Subtitle B of title XII of division A 
  of the National Defense Authorization Act for Fiscal Year 1998 (50 U.S.C. App. 
  2404 note) is repealed, effective 60 days after the end of the 180-day period 
  described in subsection (b).
  (e) INCLUSION OF ITEMS IN DEFINITION- The definition of `high performance 
  computing technology' under subsection (a)(1) shall include computer hardware, 
  software, technical data, and source codes.
  (f) END USE REVIEW-
    (1) NOTIFICATION- Any United States person that exports a computer with a 
    dollar value of over $250,000, or any equivalent metric developed pursuant 
    to subsection (a), shall, not less than 10 days before the item is exported, 
    provide to the Secretary a 1-page notification described in paragraph (2) 
    with respect to the export.
    (2) CONTENT- A notification under paragraph (1) with respect to a proposed 
    export shall include the following:
      (A) A detailed description of the item to be exported.
      (B) Performance measures of the item to be exported.
      (C) The quantity and dollar value of the item to be exported.
      (D) The name, address, and telephone number of the end user of the 
      exported item.
      (E) The end uses of the exported item.
    (3) INTERAGENCY REVIEW- Within 24 hours after receiving a notification under 
    paragraph (1), the Secretary shall refer the notification to the Director of 
    Central Intelligence (in this subsection referred to as the `Director') and 
    the Secretary of Defense. The Director and the Secretary of Defense shall 
    review the notification to determine whether the end user or any end use of 
    the item to be exported--
      (A) could threaten the national security of the United States;
      (B) could contribute to the proliferation of weapons of mass destruction 
      or the means to deliver them; or
      (C) could assist foreign terrorist organizations in performing acts of 
      international terrorism.
    (4) DETERMINATION- Within 7 calendar days after receiving a notification 
    under paragraph (3), the Director and the Secretary of Defense shall inform 
    the Secretary of any determinations they made under paragraph (3) with 
    respect to the notification. If the Director or the Secretary of Defense 
    determines that a proposed export meets any of the criteria set forth in 
    subparagraphs (A), (B), and (C) of paragraph (3), the Secretary shall 
    immediately so notify the United States person exporting the item.
    (5) REPORT- The Secretary, with the concurrence of the Secretary of Defense 
    and the Director, shall report annually to the Congress on the 
    implementation of this subsection. The report shall contain the number and 
    type of determinations made by the Director and the Secretary of Defense 
    under paragraph (3).
    (6) EFFECTIVE DATE- This subsection shall take effect 90 days after the date 
    of the enactment of this Act.
TITLE III--FOREIGN POLICY EXPORT CONTROLS
SEC. 301. AUTHORITY FOR FOREIGN POLICY EXPORT CONTROLS.
  (a) AUTHORITY- 
    (1) IN GENERAL- In order to carry out the purposes set forth in subsection 
    (b), the President may, in accordance with the provisions of this Act, 
    prohibit, curtail, or require a license, other authorization, recordkeeping, 
    or reporting for, the export of any item subject to the jurisdiction of the 
    United States or exported by any person subject to the jurisdiction of the 
    United States.
    (2) EXERCISE OF AUTHORITY- The authority contained in this subsection shall 
    be exercised by the Secretary, in consultation with the Secretary of State 
    and such other departments and agencies as the Secretary considers 
    appropriate.
  (b) PURPOSES- The purposes of foreign policy export controls are the 
following:
    (1) To promote the foreign policy objectives of the United States, 
    consistent with the purposes of this section and the provisions of this Act.
    (2) To promote international peace, stability, and respect for fundamental 
    human rights.
    (3) To use export controls to deter and punish acts of international 
    terrorism and to encourage other countries to take immediate steps to 
    prevent the use of their territories or resources to aid, encourage, or give 
    sanctuary to those persons involved in directing, supporting, or 
    participating in acts of international terrorism.
    (4) To control the export of test articles intended for clinical 
    investigation involving human subjects so as to foster public health and 
    safety and to prevent injury to the foreign policy of the United States as 
    well as to the credibility of the United States as a responsible trading 
    partner.
    (5) To control the export of goods and substances which are banned, severely 
    restricted, highly regulated, or never regulated for use in the United 
    States in order to foster public health and safety and to prevent injury to 
    the foreign policy of the United States as well as to the credibility of the 
    United States as a responsible trading partner.
  (c) FOREIGN PRODUCTS- No authority or permission may be required under this 
  title to reexport to a country an item that is produced in a country other 
  than the United States and incorporates parts or components that are subject 
  to the jurisdiction of the United States, except that in the case of reexports 
  of an item to a country designated as a country supporting international 
  terrorism pursuant to section 310, controls may be maintained if the value of 
  the controlled United States content is more than 10 percent of the value of 
  the item.
  (d) CONTRACT SANCTITY- 
    (1) IN GENERAL- The President may not prohibit the export of any item under 
    this title if that item is to be exported--
      (A) in performance of a binding contract, agreement, or other contractual 
      commitment entered into before the earlier of the date on which the 
      President publishes in the Federal Register pursuant to section 302(a) a 
      notice of intent to impose or implement an export control on that item or 
      the date on which the President reports to Congress the President's 
      intention to impose an export control on that item under this title; or
      (B) under a license or other authorization issued under this Act before 
      the earlier of the date on which the export control is imposed, the date 
      on which the President publishes in the Federal Register pursuant to 
      section 302(a) a notice of intent to impose or implement an export control 
      on that item, or the date on which the President reports to Congress the 
      President's intention to impose an export control on that item under this 
      title.
    (2) EXCEPTION- The prohibition contained in paragraph (1) shall not apply in 
    any case in which the President determines and certifies to the Committee on 
    Banking, Housing, and Urban Affairs of the Senate and the Committee on 
    International Relations of the House of Representatives that--
      (A) there is a serious threat to a foreign policy interest of the United 
      States;
      (B) the prohibition of exports under each binding contract, agreement, 
      commitment, license, or authorization will be instrumental in remedying 
      the situation posing the serious threat; and
      (C) the export controls will be in effect only as long as the serious 
      threat exists.
SEC. 302. PROCEDURES FOR IMPOSING CONTROLS.
  (a) NOTICE- 
    (1) INTENT TO IMPOSE FOREIGN POLICY EXPORT CONTROL- Except as provided in 
    section 306, not later than 45 days before imposing or implementing an 
    export control under this title, the President shall publish in the Federal 
    Register--
      (A) a notice of intent to do so; and
      (B) provide for a period of not less than 30 days for any interested 
      person to submit comments on the export control proposed under this title.
    (2) PURPOSES OF NOTICE- The purposes of the notice are--
      (A) to provide an opportunity for the formulation of an effective export 
      control policy under this title that advances United States economic and 
      foreign policy interests; and
      (B) to provide an opportunity for negotiations to achieve the purposes set 
      forth in section 301(b).
  (b) NEGOTIATIONS- During the 45-day period that begins on the date of notice 
  described in subsection (a), the President may negotiate with the government 
  of the foreign country against which the export control is proposed in order 
  to resolve the reasons underlying the proposed export control.
  (c) CONSULTATION- 
    (1) REQUIREMENT- The President shall consult with the Committee on Banking, 
    Housing, and Urban Affairs of the Senate and the Committee on International 
    Relations of the House of Representatives regarding any export control 
    proposed under this title and the efforts to achieve or increase 
    multilateral cooperation on the issues or problems underlying the proposed 
    export control.
    (2) CLASSIFIED CONSULTATION- The consultations described in paragraph (1) 
    may be conducted on a classified basis if the Secretary considers it 
    necessary.
SEC. 303. CRITERIA FOR FOREIGN POLICY EXPORT CONTROLS.
  Each export control imposed by the President under this title shall--
    (1) have clearly stated and specific United States foreign policy 
objectives;
    (2) have objective standards for evaluating the success or failure of the 
    export control;
    (3) include an assessment by the President that--
      (A) the export control is likely to achieve such objectives and the 
      expected time for achieving the objectives; and
      (B) the achievement of the objectives of the export control outweighs any 
      potential costs of the export control to other United States economic, 
      foreign policy, humanitarian, or national security interests;
    (4) be targeted narrowly; and
    (5) seek to minimize any adverse impact on the humanitarian activities of 
    United States and foreign nongovernmental organizations in the country 
    subject to the export control.
SEC. 304. PRESIDENTIAL REPORT BEFORE IMPOSITION OF CONTROL.
  (a) REQUIREMENT- Before imposing an export control under this title, the 
  President shall submit to the Committee on Banking, Housing, and Urban Affairs 
  of the Senate and the Committee on International Relations of the House of 
  Representatives a report on the proposed export control. The report may be 
  provided on a classified basis if the Secretary considers it necessary.
  (b) CONTENT- The report shall contain a description and assessment of each of 
  the criteria described in section 303. In addition, the report shall contain a 
  description and assessment of--
    (1) any diplomatic and other steps that the United States has taken to 
    accomplish the intended objective of the proposed export control;
    (2) unilateral export controls imposed, and other measures taken, by other 
    countries to achieve the intended objective of the proposed export control;
    (3) the likelihood of multilateral adoption of comparable export controls;
    (4) alternative measures to promote the same objectives and the likelihood 
    of their potential success;
    (5) any United States obligations under international trade agreements, 
    treaties, or other international arrangements, with which the proposed 
    export control may conflict;
    (6) the likelihood that the proposed export control could lead to 
    retaliation against United States interests;
    (7) the likely economic impact of the proposed export control on the United 
    States economy, United States international trade and investment, and United 
    States agricultural interests, commercial interests, and employment; and
    (8) whether the objectives of the proposed export control outweighs any 
    likely costs to United States economic, foreign policy, humanitarian, or 
    national security interests, including any potential harm to the United 
    States agricultural and business firms and to the international reputation 
    of the United States as a reliable supplier of goods, services, or 
    technology.
SEC. 305. IMPOSITION OF CONTROLS.
  The President may impose an export control under this title after the 
  submission of the report required under section 304 and publication in the 
  Federal Register of a notice of the imposition of the export control.
SEC. 306. DEFERRAL AUTHORITY.
  (a) AUTHORITY- The President may defer compliance with any requirement 
  contained in section 302(a), 304, or 305 in the case of a proposed export 
  control if--
    (1) the President determines that a deferral of compliance with the 
    requirement is in the national interest of the United States; and
    (2) the requirement is satisfied not later than 60 days after the date on 
    which the export control is imposed under this title.
  (b) TERMINATION OF CONTROL- An export control with respect to which a deferral 
  has been made under subsection (a) shall terminate 60 days after the date the 
  export control is imposed unless all requirements have been satisfied before 
  the expiration of that 60-day period.
SEC. 307. REVIEW, RENEWAL, AND TERMINATION.
  (a) RENEWAL AND TERMINATION- 
    (1) IN GENERAL- Any export control imposed under this title shall terminate 
    on March 31 of each renewal year unless the President renews the export 
    control on or before such date. For purposes of this section, the term 
    `renewal year' means 2003 and every 2 years thereafter.
    (2) EXCEPTION- This section shall not apply to an export control imposed 
    under this title that--
      (A) is required by law;
      (B) is targeted against any country designated as a country supporting 
      international terrorism pursuant to section 310; or
      (C) has been in effect for less than 1 year as of February 1 of a renewal 
      year.
  (b) REVIEW- 
    (1) IN GENERAL- Not later than February 1 of each renewal year, the 
    President shall review all export controls in effect under this title.
    (2) CONSULTATION- 
      (A) REQUIREMENT- Before completing a review under paragraph (1), the 
      President shall consult with the Committee on Banking, Housing, and Urban 
      Affairs of the Senate and the Committee on International Relations of the 
      House of Representative regarding each export control that is being 
      reviewed.
      (B) CLASSIFIED CONSULTATION- The consultations may be conducted on a 
      classified basis if the Secretary considers it necessary.
    (3) PUBLIC COMMENT- In conducting the review of each export control under 
    paragraph (1), the President shall provide a period of not less than 30 days 
    for any interested person to submit comments on renewal of the export 
    control. The President shall publish notice of the opportunity for public 
    comment in the Federal Register not less than 45 days before the review is 
    required to be completed.
  (c) REPORT TO CONGRESS- 
    (1) REQUIREMENT- Before renewing an export control imposed under this title, 
    the President shall submit to the committees of Congress referred to in 
    subsection (b)(2)(A) a report on each export control that the President 
    intends to renew.
    (2) FORM AND CONTENT OF REPORT- The report may be provided on a classified 
    basis if the Secretary considers it necessary. Each report shall contain the 
    following:
      (A) A clearly stated explanation of the specific United States foreign 
      policy objective that the existing export control was intended to achieve.
      (B) An assessment of--
        (i) the extent to which the existing export control achieved its 
        objectives before renewal based on the objective criteria established 
        for evaluating the export control; and
        (ii) the reasons why the existing export control has failed to fully 
        achieve its objectives and, if renewed, how the export control will 
        achieve that objective before the next renewal year.
      (C) An updated description and assessment of--
        (i) each of the criteria described in section 303, and
        (ii) each matter required to be reported under section 304(b) (1) 
        through (8).
    (3) RENEWAL OF EXPORT CONTROL- The President may renew an export control 
    under this title after submission of the report described in paragraph (2) 
    and publication of notice of renewal in the Federal Register.
SEC. 308. TERMINATION OF CONTROLS UNDER THIS TITLE.
  (a) IN GENERAL- Notwithstanding any other provision of law, the President--
    (1) shall terminate any export control imposed under this title if the 
    President determines that the control has substantially achieved the 
    objective for which it was imposed; and
    (2) may terminate at any time any export control imposed under this title 
    that is not required by law.
  (b) EXCEPTION- Paragraphs (1) and (2) of subsection (a) do not apply to any 
  export control imposed pursuant to section 310.
  (c) EFFECTIVE DATE OF TERMINATION- The termination of an export control 
  pursuant to this section shall take effect 30 days after the President has 
  consulted with the Committee on International Relations of the House of 
  Representatives and the Committee on Foreign Relations of the Senate on the 
  foreign policy implications of such termination. Notice of the termination 
  shall be published in the Federal Register.
SEC. 309. COMPLIANCE WITH INTERNATIONAL OBLIGATIONS.
  Notwithstanding any other provision of this Act setting forth limitations on 
  authority to control exports [Struck out->] and except as provided in section 
  304, the President may [<-Struck out] , the President shall impose controls on 
  exports to a particular country or countries--
    (1) of items listed on the control list of a multilateral export control 
    regime; or
    (2) in order to fulfill obligations or commitments of the United States 
    under resolutions of the United Nations and under treaties, or other 
    international agreements and arrangements, to which the United States is a 
    party.
SEC. 310. DESIGNATION OF COUNTRIES SUPPORTING INTERNATIONAL TERRORISM.
  (a) LICENSE REQUIRED- Notwithstanding any other provision of this Act setting 
  forth limitations on the authority to control exports, a license shall be 
  required for the export of any item to a country if the Secretary of State has 
  determined that--
    (1) that the government of such country has repeatedly provided support for 
    acts of international terrorism; and
    (2) in consultation with the Secretary of Defense, that the export of the 
    item could make
a significant contribution to the military potential of such country, including 
its military logistics capability, or could enhance the ability of such country 
to support acts of international terrorism. 
  (b) NOTIFICATION- The Secretary and the Secretary of State shall notify the 
  Committee on International Relations of the House of Representatives and the 
  Committee on Banking, Housing, and Urban Affairs and the Committee on Foreign 
  Relations of the Senate at least 30 days before issuing any license required 
  by subsection (a).
  (c) DETERMINATIONS REGARDING REPEATED SUPPORT- Each determination of the 
  Secretary of State under subsection (a)(1), including each determination in 
  effect on the date of the enactment of the Antiterrorism and Arms Export 
  Amendments Act of 1989, shall be published in the Federal Register.
  (d) LIMITATIONS ON RESCINDING DETERMINATION- A determination made by the 
  Secretary of State under subsection (a)(1) may not be rescinded unless the 
  President submits to the Speaker of the House of Representatives and the 
  Chairman of the Committee on Banking, Housing, and Urban Affairs and the 
  Chairman of the Committee on Foreign Relations of the Senate--
    (1) before the proposed rescission would take effect, a report certifying 
    that--
      (A) there has been a fundamental change in the leadership and policies of 
      the government of the country concerned;
      (B) that government is not supporting acts of international terrorism; and
      (C) that government has provided assurances that it will not support acts 
      of international terrorism in the future; or
    (2) at least 45 days before the proposed rescission would take effect, a 
    report justifying the rescission and certifying that--
      (A) the government concerned has not provided any support for 
      international terrorism during the preceding 6-month period; and
      (B) the government concerned has provided assurances that it will not 
      support acts of international terrorism in the future.
  (e) INFORMATION TO BE INCLUDED IN NOTIFICATION- The Secretary and the 
  Secretary of State shall include in the notification required by subsection 
  (b)--
    (1) a detailed description of the item to be offered, including a brief 
    description of the capabilities of any item for which a license to export is 
    sought;
    (2) the reasons why the foreign country or international organization to 
    which the export or transfer is proposed to be made needs the item which is 
    the subject of such export or transfer and a description of the manner in 
    which such country or organization intends to use the item;
    (3) the reasons why the proposed export or transfer is in the national 
    interest of the United States;
    (4) an analysis of the impact of the proposed export or transfer on the 
    military capabilities of the foreign country or international organization 
    to which such export or transfer would be made;
    (5) an analysis of the manner in which the proposed export would affect the 
    relative military strengths of countries in the region to which the item 
    which is the subject of such export would be delivered and whether other 
    countries in the region have comparable kinds and amounts of the item; and
    (6) an analysis of the impact of the proposed export or transfer on the 
    United States relations with the countries in the region to which the item 
    which is the subject of such export would be delivered.
SEC. 311. CRIME CONTROL INSTRUMENTS.
  (a) IN GENERAL- Crime control and detection instruments and equipment shall 
  not be approved for export by the Secretary except pursuant to an individual 
  export license.
  (b) IMPLEMENTATION- Notwithstanding any other provision of this Act--
    (1) any determination by the Secretary of what goods or technology shall be 
    included on the list established pursuant to this subsection as a result of 
    the export restrictions imposed by this section shall be made with the 
    concurrence of the Secretary of State; and
    (2) any determination by the Secretary to approve or deny an export license 
    application to export crime control or detection instruments or equipment 
    shall be made in concurrence with the recommendations of the Secretary of 
    State submitted to the Secretary with respect to the application pursuant to 
    section 401 of this Act.
  (c) LIMITATION- 
    (1) IN GENERAL- Notwithstanding subsection (b), the Secretary shall not 
    approve the export to a country of crime control and detection instruments 
    and equipment especially susceptible to abuse as implements of torture if 
    the government of such country, or any group supported by or acting on 
    behalf of such government, has repeatedly engaged in acts of torture unless 
    the Secretary, with the concurrence of the Secretary of State, determines 
    that the end user of the instruments or equipment proposed for export has 
    not been engaged in acts of torture.
    (2) LIST- The Secretary shall establish and maintain a list of crime control 
    and detection instruments and equipment especially susceptible to abuse as 
    implements of torture for purposes of paragraph (1), and shall publish such 
    list in the Federal Register.
  (d) EXCEPTION- Subsection (a) shall not apply to exports to countries that are 
  NATO or are major non-NATO allies.
  (e) PROHIBITION- Notwithstanding any other provision of this section, 
  including subsection (d), the export to any country of leg irons, saps, 
  blackjacks, electroshock stun belts, thumb cuffs, and items specially designed 
  as implements of torture, as determined by the Secretary, including components 
  produced for incorporation into these items and the technology used for the 
  development or production of these items, shall be prohibited.
  (f) DEFINITION- For purposes of this section, the term `acts of torture' means 
  acts committed by a person acting under the color of law that are specifically 
  intended to inflict severe physical or mental pain or suffering (other than 
  pain or suffering incidental to lawful sanctions) upon another person within 
  the custody or physical control of the person performing the acts.
SEC. 312. MEASURES TO PROTECT THE PUBLIC HEALTH.
  (a) IN GENERAL- In order to carry out the policy set forth in paragraph (4) of 
  section 301(b), test articles intended for clinical investigations shall be 
  approved for export by the President only pursuant to an export license.
  (b) CRITERIA FOR EXPORT LICENSE- In addition to the criteria set forth in 
  paragraph (4) of section 401(a), the President shall require, as a 
  prerequisite for approval of an export license for a test article required by 
  subsection (a) of this section, that an applicant for such license--
    (1) identify each clinical investigation for which the test article is 
    intended; and
    (2) submit proof that each of the protocols for every clinical investigation 
    identified under paragraph (1) has been reviewed by an institutional review 
    board and met the same standards for the protection of the rights and 
    welfare of human subjects as would be required for IRB approval of the 
    protocol if the protocol were for a clinical investigation of such test 
    article pursuant to the Federal Food, Drug, and Cosmetic Act.
  (c) REPORTING REQUIREMENT- Not later than one year after the date of enactment 
  of this Act, and annually
thereafter, the President shall prepare and submit to the appropriate 
congressional committees a report regarding the approval of export licenses as 
required by subsection (a). Such report shall include-- 
    (1) the names of the applicants for such export licenses;
    (2) the names of approved applicants for such export licenses; and
    (3) the destination country or countries for each application for such 
    export licenses.
  (d) EXCEPTION- The provisions of this section shall not apply if the 
  destination country is a full member of the Europen Union, a full member of 
  the European Free Trade Association, Canada, Japan, Australia, Israel, or New 
  Zealand.
  (e) DEFINITIONS- In this section:
    (1) APPLICATION FOR RESEARCH OR MARKETING PERMIT- The term `application for 
    research or marketing permit' has the meaning given that term in section 
    56.102(b) of title 21, Code of Federal Regulations, or successor 
regulations.
    (2) APPROPRIATE CONGRESSIONAL COMMITTEES- The term `appropriate 
    congressional committees' means the Committee on International Relations of 
    the House of Representatives and the Committee on Banking, Housing, and 
    Urban Affairs of the Senate.
    (3) CLINICAL INVESTIGATION- The term `clinical investigation' means any 
    experiment that involves a test article and one or more human subjects, and 
    that either must meet the requirements for prior submission to the Food and 
    Drug Administration under section 505(i), 507(d), or 520(g) of the Federal 
    Food, Drug, and Cosmetic Act (21 U.S.C. 355(i), 357(d), or 360j(g)), or need 
    not meet the requirements for prior submission to the Food and Drug 
    Administration under those sections, but the results of which are intended 
    to be later submitted to, or held for inspection by, the Food and Drug 
    Administration as part of an application for a research or marketing permit. 
    The term does not include experiments that must meet the provisions of part 
    58 of title 21, Code of Federal Regulations, or successor regulations, 
    regarding nonclinical laboratory studies.
    (4) DESTINATION COUNTRY- The term `destination country' means the country 
    into which test articles are being exported.
    (5) HUMAN SUBJECT- The term `human subject' means an individual who is or 
    becomes a participant in research, either as a recipient of the test article 
    or as a control. A subject may be either a healthy individual or a patient.
    (6) INSTITUTION- The term `institution' means any public or private entity 
    or agency (including Federal, State, and other agencies), either in the 
    United States or other country.
    (7) INSTITUTIONAL REVIEW BOARD; IRB- The terms `institutional review board' 
    and `IRB' mean any board, committee, or other group formally designated by 
    an institution to review, to approve the initiation of, and to conduct 
    periodic review of, biomedical research involving human subjects. The 
    primary purpose of such review is to assure the protection of the rights and 
    welfare of the human subjects.
    (8) IRB APPROVAL- The term `IRB approval' means the determination of an IRB 
    made pursuant to part 56 of title 21, Code of Federal Regulations, or 
    successor regulations, that a clinical investigation has been reviewed and 
    may be conducted at an institution within the constraints set forth by the 
    IRB and by other institutional and Federal requirements.
    (9) TEST ARTICLE- The term `test article' means any drug for human use, 
    biological product for human use, medical device for human use, human food 
    additive, color additive, electronic product, or any other article that 
    would be subject to regulation under the Federal Food, Drug, and Cosmetic 
    Act if introduced into interstate commerce.
SEC. 313. PROMOTION OF SAFE ENVIRONMENTS.
  (a) IN GENERAL- In order to carry out the policy set forth in paragraph (5) of 
  section 301(b), the President may prohibit the exportation of pesticides or 
  chemicals that the President deems to be a risk to the public health, safety, 
  or environment of the United States or any other country.
  (b) REPORT ON EXPORTS- 
    (1) REPORT- The President shall, by not later than 6 months after the date 
    of enactment of this Act--
      (A) identify all United States persons who export any hazardous pesticide 
      or chemical that is--
        (i) included in the Convention on the Prior Informed Consent Procedure 
        for Certain Hazardous Chemicals and Pesticides in International Trade, 
        or the Convention on Persistent Organic Pollutants; or
        (ii) either banned, severely restricted, highly regulated, or never 
        regulated for use in the United States;
      (B) determine the quantities of each hazardous pesticide and chemical 
      described in subparagraph (A) that each United States person has exported 
      in the 2-year period preceding the date of enactment of this Act; and
      (C) submit to the Committee on International Relations of the House of 
      Representatives and to the Committee on Banking, Housing, and Urban 
      Affairs and the Committee on Foreign Relations of the Senate a 
      comprehensive report on the information described in subparagraphs (A) and 
      (B).
    (2) REGULATORY AND ADMINISTRATIVE FRAMEWORKS- The President shall include in 
    the report under paragraph (1) a detailed description, done in consultation 
    with appropriate departments and agencies, of the regulatory and 
    administrative frameworks in the United States for measuring, monitoring, 
    and controlling the export of the pesticides and chemicals described in 
    paragraph (1), and any recommendations the President has on how such 
    frameworks could be improved as methods for controlling the export of those 
    substances.
  (c) GAO REPORT- The Comptroller General of the United States, in consultation 
  with the National Academy of Sciences and such other departments and agencies 
  as the Comptroller General considers appropriate, shall, by not later than 1 
  year after the date of the enactment of this Act--
    (1) examine the regulatory and administrative frameworks in the United 
    States for measuring, monitoring, and controlling the exportation of the 
    pesticides and chemicals described in subsection (b), and determine the 
    efficiency and effectiveness of those frameworks;
    (2) compare the United States regulatory and administrative frameworks under 
    paragraph (1) with those of the other member countries of the Organization 
    for Economic Cooperation and Development, and provide recommendations 
    concerning any elements of the frameworks of those countries that might be 
    applied to the United States frameworks to help improve their efficiency and 
    effectiveness;
    (3) compare the quantities of each of the substances described in paragraph 
    (1) which have been exported by the United States and all other member 
    countries of the Organization for Economic Cooperation and Development 
    during the 2-year period preceding the date of enactment of this Act;
    (4) evaluate the adequacy of current statutory and regulatory authority, as 
    well as appropriations, for measuring, monitoring, and controlling the 
    export of those substances and suggest improvements for ensuring better 
    measuring, monitoring, and control of those exports; and
    (5) submit to the Committee on International Relations of the House of 
    Representatives and to the Committee on Banking, Housing, and Urban Affairs 
    and the Committee on Foreign Relations of the Senate a report on the 
    findings under paragraphs (1) through (4).
TITLE IV--PROCEDURES FOR EXPORT LICENSES AND INTERAGENCY DISPUTE RESOLUTION
SEC. 401. EXPORT LICENSE PROCEDURES.
  (a) RESPONSIBILITY OF THE SECRETARY- 
    (1) IN GENERAL- All applications for a license or other authorization to 
    export a controlled item shall be filed in such manner and include such 
    information as the Secretary may, by regulation, prescribe.
    (2) PROCEDURES- In guidance and regulations that implement this section, the 
    Secretary shall describe the procedures required by this section, the 
    responsibilities of the Secretary and of other departments and agencies in 
    reviewing applications, the rights of the applicant, and other relevant 
    matters affecting the review of license applications.
    (3) CALCULATION OF PROCESSING TIMES- In calculating the processing times set 
    forth in this title, the Secretary shall use calendar days, except that if 
    the final day for a required action falls on a weekend or holiday, that 
    action shall be taken no later than the following business day.
    (4) CRITERIA FOR EVALUATING APPLICATIONS- In determining whether to grant an 
    application to export a controlled item under this Act, the following 
    criteria shall be considered:
      (A) The characteristics of the controlled item.
      (B) The threat to--
        (i) the national security interests of the United States from items 
        controlled under title II of this Act; or
        (ii) the foreign policy of the United States from items controlled under 
        title III of this Act.
      (C) The country tier designation of the country to which a controlled item 
      is to be exported pursuant to section 203.
      (D) The risk of export diversion or misuse by--
        (i) the exporter;
        (ii) the method of export;
        (iii) the end user;
        (iv) the country where the end user is located; and
        (v) the end use.
      (E) Risk mitigating factors including, but not limited to--
        (i) changing the characteristics of the controlled item;
        (ii) after-market monitoring by the exporter; and
        (iii) post-shipment verification.
  (b) INITIAL SCREENING- 
    (1) UPON RECEIPT OF APPLICATION- Upon receipt of an export license 
    application, the Secretary shall enter and maintain in the records of the 
    Department information regarding the receipt and status of the application.
    (2) INITIAL PROCEDURES- 
      (A) IN GENERAL- Not later than 9 days after receiving any license 
      application, the Secretary shall--
        (i) contact the applicant if the application is improperly completed or 
        if additional information is required, and hold the application for a 
        reasonable time while the applicant provides the necessary corrections 
        or information, and such time shall not be included in calculating the 
        time periods prescribed in this title; and
        (ii) upon receipt of a completed application--
          (I) ensure that the classification state on the application for the 
          export items is correct, and, if so, refer the application, through 
          the use of a common data base or other means, and all information 
          submitted by the applicant, and all necessary recommendations and 
          analyses by the Secretary, to the Secretary of Defense, the Secretary 
          of State, and the heads of and other departments and agencies the 
          Secretary considers appropriate; or
          (II) return the application if a license is not required.
      (B) REFERRAL NOT REQUIRED- In the event that the head of a department or 
      agency determines that certain types of applications need not be referred 
      to the department or agency, such department or agency head shall notify 
      the Secretary of the specific types of such applications that the 
      department or agency does not wish to review.
    (3) WITHDRAWAL OF APPLICATION- An applicant may, by written notice to the 
    Secretary, withdraw an application at any time before final action.
  (c) ACTION BY OTHER DEPARTMENTS AND AGENCIES- 
    (1) REFERRAL TO OTHER AGENCIES- The Secretary shall promptly refer a license 
    application to the departments and agencies under subsection (b) to make 
    recommendations and provide information to the Secretary.
    (2) RESPONSIBILITY OF REFERRAL DEPARTMENTS AND AGENCIES- The Secretary of 
    Defense, the Secretary of State, and the heads of other reviewing 
    departments and agencies shall take all necessary actions on an application 
    in a prompt and responsible manner. Each department or agency reviewing an 
    application under this section shall establish and maintain records properly 
    identifying and monitoring the status of the matter referred to the 
    department or agency.
    (3) ADDITIONAL INFORMATION REQUESTS- Each department or agency to which a 
    license application is referred shall specify to the Secretary any 
    information that is not in the application that would be required for the 
    department or agency to make a determination with respect to the 
    application, and the Secretary shall promptly request such information from 
    the applicant. The time that may elapse between the date the information is 
    requested by that department or agency and the date the information is 
    received by that department or agency shall not be included in calculating 
    the time periods prescribed in this title.
    (4) TIME PERIOD FOR ACTION BY REFERRAL DEPARTMENTS AND AGENCIES- Within 30 
    days after the Secretary refers an application under this section, each 
    department or agency to which an application has been referred shall provide 
    the Secretary with a recommendation either to approve the license or to deny 
    the license. A recommendation that the
Secretary deny a license shall include a statement of reasons for the 
recommendation that are consistent with the provisions of this title, and shall 
cite both the specific statutory and regulatory basis for the recommendation. A 
department or agency that fails to provide a recommendation in accordance with 
this paragraph within that 30-day period shall be deemed to have no objection to 
the decision of the Secretary on the application. 
  (d) ACTION BY THE SECRETARY- Not later than 30 days after the date the 
  application is referred, the Secretary shall--
    (1) if there is agreement among the departments and agencies to which the 
    application has been referred under subsection (c) to issue or deny the 
    license--
      (A) issue the license and ensure all appropriate personnel in the 
      Department (including the Office of Export Enforcement) are notified of 
      all approved license applications; or
      (B) notify the applicant of the intention to deny the license; or
    (2) if there is no agreement among such departments and agencies, notify the 
    applicant that the application is subject to the interagency dispute 
    resolution process provided for in section 402.
  (e) CONSEQUENCES OF APPLICATION DENIAL- 
    (1) IN GENERAL- If a determination is made to deny a license, the Secretary 
    shall inform the applicant in writing, consistent with the protection of 
    intelligence information sources and methods, of--
      (A) the determination;
      (B) the specific statutory and regulatory bases for the proposed denial;
      (C) what, if any, modifications to, or restrictions on, the items for 
      which the license was sought would allow such export to be compatible with 
      export controls imposed under this Act, and which officer or employee of 
      the Department would be in a position to discuss modifications or 
      restrictions with the applicant and the specific statutory and regulatory 
      bases for imposing such modifications or restrictions;
      (D) to the extent consistent with the national security and foreign policy 
      interests of the United States, the specific considerations that led to 
      the determination to deny the application; and
      (E) the availability of appeal procedures.
    (2) PERIOD FOR APPLICANT TO RESPOND- The applicant shall have 20 days from 
    the date of the notice of intent to deny the application to respond in a 
    manner that addresses and corrects the reasons for the denial. If the 
    applicant does not adequately address or correct the reasons for denial or 
    does not respond, the license shall be denied. If the applicant does address 
    or correct the reasons for denial, the application shall be considered in a 
    timely manner.
  (f) APPEALS AND OTHER ACTIONS BY APPLICANT- 
    (1) IN GENERAL- The Secretary shall establish appropriate procedures for an 
    applicant to appeal to the Secretary the denial of an application or other 
    administrative action under this Act. In any case in which the Secretary 
    proposes to reverse the decision with respect to the application, the appeal 
    under this subsection shall be handled in accordance with the interagency 
    dispute resolution process provided for in section 402(b)(3).
    (2) ENFORCEMENT OF TIME LIMITS- 
      (A) IN GENERAL- In any case in which an action prescribed in this section 
      is not taken on an application within the time period established by this 
      section (except in the case of a time period extended under subsection (g) 
      of which the applicant is notified), the applicant may file a petition 
      with the Secretary requesting compliance with the requirements of this 
      section. When such petition is filed, the Secretary shall take immediate 
      steps to correct the situation giving rise to the petition and shall 
      immediately notify the applicant of such steps.
      (B) BRINGING COURT ACTION- If, within 20 days after a petition is filed 
      under subparagraph (A), the processing of the application has not been 
      brought into conformity with the requirements of this section, or the 
      processing of the application has been brought into conformity with such 
      requirements but the Secretary has not so notified the applicant, the 
      applicant may bring an action in an appropriate United States district 
      court for an order requiring compliance with the time periods required by 
      this section.
  (g) EXCEPTIONS FROM REQUIRED TIME PERIODS- The following actions related to 
  processing an application shall not be included in calculating the time 
  periods prescribed in this section:
    (1) AGREEMENT OF THE APPLICANT; COMPLEXITY OF ANALYSIS; NATIONAL SECURITY 
    IMPACT- 
      (A) AGREEMENT OF THE APPLICANT- Delays upon which the Secretary and the 
      applicant mutually agree.
      (B) COMPLEXITY OF ANALYSIS- A reviewing department or agency requires more 
      time due to the complexity of the analysis, if the additional time is not 
      more than 60 days.
      (C) NATIONAL SECURITY IMPACT- A reviewing department or agency requires 
      additional time because of the potential impact on the national security 
      or foreign policy interests of the United States, if the additional time 
      is not more than 60 days.
    (2) PRELICENSE CHECKS- A prelicense check (for a period not to exceed 60 
    days) that may be required to establish the identity and reliability of the 
    recipient of items controlled under this Act, if--
      (A) the need for the prelicense check is determined by the Secretary or by 
      another department or agency in any case in which the request for the 
      prelicense check is made by such department or agency;
      (B) the request for the prelicense check is initiated by the Secretary 
      within 5 days after the determination that the prelicense check is 
      required; and
      (C) the analysis of the result of the prelicense check is completed by the 
      Secretary within 5 days.
    (3) REQUESTS FOR GOVERNMENT-TO-GOVERNMENT ASSURANCES- Any request by the 
    Secretary or another department or agency for government-to-government 
    assurances of suitable end uses of items approved for export, when failure 
    to obtain such assurances would result in rejection of the application, if--
      (A) the request for such assurances is sent to the Secretary of State 
      within 5 days after the determination that the assurances are required;
      (B) the Secretary of State initiates the request of the relevant 
      government within 10 days thereafter; and
      (C) the license is issued within 5 days after the Secretary receives the 
      requested assurances.
    (4) EXCEPTION- Whenever a prelicense check described in paragraph (2) or 
    assurances described in paragraph (3) are not requested within the time 
    periods set forth therein, then the time expended for such prelicense check 
    or assurances shall be included in
calculating the time periods established by this section. 
    (5) MULTILATERAL REVIEW- Multilateral review of a license application to the 
    extent that such multilateral review is required by a relevant multilateral 
    regime.
    (6) CONGRESSIONAL NOTIFICATION- Such time as is required for mandatory 
    congressional notifications under this Act.
    (7) CONSULTATIONS- Consultation with foreign governments, if such 
    consultation is provided for by a relevant multilateral regime as a 
    precondition for approving a license.
    (8) INTELLIGENCE AGENCIES- Delays necessary to obtain information or 
    assessments from intelligence agencies.
  (h) CLASSIFICATION REQUESTS AND OTHER INQUIRIES- 
    (1) CLASSIFICATION REQUEST- 
      (A) NOTIFICATION OF OTHER AGENCIES- In any case in which the Secretary 
      receives a written request asking for the proper classification of an item 
      on the Control List or the applicability of licensing requirements under 
      this title, the Secretary shall promptly notify the Secretary of Defense, 
      the Secretary of State, and the head of any other department or agency of 
      the United States that the Secretary considers appropriate, of the 
request.
      (B) DETERMINATION; RESOLUTION OF DISPUTES- The Secretary shall make the 
      determination regarding proper classification within 14 days after 
      receiving the request and inform the person making the request of such 
      determination. If an objection is raised by the Secretary of State or the 
      Secretary of Defense regarding the Secretary's determination within that 
      time period, the disagreement shall be resolved through the interagency 
      resolution process described in section 402, except that any such 
      disagreement shall be resolved within 60 days.
    (2) OTHER INQUIRIES- In any case in which the Secretary receives a written 
    request for information under this Act, the Secretary shall, within 30 days 
    after receiving the request, reply with that information to the person 
    making the request.
SEC. 402. INTERAGENCY DISPUTE RESOLUTION PROCESS.
  (a) IN GENERAL- All license applications on which agreement cannot be reached 
  shall be referred to the interagency dispute resolution process for decision.
  (b) INTERAGENCY DISPUTE RESOLUTION PROCESS- 
    (1) INITIAL RESOLUTION- The Secretary shall establish, select the 
    chairperson of, and determine procedures for an interagency committee to 
    review initially all license applications described in subsection (a) with 
    respect to which the Secretary and any of the referral departments and 
    agencies are not in agreement. The chairperson committee shall consider the 
    positions of all the referral departments and agencies (which shall be 
    included in the minutes described in subsection (c)(2)) and make a decision 
    on the license application, including appropriate revisions or conditions 
    thereto., except that any decision of the committee is not valid unless it 
    is unanimous. If such a unanimous decision is not reached, the license at 
    issue shall be denied, unless the matter is appealed under paragraph (3).
    (2) INTELLIGENCE COMMUNITY- The analytic product of the intelligence 
    community should be fully considered with respect to any proposed license 
    under this title.
    [Struck out->] (3) FURTHER RESOLUTION- The President shall establish 
    additional levels for review or appeal of any matter that cannot be resolved 
    pursuant to the process described in paragraph (1). Each such review shall 
    ensure that matters are resolved or referred to the President not later than 
    90 days after the completed license application is referred by the 
    Secretary. [<-Struck out]
    (3) FURTHER RESOLUTION- The President shall establish additional levels for 
    review or appeal of any matter that cannot be resolved pursuant to the 
    process described in paragraph (1). Each such review shall--
      (A) provide for decision-making based on the concurrence of the 
      participating departments and agencies;
      (B) provide that a department or agency that fails to take a timely 
      position, citing the specific statutory and regulatory bases for a 
      position, shall be deemed to have no objection to the pending decision;
      (C) provide that any decision of an interagency committee established 
      under paragraph (1) or interagency dispute resolution process established 
      under this paragraph may be escalated to the next higher level of review 
      at the request of an official appointed by the President, by and with the 
      advice of the Senate, or an officer properly acting in such capacity, of a 
      department or agency that participated in the interagency committee or 
      dispute resolution process that made the decision; and
      (D) ensure that matters are resolved or referred to the President not 
      later than 90 days after the date the completed license application is 
      referred by the Secretary.
    If concurrence of the participating departments and agencies is not reached 
    at a level of review established under this paragraph, the license at issue 
    shall be denied unless the matter is escalated to the next higher level of 
    review or the President determines otherwise.
  (c) FINAL ACTION- 
    (1) IN GENERAL- Once a final decision is made under subsection (b), the 
    Secretary shall promptly--
      (A) issue the license and ensure that all appropriate personnel in the 
      Department (including the Office of Export Enforcement) are notified of 
      all approved license applications; or
      (B) notify the applicant of the intention to deny the application.
    (2) MINUTES- The interagency committee and each level of the interagency 
    dispute resolution process shall keep reasonably detailed minutes of all 
    meetings. On each matter before the interagency committee or before any 
    other level of the interagency dispute resolution process in which members 
    disagree, each member shall clearly state the reasons for the member's 
    position and the reasons shall be entered in the minutes.
TITLE V--INTERNATIONAL ARRANGEMENTS; FOREIGN BOYCOTTS; SANCTIONS; AND 
ENFORCEMENT
SEC. 501. INTERNATIONAL ARRANGEMENTS.
  (a) MULTILATERAL EXPORT CONTROL REGIMES- 
    (1) POLICY- It is the policy of the United States to seek multilateral 
    arrangements that support the national security objectives of the United 
    States (as described in title II) and that establish fairer and more 
    predictable competitive opportunities for United States exporters.
    (2) PARTICIPATION IN EXISTING REGIMES- Congress encourages the United States 
    to continue its active participation in and to strengthen existing 
    multilateral export control regimes.
    (3) PARTICIPATION IN NEW REGIMES- It is the policy of the United States to 
    participate in additional multilateral export control regimes if such 
    participation would serve the national security interests of the United 
    States.
  (b) ANNUAL REPORT ON MULTILATERAL EXPORT CONTROL REGIMES- Not later than 
  February 1 of each year, the President shall submit to the Committee on 
  Banking, Housing, and Urban Affairs of the Senate and the Committee on 
  International Relations of the House of Representatives a report evaluating 
  the effectiveness of each multilateral export control regime, including an 
  assessment of the steps undertaken pursuant to subsections (c) and (d). The 
  report, or any part of this report, may be submitted in classified form to the 
  extent the President considers necessary.
  (c) STANDARDS FOR MULTILATERAL EXPORT CONTROL REGIMES- The President shall 
  take steps to establish the following features in any multilateral export 
  control regime in which the United States is participating or may participate:
    (1) FULL MEMBERSHIP- All supplier countries are members of the regime, and 
    the policies and activities of the members are consistent with the 
    objectives and membership criteria of the multilateral export control 
regime.
    (2) EFFECTIVE ENFORCEMENT AND COMPLIANCE- The regime promotes enforcement 
    and compliance with the regime's rules and guidelines.
    (3) PUBLIC UNDERSTANDING- The regime makes an effort to enhance public 
    understanding of the purpose and procedures of the multilateral export 
    control regime.
    (4) EFFECTIVE IMPLEMENTATION PROCEDURES- The multilateral export control 
    regime has procedures for the uniform and consistent interpretation and 
    implementation of its rules and guidelines.
    (5) ENHANCED COOPERATION WITH REGIME NONMEMBERS- There is agreement among 
    the members of the multilateral export control regime to--
      (A) cooperate with governments outside the regime to restrict the export 
      of items controlled by such regime; and
      (B) establish an ongoing mechanism in the regime to coordinate planning 
      and implementation of export control measures related to such cooperation.
    (6) PERIODIC HIGH-LEVEL MEETINGS- There are regular periodic meetings of 
    high-level representatives of the governments of members of the multilateral 
    export control regime for the purpose of coordinating export control 
    policies and issuing policy guidance to members of the regime.
    (7) COMMON LIST OF CONTROLLED ITEMS- There is agreement on a common list of 
    items controlled by the multilateral export control regime.
    (8) REGULAR UPDATES OF COMMON LIST- There is a procedure for removing items 
    from the list of controlled items when the control of such items no longer 
    serves the objectives of the members of the multilateral export control 
    regime.
    (9) TREATMENT OF CERTAIN COUNTRIES- There is agreement to prevent the export 
    or diversion of the most sensitive items to countries whose activities are 
    threatening to the national security of the United States or its allies.
    (10) HARMONIZATION OF LICENSE APPROVAL PROCEDURES- There is harmonization 
    among the members of the regime of their national export license approval 
    procedures, practices, and standards.
    (11) UNDERCUTTING- There is a limit with respect to when members of a 
    multilateral export control regime--
      (A) grant export licenses for any item that is substantially identical to 
      or directly competitive with an item controlled pursuant to the regime, 
      where the United States has denied an export license for such item, or
      (B) approve exports to a particular end user to which the United States 
      has denied export license for a similar item.
  (d) STANDARDS FOR NATIONAL EXPORT CONTROL SYSTEMS- The President shall take 
  steps to attain the cooperation of members of each regime in implementing 
  effective national export control systems containing the following features:
    (1) EXPORT CONTROL LAW- Enforcement authority, civil and criminal penalties, 
    and statutes of limitations are sufficient to deter potential violations and 
    punish violators under the member's export control law.
    (2) LICENSE APPROVAL PROCESS- The system for evaluating export license 
    applications includes sufficient technical expertise to assess the licensing 
    status of exports and ensure the reliability of end users.
    (3) ENFORCEMENT- The enforcement mechanism provides authority for trained 
    enforcement officers to investigate and prevent illegal exports.
    (4) DOCUMENTATION- There is a system of export control documentation and 
    verification with respect to controlled items.
    (5) INFORMATION- There are procedures for the coordination and exchange of 
    information concerning licensing, end users, and enforcement with other 
    members of the multilateral export control regime.
    (6) RESOURCES- The member has devoted adequate resources to administer 
    effectively the authorities, systems, mechanisms, and procedures described 
    in paragraphs (1) through (5).
  (e) OBJECTIVES REGARDING MULTILATERAL EXPORT CONTROL REGIMES- The President 
  shall seek to achieve the following objectives with regard to multilateral 
  export control regimes:
    (1) STRENGTHEN EXISTING REGIMES- Strengthen existing multilateral export 
    control regimes--
      (A) by creating a requirement to share information about export license 
      applications among members before a member approves an export license; and
      (B) harmonizing national export license approval procedures and practices, 
      including the elimination of undercutting.
    (2) REVIEW AND UPDATE- Review and update multilateral regime export control 
    lists with other members, taking into account--
      (A) national security concerns;
      (B) the controllability of items; and
      (C) the costs and benefits of controls.
    (3) ENCOURAGE COMPLIANCE BY NONMEMBERS- Encourage nonmembers of the 
    multilateral export control regime--
      (A) to strengthen their national export control regimes and improve 
      enforcement;
      (B) to adhere to the appropriate multilateral export control regime; and
      (C) not to undermine an existing multilateral export control regime by 
      exporting controlled items in a manner inconsistent with the guidelines of 
      the regime.
  (f) TRANSPARENCY OF MULTILATERAL EXPORT CONTROL REGIMES- 
    (1) PUBLICATION OF INFORMATION ON EACH EXISTING REGIME- Not later than 120 
    days after the date of enactment of this Act, the Secretary shall, for each 
    multilateral export control regime, to the extent that it is not 
    inconsistent with the arrangements of that regime (in the judgment of the 
    Secretary of State) or with the national interest, publish in the Federal 
    Register and post on the Department of Commerce website the following 
    information with respect to the regime:
      (A) The purposes of the regime.
      (B) The members of the regime.
      (C) The export licensing policy of the regime.
      (D) The items that are subject to export controls under the regime, 
      together with all public notes, understandings, and other aspects of the 
      agreement of the regime, and all changes thereto.
      (E) Any countries, end uses, or end users that are subject to the export 
      controls of the regime.
      (F) Rules of interpretation.
      (G) Major policy actions.
      (H) The rules and procedures of the regime for establishing and modifying 
      any matter described in subparagraphs (A) through (G) and for reviewing 
      export license applications.
    (2) NEW REGIMES- Not later than 60 days after the United States joins or 
    organizes a new multilateral export control regime, the Secretary shall, to 
    the extent that it is not inconsistent with arrangements under the regime 
    (in the judgment of the Secretary of State) or with the national interest, 
    publish in the Federal Register and post on the Department of Commerce 
    website the information described in subparagraphs (A) through (H) of 
    paragraph (1) with respect to the regime.
    (3) PUBLICATION OF CHANGES- Not later than 60 days after a multilateral 
    export control regime adopts any change in the information published under 
    this subsection, the Secretary shall, to the extent not inconsistent with 
    the arrangements under the regime or the national interest, publish such 
    changes in the Federal Register and post such changes on the Department of 
    Commerce website.
  (g) SUPPORT OF OTHER COUNTRIES' EXPORT CONTROL SYSTEMS- The Secretary is 
  encouraged to continue to--
    (1) participate in training of, and provide training to, officials of other 
    countries on the principles and procedures for implementing effective export 
    controls; and
    (2) participate in any such training provided by other departments and 
    agencies of the United States.
SEC. 502. FOREIGN BOYCOTTS.
  (a) PURPOSES- The purposes of this section are as follows:
    (1) To counteract restrictive trade practices or boycotts fostered or 
    imposed by foreign countries against other countries friendly to the United 
    States or against any United States person.
    (2) To encourage and, in specified cases, require United States persons 
    engaged in the export of items to refuse to take actions, including 
    furnishing information or entering into or implementing agreements, which 
    have the effect of furthering or supporting the restrictive trade practices 
    or boycotts fostered or imposed by any foreign country against a country 
    friendly to the United States or against any United States person.
  (b) PROHIBITIONS AND EXCEPTIONS- 
    (1) PROHIBITIONS- In order to carry out the purposes set forth in subsection 
    (a), the President shall issue regulations prohibiting any United States 
    person, with respect to that person's activities in the interstate or 
    foreign commerce of the United States, from taking or knowingly agreeing to 
    take any of the following actions with intent to comply with, further, or 
    support any boycott fostered or imposed by a foreign country against a 
    country that is friendly to the United States and is not itself the object 
    of any form of boycott pursuant to United States law or regulation:
      (A) Refusing, or requiring any other person to refuse, to do business with 
      or in the boycotted country, with any business concern organized under the 
      laws of the boycotted country, with any national or resident of the 
      boycotted country, or with any other person, pursuant to an agreement 
      with, or requirement of, or a request from or on behalf of the boycotting 
      country (subject to the condition that the intent required to be 
      associated with such an act in order to constitute a violation of the 
      prohibition is not indicated solely by the mere absence of a business 
      relationship with or in the boycotted country, with any business concern 
      organized under the laws of the boycotted country, with any national or 
      resident of the boycotted country, or with any other person).
      (B) Refusing, or requiring any other person to refuse, to employ or 
      otherwise discriminate against any United States person on the basis of 
      the race, religion, sex, or national origin of that person or of any 
      owner, officer, director, or employee of such person.
      (C) Furnishing information with respect to the race, religion, sex, or 
      national origin of any United States person or of any owner, officer, 
      director, or employee of such person.
      (D) Furnishing information (other than furnishing normal business 
      information in a commercial context, as defined by the Secretary) about 
      whether any person has, has had, or proposes to have any business 
      relationship (including a relationship by way of sale, purchase, legal or 
      commercial representation, shipping or other transport, insurance, 
      investment, or supply) with or in the boycotted country, with any business 
      concern organized under the laws of the boycotted country, with any 
      national or resident of the boycotted country, or with any other person 
      that is known or believed to be restricted from having any business 
      relationship with or in the boycotting country.
      (E) Furnishing information about whether any person is a member of, has 
      made a contribution to, or is otherwise associated with or involved in the 
      activities of any charitable or fraternal organization which supports the 
      boycotted country.
      (F) Paying, honoring, confirming, or otherwise implementing a letter of 
      credit which contains any condition or requirement the compliance with 
      which is prohibited by regulations issued pursuant to this paragraph, and 
      no United States person shall, as a result of the application of this 
      paragraph, be obligated to pay or otherwise honor or implement such letter 
      of credit.
    (2) EXCEPTIONS- Regulations issued pursuant to paragraph (1) shall provide 
    exceptions for--
      (A) compliance, or agreement to comply, with requirements--
        (i) prohibiting the import of items from the boycotted country or items 
        produced or provided, by any business concern organized under the laws 
        of the boycotted
country or by nationals or residents of the boycotted country; or 
        (ii) prohibiting the shipment of items to the boycotting country on a 
        carrier of the boycotted country or by a route other than that 
        prescribed by the boycotting country or the recipient of the shipment;
      (B) compliance, or agreement to comply, with import and shipping document 
      requirements with respect to the country of origin, the name of the 
      carrier and route of shipment, the name of the supplier of the shipment, 
      or the name of the provider of other services, except that, for purposes 
      of applying any exception under this subparagraph, no information 
      knowingly furnished or conveyed in response to such requirements may be 
      stated in negative, blacklisting, or similar exclusionary terms, other 
      than with respect to carriers or route of shipment as may be permitted by 
      such regulations in order to comply with precautionary requirements 
      protecting against war risks and confiscation;
      (C) compliance, or agreement to comply, in the normal course of business 
      with the unilateral and specific selection by a boycotting country, or a 
      national or resident thereof, or carriers, insurers, suppliers of services 
      to be performed within the boycotting country, or specific items which, in 
      the normal course of business, are identifiable by source when imported 
      into the boycotting country;
      (D) compliance, or agreement to comply, with export requirements of the 
      boycotting country relating to shipment or transshipment of exports to the 
      boycotted country, to any business concern of or organized under the laws 
      of the boycotted country, or to any national or resident of the boycotted 
      country;
      (E) compliance by an individual, or agreement by an individual to comply, 
      with the immigration or passport requirements of any country with respect 
      to such individual or any member of such individual's family or with 
      requests for information regarding requirements of employment of such 
      individual within the boycotting country; and
      (F) compliance by a United States person resident in a foreign country, or 
      agreement by such a person to comply, with the laws of the country with 
      respect to the person's activities exclusively therein, and such 
      regulations may contain exceptions for such resident complying with the 
      laws or regulations of the foreign country governing imports into such 
      country of trademarked, trade-named, or similarly specifically 
      identifiable products, or components of products for such person's own 
      use, including the performance of contractual services within that 
country.
    (3) LIMITATION ON EXCEPTIONS- Regulations issued pursuant to paragraphs 
    (2)(C) and (2)(F) shall not provide exceptions from paragraphs (1)(B) and 
    (1)(C).
    (4) ANTITRUST AND CIVIL RIGHTS LAWS NOT AFFECTED- Nothing in this subsection 
    may be construed to supersede or limit the operation of the antitrust or 
    civil rights laws of the United States.
    (5) EVASION- This section applies to any transaction or activity undertaken 
    by or through a United States person or any other person with intent to 
    evade the provisions of this section or the regulations issued pursuant to 
    this subsection. The regulations issued pursuant to this section shall 
    expressly provide that the exceptions set forth in paragraph (2) do not 
    permit activities or agreements (expressed or implied by a course of 
    conduct, including a pattern of responses) that are otherwise prohibited, 
    pursuant to the intent of such exceptions.
  (c) ADDITIONAL REGULATIONS AND REPORTS- 
    (1) REGULATIONS- In addition to the regulations issued pursuant to 
    subsection (b), regulations issued pursuant to title III shall implement the 
    purposes set forth in subsection (a).
    (2) REPORTS BY UNITED STATES PERSONS- The regulations shall require that any 
    United States person receiving a request to furnish information, enter into 
    or implement an agreement, or take any other action referred to in 
    subsection (a) shall report that request to the Secretary, together with any 
    other information concerning the request that the Secretary determines 
    appropriate. The person shall also submit to the Secretary a statement 
    regarding whether the person intends to comply, and whether the person has 
    complied, with the request. Any report filed pursuant to this paragraph 
    shall be made available promptly for public inspection and copying, except 
    that information regarding the quantity, description, and value of any item 
    to which such report relates may be treated as confidential if the Secretary 
    determines that disclosure of that information would place the United States 
    person involved at a competitive disadvantage. The Secretary shall 
    periodically transmit summaries of the information contained in the reports 
    to the Secretary of State for such action as the Secretary of State, in 
    consultation with the Secretary, considers appropriate to carry out the 
    purposes set forth in subsection (a).
  (d) PREEMPTION- The provisions of this section and the regulations issued 
  under this section shall preempt any law, rule, or regulation that--
    (1) is a law, rule, or regulation of any of the several States or the 
    District of Columbia, or any of the territories or possessions of the United 
    States, or of any governmental subdivision thereof; and
    (2) pertains to participation in, compliance with, implementation of, or the 
    furnishing of information regarding restrictive trade practices or boycotts 
    fostered or imposed by foreign countries against other countries.
SEC. 503. PENALTIES.
  (a) CRIMINAL PENALTIES- 
    (1) VIOLATIONS BY AN INDIVIDUAL- Any individual who willfully violates, 
    conspires to violate, or attempts to violate any provision of this Act or 
    any regulation, license, or order issued under this Act shall be fined up to 
    10 times the value of the exports involved or $1,000,000, whichever is 
    greater, imprisoned for not more than 10 years, or both, for each violation.
    (2) VIOLATIONS BY A PERSON OTHER THAN AN INDIVIDUAL- Any person other than 
    an individual who willfully violates, conspires to violate, or attempts to 
    violate any provision of this Act or any regulation, license, or order 
    issued under this Act shall be fined up to 10 times the value of the exports 
    involved or $5,000,000, whichever is greater, for each violation.
  (b) FORFEITURE OF PROPERTY INTEREST AND PROCEEDS- 
    (1) FORFEITURE- Any person who is convicted under paragraph (1) or (2) of 
    subsection (a) shall, in addition to any other penalty, forfeit to the 
    United States--
      (A) any of that person's security or other interest in, claim against, or 
      property or contractual rights of any kind in the tangible items that were 
      the subject of the violation;
      (B) any of that person's security or other interest in, claim against, or 
      property or contractual rights of any kind in the tangible
property that was used in the export or attempt to export that was the subject 
of the violation; and 
      (C) any of that person's property constituting, or derived from, any 
      proceeds obtained directly or indirectly as a result of the violation.
    (2) PROCEDURES- The procedures in any forfeiture under this subsection, and 
    the duties and authority of the courts of the United States and the Attorney 
    General with respect to any forfeiture action under this subsection, or with 
    respect to any property that may be subject to forfeiture under this 
    subsection, shall be governed by the provisions of chapter 46 of title 18, 
    United States Code (relating to criminal forfeiture), to the same extent as 
    property subject to forfeiture under that chapter.
  (c) CIVIL PENALTIES; ADMINISTRATIVE SANCTIONS- 
    (1) CIVIL PENALTIES- The Secretary may impose a civil penalty of up to 
    $500,000 for each violation of a provision of this Act or any regulation, 
    license, or order issued under this Act. A civil penalty under this 
    paragraph may be in addition to, or in lieu of, any other liability or 
    penalty which may be imposed for such a violation.
    (2) DENIAL OF EXPORT PRIVILEGES- The Secretary may deny the export 
    privileges of any person, including the suspension or revocation of the 
    authority of such person to export or receive United States-origin items 
    subject to this Act, for a violation of a provision of this Act or any 
    regulation, license, or order issued under this Act.
    (3) EXCLUSION FROM PRACTICE- The Secretary may exclude any person acting as 
    an attorney, accountant, consultant, freight forwarder, or in any other 
    representative capacity from participating before the Department with 
    respect to a license application or any other matter under this Act.
  (d) PAYMENT OF CIVIL PENALTIES- 
    (1) PAYMENT AS CONDITION OF FURTHER EXPORT PRIVILEGES- The payment of a 
    civil penalty imposed under subsection (c) may be made a condition for the 
    granting, restoration, or continuing validity of any export license, 
    permission, or privilege granted or to be granted to the person upon whom 
    such penalty is imposed. The period for which the payment of a penalty may 
    be made such a condition may not exceed 1 year after the date on which the 
    payment is due.
    (2) DEFERRAL OR SUSPENSION- 
      (A) IN GENERAL- The payment of a civil penalty imposed under subsection 
      (c) may be deferred or suspended in whole or in part for a period no 
      longer than any probation period (which may exceed 1 year) that may be 
      imposed upon the person on whom the penalty is imposed.
      (B) NO BAR TO COLLECTION OF PENALTY- A deferral or suspension under 
      subparagraph (A) shall not operate as a bar to the collection of the 
      penalty concerned in the event that the conditions of the suspension, 
      deferral, or probation are not fulfilled.
    (3) TREATMENT OF PAYMENTS- Any amount paid in satisfaction of a civil 
    penalty imposed under subsection (c) shall be covered into the Treasury as 
    miscellaneous receipts.
  (e) REFUNDS- 
    (1) AUTHORITY- 
      (A) IN GENERAL- The Secretary may, in the Secretary's discretion, refund 
      any civil penalty imposed under subsection (c) on the ground of a material 
      error of fact or law in imposition of the penalty.
      (B) LIMITATION- A civil penalty may not be refunded under subparagraph (A) 
      later than 2 years after payment of the penalty.
    (2) PROHIBITION ON ACTIONS FOR REFUND- Notwithstanding section 1346(a) of 
    title 28, United States Code, no action for the refund of any civil penalty 
    referred to in paragraph (1) may be maintained in any court.
  (f) EFFECT OF OTHER CONVICTIONS- 
    (1) DENIAL OF EXPORT PRIVILEGES- Any person convicted of a violation of--
      (A) a provision of this Act or the Export Administration Act of 1979,
      (B) a provision of the International Emergency Economic Powers Act (50 
      U.S.C. 1701 et seq.),
      (C) section 793, 794, or 798 of title 18, United States Code,
      (D) section 4(b) of the Internal Security Act of 1950 (50 U.S.C. 783(b)),
      (E) section 38 of the Arms Export Control Act (22 U.S.C. 2778),
      (F) section 16 of the Trading with the Enemy Act (50 U.S.C. App. 16),
      (G) any regulation, license, or order issued under any provision of law 
      listed in subparagraph (A), (B), (C), (D), (E), or (F),
      (H) section 371 or 1001 of title 18, United States Code, if in connection 
      with the export of controlled items under this Act or any regulation, 
      license, or order issued under the International Emergency Economic Powers 
      Act, or the export of items controlled under the Arms Export Control Act,
      (I) section 175 of title 18, United States Code,
      (J) a provision of the Atomic Energy Act (42 U.S.C. 201 et seq.),
      (K) section 831 of title 18, United States Code, or
      (L) section 2332a of title 18, United States Code,
    may, at the discretion of the Secretary, be denied export privileges under 
    this Act for a period not to exceed 10 years from the date of the 
    conviction. The Secretary may also revoke any export license under this Act 
    in which such person had an interest at the time of the conviction.
    (2) RELATED PERSONS- The Secretary may exercise the authority under 
    paragraph (1) with respect to any person related through affiliation, 
    ownership, control, or position of responsibility to a person convicted of 
    any violation of a law set forth in paragraph (1) upon a showing of such 
    relationship with the convicted person. The Secretary shall make such 
    showing only after providing notice and opportunity for a hearing.
  (g) STATUTE OF LIMITATIONS- 
    (1) IN GENERAL- Except as provided in paragraph (2), a proceeding in which a 
    civil penalty or other administrative sanction (other than a temporary 
    denial order) is sought under subsection (c) may not be instituted more than 
    5 years after the later of the date of the alleged violation or the date of 
    discovery of the alleged violation.
    (2) EXCEPTION- 
      (A) TOLLING- In any case in which a criminal indictment alleging a 
      violation under subsection (a) is returned within the time limits 
      prescribed by law for the institution of such action, the limitation under 
      paragraph (1) for bringing a proceeding to impose a civil penalty or other 
      administrative sanction under this section shall, upon the return of the 
      criminal indictment, be tolled against all persons named as a defendant.
      (B) DURATION- The tolling of the limitation with respect to a defendant 
      under subparagraph (A) as a result of a criminal indictment shall continue 
      for a period of 6 months from the date on which the conviction of the 
      defendant becomes final, the indictment against the defendant is 
      dismissed, or the criminal action has concluded.
  (h) VIOLATIONS DEFINED BY REGULATION- Nothing in this section shall limit the 
  authority of the Secretary to define by regulation violations under this Act.
  (i) CONSTRUCTION- Nothing in subsection (c), (d), (e), (f), or (g) limits--
    (1) the availability of other administrative or judicial remedies with 
    respect to a violation of a provision of this Act, or any regulation, order, 
    or license issued under this Act;
    (2) the authority to compromise and settle administrative proceedings 
    brought with respect to any such violation; or
    (3) the authority to compromise, remit, or mitigate seizures and forfeitures 
    pursuant to section 1(b) of title VI of the Act of June 15, 1917 (22 U.S.C. 
    401(b)).
SEC. 504. MISSILE PROLIFERATION CONTROL VIOLATIONS.
  (a) VIOLATIONS BY UNITED STATES PERSONS- 
    (1) SANCTIONS- 
      (A) IN GENERAL- If the President determines that a United States person 
      knowingly--
        (i) exports, transfers, or otherwise engages in the trade of any item on 
        the MTCR Annex, in violation of the provisions of section 38 (22 U.S.C. 
        2778) or chapter 7 of the Arms Export Control Act, title II or III of 
        this Act, or any regulations or orders issued under any such provisions,
        (ii) conspires to or attempts to engage in such export, transfer, or 
        trade, or
        (iii) facilitates such export, transfer, or trade by any other person,
      then the President shall impose the applicable sanctions described in 
      subparagraph (B).
      (B) SANCTIONS DESCRIBED- The sanctions which apply to a United States 
      person under subparagraph (A) are the following:
        (i) If the item on the MTCR Annex involved in the export, transfer, or 
        trade is missile equipment or technology within category II of the MTCR 
        Annex, then the President shall deny to such United States person, for a 
        period of 2 years, licenses for the transfer of missile equipment or 
        technology controlled under this Act.
        (ii) If the item on the MTCR Annex involved in the export, transfer, or 
        trade is missile equipment or technology within category I of the MTCR 
        Annex, then the President shall deny to such United States person, for a 
        period of not less than 2 years, all licenses for items the export of 
        which is controlled under this Act.
    (2) DISCRETIONARY SANCTIONS- In the case of any determination referred to in 
    paragraph (1), the Secretary may pursue any other appropriate penalties 
    under section 503.
    (3) WAIVER- The President may waive the imposition of sanctions under 
    paragraph (1) on a person with respect to an item if the President certifies 
    to Congress that--
      (A) the item is essential to the national security of the United States; 
      and
      (B) such person is a sole source supplier of the item, the item is not 
      available from any alternative reliable supplier, and the need for the 
      item cannot be met in a timely manner by improved manufacturing processes 
      or technological developments.
  (b) TRANSFERS OF MISSILE EQUIPMENT OR TECHNOLOGY BY FOREIGN PERSONS- 
    (1) SANCTIONS- 
      (A) IN GENERAL- Subject to paragraphs (3) through (7), if the President 
      determines that a foreign person, after the date of enactment of this 
      section, knowingly--
        (i) exports, transfers, or otherwise engages in the trade of any MTCR 
        equipment or technology that contributes to the design, development, or 
        production of missiles in a country that is not an MTCR adherent and 
        would be, if it were United States-origin equipment or technology, 
        subject to the jurisdiction of the United States under this Act,
        (ii) conspires to or attempts to engage in such export, transfer, or 
        trade, or
        (iii) facilitates such export, transfer, or trade by any other person,
      or if the President has made a determination with respect to a foreign 
      person under section 73(a) of the Arms Export Control Act, then the 
      President shall impose on that foreign person the applicable sanctions 
      under subparagraph (B).
      (B) SANCTIONS DESCRIBED- The sanctions which apply to a foreign person 
      under subparagraph (A) are the following:
        (i) If the item involved in the export, transfer, or trade is within 
        category II of the MTCR Annex, then the President shall deny, for a 
        period of 2 years, licenses for the transfer to such foreign person of 
        missile equipment or technology the export of which is controlled under 
        this Act.
        (ii) If the item involved in the export, transfer, or trade is within 
        category I of the MTCR Annex, then the President shall deny, for a 
        period of not less than 2 years, licenses for the transfer to such 
        foreign person of items the export of which is controlled under this 
Act.
        (iii) If, in addition to actions taken under clauses (i) and (ii), the 
        President determines that the export, transfer, or trade has 
        substantially contributed to the design, development, or production of 
        missiles in a country that is not an MTCR adherent, then the President 
        shall prohibit, for a period of not less than 2 years, the importation 
        into the United States of products produced by that foreign person.
    (2) INAPPLICABILITY WITH RESPECT TO MTCR ADHERENTS- Paragraph (1) does not 
    apply with respect to--
      (A) any export, transfer, or trading activity that is authorized by the 
      laws of an MTCR adherent, if such authorization is not obtained by 
      misrepresentation or fraud; or
      (B) any export, transfer, or trade of an item to an end user in a country 
      that is an MTCR adherent.
    (3) EFFECT OF ENFORCEMENT ACTIONS BY MTCR ADHERENTS- Sanctions set forth in 
    paragraph (1) may not be imposed under this subsection on a person with 
    respect to acts described in such paragraph or, if such sanctions are in 
    effect against a person on account of such acts, such sanctions shall be 
    terminated, if an MTCR adherent is taking judicial or other enforcement 
    action against that person with respect to such acts, or that person has 
    been found by the government of an MTCR adherent to be innocent of 
    wrongdoing with respect to such acts.
    (4) ADVISORY OPINIONS- The Secretary, in consultation with the Secretary of 
    State and the Secretary of Defense, may, upon the request of any person, 
    issue an advisory opinion to that person as to whether a proposed activity 
    by that person would subject that person to sanctions under this subsection. 
    Any person who relies in good faith on such an advisory opinion which states 
    that the proposed activity would not subject a person to such sanctions, and 
    any person who thereafter engages in such activity, may not be made subject 
    to such sanctions on account of such activity.
    (5) WAIVER AND REPORT TO CONGRESS- 
      (A) WAIVER- In any case other than one in which an advisory opinion has 
      been issued under paragraph (4) stating that a proposed activity would not 
      subject a person to sanctions under this subsection, the President may 
      waive the application of paragraph (1) to a foreign person if the 
      President determines that such waiver is essential to the national 
      security of the United States.
      (B) REPORT TO CONGRESS- In the event that the President decides to apply 
      the waiver described in subparagraph (A), the President shall so notify 
      Congress not less than 20 working days before issuing the waiver. Such 
      notification shall include a report fully articulating the rationale and 
      circumstances which led the President to apply the waiver.
    (6) ADDITIONAL WAIVER- The President may waive the imposition of sanctions 
    under paragraph (1) on a person with respect to a product or service if the 
    President certifies to the Congress that--
      (A) the product or service is essential to the national security of the 
      United States; and
      (B) such person is a sole source supplier of the product or service, the 
      product or service is not available from any alternative reliable 
      supplier, and the need for the product or service cannot be met in a 
      timely manner by improved manufacturing processes or technological 
      developments.
    (7) EXCEPTIONS- The President shall not apply the sanction under this 
    subsection prohibiting the importation of the products of a foreign person--
      (A) in the case of procurement of defense articles or defense services--
        (i) under existing contracts or subcontracts, including the exercise of 
        options for production quantities to satisfy requirements essential to 
        the national security of the United States;
        (ii) if the President determines that the person to which the sanctions 
        would be applied is a sole source supplier of the defense articles and 
        services, that the defense articles or services are essential to the 
        national security of the United States, and that alternative sources are 
        not readily or reasonably available; or
        (iii) if the President determines that such articles or services are 
        essential to the national security of the United States under defense 
        coproduction agreements or NATO Programs of Cooperation;
      (B) to products or services provided under contracts entered into before 
      the date on which the President publishes his intention to impose the 
      sanctions; or
      (C) to--
        (i) spare parts,
        (ii) component parts, but not finished products, essential to United 
        States products or production,
        (iii) routine services and maintenance of products, to the extent that 
        alternative sources are not readily or reasonably available, or
        (iv) information and technology essential to United States products or 
        production.
  (c) DEFINITIONS- In this section:
    (1) MISSILE- The term `missile' means a category I system as defined in the 
    MTCR Annex, and any other unmanned delivery system of similar capability, as 
    well as the specially designed production facilities for these systems.
    (2) MISSILE TECHNOLOGY CONTROL REGIME; MTCR- The term `Missile Technology 
    Control Regime' or `MTCR' means the policy statement, between the United 
    States, the United Kingdom, the Federal Republic of Germany, France, Italy, 
    Canada, and Japan, announced on April 16, 1987, to restrict sensitive 
    missile-relevant transfers based on the MTCR Annex, and any amendments 
    thereto.
    (3) MTCR ADHERENT- The term `MTCR adherent' means a country that 
    participates in the MTCR or that, pursuant to an international understanding 
    to which the United States is a party, controls MTCR equipment or technology 
    in accordance with the criteria and standards set forth in the MTCR.
    (4) MTCR ANNEX- The term `MTCR Annex' means the Guidelines and Equipment and 
    Technology Annex of the MTCR, and any amendments thereto.
    (5) MISSILE EQUIPMENT OR TECHNOLOGY; MTCR EQUIPMENT OR TECHNOLOGY- The terms 
    `missile equipment or technology' and `MTCR equipment or technology' mean 
    those items listed in category I or category II of the MTCR Annex.
    (6) FOREIGN PERSON- The term `foreign person' means any person other than a 
    United States person.
    (7) PERSON- 
      (A) IN GENERAL- The term `person' means a natural person as well as a 
      corporation, business association, partnership, society, trust, any other 
      nongovernmental entity, organization, or group, and any governmental 
      entity operating as a business enterprise, and any successor of any such 
      entity.
      (B) IDENTIFICATION IN CERTAIN CASES- In the case of countries where it may 
      be impossible to identify a specific governmental entity referred to in 
      subparagraph (A), the term `person' means--
        (i) all activities of that government relating to the development or 
        production of any missile equipment or technology; and
        (ii) all activities of that government affecting the development or 
        production of aircraft, electronics, and space systems or equipment.
    (8) OTHERWISE ENGAGED IN THE TRADE OF- The term `otherwise engaged in the 
    trade of' means, with respect to a particular export or transfer, to be a 
    freight forwarder or designated exporting agent, or a consignee or end user 
    of the item to be exported or transferred.
SEC. 505. CHEMICAL AND BIOLOGICAL WEAPONS PROLIFERATION SANCTIONS.
  (a) IMPOSITION OF SANCTIONS- 
    (1) DETERMINATION BY THE PRESIDENT- Except as provided in subsection (b)(2), 
    the President shall impose both of the sanctions described in subsection (c) 
    if the President determines that a foreign person, on or after the date of 
    enactment of this section, has knowingly and materially contributed--
      (A) through the export from the United States of any item that is subject 
      to the jurisdiction of the United States under this Act, or
      (B) through the export from any other country of any item that would be, 
      if it were a United States item, subject to the jurisdiction of the United 
      States under this Act,
    to the efforts by any foreign country, project, or entity described in 
    paragraph (2) to use, develop, produce, stockpile, or otherwise acquire 
    chemical or biological weapons.
    (2) COUNTRIES, PROJECTS, OR ENTITIES RECEIVING ASSISTANCE- Paragraph (1) 
    applies in the case of--
      (A) any foreign country that the President determines has, at any time 
      after the date of enactment of this Act--
        (i) used chemical or biological weapons in violation of international 
        law;
        (ii) used lethal chemical or biological weapons against its own 
        nationals; or
        (iii) made substantial preparations to engage in the activities 
        described in clause (i) or (ii);
      (B) any foreign country whose government is determined for purposes of 
      section 310 to be a government that has repeatedly provided support for 
      acts of international terrorism; or
      (C) any other foreign country, project, or entity designated by the 
      President for purposes of this section.
    (3) PERSONS AGAINST WHICH SANCTIONS ARE TO BE IMPOSED- Sanctions shall be 
    imposed pursuant to paragraph (1) on--
      (A) the foreign person with respect to which the President makes the 
      determination described in that paragraph;
      (B) any successor entity to that foreign person;
      (C) any foreign person that is a parent or subsidiary of that foreign 
      person if that parent or subsidiary knowingly assisted in the activities 
      which were the basis of that determination; and
      (D) any foreign person that is an affiliate of that foreign person if that 
      affiliate knowingly assisted in the activities which were the basis of 
      that determination and if that affiliate is controlled in fact by that 
      foreign person.
  (b) CONSULTATIONS WITH AND ACTIONS BY FOREIGN GOVERNMENT OF JURISDICTION- 
    (1) CONSULTATIONS- If the President makes the determinations described in 
    subsection (a)(1) with respect to a foreign person, Congress urges the 
    President to initiate consultations immediately with the government with 
    primary jurisdiction over that foreign person with respect to the imposition 
    of sanctions pursuant to this section.
    (2) ACTIONS BY GOVERNMENT OF JURISDICTION- In order to pursue such 
    consultations with that government, the President may delay imposition of 
    sanctions pursuant to this section for a period of up to 90 days. Following 
    the consultations, the President shall impose sanctions unless the President 
    determines and certifies to Congress that government has taken specific and 
    effective actions, including appropriate penalties, to terminate the 
    involvement of the foreign person in the activities described in subsection 
    (a)(1). The President may delay imposition of sanctions for an additional 
    period of up to 90 days if the President determines and certifies to 
    Congress that government is in the process of taking the actions described 
    in the preceding sentence.
    (3) REPORT TO CONGRESS- The President shall report to Congress, not later 
    than 90 days after making a determination under subsection (a)(1), on the 
    status of consultations with the appropriate government under this 
    subsection, and the basis for any determination under paragraph (2) of this 
    subsection that such government has taken specific corrective actions.
  (c) SANCTIONS- 
    (1) DESCRIPTION OF SANCTIONS- The sanctions to be imposed pursuant to 
    subsection (a)(1) are, except as provided in paragraph (2) of this 
    subsection, the following:
      (A) PROCUREMENT SANCTION- The United States Government shall not procure, 
      or enter into any contract for the procurement of, any goods or services 
      from any person described in subsection (a)(3).
      (B) IMPORT SANCTIONS- The importation into the United States of products 
      produced by any person described in subsection (a)(3) shall be prohibited.
    (2) EXCEPTIONS- The President shall not be required to apply or maintain 
    sanctions under this section--
      (A) in the case of procurement of defense articles or defense services--
        (i) under existing contracts or subcontracts, including the exercise of 
        options for production quantities to satisfy United States operational 
        military requirements;
        (ii) if the President determines that the person or other entity to 
        which the sanctions would otherwise be applied is a sole source supplier 
        of the defense articles or services, that the defense articles or 
        services are essential, and that alternative sources are not readily or 
        reasonably available; or
        (iii) if the President determines that such articles or services are 
        essential to the national security under defense coproduction 
agreements;
      (B) to products or services provided under contracts entered into before 
      the date on which the President publishes his intention to impose 
      sanctions;
      (C) to--
        (i) spare parts,
        (ii) component parts, but not finished products, essential to United 
        States products or production, or
        (iii) routine servicing and maintenance of products, to the extent that 
        alternative sources are not readily or reasonably available;
      (D) to information and technology essential to United States products or 
      production; or
      (E) to medical or other humanitarian items.
  (d) TERMINATION OF SANCTIONS- The sanctions imposed pursuant to this section 
  shall apply for a period of at least 12 months following the imposition of 
  sanctions and shall cease to apply thereafter only if the President determines 
  and certifies to the Congress that reliable information indicates that the 
  foreign person with respect to which the determination was made under 
  subsection (a)(1) has ceased to aid or abet any foreign government, project, 
  or entity in its efforts to acquire chemical or biological weapons capability 
  as described in that subsection.
  (e) WAIVER- 
    (1) CRITERION FOR WAIVER- The President may waive the application of any 
    sanction imposed on any person pursuant to this section, after the end
of the 12-month period beginning on the date on which that sanction was imposed 
on that person, if the President determines and certifies to Congress that such 
waiver is important to the national security interests of the United States. 
    (2) NOTIFICATION OF AND REPORT TO CONGRESS- If the President decides to 
    exercise the waiver authority provided in paragraph (1), the President shall 
    so notify the Congress not less than 20 days before the waiver takes effect. 
    Such notification shall include a report fully articulating the rationale 
    and circumstances which led the President to exercise the waiver authority.
  (f) DEFINITION OF FOREIGN PERSON- For the purposes of this section, the term 
  `foreign person' means--
    (1) an individual who is not a citizen of the United States or an alien 
    admitted for permanent residence to the United States; or
    (2) a corporation, partnership, or other entity which is created or 
    organized under the laws of a foreign country or which has its principal 
    place of business outside the United States.
SEC. 506. ENFORCEMENT.
  (a) General Authority and Designation- 
    (1) POLICY GUIDANCE ON ENFORCEMENT- The Secretary, in consultation with the 
    Secretary of the Treasury and the heads of other departments and agencies 
    that the Secretary considers appropriate, shall be responsible for providing 
    policy guidance on the enforcement of this Act.
    (2) General authorities- 
      (A) EXERCISE OF AUTHORITY- To the extent necessary or appropriate to the 
      enforcement of this Act, officers and employees of the Department 
      designated by the Secretary, officers and employees of the United States 
      Customs Service designated by the Commissioner of Customs, and officers 
      and employees of any other department or agency designated by the head of 
      a department or agency exercising functions under this Act, may exercise 
      the enforcement authority under paragraph (3).
      (B) CUSTOMS SERVICE- In carrying out enforcement authority under paragraph 
      (3), the Commissioner of Customs and employees of the United States 
      Customs Service designated by the Commissioner may make investigations 
      within or outside the United States and at ports of entry into or exit 
      from the United States where officers of the United States Customs Service 
      are authorized by law to carry out law enforcement responsibilities. 
      Subject to paragraph (3), the United States Customs Service is authorized, 
      in the enforcement of this Act, to search, detain (after search), and 
      seize items at the ports of entry into or exit from the United States 
      where officers of the United States Customs Service are authorized by law 
      to conduct searches, detentions, and seizures, and at the places outside 
      the United States where the United States Customs Service, pursuant to 
      agreement or other arrangement with other countries, is authorized to 
      perform enforcement activities.
      (C) OTHER EMPLOYEES- In carrying out enforcement authority under paragraph 
      (3), the Secretary and officers and employees of the Department designated 
      by the Secretary may make investigations within the United States, and may 
      conduct, outside the United States, pre-license and post-shipment 
      verifications of controlled items and investigations in the enforcement of 
      section 502. The Secretary and officers and employees of the Department 
      designated by the Secretary are authorized to search, detain (after 
      search), and seize items at places within the United States other than 
      ports referred to in subparagraph (B). The search, detention (after 
      search), or seizure of items at the ports and places referred to in 
      subparagraph (B) may be conducted by officers and employees of the 
      Department only with the concurrence of the Commissioner of Customs or a 
      person designated by the Commissioner.
      (D) AGREEMENTS AND ARRANGEMENTS- The Secretary and the Commissioner of 
      Customs may enter into agreements and arrangements for the enforcement of 
      this Act, including foreign investigations and information exchange.
    (3) Specific authorities- 
      (A) ACTIONS BY ANY DESIGNATED PERSONNEL- Any officer or employee 
      designated under paragraph (2), in carrying out the enforcement authority 
      under this Act, may do the following:
        (i) Make investigations of, obtain information from, make inspection of 
        any books, records, or reports (including any writings required to be 
        kept by the Secretary), premises, or property of, and take the sworn 
        testimony of, any person.
        (ii) Administer oaths or affirmations, and by subpoena require any 
        person to appear and testify or to appear and produce books, records, 
        and other writings, or both. In the case of contumacy by, or refusal to 
        obey a subpoena issued to, any such person, a district court of the 
        United States, on request of the Attorney General and after notice to 
        any such person and a hearing, shall have jurisdiction to issue an order 
        requiring such person to appear and give testimony or to appear and 
        produce books, records, and other writings, or both. Any failure to obey 
        such order of the court may be punished by such court as a contempt 
        thereof. The attendance of witnesses and the production of documents 
        provided for in this clause may be required from any State, the District 
        of Columbia, or in any territory of the United States at any designated 
        place. Witnesses subpoenaed under this subsection shall be paid the same 
        fees and mileage allowance as paid witnesses in the district courts of 
        the United States.
      (B) ACTIONS BY OFFICE OF EXPORT ENFORCEMENT AND CUSTOMS SERVICE PERSONNEL- 

        (i) OFFICE OF EXPORT ENFORCEMENT AND CUSTOMS SERVICE PERSONNEL- Any 
        officer or employee of the Office of Export Enforcement of the 
        Department of Commerce (in this Act referred to as `OEE') who is 
        designated by the Secretary under paragraph (2), and any officer or 
        employee of the United States Customs Service who is designated by the 
        Commissioner of Customs under paragraph (2), may do the following in 
        carrying out the enforcement authority under this Act:
          (I) Execute any warrant or other process issued by a court or officer 
          of competent jurisdiction with respect to the enforcement of this Act.
          (II) Make arrests without warrant for any violation of this Act 
          committed in his or her presence or view, or if the officer or 
          employee has probable cause
to believe that the person to be arrested has committed, is committing, or is 
about to commit such a violation. 
          (III) Carry firearms.
        (ii) OEE PERSONNEL- Any officer or employee of the OEE designated by the 
        Secretary under paragraph (2) shall exercise the authority set forth in 
        clause (i) pursuant to guidelines approved by the Attorney General.
      (C) OTHER ACTIONS BY CUSTOMS SERVICE PERSONNEL- Any officer or employee of 
      the United States Customs Service designated by the Commissioner of 
      Customs under paragraph (2) may do the following in carrying out the 
      enforcement authority under this Act:
        (i) Stop, search, and examine a vehicle, vessel, aircraft, or person on 
        which or whom the officer or employee has reasonable cause to suspect 
        there is any item that has been, is being, or is about to be exported 
        from or transited through the United States in violation of this Act.
        (ii) Detain and search any package or container in which the officer or 
        employee has reasonable cause to suspect there is any item that has 
        been, is being, or is about to be exported from or transited through the 
        United States in violation of this Act.
        (iii) Detain (after search) or seize any item, for purposes of securing 
        for trial or forfeiture to the United States, on or about such vehicle, 
        vessel, aircraft, or person or in such package or container, if the 
        officer or employee has probable cause to believe the item has been, is 
        being, or is about to be exported from or transited through the United 
        States in violation of this Act.
    (4) OTHER AUTHORITIES NOT AFFECTED- The authorities conferred by this 
    section are in addition to any authorities conferred under other laws.
  (b) FORFEITURE- 
    (1) IN GENERAL- Any tangible items lawfully seized under subsection (a) by 
    designated officers or employees shall be subject to forfeiture to the 
    United States.
    (2) APPLICABLE LAWS- Those provisions of law relating to--
      (A) the seizure, summary and judicial forfeiture, and condemnation of 
      property for violations of the customs laws;
      (B) the disposition of such property or the proceeds from the sale 
thereof;
      (C) the remission or mitigation of such forfeitures; and
      (D) the compromise of claims,
    shall apply to seizures and forfeitures incurred, or alleged to have been 
    incurred, under the provisions of this subsection, insofar as applicable and 
    not inconsistent with this Act.
    (3) FORFEITURES UNDER CUSTOMS LAWS- Duties that are imposed upon a customs 
    officer or any other person with respect to the seizure and forfeiture of 
    property under the customs laws may be performed with respect to seizures 
    and forfeitures of property under this subsection by the Secretary or any 
    officer or employee of the Department that may be authorized or designated 
    for that purpose by the Secretary (or by the Commissioner of Customs or any 
    officer or employee of the United States Customs Service designated by the 
    Commissioner), or, upon the request of the Secretary, by any other agency 
    that has authority to manage and dispose of seized property.
  (c) REFERRAL OF CASES- All cases involving violations of this Act shall be 
  referred to the Secretary for purposes of determining civil penalties and 
  administrative sanctions under section 503 or to the Attorney General for 
  criminal action in accordance with this Act or to both the Secretary and the 
  Attorney General.
  (d) UNDERCOVER INVESTIGATION OPERATIONS- 
    (1) USE OF FUNDS- With respect to any undercover investigative operation 
    conducted by the OEE that is necessary for the detection and prosecution of 
    violations of this Act--
      (A) funds made available for export enforcement under this Act may be used 
      to purchase property, buildings, and other facilities, and to lease 
      equipment, conveyances, and space within the United States, without regard 
      to sections 1341 and 3324 of title 31, United States Code, the third 
      undesignated paragraph under the heading of `miscellaneous' of the Act of 
      March 3, 1877, (40 U.S.C. 34), sections 3732(a) and 3741 of the Revised 
      Statutes of the United States (41 U.S.C. 11(a) and 22), subsections (a) 
      and (c) of section 304 of the Federal Property and Administrative Services 
      Act of 1949 (41 U.S.C. 254 (a) and (c)), and section 305 of the Federal 
      Property and Administrative Services Act of 1949 (41 U.S.C. 255);
      (B) funds made available for export enforcement under this Act may be used 
      to establish or to acquire proprietary corporations or business entities 
      as part of an undercover operation, and to operate such corporations or 
      business entities on a commercial basis, without regard to sections 1341, 
      3324, and 9102 of title 31, United States Code;
      (C) funds made available for export enforcement under this Act and the 
      proceeds from undercover operations may be deposited in banks or other 
      financial institutions without regard to the provisions of section 648 of 
      title 18, United States Code, and section 3302 of title 31, United States 
      Code; and
      (D) the proceeds from undercover operations may be used to offset 
      necessary and reasonable expenses incurred in such operations without 
      regard to the provisions of section 3302 of title 31, United States Code,
    if the Director of OEE (or an officer or employee designated by the 
    Director) certifies, in writing, that the action authorized by subparagraph 
    (A), (B), (C), or (D) for which the funds would be used is necessary for the 
    conduct of the undercover operation.
    (2) DISPOSITION OF BUSINESS ENTITIES- If a corporation or business entity 
    established or acquired as part of an undercover operation has a net value 
    of more than $250,000 and is to be liquidated, sold, or otherwise disposed 
    of, the Director of OEE shall report the circumstances to the Secretary and 
    the Comptroller General of the United States as much in advance of such 
    disposition as the Director of the OEE (or the Director's designee) 
    determines is practicable. The proceeds of the liquidation, sale, or other 
    disposition, after obligations incurred by the corporation or business 
    enterprise are met, shall be deposited in the Treasury of the United States 
    as miscellaneous receipts. Any property or equipment purchased pursuant to 
    paragraph (1) may be retained for subsequent use in undercover operations 
    under this section. When such property or equipment is no longer needed, it 
    shall be considered surplus and disposed of as surplus government property.
    (3) DEPOSIT OF PROCEEDS- As soon as the proceeds from an OEE undercover 
    investigative operation with respect to which an action is authorized and 
    carried out under this subsection are no longer
needed for the conduct of such operation, the proceeds or the balance of the 
proceeds remaining at the time shall be deposited into the Treasury of the 
United States as miscellaneous receipts. 
    (4) Audit and report- 
      (A) AUDIT- The Director of OEE shall conduct a detailed financial audit of 
      each closed OEE undercover investigative operation and shall submit the 
      results of the audit in writing to the Secretary. Not later than 180 days 
      after an undercover operation is closed, the Secretary shall submit to 
      Congress a report on the results of the audit.
      (B) REPORT- The Secretary shall submit annually to Congress a report, 
      which may be included in the annual report under section 701, specifying 
      the following information:
        (i) The number of undercover investigative operations pending as of the 
        end of the period for which such report is submitted.
        (ii) The number of undercover investigative operations commenced in the 
        1-year period preceding the period for which such report is submitted.
        (iii) The number of undercover investigative operations closed in the 
        1-year period preceding the period for which such report is submitted 
        and, with respect to each such closed undercover operation, the results 
        obtained and any civil claims made with respect to the operation.
    (5) DEFINITIONS- For purposes of paragraph (4)--
      (A) the term `closed', with respect to an undercover investigative 
      operation, refers to the earliest point in time at which all criminal 
      proceedings (other than appeals) pursuant to the investigative operation 
      are concluded, or covert activities pursuant to such operation are 
      concluded, whichever occurs later; and
      (B) the terms `undercover investigative operation' and `undercover 
      operation' mean any undercover investigative operation conducted by the 
      OEE--
        (i) in which the gross receipts (excluding interest earned) exceed 
        $25,000, or expenditures (other than expenditures for salaries of 
        employees) exceed $75,000, and
        (ii) which is exempt from section 3302 or 9102 of title 31, United 
        States Code, except that clauses (i) and (ii) shall not apply with 
        respect to the report to Congress required by paragraph (4)(B).
  (e) WIRETAPS- 
    (1) AUTHORITY- Interceptions of communications in accordance with section 
    2516 of title 18, United States Code, are authorized to further the 
    enforcement of this Act.
    (2) CONFORMING AMENDMENT- Section 2516(1) of title 18, United States Code, 
    is amended by adding at the end the following:
    `(q) any violation of, or conspiracy to violate, the Export Administration 
    Act of 2001 or the Export Administration Act of 1979.'.
  (f) POST-SHIPMENT VERIFICATIONS- 
    (1) FOR CERTAIN EXPORTS AND COUNTRIES- The Secretary shall target 
    post-shipment verifications--
      (A) to exports involving the greatest risk to national security; and
      (B) to those countries identified by the Director of Central Intelligence 
      in the most recent report that was submitted to Congress under section 721 
      of the Intelligence Authorization Act for Fiscal Year 1997 on the 
      acquisition and supply by foreign countries of dual-use items and other 
      technology useful for the development or production of weapons of mass 
      destruction.
    (2) CONDUCT OF VERIFICATIONS- The Secretary may, with the concurrence of the 
    Secretary of State--
      (A) utilize embassy personnel to conduct post-shipment verifications; and
      (B) establish guidelines and regulations allowing United States persons to 
      conduct those verifications.
  (g) REFUSAL TO ALLOW POST-SHIPMENT VERIFICATION- 
    (1) IN GENERAL- If an end user refuses to allow post-shipment verification 
    of a controlled item, the Secretary shall deny a license for the export of 
    any controlled item to such end user until such post-shipment verification 
    occurs.
    (2) RELATED PERSONS- The Secretary may exercise the authority under 
    paragraph (1) with respect to any person related through affiliation, 
    ownership, control, or position of responsibility, to any end user refusing 
    to allow post-shipment verification of a controlled item.
    (3) REFUSAL BY COUNTRY- (A) If a country with which the United States has 
    entered into an agreement providing for post-shipment verifications 
    repeatedly obstructs or otherwise denies the post-shipment verification of 
    controlled items, the Secretary shall deny a license for the export of those 
    items or any substantially identical or directly competitive items or class 
    of items to all end users in that country until such post-shipment 
    verification is allowed.
    (B) If the country in which an end user is located refuses to allow 
    post-shipment verification of a controlled item, whether or not the United 
    States has an agreement with that country providing for post-shipment 
    verifications, the Secretary may deny a license for the export of that item 
    or any substantially identical or directly competitive item or class of 
    items to all end users in that country until such post-shipment verification 
    is allowed.
  (h) FREIGHT FORWARDERS BEST PRACTICES PROGRAM AUTHORIZATION- There is 
  authorized to be appropriated for the Department of Commerce $3,500,000 and 
  such sums as may be necessary to hire 20 additional employees to assist United 
  States freight forwarders and other interested parties in developing and 
  implementing, on a voluntary basis, a `best practices' program to ensure that 
  exports of controlled items are undertaken in compliance with this Act.
  (i) END USE VERIFICATION AUTHORIZATION- 
    (1) IN GENERAL- There is authorized to be appropriated for the Department of 
    Commerce $4,500,000 and such sums as may be necessary to hire 10 additional 
    overseas investigators to be posted in the People's Republic of China, the 
    Russian Federation, the Hong Kong Special Administrative Region, the 
    Republic of India, Singapore, Egypt, and Taiwan, or any other place the 
    Secretary deems appropriate, for the purpose of verifying the end use of 
    high-risk, dual-use technology.
    (2) REPORT- Not later than 2 years after the date of enactment of this Act 
    and annually thereafter, the Department shall, in its annual report to 
    Congress on export controls, include a report on the effectiveness of the 
    end use verification activities authorized under subsection (a). The report 
    shall include the following information:
      (A) The activities of the overseas investigators of the Department.
      (B) The types of goods and technologies that were subject to end use 
      verification.
      (C) The ability of the Department's investigators to detect the illegal 
      transfer of high risk, dual-use goods and technologies.
    (3) ENHANCEMENTS- In addition to the authorization provided in paragraph 
    (1), there is authorized to be appropriated for the Department of Commerce 
    $5,000,000 to enhance its program for verifying the end use of items subject 
    to controls under this Act.
  (j) ENHANCED COOPERATION WITH UNITED STATES CUSTOMS SERVICE- Consistent with 
  the purposes of this Act, the Secretary is authorized to undertake, in 
  cooperation with the United States Customs Service, such measures as may be 
  necessary or required to enhance the ability of the United States to detect 
  unlawful exports and to enforce violations of this Act.
  (k) REFERENCE TO ENFORCEMENT- For purposes of this section, a reference to the 
  enforcement of this Act or to a violation of this Act includes a reference to 
  the enforcement or a violation of any regulation, license, or order issued 
  under this Act.
  (l) AUTHORIZATION FOR EXPORT LICENSING AND ENFORCEMENT COMPUTER SYSTEM- There 
  is authorized to be appropriated for the Department $5,000,000 and such other 
  sums as may be necessary for planning, design, and procurement of a computer 
  system to replace the Department's primary export licensing and computer 
  enforcement system.
  (m) AUTHORIZATION FOR BUREAU OF EXPORT ADMINISTRATION- The Secretary may 
  authorize, without fiscal year limitation, the expenditure of funds 
  transferred to, paid to, received by, or made available to the Bureau of 
  Export Administration as a reimbursement in accordance with section 9703 of 
  title 31, United States Code (as added by Public Law 102-393). The Secretary 
  may also authorize, without fiscal year limitation, the expenditure of funds 
  transferred to, paid to, received by, or made available to the Bureau of 
  Export Administration as a reimbursement from the Department of Justice Assets 
  Forfeiture Fund in accordance with section 524 of title 28, United States 
  Code. Such funds shall be deposited in an account and shall remain available 
  until expended.
  (n) AMENDMENTS TO TITLE 31- 
    (1) Section 9703(a) of title 31, United States Code (as added by Public Law 
    102-393) is amended by striking `or the United States Coast Guard' and 
    inserting `, the United States Coast Guard, or the Bureau of Export 
    Administration of the Department of Commerce'.
    (2) Section 9703(a)(2)(B)(i) of title 31, United States Code is amended (as 
    added by Public Law 102-393)--
      (A) by striking `or' at the end of subclause (I);
      (B) by inserting `or' at the end of subclause (II); and
      (C) by inserting at the end, the following new subclause:
          `(III) a violation of the Export Administration Act of 1979, the 
          Export Administration Act of 2001, or any regulation, license, or 
          order issued under those Acts;'.
    (3) Section 9703(p)(1) of title 31, United States Code (as added by Public 
    Law 102-393) is amended by adding at the end the following: `In addition, 
    for purposes of this section, the Bureau of Export Administration of the 
    Department of Commerce shall be considered to be a Department of the 
    Treasury law enforcement organization.'.
  (o) AUTHORIZATION FOR LICENSE REVIEW OFFICERS- 
    (1) IN GENERAL- There is authorized to be appropriated to the Department of 
    Commerce $2,000,000 to hire additional license review officers.
    (2) TRAINING- There is authorized to be appropriated to the Department of 
    Commerce $2,000,000 to conduct professional training of license review 
    officers, auditors, and investigators conducting post-shipment verification 
    checks. These funds shall be used to--
      (A) train and certify, through a formal program, new employees entering 
      these positions for the first time; and
      (B) the ongoing professional training of experienced employees on an as 
      needed basis.
  (p) AUTHORIZATION- 
    (1) IN GENERAL- There are authorized to be appropriated to the Department of 
    Commerce to carry out the purposes of this Act--
      (A) $72,000,000 for the fiscal year 2002, of which no less than 
      $27,701,000 shall be used for compliance and enforcement activities;
      (B) $73,000,000 for the fiscal year 2003, of which no less than 
      $28,312,000 shall be used for compliance and enforcement activities;
      (C) $74,000,000 for the fiscal year 2004, of which no less than 
      $28,939,000 shall be used for compliance and enforcement activities;
      (D) $76,000,000 for the fiscal year 2005, of which no less than 
      $29,582,000 shall be used for compliance and enforcement activities; and
      (E) such additional amounts, for each such fiscal year, as may be 
      necessary for increases in salary, pay, retirement, other employee 
      benefits authorized by law, and other nondiscretionary costs.
    (2) TERMINATION- The authority granted by this Act shall terminate on 
    December 31, 2005.
SEC. 507. ADMINISTRATIVE PROCEDURE.
  (a) EXEMPTIONS FROM ADMINISTRATIVE PROCEDURE- Except as provided in this 
  section, the functions exercised under this Act are excluded from the 
  operation of sections 551, 553 through 559, and 701 through 706 of title 5, 
  United States Code.
  (b) PROCEDURES RELATING TO CIVIL PENALTIES AND SANCTIONS- 
    (1) ADMINISTRATIVE PROCEDURES- Any administrative sanction imposed under 
    section 503 may be imposed only after notice and opportunity for an agency 
    hearing on the record in accordance with sections 554 through 557 of title 
    5, United States Code. The imposition of any such administrative sanction 
    shall be subject to judicial review in accordance with sections 701 through 
    706 of title 5, United States Code, except that the review shall be 
    initiated in the United States Court of Appeals for the District of Columbia 
    Circuit, which shall have jurisdiction of the review.
    (2) AVAILABILITY OF CHARGING LETTER- Any charging letter or other document 
    initiating administrative proceedings for the imposition of sanctions for 
    violations of the regulations issued under section 502 shall be made 
    available for public inspection and copying.
  (c) COLLECTION- If any person fails to pay a civil penalty imposed under 
  section 503, the Secretary may ask the Attorney General to commence a civil 
  action in an appropriate district court of the United States to recover the 
  amount imposed (plus interest at currently prevailing rates from the date of 
  the final order). No such action may be commenced more than 5 years after the 
  order imposing the civil penalty becomes final. In such an action, the 
  validity, amount, and appropriateness of such penalty shall not be subject to 
  review.
  (d) IMPOSITION OF TEMPORARY DENIAL ORDERS- 
    (1) GROUNDS FOR IMPOSITION- In any case in which there is reasonable cause 
    to believe that a person is engaged in or is about to engage in any act or 
    practice which constitutes or would constitute a violation of this Act, or 
    any regulation, order, or license issued under this Act, including any 
    diversion of goods or technology from an authorized end use or end user, and 
    in any case in which a criminal indictment has been returned against a 
    person alleging a violation of this Act or any of the statutes listed in 
    section 503, the Secretary may, without a hearing, issue an order 
    temporarily denying that person's United States export privileges (hereafter 
    in this subsection referred to as a `temporary denial order'). A temporary 
    denial order shall be effective for such period (not in excess of 180 days) 
    as the Secretary specifies in the order, but may be renewed by the 
    Secretary, following notice and an opportunity for a hearing, for additional 
    periods of not more than 180 days each.
    (2) ADMINISTRATIVE APPEALS- The person or persons subject to the issuance or 
    renewal of a temporary denial order may appeal the issuance or renewal of 
    the temporary denial order, supported by briefs and other material, to an 
    administrative law judge who shall, within 15 working days after the appeal 
    is filed, issue a decision affirming, modifying, or vacating the temporary 
    denial order. The temporary denial order shall be affirmed if it is shown 
    that--
      (A) there is reasonable cause to believe that the person subject to the 
      order is engaged in or is about to engage in any act or practice that 
      constitutes or would constitute a violation of this Act, or any 
      regulation, order, or license issued under this Act; or
      (B) a criminal indictment has been returned against the person subject to 
      the order alleging a violation of this Act or any of the statutes listed 
      in section 503.
    The decision of the administrative law judge shall be final unless, within 
    10 working days after the date of the administrative law judge's decision, 
    an appeal is filed with the Secretary. On appeal, the Secretary shall either 
    affirm, modify, reverse, or vacate the decision of the administrative law 
    judge by written order within 10 working days after receiving the appeal. 
    The written order of the Secretary shall be final and is not subject to 
    judicial review, except as provided in paragraph (3). The materials 
    submitted to the administrative law judge and the Secretary shall constitute 
    the administrative record for purposes of review by the court.
    (3) COURT APPEALS- An order of the Secretary affirming, in whole or in part, 
    the issuance or renewal of a temporary denial order may, within 15 days 
    after the order is issued, be appealed by a person subject to the order to 
    the United States Court of Appeals for the District of Columbia Circuit, 
    which shall have jurisdiction of the appeal. The court may review only those 
    issues necessary to determine whether the issuance of the temporary denial 
    order was based on reasonable cause to believe that the person subject to 
    the order was engaged in or was about to engage in any act or practice that 
    constitutes or would constitute a violation of this title, or any 
    regulation, order, or license issued under this Act, or whether a criminal 
    indictment has been returned against the person subject to the order 
    alleging a violation of this Act or of any of the statutes listed in section 
    503. The court shall vacate the Secretary's order if the court finds that 
    the Secretary's order is arbitrary, capricious, an abuse of discretion, or 
    otherwise not in accordance with law.
  (e) LIMITATIONS ON REVIEW OF CLASSIFIED INFORMATION- Any classified 
  information that is included in the administrative record that is subject to 
  review pursuant to subsection (b)(1) or (d)(3) may be reviewed by the court 
  only on an ex parte basis and in camera.
TITLE VI--EXPORT CONTROL AUTHORITY AND REGULATIONS
SEC. 601. EXPORT CONTROL AUTHORITY AND REGULATIONS.
  (a) EXPORT CONTROL AUTHORITY- 
    (1) IN GENERAL- Unless otherwise reserved to the President or a department 
    (other than the Department) or agency of the United States, all power, 
    authority, and discretion conferred by this Act shall be exercised by the 
    Secretary.
    (2) DELEGATION OF FUNCTIONS OF THE SECRETARY- The Secretary may delegate any 
    function under this Act, unless otherwise provided, to the Under Secretary 
    of Commerce for Export Administration or to any other officer of the 
    Department.
  (b) UNDER SECRETARY OF COMMERCE; ASSISTANT SECRETARIES- 
    (1) UNDER SECRETARY OF COMMERCE- There shall be within the Department an 
    Under Secretary of Commerce for Export Administration (in this section 
    referred to as the `Under Secretary') who shall be appointed by the 
    President, by and with the advice and consent of the Senate. The Under 
    Secretary shall carry out all functions of the Secretary under this Act and 
    other provisions of law relating to national security, as the Secretary may 
    delegate.
    (2) ADDITIONAL ASSISTANT SECRETARIES- In addition to the number of Assistant 
    Secretaries otherwise authorized for the Department of Commerce, there shall 
    be within the Department of Commerce the following Assistant Secretaries of 
    Commerce:
      (A) An Assistant Secretary for Export Administration who shall be 
      appointed by the President, by and with the advice and consent of the 
      Senate, and who shall assist the Secretary and the Under Secretary in 
      carrying out functions relating to export listing and licensing.
      (B) An Assistant Secretary for Export Enforcement who shall be appointed 
      by the President, by and with the advice and consent of the Senate, and 
      who shall assist the Secretary and the Under Secretary in carrying out 
      functions relating to export enforcement.
  (c) ISSUANCE OF REGULATIONS- 
    (1) IN GENERAL- The President and the Secretary may issue such regulations 
    as are necessary to carry out this Act. Any such regulations the purpose of 
    which is to carry out title II or title III may be issued only after the 
    regulations are submitted for review to such departments or agencies as the 
    President considers appropriate. The Secretary shall consult with the 
    appropriate export control advisory committee appointed under section 105(a) 
    in formulating regulations under this title. The second sentence of this 
    subsection does not require the concurrence or approval of any official, 
    department, or agency to which such regulations are submitted.
    (2) AMENDMENTS TO REGULATIONS- If the Secretary proposes to amend 
    regulations issued under this Act, the Secretary shall report to the 
    Committee on Banking, Housing, and Urban Affairs of the Senate and the 
    Committee on International Relations of the House of Representatives on the 
    intent and rationale of such amendments. Such report shall evaluate the cost 
    and burden to the United States exporters of the proposed amendments in 
    relation to any enhancement of licensing objectives. The Secretary shall 
    consult with the appropriate export control advisory committees appointed 
    under section 105(a) in amending regulations issued under this Act.
    (3) REGULATIONS ON EXPORTS TO FOREIGN NATIONALS- The Secretary, with the 
    concurrence of the
Secretary of State and the Secretary of Defense, shall issue regulations to 
govern the release of technology to a foreign national within the United States 
and to establish appropriate procedures and entities to ensure compliance with 
those regulations. 
SEC. 602. CONFIDENTIALITY OF INFORMATION.
  (a) EXEMPTIONS FROM DISCLOSURE- 
    (1) INFORMATION OBTAINED ON OR BEFORE JUNE 30, 1980- Except as otherwise 
    provided by the third sentence of section 502(c)(2) and by section 
    507(b)(2), information obtained under the Export Administration Act of 1979, 
    or any predecessor statute, on or before June 30, 1980, which is deemed 
    confidential, including Shipper's Export Declarations, or with respect to 
    which a request for confidential treatment is made by the person furnishing 
    such information, shall not be subject to disclosure under section 552 of 
    title 5, United States Code, and such information shall not be published or 
    disclosed, unless the Secretary determines that the withholding thereof is 
    contrary to the national interest.
    (2) INFORMATION OBTAINED AFTER JUNE 30, 1980- Except as otherwise provided 
    by the third sentence of section 502(c)(2) and by section 507(b)(2), 
    information obtained under this Act, under the Export Administration Act of 
    1979 after June 30, 1980, or under the Export Administration regulations as 
    maintained and amended under the authority of the International Emergency 
    Economic Powers Act (50 U.S.C. 1706), may be withheld from disclosure only 
    to the extent permitted by statute, except that information submitted, 
    obtained, or considered in connection with an application for an export 
    license or other export authorization (or recordkeeping or reporting 
    requirement) under the Export Administration Act of 1979, under this Act, or 
    under the Export Administration regulations as maintained and amended under 
    the authority of the International Emergency Economic Powers Act (50 U.S.C. 
    1706), including--
      (A) the export license or other export authorization itself,
      (B) classification requests described in section 401(h),
      (C) information or evidence obtained in the course of any investigation by 
      an officer or employee of the Department of Commerce,
      (D) information obtained or furnished under title V in connection with any 
      international agreement, treaty, or other obligation, and
      (E) information obtained in making the determinations set forth in section 
      211 of this Act,
    and information obtained in any investigation of an alleged violation of 
    section 502 of this Act except for information required to be disclosed by 
    section 502(c)(2) or 507(b)(2) of this Act, shall be withheld from public 
    disclosure and shall not be subject to disclosure under section 552 of title 
    5, United States Code, unless the release of such information is determined 
    by the Secretary to be in the national interest.
  (b) INFORMATION TO CONGRESS AND GAO- 
    (1) IN GENERAL- Nothing in this title shall be construed as authorizing the 
    withholding of information from Congress or from the General Accounting 
    Office.
    (2) AVAILABILITY TO THE CONGRESS--
      (A) IN GENERAL- Any information obtained at any time under this title or 
      under any predecessor Act regarding the control of exports, including any 
      report or license application required under this title, shall be made 
      available to any committee or subcommittee of Congress of appropriate 
      jurisdiction upon the request of the chairman or ranking minority member 
      of such committee or subcommittee.
      (B) PROHIBITION ON FURTHER DISCLOSURE- No committee, subcommittee, or 
      Member of Congress shall disclose any information obtained under this Act 
      or any predecessor Act regarding the control of exports which is submitted 
      on a confidential basis to the Congress under subparagraph (A) unless the 
      full committee to which the information is made available determines that 
      the withholding of the information is contrary to the national interest.
    (3) AVAILABILITY TO THE GAO- 
      (A) IN GENERAL- Notwithstanding subsection (a), information described in 
      paragraph (2) shall, consistent with the protection of intelligence, 
      counterintelligence, and law enforcement sources, methods, and activities, 
      as determined by the agency that originally obtained the information, and 
      consistent with the provisions of section 716 of title 31, United States 
      Code, be made available only by the agency, upon request, to the 
      Comptroller General of the United States or to any officer or employee of 
      the General Accounting Office authorized by the Comptroller General to 
      have access to such information.
      (B) PROHIBITION ON FURTHER DISCLOSURES- No officer or employee of the 
      General Accounting Office shall disclose, except to Congress in accordance 
      with this paragraph, any such information which is submitted on a 
      confidential basis and from which any individual can be identified.
  (c) INFORMATION EXCHANGE- Notwithstanding subsection (a), the Secretary and 
  the Commissioner of Customs shall exchange licensing and enforcement 
  information with each other as necessary to facilitate enforcement efforts and 
  effective license decisions.
  (d) PENALTIES FOR DISCLOSURE OF CONFIDENTIAL INFORMATION- 
    (1) DISCLOSURE PROHIBITED- No officer or employee of the United States, or 
    any department or agency thereof, may publish, divulge, disclose, or make 
    known in any manner or to any extent not authorized by law any information 
    that--
      (A) the officer or employee obtains in the course of his or her employment 
      or official duties or by reason of any examination or investigation made 
      by, or report or record made to or filed with, such department or agency, 
      or officer or employee thereof; and
      (B) is exempt from disclosure under this section.
    (2) CRIMINAL PENALTIES- Any such officer or employee who knowingly violates 
    paragraph (1) shall be fined not more than $50,000, imprisoned not more than 
    1 year, or both, for each violation of paragraph (1). Any such officer or 
    employee may also be removed from office or employment.
    (3) CIVIL PENALTIES; ADMINISTRATIVE SANCTIONS- The Secretary may impose a 
    civil penalty of not more than $5,000 for each violation of paragraph (1), 
    except that no civil penalty may be imposed on an officer or employee of the 
    United States, or any department or agency thereof, without the concurrence 
    of the department or agency employing such officer or employee. Subsections 
    503(e), (g), (h), and (i) and 507(a), (b), and (c) shall apply to actions to 
    impose civil penalties under this paragraph. At the request of the 
    Secretary, a department or agency employing an officer or employee 
    determined to have violated paragraph (1) shall deny that officer or 
    employee access to information exempt from disclosure under this section. 
    Any officer or employee who commits a violation
of paragraph (1) may also be removed from office or employment by the employing 
agency. Any officer or employee who commits such violation may also be removed 
from office or employment for the violation of paragraph (1). Sections 503 (e), 
(g), (h), and (i) and 507 (a), (b), and (c) shall apply to violations described 
in this paragraph. 
[Struck out->] TITLE VII--EXPORTS OF SATELLITES [<-Struck out]
[Struck out->] SEC. 701. APPLICABILITY. [<-Struck out]
  [Struck out->] This title applies with respect to exports, and all 
  applications for licenses to export, satellites and related items, 
  notwithstanding any other provision of this or any other Act. [<-Struck out]
[Struck out->] SEC. 702. EXPORT CONTROLS ON SATELLITES AND RELATED ITEMS. 
[<-Struck out]
  [Struck out->] All satellites and related items that were on the Commerce 
  Control List of dual-use items in the Export Administration Regulations (15 
  C.F.R. part 730 et seq.) on October 16, 1998, shall, subject to sections 703 
  and 704, be controlled under this Act. [<-Struck out]
[Struck out->] SEC. 703. EXPORT LICENSE PROCEDURES. [<-Struck out]
  [Struck out->] (a) REFERRAL TO OTHER DEPARTMENTS AND AGENCIES- The Secretary 
  shall refer to the Secretary of Defense, the Secretary of State, and the heads 
  of other departments and agencies that the Secretary considers appropriate, 
  all applications for licenses to export satellites and related items. 
  [<-Struck out]
  [Struck out->] (b) REQUIRED CONSULTATIONS WITH INTELLIGENCE COMMUNITY- The 
  Secretary, the Secretary of Defense, and the Secretary of State, as 
  appropriate, shall consult with the Director of Central Intelligence during 
  the review of any application for a license involving the overseas launch of a 
  commercial satellite of United States origin. [<-Struck out]
  [Struck out->] (c) TIME PERIOD FOR REFERRALS- Within 30 days after the 
  Secretary refers an export license application under this section, each 
  department or agency to which an export license application has been referred 
  shall provide the Secretary with a recommendation to either approve or deny 
  the license application. A department or agency that fails to provide a 
  recommendation within that 30-day period shall be deemed to have no objection 
  to the decision of the Secretary on the license application. [<-Struck out]
  [Struck out->] (d) INTERAGENCY DISPUTE RESOLUTION PROCESS- If there is no 
  agreement among the Secretary, the Secretary of Defense, and the Secretary of 
  State to issue or deny a license to which this section applies, then the 
  Secretary shall refer the license application to an interagency dispute 
  resolution process established by the President. The dispute resolution 
  process shall be completed within a period of 60 days. A license pursuant to 
  the application shall not be issued or denied until the Secretary, the 
  Secretary of Defense, and the Secretary of State agree to issue or deny the 
  license, or until the President makes a determination to issue or deny the 
  license. [<-Struck out]
[Struck out->] SEC. 704. MANDATORY STATE DEPARTMENT REVIEW. [<-Struck out]
  [Struck out->] (a) CERTAIN DEFENSE SERVICES- The provision of defense services 
  by United States persons, including services or assistance provided during 
  technical interchange meetings, in connection with the launch of a satellite 
  from, or by nationals of, the People's Republic of China, are subject to 
  section 38 of the Arms Export Control Act. [<-Struck out]
  [Struck out->] (b) NOTIFICATION TO CONGRESS- At least 30 days before any 
  export license or any technical assistance agreement is approved under 
  subsection (a), the President shall transmit a certification with respect to 
  such export license or technical assistance agreement pursuant to section 
  36(c) of the Arms Export Control Act, without regard to the value limitation 
  thereunder. [<-Struck out]
[Struck out->] SEC. 705. DEFINITIONS. [<-Struck out]
  [Struck out->] In this title: [<-Struck out]
    [Struck out->] (1) DEFENSE SERVICE- The term `defense service' shall have 
    the meaning set forth in section 47 of the Arms Export Control Act or 
    regulations issued thereunder. [<-Struck out]
    [Struck out->] (2) RELATED ITEMS- The term `related items' means the 
    satellite fuel, ground support equipment, test equipment, payload adapter or 
    interface hardware, replacement parts, and nonembedded solid propellant 
    orbit transfer engines described in the report submitted to Congress by the 
    Department of State on February 6, 1998, pursuant to section 38(f) of the 
    Arms Export Control Act (22 U.S.C. 2778(f)), as well as systems, components, 
    parts, accessories, and associated equipment for satellites, including 
    ground control equipment. [<-Struck out]
    [Struck out->] (3) SATELLITE- The term `satellite' means any commercial 
    communications satellite. [<-Struck out]
[Struck out->] SEC. 706. CONFORMING AMENDMENTS. [<-Struck out]
  [Struck out->] (a) 1999 NDAA- (1) Section 1513(a) of the Strom Thurmond 
  National Defense Authorization Act for Fiscal Year 1999 (22 U.S.C. 2778 note) 
  is repealed. [<-Struck out]
  [Struck out->] (2) Section 1513(c) of that Act is amended by striking `(1) 
  Subsection (a)' and all that follows through `(2)'. [<-Struck out]
  [Struck out->] (3) Section 1514(a)(6) of that Act is amended by striking 
  `Secretary of State' and inserting `Secretary of Commerce and the Secretary of 
  State'. [<-Struck out]
  [Struck out->] (b) 2000 NDAA- (1) Section 1404 of the National Defense 
  Authorization Act for Fiscal Year 2000 (22 U.S.C. 2778 note) is amended in the 
  matter preceding paragraph (1), by striking `Secretary of State' and inserting 
  `Secretary of Commerce or the Secretary of State, as the case may be,'. 
  [<-Struck out]
  [Struck out->] (2) Section 1410 of that Act, and the item relating to that 
  section in the table of contents of that Act, are repealed. [<-Struck out]
  [Struck out->] (3) Section 1411(a) of that Act is amended in the first 
  sentence by striking `involving the overseas launch of a commercial satellite 
  of United States origin' and inserting `to provide defense services referred 
  to in section 704 of the Export Administration Act of 2001, in connection with 
  the launch of a satellite'. [<-Struck out]
  [Struck out->] (4) Section 1412(d) of that Act is amended by striking 
  `Secretary of State and' and inserting `Secretary of Commerce, the Secretary 
  of State, and'. [<-Struck out]
  [Struck out->] (c) ADDITIONAL CONFORMING AMENDMENTS- (1) Section 1309 of the 
  Admiral James W. Nance and Meg Donovan Foreign Relations Authorization Act, 
  Fiscal Years 2000 and 2001 (as enacted by Public Law 106-113; 113 Stat. 
  1501A-460) is amended-- [<-Struck out]
    [Struck out->] (A) by amending the section heading to read as follows: 
    [<-Struck out]
[Struck out->] `SEC. 1309. OFFICE OF DEFENSE TRADE CONTROLS.'; [<-Struck out]
    [Struck out->] (B) by striking subsections (a) and (c); and [<-Struck out]
    [Struck out->] (C) in subsection (b), by striking `(b) FINANCIAL AND 
    PERSONNEL RESOURCES- '. [<-Struck out]
  [Struck out->] (2) The table of contents of that Act is amended by striking 
  the item relating to section 1309 and inserting the following: [<-Struck out]
    [Struck out->] `Sec. 1309. Office of Defense Trade Controls.'. [<-Struck 
out]
[Struck out->] SEC. 707. EFFECTIVE DATE. [<-Struck out]
  [Struck out->] (a) IN GENERAL- This title and the amendments made by this Act 
  shall take effect on the date of the enactment of this Act, and shall apply to 
  any export license application made under the Arms Export Control Act before 
  such date of enactment which is pending on such date, and to any export 
  license application made on or after such date. [<-Struck out]
  [Struck out->] (b) TRANSFER OF PENDING APPLICATIONS- Any export license 
  application made under the Arms Export Control Act before the date of the 
  enactment of this Act, to which section 702 of this Act applies and which is 
  pending on such date of enactment, shall be transferred to the Department of 
  Commerce upon the enactment of this Act. [<-Struck out]
[Struck out->] SEC. 708. EFFECT ON EXISTING LAW. [<-Struck out]
  [Struck out->] Nothing in this title shall affect the continued application of 
  section 36 or 38 of the Arms Export Control Act, or any other provision of 
  that Act, to the export or other provision of defense services related to 
  items in Category 4 of the United States Munitions List. [<-Struck out]
TITLE VIII VII--MISCELLANEOUS PROVISIONS
SEC. 801 701. ANNUAL REPORT.
  (a) ANNUAL REPORT- Not later than February 1 of each year, the Secretary shall 
  submit to Congress a report on the administration of this Act during the 
  fiscal year ending September 30 of the preceding calendar year. All Federal 
  agencies shall cooperate fully with the Secretary in providing information for 
  each such report.
  (b) REPORT ELEMENTS- Each such report shall include in detail--
    (1) a description of the implementation of the export control policies 
    established by this Act, including any delegations of authority by the 
    President and any other changes in the exercise of delegated authority;
    (2) a description of the changes to and the year-end status of country 
    tiering and the Control List;
    (3) a description of the petitions filed and the determinations made with 
    respect to foreign availability and mass-market status, the set-asides of 
    foreign availability and mass-market status determinations, and negotiations 
    to eliminate foreign availability;
    (4) a description of any enhanced control imposed on an item pursuant to 
    section 201(d);
    (5) a description of the regulations issued under this Act;
    (6) a description of organizational and procedural changes undertaken in 
    furtherance of this Act;
    (7) a description of the enforcement activities, violations, and sanctions 
    imposed under this Act;
    (8) a statistical summary of all applications and notifications, including--
      (A) the number of applications and notifications pending review at the 
      beginning of the fiscal year;
      (B) the number of notifications returned and subject to full license 
      procedure;
      (C) the number of notifications with no action required;
      (D) the number of applications that were approved, denied, or withdrawn, 
      and the number of applications where final action was taken; and
      (E) the number of applications and notifications pending review at the end 
      of the fiscal year;
    (9) summary of export license data by export identification code and dollar 
    value by country;
    (10) an identification of processing time by--
      (A) overall average, and
      (B) top 25 export identification codes;
    (11) an assessment of the effectiveness of multilateral regimes, and a 
    description of negotiations regarding export controls;
    (12) a description of the significant differences between the export control 
    requirements of the United States and those of other multilateral control 
    regime members, and the specific differences between United States 
    requirements and those of other significant supplier countries;
    (13) an assessment of the costs of export controls;
    (14) a description of the progress made toward achieving the goals 
    established for the Department dealing with export controls under the 
    Government Performance Results Act;
    (15) an analysis and risk assessment of dual-use United States-origin items 
    useful for the development or production of weapons of mass destruction 
    acquired by countries identified by the Director of the Central Intelligence 
    in the most recent report submitted to Congress under section 721 of the 
    Intelligence Authorization Act for Fiscal Year 1997; and
    (16) any other reports required by this Act to be submitted to the Committee 
    on Banking, Housing, and Urban Affairs of the Senate and the Committee on 
    International Relations of the House of Representatives.
  (c) FEDERAL REGISTER PUBLICATION REQUIREMENTS- Whenever information under this 
  Act is required to be published in the Federal Register, such information 
  shall, in addition, be posted on the Department of Commerce or other 
  appropriate government website.
SEC. 802 702. RELATIONSHIP TO THE ARMS EXPORT CONTROL ACT.
  Nothing in this Act shall be construed to alter or affect--
    (1) any provision of the Arms Export Control Act; or
    (2) any authority delegated by the President to the Secretary of State under 
    the Arms Export Control Act.
SEC. 803 703. ENHANCEMENT OF CONGRESSIONAL OVERSIGHT OF NUCLEAR TRANSFERS TO 
NORTH KOREA.
  The North Korea Threat Reduction Act of 1999 (subtitle B of title VIII of 
  division A of H.R. 3427, as enacted into law by section 1000(a)(7) of Public 
  Law 106-113, and as contained in appendix G to such Public Law) is amended in 
  section 822(a)--
    (1) by redesignating paragraphs (1) through (7) as subparagraphs (A) through 
    (G), respectively, and by indenting each such subparagraph 2 ems to the 
    right;
    (2) by striking `until the President' and inserting `until--
    `(1) the President';
    (3) at the end of subparagraph (G) (as redesignated in paragraph (1)) by 
    striking the period and inserting `; and
    `(2) a joint resolution of the two Houses of Congress is enacted into law--
      `(A) the matter after the resolving clause of which is as follows: `That 
      the Congress hereby concurs in the determination and report of the 
      President relating to compliance by North Korea with certain international 
      obligations transmitted pursuant to section 822(a)(1) of the North Korea 
      Threat Reduction Act of 1999.';
      `(B) which does not have a preamble; and
      `(C) the title of which is as follows: `Joint Resolution relating to 
      compliance by North Korea with certain international obligations pursuant 
      to the North Korea Threat Reduction Act of 1999.'.'; and
    (4) by striking `such agreement,' both places it appears and inserting in 
    both places `such agreement (or that are controlled under the Export Trigger 
    List of the Nuclear Suppliers Group),'.
SEC. 804 704. PROCEDURES FOR CONSIDERATION OF JOINT RESOLUTIONS.
  The North Korea Threat Reduction Act of 1999 is amended--
    (1) by redesignating section 823, and the item relating to that section in 
    the table of contents, as section 824;
    (2) by inserting after section 822 the following new section:
`SEC. 823. PROCEDURES FOR CONSIDERATION OF JOINT RESOLUTION DESCRIBED IN SECTION 
822(A)(2).
  `(a) RULEMAKING- The provisions of this section are enacted by the Congress--
    `(1) as an exercise of the rulemaking power of the House of Representatives 
    and the Senate, respectively, and, as such, shall be considered as part of 
    the rules of either House and shall supersede other rules only to the extent 
    they are inconsistent therewith; and
    `(2) with full recognition of the constitutional right of either House to 
    change the rules so far as they
relate to the procedures of that House at any time, in the same manner, and to 
the same extent as in the case of any other rule of that House. 
  `(b) INTRODUCTION AND REFERRAL- 
    `(1) INTRODUCTION- A joint resolution described in section 822(a)(2)--
      `(A) shall be introduced in the House of Representatives by the majority 
      leader or minority leader or by a Member of the House of Representatives 
      designated by the majority leader or minority leader; and
      `(B) shall be introduced in the Senate by the majority leader or minority 
      leader or a Member of the Senate designated by the majority leader or 
      minority leader.
    `(2) REFERRAL- The joint resolution shall be referred to the Committee on 
    International Relations of the House of Representatives and the Committee on 
    Foreign Relations of the Senate.
  `(c) DISCHARGE OF COMMITTEES- If a committee to which a joint resolution 
  described in section 822(a)(2) is referred has not reported such joint 
  resolution by the end of 30 days beginning on the date of its introduction, 
  such committee shall be discharged from further consideration of such joint 
  resolution, and such joint resolution shall be placed on the appropriate 
  calendar of the House involved.
  `(d) FLOOR CONSIDERATION IN THE HOUSE OF REPRESENTATIVES- 
    `(1) IN GENERAL- On or after the third calendar day (excluding Saturdays, 
    Sundays, or legal holidays, except when the House of Representatives is in 
    session on such a day) after the date on which the committee to which a 
    joint resolution described in section 822(a)(2) is referred has reported, or 
    has been discharged from further consideration of, such a joint resolution, 
    it shall be in order for any Member of the House to move to proceed to the 
    consideration of the joint resolution. A Member of the House may make the 
    motion only on the day after the calendar day on which the Member announces 
    to the House the Member's intention to do so. Such motion is privileged and 
    is not debatable. The motion is not subject to amendment or to a motion to 
    postpone. A motion to reconsider the vote by which the motion is agreed to 
    shall not be in order. If a motion to proceed to the consideration of the 
    joint resolution is agreed to, the House shall immediately proceed to 
    consideration of the joint resolution which shall remain the unfinished 
    business until disposed of.
    `(2) DEBATE- Debate on a joint resolution described in section 822(a)(2), 
    and on all debatable motions and appeals in connection therewith, shall be 
    limited to not more than two hours, which shall be divided equally between 
    those favoring and those opposing the joint resolution. An amendment to the 
    joint resolution is not in order. A motion further to limit debate is in 
    order and is not debatable. A motion to table, a motion to postpone, or a 
    motion to recommit the joint resolution is not in order. A motion to 
    reconsider the vote by which the joint resolution is agreed to or disagreed 
    to is not in order.
    `(3) APPEALS- Appeals from the decisions of the Chair to the procedure 
    relating to a joint resolution described in section 822(a)(2) shall be 
    decided without debate.
  `(e) FLOOR CONSIDERATION IN THE SENATE- Any joint resolution described in 
  section 822(a)(2) shall be considered in the Senate in accordance with the 
  provisions of section 601(b)(4) of the International Security Assistance and 
  Arms Export Control Act of 1976.
  `(f) CONSIDERATION BY THE OTHER HOUSE- If, before the passage by one House of 
  a joint resolution of that House described in section 822(a)(2), that House 
  receives from the other House a joint resolution described in section 
  822(a)(2), then the following procedures shall apply:
    `(1) The joint resolution of the other House shall not be referred to a 
    committee and may not be considered in the House receiving it except in the 
    case of final passage as provided in paragraph (2)(B).
    `(2) With respect to a joint resolution described in section 822(a)(2) of 
    the House receiving the joint resolution--
      `(A) the procedure in that House shall be the same as if no joint 
      resolution had been received from the other House; but
      `(B) the vote on final passage shall be on the joint resolution of the 
      other House.
    `(3) Upon disposition of the joint resolution received from the other House, 
    it shall no longer be in order to consider the joint resolution that 
    originated in the receiving House.
  `(g) COMPUTATION OF DAYS- In the computation of the period of 30 days referred 
  to in subsection (c), there shall be excluded the days on which either House 
  of Congress is not in session because of an adjournment of more than 3 days to 
  a day certain or because of an adjournment of the Congress sine die.'; and
    (3) by inserting after the item relating to section 822 in the table of 
    contents the following new item:
    `Sec. 823. Procedures for consideration of joint resolution described in 
    section 822(a)(2).'.
SEC. 805 705. RECOMMENDATIONS OF THE JUDICIAL REVIEW COMMISSION ON FOREIGN ASSET 
CONTROL.
  In accordance with the findings of the Judicial Review Commission on Foreign 
  Asset Control contained in the report of the Commission submitted to Congress 
  in January 2001 under section 810(g) of the Foreign Narcotics Kingpin 
  Designation Act (21 U.S.C. 1908(g)), the President shall direct the Office of 
  Foreign Assets Control of the Department of the Treasury to--
    (1) publish proposed regulations on sanctions in order to provide public 
    notice of, and invite public comment on, the proposed regulations, unless 
    exigent circumstances are present;
    (2) provide interpretations and guidelines to accompany the issuance of 
    regulations; and
    (3) take steps to expand and enhance the transparency of its operations and 
    decisionmaking standards by publishing its licensing and civil penalty 
    decisions in unclassified form and by providing answers to `frequently asked 
    questions' on its website.
SEC. 806 706. IMPROVEMENTS TO THE AUTOMATED EXPORT SYSTEM.
  (a) MANDATORY FILING- The Secretary, with the concurrence of the Secretary of 
  State and the Secretary of the Treasury, shall publish regulations in the 
  Federal Register to require, upon the effective date of those regulations, the 
  mandatory filing through the Automated Export System for the remainder of 
  exports that were not covered by regulations issued pursuant to section 
  1252(b) of the Security Assistance Act of 1999 (113 Stat. 1501A-506), as 
  enacted into law by section 1000(a)(7) of Public Law 106-113.
  (b) REQUIREMENT FOR INFORMATION SHARING- The Secretary of State shall conclude 
  an information sharing arrangement with the heads of United States Customs 
  Service and the Census Bureau to adjust the Automated Export System to 
  parallel information currently collected by the Department of State.
  (c) SECRETARY OF TREASURY FUNCTIONS- Section 303 of title 13, United States 
  Code, is amended by striking `, other than by mail,'.
  (d) FILING EXPORT INFORMATION, DELAYED FILINGS, PENALTIES FOR FAILURE TO FILE- 
  Section 304 of title 13, United States Code, is amended--
    (1) in subsection (a)--
      (A) in the first sentence, by striking `the penal sum of $1,000' and 
      inserting `a penal sum of $10,000'; and
      (B) in the third sentence, by striking `a penalty not to exceed $100 for 
      each day's delinquency beyond the prescribed period, but not more than 
      $1,000, shall be exacted' and inserting `the Secretary of Commerce (and 
      officers and employees of the Department of Commerce designated by the 
      Secretary) may impose a civil penalty not to exceed $1,000 for each day's 
      delinquency beyond the prescribed period, but not more than $10,000 per 
      violation';
    (2) by redesignating subsection (b) as subsection (c); and
    (3) by inserting after subsection (a) the following:
`(b) Any person, other than a person described in subsection (a), required to 
submit export information, shall file such information in accordance with any 
rule, regulation, or order issued pursuant to this chapter. In the event any 
such information or reports are not filed within such prescribed period, the 
Secretary of Commerce (and officers and employees of the Department of Commerce 
designated by the Secretary) may impose a civil penalty not to exceed $1,000 for 
each day's delinquency beyond the prescribed period, but not more than $10,000 
per violation.'. 
  (e) ADDITIONAL PENALTIES- 
    (1) IN GENERAL- Section 305 of title 13, United States Code, is amended to 
    read as follows:
`Sec. 305. Penalties for unlawful export information activities
  `(a) CRIMINAL PENALTIES- (1) Any person who knowingly fails to file or 
  knowingly submits false or misleading export information through the Shippers 
  Export Declaration (SED) (or any successor document) or the Automated Export 
  System (AES) shall be subject to a fine not to exceed $10,000 per violation or 
  imprisonment for not more than 5 years, or both.
  `(2) Any person who knowingly reports any information on or uses the SED or 
  the AES to further any illegal activity shall be subject to a fine not to 
  exceed $10,000 per violation or imprisonment for not more than 5 years, or 
  both.
  `(3) Any person who is convicted under this subsection shall, in addition to 
  any other penalty, forfeit to the United States--
    `(A) any of that person's interest in, security of, claim against, or 
    property or contractual rights of any kind in the goods or tangible items 
    that were the subject of the violation;
    `(B) any of that person's interest in, security of, claim against, or 
    property or contractual rights of any kind in tangible property that was 
    used in the export or attempt to export that was the subject of the 
    violation; and
    `(C) any of that person's property constituting, or derived from, any 
    proceeds obtained directly or indirectly as a result of the violation.
  `(b) CIVIL PENALTIES- The Secretary (and officers and employees of the 
  Department of Commerce specifically designated by the Secretary) may impose a 
  civil penalty not to exceed $10,000 per violation on any person violating the 
  provisions of this chapter or any rule, regulation, or order issued 
  thereunder, except as provided in section 304. Such penalty may be in addition 
  to any other penalty imposed by law.
  `(c) CIVIL PENALTY PROCEDURE- (1) When a civil penalty is sought for a 
  violation of this section or of section 304, the charged party is entitled to 
  receive a formal complaint specifying the charges and, at his or her request, 
  to contest the charges in a hearing before an administrative law judge. Any 
  such hearing shall be conducted in accordance with sections 556 and 557 of 
  title 5.
  `(2) If any person fails to pay a civil penalty imposed under this chapter, 
  the Secretary may ask the Attorney General to commence a civil action in an 
  appropriate district court of the United States to recover the amount imposed 
  (plus interest at currently prevailing rates from the date of the final 
  order). No such action may be commenced more than 5 years after the order 
  imposing the civil penalty becomes final. In such action, the validity, 
  amount, and appropriateness of such penalty shall not be subject to review.
  `(3) The Secretary may remit or mitigate any penalties imposed under paragraph 
  (1) if, in his or her opinion--
    `(A) the penalties were incurred without willful negligence or fraud; or
    `(B) other circumstances exist that justify a remission or mitigation.
  `(4) If, pursuant to section 306, the Secretary delegates functions under this 
  section to another agency, the provisions of law of that agency relating to 
  penalty assessment, remission or mitigation of such penalties, collection of 
  such penalties, and limitations of actions and compromise of claims, shall 
  apply.
  `(5) Any amount paid in satisfaction of a civil penalty imposed under this 
  section or section 304 shall be deposited into the general fund of the 
  Treasury and credited as miscellaneous receipts.
  `(d) ENFORCEMENT- (1) The Secretary of Commerce may designate officers or 
  employees of the Office of Export Enforcement to conduct investigations 
  pursuant to this chapter. In conducting such investigations, those officers or 
  employees may, to the extent necessary or appropriate to the enforcement of 
  this chapter, exercise such authorities as are conferred upon them by other 
  laws of the United States, subject to policies and procedures approved by the 
  Attorney General.
  `(2) The Commissioner of Customs may designate officers or employees of the 
  Customs Service to enforce the provisions of this chapter, or to conduct 
  investigations pursuant to this chapter.
  `(e) REGULATIONS- The Secretary of Commerce shall promulgate regulations for 
  the implementation and enforcement of this section.
  `(f) EXEMPTION- The criminal fines provided for in this section are exempt 
  from the provisions of section 3571 of title 18.'.
    (2) CLERICAL AMENDMENT- The table of sections at the beginning of chapter 9 
    of title 13, United States Code, is amended by striking the item relating to 
    section 305 and inserting the following:
    `305. Penalties for unlawful export information activities.'.
SEC. 807 707. TECHNICAL AND CONFORMING AMENDMENTS.
  (a) REPEAL- The Export Administration Act of 1979 (50 U.S.C. App. 2401 et 
  seq.) is repealed.
  (b) ENERGY POLICY AND CONSERVATION ACT- 
    (1) Section 103 of the Energy Policy and Conservation Act (42 U.S.C. 6212), 
    and the item relating to that section in the table of contents for that Act, 
    are repealed.
    (2) Section 251(d) of the Energy Policy and Conservation Act (42 U.S.C. 
    6271(d)) is repealed.
  (c) ALASKA NATURAL GAS TRANSPORTATION ACT- Section 12 of the Alaska Natural 
  Gas Transportation Act of 1976 (15 U.S.C. 719j) is repealed.
  (d) MINERAL LEASING ACT- Section 28(u) of the Mineral Leasing Act (30 U.S.C. 
  185(u)) is repealed.
  (e) EXPORTS OF ALASKAN NORTH SLOPE OIL- Section 28(s) of the Mineral Leasing 
  Act (30 U.S.C. 185(s)) is repealed.
  (f) DISPOSITION OF CERTAIN NAVAL PETROLEUM RESERVE PRODUCTS- Section 7430(e) 
  of title 10, United States Code, is repealed.
  (g) OUTER CONTINENTAL SHELF LANDS ACT- Section 28 of the Outer Continental 
  Shelf Lands Act (43 U.S.C. 1354) is repealed.
  (h) ARMS EXPORT CONTROL ACT- The Arms Export Control Act is amended as 
follows:
    (1) Section 36(g) (22 U.S.C. 2776(g)) is amended by striking `12(c) of the 
    Export Administration Act of 1979' and inserting `602(c) of the Export 
    Administration Act of 2001'.
    (2) Section 38 (22 U.S.C. 2778) is amended--
      (A) in subsection (e)--
        (i) in the first sentence, by striking `subsections (c)' and all that 
        follows through `12 of such Act,' and inserting `subsections (b), (c), 
        (d), and (e) of section 503 of the Export Administration Act of 2001, by 
        subsections (a) and (b) of section 506 of that Act, and by section 602 
        of that Act,';
        (ii) in the first sentence, by striking `11(c)(2)(B)' and inserting 
        `507(b)(1)'; and
        (iii) in the third sentence, by striking `11(c) of the Export 
        Administration Act of 1979' and inserting `503(c) of the Export 
        Administration Act of 2001';
      (B) in subsection (f)(1), by striking `1979' and inserting `2001'; and
      (C) in subsection (g)(1)(A)(ii), by inserting `or section 503 of the 
      Export Administration Act of 2001' after `1979'.
    (3) Section 39A(c) (22 U.S.C. 2779a(c)) is amended--
      (A) by striking `subsections (c),' and all that follows through `12(a) of 
      such Act' and inserting `subsections (c), (d), and (e) of section 503, 
      section 507(c), and subsections (a) and (b) of section 506, of the Export 
      Administration Act of 2001';
      (B) by striking `11(c)(2)(B) of such Act' and inserting `507(b)(1) of that 
      Act'; and
      (C) by striking `11(c)' and inserting `503(c)'.
    (4) Section 40(k) (22 U.S.C. 2780(k)) is amended--
      (A) by striking `11(c), 11(e), 11(g), and 12(a) of the Export 
      Administration Act of 1979' and inserting `503(b), 503(c), 503(e), 506(a), 
      and 506(b) of the Export Administration Act of 2001';
      (B) by striking `11(c)(2)(B)' and inserting `507(b)(1)'; and
      (C) by striking `11(c)' and inserting `503(c)'.
    (5) Section 71(a) (22 U.S.C. 2797(a)) is amended by striking `section 6(l) 
    of the Export Administration Act of 1979' and inserting `title II or III of 
    the Export Administration Act of 2001'.
    (6) Section 72 (22 U.S.C. 2797a) is amended--
      (A) in subsection (a)(1)(A), by striking `section 5 or 6 of the Export 
      Administration Act of 1979 (50 U.S.C. App. 2404, 2405)' and inserting 
      `title II or III of the Export Administration Act of 2001'; and
      (B) in subsection (c), by striking `6(j)(1)(A) of the Export 
      Administration Act of 1979' and inserting `310(a)(1) of the Export 
      Administration Act of 2001'.
    (7) Section 73 (22 U.S.C. 2797b) is amended--
      (A) in subsection (a)(1), by striking `11B(b)(1) of the Export 
      Administration Act of 1979' and inserting `504(b)(1) of the Export 
      Administration Act of 2001'; and
      (B) in subsection (f), by striking `6(j)(1)(A) of the Export 
      Administration Act of 1979' and inserting `section 310(a)(1) of the Export 
      Administration Act of 2001'.
    (8) Section 74(a)(6) (22 U.S.C. 2797c(a)(6)) is amended by striking `16(2) 
    of the Export Administration Act of 1979 (50 U.S.C. App. 2415(2))' and 
    inserting `2(20) of the Export Administration Act of 2001'.
    (9) Section 81(a) (22 U.S.C. 2798(a)) is amended--
      (A) in paragraph (1)(C), by striking `1979' and inserting `2001'; and
      (B) in paragraph (2)(B), by striking `section 6(j) of the Export 
      Administration Act of 1979 (50 U.S.C. 2405(j))' and inserting `section 310 
      of the Export Administration Act of 2001'.
    (10) Section 102(b)(2)(G) (22 U.S.C. 2799aa-1(b)(2)(G)) is amended by 
    striking `section 6 of the Export Administration Act of 1979' and inserting 
    `title III of the Export Administration Act of 2001'.
  (i) OTHER PROVISIONS OF LAW- 
    (1) Section 5(b)(4) of the Trading with the Enemy Act (50 U.S.C. App. 
    5(b)(4)) is amended by striking `section 5 of the Export Administration Act 
    of 1979, or under section 6 of that Act to the extent that such controls 
    promote the nonproliferation or antiterrorism policies of the United States' 
    and inserting `titles II and III of the Export Administration Act of 2001'.
    (2)(A) Section 502B(a)(2) of the Foreign Assistance Act of 1961 (22 U.S.C. 
    2304(a)(2)) is amended in the second sentence--
      (i) by striking `Export Administration Act of 1979' the first place it 
      appears and inserting `Export Administration Act of 2001'; and
      (ii) by striking `Act of 1979)' and inserting `Act of 2001)'.
    (B) Section 620E(h) of the Foreign Assistance Act of 1961 (22 U.S.C. 
    2375(h)) is amended by striking `11B of the Export Administration Act of 
    1979' and inserting `504 of the Export Administration Act of 2001'.
    (C) Section 620H(a)(1) of the Foreign Assistance Act of 1961 (22 U.S.C. 
    2378(a)(1)) is amended by striking `section 6(j) of the Export 
    Administration Act of 1979 (50 U.S.C. App. 2405(j))' and inserting `section 
    310 of the Export Administration Act of 2001'.
    (3) Section 565 of the Foreign Relations Authorization Act, Fiscal Years 
    1994 and 1995 (22 U.S.C. 2679c) is amended--
      (A) in subsection (a)--
        (i) in paragraph (2)--
          (I) in subparagraph (A), by striking `8(a) of the Export 
          Administration Act of 1979 (50 U.S.C. App. 2407(a))' and inserting 
          `502(b) of the Export Administration Act of 2001';
          (II) in subparagraph (A), by striking `8(a)(1) of such Act' and 
          inserting `502(b)(1) of that Act'; and
          (III) in subparagraph (B), by striking `16(2) of the Export 
          Administration Act of 1979 (50 U.S.C. App. 2415)' and inserting `2(20) 
          of the Export Administration Act of 2001'; and
        (ii) in paragraph (3), by striking `8(a) of the Export Administration 
        Act of 1979 (50 U.S.C. App. 2407(a))' and inserting `502(b) of the 
        Export Administration Act of 2001'; and
      (B) in subsection (c)--
        (i) in paragraph (1), in subsection (b)(1) of the quoted material, by 
        striking `8(a) of the Export Administration Act of 1979 (50 U.S.C. App. 
        2407(a))' and
inserting `502(b) of the Export Administration Act of 2001'; and 
        (ii) in paragraph (3), by striking `8(a) of the Export Administration 
        Act of 1979 (50 U.S.C. App. 2407(a))' and inserting `502(b) of the 
        Export Administration Act of 2001'.
    (4) Section 140(a) of the Foreign Relations Authorization Act, Fiscal Years 
    1988 and 1989 (22 U.S.C. 2656f(a)) is amended--
      (A) in paragraph (1)(B), by inserting `or section 310 of the Export 
      Administration Act of 2001' after `Act of 1979'; and
      (B) in paragraph (2), by inserting `or section 310 of the Export 
      Administration Act of 2001' after `6(j) of the Export Administration Act 
      of 1979'.
    (5)(A) Section 36(j)(1)(B) of the State Department Basic Authorities Act of 
    1956 (22 U.S.C. 2708(j)(1)(B)) is amended by striking `section 6(j)(1)(A) of 
    the Export Administration Act of 1979 (50 U.S.C. App. 2405(j)(1)(A))' and 
    inserting `section 310(a)(1) of the Export Administration Act of 2001'.
    (B) Section 40(e)(1) of the State Department Basic Authorities Act of 1956 
    (22 U.S.C. 2712(e)(1)) is amended by striking `section 6(j)(1) of the Export 
    Administration Act of 1979' and inserting `section 310 of the Export 
    Administration Act of 2001'.
    (C) Section 205(d)(4)(B) of the State Department Basic Authorities Act of 
    1956 (22 U.S.C. 305(d)(4)(B)) is amended by striking `section 6(j) of the 
    Export Administration Act of 1979' and inserting `section 310 of the Export 
    Administration Act of 2001'.
    (6) Section 528(a) of the Foreign Operations, Export Financing, and Related 
    Programs Appropriations Act, 1994 (Public Law 103-87) is amended by striking 
    `6(j) of the Export Administration Act of 1979' and inserting `310 of the 
    Export Administration Act of 2001'.
    (7) Section 589(a) of the Foreign Operations, Export Financing, and Related 
    Programs Appropriations Act, 1997 (Public Law 104-208) is amended by 
    striking `6(j) of the Export Administration Act of 1979' and inserting `310 
    of the Export Administration Act of 2001'.
    (8) Section 110 of the International Security and Development Cooperation 
    Act of 1980 (22 U.S.C. 2778a) is amended by striking `Act of 1979' and 
    inserting `Act of 2001'.
    (9) Section 203(b)(3) of the International Emergency Economic Powers Act (50 
    U.S.C. 1702(b)(3)) is amended by striking `section 5 of the Export 
    Administration Act of 1979, or under section 6 of such Act to the extent 
    that such controls promote the nonproliferation or antiterrorism policies of 
    the United States' and inserting `the Export Administration Act of 2001'.
    (10)(A) Section 405(a)(13)(A) of the International Religious Freedom Act of 
    1998 (22 U.S.C. 6445(a)(13)(A)) is amended by striking `1979' and inserting 
    `2001'.
    (B) Section 423(a) of that Act (22 U.S.C. 6461(a)) is amended by striking 
    `6(n) of the Export Administration Act of 1979 (22 U.S.C. App. 2405(n))' and 
    inserting `311 of the Export Administration Act of 2001'.
    (11)(A) Section 103(e)(2)(B)(ii) of the Chemical Weapons Convention 
    Implementation Act of 1998 (22 U.S.C. 6713(e)(2)(B)(ii)) is amended to read 
    as follows:
        `(ii) SANCTIONS UNDER EXPORT ADMINISTRATION ACT OF 2001- The authorities 
        of title III of the Export Administration Act of 2001 shall be used to 
        prohibit the export to a person described in subparagraph (A) of any 
        items on the National Security Control List established under section 
        202(a) of that Act.'.
    (B) Section 103(e)(3)(B)(iv) of the Chemical Weapons Convention 
    Implementation Act of 1998 (22 U.S.C. 6713(e)(3)(B)(iv)) is amended to read 
    as follows:
        `(iv) SANCTIONS UNDER EXPORT ADMINISTRATION ACT OF 2001- The authorities 
        of title III of the Export Administration Act of 2001 shall be used to 
        prohibit the export to a country described in subparagraph (A) of any 
        items on the National Security Control List established under section 
        202(a) of that Act.'.
    (12) Section 1423(b)(1) of the Defense Against Weapons of Mass Destruction 
    Act of 1996 (50 U.S.C. 2332(b)(1)) is amended by striking `11 of the Export 
    Administration Act of 1979 (50 U.S.C. App. 2410)' and inserting `503 of the 
    Export Administration Act of 2001'.
    (13) Section 586G of the Iraq Sanctions Act of 1990 (50 U.S.C. 1701 note) is 
    amended--
      (A) by amending subsection (a)(3) to read as follows:
    `(3) EXPORTS OF CERTAIN COMMODITIES AND TECHNOLOGY- The authorities of 
    titles II and III of the Export Administration Act of 2001 shall be used to 
    prohibit the export to Iraq of any commodities or technology on the Commerce 
    Control List established under that Act.'; and
      (B) in subsection (b) by striking `the date described in subsection 
      (m)(1)' and all that follows through `shall be deemed' and inserting `the 
      dates described in section 301(d)(1) of the Export Administration Act of 
      2001 shall be deemed'.
    (14) Section 601(a) of the Nuclear Non-Proliferation Act of 1978 (22 U.S.C. 
    3281(a)) is amended--
      (A) in paragraph (6)--
        (i) in subparagraph (A)--
          (I) in clause (iii), by striking `1979' and inserting `2001'; and
          (II) in clause (iv), by adding `and' after the semicolon; and
        (ii) in subparagraph (C)--
          (I) by redesignating such subparagraph as paragraph (7) and aligning 
          the text with the text of paragraph (6) that precedes subparagraph 
          (A); and
          (II) by inserting `a description of' before `the progress'; and
      (B) in the matter that appears following paragraph (7), as so 
      redesignated--
        (i) by striking `paragraph (6)' and inserting `paragraphs (6) and (7)'; 
        and
        (ii) by striking `12(c)(1) of the Export Administration Act of 1979' and 
        inserting `602(a) of the Export Administration Act of 2001'.
    (15) Section 304(a)(2) of the Chemical and Biological Weapons Control and 
    Warfare Elimination Act of 1991 (22 U.S.C. 5603(a)(2)) is amended by 
    striking `1979' and inserting `2001'.
    (16) Section 307 of the Chemical and Biological Weapons Control and Warfare 
    Elimination Act of 1991 (22 U.S.C. 5605) is amended--
      (A) by amending paragraph (5) of subsection (a) to read as follows:
    `(5) EXPORTS OF CERTAIN GOODS AND TECHNOLOGY- The authorities of title III 
    of the Export Administration Act of 2001 shall be used to prohibit the 
    export to that country of any goods or technology on the National Security 
    Control List established under section 202 of that Act.';
      (B) in subsection (b)(2)(C) by striking `section 6 of the Export 
      Administration Act of 1979' and inserting `title III of the Export 
      Administration Act of 2001'; and
      (C) in subsection (e)(1)(B)--
        (i) in the first sentence, by striking `subsection (p) of section 6 of 
        the Export Administration Act of 1979 (50 U.S.C. App. 2405), as that 
        subsection is so redesignated by section 304(b) of this title, which are 
        applicable to exports prohibited under section 6 of that Act' and 
        inserting `section 301(d) of the Export Administration Act of 2001, 
        which are applicable to exports prohibited under title III of that Act'; 
        and
        (ii) in the last sentence, by striking `a breach of the peace that poses 
        a serious and direct threat to the strategic interest of the United 
        States, within the meaning of subparagraph (A) of section 6(p) of that 
        Act' and inserting `a serious threat to a foreign policy interest of the 
        United States, within the meaning of section 301(d)(2)(A) of the Export 
        Administration Act of 2001'.
    (17) Section 1705(c)(1) of the Cuban Democracy Act of 1992 (22 U.S.C. 
    6004(c)(1)) is amended by striking `5(m) of the Export Administration Act of 
    1979' and inserting `204(a) of the Export Administration Act of 2001'.
    (18)(A) Section 6(2)(i) of the Iran and Libya Sanctions Act of 1996 (50 
    U.S.C. 1701 note) is amended by striking `1979' and inserting `2001'.
    (B) Section 8(a)(2) of the Iran and Libya Sanctions Act of 1996 is amended 
    by striking `6(j) of the Export Administration Act of 1979' and inserting 
    `310 of the Export Administration Act of 2001'.
    (C) Section 14 of the Iran and Libya Sanctions Act of 1996 is amended--
      (i) in paragraph (3), by striking `(50 U.S.C. App. 2410a(e)(1))' and 
      inserting `(as in effect on August 20, 2001)';
      (ii) in paragraph (6), by striking `(50 U.S.C. App. 2410a(e)(2))' and 
      inserting `(as in effect on August 20, 2001)'; and
      (iii) in paragraph (8), by striking `(50 U.S.C. App. 2415)' and inserting 
      `(as in effect on August 20, 2001)'.
    (19) Section 1133(a)(3) of the Food Security Act of 1985 (7 U.S.C. 1736y(3)) 
    is amended by striking `Export Administration Act' and inserting 
    `International Emergency Economic Powers Act or in time of war under the 
    Trading with the Enemy Act'.
    (20) Section 208(a) of the Agricultural Trade Suspension Adjustment Act of 
    1980 (7 U.S.C. 4001(a)) is amended by striking `for reasons of national 
    security or foreign policy under the Export Administration Act of 1979' and 
    inserting `under title II or III of the Export Administration Act of 2001'.
    (21) Section 411(a)(1) of the Agricultural Trade Act of 1978 (7 U.S.C. 
    5671(a)(1)) is amended by striking `for reasons of national security or 
    foreign policy under the Export Administration Act of 1979 (50 U.S.C. App. 
    2401 et seq.)' and inserting `under title II or III of the Export 
    Administration Act of 2001'.
    (22) Section 302(e) of the Bill Emerson Humanitarian Trust Act (7 U.S.C. 
    1736f-1(e)) is amended--
      (A) by striking `shall not be--
    `(1) considered'
      and inserting `shall not be considered'; and
      (B) by striking `; and
    `(2) subject'
      and all that follows through the end and inserting a period.
    (23)(A) Section 951(e)(2)(B) of title 18, United States Code, is amended by 
    striking `or under section 11 of the Export Administration Act of 1979' and 
    inserting `, under section 11 of the Export Administration Act of 1979 
    (prior to its repeal by the Export Administration Act of 2001), or under 
    section 503 of the Export Administration Act of 2001'.
    (B) Section 1956(c)(7)(D) of title 18, United States Code, is amended by 
    striking `section 11 (relating to violations) of the Export Administration 
    Act of 1979' and inserting `section 503 (relating to penalties) of the 
    Export Administration Act of 2001'.
    (C) Section 2332d(a) of title 18, United States Code, is amended by striking 
    `section 6(j) of the Export Administration Act (50 U.S.C. App. 2405)' and 
    inserting `section 310 of the Export Administration Act of 2001'.
    (24)(A) Section 130(a) of title 10, United States Code, is amended by 
    striking `1979 (50 U.S.C. App. 2401-2420)' and inserting `2001'.
    (B) Section 2249a(a)(1) of title 10, United States Code, is amended by 
    striking `6(j)(1)(A) of the Export Administration Act of 1979 (50 U.S.C. 
    App. 2405(j))' and inserting `310(a)(1)(A) of the Export Administration Act 
    of 2001'.
    (C) Section 2327(b)(2) of title 10, United States Code, is amended by 
    striking `6(j)(1)(A) of the Export Administration Act of 1979 (50 U.S.C. 
    App. 2405(j)(1)(A))' and inserting `310(a)(1)(A) of the Export 
    Administration Act of 2001'.
    (D) Section 2410i(a) of title 10, United States Code, is amended by striking 
    `3(5)(A) of the Export Administration Act of 1979 (50 U.S.C. App. 
    2402(5)(A))' and inserting `502(a) of the Export Administration Act of 
2001'.
    (25) Section 233 of the Trade Expansion Act of 1962 (19 U.S.C. 1864) is 
    amended--
      (A) by striking `(50 U.S.C. App. 2404),' and inserting `(as in effect 
      prior to its repeal by the Export Administration Act of 2001), any export 
      control imposed under title II of the Export Administration Act of 2001,'; 
      and
      (B) by striking `that section' and inserting `either such section'.
    (26) Section 502(b)(2)(F) of the Trade Act of 1974 (19 U.S.C. 2462(b)(2)(F)) 
    is amended by striking `6(j)(1)(A) of the Export Administration Act of 1979' 
    and inserting `310(a)(1) of the Export Administration Act of 2001'.
    (27) Section 133 of the Uruguay Round Agreements Act (19 U.S.C. 3553) is 
    amended by striking `section 8(a) of the Export Administration Act of 1979 
    (50 U.S.C. App. 2407(a)) (as in effect on August 20, 1994)' and inserting 
    `section 502 of the Export Administration Act of 2001'.
    (28) Section 901(j)(2)(A)(iv) of the Internal Revenue Code of 1986 (26 
    U.S.C. 901(j)(2)(A)(iv)) is amended by striking `6(j) of the Export 
    Administration Act of 1979, as amended' and inserting `310 of the Export 
    Administration Act of 2001'.
    (29) Section 927(a)(2) of the Internal Revenue Code of 1986 (26 U.S.C. 
    927(a)(2)) is amended--
      (A) in subparagraph (C), by adding `or' after the comma;
      (B) by striking subparagraph (D);
      (C) by redesignating subparagraph (E) as subparagraph (D); and
      (D) by striking `subparagraph (E)' and inserting `subparagraph (D)'.
    (30) Section 943(a)(3) of the Internal Revenue Code of 1986 (26 U.S.C. 
    943(a)(3)) is amended--
      (A) in suparagraph (C), by adding `or' after the comma;
      (B) by striking subparagraph (D);
      (C) by redesignating subparagraph (E) as subparagraph (D); and
      (D) by striking `subparagraph (E)' and inserting `subparagraph (D)'.
    (31) Section 993(c)(2) of the Internal Revenue Code of 1986 (26 U.S.C. 
    993(c)(2)) is amended--
      (A) in subparagraph (C), by adding `or' after the comma;
      (B) by striking subparagraph (D);
      (C) by redesignating subparagraph (E) as subparagraph (D); and
      (D) by striking `subparagraph (E)' and inserting `subparagraph (D)'.
    (32) Section 254(e)(3) of the Energy Policy and Conservation Act (42 U.S.C. 
    6274(e)(3)) is amended by striking `12 of the Export Administration Act of 
    1979' and inserting `602 of the Export Administration Act of 2001'.
    (33) Section 721(f)(4)(A) of the Defense Production Act of 1950 (50 U.S.C. 
    App. 2170(f)(4)(A)) is amended--
      (A) in clause (i), by striking `6(j) of the Export Administration Act of 
      1979' and inserting `310 of the Export Administration Act of 2001';
      (B) in clause (ii), by striking `section 6(l) of the Export Administration 
      Act of 1979' and inserting `the Export Administration Act of 2001'; and
      (C) in clause (iii), by striking `section 6(m) of the Export 
      Administration Act of 1979' and inserting `the Export Administration Act 
      of 2001'.
    (34) Section 275 of the National Defense Authorization Act for Fiscal Years 
    1988 and 1989 (15 U.S.C. 4605) is amended by striking `1979 (50 U.S.C. App. 
    2401 et seq.)' and inserting `2001'.
    (35) Section 1605(a)(7)(A) of title 28, United States Code, is amended by 
    striking `section 6(j) of the Export Administration Act of 1979 (50 U.S.C. 
    App. 2405(j))' and inserting `section 310 of the Export Administration Act 
    of 2001'.
    (36) Section 1621(a) of the International Financial Institutions Act (22 
    U.S.C. 262p-4q(a)) is amended by striking `section 6(j) of the Export 
    Administration Act of 1979 (50 U.S.C. App. 2405(j))' and inserting `section 
    310 of the Export Administration Act of 2001'.
    (37) Subsection (f) of section 491 and section 499 of the Forest Resources 
    Conservation and Shortage Relief Act of 1990 (16 U.S.C. 620c(f) and 620j) 
    are repealed.
    (38) Section 904(2)(B) of the Trade Sanctions Reform and Export Enhancement 
    Act of 2000 (22 U.S.C. 7203) is amended by striking `Export Administration 
    Act of 1979' and inserting `Export Administration Act of 2001'.
    (39) Section 983(i)(2) of title 18, United States Code (as added by Public 
    Law 106-185), is amended--
      (A) by striking the `or' at the end of subparagraph (D);
      (B) by striking the period at the end of subparagraph (E) and inserting `; 
      or'; and
      (C) by inserting after subparagraph (E) the following new subparagraph:
      `(F) the Export Administration Act of 2001.'.
  (j) CIVIL AIRCRAFT EQUIPMENT- Notwithstanding any other provision of law, any 
  product that--
    (1) is standard equipment, certified by the Federal Aviation Administration, 
    in civil aircraft, and
    (2) is an integral part of such aircraft, shall be subject to export control 
    only under this Act. Such product shall not be subject to controls under 
    section 38(b)(2) of the Arms Export Control Act (22 U.S.C. 2778(b)).
  [Struck out->] (k) REPEAL OF CERTAIN EXPORT CONTROLS- Subtitle B of title XII 
  of division A of the National Defense Authorization Act for Fiscal Year 1998 
  (50 U.S.C. App. 2404 note) is repealed. [<-Struck out]
SEC. 808 708. SAVINGS PROVISIONS.
  (a) IN GENERAL- All delegations, rules, regulations, orders, determinations, 
  licenses, or other forms of administrative action which have been made, 
  issued, conducted, or allowed to become effective under--
    (1) the Export Control Act of 1949, the Export Administration Act of 1969, 
    the Export Administration Act of 1979, or the International Emergency 
    Economic Powers Act when invoked to maintain and continue the Export 
    Administration regulations, or
    (2) those provisions of the Arms Export Control Act which are amended by 
    section 702,
  and are in effect on the date of enactment of this Act, shall continue in 
  effect according to their terms until modified, superseded, set aside, or 
  revoked under this Act or the Arms Export Control Act.
  (b) ADMINISTRATIVE AND JUDICIAL PROCEEDINGS- 
    (1) EXPORT ADMINISTRATION ACT- This Act shall not affect any administrative 
    or judicial proceedings commenced or any application for a license made, 
    under the Export Administration Act of 1979 or pursuant to Executive Order 
    12924, which is pending at the time this Act takes effect. Any such 
    proceedings, and any action on such application, shall continue under the 
    Export Administration Act of 1979 as if that Act had not been repealed.
    (2) OTHER PROVISIONS OF LAW- This Act shall not affect any administrative or 
    judicial proceeding commenced or any application for a license made, under 
    those provisions of the Arms Export Control Act which are amended by section 
    702, if such proceeding or application is pending at the time this Act takes 
    effect. Any such proceeding, and any action on such application, shall 
    continue under those provisions as if those provisions had not been amended 
    by section 702.
  (c) TREATMENT OF CERTAIN DETERMINATIONS- Any determination with respect to the 
  government of a foreign country under section 6(j) of the Export 
  Administration Act of 1979, or Executive Order 12924, that is in effect on the 
  day before the date of enactment of this Act, shall, for purposes of this 
  title or any other provision of law, be deemed to be made under section 310 of 
  this Act until superseded by a determination under such section 310.
  (d) LAWFUL INTELLIGENCE ACTIVITIES- The prohibitions otherwise applicable 
  under this Act do not apply with respect to any transaction subject to the 
  reporting requirements of title V of the National Security Act of 1947. 
  Notwithstanding any other provision of this Act, nothing shall affect the 
  responsibilities and authorities of the Director of Central Intelligence under 
  section 103 of the National Security Act of 1947.
  (e) IMPLEMENTATION- The Secretary shall make any revisions to the Export 
  Administration regulations required by this Act no later than 180 days after 
  the date of enactment of this Act.
Union Calendar No. 212 
107th CONGRESS
2d Session
H. R. 2581
[Report No. 107-297, Parts I and II]
A BILL
To provide authority to control exports, and for other purposes. 

March 8, 2002
Reported from the Committee on Armed Services with amendments
March 8, 2002
The Committees on Agriculture, Energy and Commerce, the Judiciary, Rules, Ways 
and Means, and the Permanent Select Committee on Intelligence discharged; 
committed to the Committee of the Whole House on the State of the Union and 
ordered to be printed
END