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29–812PDF 2018

EXPORT CONTROL REFORM ACT OF 2018;

GLOBAL FOOD SECURITY REAUTHORIZATION ACT

OF 2018; GLOBAL ELECTORAL EXCHANGE ACT;

AND WOMEN’S ENTREPRENEURSHIP AND

ECONOMIC EMPOWERMENT ACT OF 2018

MARKUP

BEFORE THE

COMMITTEE ON FOREIGN AFFAIRS 

HOUSE OF REPRESENTATIVES

ONE HUNDRED FIFTEENTH CONGRESS

SECOND SESSION

ON

H.R. 5040, H.R. 5129, H.R. 5274, and H.R. 5480

APRIL 17, 2018

Serial No. 115–120

Printed for the use of the Committee on Foreign Affairs

(

Available via the World Wide Web: http://www.foreignaffairs.house.gov/ or

http://www.gpo.gov/fdsys/

(II)

COMMITTEE ON FOREIGN AFFAIRS 

EDWARD R. ROYCE, California, Chairman 

CHRISTOPHER H. SMITH, New Jersey 

ILEANA ROS-LEHTINEN, Florida 

DANA ROHRABACHER, California 

STEVE CHABOT, Ohio 

JOE WILSON, South Carolina 

MICHAEL T. MCCAUL, Texas 

TED POE, Texas 

DARRELL E. ISSA, California 

TOM MARINO, Pennsylvania 

MO BROOKS, Alabama 

PAUL COOK, California 

SCOTT PERRY, Pennsylvania 

RON DESANTIS, Florida 

MARK MEADOWS, North Carolina 

TED S. YOHO, Florida 

ADAM KINZINGER, Illinois 

LEE M. ZELDIN, New York 

DANIEL M. DONOVAN, JR., New York 

F. JAMES SENSENBRENNER, JR., 

Wisconsin 

ANN WAGNER, Missouri 

BRIAN J. MAST, Florida 

FRANCIS ROONEY, Florida 

BRIAN K. FITZPATRICK, Pennsylvania 

THOMAS A. GARRETT, JR., Virginia 

JOHN R. CURTIS, Utah 

ELIOT L. ENGEL, New York 

BRAD SHERMAN, California 

GREGORY W. MEEKS, New York 

ALBIO SIRES, New Jersey 

GERALD E. CONNOLLY, Virginia 

THEODORE E. DEUTCH, Florida 

KAREN BASS, California 

WILLIAM R. KEATING, Massachusetts 

DAVID N. CICILLINE, Rhode Island 

AMI BERA, California 

LOIS FRANKEL, Florida 

TULSI GABBARD, Hawaii 

JOAQUIN CASTRO, Texas 

ROBIN L. KELLY, Illinois 

BRENDAN F. BOYLE, Pennsylvania 

DINA TITUS, Nevada 

NORMA J. TORRES, California 

BRADLEY SCOTT SCHNEIDER, Illinois 

THOMAS R. SUOZZI, New York 

ADRIANO ESPAILLAT, New York 

TED LIEU, California

AMY PORTER, Chief of Staff THOMAS SHEEHY, Staff Director

JASON STEINBAUM, Democratic Staff Director 

(III)

C O N T E N T S 

Page

MARKUP ON 

H.R. 5040, To authorize the President to control the export, reexport, and 

transfer of commodities, software, and technology to protect the national 

security, and to promote the foreign policy, of the United States, and 

for other purposes ................................................................................................ 2

Amendment in the nature of a substitute to H.R. 5040 offered by the 

Honorable Edward R. Royce, a Representative in Congress from the 

State of California, and chairman, Committee on Foreign Affairs .............. 87

Amendment to the amendment in the nature of a substitute to H.R. 

5040 offered by the Honorable Brad Sherman, a Representative in 

Congress from the State of California ..................................................... 174

H.R. 5129, To reauthorize the Global Food Security Act of 2016, and for 

other purposes ...................................................................................................... 177

Amendment to H.R. 5129 offered by the Honorable Christopher H. Smith, 

a Representative in Congress from the State of New Jersey ........................ 180

H.R. 5274, To promote international exchanges on best election practices, 

cultivate more secure democratic institutions around the world, and for 

other purposes ...................................................................................................... 181

Amendment in the nature of a substitute to H.R. 5274 offered by the 

Honorable Joaquin Castro, a Representative in Congress from the State 

of Texas ............................................................................................................. 189

Amendment to the amendment in the nature of a substitute to H.R. 

5274 offered by the Honorable Dina Titus, a Representative in Congress from the State of Nevada ................................................................ 195

H.R. 5480, To improve programs and activities relating to women’s entrepreneurship and economic empowerment that are carried out by the United 

States Agency for International Development, and for other purposes ........... 196

Amendment to H.R. 5480 offered by the Honorable Edward R. Royce ........... 219

APPENDIX 

Markup notice .......................................................................................................... 234

Markup minutes ...................................................................................................... 235

Markup summary .................................................................................................... 237

The Honorable Christopher H. Smith: Prepared statement ................................ 238

(1)

EXPORT CONTROL REFORM ACT OF 2018; 

GLOBAL FOOD SECURITY REAUTHORIZATION ACT OF 2018; GLOBAL ELECTORAL EXCHANGE ACT; AND WOMEN’S ENTREPRENEURSHIP AND ECONOMIC EMPOWERMENT 

ACT OF 2018

TUESDAY, APRIL 17, 2018

HOUSE OF REPRESENTATIVES,

COMMITTEE ON FOREIGN AFFAIRS,

Washington, DC. 

The committee met, pursuant to notice, at 10 o’clock a.m., in 

room 2172, Rayburn House Office Building, Hon. Edward Royce 

(chairman of the committee) presiding. 

Chairman ROYCE. The committee will come to order. 

Pursuant to notice, we meet today to mark up four measures. 

They are all bipartisan. And without objection, all members may 

have 5 days to submit any statements or any extraneous material 

into the record. 

I think everyone was notified yesterday we intend to consider today’s measures en bloc. And so, without objection, the following 

items previously provided will be considered en bloc and are considered as read: H.R. 5040, the Export Control Reform Act, Royce 

Amendment 101 in the nature of a substitute, Sherman Amendment 45. 

These are also all in your packets, by the way: H.R. 5129, the 

Global Food Security Reauthorization Act with Smith Amendment 

85; H.R. 5274, the Global Electoral Exchange Act with the Castro 

amendment in the nature of a substitute to H.R. 5274 and the 

Titus Amendment 38; and I have H.R. 5480, this is the Women’s 

Entrepreneurship and Economic Empowerment Act and Royce 

Amendment 103. 

[The information referred to follows:]

2


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lli'im CONGRESS 

2D 8~88101\ H.R.5040 

To anthorize the Pref:i(l!'nt to (•ontrol the export, reexport, and tram;fer 

of commodicies, software, and tedmology to proted the national secLtrity, 

and to promote the foreign policy, of the Uniced States, and for other 

purposes. 

IK THE HOUSE OF REPRESE_\rTATIVES 

FgmwAliY 15, '2018 

}Ir. ROYCE of California (for himself aJl(t l\h. EKGEL) intro(hwed the following bill; which was referred to the Committee on Foreign Affairs, and 

in addition to the Committee on Oversight and Government Reform, for 

a period to be subs0quently determined by the Spcakrr, in cacl1 rase for 

(·onsideration of snell pro':isions as fall within the jurisdid.ion of the <·.ommittee emw!'rned 

A BILL 

To authorize the President to eontrol the export, ree:Allort, 

and transfer of commodities, software, and technology 

to proted, the national seeurity, and to promote the 

foreign policy, of the U uited States, and for other purposes. 

Re z:t enacted by the Senate and House of Re])resenta2 liees qj' the United Slates oiLimerica in Congress asi\en,UJlea, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 RHORT TITLE.-This Aet may he eitea as the 

5 "Export Control Reform Act of 2018". 
3


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2 

(h) TABLE OF CONTENTS.-The table of eontents of 

2 this Act is as follows: 

Sec. 1. Short title: table of contents. 

Sec. 2. Definitions. 

See. 

See. 

See. 

See. 

Sec. 

Sec. 

Sec. 

St~C. 

Sec. 

See. 

See. 

See. 

See. 

See. 

Sec. 

~kc~. 

Ek'e. 

See. 

Sec. 

Sec. 

TITLE I-AUTHORITY 1mD ADJ.\IIKISTIL~TION OF CONTHOLS 

101. 

1m. 

103. 

104. 

100. 

106. 

107. 

108. 

10>1. 

110. 

111. 

112. 

11:3. 

114. 

11 i). 

ll6. 

201. 

202. 

203. 

204. 

Short title. 

Statement of policy. 

Authority of the Pre8ident. 

Additional authorities. 

Administration of e-cport controls. 

Controlliscs. 

Licensing. 

Cmnpliauee assistance. 

Hequirements to identi~v and control emerging critical teclmologies in 

export eontrol regulaLjous. 

Penalties. 

E-nforcelnent 

Arlministrative proeeclure. 

Annual report to Congress. 

Repeal. 

F.ffeet. on other Acts. 

Trnnsition provisions. 

TTTJJJ<J II-ANTI-BOYCOTT ACT OF 3018 

Short. title. 

St.au:m(:nt. of poliey. 

Foreign boycotts. 

Enforcement. 

TITLE III-SA.t'l'CTIONS R,EfLlliDI='fG MISSILE PROLIFER:tTIOK 

~iliD CIIEMICL'UJ A,"JD DIOLOGIC.'UJ WEAPONS PROLIFER:tTION 

Sec. 301. Missile proliferation control violations. 

See. 30'l. Chemieal and hiologieal weapons proliferation sanetions. 

3 SEC. 2. DEFINITIONS. 

4 In this Act: 

5 (1) CONTROI.LED.-The term "controlled'', 

6 \Vith respel't to an item, means the e:&11ort, ree:&11ort, 

7 or transfer of the item is controlled under title I. 

8 (2) DTTATrrSR.-'l'he term "dual-use'', "~th re9 spect to au item, means the item has civilian appli-
4


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eations and military, terrorism, or weapons of mass 

2 destruction-related applications. 

3 (~) EXPORT.-The term "ex1lort", >vith respeet 

4 to an item subject to controls under title l, in5 cludes6 (A) the shipment or transmission of the 

7 item out of the United States, including the 

8 sending or taking of the item out of the 1~nited 

9 States, in any manner; and 

l 0 (TI) the releaRe or transfer of technology or 

11 source code relating to the item to a foreign 

12 person in the United States. 

13 ( 4) EXPORT ~IDMINISTRATION REGTTh~TIO~S.-

14 The term "Export Administration Regulations'' 

15 means16 

17 

18 

19 

20 

21 

22 

23 

24 

(A) the Export Administration Regulations 

as promulgated, maintained. and amended 

under the authority of the International Emergency Economic Powers Act and codified, as of 

the elate of the enactment of this Act, in subchapter C of chapter ~VII of title 15, Code of 

Federal Regulations; or 

(B) 1·egulatious that arc promulgated, 

maintained. and amended under the authority 
5


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4 

of title I on or after the date of the emwtment 

2 of this Act. 

3 FOREIGN PERSON.-The term "foreign per4 sou'' means a persou that is not a United States 

5 person. 

6 lT~:<:lVL-'l'hc term "item" means a com7 modity, software, or technology. 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

(7) PERSOK.-

(A) IN OE~EitAL.-The term "person'' 

means-

(i) a natural person; 

(ii) a corporation, business assocw.-

tion, partnership, soeiety, trust, finaneial 

institution, insurer, undervvTiter, guarantor, and any oth(~r business organization, 

any other nongovernmental entity, organization, or group, and any governmental entity operating as a business enteqJrise; aud 

(iii) any sueeessor to any entity described in elause (ii). 

(B) APPLICATIOK TO OOv~RNJVIENTAL ENTITIES.-The term "person" does not include a 

government or governmental entity that is not 

operating as a business enteq)rise. 
6


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5 

(R) REEXPOB.T.-The term "ree1ql0rt", Y'V'ith re2 spect to an item subject to controls under title I, in3 dmles4 (A) the shipment or transmission of the 

5 item from a foreig11 country to another foreign 

6 country, including the sending or taking· of the 

7 item from the foreign eountry to the other for8 eign eount.ry, in any manner; and 

9 (B) the release or transfer of teehnology or 

l 0 source eode relating to the item to a foreign 

11 person outside the U nitcd States. 

12 TF:CHNOT,OGY.-The term "teehnology"-

13 (A) indudes14 (i) information neeessary for the de15 velopment, produetion, use, operation, ln16 stallation, maintcnanec, repair, overhaul or 

17 refurbishing of an item; and 

18 (ii) information at whatever stage of 

19 its creation, such as foundational informa20 tion and kno'\v-how, as further defined by 

21 regulations; and 

22 (B) does not include published informa23 tiou, including prerecorded reeords, printed 

24 books, pamphlets, miscellaneous publications, or 

25 other information, that-
7


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6 

(i) arises during, or results from, fnn2 damental research and is intended to be 

3 puhlishea; 

4 (ii) is released by iustmetion in a 

5 catalog course or associated teaching lab6 oratory of an academic institution; 

7 (iii) appears in patents or open (pub8 lished) patent publi(~atiom; available from 

9 or at any patent office, unless covered by 

l 0 an invention secrecy order; 

11 (iv) is uon-proprietary system descrip12 tions; 

13 (v) is telemetry !lata; or 

14 (v-i) is any other category or tyl)e of 

15 information, as determined by the Presi16 dent for purposes of national security or 

17 foreign policy concerns. 

18 (10) Tl\Al\SI:<'ER.-'l'he term "transfer", with 

19 respect to an item subject to controls under title I, 

20 means a change in the end-use or end nser of the 

21 item ~vvithin the same foreign country. 

22 (11) rmTED STATES.-The term 'Tnited 

23 States" means the several States, the District of Co24 lumbia, the Commonwealth of Puerto Rico, the Com25 momvealth of the Northern Mariana Islands. Amer-
8


29812a-7.eps

7 

wan Samoa, Guam, the United States Virg-in Is2 lands, and any other territory or possession of the 

3 Unitea States. 

4 (12) UNI'l'I<JD S'l'A'l'l£8 P1£H80N.-'l'he term 

5 "United States person" means6 (A) an.v individual who 1s a citizen or ua7 tional of the ·united States or who is an indi8 vidual deserihed in suhparagraph (B) of seetion 

9 2HB(a)(:3) of the Immigration and Kationality 

10 Art (8 r.S.C. 1324h(a)(3)); and 

11 (B) a corporation or other legal entity 

12 which is organi:T.ed under the laws of the rnited 

13 Statt~s. any State or territory thereof, or the 

14 District of Columbia, if natural persons de15 seribe!l in subparagn1ph (A) own, diredly or in16 clircctly, more than 50 percent of the out17 standing eapital stock or other beneficial inter18 est iu such legal entity. 

19 (1:3) WEAPOKS OF ::\1A.SS DESTHUCTIOK.-The 

20 term "weapons of mass destruetion" means nuelear, 

21 radiologieaL ehemicaL and biological weapons and 

22 delivery systems for such weapons. 
9


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TITLE I-AUTHORITY AND 

2 ADMINISTRATION OF CONTROLS 

3 SEC. 101. SHORT TITLE. 

4 This title may be cited as the "Export Controls Aet 

5 of 2018". 

6 SEC. 102. STATEMENT OF POLICY. 

7 The follcnving is the policy of the rnited States: 

8 ( 1) The national security and foreign policy of 

9 the United States require that the export, ree}qJOrt, 

10 and transfer of items, and specific activ-ities of 

11 United States persons, wherever loeated. be eon12 trolled for the follow-ing purposes: 

13 (A) To eontrol the aeeess to itemR for use 

14 m15 (i) the proliferation of ·weapons of 

16 mass destnwtion or of eonventional weap17 ems; 

18 

19 

20 

21 

22 

23 

(ii) the aeqnisition of destahilihing 

numbers or types of conventioual weapons; 

(iii) acts of terrorism; 

(iv) military prognuns that C'ould pmw 

a threat to the security of the rnited 

States or its allies; or 
10


29812a-9.eps

9 

(v) aetiv:ities undertaken spe(~ifieally to 

2 cause significant interference with or dis3 ruption of (~ritimJl infrastnwtnre. 

4 (B) 'l'o preserve the qualitative military su5 periority of the rnited States. 

6 (C) To strengthen the United States m7 dustrial base. 

8 (D) To (~arry out the foreign poliey of the 

9 United States, inc.luding the protection of 

l 0 human rights and the promotion of democracy. 

11 (E) To carry out obligations aud eommit12 ments under international agreements and ar13 rangements, induding multilateral e::q1ort eon14 trol regimes. 

15 (F) To faeilitate military interoperah:ility 

16 between the United States and its Korth Atlan17 tie Treaty Organization (NATO) and other 

18 close allies. 

19 (G) To ensure national seeurity controls 

20 are tailored to foeus on those core teehnologies 

21 and other items that are capable of being used 

22 to pose a serious national security threat to the 

23 United States. 

24 (2) The national seeurity of the United States 

25 requires that the United States maintain its leader-
11


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10 

ship in the seienee, tedmology, ewnneermg, and 

2 manufacturing sectors. Such leadership requires that 

3 Unitea States persons are eompetitive in global rnar4 kets. The impact of the implementation of this title 

5 on such leadership and eompetitiveness must be 

6 evaluated on au ongoing· basis and applied in impos7 ing controls under sections 103 and 104 to avoid 

8 negatively affeding mwh leadership. 

9 ( ~3) The national security and foreign policy of 

l 0 the United States require that the United States 

11 participate in multilateral oq.:.mni;.-;ations aud a~.tree12 ments regarding ex.l)fJrt controls on items that are 

13 eonsistent with the poli(~y of the U nite!l States, and 

14 take all the neeessary steps to secure the adoption 

15 and eonsistent enforeement, by the governments of 

16 sueh couutries, of export controls ou items that are 

17 consistent with such poliey. 

18 ( 4) Export eoutrols should be fully coordinated 

19 ~vith the multilateral e:xl)ort eontrol regimes. E:x1Jort 

20 eontrols that are multilateral are most effeetive, and 

21 should be tailored to focus on those core technologies 

22 and other items that are eapable of being used to 

23 pose a serious national security threat to the L'rlited 

24 States and its allies. 
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11 

( 5) EJ..11ort eontrols applied unilaterally to items 

2 "\Videly available from foreign sources generally are 

3 less effeetive in preventing end-users from aequiring 

4 those items. 

5 (G) The effective administration of exl)Ort con6 trols requires a clear understaudiug both inside aud 

7 outside the rnited States Government of which teeh8 nologies and other items are eontrolled and an effi9 cient process should be created to update the eon-

] 0 trols, such as by removing and adding technologies 

11 aud other items. 

12 (7) The export control system must ensure that 

13 it is transparent, pretli('tahle, and timely, has the 

14 flexibility to be adapted to address new threats in 

15 the future. and allows seamless ae(~ess to and shar16 ing of export coutrol information among all relevant 

17 United States national security and foreign policy 

18 agenmcs. 

19 (8) Implementation and enforcement of rnited 

20 States export controls require robust capabilities in 

21 monitoring, intelligence, and investigation, appro22 priate penalties for violations, and the ability to 

23 swiftly interdict unapproved transfers. 

24 ( 9) Export. controls should be balanced with 

25 United States counterterrorism, information seeu-
13


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rity, and eyber-'leeurity polieie'l to en'lure the ability 

2 to e:Al)Ort, reexport, and transfer technology and 

3 other items in snpport of eounterterrorisrn, <~ritieal 

4 infrastructure, and other homeland security prior5 ities, while effectively preventing malicious cyher ter6 rorists from obtainin12· items that threaten the 

7 United States and its interests, inc.luding the protec8 tion of and safety of rnited States eitizens ahroall. 

9 (10) EAl)Ort controls complement and are a 

l 0 critical element of the national security policies un11 derlyiug the laws and L"egulatious governing foreign 

12 direct investment in the United States, including 

13 eontrolling the transfer of eritieal tedmologies to 

14 certain foreign persons. Thus, the President, in close 

15 eoordination with the Department of Commeree, the 

16 Department of Defeusc, the Department of State, 

17 the Department of Energy, and other agencies re18 spousiblc for export controls, should have a regular 

19 and robust process to identif~y the emerging and 

20 other types of critical technologies of concern, as de21 fined in United States foreign direct investment 

22 laws, and regulate their release to foreign persons as 

23 warranted 1·egardless of the nature of the underlying 

24 transaction. Such identification efforts should draw 

25 upon the resources and ex1)ertise of all relevant 
14


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1:1 

parts of the United States Government, indushy, 

2 and academia. These efforts should he in addition to 

3 traditional efforts to modernize and npaate the lists 

4 of controlled items under the multilateral export conS trol regimes. 

6 (11) The authority under this title may be exer7 cised only in furtherance of all of the objectives set 

8 forth in paragn1phs (1) through (10). 

9 SEC. 103. AUTHORITY OF THE PRESIDENT. 

l 0 AUTTTORITY.-Tn order to earry out the poliey set 

11 f01th in paragraphs ( 1) through ( 10) of seetion 102, the 

12 President shall eontrol13 ( 1) the export, reexport, and transfer of items, 

14 whether by United States persons, wherever located, 

15 or by foreign persons, wherever loeated; and 

16 (2) the activities of United States persons, 

17 wherever loeated, relating to sperifie18 (A) nuclear explosive devices; 

19 (B) missiles; 

20 (C) chemical or biological weapons; 

21 (D) whole plants for ehemical weapons pre22 eursors; 

23 (E) foreign maritime nuclear prqjects; aud 

24 (F) foreign intelligence sen-ices. 
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14 

(h) REQTTIREJ\IE~TS.-In exermsmg authority under 

2 this title, the President shall impose controls to achieve 

3 the following olijeetives: 

4 ( 1) To regulate the export, reexport, and traus5 fer of items described in subsection (a)(l) of rnited 

6 States persons, wherever located, or foreign persons, 

7 wherever located. 

8 (2) To regulate the adivities des(~ribed in sub9 section (a)(2) of United States persons, wherever lo10 cated. 

11 (3) To secure the cooperation of other govern12 ments and multilateral organiJ~ations to impose con13 trol systems that are <~onsistent, to the extent pos14 sible, with the controls imposed under subsection 

15 

16 ( 4) To maintain the leadership of the Cnitcd 

17 States in science, engineering, technology research 

18 and development, and manufacturing. 

19 ( 5) To enhance the viability of commercial 

20 firms, academic institutions, and research establish21 ments, and maintain the skilled workforce of such 

22 firms, institutions, and establishments, that are nec23 cssary to preserving the leadership of the rnitcd 

24 States described in paragraph (4). 
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15 

( 6) To strengthen the United States industrial 

2 base, both ~with respect to current and future de3 fense re<prirements. 

4 (7) 'l'o euforce the controls through means such 

5 as regulations, requirements for eompliance, lists of 

6 controlled items, lists of forcigu persons who threat7 en the national security or foreign policy of the 

8 Unite!l States, and guidanee m a form that faeili9 tates compliance by United States persons and forI 0 eign persons, in partieular aeademie institutions, sci11 cntifie and research establishments, and small- and 

12 medium-sized businesses. 

13 SEC. 104. ADDITIONAL AUTHORITIES. 

14 (a) IN GE~ERAL.-In carrying out tlris title, the 

15 Pre;;ident shall16 ( 1) establish and maintaiu lists published by 

17 the Seeretary of Commeree of items that are eon18 trolled under this title; 

19 (2) establish and maintain lists published by 

20 the Secretary of Commerce of foreign persons and 

21 end-uses that are determined to be a threat to the 

22 national security and foreign policy of the rnited 

23 States pursuant to the policy set forth in sectiou 

24 102(l)(A) and to whom e~1Jm·ts, ree),.l)Orts, and 

25 transfers of items are controlled; 
17


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16 

( 0) prohibit unauthorized e:&llorts, ree:~qlOrts, 

2 and transfers of controlled items; 

3 ( 4) restrid e:&llorts, ree:&11orts, and transfers of 

4 any c-ontrolled items to auy foreign person or end5 use listed under paragTaph (2); 

6 ( 5) require licenses or other authoriz;atious, as 

7 appropriate, for e:&lJOrts, ree:&lJOrts, and transfers of 

8 eontrolle!l items, induding imposing (~OIHlitions or re9 str:ictions on United States persons and foreign per-

] 0 sons with respeet to sueh lieenses or other authori7.a11 tions; 

12 (G) establish a process by vvhich the Seeretary 

13 of Commen~e or a lieense applieant reqnei'lts an as14 sessment that a foreign item is comparable in qual15 ity to an item eontrolle<l under this title, and is 

16 available in sufficient quantities to render the 

17 United States e:&lJOrt control of that item or the cle18 nial of a license ineffective; 

19 (7) require measures for compliance with the 

20 e"Xl)Ort controls established under this title; 

21 (8) require and obtain such information from 

22 United States persons and foreign persons as is nec23 cssary to carry out this title; 
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17 

( 9) reqmre, as appropriate, advanee notiee be2 fore an item is exported, reexported, or transferred, 

3 as an alternative to requiring a lieense: 

4 (10) require, to the extent feasible, identifica-

) tion of items subjer.t to rontrols under this title in 

6 order to facilitate the enforcement of such controls; 

7 ( 11) inspeet, search, detain, seize, or impose 

8 temporary denial orders vv:ith respeet to items, in 

9 any form, that are subject to controls under this 

l 0 title, or conveyances on whirh it is believed that 

11 there arc items that have been, arc being, or arc 

12 about to be e:x-ported, ree:qxJrted, or transferred in 

13 violation of this title: 

14 (12) monitor shipments, or other means of 

15 transfer; 

16 ( 13) keep the public full.Y apprised of chauges 

17 m polie;v-, regulations, and proeedures established 

18 under this title; 

19 (14) appoint teehnical advisory committees in 

20 aceordance with the Federal Aclvismy Committee 

21 Aet; 

22 (15) ereate, as ·warranted, exceptions to licens23 ing requirements in order to further the objectives of 

24 this title; and 
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lR 

(lG) undertake any other ~wtion as is neeeNsary 

2 to carry out this title and is not other-.,;vise prohibited 

3 hy law. 

4 (b) HJ<JLATIONSHIP '1'0 lEEP A.-The authority under 

5 this title may not he used to regulate or prohibit under 

6 this title the export, reexport, or transfer of any item that 

7 rnay not be regulated or prohibited under section 203(b) 

8 of the International Emergerwy E(:onornie PowerN Ad (50 

9 U.S.C. 1702(b) ). 

10 (e) COTJNTRJRS SrPPORTTNO lKTRR'\Nl'TONATJ TRI\.-

11 RORISlVL12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

(1) TJTCRNSR RRQUTRR1\TR~T.-

(A) IN CtENERAL.-A lieense shall he required for the e:cqJort, ree:x'})ort, or transfer of 

iternN to a (~ountiy if the Seeretary of State haN 

made the following determiuatious: 

(i) The government of sueh countly 

has repeatedly provided support for acts of 

international terrorism. 

(ii) The e;qxJrt, ree"A'})Ort, or transfer 

of such items could make a significant contribution to the military potential of such 

eouutry, iucludiug its military logisties capability, or could enhance the ability of 
20


29812a-19.eps

Hl 

sueh (•ountry to support aets of inter2 national terrorism. 

3 (B) DETER:.\HNATION r~DER OTHER PR0-

4 VISIONS 01:<' LAW.-A determination of the Sec-

) retary of State under section 620A of the For6 eign Assistance Aet of 19(-)1 (22 U.S.C. 2371), 

7 section 40 of the Am1s E2.1)ort Control Act (22 

8 U.S.C. 2780), or any other provision of law 

9 that the government of a country described in 

l 0 subparagraph (A) has repeatedly prm~ded sup11 port for acts of international terrorism shall be 

12 deemed to be a determination 1:v'ith respect to 

13 such government for pm1Joses of (•lanse (i) of 

14 subparagraph (A). 

15 (2) NOTIFICATION TO CONCJ.RESS.-The Se(~-

16 retary of State and the Secretary of Commerce shall 

17 notify the Committee on Foreign ~Affairs of the 

18 Honse of Representatives and the Committee ou 

19 Banking, Housing, and Urban Affairs and the Com20 mittee on Foreign Relations of the Senate at least 

21 :30 days before issuing any license required by para22 graph (1). 

23 (3) PcBLICATlON II\ PJmER~LI,L RBGISTEI:L24 Each determination of the Secretar;v- of State under 

25 paragTaph (1 )(A) shall be published in the Federal 
21


29812a-20.eps

20 

Register, exeept that the Se(~retary of State may ex2 elude confidential information and trade secrets con3 tained in s1wh determination. 

4 RESCISSION Q}' DETEtCJVllNATION.-A deter5 mination of the Secretary of State under paragraph 

6 ( 1) (A) may not be rescinded unless the President 

7 submits to the Speaker of the House of Representa8 tives, the dmirman of the Committee on Foreign Af9 fairs, and the chairman of the Committee on Bank-

] 0 ing, Housing, and rrhan Affairs and the chairman 

11 of the Committee on Porei~w Relations of the Sen12 ate---

13 (A) hefore the proposed rese1ssJon wouhl 

14 take effec·t, a report certifying that15 (i) there has been a fundamental 

16 change in the leadership and policies of the 

17 government of the countr,y concerned; 

18 (ii) that government is uot supporting 

19 acts of international tenorism; and 

20 (iii) that government has provided as21 surances that it w"ill not support acts of 

22 international terrorism in the future; or 

23 (B) at least 90 days before the proposed 

24 rescission would take effect, a report justify-ing 

25 the rescission and certifying that-
22


29812a-21.eps

21 

(i) the government eoneerned has not 

provided any support for acts international 

terrorism auring the preceding 24-month 

period; and 

(ii) the government concerned has 

provided assurances that it will uot support acts of international terrorism in the 

future. 

2 

3 

4 

5 

6 

7 

8 

9 (5) DISAPPROVAL OF RESCISSION.-No resclS10 s1on under paragraph (4)(D) of a determination 

11 under paragraph (l)(A) with respect to the govern12 ment of a eountry may be made if Congress. within 

13 90 days after re(~eipt of a report under paragTaph 

14 (4)(B), enaets a joint resolution described in sub15 sedion (f)(2) of sed,ion 40 of the Arms EA1lort Con16 trol Act with respect to a rescission under subsection 

17 (f) ( 1) of such section \Vith respect to the government 

18 of such country. 

19 (6) NOTIFICATIOK Al'ID BRIEFING.-Not later 

20 than21 (A) ten days after initiating a review· of the 

22 activities of the government of the country con23 cerned within the 24-mouth period referred to 

24 in paragraph ( 4)(B)(i), the Secretary of State 

25 shall notify the Committee on Foreign Affairs 
23


29812a-22.eps

22 

of the House of Representatives and the Corn2 mittee on Foreign R,elations of the Senate of 

3 sueh initiation; and 

4 (B) 20 days after the notification described 

5 m paragraph (1 ), the Secretary of State shall 

6 brief the con~:tressional committees described m 

7 paragraph (1) on the status of such review. 

8 (7) CONTENTS OF :..IOTIFICATION OF LI9 CENSE.-The Secretary of State shall include in the 

l 0 notification required by paragraph (2)-

11 (A) a detailed description of the items to 

12 be offered, ineluding a brief deseription of the 

13 eapahilities of any item for whieh a li(~ense to 

14 e:.'})ort, reexport, or transfer the items IS 

15 sought; 

16 (B) the reasous why the foreign country, 

17 person, or entity to whieh the export, ree:cl)Ort, 

18 or transfer is proposed to be made has re19 quested the items under the e:.'})ort, ree:.'})ort, or 

20 transfer, and a deseription of the manner in 

21 which such eountry, person, or entity intends to 

22 use sueh items; 

23 (C) the reasons why the proposed export, 

24 ree:.'})ort, or transfer is in the national interest 

25 of the United States; 
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29812a-23.eps

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3 

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(D) an analysio-; of the irnpa<·.t of the proposed e),1JOrt, ree}q)ort, or transfer on the militm7 (~apabilit.ies of the foreign r~ounhy, person, 

or entity to whieh sueh transfer would be made; 

(E) an analysis of the manner in whieh the 

proposed export, reexport, or transfer would affeet the relative military strengths of eountries 

in the region to whieh the items that are the 

subject of such export, reexport, or transfer 

would be delivered aml whether other countries 

in the rcgiou have eomparablc kinds and 

amounts of items; and 

(F) an analysis of the impad of the proposed export, reex1Jorl, or transfer on the relations of the United States with the eonntries in 

the region to whieh the items that arc the subject of such export, reex1Jort, or transfer would 

be delivered. 

(d) EKHANCED PIWLIFERATION CONTROLS.-

(1) TN cm'JET\:\TJ.-Tn furtherance of section 

10:3(a) of this title, the President shall, except to the 

exient authorized by a statute or regulation administcred by a Federal department or ageney other thau 

the Department of Commeree, require a rnited 

States person, wherever located, to apply for and re-
25


29812a-24.eps

24 

eerve a lieense from the Department of Commeree 

2 for the export, reexport. or transfer of items de3 serihed in paragn1ph (2) or for the perforrnanee of 

4 services relating· to such items. 

5 (2) TTR:vrs DRSCmmm.-The items described in 

6 this paragraph are7 (A) nuclear explosive devices; 

8 (B) missiles; 

9 (C) chemical or biological weapons; 

l 0 (D) whole pla11ts for chemical weapons pre11 cursors; and 

12 (E) foreign maritime nuclear projects that 

13 would pose a risk to the national security or 

14 foreign policy of the United States. 

15 (e) ADDITIOKAL PRDHIBITIOKS.-The Seeretary of 

16 Commerce may inform United States persons, either indi17 ~v:iclually by specific notice or through amendment to any 

18 regulatiou or order issued under this title, that a license 

19 from the Bureau of Industry and Security of the Depart20 ment of Commerce is required to engage in any achvity 

21 if the activity involves the ty1Jes of movement, servic·e, or 

22 support described in subsection (d). The absence of any 

23 such notification does not excuse the U uitcd States persou 

24 from compliance ~with the license requirements of sub-
26


29812a-25.eps

25 

sedion (d), or any regulation or order issue!l under this 

2 title. 

3 (f) LICENSE REv'1EW 8TAKDARD8.-The Seerdary of 

4 Commeree shall deny an applieatiou to engage in any ae5 tivity that involves the t.n)es of movement, seniee, or sup6 port described in subseetion (d) if the activity would make 

7 a material contribution to any of the items described in 

8 subse(~tion (d) ( 2). 

9 SEC. 105. ADMINISTRATION OF EXPORT CONTROLS. 

10 TN GENRfU\L.-The President shall delegate to 

11 the Secretary of Commerce, the Secretary of Defense, the 

12 Seeretary of State and, as appropriate, the Director of Na13 tional Intelligenee aml the heads of other appropriate Ft~d14 eral departments and ageneies, the authority to earry out 

15 the pm1Joses set forth in subseeti on (b). 

16 (b) PCRPOSES.-

17 (1) IK GE:NbRAl •. -The purpose of the delega18 tions of authority pursuant to subsection (a) arc'-

19 (A) to advise the President ~with respect 

20 to21 (i) identif.ving specific threats to the 

22 national seeurity and foreign policy that 

23 the authority of this title may be used to 

24 address; and 
27


29812a-26.eps

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3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

23 

24 

25 

26 

(ii) exercising the authority umler this 

title to impleinent policies, regulations, 

proee!lures, and a(•tions that are ne(;essary 

to effectively counterad those threats; 

(D) to review and approve-

(i) criteria for including items on, and 

removing such an item from, a list of controlled items established under this title; 

(ii) an interageney proeedure for compiling and amending any list described in 

elause (i); 

(iii) criteria for including a person on 

a list of persons to whom e},.1lorts, reexpmis, and transfers of items are prohibited 

or restrieted under this title; 

(iv) standards for compliance by persons subject to controls under this title; 

and 

(v) polieies and proeedures for the 

end-use monitoring of exports, reexports, 

and transfers of items controlled under 

this title; 

(C) to obtain indepeudeut evaluations, ineluding from Inspectors General of the relevant 

departments or agencies, on a periodic. basis on 
28


29812a-27.eps

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3 

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6 

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8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

27 

the effeetiveness of the implementation of thiN 

title in carrying out the policy set forth in section 102; and 

(D) to benefit from the inherent equities, 

experience, and capabilities of the Federal officials described in subscetion including-

(i) the views of the Department of DefenNe >vith resped, to the national seeurity 

implications of a particular control or decision; 

(ii) the VIC\NS of the Department of 

State with respect to the foreign policy impli(~ations of a partieular eontrol or tle(~ision; 

(iii) the v1ews of the Department of 

lDnergy with respect to the implications for 

nuclear proliferation of a particular control 

or decisiou; and 

(iv) the views of the Department of 

Commerce ~with respect to the administration of an efficient, coherent, reliable, enforceable, and predictable export control 

system, and the resolution of competing 

views or policy objectives described in section 102. 
29


29812a-28.eps

28 

(2) AUTHORITY TO SEEK IKFOR.J\IATIOK.-The 

2 Federal officials described in subsection (a) may, in 

3 <:arry:ing out the purposes set forth in paragTaph (1), 

4 seek information and advice from experts who are 

5 not officers or employees of the Federal Govern6 mcnt. 

7 (3) TRANS:\IITT~U AND lMPlJE:\IF.NTATIOK OF 

8 EVALT~ATIO:'-JS.-The results of the indepemlent eval9 nations conducted pursuant to paragraph (l)(D) 

l 0 shall be transmitted to the President and the Con11 gress, in elassified form if necessary. Subject to the 

12 delegation of authority by the President, the Federal 

13 offieials deserihed in suhsedion (a) shall determine, 

14 direct, and ensure that improvements recommended 

15 in the evaluations are implemented. 

16 SEC. 106. CONTROL LISTS. 

17 The President shall, pursuant to the delegation of au18 thority in section105, eusure that19 ( 1) a process is established for regular inter20 ageney re\~ew of eaeh list established under section 

21 10,1(a)(l), that pursuant to such review the Sec22 retary of Commeree regularly updates such lists to 

23 ensure that uew items (including emerging eritical 

24 technologies) are appropriately controlled, and that 
30


29812a-29.eps

2!-) 

the level of <~ontrol of items on the list~ are a<\jnsted 

2 as conditions change; 

3 (2) information and e:lqJertise is obtained from 

4 officers and employees from relevaut l•'ederal departS ments, agencies, and offices and persons outside the 

6 Federal Government who have technical expertise, 

7 >vith respect to the characteristics of the items con8 sidered for eaeh list estahlislu~a umler seetion 

9 1 04( a) ( 1) and the effect of eon trolling the items on 

l 0 addressing the poliey set forth in section 1 02; 

11 (3) eaeh list established under section 104(a)(l) 

12 appropriately identifies eaeh entry that has been in13 eluded hy virtue of the partieipation of the rnited 

14 States m a multilateral regime, organization, or 

15 gTonp the purpose of whieh is eonsistent with and 

16 supports the poliey of the United States under this 

17 title relating to the control of mqJOrts, ree::\c-ports, and 

18 transfers of items; and 

19 (!1) each list established under section 104(a)(1) 

20 is published by the Secretary of Commerce in a form 

21 that facilitates eomplianee ~with it and related re22 quirements, particularly by small- and medium-sized 

23 businesses, aud academic iustitutions. 
31


29812a-30.eps

80 

1 SEC. 107. LICENSING. 

2 IN GENER1\L.-The President shall, pursuant to 

3 the delegation of authority in seetion lOG, establish a pro4 cedure for the Department of Commerce to license or oth5 crwise authoriz;c the export, reexport, and transfer of 

6 items controlled under this title in order to cany out the 

7 policy set forth in sed.ion 102 aml the requirements set 

8 forth in section 10:3(b). The procedure shall ensure that9 ( 1) license applications, other requests for au10 thorizatiou, ancl related dispute resolution proee11 dures are considered and decisions made \vith the 

12 participation of appropriate departments, agencies, 

13 and offices that have delegated functions under tllis 

14 title; and 

15 licensiug dceisious arc made in an expcdi16 tious manner, 'vith transpareney to applicants on the 

17 statns of li(~ense and other authorization proeessing 

18 and the reason for denying any license or request for 

19 authori:~:ation. 

20 (b) SE.\ISE OF CONGRESS.-lt is the scuse of Con21 gress that the President should make best efforts to en22 sure that an aeeurate, f'onsistent, and timely evalnation 

23 and processing of licenses or other requests for authoriza24 tion to export, reexport, or transfer items eo11trolled under 

25 this title is aceomplished ·within 30 da.ys from the date 

26 of such license request. 
32


29812a-31.eps

:n 

(e) FEES.-Ko fee may be eharged in eonnedion vvith 

2 the submission, proeessing, or eonsideration of any appli3 cation for a lieen~e or other authorization or other re(tUe~t 

4 made iu eouueetion with any regulatiou in effeet under 

5 the authority of this title. 

6 SEC. 108. COMPLIANCE ASSISTANCE. 

7 (a) SYSTEM FOR SEEIGKG ASSISTANCE.-The Presi8 atmt may e~tahli~h a system to provide Unitea State~ per9 sons with assistanee in eomplying with this title, whieh 

l 0 may in elude a meehanism for providing information, in 

11 elassified form as appropriate, who arc potential eus12 tomers, suppliers, or business partners with respeet to 

13 item~ eontrolled under this title, in order to further ensure 

14 the prevention of the export, reexport, or transfer of items 

15 that may pose a threat to the national ~e(mrity or foreign 

16 policy of the United States. 

17 SECURITY CLEARANCES.-In order to earry out 

18 subseetioll (a), the President may issue appropriate seeu19 rity elearanees to persons deseribed in that subseetion who 

20 are responsible for eomplying with this title. 

21 (e) ASSIST~~~CE FOR CERTAIN BUSINESSES.-

22 (1) IK GENERAlJ.-Not later than 120 days 

23 after the date of the enaetment of this Aet, the 

24 President shall develop and submit to Congress a 

25 plan to assist small- and medium-si"'ed rnited 
33


29812a-32.eps

02 

State~ in e::qJOrt lieensing and other pr<H~e~~e~ under 

2 this title. 

3 (2) Co~TEKTS.-The plan ~hall indude, among 

4 other things, arrangements for the Department of 

5 Commerre to provlde ronnseling to businesses de6 seribed in paragraph (1) on filing applieations aml 

7 identifying items eontrolled under this title, as well 

8 a~ propo~al~ for ~erninar~ and eonferenee~ to e<hwate 

9 surh businesses on e::qJort rontrols, lirensing proeel 0 dures, and related obligations. 

11 SEC. 109. REQUIREMENTS TO IDENTIFY AND CONTROL 

12 EMERGING CRITICAL TECHNOLOGIES IN EX13 PORT CONTROL REGULATIONS. 

14 (a) IN GENERAL.-The President shall, pursuant to 

15 the delegation of authority in ~edjon 10f5, e~tahlish and, 

16 in coordination with the Department of Commeree, the 

17 Department of Defense, the Department of State, the De18 partment of Energy, aud other departments determined 

19 to be neeessary, lead a reg·ular, ongoing interageney proe20 ess to identify emerging eritieal technologies that are not 

21 identified in any list of items eontrolled for e::qJCn-t under 

22 United States law or regulations, but that nonetheless 

23 eould be essential for maintaiuiug or inercasing the tceh24 nological advantage of the United States over eountries 

25 that pose a significant threat to the national security of 
34


29812a-33.eps

:10 

the United States '\\'ith respeet to national defense, intel2 ligence, or other areas of national security, or gaining such 

3 an advantage over s1wh (~ountries in areas where sueh an 

4 advautag·e may not currently exist. 

5 RRQTTTRRTvTR'l'TS.-The interagency process re6 quircd under subsection (a) shall7 (1) draw upon the e}qJertise, resources, and eq8 uitieo-; of all relevant rnited States Government 

9 agencies, industries, and academic institutions to 

l 0 identify and describe such emerging critical tech11 nologies; 

12 (2) require the relevant e;,.}lort control authority 

13 to publish propoo-;e!l regulationo-; for pnhlie eomment 

14 that would control heretofore unlisted emerging crit15 ieal tedmologies identified pursuant to subo-;eetion 

16 (a) aud control the release of each such technology 

17 to destinations, end uses, or end users as determined 

18 by the President; 

19 ( 3) require the Seeretary of Commeree, the See20 retary of State, and the Secretary of Defense to pro21 pose to the relevant multilateral e::-qJort eontrol re22 gimes in the following year that such emerging crit23 ieal tcclmologies be added to the list of technologies 

24 controlled by sueh regimes; 
35


29812a-34.eps

:14 

( 4) determine whether national ~eeurity eon2 cerns warrant continued unilateral export controls 

3 over tedmologie~ identified pursuant to sub~eetion 

4 (a) if the relevant nmltilateral export control reg-ime 

5 does not agTee to list such technologies on its control 

6 list within three years; and 

7 (5) require the agencies responsible for admin8 istt~ring- the e:A1lort eontrols identified in ~uhseetion 

9 (a) to remove or revise, as appropriate, existing conl 0 trols cletermined to warrant removal or revision as a 

11 result of iusight or information obtained during cf12 forts undertaken to comply with the requirements of 

13 this ~eetion. 

14 SEC. 110. PENALTIES. 

15 (a) U~LA\VT<'TTL Ams.-

16 (1) ll\ GENERAL.-lt shall be unlawful for a 

17 person to violate, attempt to violate, conspire to v:io18 late, or cause a violation of this title or of any regu19 lation, order, license, or other authorization issued 

20 under this title, ineluding any of the unlmvful acts 

21 described in paragraph (2). 

22 (2) SPECIFIC UNLAvv'FUL ACTS.-The unlaw'ful 

23 acts described in this paragraph arc the following: 

24 (A) No person may engage in any conduct 

25 prohibited by or contrar.r to, or refrain from e11-
36


29812a-35.eps

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6 

7 

8 

9 

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12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

85 

gaging in any (~ondlH~t re(plired hy thi~ title, the 

Export Administration Regulations, or any 

order, lieen~e or authorization i~~ued thereunder. 

(B) :.Jo person may cause or aid, abet, 

counsel, command, induce, procure, or approve 

the doing of any act prohibited, or the omission 

of any ad require!l by thi~ title, the Export Administration Regulations, or any order, license 

or anthori;mtion issued thereunder. 

(C) J'\o person may solicit or attempt a violation of this Act, the E:..l)Ort Achninistration 

Regulation~, or any order, li(~en~e or authorization issued thereunder. 

(D) No per~on may eonspire or ad in eonccrt with one or more other pcrsous iu any 

manner or for any purpose to bring about or to 

do any act that constitutes a violation of this 

title, the Export Administration Regulations, or 

any order, license or authorihation issued thereunder. 

(E) No person may order, buy, remove, 

conceal, store, usc, sell, loan, dispose of, transfer, transport, finance, forward, or othenvise 

service, in whole or in part, any item e:..'Jlorted 
37


29812a-36.eps

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3 

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6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

:16 

or to be e:qJorted from the rnited States, or 

that is othenv:ise su1~ject to the E}qJOrt Administration Regulations, \vith knovvlellge that a 

violation of this title, the Export Administration 

Regulations, or any order, license or authori7.ation issued thereunder, has occurred, is about 

to occur, or is intended to occur in connection 

with the item unless valid authorization is obtained therefor. 

(F) No person may make any false or misleading representation, statement, or certification, or falsify or conceal any material fact, 

either diredJy to the Department of Commeree, 

or an offieial of any other United States ageney, or indiredly through any other person-

(i) in the course of an investigation or 

other action subject to the Export Administration Regulations; 

(ii) in connection vvith the preparation, submission, issuance, use, or maintenance of any e:x}Jort C'ontrol document or 

any report filed or required to be filed pursuaut to the Export Administration Regulations; or 
38


29812a-37.eps

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3 

4 

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6 

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8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

23 

24 

25 

:17 

(iii) for the purpose of or in (~onne(~-

tion with effecting any e:1c-port, reexport, or 

transfer of an item suhjeet to the E:1c11ort 

Administration Regulatious or a service or 

other activity of a United States person described iu section 104. 

(G) No person may engage m any transaetion or take any other aetion vv:ith intent to 

evade the provisions of this title, the Export 

Administration Regulations, or any order, license, or authori:,mtion issued thereuuder. 

(H) Ko person may fail or refuse to comply ''vith any reporting or reeordkeeping requirements of the E:1c1Jort Administration Iiegulations or of any order, li(~ense, or authorization 

issued thercuudcr. 

(I) Except as specifically authorized in the 

Export Admiuistration Regulations or in writing by the Department of Commerce, no person 

may alter any license, authori;r.ation, export control document, or order issued under the Export 

Administration Regulations. 

(,T) No persou may take any action that is 

prohibited by a denial order issued by the Department of Commerce to prevent imminent 
39


29812a-38.eps

88 

·violations of this titl~, th~ E:A1lort Adrninistra2 tion R,egulations, or any order, license or au3 thorization issn~d th~r~under. 

4 (~3) ADDl'l'lO~AL RBQUlRK\UJNTS.-For pur5 poses of subparagTaph (G), any representation, 

6 statement, or certificatiou made by auy person shall 

7 be deemed to be continuing in effect. Each person 

8 who haN made a r~preNentation, statement, or eertifi9 cation to the Department of Commerce relating to 

l 0 any order, license, or other anthori:t:ation issued 

11 under this title shall uoti(v the Department of Com12 merce, in \vriting, of any change of any material fact 

13 or intention from that previonNly represented, statea, 

14 or eertified, immediately upon reeeipt of any infor15 mation that would lead a reasonably prudent perNon 

16 to know that a chan~tc of material faet or intentiou 

17 had oceurred or may oeeur in the future. 

18 (b) CRiMINAL PBNAL'l'Y.-

19 (1) KNOWING v"IOLA . .TIONS.-Exeept as provided 

20 in paragraph (2), a person who knm'\ingly '\iolates or 

21 eonspires or attempts to v-iolate subseetion (a) shall 

22 be fined not more than 5 times the amount or value 

23 of the exports, reexports, or trausfers involved, or 

24 $500,000, whichever is greater, and, in the ease of 
40


29812a-39.eps

an individual, impri~oned not more than 5 year~, or 

2 both. 

3 (2) VVILLFrL ~VIOI"'"~TIONS.-A pen.;on who will4 fully violates or conspires to or attempts to violate 

5 any provision of subsection (a) shall be fined not 

6 more than 5 times the amount or value of the cx7 ports, reeA.l)Orts, or transfers involved, or 

8 $1,000,000, whiehever i~ gn~ater, and, in the ea~e of 

9 an individual, shall be fined not more than 

10 $250,000, or imprisoned not more than 10 years, or 

11 both. 

12 (c) Cn:ITJ PENATirms.-

13 (1) ArTHORITY.-The Pre~ident may irnpo~e 

14 the following civil penalties on a person for each vio15 lation by that person of thi~ title or any regulation, 

16 order, or lieense issued under this title, for each vio17 lation: 

18 (A) A fine of not more thau $250,000 or 

19 an amount that is tw-ice the value of the trans20 aetion that is the basis of the violation with re21 speet to which the penalty is imposed, which22 ever is greater. 

23 (B) Revocation of a lice use issued under 

24 this title to the person. 
41


29812a-40.eps

4-0 

(C) A prohibition on the person's ahility to 

2 e:lq)ort, ree:lq)ort, or transfer any items, whether 

3 or not snhjeet to eontrols under this title. 

4 (2) PtWCJ:<JDURBJS.-Any civil penalty under this 

5 subsection may he imposed only after notice and op6 portuuity for an ageucy hearing ou the record in ac7 corclance with sections 554 through 557 of title 5, 

8 Unitea States Colle. 

9 (3) ST~,I,_~DARDS FOR LEv~LS OF CIVIL PEN10 AT/l'Y.-The President may by reg<1lation provide 

11 standards for establishing levels of civil penalty 

12 under this subsection based upon factors such as the 

13 seriousness of the violation, the eulpability of the vi14 olator, and such mitigating factors as the violator's 

15 re(~ord of eooperation w-ith the Government in dis16 dosing the violation. 

17 (d) CRIMINAl. FORFEITURE OF PR.OPERTY I~TEREST 

18 ~,I,_"'"D PROCEEDS.-

19 (1) FOR.FEITrRE.-Any person who is convicted 

20 under subsection (h) of a violation of a control im21 posed under section 103 (or any regulation, order, 

22 or license issued vvith respect to such control) shall, 

23 in addition to an,v other penalty, forfeit to the 

24 United States-
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41 

(A) any of that person's interest in, se(m2 rity of, claim against, or property or contractual 

3 rights of any kind in the tangible items that 

4 were the subject of the violation; 

5 (D) any of that person's interest m, secu6 rity of, claim against, or property or contractual 

7 rights of any kind in tangible property that was 

8 used in the violation; and 

9 (C) any of that person's property eonstil 0 tuting, or derived from, any proceeds obtained 

11 directly or iudirectly as a result of the violatiou. 

12 PROCFJDURE8.-The procedures in any for13 feiture under this subseetion, and the duties and au14 thority of the courts of the United States and the 

15 Attorney General ~with resped, to any forfeiture <W16 tion under this subseetion or with respect to any 

17 property that may be subject to forfeiture under this 

18 subsection, shall be governed by the provisions of 

19 section 196:3 of title 18, United States Code. 

20 (e) Prncm. Ccr\TV'TCTTOKS.-

21 (1) LICENSE BAR.--

22 (A) 1::--J GEKERAL.-The President may23 (i) deny the eligibility of any person 

24 con,.7icted of a criminal violation described 

25 in subparagraph (D) to e"Xl)Ort, reexport, or 
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transfer outside the U nite!l States any 

item, whether or not subject to controls 

under this title, for a perioa of up to 10 

years begiuning em the date of the convietion; and 

(ii) revoke any license or other authorization to export, ree2q)ort, or transfer 

items that was issued under this title and 

in which such person has an interest at the 

time of the conviction. 

(B) VIOLA'IIONS.-The violations referred 

to in subparagraph (A) are any criminal violations of, or <~riminal attempt or eonspinwy to 

violate-

(i) this title (or any regulation, license, or order issued under this title); 

(ii) any regulation, license, or order 

issued under the International Emcrgcuey 

Eeonomic Powers Act; 

(iii) section 79:3, 794, or 798 of title 

18, rnited States Code; 

(iv) seetion 4(b) of the Internal Security Act of 1950 (50 U.S.C. 783(b)); or 

(v) section 38 of the ~Arms E::q)ort 

Control Aet (22 U.S.C. 2778). 
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4:1 

(2) APPLICATION TO OTHER PARTIE8.-The 

2 President may exercise the authority under para3 gn1ph ( 1) Yvith respe(•t to any person related, 

4 through affiliation, ownership, control, or position of 

5 responsibility, to any person conv-icted of any viola6 tion of law set forth in paragTaph (1), upon a show7 ing of such relationship 'With the convicted party, 

8 and sul\jed to the proeedures set fmih in snbse('tion 

9 (c)(2). 

10 (f) OTHER ArTnomTms.-Nothing m subsection 

11 (c), (d), or (c) limits12 (1) the availability of other administrative or 

13 judi<·ial remedies \v:ith respeet to ~violations of this 

14 title, or any regulation, order, license or other au15 thorization issued under this title; 

16 (2) the authority to compromise and settle ad17 ministrative proceedings brought w-ith respect to v-io18 latious of this title, or any regulation, order, license, 

19 or other authorization issued under this title; or 

20 the authority to compromise, remit or miti21 gate seizures and forfeitures pursuant to section 

22 1(b) of title \TI of the Act of .June 15, 1917 (22 

23 U.S.C. 401(b)). 
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44 

1 SEC. 111. ENFORCEMENT. 

2 (a) ATTTHORITIES.-In onl~r to ~nfore~ this title, th~ 

3 President may4 (1) issue regulations, orders, and guidelines; 

5 (2) require, inspect, and obtain books, records, 

6 and any other information from any person subject 

7 to the provisions of this titl~; 

8 ( 3) administer oaths or affirmations and by 

9 subpoena require any person to appear and testify or 

10 to appear and produce books, records, and other 

11 "\Vritings, or both; 

12 ( 4) eonduct investigations (including under13 cover) in the United States and in other countries, 

14 including intercepting any \Yire, oral, and electronic 

15 communications, eoudueting elcctrollic surveillance, 

16 using pen registers and trap and trace devices. and 

17 earry:ing out aequisitions, to the e:Aient authorized 

18 under chapters 119, 121, and 206 of title 18, 

19 United States Code, and other applicable laws of the 

20 Uuitcd States; 

21 (5) inspect, search, detain, seize, or Issue tem22 porary denial ord~rs ~with r~sped to items, in ;my 

23 form, that are sul~ject to controls under this title, or 

24 conveyanees on which it is believed that there are 

25 items that have been, arc beiHg, or are about to be 

26 e"X11orted, reexported, or transferred in violation of 
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this title, or any regulations, order, lieense, or other 

2 authorization issued thereunder; 

3 ( 6) eondnet prelie.ense inspeetions and post4 shipment verifieations; and 

5 (7) exeeute warrants and make arrests. 

6 (b) l:DNJ:<'ORCElVlEl'\1' m' SUBPOENAS.-ln the case of 

7 contumacy by, or refusal to obey a subpoena issued to, 

8 any person under suhseetion (a)(J), a distriet (~onrt of the 

9 United States, after notice to such person and a hearing, 

l 0 shall have jurisdiction to issue an order requiring such 

11 person to appear and give testimony or to appear and 

12 produce books, and other vvritings, regardless of 

13 format, that are the suhjeet of the snhpoena. Any failure 

14 to obey such order of the court may be punished by such 

15 eourt as a eontempt thereof. 

16 (c) BEST PPc.c~C'l'lCI£ GU1DI£Ll~ES.-

17 (1) IK GENERAL.-The President, m consulta18 tion with the Secretary of Commerce and other J1'ed19 eral offieials described in section 105(a), should pub20 lish and update "best practices'' g11idelines to assist 

21 persons in developing and implementing, on a vol22 untary basis, effective e2q)ort control programs in 

23 compliance with the regulations issued under this 

24 title. 
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46 

(2) EXPORT COMPLLiliCE PRDfiRAl\I.-The irn2 plementation by a person of an effective export com3 pliarwe prognun and a high quality overall e::qwrt 

4 compliance effort by a person should ordiuarily be 

5 given vveight as mitigating factors in a civil penalty 

6 actiou against the person under this title. 

7 (d) REFEREKCE TO ENFORCEJVIENT.-For purposes 

8 of this sed.ion, a referen(~e to the enforeement of, or a vio9 lation of, this title includes a reference to the enforcement 

l 0 or a violation of any regulation, order, lice11se or other au11 thori11ation issued pursuant to this title. 

12 (e) TMlVfr'\TTY.-A person shall not be excused from 

13 eomplying with any requirements under this se(•tion be14 cause of the person's privilege against self-incrimination, 

15 hut the immunity provisions of seetion 6002 of title lR, 

16 United States Code, shall apply with respect to any indi17 vidual who specifically claims such privilege. 

18 (f) COW'llH<::NTLALl'rY OB' l.:--u·muvL~no~.-

19 (1) EXEMPTIOKS FB.O::\I DISCLOSURE.-

20 

21 

22 

23 

24 

25 

(A) TN GENRRM,.-Tnformation obtained 

under this title may be withheld from disclosure 

only to the extent permitted by statute, except 

that information described in subpara21n1ph (B) 

shall be vvithheld from public. disclosure and 

shall not be subje0t to disclosure under section 
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47 

552(b)(8) of title 5. rnited States Code, nnless 

2 the release of such information is determined by 

3 the President to be in the national interest. 

4 (B) lN!<'OHlVIA'l'lON Dl<JSCHIBBD.-luforma5 tion de:o:wribecl in this subparagraph is informa6 tion submitted or obtained iu connection vvith 

7 an applieation for a lieense or other authoriza8 tion to e::qJOrt, reexport, or transfer iterm;, en9 gage in other aetivities, a reeordkeeping or rel 0 porting requirement, enforcement activity, or 

11 other operations under this title, iucluding12 (i) the lieense applieation, lieense, or 

13 other authorization itself; 

14 (ii) classifieation or achrisory opinion 

15 re(tnests, and the response thereto: 

16 (iii) lieeusc determinations, and infor17 mation pertaining thereto; 

18 (iv) infonnatiou or evidcnec obtained 

19 in the course of any investigation; and 

20 (v) informatim1 obtained or furnished 

21 in eonnection vv~th any international ag-ree22 ment, treaty, or other obligation. 

23 (2) I:-..f}'ORlVL~TlON '1'0 'l'HE CONGRESS A_c"<"D 

24 GAO.-
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(A) IK C+ENERAL.-Kothing in this seetion 

shall be construed as authorizing the withholding· of information from the Congress or 

from the Government Accouutability Office. 

(B) AVATh\DJT,TTY TO Tim CONGR.ESS.-

(i) L'! GBKE&'lli.-.L\rty informatiou 

obtained at any time under any prnv:ision 

of the E::qJOrt Adrnini;;tration Aet of 1979 

in effect on the day before the date of 

the enactment of this Act and as continued 

in effect pursuant to the International 

Emergency Economic Powers Act), under 

the Export Administration Regulations, or 

under this title, including any report or li-

(~ense appli(~ation required under any sueh 

provision, shall be made available to a 

committee or subcommittee of Congress of 

appropriate jurisdiction, upon the request 

of the chairman or ranking minority member of such committee or subcommittee. 

(ii) PIWHIBITIO~ ON FURTHEH DISCLOSURE.-No such committee or subcommittee, or member thereof, may disclose any information made available under 

clause (i), that is submitted on a confiden-
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tial basis unless the full eommittee determines that the '\Vithholding of that information is eontrary to the national intereo-;t. 

(C) AVMhililLl'l'Y TO OAO.-

(i) TN cm~ERATJ.-Tnformation described in clause (i) of subparagraph (B) 

shall be subject to the limitations contained in sedion 716 of title :11, rnited 

States Code. 

(ii) PRCHTTDT'l'TO~ ON FURTHER. DTSCLOSURE.-1\n officer or employee of the 

Government Accountability Office may not 

disdose, exeept to the CongTeo-;s in aeeordanee with this paragraph, any such information that is submitted on a (~onfidential 

basis or from which any individual can be 

identified. 

(3) lN1''0HlVL~l'lON Sl:Lllil)!G.-

(A) IN GENEHAL.-r\.ny Federal official described in section 1 05(a) who obtains information that is relevant to the enforcement of this 

title, ineluding information pertaining to any investigation, shall furnish such information to 

each appropriate department, agency, or office 

with enforcement responsibilities under this see-
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tion to the extent eonsi;.;tent with the proteetion 

of intelligence, counterintelligence, and law enforeernent sourees, method,.;, and <:wtivities. 

(B) ExCKPTlONS.-'l'he provisions of this 

paragTaph shall not apply to information subject to the rcstrictious set forth in section 9 of 

title 13, rnited States Code, and return information, a,.; defined in sub;.;eetion (b) of ;.;eetion 

6103 of the Internal Revenue Code of HJ86 (26 

U.S.C. 61 03(b)), may he disclosed only as authorized by that section. 

(C) EXCHANGE OF TKFORMATTOK.-The 

Pre;.;i!lent shall en;.;ure that the heads of departments, agencies, and offices w-ith enforcement 

authorities under this title, <~<msi;.;t.ent vvith protection of law cnforcemeut and its sources and 

methods-

(i) exchange a.ny licensing and enforcement information 1vith one another 

that is necessary to facilitate enforcement 

efforts under this section; and 

(ii) consult on a regular basis with 

oue another aud with the head of other departments, agencies, and offices that obtain information subject to this paragraph, 
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3 

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m order to faeilitate the exehange of such 

information. 

(D) INFORli:L~TIOK SILlliiNC} WITH FEDBRAL ~~GENCIES.-Lieensing· or enforeement information obtained under this title may be 

shared with heads of departments, ageumes, 

and offiees that do not have enforeement authorities under this title on a case-by-ease basis 

at the diseretion of the President. Sueh information may be shared only vvhen the President 

makes a determiuation that the sharing of this 

information is in the national interest. 

13 (g) REPORTINC+ REQUIREMEKTS.-In the adrninistra14 tion of this seetion, reporting requirements shall be de15 sigTwd so as to re!luee the cost of reporting, recordkeeping, 

16 and doeumeutation to the extent consistent with effective 

17 enforcement and eompilation of useful trade statisties. Re18 porting, reeordkeeping, and doeumcutatiou requirements 

19 shall be periodieally reviewed and revised in the light of 

20 developments in the field of information technology. 

21 (h) CIVIL FORFEITrRE.-

22 (1) IN GEKERAL.-Any tangible items seized 

23 under subsection (a) by designated offiecrs or em24 ployees shall be subjeet to forfeiture to the rnited 

25 States in aeeordanee v\~th applieable law, exeept that 
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29812a-52.eps

;)2 

property seized shall be returned if the property 

2 mvner is not found guilty of a civil or criminal v:iola3 tion under sedion 109. 

4 (2) PROCEDURES.-A_ny se1,;ure or forfeiture 

5 under this subsection shall be carried out in accord6 ancc with the proecdurcs set forth iu section 981 of 

7 title 18, United States Code. 

8 SEC. 112. ADMINISTRATIVE PROCEDURE. 

9 (a) lK OENERAL.-The functions exercised under 

10 this title shall be subject to sections 551, 553 through 

11 55D, and 701 through 706 of title 5, United States Code. 

12 (b) A!VfRJ'.:I)i\fEN'l'S '1'0 RRGTTT,A'l'TONS.-'l'he President 

13 shall notify in advanee the Committee on Banldng, Hous14 ing, and Urban Affairs of the Senate and the Committee 

15 on Foreign Affairs of the House of Representatives of any 

16 proposed ameudmcnts to the Exp01t Admiuistration Hcgu17 lations vvith an e~-planation of the intent and rationale of 

18 such ameudmeuts. 

19 SEC. 113. ANNUAL REPORT TO CONGRESS. 

20 (a) TN GRKF.RAL.-'l'he President shall submit to 

21 Congress, by December 31 of each year, a report on the 

22 implementation of this title during the preceding fiscal 

23 year. The report shall include an anal.ysis of24 ( 1) the effect of controls imposed under this 

25 title on eA.rports, reexports, and transfers of items in 
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50 

addressing threats to the national se<:nrity or foreign 

2 policy of the rnited States, including a cleseription 

3 of lieensing pro(:essing times; 

4 (2) the impact of such controls on the scientific 

5 and technological leadership of the l~nited States; 

6 (3) the consisteucy with such controls of export 

7 controls imposed by other countries; 

8 ( 4) efforts to provide e:lqJOrters with (:ompliane.e 

9 assistance, including specific actions to assist small-

] 0 and medium-si11ed businesses; 

11 ( 5) a summary of regulatory ehauges from the 

12 prior fiscal year; 

13 ( 6) a summary of export enforeement aetions, 

14 including of actions taken to implement end-use 

15 monitoring of dual-use, military, and other items 

16 sul:1ject to the Export Admiuistration lkgulations; 

17 (7) a summary of approved license applications 

18 to proscribed persons; and 

19 ( 8) efforts undertaken vvithin the previous year 

20 to eomply v'~th the requirements of section 109, in21 eluding any "critieal technologies" identified under 

22 such section and how or whether such critieal tech23 nologies were controlled for export. 
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54 

(h) FCJRM.-The report rettnired under suhsedion (a) 

2 shall be submitted in unclassified form, but may contain 

3 a dassifietl annex. 

4 SEC. 114. REPEAL. 

S (a) T'J GRNRR\L.-The Export Administration Act of 

6 1979 (50 U.S.C. App. 2401 ct seq.) (as contiuued in effect 

7 pursuant to the International Emergency Economic Pow8 ers Aet) is repealed. 

9 (b) IMPLE::\IENTATIOK.-'The President shall imple10 ment the amendment made by subsection (a) by exercising 

11 the authorities of the President uuder the International 

12 Emergency Economic Powers Act (50 U.S.C. 1701 et 

13 seq.). 

14 SEC. 115. EFFECT ON OTHER ACTS. 

15 (a) lt\ GENERAL.-Exeept as otherwise proviaed in 

16 this title, uothing contained in this title shall be coustrued 

17 to modify, repeal, supersede, or otherwise affect the provi18 sions of any other laws authorizing coutrol over exports, 

19 ree:x'J)orts, or transfers of any item, or activities of rnited 

20 States persons sul~ject to the Exl)Ort Administration Reg21 ulations. 

22 (b) COORDINATI0::--.1 OF CO::--.TTROLS.-

23 (1) IN GENERAL.-The authority grauted to the 

24 President under this title shall be exercised in such 

25 manner so as to achieve effective coordination v.~th 
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29812a-55.eps

f) f) 

all export eontrol and c-mndions authorities exereised 

2 by Federal departments and agencies delegated with 

3 authority under this title, partieularly the Depart4 meut of State, the Departmeut of the 'l'reasury, aml 

5 the Department of Energy. 

6 SENSE OB' COKGRESS.-lt lS the sense of 

7 Congress that in order to achieve effective coordina8 tion des(~ribed in paragraph (1), sueh Federal de9 partments and agencies-

] 0 (A) should continuously work to create en11 forceable rq:!'Ulations with respect to the export, 

12 ree:xllort, and transfer by rnited States and 

13 foreign ptTsons of e.ornrnodities, software, tedl14 nology, and services to various end uses and 

15 end users for foreign poliey and national seeu16 rity reasons; 

17 (B) should regularly work to reduce com18 plcxity in the system, including complexity 

19 caused merely by the existence of stn1ctural, 

20 definitional, and other non-policy based dif21 ferences between and among different export 

22 control and sanctions systems; and 

23 (C) should coordinate controls on items ex24 ported, ree2\.1JOrted, or transferred in connection 

25 1vith a foreig11 military sale under ehapter 2 of 
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29812a-56.eps

56 

the Arms E::qJOrt Control Aet or a eommereial 

2 sale under section 38 of the Arms E:A1JOrt Con3 trol Aet to reduee as rmwh unneeessary adrnin4 istrative burden as possible that is a result of 

5 differences between the exercise of those two 

6 authorities. 

7 (c) NOJ\il>ROLIFER~TION CO~TROLS.-Nothing in 

8 this title shall he eonstrued to supersede the proeednres 

9 published by the President pursuant to section :309(c) of 

10 the Nuclear Non-Proliferation Act of 1978. 

11 SEC. 116. TRANSITION PROVISIONS. 

12 TN GRNERAJJ.-All delegations, rules, regulations, 

13 orders, aeterminations, lieenses, or other forms of adrnin14 istrative action that have been made, issued, conducted, 

15 or alluwe!l to he('ome effedive under the Export Adminis16 tn1tion Act of Hl79 (as iu effect on the day before the 

17 date of the enactment of this Act and as continued in ef18 feet pursuant to the lnternatioual Emerg·ency Economic 

19 Pmvers Act), or the E:A1Jort Administration Regulations, 

20 and are in effect as of the date of the enactment of this 

21 Act. shall continue in effect according to their terms until 

22 modified, superseded, set aside. or revoked under the au23 thority of this title. 

24 (h) ,JUDICIAL PRO25 CEEDTNCJ.S.-'l'his title shall not affect any administrative 
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57 

or judi(~ial proceeding~ (~omrneneed, or any appli(~ation~ for 

2 licenses made, under the Export Administration Act of 

3 1979 (as in effeet on the day before the date of the en;wt4 meut of this Act and as continued in effect pursuant to 

5 the International Emergency Economic Powers Act), or 

6 the Export ~~dministration Regulations. 

7 (c) CERTAIN DETER.\UNATIONS Ac~ll R,EFERENCES.-

8 (1) STATE SPONSCmS OF TERRORISl\I.-Any de9 termination that was made under section 6(j) of the 

l 0 Ez-.rport Administration Act of 1979 in effect on 

11 the day before the date of the enactment of this Act 

12 and as continued in effect pursuant to the Tnter13 national Emergeney Eeonomie Powers Aet) ~hall 

14 continue in effect as if the determination had been 

15 made under seetion 104((~) of thi~ Ad. 

16 (2) REI<'ElU!:NCB;.-Any rcfereuce m any other 

17 prnvision of law to a country the government of 

18 which the Secretary of State has detennined, for 

19 purposes of section 6 (j ) of the Ex110rt Administra20 tion Act of 1 979 in effect on the day before the 

21 date of the enactment of this Act and as continued 

22 in effect pursuant to the International Emergency 

23 Economic Powers ~\.d), is a government that has re24 peatedly provided support for acts of international 

25 terrorism shall he deemed to refer to a country the 
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58 

government of whieh the Seeretary of State has de2 termined, for puq)oses of section 104( c) of this Act, 

3 is a government that has repeatedly provide!l sup4 port for acts of iuternational terrorism. 

5 TITLE II-ANTI-BOYCOTT ACT OF 

6 2018 

7 SEC. 201. SHORT TITLE. 

8 This Ad may be eited as the "Anti-Boyl'ott Aet of 

9 2018''. 

l 0 SEC. 202. STATEMENT OF POLICY. 

11 Cougrcss declares it is the poliey of the L uitcd 

12 States13 (1) to oppose restriet,ive trade pnwti('es or hoy14 cotts fostered or imposed by any foreign country, or 

15 requests to impm1e restrietive trade prad.iees or hoy16 eotts by au,v forcigu c-ountry, against other emmtrics 

17 friendly to the United States or against any United 

18 States persou; 

19 ( 2 ) to encourage and, in specified eases, require 

20 United States persons e11gaged in the e~l)Ort of 

21 goods or technology or other information to refuse to 

22 take actions, including furnishing information or en23 tcring into or implementiug agrecmeuts, which have 

24 the effect of furthering or supporting the restrictive 

25 trade practices or boycotts fostered or imposed by 
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59 

any foreigTl ("Ountry, or re<1ne~t~ to impo~e re~trietive 

2 trade practices or boycotts by any foreign country 

3 again~t a eonntry friendly to the United States or 

4 against any lJ uited States persou; and 

5 (3) to foster international cooperation and the 

6 development of iuternational rules and iustitutions 

7 to assure reasonable access to world supplies. 

8 SEC. 203. FOREIGN BOYCOTTS. 

9 (a) PROHIBITIO:.JS AND EXCEPTIONS.-

10 (1) PnonmTTTONS.-For the purpose of imple11 meuting the policies set forth in section 202, the 

12 President shall issue regulations prohibiting any 

13 United State~ person, with resped, to that pen.;on'~ 

14 activities in the interstate or foreign commerce of 

15 the United State~, from taking or knoviTingly agree16 ing to take an.v of the followiug actions with iuteut 

17 to comply vv'lth, further, or support any boycott fos18 tercel or imposed an.v foreigu cmmtry, or request 

19 to impose any boycott by any foreign country, 

20 against a country which is friendly to the United 

21 States and which is not itself the object of any form 

22 of boycott pursuant to United States law or regula23 tion: 

24 (A) Refusing, or requiring any other per25 son to refuse, to do business "~th or in the boy-
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eotted (•ountry, with any lmsiness emwern organized under the laws of the boycotted country, 

with any national or resident of the hoyeotted 

country, or with any other person, pursuant to 

an agreement with, a requirement of, or a request from or on behalf of the boycotting couutry. The mere absence of a business relationship 

with or in the boycotted eonntry ·with an:v lmsiness conc·ern organized under the laws of the 

boycotted emmhy, vvith any national or resident 

of the boycotted country, or with any other person. does not indicate the e:..-istence of the intent re<plired to establish a violation of regulations issued to carry out this subparagTaph. 

(B) Refusing, or requiring ;my other person to refuse, to employ or otherwise discriminating against any rnited States person on the 

basis of race, religion, sex, or national origin of 

that person or of any cnvner, officer, director, or 

employee of such person. 

(C) Furnishing information vvith respect to 

the race, religion, sex, or national origin of any 

United StateR persoH or of any owner, officer, 

director, or employee of such person. 
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(D) Furni;;hing information, or re(plesting 

the furnishing of information, about whether 

any person has, has had, or proposes to have 

auy business relatiouship (including a relationship by way of sale, purchase, legal or commercial representation, shipping or other transport, 

insurance, investment, or supply) ~with or in the 

hoyeotted (~ounhy, with any business (~oneern 

organized under the laws of the boycotted country, 'vith any national or resident of the boycotted country, or ·with any other persou which 

is knmvn or believed to he restricted from having any business relationship 1vith or in the boyeotting country. Nothing in this subparagraph 

shall prohibit the furnishing of normal business 

information in a commcreial context as defined 

by the Secretary. 

(E) l<'urnishing information about whether 

any person is a member of, has made contributions to, or is other"~se associated with or involved in the ac·tivities of any charitable or fraternal organization which supports the boycotted country. 

(F) Pay-ing, honoring, confirming, or otherwise implementing a letter of credit which con-
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tains any eondition or re<1nirement eomplianee 

2 with which is prohibited by regulations issued 

3 pursuant to this paragraph, and no rnited 

4 States person shall, as a result of the applica5 tion of this paragraph, he obligated to pay or 

6 otherwise houor or implement such letter of 

7 credit. 

8 (2) EXCEPTIONS.-Regulations issued pursuant 

9 to paragraph ( 1) shall provide exceptions forl 0 (A) complying or agreeing to comply ·with 

11 requiremeuts12 (i) prohibiting the import of goods or 

13 serv:iees from the hoy(~otted eountry or 

14 goods produced or services provided by any 

15 business eon(~ern org·anized under the laws 

16 of the boycotted couutry or by nationals or 

17 residents of the boycotted countr;y; or 

18 (ii) prohibiting the shipmeat of goods 

19 to the boycotting country on a carrier of 

20 the boycotted cmmtry, or by a route other 

21 than that prescribed by the boycotting 

22 country or the recipient of the shipment; 

23 (B) eomplyiug or agreeing to eomply with 

24 import and shipping document requirements 

25 \Yith respect to the eountry of origin, the name 
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of the earner and route of shipment, the name 

of the supplier of the shipment or the name of 

the provi<ler of other serviees, exeept that no information knowingly furnished or conveyed in 

response to such requirements may be stated in 

nc~mtivc, blacklistiug, or similar cxelusionary 

terms, other than vvith respect to carriers or 

route of shipment <IS may he permitted by sneh 

regulations in order to comply with preeautionary requirements protecting against war 

risks and confiseation; 

(C) complying or agreeing to comply in the 

normal eourse of business with the unilateral 

and specific. seleetion by a boycotting country, 

or national or resident thereof, of earriers, insurers, suppliers of services to be performed 

\vithin the boyeotting eountry or speeifie goods 

which, in the normal eoursc of busiucss, arc 

identifiable by souree when imported into the 

hoyeotting emmtry: 

(D) complying or agreeing to comply with 

e:;.q)ort requirements of the boyeotting countr:y 

relating to shipments or transshipments of exports to the boyeotted c.ountry, to any business 

concern of or orga11ihed under the laws of the 
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hoyeotted eonntry, or to any national or resident of the boycotted country; 

(E) eornpliance by an individual or agreement by an individual to comply with the immigration or passport requirements of any country 

with respect to such iudividual or any member 

of such individual's family or vvith requests for 

information regarding re(tnirements of employment of such individual within the boycotting 

country; and 

(11') compliance by a United States person 

resident in a foreig11 eountry or agreement by 

sueh person to eornply v'Vith the laws of that 

country ~with respec·t to his activities exclusively 

therein, and sneh regulations may eontain exceptions for such resident eomplying with the 

laws or regulations of that foreign eountry govenung imports into such country of 

trademarked, trade named, or similarly specifieally identifiable produets, or eomponents of 

products for his own use, including the performance of eontraetual serviees within that 

country, as may be defiued by sueh rq;mlations. 
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(:1) SPECIAL RrLES.-Regulations issued pur2 suant to paragraphs (2)(C) and (2)(F) shall not pro3 vide exeeptions from paragraphs (l)(B) aml (l)(C). 

4 ( 4) HULB OF CONSTl\CCTl0.:-..1.-~othiug in this 

5 subsection may he construed to supersede or limit 

6 the operation of the autitrust or civil rights laws of 

7 the United States. 

8 (5) ArrLICATIO:-J.-This seetion shall apply to 

9 any transaction or activity undertaken, by or 

l 0 through a rnited States person or any other person, 

11 with intent to evade the provisions of this section as 

12 implemented by the regulations issued pursuant to 

13 this suhsed,ion, and mwh regulations shall e::q1ressly 

14 prnvide that the exeeptions set forth in paragraph 

15 (2) shall not permit <wtivities or agreements (ex16 pressed or implied by a course of conduct, including 

17 a pattern of responses) otheryv:ise prohibited, which 

18 arc uot within the intent of such exccptious. 

19 (b) FOREIGN POLIC~ CONTROLS.-

20 (1) lK GENETlAh-Tn addition to the regula21 tions issued pursuant to subseetion (a), regulations 

22 issued under title I of this Act to carry out the poli23 eies set forth iu section 102(1)(D) shall implemeut 

24 the policies set forth in this section. 
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(2) REQriB.EMEKTS.-Sueh regTllations shall 

2 require that any United States person receiving a re3 quest for the furnishing- of information, the entering 

4 into or implementing· of agreemeuts, or the taking of 

5 any other action referred to in subsection (a) shall 

6 report that fact to the Secretary, together with such 

7 other information concerning such request as the 

8 Seeretary may re<plire for sueh ;wtion as the Se(~-

9 retary considers appropriate for carrying out the 

10 polieies of that section. Snch person shall also report 

11 to the Secretary whether such person intends to 

12 comply and >vhether such person has complied with 

13 sneh request. A1<y report filed pursuant to this para14 graph shall be made available promptly for public. in15 spe(·.tion and e.opying, exe.ept that information re16 gardiug the quautity, deseriptiou, and value of any 

17 goods or technology to which such report relates 

18 may be kept confidential if the Secretary determines 

19 that disclosure thereof would place the rnited States 

20 person involved at a competitive disadvantage. The 

21 Secretary shall perioclieally transmit summaries of 

22 the information contained in such reports to the Sec23 retary of State for sueh aetion as the Secretary of 

24 State, in consultation with the Secretary, considers 
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appropriate for earrying out the poli(~ie~ set forth in 

2 section 202. 

3 (e) PREEMPTION.-The provi~ion~ of thi~ ~e{~tion and 

4 the regulatious issued pursuant thereto shall preempt any 

S law, rule, or regulation of any of the several States or the 

6 District of Columbia, or any of the territories or posses7 sions of the United States, or of any governmental subdivi8 ~ion thereof, whid1la'.v, rule, or regulation pertain~ to par9 ticipation in, compliance with, implementation of, or the 

l 0 furnishing of information regarding restrictive trade prac11 tices or boycotts fostered or imposed by foreign countries, 

12 or requests to impose restrictive trade practices or boy13 eotts by any fon~ign eountry, again~t other (~ountrie~ 

14 friendly to the United States. 

15 SEC. 204. ENFORCEMENT. 

16 (a) CIVlL PENAL'l'IBS.-'l'he President may impose 

17 the following civil penalties on a person who v-iolates sec18 tion 203 or any regulation issued uuder this title: 

19 (1) A fine of not more than $250,000 or an 

20 amount that is twice the amount of the transaction 

21 that is the basis of the violation with respect to 

22 which the penalty is imposed. 

23 (2) Revocation of a license issued under title I 

24 to the person. 
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(:1) A prohibition on the per~on'~ ability to ex2 port, reexport, or transfer any items, whether or not 

3 ~n1{jeet to (•ontrols under thi~ title. 

4 (b) PHOCEDUI::U£8.-Any civil penalty under this see5 tion may he imposed only after notice and opportunity for 

6 an agcnc·y hearing on the record iu accordance with sec7 tions 654 through 657 of title Ei, United States Code, and 

8 ~hall he ~nl:jeet to jndieial revievv in aeeordanee with ehap9 ter 7 of such title. 

10 (c) STA~DARDS FOR. LRITF.LS OF Crvnj PF.~ATlrY.-

11 The President may by regulation provide standards for es12 tahlishing levels of civil penalty umler this section based 

13 upon faetor~ ~nd1 as the ~eriousneo-;~ of the violation, the 

14 culpability of the v-iolator, and the v-iolator's record of co15 operation with the Government in di~dosing the ~violation. 

16 TITLE III-SANCTIONS REGARD17 lNG MISSILE PROLIFERATION 

18 AND CHEMICAL AND BI0-

19 LOGICAL WEAPONS PR0-

20 LIFERATION 

21 SEC. 301. MISSILE PROLIFERATION CONTROL VIOLATIONS. 

22 (a) VIOh~TIONS BY UNITED STATES PERSONS.-

23 (1) SANC'l'lONS.-

24 (A) SANCTIONABLE ACTIV1TY.-The Presi25 dent shall impose the applicable sanctions de-
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~eribd in suhparagTaph (B) if the President 

determines that a United States person knowing·ly-

(i) exports, reexports, or transfers 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 A.rms E2q)ort 

Control Aet, title I of thi~ Aet, or any regulations or orders issued under any such 

provisions; or 

(ii) conspires to or attempts to engage 

in such e"Xl)Ort, reexport, or transfer. 

(B) SA,.~CTIONS.-The ;;anetions that apply 

to a United States person under subparagraph 

(A) are the follovving: 

(i) lf the item on the lVl'l'CR }u:mex 

involved in the export, reexport, or transfer 

is missile equipmeut or technology within 

eategory II of the MTCR 1\:tmex, then the 

President shall deny to such United States 

person, for a period of 2 years, lieenses for 

the transfer of missile equipment or teehnology eontrolled under title I. 

(ii) If the item on the MTCR. Annex 

involved in the exl)(lrt, ree"X'J)Ort, or transfer 
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1s rniNsile equipment or te(~hnology within 

2 category I of the MTCR. }nmex, then the 

3 President shall !leny to Nneh Unitetl States 

4 perscm, for a period of not less than 2 

5 years, all licenses for items the transfer of 

6 which is eontrollcd uudcr title l. 

7 (2) DISCRETIONARY S~~'l"CTIONS.-In the case 

8 of any determination referrea to in paragraph (1), 

9 the President may pursue any other appropriate 

l 0 penalties under section 1 09 of this Act. 

11 (3) WALVER.-Tbc President may waive the im12 position of sanctions under paragraph (1) on a per13 son \'\ith respeet to a produet or seni(~e if the Presi14 dent c·ertifies to the Congress that15 (A) the produd or servi(~e 18 esNential to 

16 the national security of the United States: aud 

17 (B) such person is a sole source supplier of 

18 the product or scrviee, the produet or serviec is 

19 not available from any alternative reliable sup20 plier, and the need for the product or senice 

21 cannot be met in a timely manner by improved 

22 manufacturing processes or technological clevel23 opmcnts. 

24 (b) TRANSFERS OF ::VlrSSII,E EQUIP}IE"l"T OR TECH25 '\OJ.O(JY DY Fcm.ETGN PBRSO"l"S.-
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(1) Sk~CTIONS.-

(A) S~<L"I\CTIOXABLE ACTIV1TY.-Subject to 

paragntphs (:1) through (7), the President shall 

impose the applicable sanctions under subparagraph (B) on a foreign person if the President-

(i) determines that a foreign person 

kn<lV>ingly-

(I) e:A'J)Orts, ree:A'J)Orts, or transfers any MTCR equipment or techuology that contributes to the design, 

development, or production of missiles 

in a eountry that is not an l\!ITCR adhereiit and would be. if it were rnited 

States-origin equipment or tedmology, 

sul~ject to the jurisdiction of the 

United States under title I; 

(ll) conspires to or attempts to 

engage in such export, ree:A'J)Ort, or 

transfer; or 

(III) facilitates such e:A'J)Ort, reexport, or transfer by any other person; 

or 
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(ii) has made a iletermination with re2 spect to the foreign person under section 

3 78(a) of the 1\.rrns Export Control Aet. 

4 (B) S~~\fCTIONS.-'l'he sauctions that apply 

5 to a foreign person under subparagraph (A) are 

6 the followiug: 

7 (i) If the item involved in the e:;q)ort, 

8 ree1-.1Jort, or transfer is within (~ategory II 

9 of the MTCR Annex, then the President 

l 0 shall deny, for a period of 2 years, licenses 

11 for the transfer to such foreign person of 

12 missile equipment or technology the trans13 fer of whieh is eontrolled unaer title I. 

14 (ii) If the item involved in the export, 

15 ree1-.1Jort, or transfer is vvithin eategmy I of 

16 the ~\l'l'CR ~\nnex, then the President shall 

17 deny, for a period of not less than 2 years, 

18 licenses for the transfer to such forcigu 

19 person of items the transfer of which is 

20 controlled under title T. 

21 (2) INAPPLICABILITY vYITH RESPECT TO MTCR 

22 ADHER.E~TS.-Paragraph (1) does not apply with 

23 rcspeet to24 (A) any e1-.1JOrt, reexport, or transfer that 

25 1s authorized by the laws of an MTCR adher-
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70 

ent, if s1wh authorization 1s not obtained by 

2 misrepresentation or fraud; or 

3 (B) any eJqJOrt, reeA1lort, or transfer of an 

4 item to au end user in a eouutry that is au 

5 1\TTCR adherent. 

6 (3) Ei''l<'ECT m' ENFORGElVIEN'l' ACTIO~S BY 

7 MTCR ADHERENTS.-Sanetions set forth in paraS gn1ph (1) may not he imposed under this subseetion 

9 on a person with respeet to aets deseribed in sueh 

l 0 paragTaph or, if sueh sanctions are in effect against 

11 a person on account of such acts, sueh sanetions 

12 shall be terminated, if an 1\TTCR adherent is taking 

13 judi(~ial or other enforeement ~wtion against that 

14 person vv'ith respeet to sueh or that person has 

15 been found hy the government of an MTCR adher16 cut to be iunoecnt of wrougdoiug vvith rcspeet to 

17 such acts. 

18 ( 4) WAIVER AND REPORT TO COl'\GRESS.-

19 (A) WAIVER AUTHORITY.-The President 

20 may waive the application of paragraph (1) to 

21 a foreign person if the President determines 

22 that such waiver is essential to the national se23 curity of the United States. 

24 (B) NOTIFICATIO~ A~"\JD REPORT TO CON25 cmRSS.-In the event that the President decides 
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to apply the wmver deseribed in subparagraph 

2 (A), the President shall so notify the appro3 priate eongressional committees not less than 

4 20 workiug days before issuiug the waiver. 

5 Such notification shall include a report fully ar6 ticulating the rationale a ud circumstances 

7 \vhich led the President to apply the ·waiver. 

8 (5) ADDITIOKAL WAIVER-The President may 

9 waive the imposition of sanctions under paragraph 

l 0 ( 1 ) on a person \vith respect to a product or service 

11 if the President certifies to the appropriate eongres12 sional committees that13 (A) the produd. or servwe 1s essential to 

14 the national security of the United States; and 

15 (B) sueh person is a sole souree supplier of 

16 the product or service, the product or service is 

17 not available from any alternative reliable sup18 plier, and the uced for the produet or service 

19 cannot be met in a timely manner by improved 

20 manufacturing processes or technological devel21 

22 

opments. 

(6) EXCEPTIONS.-The President shall not 

23 apply the sanction uuder this subsection prohibiting 

24 the importation of the products of a foreign per25 son-
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7;) 

(A) in the ea~e of proe.urernent of aefen~e 

articles or defense services-

(i) umler exi~ting (~ontraet~ or ~uhcontraets, including the exercise of options 

for production quantities to satisfy requirements essential to the national seem·ity of 

the United States; 

(ii) if the Pre~ident determine~ that 

the person to which the sanctions would be 

applied is a sole source supplier of the defense articles or defense services, that the 

defense articles or defense serviees are essential to the national seeurity of the 

rnited States, and that alternative som·ees 

are not rea!lily or rea~onahly availahle; or 

(iii) if the President determiues that 

sueh artieles or serviees are essential to the 

national security of the United States 

under defense coproduction agreements or 

~ATO Programs of Cooperation: 

(B) to products or sen-iees prov-ided under 

eontraets entered into before the date on which 

the President publishes his intention to 1mpose 

the sanetions; or 

(C) to-
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(i) spare parts; 

(ii) component parts, but not finished 

prodnets, essential to U nitetl States products or production; 

(iii) routine services and maintenance 

of products, to the cxteut that alternative 

sources are not readily or reasonably available; or 

(iv) information and technology essential to United States products or productiou. 

12 (e) DRFTl\TfTIONS.-Tn this section: 

13 ( 1) APPROPRU TE CO~(iB.ESSIONAL COlVL\HT14 TEES.-The term "appropriate eongressional eom15 mittees" rneans16 (A) the Committee on 11'orcigu Affairs of 

17 the House of R.epresentatives; and 

18 (B) the Committee on 11'orcigu Relations 

19 and the Committee on Banking, Housing, and 

20 Urban Affairs of the Senate. 

21 (2) DEFE~SE ARTICLES; DEFENSE 8ER171CES.-

22 The terms "defense articles'' and "defense se117:ices'' 

23 mean those items on the U tilted States Munitions 

24 lJist as defined in section 47(7) of the A_rms Export 

25 Control A('t (22 U.S.C. 2794 note). 
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(0) lVl188ILE.-The term "missile" means a cat2 egory I system as defined in the MTCR, Annex. 

3 ( 4) MISSILE TECHNOLOGY CONTROL REGT.\ffi; 

4 lVl'l'CR.-'l'he term "~Vlissile Tedmology Control l~e5 gime" or ":YfTCR" means the poliey statement, be6 tween the C nited States, the United Kingdom, the 

7 Federal Hepublic of Germany, France, Italy, Can8 ada, and ,Japan, announce!l on April 16, 19R7, to re9 strict sensitive missile-relevant transfers based on 

10 the MTCR Annex, and any amendments thereto. 

11 (5) lVl'l'CR ADHERENT.-The term "M'l'CR ad12 herent'' means a country that partieipates in the 

13 MTCR or that, pursuant to an international under14 standing to ~whieh the United States is a party, con15 trols ::VITCR, equipment or tedmology in a(·eoraanee 

16 with the eriteria and stamlards set forth in the 

17 MTCR 

18 (()) lVlTCR ANNEX.-The term "~\l'l'GR Annex" 

19 means the Guidelines and Equipment and Tech20 nology Annex of the MTCR and any amendments 

21 thereto. 

22 (7) MISSILE EQUIPMENT OR TECHNOLOGY; 

23 lVl'l'CR EQUPlVlEl'\'1' OB TECHNOLOGY.-The terms 

24 "missile equipment or teehnology" and "MTCR, 
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e(plipment or teehnology" mean those items listed in 

2 category I or category II of the MTCH Annex. 

3 SEC. 302. CHEMICAL AND BIOLOGICAL WEAPONS PR0-

4 LIFERATION SANCTIONS. 

5 (a) TMPOST'l'TO'l" OF S:\NCTTONS.-

6 (1) DE'l'ERMll'\ATl0.\1 BY THE PRESlDgN'l'.-Ex7 cept as provided in subsection (b)(2), the President 

8 shall impose the sandion lles(~ribed in suhsed.ion (e) 

9 if the President determines that a foreign person has 

l 0 knowingly and materially contrihuted11 (A) through the export from the Cnited 

12 States of any item that is subject to the juris13 dietion of the rnited States under this title: or 

14 (B) through the e:x1)ort from any other 

15 <"ountry of any item that would he, if they wtTe 

16 United States goods or technology, sul~jcet to 

17 the jurisdiction of the rnited States under this 

18 title, 

19 to the efforts by any foreign country, project, or en20 tity described in paragTaph (2) to use, develop, 

21 produce, stoekpile, or otherwise aequire chemieal or 

22 biological ·weapons. 

23 (2) COUNTRIES, PROJECTS, OR ENTITIES RE24 CEIV1KG ASSISTA .... "I\CE.-Paragraph (1) applies in the 

25 case of-
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(A) any foreign eountry that the President 

2 determines has, at any time after ,January 1, 

3 1980--

4 (i) used chemical or biolog·ical weap5 ons in violation of international law; 

6 (ii) used lethal chemical or biological 

7 weapons against its own nationals; or 

8 (iii) made substantial preparations to 

9 engage in the activities described in clause 

10 (i) or (ii); 

11 (B) any foreign country whose government 

12 1s determined for purposes of section 1 04( c) of 

13 this A<'t to he a government that has repeatedly 

14 provided support for acts of international ter15 ronsm; or 

16 (C) any other foreign country, prqjeet, or 

17 entity designated by the President for purposes 

18 of this section. 

19 ( 3) PERSOKS AGAIKST 1\riiCH SA1'\CTIO:fS ARE 

20 TO DE TMPOSED.--A sanction shall be imposed pur21 suant to paragraph (1) on--

22 (A) the foreign person with respect to 

23 \vhich the President makes the dctcrmiuatiou 

24 described in that paragraph; 
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RO 

(B) any S1le(~essor entity to that foreign 

2 person; and 

3 (C) any foreign person that is a parent, 

4 subsidiary, or affiliate of that foreign person if 

5 that parent, subsidiary, or affiliate knowingly 

6 assisted in the activities whieh were the basis of 

7 that determination. 

8 (h) CO:-J81TLTATIOK8 WITH Al~ ACTIO:-JS BY FOR9 EION GOVERNMENT OF JrRISDICTIO:-J.-

10 (1) COKSTTJ/r.\TT0'\8.-Tf the President makes 

11 the determiuations desc1·ibed iu subsection (a)(l) 

12 with respect to a foreign person, the Congress urges 

13 the President to initiate eommltations immediately 

14 \vith the government with primary jurisdiction over 

15 that foreigTl person with respeet to the imposition of 

16 a sanction pursuant to this section. 

17 (2) ACTIO:-JS BY GOv"ERNMEKT OF .TURISDIC18 'l'lON.-ln order to pursue such consultations with 

19 that government, the President may delay imposition 

20 of a sanction pursuant to this sPction for a period 

21 of up to 90 days. Follmving such eonsultations, the 

22 President shall impose the sanetion unless the Presi23 dent determines aud certifies to the appropriate con24 gressional committees that the Government has 

25 taken speeific and effective actions, inclucling appro-
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fll 

priate penalties, to terminate the involvement of the 

2 foreign person in the activities described in sub3 sed,ion (a)(l). The President may delay imposition 

4 of the sauetion for au additional period of up to 90 

5 days if the President determines and certifies to the 

6 Cougress that the ~wvennneut is in the process of 

7 taking the actions described in the preceding sen8 tenee. 

9 ( 3) REPORT TO COKGRESS.-The President 

l 0 shall report to the appropriate congressional commit11 tees, not later than 90 days after making a deter12 mination under subsection (a)(l ), on the status of 

13 eonsultations i\~th the appropriate government nnder 

14 this subsection, and the basis for any determination 

15 under paragraph (2) of this snhsedion that sneh 

16 government has taken specific corrective actious. 

17 (e) S~i~u~CTION.-

18 (1) DJ<::SClUP'l'lON OF S"'~'\IC'l'lON.-'l'he sanction 

19 to be imposed pursuant to subsection (a)(l) is, ex20 cept as provided that the United States Government 

21 shall not proeure, or enter into any eontraet for the 

22 procurement of, any goods or services from any per23 sou described in subsection (a)(3). 
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R2 

(2) ExcErTIONS.-The President shall not he 

2 required to apply or maintain a sanction under this 

3 sedion4 (A) m the ease of procurement of defense 

5 articles or defense seniees6 (i) under existing contracts or sub7 eontracts, inc.luding the exercise of options 

8 for prollnetion quantities to satisfy rnited 

9 States operational military requirements; 

l 0 (ii) if the Preside11t determines that 

11 the person or other entity to which the 

12 sanctions would othervvise be applied is a 

13 sole souree supplier of the defem-w artides 

14 or defense services, that the defense arti15 des or defense serviees are essential, and 

16 that alternative sources arc uot readily or 

17 reasonably available; or 

18 (iii) if the President determiues that 

19 such articles or services are essential to the 

20 national security under defense coproduc21 tion agreements; 

22 (B) to products or services prov-ided under 

23 contracts entered into before the date on which 

24 the President publishes his intention to imposP 

25 sanctions; 
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(C) to-

(i) spare parts; 

(ii) eornponent part~, but not fini~hed 

products, essential to United States products or production; or 

(iii) routine servieiug aud maintenance of products, to the extent that alternative ~onree~ are not readily or rea~onably available; 

(D) to information and technology essential to United States products or production; or 

(E) to medical or other humanitarian 

13 item~. 

14 (d) TERJ\II:-JATION OF SANCTIONS.-A sanction im15 po~ed pnr~uant to thi~ ~e(~tion ~hall apply for a period of 

16 at least 12 months following the imposition of one sanction 

17 and shall cease to apply thereafter only if the President 

18 determines and certifies to the appropriate congressional 

19 committees that reliable information indicates that the 

20 foreign person ~with respect to ~which the determination 

21 was made under subsection (a)(l) has ceased to aid or 

22 abet any foreign government, project, or entity in its ef23 forts to acquire chemical or biological weapous capability 

24 as described in that subsection. 

25 (e) WATVljjfl..-
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f\4 

(1) CRITERIOK FOR WAIV1iJR.-The President 

2 may waive the application of any sanction imposed 

3 on any pen.;on punmant to this sedion, after the end 

4 of the 12-mouth period beginning· em the date em 

5 which that sanction was imposed on that person, if 

6 the President determines and certifies to the appro7 priate congressional committees that such waiver is 

8 important to the national se(mrity interests of the 

9 United States. 

10 (2) NOTTFTCATTO~ OF AND REPORT TO CON11 GRESS.-lf the President decides to exercise the 

12 waiver authority provided m paragraph (1 ), the 

13 President shall so notify the appropriate (~ongres14 sional committees not less than 20 before the 

15 waiver takes t~ffeet. Sueh notifieation shall indude a 

16 report fully alticulating the ratiouale and cir17 cumstances which led the President to exercise the 

18 waiver authority. 

19 (f) DEFINITIONS.-In this section: 

20 (1) APPROPRJATE CXl~CmESSTONAT, COl\DHT21 TEES.-The term "appropriate eongressional com22 mittees" means23 the Committee on Foreigu Affairs of 

24 the House of Hepresentatives; and 
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85 

(B) the Committee on Foreign Relation~ 

2 and the Committee on Banking, Housing, and 

3 Urban Affair~ of the Senate. 

4 (2) DBI<'B:-.JSB rlli'l'lCLl~S; DBl•'ENSE SKRVlCBS.-

5 The terms "defense articles'' and "defense services" 

6 mean those items ou the U uited States Munitions 

7 List or are otherwise controlled under the ~\rms Ex8 port Control A(;t. 
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29812e-1.eps

AMENDMENT IN THE NATURE OF A SUBSTITUTE 

TO H.R. 5040 

OFFERED BY MR. ROYCE OF CALIFORNIA 

Strike all after the enacting clause and insert the 

follmving: 

1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

2 (a) SHORT 'l'lTLE.-'l'his Act may be cited as the 

3 "E2.1)ort Control Reform Act of 2018". 

4 (b) TAnH~ OF CONTENTS.-The table of contents of 

5 this Act is as follows: 

:C:ke. l. Short title: table: of ~ontc:nts. 

S0e. 2. Ddinitions. 

Sec. 

Sec. 

Sec. 

Sec. 

Sec. 

See. 

See. 

See. 

See. 

See. 

Sec. 

Sec. 

Sec. 

Sec. 

Sec. 

See. 

See. 

See. 

St>e. 

:C:ke. 

TITLE I-AUTHORITY AND .\Dl\III\ISTR..'i.TION OF CONTROLS 

101. 

102. 

10:3. 

104. 

105. 

106. 

107. 

1013. 

109. 

110. 

111. 

112. 

113. 

114. 

115. 

116. 

201. 

202. 

20;)_ 

204. 

Short title. 

Statement of policy. 

Authority of the President. 

Additional authorities. 

Administration of export controls. 

Control lists. 

Lieensing. 

Complianee assistanee. 

Re4uirernents to identifY and eontrol emerging eritieal tedmolog1es in 

export eontrol regulations. 

Penalties. 

Enforcement. 

Administrative procedure. 

Annual rer)ort to Congress. 

Repeal. 

Effect on other Ads. 

'Transition provisions. 

TITLE II-ANTI-BOYCOTT ACT OF 2018 

Short title. 

Statement of policy. 

Foreign hoy~otts. 

Enforer:nwnt. 
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2 

TITLB Ill-SANCTIONS REGAlWL'.JG MISSILE PROLIFBBA'l'IO!\ 

A!\D CHEMICAL AND BIOLOGICAL WBAPONS PROLU'EBA'l'ION 

:C:kc. ilOl. l\Iissik proliferation ~ontrol violations. 

:C:kc. il02. Chemical and biological w0a.pons prolif0ration sanctions. 

TITLE IV-AIHII!\ISTRATI\'E AUTIIOIUTIES 

Sec. 401. Under Secretary of Commerce for Industry and Security. 

1 SEC. 2. DEFINITIONS. 

2 In this Act: 

3 ( 1) CONTROLLED.-The term "controlled" 

4 means the export, reexport, or transfer of an item 

5 ~mliieet to the jurisdietion of the Unite!l States 

6 under title I. 

7 (2) DuATJ-rSR.-The term "dual-use", v.~th re8 spect to an item, means the item has civilian appli9 cations and military, terrorism, weapons of mass de10 strudion, or law-enfon~ement-related appli(~ations. 

11 (:3) EXPORT.-The term "e)q)ort", >vith respect 

12 to an item suhjeet to eontrols under title I, in13 eludes14 (A) the shipment or transmission of the 

15 item out of the United States, including the 

16 sending or taking of the item out of the rnited 

17 States, in any manner; and 

18 (B) the release or transfer of technology or 

19 source code relating to the item to a foreign 

20 person in the United States. 
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8 

( 4) EXPORT ADMINISTRATION REGTTh~TIO~S.-

2 The term "E2.1)ort Administration Regulations" 

3 means4 (A) the Export Administration Regulations 

5 as promulgated, maintained, and amended 

6 under the authority of the International Emcr7 gency Economic Powers Act and codified, as of 

8 the date of the ena(~trnent of this Ad, in sub9 chapter C of chapter ~VII of title 15, Code of 

10 Federal Reg11lations; or 

11 (B) regulations that arc promulgated, 

12 maintained, and amended under the authority 

13 of title I on or after the date of the emwtment 

14 of this Act. 

15 (5) FOREIGN PERSON.-The term "foreign per16 sou" means a pcrsou that is uot a United States 

17 person. 

18 (6) lTmvr.-Thc term "item" means a com19 modity, software, or technology. 

20 (7) PERSOK.-The term "person" means21 

22 

23 

24 

25 

(A) a natural person; 

(B) a corporation, business association, 

partnership, society, trust, finaucial institution, 

insurer, undenvriter, guarantor, and any other 

business organihation, any other nongovern-
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4 

mental entity, organization, or group, or any 

2 government or agency thereof; and 

3 (C) any SlW(~essor to any entity deseribed 

4 in subparagraph (B). 

5 ( 8) RRRXPOR.T .-The term "reexport", >vith re6 spect to an item suqject to controls under title l, in7 cluelesS (A) the shipment or transmission of the 

9 item from a foreign country to another foreign 

10 eountry, including the sending or taking of the 

11 item from the foreign country to the other for12 eign eountry, in any manner; and 

13 (B) the release or transfer of tedmology or 

14 source code relating to the item to a foreign 

15 person outside the United States. 

16 (9) SECRE'l'ARY.-Except as otherwise provided, 

17 the term "Secretary" means the Secretary of Com18 meree. 

19 (10) TECHKOLOGY.-The term "teehnology" 

20 ineludes foundational information and information 

21 and know-how necessary for the development (at all 

22 stages prior to serial production), production, use, 

23 operation, iustallation, maintenauce, repair, overhaul 

24 or refurbishing of an item. 
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5 

(11) TRAKSFER.-The term "transfer", with 

2 respect to an item subject to controls under title I, 

3 means a ehang-e in the eml-use or end user of the 

4 item within the same foreig·n country. 

5 (12) rNTTED STATES.-The term 'Tnited 

6 States" means the several States, the District of Co7 lumbia, the Commonwealth of Puerto Rico, the Com8 monwealth of the Northern Mariana Islamls, Amer9 ican Samoa, Guam, the United States Virgin Is-

] 0 lands, and any other territory or possession of the 

11 United States. 

12 (1 :3) UNITED STATES PERSON.-The term 

13 "United States person" rneans14 (A) for purposes of titles I and III15 (i) any individual who is a eitizen or 

16 national of the United States or who is au 

17 individual described in subparagraph (B) 

18 of section 274B(a)(3) of the lmmigratiou 

19 and Nationality Act (8 U.S.C. 

20 1324b(a)(3)); 

21 (ii) a corporation or other legal entity 

22 which is organized under the laws of the 

23 rnited States, any State or territory there24 of, or the District of Columbia; and 
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6 

(iii) any pen.;on in the United State~; 

2 and 

3 (B) for purpo~e~ of title II, any 1~nited 

4 States resident or national (other than au iudi5 vidual resident outside the rnited States and 

6 employed by other than a U uited States per7 son), any domestic concern (including any per8 rnanent dorne~tie establishment of any foreign 

9 concern) and any foreign subsidiary or affiliate 

10 (including any permanent foreign establish11 ment) of any domestic concern which is con12 trolled in fact by such domestic concern, as de13 termined under regulation~ by the Seeretary. 

14 (14) WEAPOKS OF ::.\1ABS DESTRUCTIOK.-The 

15 term "weapon~ of rna~~ de~tnwtion" mean~ nudear, 

16 radiological, chemical, and biological weapons aud 

17 delivery systems for such weapons. 

18 TITLE I-AUTHORITY AND 

19 ADMINISTRATION OF CONTROLS 

20 SEC. 101. SHORT TITLE. 

21 This title may be cited as the "E:x'})ort Controls Act 

22 of 2018". 

23 SEC. 102. STATEMENT OF POLICY. 

24 The follcnving is the policy of the rnited States: 
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7 

( 1) The national seeurity aml foreigTl poli(~y of 

2 the United States require that the export, reexport, 

3 and transfer of items, aml spe(~ifie aetivities of 

4 United States persons, wherever located, be con5 trolled for the follovving purposes: 

6 (A) To control the release of items for usc 

7 m8 (i) the proliferation of weapons of 

9 mass destruction or of conventional weap1 0 ons; 

11 (ii) the acquisition of destabilizing 

12 numbers or t:n)es of conventional weapons; 

13 (iii) aets of terrorism: 

14 (iv) military programs that could pose 

15 a threat to the seeurity of the 1~nited 

16 States or its allies; or 

17 (v) activities undertaken specifieally to 

18 eausc signifieant intcrfcrcnec with or dis19 ruption of eritieal infrastrueture. 

20 (D) To prese1"Ve the qualitative military su21 periority of the rnited States. 

22 (C) To strengthen the United States m23 dustrial base. 
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R 

(D) To (~arry out the foreign poliey of the 

2 United States, including the protection of 

3 human right~ and the promotion of <lemoeraey. 

4 (E) To carry out obligations aud commitS ments under international agreements and ar6 rangemeuts, includiug multilateral export con7 trol regimes. 

8 (F) To faeilitate military interoperability 

9 between the United States and its Korth Atlan1 0 tic Treaty Organi:1.ation (NATO) and other 

11 close allies. 

12 (G) To ensure national security eontrols 

13 are tailored to fo(~Us on tho~e eore teehnologie~ 

14 and other items that are capable of being used 

15 to po~e a ~erious national seeurity threat to the 

16 United States. 

17 (2) The national seeurity of the United States 

18 requires that the United States maintain its leader19 ship in the seienee, technology, engineering, and 

20 manufaeturing sectors, including foundational tech21 nology that is essential to innovation. Such leader22 ship requires that United States persons are com23 petitive iu global markets. The impact of the imple24 mentation of this title on such leadership and com25 petitiveness must he evaluated on an ongoing basis 
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29812e-9.eps

and applied in imposing (~ontrols under se(~tions 10:1 

2 and 104 to avoid negatively affecting such leader3 ship. 

4 (3) The national security and foreig·n policy of 

5 the United States require that the United States 

6 participate in multilateral organi:,mtions and agrcc7 ments regarding export controls on items that are 

8 eonsistent with the poli(~y of the U nitecl States, and 

9 take all the necessary steps to secure the adoption 

10 and consistent enforcement, by the governments of 

11 such countries, of export controls on items that arc 

12 consistent with such policy. 

13 ( 4) Export (~ontrols should he fully (~oordinated 

14 Yvith the multilateral e:x'})ort control regimes. E:x1Jort 

15 eontrols that are multilateral are most effed.ive, aml 

16 should he tailored to focus on those core technologies 

17 and other items that are capable of being used to 

18 pose a serious national security threat to the Cnitcd 

19 States and its allies. 

20 (5) E"X1Jort controls applied unilaterally to items 

21 Yvidely available from foreign sources generally are 

22 less effective in preventing end-users from acquiring 

23 those items. 

24 ( 6) The effective administration of e:xl)ort con25 trols requires a clear understanding both inside and 
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10 

outside the 1~nited States Government of whieh tedl2 nologies and other items are controlled and an effi3 eient proeess should be ereated to update the eon4 trois, such as by removing and adding technologies 

5 and other items. 

6 (7) The export control system must eusure that 

7 it is transparent, predictable, and timely, has the 

8 flexibility to he adapted to address new threats in 

9 the future, and allows seamless access to and sharI 0 ing of eA.'J)Ort control information among all relevant 

11 United States national security and foreign policy 

12 ageneies. 

13 (R) Implementation aml enfon~ement of 1~nited 

14 States eA.'J)Ort eontrols require robust capabilities in 

15 monitoring-, intelligenee, and investigation, appro16 priate penalties for violations, and the ability to 

17 swiftly interdict unapproved transfers. 

18 ( 9) Export controls should be balanced with 

19 United States eounterterrorism, information seeu20 rity, and eyber-seeurity policies to ensure the ability 

21 to eA.'J)Ort, ree:x'J)ort, and transfer technology and 

22 other items in support of eounterterrorism, critieal 

23 infrastrueture, and other homeland security prior24 ities, while effectively preventing malicious cyber ter25 rorists from obtaining items that threaten the 
97


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11 

Unite!l States and its interests, induding the prote(~-

2 tion of and safety of rnited States citizens abroad. 

3 ( 10) Export (~ontrols eomplement and are a 

4 critical element of the national security policies un5 derlying the laws and regulations governing foreign 

6 direct investment in the U uited States, including 

7 controlling the transfer of critical technologies to 

8 eertain foreign persons. Thus, the President, in dose 

9 coordination with the Department of Commerce, the 

10 Department of Defense, the Department of State, 

11 the Department of Energy, and other agencies re12 sponsible for export controls, should have a regular 

13 and robust pro(~ess to identify the emerging and 

14 other t,ypes of critical technologies of concern and 

15 reg1:tlate their release to foreigTl persons as war16 ranted regardless of the uature of the underlying 

17 transaction. Such identification efforts should draw 

18 upon the resources and expertise of all relevant 

19 parts of the United States Government, industry, 

20 and academia. These efforts should be in addition to 

21 traditional efforts to modernize and update the lists 

22 of controlled items under the multilateral e)q)ort con23 trol regimes. 
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12 

(11) The authority under this title may he exer2 cised only in furtherance of all of the objectives set 

3 forth in paragn1phs (1) through (10). 

4 SEC. 103. AUTHORITY OF THE PRESIDENT. 

5 (a) AUTTTORITY.-Tn order to carry out the policy set 

6 f01th in paragraphs (1) through (10) of section 102, the 

7 President shall controlS (1) the e},.1lort, ree},.1lort, and transfer of items 

9 subject to the jurisdiction of the United States, 

10 whether by United States persons or by foreig11 perIl sous; and 

12 (2) the acti,~ties of United States persons, 

13 wherever loeated, relating- to spe(~ifie14 (A) nuclear e},.lJlosive devices; 

15 (B) missiles; 

16 (C) chemical or biological weapous; 

17 (D) whole plants for chemical weapons pre18 cursors; 

19 (E) foreign maritime nuclear projects; and 

20 (F) foreign military intelligence sen~ces. 

21 (b) REQUIREME~TS.-In exercising authority under 

22 this title, the President shall impose controls to achieve 

23 the following oqjectives: 
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18 

( 1) To regulate the export, ree:A1lort, and trans2 fer of items described in subsection (a) ( 1) of r nited 

3 States persons or foreign persons. 

4 (2) To regulate the activities described in sub5 section (a)(2) of United States persons, wherever lo6 cated. 

7 (:3) To secure the cooperation of other governS ments and multilateral organizations to impose eon9 trol systems that are consistent, to the extent pos10 sible, with the controls imposed under subsection 

11 (a). 

12 ( 4) To maintain the leadership of the rnited 

13 States in S(~iem~e, engineering, teehnology researeh 

14 and development, manufacturing, and foundational 

15 tedmology that is essential to innovation. 

16 (5) To protect United States technological ad17 vances by prohibiting unauthorized technology transIS fers to foreign persons in the United States or out19 side the United States, particularly with respect to 

20 countries that may pose a significant threat to the 

21 national security of the United States. 

22 (6) To enhance the viability of commercial 

23 firms, academic institutions, and research establish24 ments, and maintain the skilled workforce of such 

25 firms, institutions, and establishments, that are nee-
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14 

ess~ny to preserving the lea!lership of the 1~nited 

2 States described in paragraph (4). 

3 (7) To strengthen the United States industrial 

4 base, both with respect to current and future de5 fense requirements. 

6 (8) To euforce the controls through means such 

7 as reg11lations, requirements for eompliance, lists of 

8 eontrolle!l items, lists of foreign persons who threat9 en the national seeurity or foreign policy of the 

10 United States, and g11idance m a form that facili11 tates eompliauee by United States persons and for12 eign persons, in partieular academic institutions, sci13 entifie and researeh establishments, and small- and 

14 medium-sized businesses. 

15 (e) APPLICATION OF CO~TROLS.-The President 

16 shall impose controls over the export, reexport, or transfer 

17 of items for purposes of the objectives described in sub18 sections (b)(l) or (b)(2) without regard to the uature of 

19 the underl_y'ing transaetion or any eircumstanees per20 taining to the acti,~ty, including whether such export, re21 e:x'J)ort, or transfer oceurs pursuant to a purehase order 

22 or other eontract requirement, voluntary deeision, inter23 company arraugement, marketing effort, or during a joiut 

24 venture, joint development agTeement, or similar collabo25 rative agTeement. 
101


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15 

1 SEC. 104. ADDITIONAL AUTHORITIES. 

2 (a) IN GE~ERAL.-In earry:mg out this title, the 

3 President shall4 (1) establish and maintain lists published by 

5 the Secretary of items that arc controlled under this 

6 title; 

7 ( 2) establish and maintain lists published by 

8 the Secretary of foreign persons and end-uses that 

9 are determined to be a threat to the national secu1 0 rity and foreign policy of the U nitcd States pursuant 

11 to the policy set forth in section 102 ( 1 )(A); 

12 (3) prohibit unauthori:1.ed e"Xl)Orts, reexports, 

13 and transfers of controlled items, including to for14 eign persons in the United States or outside the 

15 United States; 

16 ( 4) restrict exports, reeJq)orts, and transfers of 

17 any (~ontrolled items to any foreign person or end18 use listed under paragraph (2); 

19 (5) require licenses or other authori:1.ations, as 

20 appropriate, for exports, reexports, and transfers of 

21 controlled items, inc.luding imposing conditions or re22 stridions on United States persons and foreign per23 sons ~with respect to such licenses or other authoriza24 tions; 

25 ( 6) establish a process by which a license appli26 cant may request an assessment to determine wheth-
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16 

er a foreign item is (~omparahle in quality to an item 

2 controlled under this title, and is available in suffi3 eient quantities to render the United States e::qJOrt 

4 control of that item or the denial of a license ineffec5 tive, including a mechanism to address that dis6 parity; 

7 (7) require measures for compliance >vith the 

8 e::qJOrt eontrols established under this title; 

9 ( 8) require and obtain such information from 

10 United States persons and foreign persons as is nec11 cssary to carry out this title; 

12 (9) require, as appropriate, advance notice be13 fore an item is e:Allorted, ree:Allorted, or transferred, 

14 as an alternative to requiring a license; 

15 (10) require, to the extent feasible, identifiea16 tion of items subject to controls under this title in 

17 order to facilitate the enforcement of such controls; 

18 ( 11) inspect, search, detain, seize, or impose 

19 temporary denial orders with respect to items, in 

20 any form, that are subject to controls under this 

21 title, or conveyances on which it is believed that 

22 there are items that have been, are being, or are 

23 about to be exported, reexported, or transferred in 

24 violation of this title; 
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17 

(12) monitor shipments, or other means of 

2 transfer; 

3 ( 18) keep the puhli(~ fully apprised of dmnges 

4 m policy, regulations, and procedures established 

5 under this title; 

6 ( 14) appoiut technical advisory committees in 

7 accordance with the Federal Advisory Committee 

8 A(~t: 

9 ( 15) create, as warranted, exceptions to licens1 0 ing requirements in order to further the objectives of 

11 this title; 

12 (1 G) establish and maintain processes to inform 

13 persons, either individually hy spe(~ifie notiee or 

14 through amendment to any regulation or order 

15 issued under this title, that a li(~ense from the Bu16 reau of Industry aud Security of the Department of 

17 Commerce is required to eAlJOrt; and 

18 (17) undertake any other action as is necessary 

19 to carry out this title that is not otherwise prohib20 ited by 1 aw. 

21 (b) RELATIONSHIP TO IEEPA.-The authority under 

22 this title may not be used to regulate or prohibit under 

23 this title the export, reexport, or transfer of any item that 

24 may not be regulated or prohibited under section 203(b) 

25 of the International Emergency Economic Powers Act (50 
104


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18 

U.S.C. 1702(h) ), ex(~ept to the e},.'tent the President has 

2 made a determination necessary to impose controls under 

3 subparagntph (A), (B), or (C) of paragraph (2) of sueh 

4 section. 

5 (c) CouNTR.ms SrPPOR.TTN<l lKTER'\ATTONATJ TER.-

6 RORISlVL7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

(1) LICENSE REQUIREME~T.-

(A) IN cmNERAL.-A lieense shall he required for the export, reeA'})Ort, or transfer of 

items to a country if the Secretary of State has 

made the following determiuatious: 

(i) The government of such country 

has repeatedly providecl support for ads of 

international terrorism. 

(ii) The e},.1Jort, ree},.1Jort, or transfer 

of such items could make a significant contribution to the military potential of such 

country, iucluding its military logistics capability, or could enhance the ability of 

such country to support acts of international terrorism. 

(B) DETEK\IINATION l~~DER OTHER PROVISIONS 01<' LAW.-A determination of the Secretary of State under section 620A of the Foreign Assistance Act of 1961 (22 U.S.C. 2:371 ), 
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19 

~eetion 40 of the A_rrm; E::qJOrt Control Ad, (22 

2 U.S.C. 2780), or any other provision of law 

3 that the government of a (~ountry de~(~ribed in 

4 subparagraph (A) has repeatedly provided sup5 port for acts of international terrorism shall be 

6 deemed to be a detennination with respect to 

7 such government for puq)oses of clause (i) of 

8 ~ubparagn1.ph (A). 

9 (2) NOTIFICATION TO CONGRESS.-The Sec-

] 0 retary of State or the Secretary of Commerce shall 

11 noti~y the Committee on 11'oreigu "Affairs of the 

12 House of Representatives and the Committee on 

13 Banking, Hou~ing, and Urban Affairs and the Corn14 mittee on Foreign Relations of the Senate at least 

15 :10 days before i~~uing any lieen~e required by para16 graph (1). 

17 (:3) Pl~BLICATION IK FEDERAL REGISTER.-

18 Each determination of the Secretary of State under 

19 paragraph ( 1) (A) shall be published in the Federal 

20 Register, exeept that the Seeretary of State may ex21 elude eonfidential information and trade seerets eon22 tained in such determination. 

23 ( 4) RJ<;SCISSION Q}' DJ<;TJ<;RNllNA'l'lON .-A deter24 mination of the Secretary of State under paragraph 

25 (1 )(A) may not be rescinded unless the President 
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20 

submits to the Speaker of the House of Representa2 tives, the chairman of the Committee on Foreign Af3 fairs, and the ehairrnan of the Committee on Bank4 ing, Housing·, and C rban Affairs and the chairmau 

5 of the Committee on Foreign Relations of the Sen6 ate._ 

7 (A) before the proposed resciSSIOn would 

8 take effeet, a report eert.i(ying that9 (i) there has been a fundamental 

10 change in the leadership and policies of the 

11 government of the couutry concerned; 

12 (ii) that government is not supporting 

13 ads of international terrorism; and 

14 (iii) that government has provided as15 suram~es that it will not support ads of 

16 international terrorism in the future; or 

17 (B) at least 90 clays before the proposed 

18 rescission would take effect, a report justi(ying 

19 the rescission and certifying that20 (i) the government concerned has not 

21 provided any support for acts international 

22 terrorism during the preceding 24-month 

23 period; and 

24 (ii) the government concerned has 

25 provided assurances that it vvill not sup-
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21 

port ads of international terrorism in the 

2 future. 

3 (5) DISAPPROVAL OF RE8CI88ION.-No resms4 sion under paragraph ( 4)(B) of a determiuatiou 

5 under paragraph (1 )(A) \vith respect to the govern6 meut of a country may be made if Congress, withiu 

7 90 days after receipt of a report under paragraph 

8 (4)(B), enaets a joint resolution !leseribed in sub9 section (f)(2) of section 40 of the Arms EA.'})Ort Con-

] 0 trol Act \vith respect to a rescission under subsection 

11 (f)(l) of such sectiou with respect to the governmeut 

12 of such country. 

13 (6) NOTIFICATIOK AND BRIEFING.-Not later 

14 than15 (A) ten days after initiating a review of the 

16 activities of the government of the couutry con17 cerned >"V'ithin the 24-month period referred to 

18 in paragraph ( 4)(B )(i), the Secretary of State 

19 shall notifY the Committee on Foreign Affairs 

20 of the House of Representatives and the Com21 mittee on Foreign Relations of the Senate of 

22 such initiation; and 

23 (B) 20 days after the notification described 

24 m paragraph (1), the Secretary of State shall 
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22 

brief the eongTessional eommittees deserihe!l m 

2 paragTaph (1) on the status of such review. 

3 (7) CONTENTS OF ~OTIFICATION OF LI4 CENSK-'l'he Secretary of State shall include in the 

5 notification required by paragraph (2)-

6 (A) a detailed description of the items to 

7 be offered, inc.luding a brief description of the 

8 eapahilities of any item for whieh a li(~ense to 

9 eA.'})Ort, reexport, or transfer the items IS 

10 sought; 

11 (B) the reasous why the foreign country, 

12 person, or entity to which the e:q)ort, reex.l)Ort, 

13 or transfer is propose!l to he rna!le has re14 quested the items under the eA.'})Oit, reeA.'})Oit, or 

15 transfer, aml a deseription of the manner in 

16 which such country, person, or entity iuteuds to 

17 use such items; 

18 (C) the reasons why the proposed export, 

19 reexport, or transfer is in the national interest 

20 of the United States; 

21 (D) an analysis of the impact of the pro22 posed eA.'})Ort, reeA.l)Ort, or transfer on the mili23 tary capabilities of the foreign country, person, 

24 or entity to which such transfer would be made; 
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3 

4 

5 

6 

7 

28 

(E) an analy~i~ of the manner in whieh the 

proposed eJq)ort, reeAlJOrt, or transfer would affeet the relative military ~trengths of (~ountrie~ 

in the reg·ion to which the items that are the 

subject of such e"Xl)Ort, ree"Xl)Ort, or transfer 

would be delivered and whether other couutries 

in the region have comparable kinds and 

8 amount~ of item~: aml 

9 (F) an analysis of the impact of the pro-

] 0 posed e"Xl)Ort, reexport, or transfer on the rel all tions of the United States with the countries iu 

12 the region to which the items that are the sub13 je(~t of ~ueh eJqlOrt, ree:Jq!ort, or tran~fer would 

14 be delivered. 

15 (d) EKHANCED CONTROLS.-

16 (1) IN GJ£.:--.!J£RAL.-ln furtherance of sectiou 

17 103 (a) of this title, the President shall, except to the 

18 extent authori:,-;ed by a statute or regulation adminis19 tered by a Federal department or agency other than 

20 the Department of Commerce, require a rnited 

21 States person, wherever located, to apply for and re22 ce1ve a license from the Department of Commerce 

23 for24 (A) the eAlJOrt, reeAl)Ort, or transfer of 

25 items described in paragraph (2), including 
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item~ that are not ~ulije(~t to eontrol under thi~ 

2 title; and 

3 (B) other adivitie~ that may ~upport the 

4 design, development, production, use, operation, 

5 installation, maintenance, repair, overhaul, or 

6 refurbishing of, or for the performance of serv7 ices relating to, any such items. 

8 (2) lTE:\18 DESCRIBED.-The items de~(~rihecl in 

9 this paragraph include--

] 0 (A) nuclear ezq)losive de,~ces; 

11 (B) missiles; 

12 (C) chemical or biological weapons; 

13 (D) whole plants for d1ernieal weapons pre14 cursors; and 

15 (E) foreign maritime nu(~lear projeet~ that 

16 would pose a risk to the national security or 

17 foreign policy of the United States. 

18 (e) .ADDITlO.:--.rAL PlWHIBITlONS.-'l'he Secretary may 

19 inform United States persons, either individually by spe20 cific notice or through amendment to any reg11lation or 

21 order issued under this title, that a license from the Bu22 reau of Industry and Security of the Department of Com23 merce is required to engage in any activity if the activity 

24 involves the t:n)es of movement, service, or support de25 scribed in subsection (d). The absence of any such notifi-
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25 

eation !loes not exeuse the United States person from (~orn2 plianc.e with the license requirements of subsec.tion (d), or 

3 any regulation or order issued under this title. 

4 (f) LICENSE REVIEW STANDARDS.-'l'he Sec.retary 

5 shall deny an applic.ation to engage in any activity de6 sc.ribed in subsec.tion (d) if the ac.tivity would make a ma7 terial contribution to any of the items desc.ribed in sub8 sedion (!1)(2). 

9 SEC. 105. ADMINISTRATION OF EXPORT CONTROLS. 

10 (a) TN GRNRR.AL.-The President shall delegate to 

11 the Sec.retary of Commerc.e, the Sec.retary of Defense, the 

12 Secretary of State, the Secretary of Energy, and, as ap13 propriate, the Diredor of National Intelligenee and the 

14 heads of other appropriate Federal departments and agen15 eies, the authority to earry out the purposes set forth in 

16 subsectiou (b). 

17 (b) Pl~RPOSES.-

18 (1) ll'\ GENERAL.-'l'he purpose of the delega19 tions of authority pursuant to subsec.tion (a) are---

20 (A) to achise the President vvith respect 

21 to22 (i) identif;ving specific threats to the 

23 national security and foreign polic.y that 

24 the authority of this title may be used to 

25 address; and 
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8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

(ii) exereising the authority umler this 

title to implement polieies, regulations, 

proee!lures, and a(~tions that are ne(~essary 

to effec.tively eounterac.t those threats; 

(D) to review and approve-

(i) eriteria for ineluding items on, and 

removing sueh an item from, a list of eontrolled items established under this title; 

(ii) an interageney procedure for emupiling and amending any list described in 

c.lause (i); 

(iii) criteria for in eluding a person on 

a list of persons to whom e},.1lorts, reexports, and transfers of items are prohibited 

or restrieted under this title; 

(iv) stamlards for eomplianee by persons subject to controls under this title; 

and 

(v) policies and proeedures for the 

end-use monitoring of exports, reexports, 

and transfers of items controlled under 

this title; 

(C) to obtain independent evaluations, ineluding from Inspeetors General of the relevant 

departments or ageneies, on a periodic basis on 
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3 

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6 

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8 

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12 

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14 

15 

16 

17 

18 

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21 

22 

23 

24 

25 

27 

the effeetiveness of the implementation of this 

title in carrying out the policy set forth in section 102; and 

(D) to beuefit from the inhereut equities, 

experience, and capabilities of the Federal officials described in subsection (a), includiug-

(i) the views of the Department of Defense >vith resped, to the national seeurity 

implications of a particular control or decision; 

(ii) the v1ews of the Department of 

State with respect to the foreig·n policy implieations of a partieular eontrol or de(~ision; 

(iii) the v1ews of the Department of 

Energ:y with respect to the implications for 

nuclear proliferation of a particular control 

or decisiou; and 

(iv) the views of the Department of 

Commerce v.~th respect to the administration of an efficient, coherent, reliable, enforceable, and predictable export control 

system, and the resolution of competing 

views or policy objectives described in section 102. 
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28 

(2) AUTHORITY TO SEEK IKFORMATIOK.-The 

2 Federal officials described in subsection (a) may, in 

3 earrying out the purposes set forth in paragn1ph (1), 

4 seek information aud advice from experts who are 

5 not officers or employees of the Federal Govern6 mcut. 

7 (:3) TRANS:\IITTAL AND IMPLE:\IENTATIOK OF 

8 EVALrATIO~S.-The results of the indepemlent eval9 nations conducted pursuant to paragraph (1)(D) 

10 shall be transmitted to the President and the Con11 grcss, in classified form if necessary. Subject to the 

12 delegation of authority by the President, the Federal 

13 offieials deseribed in suhsedion (a) shall determine, 

14 direct, and ensure that improvements recommended 

15 in the evaluations are implemented. 

16 (c) 8J£NSE 01'' COKGRJ£SS.-lt is the sense of Con17 gress that the administration of export controls under this 

18 title should be consistcut with the procedures relating to 

19 e:x1)ort license applications described in Executive Order 

20 12981 (1995). 

21 SEC. 106. CONTROL LISTS. 

22 The President shall, pursuant to the delegation of au23 thority in section 105, cusurc that24 ( 1) a process is established for regular inter25 agency 1'8'\~ew of each list established under section 
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29812e-29.eps

29 

104(a)(l), that pursuant to SU(~h review the Se(~-

2 retary regularly updates such lists to ensure that 

3 new items (in(~luding emerging (~ritieal tedmologies) 

4 are appropriately controlled, and that the level of 

5 control of items on the lists are adjusted as condi6 tions change; 

7 (2) information and e)q)ertise are obtained from 

8 offieers and employees from relevant Federal depart9 ments, agencies, and offices and persons outside the 

10 Federal Government who have technical eJq)ertise, 

11 with respect to the characteristics of the items con12 sidered for each list established under section 

13 104(a)(l) and the effed of (~ontrolling the items on 

14 addressing the policy set forth in section 102; 

15 (8) each list established under se(~tion 104(a)(l) 

16 appropriately identifies each entry that has been in17 eluded by virtue of the participation of the rnited 

18 States m a multilateral regime, organization, or 

19 group the purpose of which is consistent with and 

20 supports the policy of the United States under this 

21 title relating to the control of exports, reexports, and 

22 transfers of items; and 

23 ( 4) each list established under section 104(a)(l) 

24 IS published by the Secretary in a form that facili25 tates compliance vvith it and related requirements, 
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80 

partieularly by small- and medium-sized businesses, 

2 and academic institutions. 

3 SEC. 107. LICENSING. 

4 (a) lN GENJ<JRAL.-'l'he President shall, pursuant to 

5 the delegation of authority in section 1 05, establish a pro6 cedure for the Department of Commerce to license or oth7 erwise authorize the eJq)ort, ree:Jq)(n·t, and transfer of 

8 items (~ontrolled under this title in order to eany out the 

9 policy set forth in section 102 and the requirements set 

10 forth in section 1 03(b). The procedure shall ensure that11 (1) license applications, other requests for au12 thorization, and related dispute resolution proce13 dures are (~onsiderecl and cle(~isions made \vith the 

14 participation of appropriate departments, agencies, 

15 and offiees that have delegated fun(~tions under this 

16 title; and 

17 (2) licensing decisions are made in an e:Jq)edi18 tious manner, with transparency to applicants on the 

19 status of license and other authorization processing 

20 and the reason for den_)~ng any license or request for 

21 authorization. 

22 (b) SE~SE OF CONGRESS.-It is the sense of Con23 gress that the President should make best efforts to en24 sure that an accurate, consistent, and timely evaluation 

25 and processing of licenses or other requests for authori:1.a-
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tion to export, reexport, or transfer items eontrolled umler 

2 this title is accomplished vvithin 30 clays from the elate 

3 of s1wh li(~ense re(plest. 

4 (c) ]1'1£1£S.-!\o fee may be charged in couuection with 

5 the submission, proeessing, or consideration of any appli6 cation for a license or other authori:,mtiou or other request 

7 made in connection with any regulation in effect under 

8 the authority of this title. 

9 SEC. 108. COMPLIANCE ASSISTANCE. 

10 (a) SYSTRM FOR SRRl\.IKC+ ASSTSTANCK-The Presi11 dent may authori~c the Secretary to establish a system 

12 to provide United States persons vvith assistanee in eom13 plying with this title, whieh may indude a rnedmnisrn for 

14 providing information, in elassified form as appropriate, 

15 who are potential eustomers, suppliers, or business part16 ucrs with respect to items controlled under this title, in 

17 order to further ensure the prevention of the eAlJOrt, reex18 port, or transfer of items that may pose a threat to the 

19 national seeurity or foreign policy of the United States. 

20 (b) SRCUIUTY CTJRARANCRS.-Tn order to carry out 

21 subsection (a), the President may issue appropriate seeu22 rity elearances to persons described in that subsection who 

23 arc responsible for eomplyiug with this title. 

24 (e) ASSISTA_.'JCE FOR CERTAIN BUSINESSES.-
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(1) lK cmNERAL.-Not later than 120 day~ 

2 after the elate of the enactment of this Act, the 

3 Pre~ident ~hall develop and ~ubrnit to Congre~s a 

4 plan to assist small- aud medium-sized Cnited 

5 States in e"Xl)Ort licensing and other processes under 

6 this title. 

7 (2) CO~TEKTS.-The plan shall include, among 

8 other thing~, arrangement~ for the Department of 

9 Commerce to provide counseling to businesses del 0 scribed in paragraph (1) on filing applications and 

11 ideuti~ying items controlled under this title, as well 

12 as proposals for seminars and conferences to educate 

13 ~ueh hu~ines~e~ on exr)()rt eontrob, lieen~ing pro(~e14 dures, and related obligations. 

15 SEC. 109. REQUIREMENTS TO IDENTIFY AND CONTROL 

16 EMERGING CRITICAL TECHNOLOGIES IN EX· 

17 PORT CONTROL REGULATIONS. 

18 (a) lN GENERAL.-The President shall, pursuaut to 

19 the delegation of authority in section 105, establish and, 

20 in coordination v.~th the Department of Commerce, the 

21 Department of Defense, the Department of State, the De22 partment of Energy, and other departments determined 

23 to be uecessary, lead a regular, ougoing iuteragency proc24 ess to identify the follmving: 
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88 

(1) Emerging eritieal tedmologies that are not 

2 identified in any list of items controlled for export 

3 under United States law or regulations, but that 

4 nonetheless could be essential for maintaining or in5 creasing the technological advantage of the rnited 

6 States over couutries that pose a significant threat 

7 to the national security of the United States with re8 sped, to national defense, intelligenee, or other areas 

9 of national security, or gaining such an advantage 

10 over such countries in areas where such an advan11 tage may not curreutly exist. 

12 (2) Any other technologies that are not identi13 fied in any list of items eontrolled for e},.1lort under 

14 United States law or regulations, but that15 (A) have been identified, publidy or other16 wise, by countries posing such significaut threat 

17 as necessary to acquire from the United States 

18 to advance their natioual defense, intelligence, 

19 or other areas of national security; and 

20 (D) would, if so acquired, be to the det21 riment of the national security of the United 

22 States. 

23 (b) REQUIRENill.:--.fTS.-The iuteragency process re24 quired under subsection (a) shall-
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84 

(1) draw upon the expertise, resoun~es, and eq2 uities of all relevant rnited States Government 

3 agenmes, industries, and aeadernie institutions to 

4 ideutify aud describe such emerging critical tech5 nologies; 

6 (2) require the relevant export coutrol authority 

7 to publish proposed regulations for public comment 

8 that would eontrol heretofore unlisted emerging erit9 ical technologies identified pursuant to subsection 

10 (a) and control the release of each such technology 

11 to dcstiuations, end uses, or end users as determined 

12 by the President; 

13 ( 8) require the Se(~retmy of Cornmen~e, the Se(~-

14 retmy of State, and the Secretary of Defense to pro15 pose to the relevant multilateral e:A1Jort eontrol re16 gimes in the followiug year that such emerging crit17 ical technologies be added to the list of technologies 

18 controlled by such regimes; 

19 ( 4) determine whether national security con20 cerns warrant continued unilateral export controls 

21 over technologies identified pursuant to subsection 

22 (a) if the relevant multilateral e:Al)Ort control regime 

23 docs not agree to list such technologies on its control 

24 list within three years; and 
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85 

( 5) reqmre the ageneies responsible for adrnin2 istering the e)q)ort controls identified in subsection 

3 (a) to remove or revise, as appropriate, existing eon4 trois determined to warrant removal or revision as a 

5 result of insight or information obtained during ef6 forts uudertaken to comply with the requiremeuts of 

7 this section. 

8 SEC. 110. PENALTIES. 

9 (a) U~LA\CV'FUL ACTS.-

10 (1) lt\ <JENRRAh-Tt shall he unlawful for a 

11 person to violate, attempt to violate, conspire to vio12 late, or cause a ·violation of this title or of any regu13 lation, order, lieense, or other authorization issued 

14 under tlris title, including any of the unlmvful acts 

15 des(~ribed in paragraph (2). 

16 (2) SPECU'lC UNLAWI<'UL AC'l'S.-'l'he unlawful 

17 acts described in this paragraph are the following: 

18 (A) No person may engage in any conduct 

19 prohibited by or contrary to, or refrain from en20 gaging in any conduct required by this title, the 

21 

22 

23 

24 

25 

E:x'J)ort Administration Regulations, or any 

order, license or authorization issued thereunder. 

(B) :\fo person may cause or aiel, abet, 

counsel, command, induce, procure, permit, or 
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8 

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17 

18 

19 

20 

21 

22 

23 

24 

25 

86 

approve the !loing of any aet prohihite!l, or the 

omission of any act required by this title, the 

Export Administration Regulations, or any 

order, license or authori~ation issued thereunder. 

(C) 1\o person may solicit or attempt a violation of this Act, the Export Administration 

Regulations, or any order, li(~ense or authorization issued thereunder. 

(D) No person may conspire or act in concert with one or more other persons in any 

manner or for any purpose to bring about or to 

do any e:wt that (~onstitutes a violation of this 

title, the Export Administration Regulations, or 

any order, lieense or authorization issue!l thereunder. 

(E) No person may order, buy, remove, 

conceal, store, usc, sell, loan, dispose of, transfer, transpmt, finanee, forward, or othenvise 

service, in whole or in part, or comluet negotiations to facilitate sueh activities for, any item 

e)q)Orted Or to be eJq)Orted from the rnited 

States, or that is otherwise suQjcct to the Export Administration Reg11lations, vvith knowledge that a violation of this title, the E"Xl)Ort 
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12 

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87 

Administration Regulations, or any order, license or authorization issued thereunder, has 

<H~<mrred, is about to o<~<mr, or is intemled to 

occur in connection with the item unless valid 

authori:1.ation is obtained therefor. 

(11') No person may make auy false or nusleading representation, statement, or certifieation, or falsify or <~<meeal any material fad, 

either directly to the Department of Commerce, 

or an official of any other United States agency, or iudircetly through any other pcrson-

(i) in the course of an investigation or 

other aetion sul~je<~t to the E~q)()rt Administration Regulations; 

(ii) in eonneetion vvith the preparatiou, subnlission, issuance, usc, or maintenance of any export control document or 

any report filed or required to be filed pursuant to the E:x'J)ort Administration Regulations; or 

(iii) for the puqJose of or in connection with effecting any e:xl)ort, reexport, or 

transfer of an item subject to the Export 

Administration Regulations or a ser·vice or 
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4 

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8 

9 

10 

11 

12 

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14 

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17 

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other e:wtivity of a Unite!l States person described in section 104. 

(G) No person may engage m any transaction or take any other action with intent to 

evade the provisions of this title, the E"Xl)Ort 

Administration Regulations, or any order, license, or authorization issued thereunder. 

(H) Ko person may fail or refuse to (~omply with any reporting or recordkeeping requirements of the E"Xl)Ort Administration Regulations or of any order, license, or authorization 

issued thereunder. 

(I) Ex(~ept as spe(~ifi(~ally authorize!l in the 

E:x'J)ort Administration Regulations or in writing by the Department of Commeree, no person 

may alter any license, authorization, export control document, or order issued under the EJqxn·t 

Administration Regulations. 

(J) No person may take any action that is 

prohibited by a denial order issued by the Department of Commerce to prevent imminent 

violations of this title, the E"Xl)Ort Administration Regulations, or any order, license or authorization issued thereunder. 
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(8) ADDITIO~AL REQUIRE:\1ENTS.-For pur2 poses of subparagraph (G), any representation, 

3 statement, or eertifi(~ation made by any person shall 

4 be deemed to be coutiuuing iu effect. Each persou 

5 who has made a representation, statement, or certifi6 catiou to the Departmeut of Commerce relating to 

7 any order, license, or other authorization issued 

8 under this title shall notify the Department of Corn9 merce, in vvriting, of any change of any material fact 

10 or intention from that previously represented, stated, 

11 or certified, immediately upon receipt of auy iufor12 mation that would lead a reasonably prudent person 

13 to know that a dmnge of material fe:wt or intention 

14 had occuned or may occur in the future. 

15 (h) CRIMINAL PENALTY.-A person who vvillfnlly 

16 commits, willfully attempts to commit, or willfully con17 spires to commit, or aids and abets in the commission of, 

18 an uulawful act described iu subsection (a)-

19 ( 1) shall be fined not more than $1,000,000; 

20 and 

21 (2) in the case of the individual, shall be lm22 prisoned for not more than 20 years, or both. 

23 (c) CIVIL PENAL'l'lES.-

24 (1) Al~THORITY.-The President may impose 

25 the follo"~ng civ~l penalties on a person for each v-io-
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40 

lation by that person of this title or any regulation, 

2 order, or license issued under this title, for each vio3 lation: 

4 (A) A fine of not more than $300,000 or 

5 an amount that is tvviee the value of the trans6 action that is the basis of the violation with re7 spect to which the penalty is imposed, which8 ever is gTeater. 

9 (B) Revocation of a license issued under 

10 this title to the person. 

11 (C) A prohibition on the person's ability to 

12 e:qxwt, reex.l)Ort, or transfer any items, whether 

13 or not subjeet to eontrols under this title. 

14 (2) PROCEDURES.-A.ny civil penalty under tlris 

15 subseetion may be imposed only after notiee aml op16 portunity for an agency hearing on the record in ac17 cordance with sections 554 through 557 of title 5, 

18 United States Code. 

19 (3) 8T~~'JDARDS FOR LE.VELS OF CIVIL PEN20 AT/rY.-The Seeretary may by reg1.1lation provide 

21 standards for establishing levels of civil penalty 

22 under this subsection based upon factors such as the 

23 seriousness of the violation, the culpability of the vi24 olator, and such nritigating factors as the violator's 
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41 

re(~ord of eooperation with the Government m (lis2 closing the violation. 

3 (d) CRIMINAL FORFEITURE OF PROPERTY I~TEREST 

4 A_\fD PROCBEDS.-

5 (1) Fcm.FET'TTTI.R.-Any person who is convicted 

6 under subsectiou (b) of a violatiou of a control im7 posed under section 10:3 (or any regulation, order, 

8 or li(~ense issued with respeet to s1wh eontrol) shall, 

9 in addition to any other penalty, forfeit to the 

10 United States11 (A) any of that person's iuterest iu, secu12 rity of, claim against, or property or contractual 

13 rights of any kind in the tangible items that 

14 were the subject of the ~violation; 

15 (B) any of that person's interest m, se(m16 rity of, claim against, or property or contractual 

17 rights of any kind in tangible property that was 

18 used iu the violatiou; and 

19 (C) any of that person's property consti20 tuting, or derived from, any proceeds obtained 

21 directly or indirectly as a result of the ~violation. 

22 (2) PROCEDURES.-The procedures in any for23 feiture uuder this subsection, and the duties and au24 thority of the courts of the United States and the 

25 Attorney General v.~th respect to any forfeiture ac-
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tion under thi~ suh~edion or ~with re~pe(~t to any 

2 property that may be subject to forfeiture under this 

3 ~ubseetion, ~hall be governed by the provi~ion~ of 

4 section 1963 of title 18, United States Code. 

5 (e) Pmcm Co~vTCTTOKS.-

6 (1) LICENSE BAR.-

7 (A) I~ GEKERAL.-The Secretary may8 (i) deny the eligibility of any per~on 

9 convicted of a criminal violation described 

1 0 in subparagraph (D) to e"Xl)Ort, ree"X-port, or 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

transfer outside the United States any 

item, whether or not subjeet to controls 

under thi~ title, for a periocl of up to 10 

years beginning on the date of the convietion; and 

(ii) revoke any license or other authorization to export, reexport, or transfer 

items that was issued under this title and 

in which sueh person has an interest at the 

time of the eonvietion. 

(B) VIOh~TIONS.-The violations referred 

to in subparagraph (A) are any eriminal violations of, or criminal attempt or conspiracy to 

violate-
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48 

(i) this title (or any regulation, li2 cense, or order issued under this title); 

3 (ii) any reg1:Uation, lieense, or order 

4 issued under the International Emergency 

5 Economie Powers Act; 

6 (iii) section 371, 554, 793, 794, or 

7 798 of title 18, United States Code; 

8 (iv) seetion 1001 of title 18, 1~nited 

9 States Code; 

10 (v) seetion 4(b) of the Internal Secu11 rity Act of 1950 (50 U.S.C. 783(b)); or 

12 (vi) section 38 of the Arms Ex.l)Ort 

13 Control A(~t (22 U.S.C. 2778). 

14 (2) APPLICATION TO OTHER PARTIES.-The 

15 Se(~retary may exereise the authority under para16 graph (1) with respect to any person related, 

17 through affiliation, ovvnership, control, position of 

18 responsibility, or other cormection in the conduct of 

19 trade or business, to any person convicted of any 

20 'Violation of law set forth in paragTaph (1 ), upon a 

21 shmving of such relationship with the convicted 

22 party, and subject to the procedures set forth in 

23 subsection (c)(2). 

24 (f) OTHER Al~THORITIES.-Nothing m subsection 

25 (c), (d), or (e) limits-
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44 

( 1) the availability of other administrative or 

2 judicial remedies \vith respect to ~violations of th:is 

3 title, or any regulation, order, lieense or other au4 thorization issued under this title; 

5 (2) the authority to eompromise and settle ad6 ministrative proceedings brought with respect to vio7 lations of this title, or any regulation, order, license, 

8 or other authorization issued umler this title: or 

9 ( 3) the authority to compromise, remit or miti1 0 gate seihures and forfeitures pursuant to section 

11 1(b) of title VI of the Act of June 15, 1917 (22 

12 U.S.C. 401 (b)). 

13 SEC. 111. ENFORCEMENT. 

14 (a) AUTHORITIES.-In order to enforce this title, the 

15 President shall delegate to the heads of other appropriate 

16 l<'ederal departments and agencies the authority to17 ( 1) issue regulations, orders, and guidelines: 

18 (2) require, inspect, and obtain books, records, 

19 and any other information from any person subject 

20 to the provisions of this title; 

21 ( 3) administer oaths or affirmations and by 

22 subpoena require any person to appear and testify or 

23 to appear and produce books, records, and other 

24 >vritings, or both: 
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45 

( 4) eonduet inve~tigation~ (induding under2 cover) in the United States and in other countries 

3 u~ing all appli(~able laws of the 1~nited States, in4 cludiug intercepting any wire, oral, aud electronic 

5 communications, conducting electronic surveil] ance, 

6 usiug pen registers and trap and trace devices, aud 

7 carrying out acquisitions, to the e:xient authorized 

8 under chapter~ 119, 121, and 206 of title 1R, 

9 United States Code; 

10 (5) inspect, search, detain, sei~e, or 1ssue tem11 porary deuial orders with respect to items, iu any 

12 form, that are subject to controls under this title, or 

13 conveyance~ on whi(~h it i~ helievecl that there are 

14 items that have been, are being, or are about to be 

15 e:x1Jorted, ree:x1Jorted, or tran~ferred in violation of 

16 this title, or any regulatious, order, license, or other 

17 authorization issued thereunder; 

18 ( 6) carry firearms; 

19 ( 7) conduct prelicense inspeetions and post20 shipment verifications; and 

21 ( 8) exeeute warrants and make arrests. 

22 (b) ENFORCEMEKT OF SUBPOENAS.-In the case of 

23 eoutumaey by, or refusal to obey a subpoena issued to, 

24 any person under subsection (a) ( :3), a district court of the 

25 United States, after notice to such person and a hearing, 
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46 

shall have juris!li(~tion to issue an onler reqmrmg sueh 

2 person to appear and give testimony or to appear and 

3 produ(~e books, reeords, and other ~writings, regardless of 

4 fonnat, that are the subject of the subpoena. Any failure 

5 to obey such order of the court may be punished by such 

6 court as a contempt thereof. 

7 (c) BEST PRADTICE GUIDELI~ES.-

8 (1) lK C+ENERAL.-The Seeretary, m eonsulta9 tion ~with the heads of other appropriate Federal 

10 ageneies, should publish and update "best practices" 

11 guidelines to assist persons iu developing and implc12 menting, on a voluntary basis, effeetive ex.lJort eon13 trol prognuns in eornplianee >vith the regulations 

14 issued under this title. 

15 (2) EXPORT COMPLL'lli'CE PROCtRAM.-The irn16 plementation by a person of an effective export com17 pliance program and a high quality overall eJq)ort 

18 compliance effort by a person should ordiuarily be 

19 given weight as mitigating faetors in a eivil penalty 

20 action against the person under this title. 

21 (d) REFEREKCE TO ENFORCEJYIENT.-For purposes 

22 of this section, a reference to the enforeement of, or a vio23 lation of, this title ineludes a referenee to the enforcement 

24 or a violation of any regulation, order, license or other au25 thori:;mtion issued pursuant to this title. 
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47 

(e) IMlVIT~XITY.-A pen.;on ~hall not be ex(m~ea from 

2 complying with any requirements under this section be3 eau~e of the person'~ privileg-e ag-ain~t self-inerimination, 

4 but the immunity provisions of section 6002 of title 18, 

5 United States Code, shall apply vvith respect to any indi6 vidual who specifically claims such privilege. 

7 (f) CONFIDENTIALITY OF I~FORlVL~TIO~.-

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

(1) EXEMPTIOKS FR0:\1 DISCLOSURE.-

(A) IN GENERAL.-Information obtained 

under this title may be \vithheld from disclosure 

only to the extent permitted by statute, except 

that information described in subparagraph (B) 

~hall be withheld from publie di~do~ure and 

shall not be subject to disclosure under section 

552(b)(8) of title 5, 1~nited State~ Code, unle~~ 

the release of such information is determined by 

the Secretary to be in the national interest. 

(B) lNI<'OJ:UVIA'l'lON DJ<;SClUBJ<;D.-lnformation described in this subparagraph is information submitted or obtained in connection v.~th 

an application for a license or other authorization to eJq)ort, reeAlJOrt, or transfer items, engage m other activities, a recordkeeping or reporting requirement, enforcement activity, or 

other operations under this title, including-
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3 

4 

5 

6 

7 

8 

9 

48 

(i) the li(~ense appli(~ation, lieense, or 

other authorization itself; 

(ii) dassifieation or advisory opnuon 

requests, and the response thereto; 

(iii) lirense determinations, and information pertaining thereto; 

(iv) information or eviclenre obtained 

in the eourse of any investigation; and 

(v) information obtained or furnished 

m connertion vvith any international agreement, treaty, or other obligation. 

10 

11 

12 (2) T~F'ORJVrATTON TO THE CONGRESS AND 

13 GA0.-

14 (A) I:r\ GENERAL.-Kothing in this sertion 

15 shall be (~onstrued as authorizing the with16 holding of information from the Congress or 

17 from the Government Arrountability Offire. 

18 (B) AVAILABILITY TO THE CONGRESS.-

19 (i) IN GEKERAL.-Any information 

20 obtained at any time under any prov~sion 

21 of the Export Administration Art of 1979 

22 (as in effect on the clay before the elate of 

23 the enaetmeut of this Art and as coutinued 

24 in effert pursuant to the International 

25 Emergenry Eronomir Powers Art), under 
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23 

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25 

49 

the Export Administration Regulations, or 

under this title, including any report or li-

(~ense appli(~ation re(1nired under any sueh 

provision, shall be made available to a 

committee or subcommittee of Congress of 

appropriate jurisdiction, upou the request 

of the chairman or ranking minority member of sueh eommittee or snlwommittee. 

(ii) PROHIBITIO~ ON FURTHER DISCli)SUI\E.-No such committee or subcommittee, or member thereof, may disclose any information made available under 

dause (i), that is submitted on a (~onfidential basis unless the full committee determines that the >vithhol<ling of that information is contrary to the uational iuterest. 

(C) AVAILABILITY TO GAO.-

(i) lN GE~ERAL.-lnformatiou described in clause ( i) of subparagraph (B) 

shall be sul:dect to the limitations contained in section 716 of title :31, rnited 

States Code. 

(ii) PROHlBl'l'lO~ ON !<'UR'l'HER DlSCLOSURE.-An officer or employee of the 

Government Accountability Office may not 
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24 

50 

disdose, exeept to the CongTess in aeeordance with this paragraph, any such information that is submitted on a (~onfidential 

basis or from which any individual can be 

identified. 

(3) lN1''0RlVL~l'lON SHARl~G.-

(A) IN GENERAL.-Any Federal official deseribed in seetion 105(a) who obtains information that is relevant to the enforcement of this 

title, including information pertaining to any investigation, shall furnish such information to 

each appropriate department, agency, or office 

with enfon~ernent responsibilities umler this se(~­

tion to the extent consistent \vith the protection 

of intelligen(~e, (~mmterintelligenee, and law enforcement sources, methods, and activities. 

(B) EXCEPTIONS.-The provisions of this 

paragraph shall not apply to information subject to the restrictions set forth in section 9 of 

title 13, rnited States Code, and return information, as defined in subsection (b) of section 

610:3 of the Internal R.evenue Code of 1986 (26 

U.S.C. 6103(b)), may be disclosed only as authorized by that section. 
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(C) EXCHANC+E OF IKFORMATIOK.-The 

President shall ensure that the heads of department~, agem~ie~, aml offiee~ with enforeement 

authorities under this title, consistent with protection of law enforcement and its sources and 

mcthods-

(i) exchange any licensing and enforeement information \vith one another 

that is necessary to facilitate enforcement 

efforts under this section; and 

(ii) consult on a regular basis with 

one another and \vith the head of other department~, ageneie~, aml offiee~ that obtain information subject to this paragraph, 

in order to fa(~ilitate the exehange of sueh 

information. 

(D) lNFORMATIOK SHARING WITH FEDERAL AGENCIES.-Liccnsing or enforcement information obtained under this title may be 

shared v.~th heads of departments, agencies, 

and offices that do not have enforcement authorities under this title on a case-by-case basis 

at the discretion of the President. Such information may be shared only when the President 
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29812e-52.eps

makes a determination that the sharing of this 

2 information is in the national interest. 

3 (g) REPORTINC+ REQUIREMEKTS.-In the adrninistra4 tion of this section, reporting· requirements shall be de5 signed to reduce the eost of reporting, recordkeeping, and 

6 documentatiou to the exteut consistent with effective en7 forcement and compilation of useful trade statistics. R,e8 porting, re(~ordkeeping, and doeumentation requirements 

9 shall be periodically reviewed and revised in the light of 

10 developments in the field of information technology. 

11 (h) CIVIL J1'0RPI£I'l'CRK12 (1) TN GRKER.AL.-Any tangible items seihed 

13 under suhsed,ion (a) by designated offieers or ern14 ployees shall be subject to forfeiture to the rnited 

15 States in ae(~ordanee vvith appli(~able law, exeept that 

16 property sei~ed shall be retumed if the property 

17 owner is not found guilty of a civil or criminal viola18 tion under section 109. 

19 (2) PROCEDURES.-Any seizure or forfeiture 

20 under this subsection shall be earried out in aeeord21 ance vvith the proeedures set forth in section 981 of 

22 title 18, United States Code. 
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58 

1 SEC. 112. ADMINISTRATIVE PROCEDURE. 

2 (a) lK GENERAL.-The funetiom; exereised under 

3 this title shall not be suqject to sections 551, 553 through 

4 ;)59, and 701 through 70G of title 5, United States Code. 

5 (b) llliNllNlSTRATlVJ£ LAW JuDGES.-The Secretary 

6 is authorized to appoint an administrative law judge, and 

7 may desigTulte administrative law judges from other Fed8 eral agencies who are provided pursuant to a legally au9 thorized interagency agreement vvith the Department of 

10 Commerce, and consistent with the provisions of section 

11 3105 of title 5, United States Code. 

12 (c) ANmKDlVTRK'l'S '1'0 RFXlTTJA'T'TONS.-The President 

13 shall notify in advance the Committee on Banking, Hous14 ing, and Urban Affairs of the Senate and the Committee 

15 on Foreign Affairs of the House of Representatives of any 

16 proposed amendments to the E)q)ort Administration Regu17 lations with an explanation of the intent and rationale of 

18 such amendments. 

19 SEC. 113. ANNUAL REPORT TO CONGRESS. 

20 (a) lN GK!'\KI:LU.-The President shall submit to 

21 Congress, by December 31 of each year, a report on the 

22 implementation of this title during the pre(~eding fis(~al 

23 year. The repmi shall include a review of24 (1) the effect of controls imposed under this 

25 title on exports, reexports, and transfers of items in 

26 addressing threats to the national security or foreign 
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54 

poliey of the 1~nited States, ind1Hling a deseription 

2 of licensing processing times; 

3 ( 2) the irnpa(~t of sueh eontrols on the S(~ientifie 

4 and technological leadership of the Cnited States; 

5 (3) the consistency "~th such controls of e"Xl)Ort 

6 controls imposed by other countries; 

7 ( 4) efforts to provide e)q)orters with compliance 

8 assistam~e, induding spe(~ifie adions to assist small9 and medium-sized businesses; 

10 (5) a summary of regulatory changes from the 

11 prior fiscal year; 

12 (G) a summary of e"Xl)Ort enforcement actions, 

13 induding of a(~tions taken to implement eml-mw 

14 monitoring of dual-use, military, and other items 

15 ~mlijeet to the EJqlort Administration RegTuations: 

16 (7) a summary of approved license applications 

17 to proscribed persons; 

18 (8) efforts undertaken within the prevwus year 

19 to comply with the requirements of section 109, in20 eluding any "critical technologies" identified under 

21 such section and how or whether such critical tech22 nologies were controlled for e)q)ort; and 

23 ( 9) a summary of industrial base assessments 

24 conducted during the previous year by the Depart25 ment of Commerce, including "~th respect to coun-
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55 

terfeit eleetroni(~S, foundational te(~hnologies, and 

2 other research and analysis of critical technologies 

3 and imlustrial (~apabilities of key defense-related se(~-

4 tors. 

5 (h) Fcm.M.-The report required under subsection (a) 

6 shall be submitted in unclassified form, but may contain 

7 a classified annex. 

8 SEC. 114. REPEAL. 

9 (a) I~ GENERAL.-The E:x'})ort Administration Act of 

10 1979 (50 U.S.C. App. 2401 et seq.) (as continued in effect 

11 pursuant to the International Emergency Economic Pow12 ers Act) is repealed. 

13 (h) IMPLE:\LENTATIOK.-The President shall imple14 ment the amendment made by subsection (a) by exercising 

15 the authorities of the President under the International 

16 Emergency Economic Powers Act (50 U.S.C. 1701 et 

17 seq.). 

18 SEC. 115. EFFECT ON OTHER ACTS. 

19 (a) IK GENERAL.-Except as otherwise provided in 

20 this title, nothing contained in this title shall be construed 

21 to modify, repeal, supersede, or otherwise affect the provi22 sions of any other laws authorizing control over e:x1)orts, 

23 reexports, or transfers of any item, or activities of L'nited 

24 States persons subject to the E:xl)ort Administration Reg25 ulations. 
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56 

(h) COORDINATIO~ OF CO~TROLS.-

2 (1) IN GENERAL.-The authority granted to the 

3 President under this title shall be exereised in sueh 

4 manner so as to achieve effective coordination with 

5 all eJq)ort control and sanctions authorities exercised 

6 by 11'ederal departments and agencies delegated with 

7 authority under this title, particularly the DepartS ment of State, the Department of the Treasury, and 

9 the Department of Energy. 

10 (2) SENSE OF COKCmESS.-Tt lS the sense of 

11 Congress that in order to achieve effective coordina12 tion described in paragTaph (1 ), such Federal de13 partments and ag-eneies14 (A) should continuously work to create en15 foreeable reg1:tlations with resped to the e::qJOrt, 

16 reexport, and transfer by Cnited States and 

17 foreign persons of commodities, software, techIS nology, and services to various end uses and 

19 end users for foreign policy and national secu20 rity reasons; 

21 (B) should regularly work to reduce com22 plexity in the system, including complexity 

23 caused merely by the existence of structural, 

24 definitional, and other non-policy based clif-
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57 

fererwes between aml among different e::qJOrt 

2 control and sanctions systems; and 

3 (C) should (~oordinate eontrols on items ex4 ported, reexported, or tnwsferred in connection 

5 with a foreig11 military sale under chapter 2 of 

6 the .Llnns Export Control Act or a commercial 

7 sale under section :38 of the ~~rms E2.1Jort Con8 trol Aet to reduee as mueh unne(~essary admin9 istrative burden as possible that is a result of 

10 differences between the exercise of those two 

11 authorities. 

12 (c) NONPROTJTFFJRA'l'TON CO~TROTJS.-Nothing in 

13 this title shall he eonstrued to supersede the proeedures 

14 published by the President pursuant to section :309(c) of 

15 the Nudear Non-Proliferation A(~t of 1978. 

16 SEC. 116. TRANSITION PROVISIONS. 

17 (a) IN GENERAL.-All delegations, rules, regulations, 

18 orders, determinations, licenses, or other forms of admin19 istrative action that have been made, issued, conducted, 

20 or allowed to become effective under the E"Xl)Ort Aclminis21 tration Act of 1979 (as in effect on the day before the 

22 elate of the enactment of this Act and as continued in ef23 feet pursuant to the International Emerg·ency Economic 

24 Powers Act), or the Export Administration Regulations, 

25 and are in effect as of the elate of the enactment of this 
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58 

Ad, shall eontinue in effeet aeeording- to their terms until 

2 modified, superseded, set aside, or revoked under the au3 thority of this title. 

4 (b) ADl\11NlS'l'RA'l'lVE Al\D JUDICIAL PR0-

5 CERDTNUS.-This title shall not affect any administrative 

6 or judicial proceedings commenced, or any applications for 

7 licenses made, under the Export Administration Act of 

8 1979 (as in effeet on the day before the date of the ene:wt9 ment of this Act and as continued in effect pursuant to 

10 the International Emergency Economic Powers Act), or 

11 the Export Administration Regulatious. 

12 (c) CRR'l'ATN DR'l'RK\HNA'l'TONS AND RRFRR.RNCRS.-

13 (1) STATE SPONSORS OF TERRORISM.-Any de14 termination that was made under section 6(j) of the 

15 E:Allort Administration A(~t of 1979 (as in effeet on 

16 the day before the date of the enactment of this Act 

17 and as continued in effect pursuant to the InterIS national Emergeucy Economic Powers Act) shall 

19 continue in effect as if the determination had been 

20 made under section 1 04( c) of this Act. 

21 (2) REFERENCE.-Any reference m any other 

22 provision of law to a country the government of 

23 which the Secretary of State has determined, for 

24 purposes of section 6(j) of the Export Administra25 tion Act of 1979 (as in effect on the clay before the 
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59 

date of the emwtment of this Ad and as (~ontinued 

2 in effect pursuant to the International Emergency 

3 Eeonomi(~ Powers Aet), is a government that has re4 peatedly provided support for acts of intemational 

5 terrorism shall he deemed to refer to a country the 

6 government of which the Secretary of State has de7 terminecl, for puq)oses of section 104( c) of this Act, 

8 is a government that has repeatedly providecl sup9 port for acts of international terrorism. 

10 TITLE II-ANTI-BOYCOTT ACT OF 

11 2018 

1 2 SEC. 201. SHORT TITLE. 

13 This Ad may be eited as the "Anti-Boyeott Aet of 

14 2018". 

15 SEC. 202. STATEMENT OF POLICY. 

16 Congress declares it is the policy of the C nited 

17 StatesIS (1) to oppose restrictive trade practices or hoy19 cotts fostered or imposed by any foreign country 

20 against other countries friendly to tlle United States 

21 or against any United States person; 

22 ( 2) to encourage and, in specified cases, require 

23 United States persons engaged in the export of 

24 goods or technology or other information to refuse to 

25 take actions, including furnishing information or en-
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60 

tering into or implementing agTeements, whieh have 

2 the effect of furthering or supporting the restrictive 

3 trade praetiees or hoy(~otts fostered or imposed by 

4 any foreign country against any United States per5 son; and 

6 (3) to foster international cooperation and the 

7 development of international rules and institutions 

8 to assure reasonable ae(~ess to world supplies. 

9 SEC. 203. FOREIGN BOYCOTTS. 

] 0 (a) PROTTTDTTTO~S AND EXGFJPTTONS.-

11 (1) PlWHIBI'l'lONS.-11'or the purpose of imple12 menting the policies set forth in section 202, the 

13 President shall issue regulations prohibiting any 

14 United States person, ~with respect to that person's 

15 e:wtivities in the interstate or foreign (~ornrneree of 

16 the United States, from taking or knowingly agree17 ing to take any of the follmving actions \vith intent 

18 to comply with, further, or support any boycott fos19 tered or imposed by any foreign country, against a 

20 country which is friendly to the United States and 

21 which is not itself the object of any form of boycott 

22 pursuant to United States law or regulation: 

23 (A) Refusing, or requiring any other per24 son to refuse, to do business with or in the boy25 cotted country, with any business concern orga-
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61 

nized under the laws of the boy(~otted eountiy, 

with any national or resident of the boycotted 

eounby, or \vith any other person, pursuant to 

au agreemeut with, a requirement of, or a request from or on behalf of the boycotting country. The mere absence of a busiucss relationship 

with or in the boycotted counhy \vith any business (~oneern organized under the laws of the 

boycotted country, ~with any national or resident 

of the boycotted country, or "~th any other person, docs not iudicatc the existence of the intent required to establish a violation of regulations issued to (~arry out this suhparagntph. 

(B) Refusing, or requiring any other person to refuse, to employ or otherwise diserirnina ting against auy C nitcd Sta tcs pcrsou ou the 

basis of race, religion, sex, or national origin of 

that person or of any owucr, officer, director, or 

employee of such person. 

(C) Furnishing information >vith respect to 

the race, religion, sex, or national origin of any 

United States person or of any cnvner, officer, 

director, or employee of such person. 

(D) Furnishing information, or requesting 

the furnishing of information, about whether 
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3 

4 

5 

6 

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8 

9 

10 

11 

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any person has, has had, or proposes to have 

any business relationship (inc.luding a relationship hy way of sale, purehase, legal or eommercial representation, shipping or other transport, 

insuranre, investment, or supply) v.~th or in the 

boycotted rountry, with any business roncern 

organized under the laws of the boycotted country, \vith any national or resident of the hoyrotted rountry, or with any other person which 

is knmvn or believed to be restrirted from having any business relationship with or in the boyrotting country. Nothing in this subparagraph 

shall prohibit the furnishing of normal business 

information in a rommerrial context as defined 

hy the Se(~retary. 

(E) l<'urnishing iuformation about whether 

any person is a member of, has made rontributions to, or is otherwise assoriated with or involved in the artivities of any rharitable or fraternal organization whirh supports the boyrotted rountry. 

(F) Paying, honoring, ronfirming, or otherwise implemeuting a letter of credit whirh contains any rondition or requirement romplianre 

with whirh is prohibited by regulations issued 
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pursuant to this paragraph, and no 1~nited 

2 States person shall, as a result of the applica3 tion of this paragraph, be obligated to pay or 

4 otherwise houor or implement such letter of 

5 eredit. 

6 (2) BxGKP'l'lONS.-Regulations issued pursuant 

7 to paragTaph ( 1) shall provide exceptions for8 (A) eompl_ying or agTeeing to eomply with 

9 requirements-

] 0 (i) prohibiting the import of goods or 

11 services from the boyeotted eountry or 

12 goods produeed or senices provided by any 

13 business eon(~ern organized under the laws 

14 of the boyeotted country or by nationals or 

15 residents of the boyeotted eountry; or 

16 (ii) prohibitiug the shipmeut of goods 

17 to the boycotting eountry on a carrier of 

18 the boycotted eountry, or by a route other 

19 than that preseribed by the boycotting 

20 eountry or the reeipient of the shipment: 

21 (B) eompl_ying or agreeing to comply ~with 

22 import and shipping document requirements 

23 with respeet to the eountry of origiu, the name 

24 of the em·rier and route of shipment, the name 

25 of the supplier of the shipment or the name of 
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6 

7 

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13 

14 

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16 

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20 

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24 

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the provi!ler of other serviees, ex(~ept that no information knowingly furnished or conveyed in 

response to sueh requirements may be state!l in 

neg·ative, blaclJistiug, or similar exclusionary 

terms, other than v.~th respect to carriers or 

route of shipmcut as may be permitted by such 

reg11lations in order to comply vvith preeautionary requirements proteding against war 

risks and confiscation; 

(C) complying or agreeing to comply in the 

nonnal course of business with the unilateral 

and specific selection by a boycotting country, 

or national or resident thereof, of earriers, insurers, suppliers of services to be performed 

within the hoy(~otting (~ountry or spe(~ifie goods 

which, in the normal course of busiucss, arc 

identifiable by source when imported into the 

boycottiug couutry; 

(D) complying or agreeing to comply with 

export requirements of the boycotting country 

relating to shipments or transshipments of exports to the boycotted country, to any business 

conccru of or organized uudcr the laws of the 

boycotted country, or to any national or resident of the boycotted country; 
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55 

(E) eomplianee by an individual or agreement by an individual to comply with the immigration or passport requirements of any eounhy 

with respect to such iudividual or any member 

of such indi,~dual's family or v.~th requests for 

information rcgardiug requiremeuts of employment of such individual within the boycotting 

eountly: and 

(F) compliance by a United States person 

resident in a foreig11 count1y or agreement by 

such persou to comply with the laws of that 

countly '"~th respect to his acti,~ties exclusively 

therein, and sueh regulations may eontain exceptions for such resident complying with the 

laws or regulations of that foreign (~ounhy govenung imports into such couutry f

. 0 

17 trademarked, trade named, or similarly specifi18 cally identifiable products, or components of 

19 products for his own use, including the per20 formance of contractual sen~ces v.~thin that 

21 country, as may be defined by such regulations. 

22 (:3) SPECBL Rl~LES.-R.egulations issued pur23 suant to paragraphs (2)(C) and (2)(F) shall not pro24 vide exeeptions from paragraphs (l)(B) and (l)(C). 
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( 4) RTTLE OF CONSTRrCTIO~.-)Jothing in thi~ 

2 subsection may be construed to supersede or limit 

3 the operation of the antitrust or eivil right~ laws of 

4 the United States. 

5 (5) APPTJTCATTO~.-This section shall apply to 

6 any transaction or activity undertaken, by or 

7 through a rnited States person or any other person, 

8 >vith intent to evade the provi~ion~ of thi~ ~edion a~ 

9 implemented by the regulations issued pursuant to 

10 this subsection, and such reg11lations shall e"Xl)ressly 

11 provide that the exceptions set forth in paragraph 

12 (2) shall not permit activities or agreements (ex13 pres~ed or implied by a eour~e of eonduet, induding 

14 a pattern of responses) othenvise prohibited, which 

15 are not \'\ithin the intent of ~ueh exeeption~. 

16 (b) PORJ<;IGN POLICY CON'l'ROLS.-

17 (1) lK GENERAL.-In addition to the regulaIS tions issued pursuant to subsection (a), regulations 

19 issued under title I of this Act to carry out the poli20 cies set forth in section 1 02(1 )(D) shall implement 

21 the policies set forth in this section. 

22 (2) REQUREMEKTS.-Such regulations shall 

23 require that any United States person receiviug are24 quest for the furnishing of information, the entering 

25 into or implementing of agTeements, or the taking of 
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any other adion referred to m subseetion (a) shall 

2 report that fact to the Secretary, together ~with such 

3 other information eoneerning- sueh request as the 

4 Secretary may require for such action as the Sec5 retary considers appropriate for carrying out the 

6 policies of that section. Such person shall also report 

7 to the Secretary whether such person intends to 

8 eomply and whether SU(~h person has (~omplied with 

9 such request. A~ny report filed pursuant to this para-

] 0 graph shall be made available promptly for public in11 spection and copying, except that information re12 garding the quantity, description, and value of any 

13 goods or tedmology to whi(~h sueh report relates 

14 may be kept confidential if the Secretary determines 

15 that disdosure thereof would plaee the 1~nited States 

16 person involved at a competitive disadvantage. The 

17 Secretary shall periodically transmit summaries of 

18 the information contained in such reports to the Sec19 retary of State for such action as the Secretary of 

20 State, in consultation vvith the Secretary, considers 

21 appropriate for carrying out the policies set forth in 

22 section 202. 

23 (c) PREElVLP'l'lON .-The provisions of this section aud 

24 the regulations issued pursuant thereto shall preempt any 

25 law, rule, or regulation of any of the several States or the 
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68 

Distri(~t of Columbia, or any of the territories or posses2 sions of the United States, or of any governmental subclivi3 sion thereof, whi(~h law, rule, or regulation pertains to par4 tic.ipation iu, c.omplianc.e with, implementation of, or the 

5 furnishing of information regarding restrictive trade prae6 tic.es or boyc.otts fostered or imposed by foreign c.ouutries 

7 against other c.ountries friendly to the rnited States. 

8 SEC. 204. ENFORCEMENT. 

9 (a) CRIMINAL PENALTY.-A person who ~willfully 

10 commits, v.~llfully attempts to commit, or v.~llfully con11 spires to c.ommit, or aids or abets in the commissiou of, 

12 an unlawful act section 2o:3-

13 ( 1) shall, upon eonvietion, he finecl not more 

14 than $1,000,000; or 

15 ( 2) if a natural person, may be imprisoned for 

16 not more than 20 years, or both. 

17 (b) CIVIL PENALTIES.-The President may impose 

18 the following civil penalties on a person who violates sec.-

19 tion 203 or any regulation issued under this title: 

20 (1) A fine of not more than $300,000 or an 

21 amount that is twice the value of the transaction 

22 that is the basis of the violation with respect to 

23 whic.h the peualty is imposed, whichever is greater. 

24 (2) Revocation of a license issued under title I 

25 to the person. 
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69 

(8) A prohibition on the person's ability to ex2 port, reexport, or transfer any items controlled 

3 under title I. 

4 (c) PROC1£DURBS.-Any civil penalty or administra5 tive sanction (including any suspension or revocation of 

6 authority to export) under this section may be imposed 

7 only after notice and opportunity for an agency hearing 

8 on the reeonl in ae(~ordanee with sedions f5f54 through f5f57 

9 of title 5, United States Code, and shall be subject to judi-

] 0 cial review in accordance with chapter 7 of such title. 

11 (d) STA_'\fDARDS !<'OR LBV1£LS 01:<' CIVIL PB~AL'l'Y.-

12 The President may by regulation provide standards for es13 tahlishing levels of eivil penalty under this seetion based 

14 upon factors such as the seriousness of the violation, the 

15 eulpahility of the violator, and the violator's reeord of eo16 operation with the Government in disclosing the violation. 

17 TITLE III-SANCTIONS REGARDIs lNG MISSILE PROLIFERATION 

19 AND CHEMICAL AND BI0-

20 LOGICAL WEAPONS PR0-

21 LIFERATION 

22 SEC. 301. MISSILE PROLIFERATION CONTROL VIOLATIONS. 

23 (a) VIOLATIONS BY lTNIT1£D STATES PBRSONS.-

24 (1) SANCTIONS.-
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2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

70 

(A) SANCTIONABLE ACTIV1TY.-The President shall impose the applicable sanctions deseribe!l in suhparagTaph (B) if the President 

determines that a United States person knowingly-

(i) exports, reexports, or transfers of 

any item on the MTCR Annex, in ~violation 

of the provisions of sedion 88 (22 U.S.C. 

2778) or chapter 7 of the Arms Export 

Control Act, title T of this Act, or any regulations or orders issued under auy such 

provisions; or 

(ii) (~onspires to or attempts to engage 

in such export, ree:x'})ort, or transfer. 

(B) s~~'l'CTIONS.-The sanetions that apply 

to a United States person uuder subparagraph 

(A) are the follmving: 

(i) lf the item on the lVl'l'CR ~\rmex 

involved in the e:x'})ort, ree:x'})ort, or transfer 

is missile equipment or technology within 

category II of the MTCR Annex, then the 

President shall deny to such United States 

persou, for a period of 2 years, liceuses for 

the transfer of missile equipment or technology controlled under title T. 
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71 

(ii) If the item on the MTCR Annex 

2 involved in the export, reexport, or transfer 

3 is missile equipment or te(~hnology within 

4 eategory l of the MTGR Annex, then the 

5 President shall deny to such United States 

6 persou, for a period of not less thau 2 

7 years, all lieenses for items the transfer of 

8 whieh is eontrollecl umler title I. 

9 (2) DISCRETIONARY S~~'JCTIONS.-ln the case 

10 of any determination referred to in paragraph (1 ), 

11 the President may pursue any other appropriate 

12 penalties under section 11 0 of this Act. 

13 (8) ~WAIVER.-The President may waive the irn14 position of sanctions under paragraph ( 1) on a per15 son with respeet to a produet or servi(~e if the Presi16 deut eertifies to the Congress that17 (A) the product or service IS essential to 

18 the national security of the United States; aud 

19 (B) such person is a sole source supplier of 

20 the product or service, the produet or serviee is 

21 not available from any alternative reliable sup22 plier, and the need for the product or serviee 

23 camwt be met iu a timely manuer by improved 

24 manufaeturing proeesses or technological devel25 opments. 
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72 

(h) TRANSFERS OF :YIISSILE EQUIP:\iE~T OR TECH2 XOLOGY BY FOREIGN PERSO~S.-

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

(1) 8ANCTIONS.-

(A) SAI\C'l'lO.:\ABLE AC'l'IVI'l'Y.-Subjec.t to 

paragTaphs (;3) through (7), the President shall 

impose the applicable sanctions under subparagraph (B) on a foreign person if the President-

(i) determines that a foreign person 

kn ovvin gly-

(1) exports, reexports, or transfers any MTCR equipment or technology that eontrihutes to the design, 

development, or production of missiles 

in a eountry that is not an MTCR adherent and would be, if it were C nited 

States-origin equipment or technology, 

sul~ject to the jurisdiction of the 

United States under title I; 

(IT) conspires to or attempts to 

engage in such export, ree:x'J)ort, or 

transfer; or 

(III) facilitates such export, reexport, or transfer by any other person; 

or 
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78 

(ii) has made a determination with re2 spect to the foreign person under section 

3 78(a) of the A.rrns E::q1ort Control Aet. 

4 (B) S~~\fCTIONS.-'l'he sauctions that apply 

5 to a foreign person under subparagraph (A) are 

6 the followiug: 

7 (i) If the item involved in the export, 

8 ree::qJOrt, or transfer is within (~ategory II 

9 of the MTCR Annex, then the President 

10 shall deny, for a period of 2 years, licenses 

11 for the transfer to such foreign person of 

12 missile equipment or technology the trans13 fer of whieh is eontrolled under title I. 

14 (ii) If the item involved in the export, 

15 ree::qJOrt, or transfer is ~within eategory I of 

16 the Sl'l'CR .L\.nnex, theu the President shall 

17 deny, for a period of not less than 2 years, 

18 licenses for the transfer to such foreigu 

19 person of items the transfer of which is 

20 controlled under title T. 

21 (2) INAPPLICABILITY WITH RESPECT TO MTCR 

22 ADHERE~TS.-Paragraph (1) does not apply with 

23 respect to24 (A) any eAlJOrt, reexport, or transfer that 

25 1s authorized by the laws of an MTCR adher-
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74 

ent, if SU(~h authorization IS not obtained by 

2 misrepresentation or fraud; or 

3 (B) any e:Allort, ree:Allort, or transfer of an 

4 item to au end user in a couutry that is au 

5 MTCR adherent. 

6 (3) E1''1''1£CT 01'' 1£NFORCE1Vll£NT ACTIO~S BY 

7 MTCR ADHERENTS.-Sanctions set forth in paraS gn1ph ( 1) may not be imposed under this subse(~tion 

9 on a person with respect to acts described in such 

10 paragTaph or, if such sanctions are in effect against 

11 a person on accouut of such acts, such sanctions 

12 shall be terminated, if an MTCR adherent is taking 

13 judi(~ial or other enfon~ernent a(~tion against that 

14 person Yvith respect to such acts, or that person has 

15 been found by the government of an MTCR adher16 cut to be iunoccnt of wrougdoiug with respect to 

17 such acts. 

18 ( 4) \VA1VJ£R AND RJ£PORT TO COJ'\GRJ£SS.-

19 (A) WAIVER AUTHORITY.-The President 

20 may waive the application of paragraph (1) to 

21 a foreign person if the President determines 

22 that such waiver is essential to the national se23 curity of the United States. 

24 (B) NOTIFICATIO~ A~'JD REPORT TO CON25 <lTIRSS.-Tn the event that the President decides 
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75 

to apply the wmver deseribed in subparagraph 

2 (A), the President shall so notify the appro3 priate eongressional eornrnittees not less than 

4 20 workiug days before issuiug the waiver. 

5 Sueh notifieation shall inelude a report fully ar6 tieulatiug the rationale aud eircumstauces 

7 whieh led the President to apply the waiver. 

8 (5) ADDITIOKAL WAIVER.-The President may 

9 waive the imposition of sanetions under paragraph 

1 0 ( 1 ) on a person \vith respect to a produet or serviee 

11 if the President eertifies to the appropriate congres12 sional eommittees that13 (A) the produd or servwe IS essential to 

14 the national seeurity of the United States; and 

15 (B) sueh person is a sole souree supplier of 

16 the product or serviee, the produet or serviee is 

17 not available from any alternative reliable sup18 plier, and the ueed for the product or serviee 

19 eannot be met in a timely manner by improved 

20 manufaeturing proeesses or teehnologieal devel21 

22 

opments. 

(6) EXCEPTIONS.-The President shall not 

23 apply the sanction uuder this subsection prohibiting 

24 the importation of the products of a foreign per25 son-
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2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

76 

(A) in the ea~e of proeurernent of !lefen~e 

articles or defense services-

(i) umler exi~ting (~ontraet~ or ~ubcontracts, including the exercise of options 

for production quantities to satisfy requirements essential to the national security of 

the United States; 

(ii) if the Pre~ident determine~ that 

the person to which the sanctions would be 

applied is a sole souree supplier of the defense articles or defense services, that the 

defense articles or defense serviees are essential to the national seeurity of the 

rnited States, and that alternative sourees 

are not rea(lily or rea~onahly availahle; or 

(iii) if the President determines that 

sueh artieles or serviees are essential to the 

national security of the United States 

under defense coproduction agreements or 

:.JATO Programs of Cooperation: 

(B) to products or services provided under 

contracts entered into before the elate on which 

the President publishes his intention to Impose 

the sanctions; or 

(C) to-
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2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

77 

(i) spare parts; 

(ii) component parts, but not finished 

produds, essential to United States products or production; 

(iii) routine senrices and maintenance 

of products, to the exteut that alternative 

sources are not readily or reasonably available; or 

(iv) information and technology essential to United States products or productiou. 

12 (c) DRFTNTTTONS.-Tn this section: 

13 ( 1) APPROPRIATE CO~CtRESSIONAL COlVDHT14 TEES.-The term "appropriate congressional com15 mittees" rneans16 (A) the Committee on 11'orcign Affairs of 

17 the House of R,epresentatives; and 

18 (B) the Committee on 11'orcign Relations 

19 and the Committee on Banking, Housing, and 

20 Urban Affairs of the Senate. 

21 (2) DEFE~SE ARTICLES; DEFENSE SERVICES.-

22 The terms "defense articles" and "defense ser·vices" 

23 mean those items ou the U uitcd States Munitions 

24 List as defined in section 47(7) of the ~~rms Export 

25 Control Act (22 U.S.C. 2794 note). 
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78 

(8) lVIr88ILE.-The term "missile" means a eat2 egory I system as defined in the MTC$, Annex. 

3 ( 4) MISSILE TECHNOLOGY CONTROL REGDm; 

4 lVl'l'CR.-The term "Slissile Technology Control Re5 gime" or "YfTCR" means the policy statement, be6 tween the C nited States, the United Kingdom, the 

7 Federal Republic of Germany, France, Italy, Can8 ada, and ,Japan, annomwe!l on April 16, 1987, to re9 strict sensitive missile-relevant transfers based on 

10 the MTCR Annex, and any amendments thereto. 

11 (5) lVlTCR ADHEREN'l'.-'l'he term "lVlTCR ad12 herent" means a country that participates in the 

13 MTCR or that, pursuant to an international under14 standing to which the United States is a party, con15 trois YITCR equipment or tedmology in ~weonlanee 

16 with the criteria and standards set forth in the 

17 MTCR. 

18 (6) lVlTCR ANNEX.-The term "Sl'l'CR Annex" 

19 means the Guidelines and Equipment and Tech20 nology Annex of the MTCR, and any amendments 

21 thereto. 

22 (7) MISSILE EQUIPMENT OR TECHNOLOGY; 

23 lVl'l'CR EQClPlVIEl'\'1' OR 'l'ECHNOLOGY.-The terms 

24 "missile equipment or technology" and "MTCR 
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79 

e(plipment or tedmology" mean those items listed in 

2 category I or category II of the MTCH Annex. 

3 SEC. 302. CHEMICAL AND BIOLOGICAL WEAPONS PRO· 

4 LIFERATION SANCTIONS. 

5 (a) TMPOST'T'TO~ OF SANC'T'TONS.-

6 (1) DETERlVlll\ATlO.:--.r BY THE PRESIDENT.-Ex7 cept as provided in subsection (b)(2), the President 

8 shall impose the sand,ion !les(~ribed in subsedion (e) 

9 if the President determines that a foreign person has 

10 knowingly and materially contributed11 (A) through the export from the C nitcd 

12 States of any item that is subject to the juris13 didion of the 1~nited States under this title: or 

14 (B) through the e:x'J)ort from any other 

15 eountry of any item that would he, if they were 

16 United States goods or technology, sul~ject to 

17 the jurisdiction of the rnited States under this 

18 title, 

19 to the efforts by any foreign country, project, or en20 tity described in paragTaph (2) to use, develop, 

21 produce, stockpile, or otherwise acquire chemical or 

22 biological weapons. 

23 (2) COUNTRIES, PROJECTS, OR ENTITIES RE24 CEIVIKG ASSISTAKCE.-Paragraph (1) applies in the 

25 case of-
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RO 

(A) any foreign eountry that the President 

2 determines has, at any time after ,January 1, 

3 1980--

4 (i) used chemical or biolog·ical weap5 ons in violation of international law; 

6 (ii) used lethal chemical or biological 

7 weapons against its own nationals; or 

8 (iii) made substantial preparations to 

9 engage in the activities described in clause 

10 (i) or (ii); 

11 (B) any foreign country whose govermnent 

12 is determined for purposes of section 1 04( c) of 

13 this A(~t to he a government that has repeatedly 

14 provided support for acts of international ter15 ronsrn; or 

16 (C) any other foreign couutry, prqject, or 

17 entity designated by the President for purposes 

18 of this section. 

19 ( 3) PERSOKS AGAIKST \VHICH SAKCTIO~S ARE 

20 TO DR TMPOSED.--A sanction shall be imposed pur21 suant to paragraph (1) on--

22 (A) the foreign person with respect to 

23 which the President makes the determination 

24 described in that paragraph; 
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29812e-81.eps

Rl 

(B) any sue(~essor entity to that foreign 

2 person; and 

3 (C) any foreign person that is a parent, 

4 subsidiary, or affiliate of that foreigu person if 

5 that parent, subsidiary, or affiliate knowingly 

6 assisted iu the activities which were the basis of 

7 that determination. 

8 (h) CO~SULTATIOKS WITH AND ACTIO~S BY FOR9 EIGN GUVERNMENT OF Jl~RISDICTI0~.-

10 (1) COKSTTT/rATTO'\S.-Tf the President makes 

11 the determiuations described iu subsectiou (a)(l) 

12 >vith respect to a foreign person, the Congress urges 

13 the President to initiate eommltations immediately 

14 with the government with primary jurisdiction over 

15 that foreigTl person with respeet to the imposition of 

16 a sauction pursuaut to this section. 

17 (2) ACTIO~S BY GUVERNMEKT OF .JURISDIC18 'l'lON.-ln order to pursue such cousultatious with 

19 that government, the President may delay imposition 

20 of a sanction pursuant to this section for a period 

21 of up to 90 clays. Following such eonsultations, the 

22 President shall impose the sanetion unless the Presi23 deut determines aud certifies to the appropriate eon24 gressional eommittees that the Government has 

25 taken speeific and effeetive aetions, including appro-
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82 

priate penalties, to terminate the involvement of the 

2 foreign person in the activities described in sub3 sed,ion (a)(l). The President may delay imposition 

4 of the sauction for au additional period of up to 90 

5 clays if the President determines and certifies to the 

6 Cougress that the govennneut is in the process of 

7 taking the actions described in the preceding sen8 tenee. 

9 ( 3) REPORT TO COKGRESS.-The President 

10 shall report to the appropriate congressional commit11 tees, not later than 90 days after making a deter12 mination under subsection (a)(l ), on the status of 

13 eonsultations with the appropriate government under 

14 this subsection, and the basis for any determination 

15 under paragraph (2) of this subsedion that sueh 

16 government has takeu specific corrective actious. 

17 (c) SANCTION.-

18 (1) DJ<;SClUP'l'lON OF SANC'l'lON.-'l'he sanction 

19 to be imposed pursuant to subsection (a)(l) is, ex20 cept as provided that the United States Government 

21 shall not procure, or enter into any contract for the 

22 procurement of, any goods or services from any per23 sou described in subsection (a)(3). 
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88 

(2) EXC:EPTIONS.-The President shall not he 

2 required to apply or maintain a sanction under this 

3 sed,ion4 (A) m the case of procurement of defense 

5 articles or defense seniees6 (i) under existing contracts or sub7 contracts, ineluding the exercise of options 

8 for pr<)(luetion quantities to satisfy 1~nited 

9 States operational military requirements; 

10 (ii) if the President determines that 

11 the pcrsou or other entity to which the 

12 sanctions would othenvise be applied is a 

13 sole souree supplier of the defense artides 

14 or defense services, that the defense arti15 des or defense serviees are essential, and 

16 that alternative sources arc uot readily or 

17 reasonably available; or 

18 (iii) if the President dctcrmiucs that 

19 such articles or services are essential to the 

20 national security under defense coproduc21 tion agreements; 

22 (B) to products or services provided under 

23 contraets entered into before the date on which 

24 the President publishes his intention to impose 

25 sanctions; 
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2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

84 

(C) to-

(i) spare parts; 

(ii) eornponent part~, but not fini~hed 

products, essential to United States products or production; or 

(iii) routine serviciug aud maintenance of products, to the extent that alternative ~ouree~ 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 

13 item~. 

14 (d) TERMI~ATION OF SANCTIONS.-A sanction im15 po~ed pursuant to thi~ ~e(~tion ~hall apply for a period of 

16 at least 12 months following the imposition of one sanctiou 

17 and shall cease to apply thereafter only if the President 

18 determines and certifies to the appropriate congressional 

19 committees that reliable information indicates that the 

20 foreign person v.~th respect to which the determination 

21 was made under subsection (a) ( 1) has ceased to aid or 

22 abet any foreign government, project, or entity in its ef23 forts to acquire chemical or biological weapous capability 

24 as described in that subsection. 

25 (e) WATVljJfl .. -
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85 

(1) CRITERIOK FOR WAIVER.-The President 

2 may waive the application of any sanction imposed 

3 on any penmn punmant to this sedion, after the end 

4 of the 12-mo11th period begi11ning· 011 the date 011 

5 which that sanction was imposed on that person, if 

6 the President determines and certifies to the appro7 priate congressional committees that such waiver is 

8 important to the national se(mrity interests of the 

9 United States. 

10 (2) NOTTFTCATTO~ OF AND REPORT TO CONII GRESS.-lf the President decides to exercise the 

12 waiver authority pmvided m paragraph (1 ), the 

I3 President shall so notify the appropriate (~mlgresI4 sional committees not less than 20 days before the 

I5 waiver takes effeet. Sueh notifieation shall indude a 

I6 report fully articulati11g the ratio11ale and cirI7 cumstances which led the President to exercise the 

I8 waiver authority. 

I9 (f) DEFINITIONS.-In this section: 

20 (1) APPROPR.TATE CXl~CmESSTONAJ, COl\!f:\fTT2I TEES.-The term "appropriate congressional com22 mittees" means23 (A) the Committee on Foreig11 Affairs of 

24 the House of R,epresentatives; and 
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(B) the Committee on Foreign Relation~ 

2 and the Committee on Banking, Housing, and 

3 Urban Mfair~ of the Senate. 

4 (2) D1£l<'B.\fSB AR'l'ICL1£S; DB1<'1£NS1£ 81£RVIC1£S.-

5 The terms "defense articles" and "defense senrices" 

6 mean those items ou the U uited States Munitions 

7 List or are otherwise controlled under the Arms Ex8 port Control A(~t. 

9 TITLE IV-ADMINISTRATIVE 

10 AUTHORITIES 

11 SEC. 401. UNDER SECRETARY OF COMMERCE FOR INDUS12 TRY AND SECURITY. 

13 (a) ArPOIKT:\LENT.-

14 ( 1) IN GE~ERAL.-The President shall appoint, 

15 hy and with the aclviee and eonsent of the Senate, 

16 an U uder Secretary of Commerce for Industry aud 

17 Security who shall carry out all the functions of the 

18 Secretary uuder this Act and such other provisions 

19 of law that relate to the implementation of the dual20 use export system. 

21 (2) ASSISTANT SECRETARIES OF COMMERCE.-

22 The President shall appoint, by and with the advice 

23 and consent of the Senate, two Assistaut Secretaries 

24 of Commerce to assist the Under Secretary in car25 rying out the functions described in paragTaph (1 ). 
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87 

(h) DELEGATI0~.-

2 (1) To SECRETARY.-The President shall con3 tinue the delegation of funetions to the Se(~retary to 

4 administer and enforce the export control system au5 thorized by this Act that were delegated to the Sec6 retary as of the day before the date of the enact7 ment of this Act. 

8 (2) To BT~REAU OF INDUSTRY AND SECTJ9 RITY.-The Secretary shall further delegate imple1 0 mentation of the authorities set forth in this Act to 

11 the Bureau of Industry and Security within the De12 partment of Commerce. 

[g] 
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29812j-1.eps

AMENDMENT TO THE AMENDMENT IN THE 

NATURE OF A SUBSTITUTE TO H.R. 5040 

OFFERED BY MR. SHERMAN OF CALIFORNIA 

Insert after subsection (a) of section 107 the following new subsection: 

1 (b) ADDITIONAL PROCEDURAL REQUIREMENTS.-

2 (1) lK GENERAL.-'l'he procedure required 

3 under subsection (a) shall provide for the assessment 

4 of the impact of a proposed export of an item on the 

5 United States defense industrial base and the denial 

6 of an application for a license or a request for an 

7 authorization of any e:\.rport that would have a sig8 nificant negative impact on such defense industrial 

9 base, as !leseribed in paragraph (:1). 

10 (2) lKFOR::\L~TIO~ FROM APPLIGAKT.-'l'he pro-

]] cedure required under subsection (a) shall also re12 quire an applicant for a license to provide the infor13 mation necessary to make the assessment provided 

14 under paragraph (1), induding whether the purpose 

15 or effect of the e:\.l)Ort is to allow for the significant 

16 production of items relevant for the defense indus17 trial base outside the United States. 
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2 

(8) SHiNIFICAKTLY KEGATI\7E IMPACT DE2 FI~ED.-A significant negative impact on the rnited 

3 State~ !lefen~e imlu~trial ha~e i~ the following: 

4 (A) A reduction iu the availability of au 

5 item produced in the United States that is like6 ly to be acquired by the Department of Defense 

7 or other Federal department or agency for the 

8 a!lvan(~ement of the national ~e(mrity of the 

9 United States, or for the production of an item 

10 in the United States for the Department of Dell fense or other agency for the advancemeut of 

12 the national security of the rnited States. 

13 (B) A reduetion in the pr()(hwtion in the 

14 United States of an item that is the result of 

15 re~eareh and development earried out, or fund16 eel by, the Department of Defeuse or other l<'ed17 eral department or agency to advance the na18 tional security of the Cnited States, or a feder19 ally funded research and development center. 

20 (C) A reduction in the employ111ent of 

21 United States persons whose knowledge and 

22 skills are necessary for the continued produc23 tion in the rnited States of an item that is 

24 likely to be acquired by the Department of De25 fense or other Federal department or agency 
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2 

for the a!lvam~ernent of the national seeurity of 

the United States. 

[g] 
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29812b-1.eps

ll'iTH CONGRESS 

2D SJ£88101\ H. R. 5129 

To r~authorize the (Hobal Food Se>eurity Ad, of 20Hi, and for other pnrpo,;es. 

IK THE HOUSE OF REPRESE~TATIVES 

FEBRUARY 37, 3018 

:VIr. SMl'l'll of New Jersey (for himself, Ms. ThfcCOLLU.Vl, Mr. RoYCB of California. l'iir. EKGEL, Mr. AUSTIN SCOTT of (Jeorgia, }Is DAS8, Mr. Foi:· 

TEKBe;mw, Mr. l\1cGm~R-K, lVlr. l'ATTL8RN, Ms. DF:IJ!\T;Ro, Mr. 

REICHERT, .1\Ir. 8:\HTH of vVa,;hington, and 1\Ir. CICILLlNE) intro([U(oed 

the following hill; whieh was referred to the Committee ou Foreign ili· 

fairs 

A BILL 

To reauthorize the Global Food Security Act of 2016, and 

for other purpo~e~. 

Be il enacted by the Senate and House of Represenla2 tiues of the United 8tates ofA.mel'ica in 

3 SECTION 1. SHORT TITLE. 

4 This Act may be c·ited as the "Global Food Security 

5 Reauthorization Act of 2018". 

6 SEC. 2. AMENDMENTS TO THE GLOBAL FOOD SECURITY 

7 ACT. 

8 (a) STATE:VmNT OF POT,TCY On.mCTTVES.-Section 

9 :3(a)(6) of the Global B'ood Security Aet of 2016 (22 
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29812b-2.eps

2 

U.S.C. 9802(a)(6)) i;-; amended by in;-;erting- "deworrning 

2 programs," after "diet diversification,". 

3 (h) RELEVANT FEDEB.AL DEPARTMENTS :'L.'m ArmN4 CIBS.-Seetion 4(7) of sueh Act (22 U.S.C. 9303(7)) is 

5 amended by inserting "the Inter-American Foundation," 

6 after "the C nited States Africa Development 11'ouuda7 tion, ''. 

8 (e.) ATTTHOB.IZATION OF APPROPRIATIONS To IlVIPLE9 ::\IE:.JT GLOBAL FOOD SECURITY STRATEGY.-Section 6(b) 

10 of such Act (22 r.S.C. 9305(b)) is amended by striking 

11 "fiscal years 2017 aud 2018" and inserting "fiscal years 

12 2017 through 2021 ". 

13 (d) REPORTS.-The matter preeeding seetion R(a)(l) 

14 of sueh Act (22 U.S.C. 9:307(a)(l)) is amendedIS (1) by striking "Not later than 1 year and 2 

16 years after the date of the submission of the strat17 egy required under section 5 (c)," and inserting "Not 

18 later than September 30, 2018, and annually there19 after through 2021,"; and 

20 by striking "for 2017 and 2018" and m21 serting "for the preeeding fiscal year". 

22 SEC. 3. AMENDMENT TO THE FOREIGN ASSISTANCE ACT OF 

23 1961. 

24 Seetion 492(a) of the Foreign Assistance Act of 1961 

25 (22 U.S.C. 2292a(a)) is amended by striking "fiscal years 
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2017 and 2018" and inserting "fiseal years 2017 through 

2 2021". 
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29812f.eps

AMENDMENT TO H.R. 5129 

OFFERED BY MR. SMITH OF NEW JERSEY 

Page 2, line 12, strike "2021" and insert "2020". 

Page 2, line 19, strike "2021" and insert "2020". 

Page :1, line 2, strike "2021" and insert "2020". 
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115THC01\GR!£SS H R 5274 2D SESSIOK 

• • 

To promote international exchanges on best election praetices, cultivate more 

SPcure demorratic institutions around the world, all(l for otl1er pllrposes. 

IX TIIE HOrSE OF REPRESENTATIV'ES 

]\{ARCH 14, :_l018 

lVIr. CASTRO of Texas (for himself, Mr. lYIKillOWS, Mr. PmcE of North Carolina, aml lVlr. ROSKAJ\!) introdn<'ed tlH~ following bill; which was refprred 

to the CommittAe on Foreign Affairs 

A BILL 

To promote international exchanges on best election practir.es. enltivate more seenre demor.ratie institutions 

around the world, and for other purpoRes. 

Be it enacted by the Senate and House of Re:presenta2 t1:ves of the Unded States 

3 SECTION 1. SHORT TITLE. 

4 'l'his Act may be cited as the "Global Electoral Bx5 change 1'l.ct". 

6 SEC. 2. SENSE OF CONGRESS. 

7 It is the sense of CongTess that8 ( 1) recent elections globally have ilh.1strated the 

9 urgent ueed for the promotion and exchange of 
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international best election practices, particularly in 

2 the areas of cybersecurity, results transmission, 

3 transparency of electoral data, election dispute reso4 lution, and the elimination of discriminatory reg5 istration practices and other electoral irregularities; 

6 (2) the advancemeut of democracy worldwide 

7 promotes ~American interests, as stable democracies 

8 provide new market opportunities, improve global 

9 health outcomes, and promote economic freedom and 

10 regional security; 

11 ( 3) eredible elections are the cornerstone of a 

12 healthy democracy and enable all persons to exercise 

13 their basic human right to have a say m how they 

14 are governed; 

15 ( 4) inclusive elertions strengthen the credibility 

16 and stability of democracies more broadly, as demo17 cratic iustitutions flourish when representative of all 

18 gToups of society; 

19 ( 5) at the heart of a strong elertion cycle is the 

20 professionalism of the election management body 

21 and an empowered civil society; and 

22 ( 6) the development of loeal expertise via peer23 to-peer learuing and exchanges promotes the inde24 pendence of such bodies from internal and external 

25 influence. 
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3 

1 SEC. 3. GLOBAL ELECTORAL EXCHANGE. 

2 (a) GTDRAT, ELECTORAl, EXCHA'\GE.-The See3 retary of State shall establish and administer a Global 

4 Eleetoral Exchange Program to promote the utilization of 

5 souml election admiuistration practiees iu the United 

6 States aud foreign countries. 

7 (b) PURPOSE.-The purpose of the Gjobal Eleetoral 

8 Exchange Program described in subsection (a) shall in9 elude the promotion and exchange of international best 

10 election practices, including in the areas of tybersecurity, 

11 results transmission, transparency of electoral data. elec12 tion dispute resolution, the elimination of diseriminatory 

13 registration praetiees and electoral irreg11larities, and 

14 other sound election administration practices. 

15 (c) EXCIL'li~OE OF ELECTORAL AUTHORITIES.-

16 (1) h GENJ£1\.AL.-The Secretary of State may, 

17 m consultation, as appropriate, ~vvith the United 

18 States Agency for International Development andre19 gionally focused independent agencies, make gTants 

20 to any United States-based organization deseribed in 

21 section 501(c)(3) of the Internal Revenue Code of 

22 1986 and exempt from tax under seetiou 50l(a) of 

23 such Code vv:ith e:zq)erience in comparative election 

24 systems or subject matter e:qwrtise in the areas of 

25 election administration or electoral integrity that 
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!± 

submits an application in such form, and satisfying 

2 such requirements, as the Secretary may require. 

3 (2) Trt>ES OF GR.AN1'8.-All organi7.aticm de4 scribed in paragraph (1) may receive a gTant for one 

5 or more of the following purposes: 

6 LA) To design aml implement programs 

7 bringing clcetiou administrators and officials, 

8 including government officials, polling ~workers, 

9 ri,il Roriety repreRentatives, memherR of the ju1 0 diriary, and otherR who participate in the orga11 nization and administration of an election in a 

12 foreign country to the United States to study 

13 election procedures in the C nited States for 

14 educational puqJoses. 

15 (I3) To design and implement programs 

16 taking United States or another country'R elec17 tion administrators and offieials, iueluding guv18 ernment officials, polling workers, ehil society 

19 representatives, members of the judiciary, and 

20 others who partieipate in the organi;mtion and 

21 administration of electiom; for public office m 

22 the United States or such other countries to 

23 foreign eouutries to study election proeedures iu 

24 such countries for edueational purposes. 
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5 

(3) COORDINATIO~.-The Secretary of State 

2 shall coordinate ~vith State and local governments in 

3 the United States, in addition to the govennnents of 

4 United States territories, to conduct exchanges 

5 under this section and may enter into memorandums 

6 of understanding with such governments to guide 

7 participation by such governments in the Global 

8 Electoral Exchange Program. 

9 ( 4) LIMITS 0~ ACTIV1TIE8.-Activities adminis1 0 tered under the Global Electoral Exchange Program 

11 may not12 (A) include election observation for the 

13 puqJoses of discussing the validity or legitimaey 

14 of an election; or 

15 (13) facilitate any advocacy for a certain 

16 electoral result hy a IITantee when participating 

17 in the Program. 

18 (5) BlURTHER LIMITS.-A reeipient of a grant 

19 under the Global Electoral Exehange Program may 

20 use such grant for only the purpose for whieh such 

21 grant was awarded, unless otherwise authorized by 

22 the Secretary of State. 

23 (6) NOT DUPLICA'TIVE.-Grants nwde umler 

24 this subseetion may not be duplieative of any other 
186


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grants made under any other prov1st0n of law for 

2 similar or related pm1)l1ses. 

3 SEC. 4. REPORT. 

4 (a) TNTRTINI'JT.-The Secretary of State shall mam5 tain a publically available Department of State website de6 tailing the Global Electoral Exehange ProgTam, including 

7 a list of grants awarded under the Program aud the 

8 amount awarded in eaeh such grant, eaeh annual report 

9 required under :-;ubRection and other information at 

10 the di:-;cretion of the Secret my. 

11 (lJ) NOTIFICATION OF GR..cli'JTS.-Not later than 30 

12 days after each grant award under the Global Eleetoral 

13 Exchange Program under section 3, the Seeretary of State 

14 shall publish on the website described in subsection (a) 

15 a summary of such grant, including criteria for :-;electing 

16 the grantee and any relevant agreements hetween the Sec17 retary of State and foreign govermneuts, State and loeal 

18 governments in the United States, or the governments of 

19 United States ten-itories that are assoeiated vvith such 

20 grant. The Secretary shall notify the Comrnittee on For21 eign Affairs of the Hom;e of Representatives and the Com22 mittee on Foreign Relations of the Senate of sueh publiea23 tion. 

24 (c) ANXUAL REPORTS.-
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7 

(1) IN GENERAL.-:::\ot later than one year 

2 after the date of the enactment of this Act and every 

3 year thereafter, the Secretary of State shall publish 

4 on the website deseribed in subsection (a) a report 

5 on the Global Electoral Exchange Program and no6 tify the Committee on Foreigu _Affairs of the House 

7 of Representatives and the Cmmnittcc on Foreign 

8 Relations of the Senate of such report. 

9 (2) ELEMENTS.-The reportR required hy para1 0 gTaph ( 1) Rhall include the following: 

11 (A) A summary of all exchanges condueted 

12 under the Global Eleetoral Exchange Program, 

13 including criteria used to select grantees. 

14 (B) A summary of all memorandum of un15 derstandings '.vith States, local governments, 

16 and territories m accordance with section 

17 3(c)(3). 

18 (d) ANNUAl, 1\ECOJ\IlVIE::\DATIO::\S.-ln eonjunction 

19 with the annual reports required under subsection (c), the 

20 Seeretary of State may provide recommendatio11s for the 

21 improvement of the Global Electoral Exchange ProgTam, 

22 based on the purposes under section 3(b), in a written re23 port to the Committee on l<'oreign Affairs of the House 
188


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of Representatives and the Committee on Foreign Rcla2 tions of the Senate. 
189


29812g-1.eps

AMENDMENT IN THE NATURE OF A SUBSTITUTE 

TO H.R. 5274 

OFFERED BY MR. CASTRO 

Strike all after the enacting clause and insert the 

follmving: 

1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the "Global Electoral Ex3 change Act". 

4 SEC. 2. SENSE OF CONGRESS. 

5 It is the sense of Congress that6 (1) recent elections globally have illustrated the 

7 urgent need for the promotion and exchange of 

8 international best election practices, particularly m 

9 the areas of (~yberseeurity, results transmission, 

10 transparency of electoral data, election dispute reso11 lution, and the elimination of discriminatory reg12 istration practices and other electoral irregularities; 

13 (2) the advancement of democracy worlchvide 

14 promotes Ameriean interests, as stable dernoera(~ies 

15 provide new market opportunities, improve global 

16 health outcomes, and promote economic freedom and 

17 regional security; 
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2 

( 8) (~redible eleetions are the (•ornerstone of a 

2 healthy democracy and enable all persons to exercise 

3 their basi(~ human right to have a say in how they 

4 are governed; 

5 ( 4) inclusive elections strengthen the credibility 

6 and stability of democracies more broadly, as demo7 cratic institutions flourish when representative of all 

8 gTonps of soeiety; 

9 ( 5) at the heart of a strong election cycle is the 

10 professionalism of the election management body 

11 and an empowered civil society; and 

12 (G) the development of local e:q)ertise ~via peer13 to-peer learning aml exdmnges promotes the inde14 pendence of such bodies from internal and external 

15 influenee. 

16 SEC. 3. GLOBAL ELECTORAL EXCHANGE. 

17 (a) GLOBAL ELECTORAL EXCHANGE.-The Sec18 retary of State is authori:,-;ed to establish and administer 

19 a Global Electoral Exchange Program to promote the utili20 :1.ation of sound election administration practices around 

21 the world. 

22 (b) PURPOSE.-The puq)ose of the Global Electoral 

23 Exchange Program described in subsection (a) shall in24 elude the promotion and exchange of international best 

25 election practices, including in the areas of cyberseeurity, 
191


29812g-3.eps

results transmission, transpareney of eleetoral data, ele(~-

2 tion dispute resolution, the elimination of discriminatory 

3 registration pnwti(~es aml eleetoral irregularities, and 

4 other souud electiou admiuistratiou practices. 

5 (c) EXCHANGE OF ELEC'I'CHlAT, AU'I'TTORI'l'TES.-

6 (1) IN GE1'\E&~.-'l'he Secretary of State may, 

7 m consultation, as appropriate, with the rnited 

8 States Ageney for International Development, make 

9 grants to any United States-based organization de10 scribed in section 501(c)(3) of the Internal Revenue 

11 Code of 1986 and exempt from tax under section 

12 501 (a) of such Code \vith e:q)erience in comparative 

13 ele(~tion systems or subjed matter e::qwrtise in the 

14 areas of election administration or electoral integrity 

15 that submits an applieation in sueh form, and satis16 ~ying such requirements, as the Secretary may re17 quire. 

18 (2) 'l'YPES m· GR.Al\'l'S.-~\11 organi11ation de19 scribed in paragraph ( 1) may receive a grant for one 

20 or more of the follmving purposes: 

21 

22 

23 

24 

25 

(A) To design and implement programs 

bringing election administrators and officials, 

including government officials, poll workers, 

civil society representatives, members of the judiciary, and others who participate in the orga-
192


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4 

nization aml administration of puhlie eleetions 

2 in a foreign country to the United States to 

3 study eleet,ion proeedures in the United States 

4 for educational purposes. 

5 (D) To design and implement progTams 

6 takiug United States or another country's elec7 tion administrators and officials, including gov8 ernment offieials, poll workers, (~ivil S(H~iety rep9 resentatives, members of the judiciary, and oth1 0 ers who participate in the organization and ad11 ministration of public elections to study electiou 

12 procedures for educational puq)oses. 

13 (8) LIMITS ON ACTI\7ITIE8.-Adivities adrninis14 tered under the Global Electoral Exchange Program 

15 may not16 (A) include observation of an election for 

17 the purposes of assessing the validity or legitIS imacy of that election; or 

19 (B) facilitate any advocacy for a certain 

20 electoral result by a grantee when participating 

21 in the Program. 

22 ( 4) SENSE OF COKGRESS.-It IS the sense of 

23 Cougrcss that the Secretary of State should estab24 lish and maintain a network of Global Electoral Ex25 change Program alumni, to promote communication 
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5 

and further exehang-e of information reg-arding 

2 sound election administration practices among cur3 rent and former progTarn partieipants. 

4 (5) PUR'l'HJ!JR LllVll'l'S.-A recipient of a grant 

5 under the Global Electoral Exchange Program may 

6 usc such grant for only the purpose for which such 

7 grant was awarded, unless otherwise authorized by 

8 the Se(~retary of State. 

9 (6) NOT DUPLICATIVE.-Grants made under 

10 this subsection may not be duplicative of any other 

11 grants made under any other provision of law for 

12 similar or related puqxlses. 

13 SEC. 4. CONGRESSIONAL OVERSIGHT. 

14 Not later than one year after the date of the enact15 ment of this Ad aml in ead1 of the folluwing two years 

16 thereafter, the Secretary of State shall provide to the 

17 Committee on Foreign Affairs of the House of Representa18 tivcs and the Committee on Foreign Relations of the Scn19 ate a briefing on the status of any activities carried out 

20 pursuant to this Act during the preceding year, which 

21 shall include, among other information, the follmving: 

22 ( 1) A summary of all exchanges conducted 

23 under the Global Electoral Exchang·c Program, in24 eluding information regarding grantees, participants, 

25 and the locations where program activ-ities were held. 
194


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6 

(2) A des(~ription of the (~riteria used to seleet 

2 grantees under the Global Electoral Exchange Pro3 gnmL 

4 (3) Any recommendations for the improvemeut 

5 of the Global Electoral Exchange ProgTam, based on 

6 the purpose specified iu section 3 (b). 

~ 
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29812h.eps

AMENDMENT TO THE AMENDMENT IN THE 

NATURE OF A SUBSTITUTE TO H.R. 5274 

OFFERED BY Ms. TITUS OF NEVADA 

In section 3(b), iusert "equitable access to polling 

places, voter education information, and voting mechamsrm; (induding by persons with disabilities)," after 

"electoral irregularities,". 
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115TH CONGRESS 

2D SE88IOK H. R.5480 

To improve programs and activities relating to women's entrepreneurship 

and economic cmpowcrmrnt tl1at arc carried out by the United States 

Agem•y for International Development, and for other pnrpot':e~. 

IK THE HOUSE OF REPRESE)JTATIVES 

}Ir. RoYCJ£ of California (for himself and }Is. FHANliliL of Florida) introduced tllC follrm~ng bill; which was referred to tllC Committee on 

A BILL 

To Improve prognum; and e:wtivities relating to women's entrepreneurship and ecouomic empowerment that are carried out by the United States Agency for International 

Development, and for other purposes. 

1 Be il enacted by the 8enale and House of Represenla2 hves ofthe Undecl 8tates ofA_mm·z:ca in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the "\Vomen's Entrepre5 neurship and Economic Empowerment Act of 2018". 
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2 

1 SEC. 2. FINDINGS. 

2 Congress finds the following: 

3 ( 1) Because women make up the majority of 

4 the world's poor and gender inequalities prevail m 

5 mcomes, wages, access to finance, ownership of as6 sets, and control over the allocation of resources, 

7 women's entrepreneurship and eeonomi(~ empowerS ment is important to achieve inclusive econonnc 

9 growth at all levels of society. Research shows that 

10 when women exelt greater influence over household 

11 finances, economic outcomes for families improve, 

12 and childhood sm\~val rates, food security, and edu13 cational attainment increase. vVomen also tend to 

14 place a greater emphasis on household savings which 

15 improves families' financial resiliency. 

16 (2) A 201G report by the McKinsey Global In17 stitute estimated that aehieving global gender parity 

18 in economic activity could add as much as $28 tril19 lion to annual global gross domestic product (GDP) 

20 by 2025. 

21 (:3) Lack of access to financial services that ad22 dress gender-speeifie eonstraints impedes women's 

23 economic inclusion. More than one billion women 

24 around the world are currently left out of the formal 

25 financial system, which in turn causes many women 

26 to rely on informal means of saTing and borrmving 
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that are ri~kier and le~~ reliable. Among other eon2 sequences, this hampers the success of women entre3 preneur~, im~luding those ~eeking to run or grow 

4 small and meclium-si~ed enterprises (SlVlEs). The 

5 International Finance Corporation has estimated 

6 that 70 percent of women-owned SlVlEs in the for7 mal sector are unserved or underserved in terms of 

8 <:W(~e~~ to eredit, amounting to a $2K5 billion eredit 

9 gap. 

10 (4) \Vomen's economlC empowerment is inex11 tricably linked to a myriad of other women's human 

12 rights that are essential to their ability to thrive as 

13 eeonorni(~ aetors aeros~ the life(~yde. Thi~ indude~, 

14 but is not limited to, living lives free of violence and 

15 e::qJloitation, aehieving the highe~t po~sihle ~tandanl 

16 of health and well-being, eqjoying full legal aud 

17 human rights such as access to registration, identi18 fication, and citi~enship documents, benefitting from 

19 formal and informal education, and equal protection 

20 of and access to land and property rights, access to 

21 fundamental labor rights, policies to address dis22 proportionate care burdens, and business and man23 agement skills and leadership opportunities. 

24 ( 5) Diseriminatory legal and regulatory systems 

25 and banking practices are hurdles to women's aecess 
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4 

to eapital and assets, in(~luding laml, rmwhinery, pro2 duction facilities, technology, and human resources. 

3 Often, these barriers are eonne(~ted to a woman's 

4 marital status, which can determine whether she is 

5 able to inherit land or O\vn property in her name. 

6 These constraints contribute to women frequently 

7 running smaller businesses, with fewer employees 

8 and lower asset values. 

9 ( 6) Smrings groups primarily comprised of 

10 women are recognihed as a v-ital entry point, espe11 cially for poor and very poor women, to formal fi12 nancial serv-ices and there is a high demand for such 

13 gTonps to proteet and gTow their savings with formal 

14 financial institutions. Evidence shows that, once 

15 linkecl to a hank, the average savings per member 

16 increases between 40 to 100 percent and the average 

17 profit per member doubles. Key to these outcomes is 

18 investing in financial literacy, business leadership 

19 training, and mentorship. 

20 (7) United States support for microenterprise 

21 and microfinance development programs, which seek 

22 to reduce poverty in low-income countries by giving 

23 small loans to small-scale entrepreneurs without col24 lateral, have been a useful mechanism to help fami25 lies weather economic shocks, but many microcredit 
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29812d-5.eps

borrowers largely remain in poverty. The vast nn~jor2 ity of microcredit borrowers are women who would 

3 like to move up the eeonorni(~ la!lder hut are held 

4 back by binding constraints that create a "missing 

5 middle" -large numbers of microenterprises, a hand6 ful of large firms or conglomerates, and very few 

7 SMEs in between, which are critical to driving eco8 norni(~ growth in !leveloping (~ountries. 

9 ( 8) According to the World Bank, SMEs create 

10 4 out of 5 new positions in emerging markets but 

11 about half of formal SlVllis don't have access to for12 mal credit. The financing gap is even larger when 

13 micro and informal ente11Jrises are taken into <W14 count. Overall, approximately 70 percent of all 

15 mwro, small and medium-sized ente11Jrises (MSMEs) 

16 in emerging markets lack access to credit. 

17 SEC. 3. ACTIONS TO IMPROVE GENDER POLICIES OF THE 

18 UNITED STATES AGENCY FOR INTER19 NATIONAL DEVELOPMENT. 

20 (a) DRVl<JlilP:\fENT COOPRTI.ATTOK POT,TCY.-Tt shall 

21 be the development cooperation policy of the rnited 

22 States23 (1) to reduce gender disparities in access to, 

24 control over, and benefit from economic, social, polit-
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6 

ieal, and eultural resourees, wealth, opportunities, 

2 and ser·vices; 

3 (2) to strive to eliminate gender-based violenee 

4 and mitigate its harmful effects on individuals aud 

5 communities through efforts to develop standards 

6 and capacity to reduce gender-based violence in the 

7 workplace and other places where women conduct 

8 work; 

9 ( 3) to support activities that secure private 

10 property rights and land tenure for women in clevel11 oping countries, including legal frameworks to give 

12 women equal rights to ovvn, register, use, profit 

13 from, and inherit land and property, legal litenwy to 

14 exercise these rights, and capacity of law enforceIS ment and (~ommunity leaders to enfon~e SU(~h rights; 

16 and 

17 ( 4) to increase the capability of women and 

18 girls to rcali11e their rights, determine their life out19 comes, assume leadership roles, and influence deci20 sion-making in households, communities, and socl21 eties. 

22 (b) ACTIONS.-In order to advance the policy de23 scribed in subsection (a), the Administrator of the L'nitcd 

24 States Agency for International Development shall ensure 

25 that-
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29812d-7.eps

7 

(1) 8trategies, prqje(~ts, and adivitie8 of the 

2 Agency are shaped by a gender analysis and, when 

3 appli(~able, u8e stamlard indi(~ator8 to provide one 

4 measure of success of such strategies, projects, and 

5 activities; and 

6 (2) gender equality and female empowerment is 

7 integrated throughout the Agency's ProgTam Cyc.le 

8 and related proee8se8 for purpo8es of 8trategi(~ plan9 rung, project design and implementation, and moni1 0 toring and evaluation. 

11 (c) GEJ'\DER ANALYSIS DEl''l~ED.-ln this section, 

12 the term "gender analysis"-

13 ( 1) mean8 a 80(~io-eeonomie analy8i8 of available 

14 or gathered quantitative and qualitative information 

15 to identify, umler8tand, and e},.1Jlain gap8 between 

16 men and women which typically involves exam17 ining18 (A) differences in the status of women and 

19 men and their differential access to and control 

20 over assets, resources, opportunities, and serv21 ices; 

22 (B) the influence of gender roles, struc23 tural barriers, and norms on the division of 

24 time between paid emplo:vrnent, unpaid work 
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(im~luding subsistem~e produetion aml (~are for 

2 family members), and volunteer activities; 

3 (C) the influenee of gender roles, stnw4 tural barriers, aud norms on leadership roles 

5 and decision making; constraints, opportunities, 

6 aud entry points for narrowiug gender gaps aud 

7 empowering women; and 

8 (D) potential differential impads of clevel9 opment policies and programs on men and 

10 women, including unintended or negative con11 seq ucnccs; and 

12 (2) includes conclusions and recommendations 

13 to enable development polieies and prognuns to nar14 row gender gaps and improve the lives of women and 

15 girls. 

16 SEC. 4. DEVELOPMENT ASSISTANCE FOR MICRO, SMALL 

17 AND MEDIUM-SIZED ENTERPRISES. 

18 (a) 11'INDINGS AND POLICY.-Scctiou 251 of the J<'or19 eign Assistance Act of 1961 (22 r.S.C. 2211) is amend20 ed21 (1) in paragraph (1)-

22 

23 

24 

(A) by striking "microenterprise" and inserting "micro, small and medium-sized cuterprise"; 
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9 

(B) by striking "and in the development" 

2 and inserting ", in the development"; and 

3 (C) by adding at the end before the period 

4 the following: ", and in the economic empowerS ment of the poor, especially women"; 

6 (2) in paragraph (2)-

7 (A) by striking "microenterprise" and in8 serting "miero, small aml medium-sized enter9 prise"; and 

10 (D) by adding at the end before the period 

11 the following: '', palticularly those enterprises 

12 ovvned, managed, and controlled by women"; 

13 ( 8) in paragraph ( :1), by striking "rnieroenter14 prises" and inserting "micro, small and mediumIS sized enterprises''; 

16 (4) in paragraph (4), by striking "microenter17 prise" and inserting "micro, small and medium-sized 

18 enterprise"; 

19 (5) in paragraph (5)-

20 (A) by striking "should continue" and in21 serting "should continue and be expanded"; and 

22 (B) by striking "microenterprise and 

23 microfinance development assistance" and in24 serting "development assistance for micro, 

2S small and medium-si:1.ed enterprises"; and 
205


29812d-10.eps

2 

3 

4 

5 

6 

7 

8 

9 

10 

(6) in paragraph (6)-

(A) by striking "have been successful" and 

inserting "have had some sueeess"; 

(B) by strikiug "microenterprise programs" and inserting "development assistanee 

for micro, small aml medium-sized enterprises"; 

and 

(C) by striking " sueh as eountries m 

Latin A.merica". 

10 (b) ATT'I'TTOTIT:;T,i\TTON; hTPT;EJVrEN'l'A'l'TOK; TAHGE'l'ED 

11 ASSIS'l'ANCK-Scction 252 of the .B'orcign Assistance Act 

12 of 19G1 (22 U.S.C. 2211 a) is amended as follows: 

13 (1) In subseetion (a)-

14 (A) in the matter preceding paragraph 

15 (1)-

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

(i) by striking "ercdit, savmgs, aud 

other serviees" and inserting "eredit, ineluding the usc of innovative credit seoring 

models, savings, financial technology, finaneial literacy, insurance, property rights, 

and other services"; and 

(ii) by striking "microfinance and mierocntcrprisc elicnts" and inserting "miero, 

small and medium-sized enteq)l·ise elients"; 
206


29812d-11.eps

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

11 

(B) in paragntph (1), by ,;triking "mierofinance and microenteq)l·ise clients" and inserting "mi(~ro, small aml medium-sized enterpri,;e 

clients, particularly those clients owned, managed, and controlled by women"; 

(C) in paragraph (2)-

(i) by striking "microenterprises" and 

inserting ''mi(~ro, small and medium-sized 

enteqJrises"; and 

(ii) by inserting "acquire rnited 

States goods and services," after 'Tnited 

States markets,"; 

(D) in paragraph (8)-

(i) by striking "microfinance and nn-

(~roenterpri,;e institution,;" aml inserting 

''financial intermediaries''; 

(ii) by striking "microfinance and nncroenterprise clients" and inserting "micro, 

small and medium -sized enterprises"; and 

(iii) by striking "and" at the end: 

(E) in paragraph ( 4)-

(i) by striking "microfinance and nncroenterprise clients and iustitutions" aud 

inserting "micro, small and medium-sized 
207


29812d-12.eps

12 

enterprises, finan<~ial intermediaries, and 

2 capital markets"; and 

3 (ii) by striking "the poor aml very 

4 poor." aud iusertiug "the poor and very 

5 poor, especially women;"; and 

6 (11') by addiug at the end the followiug: 

7 '' ( 5) assistance for the purpose of promoting 

8 the e<~<momie empowerment of women, induding 

9 through increased access to financial resources and 

10 imprm~ng property rights, inheritance rights, and 

11 other legal protections; and 

12 "(G) assistanee for the purpose of scaling up 

13 evidenee-hased graduation approaehes, whieh indude 

14 targeting the very poor and households in ultra-pov15 erty, <~onsumption support, promotion of savings, 

16 skills training, and asset transfers.". 

17 ( 2) In subsection (b)-

18 (A) in paragraph ( 1) to read as follows: 

19 "(1) IN GE~ERAL.-There is authorized to be 

20 established within the Ageney an office to support 

21 the Agency's efforts to broaden and deepen loeal fi22 nancial markets, e2.1Jand aecess to appropriate finan23 cial products aud services, and support the develop24 ment of miero, small and medium-sized enteqwises. 

25 The Office shall be headed by a Direetor who shall 
208


29812d-13.eps

18 

po~~es~ tedmi(~al experti~e and ability to offer lead2 ership in the field of financial sector development."; 

3 (B) in paragraph (2)-

4 (i) in subparagraph (B)-

5 (T) by striking "USB OF CENTRAL 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

l''UNDll'\G Nl1£CHANISlV1S.-" and all 

that follows through "In order to en-

~ure" and in~erting "n~m OF CENTRAL FUNDI~G lYIECHAJ\ISMS.-In 

order to ensure"; 

(ll) by striking "the office shall" 

and all that follows through "and 

other prad.itioner~" and in~erting 

"the office shall provide coordination 

and ~upport for fiel<l-irnplernented 

programs, including through targeted 

core support for micro, small and medium-si~cd enterprises and local financial markets''; and 

(TIT) by striking clause (ii); 

(ii) in subparagraph (C)-

(I) by inserting ", particularly by 

protecting the usc and funding of 

local organizations in countries m 
209


29812d-14.eps

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

14 

whieh the Ageney invests," after "and 

sustainability''; and 

(II) by inserting '' espe(~ially 

women" after "the poor and very 

poor"; and 

(C) by striking paragraph (3). 

(:3) In subsection (c)-

(A) by striking "all mi(~roenterprise resources" and inserting "all micro, small and 

medium-sihed enterprise resources"; and 

(B) by striking "clicuts who arc" aud all 

that follows and inserting "activities that reach 

the very poor, and 50 pen~ent of all small aml 

medium-sized enterprise resources shall be targeted to aetivities that reaeh ente11Jrises owned, 

nmuagcd, and controlled by women.''. 

17 (c) MONITORING SYSTEJVI.-Section 25:3(b) of the 

18 l<'orcign Assistance Act of 19(-)1 (22 U.S.C. 2211b(b)) is 

19 amended20 (1) m paragraph (1 ), by inserting ", including 

21 goals on a gender clisaggregatecl basis, such as im22 provements in emplo:yment, access to financial serv23 wcs, enterprise development, caruings aud control 

24 over income, and property and land rights," after 

25 "performance goals"; 
210


29812d-15.eps

15 

(2) in paragraph (2), by striking "indude per2 formance indicators" and all that follows through 

3 "the aehievement" and inserting "im~oq1orate Agen4 cy planning· and reporting· processes and indicators 

5 to measure or assess the achievement"; and 

6 (3) by striking paragraph (4). 

7 (d) POvERTY MEASl~REME~T METHODS.-Section 

8 254 of the Foreign Assiste:nwe A(~t of 1961 (22 U.S.C. 

9 2211c) is amended to read as follows: 

] 0 "SEC. 254. POVERTY MEASUREMENT METHODS. 

11 "The Administrator of the Agcucy, iu consultation 

12 ''~th financial intermediaries and other appropriate orga13 nizations, should have in plaee at least one methocl for 

14 implementing partners to use to assess poverty levels of 

15 their (mrrent im~oming or prospeetive dients. ". 

16 (c) 1\DDl'l'lONAL AUTHOlU'l'lES.-Scction 255 of the 

17 Foreign Assistance Act of 1961 (22 U.S.C. 2211d) is 

18 amcndcd19 ( 1 ) by striking "assistance for microenteqJrise 

20 development assistance" and inserting "development 

21 assistance for micro, small and medium-sized enter22 prises": and 

23 (2) by striking "and, to the extent applicable" 

24 and all that follows and inserting a period. 
211


29812d-16.eps

16 

(f) MICROENTERPRISE DEI7ELOPMEKT CREDITS.-

2 Section 25G of the Foreign Assistance Act of 19G1 (22 

3 U.S.C. 2212) i~ amemled4 ( 1) in the section heading, by striking "MICR0-

5 ENTERPRISE DEVELOPMENT CREDITS" and in6 serting "DEVELOPMENT CREDITS FOR MICRO, 

7 SMALL AND MEDIUM-SIZED ENTERPRISES"; 

8 ( 2) in suh~ed,ion (a)-

9 (A) in paragraph ( 1), by striking "micro-

] 0 and small enterprises" and inserting "micro, 

11 small and medium-si11ed enterprises"; and 

12 (B) in paragraph (2), by striking "micro13 enterpri~e~" and in~erting "miero, ~mall and 

14 medium-sized enteqJrises"; 

15 ( 8) in suh~ed,ion (b), in the matter pre(~eding 

16 paragraph ( 1), by insetting "and other financial 

17 services" after "credit"; 

18 ( 4) by striking "microenterprise households" 

19 each place it appears and inserting "micro, small 

20 and medium-si:1.ed enterprises and households"; and 

21 ( 5) by striking "microfinance institutions" each 

22 place it appears and inserting ''financial inter23 mediaries". 
212


29812d-17.eps

17 

(g) UNITED STATES }1ICROFINA1\CE LOAN FACIL2 ITY.-Section 257 of the Foreign Assistance Act of 1961 

3 (22 U.S.C. 221:1) is arnended4 ( 1) m the section headiug, by striking 

5 "UNITED STATES MICROFINANCE LOAN FACIL6 ITY" aud iuserting "UNITED STATES MICRO, 

7 SMALL AND MEDIUM-SIZED ENTERPRISE LOAN 

8 FACILITY'': 

9 ( 2 ) in subsection (a)-

10 (A) by striking "United States Micro11 finauce Loau 11'acility" and iuserting "C nited 

12 States Micro, Small and Medinm-Si11ed Enter13 prise Loan Faeility"; and 

14 (B) by striking "United States-supported 

15 instituti<ms'' and inserting 

16 "C nited States-supported finaucial iuter17 mediaries"; 

18 (3) in subsectiou (b), by striking 'Tnited 

19 States-supported microfinance institutions" each 

20 place it appears and inserting "United States-sup21 ported financial intermediaries"; 

22 ( 4) by striking "microfinance institutions" each 

23 place it appears and insertiug "financial iuter24 mediaries''. 
213


29812d-18.eps

18 

(h) CONTE~TS OF REPORT.-8uhsed,ion (h) of se(~-

2 tion 258 of the Foreign Assistance Act of 1961 (22 U.S.C. 

3 2214) is amended to read as follows: 

4 "(b) CO~TENTS.-'l'o the extent practicable, the re5 port should contain the following: 

6 " ( 1) lnformatiou about assistance provided 

7 under section 252, inc.luding8 "(A) the amount of eaeh gnmt or other 

9 form of assistance; 

10 "(D) the name of each intermediary and 

11 implcmeuting iustitution receiving assistauce; 

12 "(C) the name of each country receiving 

13 assistan(~e; and 

14 "(D) the methodology used to ensure com15 pliam~e with the targeted assistanee reqmre16 mcnts in subsection (c) of such section. 

17 " ( 2) The percentage of assistance provided 

18 under section 252 disaggregated by income level, in19 eluding for the very poor, and gender. 

20 "(3) The estimated number of individuals that 

21 received assistance provided under section 252 

22 disaggregated by income level, inc.luding for the very 

23 poor, and gender, and by type of assistauce, includ24 ing loans, training, and business development serv25 1ces. 
214


29812d-19.eps

19 

" ( 4) The re~mlts of the monitoring system re2 quired under section 253. 

3 " ( 5) Information about any method in plaee to 

4 assess poverty levels under section 254.". 

5 (i) DRFTNTTTONS.-Section 259 of the Foreign As6 sistance Act of 1961 (22 U.S.C. 2214a) is amended7 (1) in paragraph (3), by striking "Committee 

8 on International Relations" and inserting "Corn9 mittee on Foreign Affairs"; 

10 (2) in paragTaph (4), by striking "microenter11 prises" and inserting "micro, small and medium12 si7.ed enterprises"; 

13 (8) in paragraph (G)-

14 (A) in subparagraph (E), by striking "nli15 eroente11Jrise institution" and inserting "rnim'o, 

16 small and medium -si11ed enterprise institution"; 

17 and 

18 (B) in subparagraph (11'), by striking "nli19 croenteqJrise institution" and inserting "finan20 cial intermediary": 

21 ( 4) in paragraph ( 7) to read as follows: 

22 "(7) MICRO, SJVIALL ~'L'JD MEDIC\1-SIZED EN23 'l'ERPlUSE 1.:--.rS'l'l'l'U'l'lON.-The term 'micro, small 

24 and medium-sized enteqJrise institution' means an 

25 entity that provides sen~ces, including finance, 
215


29812d-20.eps

20 

training, or business development servi(~es, for rnim'o, 

2 small and medium-sized enteq)rises in foreign coun3 tries."; 

4 ( 5) in paragraph ( 8) to read as follows: 

5 "(8) FTNANCTAJJ TNTRR!VrEDTi\TCi'.-The term 'fi6 nancial intermediary' means the entity that acts as 

7 the intermediary between parties in a financial 

8 trans~wtion, sueh as a bank, (~re(lit union, investment 

9 fund, a ~village savings and loan group, or an institu10 tion that provides financial services to a micro, small 

11 or medium-si:,-;ed enterprise."; 

12 (G) by striking paragraph (9): 

13 (7) by redesignating paragraphs (10) through 

14 (14) as paragraphs (9) through (1:3), respectively; 

15 (8) in paragraph (9) (as redesignated), by strik16 ing "of microcntcrprise development"; 

17 (9) in paragraph (10) to read as follows: 

18 "(10) PRAC'l'l'l'lONJ<;R INS'l'l'l'U'l'IOJ\".-'l'hc term 

19 'practitioner institution' means a not-for-profit enti20 ty, financial intermediary, telecommunications firm 

21 Yvith a mobile money platform, a village and savings 

22 loan group, or any other entity that provides senices 

23 authori:,-;ed under section 252 that benefits m1cro, 

24 small and medium-sized enteqwise clients.": 

25 (1 0) in paragraph (12) (as redesignated)-
216


29812d-21.eps

21 

(A) in the heading, hy striking "r~ITED 

2 STATES-SUPPORTED MICRO FINANCE INSTITU3 TIOK" and inserting "UKITED STATES-STTP4 POR'l'BD FINANCIAL 11'\'l'ERNlEDlARY"; and 

5 (D) by striking "United States-supported 

6 microfinance iustitution" and iuserting 'Trrited 

7 States-supported financial intermediary"; 

8 (11) in subparagntph (B) of paragTaph (18) (as 

9 redesignated) to read as follows: 

10 "(D) living below the International Poverty 

11 Line, as defiued by the lnternatioual Bank for 

12 Reeonstruction and Development and the Inter13 national Development Assoeiation ( eolledively 

14 referred to as the '\Vorld Bank').". 

15 (j) TECHNICAL AND CO~FORlVIINCt AlVIEKDME~TS.-

16 Title Vl of chapter 2 of part l of the Poreign Assistanee 

17 Aet of 1961 is amended as follows: 

18 (1) ln the title heading, by striking "SllCR0-

19 ENTERPRISE DEv'ELOPMEKT ASSISTANCE" 

20 and inserting "DEv'FJIJOPMENT ASSISTANCE 

21 FOR MICRO, SlVlALL AND MEDIUM-SIZED 

22 ENTERPRISES". 

23 (2) In the heading for subtitle C, by striking 

24 "UKITED STATES MICRO FINANCE LOAN FACILITY" 
217


29812d-22.eps

22 

and in~eliing 'TNITED STATES MICRO, SMALL AND 

2 MEDIUM -SIZED MICRO FINANCE LO~~'\ FACILITY". 

3 SEC. 5. REPORT AND BRIEFING BY UNITED STATES AGEN4 CY FOR INTERNATIONAL DEVELOPMENT. 

5 (a) lt\ GENRRAh-Not later than one year after the 

6 date of the enactment of this Act, the Administrator of 

7 the r nited States Agency for International Development 

8 ~hall provide a briefing and ~ubmit to the Committee on 

9 Foreign Affairs of the House of Representatives and the 

10 Committee on Foreign Relations of the Senate a report 

11 on the implementation of this Act and the amendments 

12 made by this Act, including actions to improve the gender 

13 polieie~ of the 1~ nited States Ageney for International De14 velopment pursuant to section :3. 

15 (h) PUBLIC AVAILABILITY.-The report re(plired 

16 uuder paragraph (1) shall be posted and made available 

17 on a te:J<.-t-basecl, searchable, and publicly-available internet 

18 website. 

19 SEC. 6. REPORT BY COMPTROLLER GENERAL OF THE 

20 UNITED STATES. 

21 (a) IN GE~ERAL.-Not later than two years after the 

22 elate of the enactment of this Act, the Comptroller General 

23 of the U uited States shall submit to the Committee ou 

24 Foreign Affairs of the House of Representatives and the 

25 Committee on Foreign Relations of the Senate a report 
218


29812d-23.eps

28 

on !levelopment a~~istanee for miero, ~mall aml medium2 sized enterprises administered by the United States Agen3 ey for International Development. 

4 (b) lVL~rTJ<JRS TO BB lNCLUDJ!JD.-'l'he report re5 quired under subsection (a) shall include an assessment 

6 of the following: 

7 ( 1) \\7hat is lmmvn about the impact of such de8 velopment a~~istanee on the eeonomies of developing 

9 countries. 

10 (2) The extent to which such development as11 sistauce is targeting women aud the very poor, m12 eluding what is knmvn about how such development 

13 a~~i~tanee benefit~ women. 

14 ( 3) The extent to which the United States 

15 Agen(~y for International Development ha~ develope!l 

16 a methodology used to ensure compliance with the 

17 targeted assistance requirement in section 2 52 (c) of 

18 the J<'oreigu Assistance Act of 19til, as amended by 

19 section 4 of this Act. 

20 ( 4) The monitoring system requirements in sec21 tion 25:3(b) of the Foreign Assistance Act of 1961, 

22 as amended by section 4 of this Act, including the 

23 quality of such monitoring system. 
219

Chairman ROYCE. And I now recognize myself to speak on today’s business. 

So, first, we have the Export Control Reform Act of 2018. This 

is a bipartisan bill that would replace the outdated Export Administration Act of 1979, which has been in lapse for the last quarter 

century. And it would replace it with a permanent modern export 

control authority. So, obviously, this step is long overdue. 

Crucially, the bill closes gaps in our export controls that could 

permit transfers of cutting-edge technology like artificial intelligence and advanced semiconductors to potential adversaries such 

as Beijing. It also ensures that transfers of sensitive manufacturing 

knowhow, including through joint ventures, are subject to more rigorous export controls. This act mandates an urgent effort to idenVerDate 0ct 09 2002 15:06 May 11, 2018 Jkt 000000 PO 00000 Frm 00223 Fmt 6633 Sfmt 6633 Z:\WORK\_FULL\041718M\29812 SHIRL

29812i.eps
220

tify and appropriately control critical emerging technologies, technologies that are not currently subject to export controls, but which 

could be essential to our U.S. national security. Together with 

SIFIs reforms, this bill will enable the U.S. to remain a leader in 

innovation, strengthen our industrial base, and protect technologies 

essential to national security. 

Next, we consider the bipartisan H.R. 5480. This is the Women’s 

Entrepreneurship and Economic Empowerment Act. Women in developing countries around the world face binding constraints to entrepreneurship and economic participation. So, we have today over 

1 billion women that are left out of the formal financial system, 

and that leaves them without access to savings or credit or insurance or basic property rights. 

What this legislation does is expands USAID’s microenterprise 

assistance authority to include support for small and medium-sized 

enterprises which create four out of every five jobs in emerging 

markets. When women exert greater influence over household finances, economic outcomes for families improve and, obviously, 

childhood survival rates go up. Food security and educational attainment are increased. 

This isn’t just good for local communities in these developing 

countries. Achieving global gender parity in economic activity could 

add tens of trillions of dollars to annual GDP growth around the 

planet by 2025. This helps us. 

Next, we have Chairman Smith’s H.R. 5129. This is the Global 

Food Security Reauthorization Act of 2018. Last Congress, we came 

together in a bipartisan way to enact the Global Food Security Act. 

Since enactment in 2016, the Global Food Security Strategy has 

helped 11 million small farmers gain access to new technologies. It 

has unlocked $2.7 billion in loans, $830 million in direct private 

sector investment, and it has reduced poverty by an average of 19 

percent in the focus areas. These programs have also allowed us to 

reach 27 million children under the age of 5 with vital nutrition assistance. And we did this without increase spending. H.R. 5129 

continues this good work by extending the existing authorization 

for an additional 2 years. 

Finally, I want to thank Representatives Castro and Meadows 

for introducing H.R. 5274. This is the Global Electoral Exchange 

Act. Healthy societies depend on elections that accurately reflect 

the decision of voters. The world has a shared stake in the integrity of election mechanisms. The nuts and bolts of how people cast 

their votes and how these votes are counted free from manipulation 

is the subject here, and this bill would strengthen this work by authorizing the Secretary of State to run exchanges to better equip 

those who organize and administer elections in their home countries. 

And I now recognize the ranking member for his remarks. 

Mr. ENGEL. Thank you, Mr. Chairman. Thank you very much for 

calling this markup. We have four good measures before us today, 

and I am happy to support them all. As always, I want to thank 

all of our members on both sides of the aisle for their hard work. 

Mr. Chairman, I want to thank you for putting forward the Export Control Reform Act. As you mentioned, it has been almost four 

decades since the law on export controls was revised. The old law 

221

is filled with out-of-date provisions that simply don’t reflect our 

current national security priorities. It also expired in 2001. 

So, for the last 17 years, the legal authority for regulating sensitive exports has been based on emergency authority contained in 

Executive orders. That is why this bill is so essential. It updates 

the export control system to reflect today’s reality of the way these 

technologies are developed and transferred in global trade. It provides a new approach to help mitigate the risks of sensitive technologies falling into the hands of our adversaries, and it reasserts 

the role of Congress in addressing the important national security 

priority. I am proud to be the lead Democratic cosponsor of this legislation and I urge all members to support it. 

Next, I want to turn to the Global Food Safety Reauthorization 

Act. This is another great example of bipartisan common-sense cooperation on vital foreign policy issues. I am an original cosponsor, 

and I am pleased to see this bill on the agenda. 

Nearly 800 million people around the world live without the certainty that their families will have enough to eat. Underfed populations are less productive and more vulnerable to disease. Without 

reliable access to food, it is much harder for a country to achieve 

stability and prosperity. So, we have an interest and a moral obligation in tackling this problem as part of our foreign policy. 

This bill reauthorizes the successful Global Food Security Act 

which codified the Feed the Future Program. We are already seeing 

some excellent results from this program, a 26 percent drop in 

child stunting. Nine million more people are above the poverty line; 

1.7 million more families are living without hunger, and $2.6 billion earned by Feed the Future farmers in new agricultural sales. 

This is a great bill, and I thank the drafters, Representative Chris 

Smith and Betty McCollum, for their hard work, and encourage all 

my colleagues to support it. 

Fighting global poverty is a critical issue that our committee 

faces, and one of the most effective ways we can improve global 

prosperity is to empower women throughout the world. That brings 

me to the next measure for today’s markup, the Women’s Entrepreneurship and Economic Empowerment Act. This is important. It is 

a very important piece of legislation, introduced by Chairman 

Royce and Congresswoman Frankel. It expands U.S. development 

policy to empower women entrepreneurs in developing countries. 

Women and girls are powerful, and we know what happens when 

that power and potentials are unleashed. Communities thrive. 

Local and global economies grow. Societies prosper and become 

more inclusive and equitable. If women were full participants in 

the global economy, we would see an additional $28 trillion in 

growth in global GDP by the year 2025. 

Women in developing countries face a series of gender-specific 

constraints to moving up the economic ladder, including lack of access to financial services. Women-owned small- and medium-sized 

enterprises face almost a $300 billion credit gap. The Women’s Entrepreneurship and Economic Empowerment Act works to address 

that disparity by expanding U.S. development assistance to reach 

those small- and medium-sized enterprises. 

This bill is a welcomed step toward improving women’s economic 

prospects, but there remain other barriers to women’s economic 

222

empowerment, including issues related to maternal and reproductive health. There is a well-documented link between improved access to contraception and women’s economic empowerment. Women 

who are able to plan their families are more likely to receive an 

education, raise their standards of living, and climb out of poverty. 

These benefits aren’t limited to a woman herself. In homes where 

parents have the ability to decide the number of children they 

have, their children tend to be healthier, do better in school, and 

grow up to earn higher incomes. 

I am pleased to be an original cosponsor of this, and I urge all 

of our members to join me in supporting it. And I hope that we can 

build upon the good work and address all the barriers that women 

and girls face, so that they can achieve full economic empowerment. 

And lastly, I turn to the Global Electoral Exchange Act, introduced by Representatives Castro and Meadows, which would establish exchange programs at the State Department that focus on 

strengthening the electoral mechanisms around the world. It is in 

America’s interest that we promote credible elections, and having 

exchange programs to share best election practices is an excellent 

idea. We should be doing all that we can be doing to promote democracy. 

I support this bill, along with the other measures we are considering today, and I again thank all our members on both sides. 

And I yield back, Mr. Chairman. Thank you. 

Chairman ROYCE. Thank you. 

We go now to Mr. Chris Smith, the author of the Global Food Security Reauthorization Act. 

Mr. SMITH. Thank you very much, Mr. Chairman. Thank you, 

Mr. Engel, for your strong support for this as well. Both of you are 

cosponsors, as is Betty McCollum, who is the principal Democrat 

cosponsor, and my good friend and colleague, Karen Bass, who is 

also one of the leading original sponsors as well. Thank you. 

This is bipartisan legislation that has worked and this is the reauthorization to continue, and, hopefully, to bring additional emphasis to some of the areas that we have missed in the original enactment of this landmark legislation. 

I would remind my colleagues that there are 800 million hungry 

people in the world today. Not only do children still die from malnutrition, we know that, because of malnutrition, those children 

are subjected to other sicknesses, opportunistic infections. Malaria 

takes an even more devastating toll on them because of their malnutrition. 

Feed the Future, this legislation, and the underlying program 

which began in the Bush administration, was strengthened and expanded in the Obama administration, and has now been continued 

and strengthened under the leadership of President Trump, and 

continues to reach out to the most vulnerable. As you pointed out, 

Mr. Chairman, we have seen a significant drop in poverty, some 19 

percent, and the drop in child stunting. And as I travel throughout 

the world, particularly in Africa and places like Guatemala, which 

has had a huge stunting problem, they have joined the effort to 

provide nutrition to young people, especially mothers and mothers 

carrying children. Stunting has dropped significantly. 

223

And why is stunting so bad? Obviously, the impact it has on the 

individual, their diminished capabilities intellectually, and the like. 

If the food and nutrition is there, especially in the first 1,000 days 

from conception to the second birthday, and then, hopefully, God 

willing, it continues, we have stronger, more resilient children and, 

then, young adults and, then, adults to live out a life that is far 

more fruitful than when they are carrying a number of sicknesses. 

This authorization bill emphasizes the importance of de-worming 

initiatives. Among the neglected tropical diseases, intestinal worms 

account for nearly 80 percent of neglected tropical disease prevalence, affecting close to 1 billion people all over the world. These 

worms undercut our nutrition interventions and can lead to death 

by malnutrition or lifelong stunting as well. We need to combine 

our nutrition interventions not only with coordinated de-worming 

campaigns, but also with water sanitation and health interventions 

that change people’s behavior. WASH training helps ensure people 

limited exposure to worms such as by washing and peeling vegetables or something as simple as giving children shoes to wear if they 

walk on worm-infected soil, so that they don’t get sick again. 

Again, I will ask unanimous consent that my full statement be 

made a part of the record. But this legislation I think will save 

many lives. And I thank you again for bringing it to the committee 

today. 

Chairman ROYCE. We go now to Mr. David Cicilline of Rhode Island. 

Mr. CICILLINE. Thank you, Mr. Chairman. Thank you to you and 

to the ranking member for holding this markup today of these bipartisan measures. As always, I appreciate the way our committee 

works together across the aisle in moving important reforms and 

authorizations. 

I am pleased to support H.R. 5129, the Global Food Security Reauthorization Act, which will extend Feed the Future until 2021, 

ensuring that the United States Government remains at the forefront of fighting global hunger by providing assistance to millions 

of hungry and vulnerable people around the world in order to build 

sustainable food systems, improve resilience, expand agricultural 

markets, and improve nutrition for local communities. The Feed 

the Future Program has had a remarkable success, as outlined in 

its 2016 progress report showing statistically-significant declines in 

poverty in 11 out of 17 focus countries. 

I am also pleased to join with my colleagues, Congressman Smith 

and Congresswoman McCollum, as well as the chair and ranking 

member, as a cosponsor of this important legislation, and I urge my 

colleagues to support it. 

I am also pleased to support H.R. 5480, the Women’s Entrepreneurship and Economic Empowerment Act, introduced by Chairman Royce and Congresswoman Frankel. Though the United 

States already does a lot of incredible work to support the empowerment of women and girls around the world, this legislation 

would expand programs to ensure that all USAID projects and activities are shaped by a gender analysis and gender equality, and 

female empowerment is integrated throughout the agency’s program cycle. 

224

This bill will expand USAID’s microenterprise development assistance to include small and medium enterprises, particularly 

those owned, controlled, and managed by women, and will institute 

requirements, so that we can track the implementation of this bill. 

I strongly support these efforts and thank my colleagues for their 

work on behalf of women and girls. 

And finally, I am pleased to support H.R. 5274, the Global Electoral Exchange Act, introduced by my friend and colleague, Congressman Castro. This smart legislation will create an exchange 

program for election officials in order to exchange best practices between the United States and other countries. At a time when 

democratic systems are under attack across the globe, this legislation will help educate election officials on best practices for administering an election. I am also a proud cosponsor of this legislation 

and urge my colleagues to support it as well. 

I thank you, again, to all of my colleagues for working on these 

important pieces of legislation, and thank you again to you, Mr. 

Chairman and the ranking member, for holding this markup today. 

And with that, I yield back. 

Chairman ROYCE. We go now to Ileana Ros-Lehtinen of Florida. 

Ms. ROS-LEHTINEN. Thank you so much, Mr. Chairman. 

It has been a long time since Congress has been able to reform 

some of our outdated laws. The chairman and ranking member’s 

Export Control Reform Act is a much-needed update to the old Export Administration Act of 1979. And while I do applaud this measure, as well as your efforts to reestablish strong congressional oversight of export controls, I do wish that we had moved away from 

the current rescission process. The bill allows for a rescission of a 

country’s designation as a state sponsor of terror (SST) to continue 

to operate under the current mechanism. This allows for the administration, any administration, to remove a country from the 

SST list and only by passing a joint resolution of disapproval can 

Congress block this decision, meaning we need a veto-proof majority, very difficult to do. 

And I look back at the most recent decisions that removed SST 

countries, Cuba and North Korea, and think that Congress was 

really powerless to prevent these moves. We are missing an opportunity here and are, again, allowing the administration too much 

leeway. We have seen that some administrations will bargain an 

SST designation for next to nothing, and we will have little to prevent that. I am dismayed that we aren’t giving ourselves the proper 

oversight over SST designations, and I hope, Mr. Chairman and 

Ranking Member, that we can find a way to modify this mechanism going forward. 

I would also like to express my strong support for my colleague 

Chris Smith’s bill, the Global Food Security Reauthorization Act. 

With nearly 800 million hungry people worldwide, addressing the 

challenge of food insecurity is both a moral and national security 

imperative. Hunger is a leading factor driving so much of the instability and violence that we see in the world today. And by investing 

in stronger food systems, we can help develop more resilient communities that are able to withstand these pressures. 

We need proper oversight and a strategy that makes sure USAID 

and its partners are fully integrated in achieving U.S. interests. 

225

This bill ensures that strategy remains in place, and I offer the bill 

my strong support. Congrats, Mr. Smith. 

I also want to speak in support of my friend Joaquin Castro’s 

Global Electoral Exchange Act. At a time when bad actors such as 

Russia have been proven to meddle in other nations’ elections, including our own, it is more important now than ever that we do 

what we can to ensure the validity and security of our electoral 

process. This bill is a tool that we can use to not only advance and 

protect our interests by ensuring that outside actors cannot work 

to manipulate election results, but it also serves to advance our 

democratic ideals. 

I do want to note that elections alone do not make a democracy. 

We saw that last month in my native homeland of Cuba with the 

sham selections. Really, there were no elections set up by the Castro regime, and we are set to see the same fraud taking place in 

Venezuela next month with Maduro’s sham snap elections. And 

with this farce of a transition of power set to happen tomorrow in 

Cuba, this bill serves to remind us that the people of Cuba are still 

denied their God-given rights. Until there are free, fair, and transparent elections in Cuba, in Venezuela, or anywhere in the world, 

we need to continue to support the people whose rights are being 

denied, which is why initiatives such as this one are so important 

in promoting sound election practices around the world. 

And finally, Mr. Speaker—Mr. Chairman, I elevated you or demoted you, I am not sure—I also support your bill with Ranking 

Member Engel, the Women’s Entrepreneurship and Economic Empowerment Act. Sadly, women continue to face insurmountable barriers that deter their availability to becoming full and equal members of society. This bill seeks to update USAID policy to chip away 

at those barriers, improve women’s working environments, support 

their property rights, and aid them in providing access to greater 

economic opportunity. It is our responsibility to empower women, 

and this bill does so through our USAID programs. 

Congratulations, Mr. Chairman and Ranking Member, for a fine 

set of initiatives that we can all support. 

Chairman ROYCE. Well, I thank the chairman emeritus, and I 

recognize her for her longstanding support for strengthening congressional oversight over U.S. foreign policy and for combating terrorism. 

I would make a few points on the Export Controls Reform Act, 

where it does move in the direction that you want to see, maybe 

not as robustly as you wanted to see it. But what it does do is it 

strengthens the congressional oversight over the delisting of a state 

sponsor of terrorism. And it does that really by quadrupling the 

time by fourfold that a designated country has got to refrain from 

sponsoring terrorism before being delisted. So, it is no longer 6 

months; it is 24 months. I think this gives us a chance for much 

better evidence that a country has truly abandoned terrorism, but 

it also doubles the time that Congress has to review the proposed 

removal of the country from the list. So, it goes from 45 days to 

90 days, and that improves our oversight. And it, I think, gives us 

much more time to reject a removal if we find that objectionable. 

So, it helps in that way as well. 

226

But one of the changes that I think will work best for us and the 

committee is that it requires that the administration notify and 

brief Congress at the front end, when they initiate a review of a 

designated country’s potential removal from the list. So, I think all 

of that puts us in a better position than we are now, and I did 

want to share that with you. And I understand your plight. 

Ms. ROS-LEHTINEN. Well, thank you very much. Thank you, Mr. 

Chairman. 

Chairman ROYCE. We go now to Lois Frankel from Florida, the 

cosponsor of our Women’s Entrepreneurship and Economic Empowerment Act. 

Ms. FRANKEL. Thank you, Mr. Royce and Mr. Engel, for your extraordinary bipartisan leadership. And I want to thank my colleagues for their good work on all these bills, which I support. 

I want to specifically focus my remarks on the Women’s Entrepreneurship and Economic Empowerment Act, which I am honored 

to be one of the original cosponsors. The bill recognizes that, when 

women around the world are educated and have access to the tools 

for economic success, their communities are safer, stronger, and 

more peaceful, and so is the world. 

Living in the United States where there is so much opportunity, 

it is hard to comprehend the hardships and obstacles that girls and 

women face in so many parts of the world. I think of Fatime, a 

young girl born in Mali. At just 8 months she may be cut, subjected 

to general mutilation. By age 12, her father may sell her for marriage to a man she has never met. Or Nasha, a young woman in 

Nigeria, desperate for an education, who has to walk miles fearful 

of sexual violence or kidnapping just to get to school. Or Camilia, 

a grown woman in Pakistan who dreams of starting her own business and being able to care for her family, but discriminatory laws 

prohibit her from owning property or being able to access credit. 

She is among the 1 billion women excluded from the formal financial system. 

And millions of young girls face child marriage, sexual assault, 

human trafficking, genital mutilation, femicide. I could go on. One 

in three suffer gender-based violence. Access to health care and 

education is limited. Laws in their countries restrict their employment, property rights, access to credit and other financial resources. 

So, it is not surprising that women and girls are the majority of 

the world’s poor. Now here’s the thing: Because of so many, too 

many cruel and unfair practices against girls and women, the 

world is poorer, too. According to McKinsey Global Institute, a 

leading international private sector think tank, if we change this 

equation and advance women’s equality, we could add $28 trillion 

to the global GDP in just 7 years. 

And there is an undeniable link between women’s economic success and global prosperity, and this excellent bill makes it a U.S. 

development policy to reduce gender disparities related to economic 

opportunity; to strive to eliminate gender-based violence; to support 

women’s property rights, and increase the capability of women and 

girls to determine their own future. The bill requires that 50 percent of USAID’s resources for small and medium-sized enterprises 

be targeted to reach enterprises owned and managed and conVerDate 0ct 09 2002 15:06 May 11, 2018 Jkt 000000 PO 00000 Frm 00230 Fmt 6633 Sfmt 6633 Z:\WORK\_FULL\041718M\29812 SHIRL
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trolled by women. It codifies USAID’s practice of shaping policy 

and activities through a gender analysis which should examine 

gender differences in access to resources and opportunities, different impacts of policy and programs on men and women, and provide recommendations to narrow the gender gaps and improve the 

lives of women and girls. 

And to ensure that our development assistance is reaching 

women, this legislation mandates that USAID track and measure 

improvements in women’s economic empowerment, including employment, access to financial services, enterprise development, 

earnings and control over income, and property and land rights. In 

addition, this legislation expands the scope of development assistance for microenterprises to micro-, small-, and medium-sized enterprises to reflect the change in the field. 

Investing in women’s empowerment is not only humane, it is 

good common sense, because when women exert greater influence 

over household finances, economic outcomes for families improve, 

childhood survival rates increase, food security and educational attainment also increase. Women also tend to place a greater emphasis on household savings, which improves families’ financial resiliency. When girls and women do better, their nations do better. 

Women are potent forces for peace and prosperity. When they succeed, the world will succeed. 

And I thank my colleagues for joining me in support of this important bill. 

And I yield back. 

Chairman ROYCE. Thank you. 

We now go to Joe Wilson of South Carolina. 

Mr. WILSON. Thank you, Mr. Chairman. 

I appreciate Chairman Ed Royce and Ranking Member Eliot 

Engel for their bipartisan efforts to bring the Export Control Reform Act before the committee. This bill helps protect industry and 

commerce in the United States by preventing technological theft 

while reducing the risks of other countries misusing controlled 

items and technologies for nefarious purposes. 

Importantly, this bill would replace the Export Administration 

Act, which lapsed in 2001. While export controls have been maintained through emergency powers granted to the President, this 

legislation would update and strengthen our export controls to 

maintain the pace for modern international and digital trade without harming trade. 

Foreign investment in the United States creates economic opportunity, but it also has created gaps in our technological security. 

Currently, foreign-owned companies in the United States often do 

not need a license to receive dual-use technology normally subject 

to such controls when exported abroad. This bill corrects and updates this flaw for the modern era. 

This legislation also would adapt to the advances in technology 

by mandating an interagency process to identify emerging technologies that need to be protected by export controls, which will 

allow export controls to stay up-to-date. This bill protects American 

technology from theft and abuse and ensures that our export control system remains robust and effective. 

228

I am grateful to support and cosponsor H.R. 5040, the Export 

Control Reform Act of 2018, and urge its passage. 

Additionally, as a former election observer for the International 

Republican Institute to Bulgaria, and as a host for election observation by Ambassador Peter Burian of Slovakia during the Republican primary for President, I especially appreciate the Global Electoral Exchange Act, by Congressman Joaquin Castro, and urge its 

passage. 

I yield back. 

Chairman ROYCE. We go now to the author of the Global Electoral Exchange Act, Joaquin Castro of Texas. 

Mr. CASTRO. Thank you, Chairman Royce and Ranking Member 

Engel, for bringing these measures before us today, and for your 

leadership on this committee. I want to say thank you to all the 

members whose bills are before us today for your hard work. 

The bills considered today, including the Export Control Reform 

Act, Global Food Security Reauthorization Act, and Women’s Entrepreneurship and Economic Empowerment Act, address important issues in the world, and I am pleased to support all of them. 

Included in this package is a bill I authored with Representative 

Mark Meadows of North Carolina, before the committee today, the 

Global Electoral Exchange Act, or H.R. 5274. In the last decade, we 

have seen democracies around the world in retreat, including some 

in our own backyard. This is in contrast to prior years. In countries 

around the world, democracy activists and well-intentioned leaders 

strive to create more inclusive societies, but face significant challenges, including lack of institutional knowledge of electoral processes. 

An election is a complex endeavor and an exercise a society undertakes together. It requires an engaged public, robust institutions, and a transparent, technically-sound electoral mechanism. 

Such an electoral mechanism must include a secret ballot, inclusive 

voting systems, chain of custody, neutral instructions to voters, and 

so much more of what may be considered good electoral practices. 

When these electoral mechanisms are inadequately transparent 

or technically unsound, the legitimacy of an election and its results 

are in question. We saw this firsthand in Kenya and Honduras 

over the last year, where electoral failure led to election violence 

and a questionable outcome. 

The State Department and USAID already engage in excellent 

work, in partnership with groups like the National Endowment for 

Democracy, the National Democratic Institute, International Republican Institute, and International Foundation for Electoral Systems, supporting democracy worldwide. 

This bill would establish exchange programs with other countries, administered by the State Department, for individuals involved in the conduct of elections. When we bring folks over here 

to show them how we do things and send Americans to other countries to see how elections are conducted overseas, we can have candid conversations on how all of us can improve these processes. 

These educational programs would benefit both societies abroad 

keyed on democratizing and our own States and cities right here 

in the United States. 

229

I would like to thank again my coauthor, Mark Meadows. I believe he is at an OGR hearing and can’t be here right now. But he 

and his staff put in a lot of work also, and I would like to say 

thank you and ask for my colleagues’ support on this. 

Chairman ROYCE. Thank you. 

We go now to Mike McCaul of Texas. 

Mr. MCCAUL. Thank you, Mr. Chairman, Ranking Member 

Engel. I want to thank you for holding today’s markup, and especially thank you and the other members of this committee for your 

work to advance H.R. 5480, the Women’s Entrepreneurship and 

Economic Empowerment Act. And I say that as a father of four 

daughters. 

Women make up approximately 40 percent of the world’s workforce; yet, are restricted from contributing to their economies due 

to economic barriers such as access to credit and other financial 

services. Due to this, less women are able to start or grow their 

own businesses. Research suggests that leveling the financial playing field for women could result in $28 trillion to the annual GDP 

by 2025, and that is why I would like to offer my strong support 

for this bill. 

This legislation will empower women’s entrepreneurship by expanding U.S. assistance to women-owned and -managed small- and 

medium-sized enterprises. I believe that a world in which women 

have access to the same economic opportunities as men is a world 

that will be more prosperous and more stable. So, I encourage my 

colleagues to support the passage of this measure. 

And I yield back. 

Chairman ROYCE. Thank you. 

We go to Dina Titus of Nevada. 

Ms. TITUS. Well, thank you, Mr. Chairman and Ranking Member. 

I, too, support all of these bills and think they are excellent 

pieces of legislation, and appreciate the work that their sponsors 

have done to bring them to this point. 

I would like to speak specifically, though, about the Global Electoral Exchange Act, and salute Congressmen Castro and Meadows 

for introducing this bill. I am a cosponsor of it, and I appreciate, 

also, the chairman including my amendment en bloc today. 

The Global Electoral Exchange Act will help promote best election practices through a global electoral exchange program to foster 

the growth of democracy around the world. As a member of the 

House Democracy Partnership, which works with developing democracies to strengthen their institutions, I can attest to the importance of strong electoral processes in bolstering democracy and 

promoting economic development. 

According to the World Health Organization, roughly 15 percent 

of the earth’s population has a disability and 80 percent of those 

persons live in developing countries. Inclusion of persons with disabilities is a fundamental part of democracy, and this must extend 

to the electoral process as well. Unfortunately, barriers continue to 

exist around the world that limit these folks to their full and effective participation in elections. So, therefore, they aren’t able to 

enjoy aspects of life and fulfill their potential. 

230

My amendment would ensure that the best practices shared 

through this program would also include those related to equitable 

access to polling place, voter education information, and voting 

mechanisms for persons with disabilities. By recognizing this need, 

the U.S. is continuing its role as a leader in disability accommodation in all aspects of life here at home and around the world. 

And I thank you and yield back. 

Chairman ROYCE. Thank you. 

We go to Mr. Ted Yoho of Florida. 

Mr. YOHO. Thank you, Mr. Chairman, and I appreciate you 

bringing up these important pieces of legislation, and I support 

them all. 

I want to give a strong support for the Export Control Reform 

Act. I support this legislation completely, and I would like to see 

it in the future expand to cover other forms of research, including 

biotech, including plant, animal, and medicine. These are also vital 

to national security, and I look forward to offering amendments in 

the Rules Committee and also on the House Floor when this bill 

comes up for a vote on its way to becoming a law. 

And also, to give a shoutout for H.R. 4030, the State Sponsors 

of Terrorism Review and Enhancement Act, that a lot of the portions of that are in the Export Control Reform Act, and I look forward to that piece of legislation coming up also. 

And I yield back. 

Chairman ROYCE. We will look forward to working with the gentleman on biotech and some of these other considerations that 

should be included. 

Mr. Brad Schneider of Illinois. 

Mr. SCHNEIDER. Thank you. I just want to say I am glad we have 

these bills here today. I am glad to support all of them. 

Chairman ROYCE. Thank you, Mr. Schneider. 

Any further members seeking recognition? 

Mr. Tom Garrett. 

Mr. GARRETT. Thank you, Mr. Chair. 

Again, I would echo the sentiments of our colleagues on each side 

of the aisle. Proud of each of these four pieces of legislation. 

Very briefly and specifically, on H.R. 5480, I would commend 

yourself, Ranking Member Engel, and Member Frankel. Member 

Engel said—and I will adopt fully his comments—that these actions to empower women economically will ‘‘help communities 

thrive, help economies grow, help opportunity expand.’’ I wholeheartedly agree, and I would add it will also help reduce 

radicalization, expand hope, which stymies extremist recruitment, 

and will foster a more tolerant and open society across the globe. 

Such a good bill. In other words, this act helps not only women 

across the globe, but people everywhere. And, Mr. Chairman, I 

would argue it will save many uncountable lives. 

Also, on H.R. 5040, the Export Control Reform Act, I commend 

the chair and ranking member on their ability to determine sort of 

a glaring problem that had been delayed in being addressed for 

decades. This is a good, bipartisan, and overdue reform. Just as 

Mr. Yoho referenced hopes that we talk more about biotech, et 

cetera, I understand this might not be the committee of purview, 

but I hope that this legislation will embolden us to address the 

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glaring EB-5 visa situation, which essentially were sold and allow 

four out of five of these to go to Chinese, which, once they are here, 

allows them nearly unlimited access to sensitive technology. 

Again, I commend the ranking member, the chair, and the committee as a whole for advancing these common-sense and good, bipartisan initiatives. 

Thank you, Mr. Chair. 

Chairman ROYCE. Thank you, Mr. Garrett. And I think you raise 

a point there, and we should confer with Judiciary, with Mr. Goodlatte, on that issue. 

Mr. Brad Sherman of California. 

Mr. SHERMAN. Thank you, Mr. Chairman. I want to thank you 

for working with me on an amendment to H.R. 5040, which is the 

Export Control Reform Act. I think the bill is excellent. I think the 

amendment makes it better. 

This amendment will ensure that the Department of Commerce, 

which licenses the exports of dual-use items, explicitly gathers information and takes into consideration whether a major export of 

controlled equipment or technology will have a negative impact on 

the production of items that are needed for our own national security here in the United States. 

So much of export control is that we look at a particular weapon 

system and say, should that country be trusted with that weapon 

system? But what is just as important is that we control the export 

of manufacturing equipment and technology. We export far less 

than any other major country as a percentage of our GDP. When 

an American firm sends technology and the ability to produce critical items outside the United States, we could call that as one 

small export, but it has a negative impact on our national security, 

industrial base, and our high-tech workforce. 

Even when we are exporting this material to an ally, what we 

are doing is making that ally the country that will do the manufacturing using our technology. Well, that may not be good for jobs 

and our economy, but this is not a pair of shoes. This is not a television set. When we export jobs and industrial base in the military 

sector, in the dual-use sector, we undermine our ability to produce 

what our military needs, should the case arise. Having a robust 

toy-making industry might be good for the United States. Having 

a robust industry in the area of weapon systems is critical for our 

national security. 

Not only that, but by transferring this technology and industrial 

capacity, we create a circumstance where some other country will 

determine whether the produce of that industry, whether the weapon systems that are manufactured or the dual-use items that are 

manufactured, will be exported to this or that additional country. 

Right now, when weapon systems and dual-use items are exported, 

it comes to not only the administration of this country, but often 

comes to this committee. But, if we export the manufacturing capacity, the government of Italy or the government of Japan is not 

going to be submitting reports to the United States Congress giving 

us 60 or 90 days to approve or disapprove of arms or dual-capacity 

material export. So, I think that it is important, that we look at 

the industrial base as part of our national security infrastructure. 

232

I want to take this moment, also, to voice my support for the 

other bills that are before us. I particularly want to associate myself with the comments of Ms. Frankel from Florida and her excellent work on the Women’s Entrepreneurship and Economic Empowerment Act, and associate myself with Mr. Castro’s comments 

on the importance of the Global Electoral Exchange Act and commend him for his work on that. 

Again, Mr. Chairman, thank you for working with me on this 

amendment and including it in the en bloc package, and I urge 

support of the motion. 

Chairman ROYCE. Thank you. 

I think Mr. Sherman puts his finger on the heart of the matter 

here, because the question is no longer can it be the export of individual systems on dual use; it has to be the export of the knowhow. 

And your point about making certain we have re-export controls, 

so that if we transfer it to an ally, they cannot transfer it, is equally applicable to the question of making certain that the knowhow 

itself is not transferred, in all the ways that we try to do that in 

this measure. 

And as we move forward, I just wanted to thank Mr. Sherman 

for his contributions to this overhaul. It has been a long time coming, and I think our efforts here are to identify every one of these 

examples from past mistakes and figure out how we close those 

loopholes, especially given the new technologies that are coming. 

Do any other members seek recognition? 

[No response.] 

Hearing no further requests for recognition, the question occurs 

on the items considered en bloc. All those in favor say aye. 

[Chorus of ayes.] 

All those opposed, no. 

In the opinion of the Chair, the ayes have it, and the measures 

considered en bloc are agreed to. 

And without objection, the measures considered en bloc are ordered favorably reported as amended, and staff is directed to make 

any technical and conforming changes. And the Chair is authorized 

to seek House consideration under suspension of the rules. 

That concludes our business for today. And I want to thank 

Ranking Member Engel and all of our committee members for their 

contributions and their assistance with this markup today. 

The committee stands adjourned. 

[Whereupon, at 10:56 a.m., the committee was adjourned.] 

(233)

A P P E N D I X 

MATERIAL SUBMITTED FOR THE RECORD

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29812n.eps

FULL COMMITTEE MARKUP NOTICE 

COMMITTEE ON FOREIGN AFFAIRS 

U.S. HOUSE OF REPRESENTATIVES 

WASHINGTON, DC 20515-6128 

Edward R. Royce (R-CA), Chairman 

April17, 2018 

TO: MEMBERS OF THE COMMITTEE ON FOREIGN AFFAIRS 

You are respectfully requested to attend an OPEN meeting of the Committee on Foreign 

Affairs to be held in Room 2172 of the Rayburn House Office Building (and available live on the 

Committee website at ht!p:/i\li.}Y!:V.Forel.g!lAH;'jjrs.house.!!,Q{j: 

DATE: Tuesday, April 17,2018 

TIME: 10:00 a.m. 

MARKUP OF: H.R. 5040, Export Control Reform Act of 20 18; 

H.R. 5129, Global Food Security Reauthorization Act of2018; 

H.R. 5274, Global Electoral Exchange Act; and 

H.R. 5480, Women's Entrepreneurship and Economic Empowennent Act. 

By Direction of the Chairman 
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29812m-1.eps

COMMITTEE ON FOREIGN AFFAIRS 

MINUTES OF FULL COMMITTEE MARKUP 

Day_----"T-"u""es,·d,a"-y __ Date. __ --"0""4/-"1-"-'7t'-"2"'0"-J"-8-_Room __ __::2co.l:_:72 

Starting Time _ _1!)_:05AM Ending Time 10:56Aitl 

Reccsse$ L__to ______)( __ to __ ) ( __ to______) L__to __ ) L__to __ )(_to __ ) 

Presiding Member(s) 

Chairman b"dward K. Royce 

Check all of the .fiJI/owing that app{v: 

Open Session [Z] 

Executive (closed) Session D Televised [2] 

Electronically Recordcu (taped) [2] 

Stenographic Record [2] 

BILLS FOR MARKUP: (Include hi!Lnumber(sj and lilfe(:') of legislation) 

See attached. 

COMMITTEE MEMBERS PRESENT: 

See attach elL 

NON-COMMITTEE MEMBE&'l PRESENT: 

NIA 

STATEMENTS FOR THE RECORD: (List any statements submitted for the record.) 

SFR -Mr. Christopher 11. Smith 

ACTIONS TAKEN Jn7RING THE MARKUP; ~1ttach copies of1egis/ation and amendments,) 

See markup summary. 

RECORDED VOTES TAKE:"< (FOR MARKUP): (Attach final vote rally sheet listing each member.j 

TIME SCHED1JLED TO RECONVENE ___ _ 

or 

TIME ADJOURNED IO:.'i6AM______ 
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PRESEc'vT 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

HOUSE COMMITTEE ON FOREIGN AFFAIRS 

l·'uu COMMI'ITHF MARKUP 

]\,[EMBER PRESENT MEMBER 

Edward R. Royce, CA X EliotL EngeL NY 

Christopher H. Smith. NJ X Brad Sherman. CA 

Ileana Ros-Lehtinen, FL Gregory W. Meeks, NY 

Dana Rohmbacher. CA X Albia Sires. NJ 

Steve Chabot. OH X Gerald E. Connolly, VA 

Joe Wilson, SC Theodore E. Deutch. FL 

Michael T. McCaul, TX Karen Bass, CA 

Ted Poe, TX X William Keating, MA 

Darrell Issa, CA X David Cicillinc. RJ 

Tom Marino, PA Ami Bem.CA 

Mo Brooks. AL X Lois F rankcl. FL 

Paul Cook. CA X T ulsi Gabbard, HI 

Scott Perry. PA X Joaquin Castro, TX 

Ron DeSantis. FL Robin Kelly. IL 

Mark Meadows, NC Brendan Boyle. P A 

Ted Yoho. FL X Dina Titus. NV 

Adan1 Kinzinger, IL Nonna Torres, CA 

Lee Zeldin. NY Brad Schneider, IL 

Dan Donovan, NY Tom Suozzi. NY 

James F. Sensenbrem1er. Jr., WI Adriano Espaillat. NY 

Ann Wagner, MO X Ted Lieu, CA 

Brian J. Mast. FL 

Brian K. Fitzpatrick, PA 

Francis Rooney, FL 

Thomas A. Garrett. Jr.. VA 

John Curtis. UT 
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4/17/18 Foreign Affairs Committee Markup Summary 

By unanimous consent, the Chair called up the following measures and amendments, previously 

provided to Members, to be considered en bloc 

1) H.R. 5040 (Royce), Export Control Reform Act of2018; 

a. Royce 101, an amendment in the nature of a substitute to H.R. 5040; 

i. Sherman 45, an amendment to Royce 101. 

2) H.R. 5129 (Smith), Global Food Security Reauthorization Act of2018; 

a. Smith 85. 

3) H.R. 5274 (Castro), Global Electoral Exchange Act; 

a. Castro amendment in the nature of a substitute to H.R. 5274; 

i. Titus 38, an amendment to the Castro ANS. 

4) H.R. 5480 (Royce), Women's Entrepreneurship and Economic Empowerment Act; 

a. Royce 103. 

The measures considered en bloc were agreed to by voice vote. 

By unanimous consent, the measures were ordered favorably reported, as amended, to the House, 

and the Chairman was authorized to seek House consideration under suspension of the rules. 

The Committee adjourned. 
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Statement for the Record 

Submitted by Mr. Christopher H. Smith 

Thank you Chairman Royce, for your leadership on global food security, 

including in particular for your original cosponsorship of this reauthorization as 

well as the original Global Food Security Act, and your agreeing to move this bill 

to markup so rapidly. 

The original Global Food Security Act promoted food security, resilience 

and nutrition in developing cmmtries in keeping with U.S. national security 

interests. Through agriculture-led economic development, GFSA has strengthened 

partner countries' capacity and lessened their dependence on emergency food 

assistance. lt has also improved efficiency among federal departments and agencies 

and leveraged the participation of other non-U.S. govennnental partners. 

It should be restated that GFSA 's legacy as a bipartisan success story -

legislation which solidified in law a policy that had its roots in the Bush 

Administration, was amplified by President Obama and is now being implemented 

by President Trmnp. 

Now is the time to reauthorize this landmark legislation. H.R. 5129 builds 

upon the Global Food Security Act of 2016, which formally codified the Feed the 

Future Initiative and was signed into law with overwhelming bipartisan support in 

July 2016, by reauthorizing the program for two years - per the Amendment you 

have before you- through 2020. 

Crucially, this reauthorization bill emphasizes the importance of dewom1ing 

initiatives. Among the neglected tropical diseases, intestinal wom1s account for 

nearly eighty percent of NTD prevalence, affecting close to one billion people the 

world over. These wom1s undercut our nutrition interventions, and can lead to 

death by malnutrition or lifelong sttmting. We need to combine our nutrition 

interventions not only with a coordinated dewonning campaign, but also with 

Water Sanitation Health interventions that change people's behavior. WaSH 

training helps ensure people limit exposme to worms, such as by washing and 

peeling vegetables or something as simple as giving children shoes to wear so if 

they trod on wonn-infected soil they don't get sick again. We are trying to feed the 

future, not feed the worms. 

We will also rectify an oversight by including the Inter-American 

Foundation in the interagency initiative on Food Security. TAF does development 
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29812l-2.eps

right, in particular working with small holder farmers while keeping bureaucratic 

overhead low. 

That we are here reauthorizing the Global Food Security Act is a testament 

to the dedication of numerous committed groups outside Congress that have made 

food security and nutrition their priority, from advocates to implementersespecially and including faith-based organizations who perhaps work the closest to 

the small-holder fam1ers and women who benefit in particular from our food 

security efforts. I thank them for their support and look forward to working with 

them more in this process. 

I'd also like to complement our federal agencies tasked with implementing 

the GFSA-in particular USAID tmder the leadership of Beth Dunford. The 

professionalism and dedication of Beth and many others is critical to the overall 

success ofthe program 

Finally, I would like to thank Rep. Betty McCollum for again being the lead 

cosponsor on this critical, bipartisan legislation, as well as to thank original 

cosponsor Ranking Member Engel and the Ranking member of our subcommittee, 

Karen Bass and others. 

Thank you.