I

103D CONGRESS

2D SESSION H. R. 4663

To provide authority to control exports, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

JUNE 28, 1994

Mr. HAMILTON introduced the following bill; which was referred to the

Committee on Foreign Affairs

A BILL

To provide authority to control exports, and for other

purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Omnibus Export

5 Administration Act of 1994’’.

6 SEC. 2. TABLE OF CONTENTS.

7 The table of contents of this Act is as follows:

Sec. 1. Short title.

Sec. 2. Table of contents.

TITLE I—EXPORT ADMINISTRATION

Sec. 101. Short title.

Sec. 102. Findings.

Sec. 103. Policy statement.
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Sec. 104. General provisions.

Sec. 105. Multilateral controls.

Sec. 106. Emergency controls.

Sec. 107. Short supply controls.

Sec. 108. Foreign boycotts.

Sec. 109. Procedures for processing export license applications; other inquiries.

Sec. 110. Violations.

Sec. 111. Controlling proliferation activity.

Sec. 112. Administrative and judicial review.

Sec. 113. Enforcement.

Sec. 114. Export control authorities and procedures.

Sec. 115. Annual report.

Sec. 116. Definitions.

Sec. 117. Effects on other Acts.

Sec. 118. Secondary Arab boycott.

Sec. 119. Authorization of appropriations.

Sec. 120. Conforming amendments to other laws.

Sec. 121. Effective date.

Sec. 122. Expiration date.

Sec. 123. Savings provision.

TITLE II—NUCLEAR PROLIFERATION PREVENTION ACT

Sec. 201. Short title.

PART A—REPORTING ON NUCLEAR EXPORTS

Sec. 211. Reports to Congress.

Sec. 212. Effective date.

PART B—SANCTIONS FOR NUCLEAR PROLIFERATION

Sec. 221. Imposition of sanctions on persons engaging in export activities that

contribute to proliferation.

Sec. 222. Eligibility for assistance.

Sec. 223. Role of international financial institutions.

Sec. 224. Prohibition on assisting nuclear proliferation through the provision of

financing.

Sec. 225. Export-Import Bank.

Sec. 226. Sanctions against countries involved in transfer of nuclear weapons

or design information or components.

Sec. 227. Amendment to the Arms Export Control Act.

Sec. 228. Reward.

Sec. 229. Reports.

Sec. 230. Technical correction.

Sec. 231. Definitions.

Sec. 232. Effective date.

PART C—INTERNATIONAL ATOMIC ENERGY AGENCY

Sec. 241. Bilateral and multilateral initiatives.

Sec. 242. IAEA internal reforms.

Sec. 243. Reporting requirement.

Sec. 244. Definitions.

PART D—REPEAL OF DUPLICATIVE PROVISIONS
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Sec. 251. Repeal.

1 TITLE I—EXPORT

2 ADMINISTRATION

3 SEC. 101. SHORT TITLE.

4 This title may be cited as the ‘‘Export Act of 1994’’.

5 SEC. 102. FINDINGS.

6 The Congress makes the following findings:

7 (1) Export controls are a part of a comprehen8 sive response to national security threats. United

9 States exports should be restricted only for critical

10 national security, nonproliferation, and foreign policy

11 reasons.

12 (2) Exports of certain commodities and tech13 nology may adversely affect the national security of

14 the United States by making a direct and significant

15 contribution to the military potential of individual

16 countries or by disseminating the capability to

17 produce or use weapons of mass destruction. There18 fore, the administration of export controls should

19 emphasize the control of these exports.

20 (3) The acquisition of dual use commodities

21 and technology by those countries and end users

22 whose actions or policies run counter to United

23 States national security interests may enhance the

24 military capabilities of those countries, particularly

25 their ability to produce and deliver nuclear, chemi-
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1 cal, and biological weapons. This enhancement

2 threatens the security of the United States and its

3 allies, and places additional demands on the defense

4 budget of the United States. Availability to certain

5 countries and end users of items that contribute to

6 certain military capabilities or the proliferation of

7 weapons of mass destruction is a fundamental con8 cern of the United States and should be eliminated

9 through negotiations and other appropriate means

10 whenever possible.

11 (4) Exporting is critical to the economic health

12 of the United States and, therefore, to its national

13 security as well. With the growing importance of ex14 ports to sustained United States economic growth

15 and vitality, restrictions on exports must be evalu16 ated in terms of their effects on the United States

17 economy as well as on its national security. Restric18 tions on exports from the United States have had se19 rious adverse effects on economic competitiveness

20 and domestic employment, particularly when re21 straints applied by the United States have been

22 more extensive than those imposed by other coun23 tries or when United States export control policy is

24 uncertain.
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1 (5) Export controls cannot be the sole instru2 ment of the United States to prevent a country or

3 end user from developing weapons of mass destruc4 tion. For this reason, export controls should be ap5 plied as part of a comprehensive response to security

6 threats.

7 (6) The national security of the United States

8 depends not only on wise foreign policies and a

9 strong defense, but also a vibrant national economy.

10 To be truly effective, export controls should be ap11 plied uniformly by all suppliers.

12 (7) Effective export controls also must be fo13 cused only on those items that materially contribute

14 to a country’s or an end user’s military potential or

15 potential to produce or use weapons of mass destruc16 tion.

17 (8) Unilateral export controls are generally not

18 effective in influencing the behavior of other govern19 ments or impeding access to controlled countries of

20 controlled items. In most situations, unilateral con21 trols alone impede access to United States sources

22 of supply without affecting the ability of controlled

23 countries to obtain controlled items elsewhere. More24 over, unilateral controls permit foreign competitors

25 to serve markets the United States Government de-
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1 nies to United States firms and workers, thus im2 pairing the reliability of United States suppliers in

3 comparison with their foreign competitors. At the

4 same time, the need to lead the international com5 munity or overriding national security or foreign pol6 icy interests may justify unilateral controls in spe7 cific cases.

8 (9) The United States recognizes the impor9 tance of comprehensive enforcement measures to

10 maximize the effectiveness of multilateral controls.

11 (10) The United States’ export control system

12 must not be overly restrictive or bureaucratic, or un13 dermine the competitive position of American indus14 try. The export control system must be efficient, re15 sponsive, transparent, and effective.

16 (11) Export restrictions that negatively affect

17 the United States industrial base ultimately weaken

18 United States military capabilities and lead to de19 pendencies on foreign sources for key components.

20 (12) Minimization of restrictions on exports of

21 agricultural commodities and products is of critical

22 importance to the maintenance of a sound agricul23 tural sector, to a positive contribution to the balance

24 of payments, to reducing the level of Federal ex25 penditures for agricultural support programs, and to
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1 United States cooperation in efforts to eliminate

2 malnutrition and world hunger.

3 SEC. 103. POLICY STATEMENT.

4 It is the policy of the United States to do the follow5 ing:

6 (1) To stem the proliferation of weapons of

7 mass destruction and the means to deliver them

8 by—

9 (A) leading international efforts to control

10 the proliferation of chemical, biological, and nu11 clear weapons and missiles;

12 (B) controlling involvement of United

13 States persons in, and contributions by United

14 States persons to, foreign programs intended to

15 develop weapons of mass destruction or missiles

16 and the means to design, develop, produce,

17 stockpile, or use them; and

18 (C) implementing international treaties or

19 other agreements that require controls on ex20 ports of designated items, reports on the pro21 duction, processing, consumption, and exports

22 of such items, and compliance with verification

23 programs.

24 (2) To restrict the export of items that would

25 directly and significantly contribute to the military
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1 potential of countries so as to pose a threat to the

2 national security of the United States or its allies.

3 (3) To—

4 (A) minimize uncertainties in export con5 trol policy; and

6 (B) encourage trade with all countries with

7 which the United States has diplomatic or trad8 ing relations, except those countries with which

9 such trade has been determined by the Presi10 dent to be against the national interest, and to

11 strongly encourage the trading partners of the

12 United States not to trade with those other

13 countries.

14 (4) To restrict export trade when necessary to

15 protect the domestic economy from the excessive

16 drain of scarce materials and to reduce the serious

17 inflationary impact of foreign demand.

18 (5) To increase the effectiveness of and the reli19 ance of the United States upon multilateral coordi20 nation of controls through effective export control

21 regimes that—

22 (A) clearly identify countries and entities

23 to which, and end uses for which, exports of

24 items are to be controlled,
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1 (B) incorporate lists of controlled items

2 that are critical to the control objectives,

3 (C) establish uniform criteria and proce4 dures for licensing, and

5 (D) implement means to curtail member

6 countries from granting licenses that render in7 effective license denials by the United States.

8 (6) To impose unilateral controls, under the

9 procedures and conditions set forth in section 106,

10 only when it is essential to the national security or

11 foreign policy of the United States, and only after

12 full consideration of the economic impact of the con13 trols and their effectiveness in achieving their in14 tended objectives.

15 (7) To make all licensing determinations in a

16 timely manner so undue delays in the licensing proc17 ess will not cause a United States firm to lose an

18 export sale.

19 (8) To maintain a presumption of approval of

20 license applications for authority to export items for

21 civil end use.

22 (9) To use export controls to encourage other

23 countries to take immediate steps to prevent the use

24 of their territories or resources to aid, encourage, or

25 give sanctuary to those persons involved in directing,
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1 supporting, or participating in acts of international

2 terrorism.

3 (10)(A) To counteract restrictive trade prac4 tices or boycotts fostered or imposed by foreign

5 countries against other countries friendly to the

6 United States or against any United States person.

7 (B) To encourage and, in specified cases, re8 quire United States persons engaged in the export of

9 commodities, technology, and other information to

10 refuse to take actions, including furnishing informa11 tion or entering into or implementing agreements,

12 which have the effect of furthering or supporting the

13 restrictive trade practices or boycotts fostered or im14 posed by any foreign country against a country

15 friendly to the United States or against any United

16 States person.

17 (11) To consolidate export control functions

18 and increase administrative accountability, and

19 thereby better serve the exporting public by reducing

20 and eliminating overlapping, conflicting, and incon21 sistent regulatory burdens.

22 (12) To minimize restrictions on the export of

23 agricultural commodities and products.
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1 SEC. 104. GENERAL PROVISIONS.

2 (a) TYPES OF LICENSES.—Under such conditions as

3 the Secretary may impose, consistent with the provisions

4 of this title, and subject to paragraph (2)(B), the Sec5 retary may require the following types of licenses for ex6 ports of commodities and technology controlled under this

7 title:

8 (1) SPECIFIC EXPORTS AND REEXPORTS.—An

9 individual validated license, authorizing a specific ex10 port.

11 (2) MULTIPLE EXPORTS AND REEXPORTS.—(A)

12 Validated licenses authorizing multiple exports, in

13 lieu of an individual validated license for each such

14 export.

15 (B)(i) A distribution license, authorizing mul16 tiple exports of general application computers to any

17 country other than a sanctioned country. The Sec18 retary shall grant such distribution licenses strictly

19 on the basis of the reliability of the applicant and

20 foreign consignees with respect to the prevention of

21 diversion of commodities or technology, consistent

22 with section 105(a)(1). Not later than 30 days after

23 an application is submitted under section 109 for

24 such a distribution license to export general applica25 tion computers, the Secretary shall grant the license

26 with respect to such distributors and end users that
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1 the Secretary determines to be reliable. The Sec2 retary may deny the license application with respect

3 to those distributors and end users that present a

4 risk of diversion of commodities or technology, di5 rectly or indirectly, consistent with the provisions of

6 section 105(a)(1).

7 (ii) For purposes of this subparagraph, a ‘‘sanc8 tioned country’’ is any country—

9 (I) the government of which the Secretary

10 of State has determined to be a government

11 that has repeatedly provided support for acts of

12 international terrorism; or

13 (II) against which the United States main14 tains an embargo on all, or substantially all, ex15 ports pursuant to the International Emergency

16 Economic Powers Act or the Trading With The

17 Enemy Act.

18 (iii) For purposes of this subparagraph, the

19 term ‘‘general application computers’’ means any

20 computer sustem, computer networking equipment,

21 peripheral to a computer system, or combination

22 thereof, on which export controls are in effect under

23 section 105, except the following:

24 (I) Supercomputers.
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1 (II) Computers specially designed for use

2 in connection with the capability described in

3 subparagraph (A) or (B) of section 105(a)(1).

4 (III) Computers specially designed for use

5 in connection with the surreptitious interception

6 of wire or oral communications.

7 (b) GENERAL PROHIBITION.—Notwithstanding any

8 other provision of this title, no person may export any item

9 which such person knows will materially contribute to a

10 program or activity for the design, development, or manu11 facture of a weapon of mass destruction or missile in a

12 country that is not a member of, or a cooperating country

13 with respect to, an export control regime controlling such

14 weapon or missile.

15 (c) UNITED STATES COMMODITY CONTROL INDEX.—

16 (1) IN GENERAL.—The Secretary shall—

17 (A) establish and maintain a United States

18 Commodity Control Index which shall identify

19 all commodities and technology on which con20 trols are imposed under this title;

21 (B) specify the license requirements appli22 cable to the items on the control index; and

23 (C) designate countries, and end uses or

24 end users, to which exports of commodities and

25 technology are controlled.
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1 (2) CONTENTS.—The control index shall—

2 (A) consist of a security control list of all

3 commodities and technology on which export

4 controls are imposed under section 105, an

5 emergency control list of all commodities and

6 technology on which export controls are im7 posed under section 106, a short supply control

8 list of all commodities on which export controls

9 are imposed under section 107;

10 (B) for each item on the control index,

11 specify with particularity the performance

12 (where applicable) and other identifying charac13 teristics of the item and provide a rationale for

14 why the item is on the control list;

15 (C) identify countries, and end uses or end

16 users, to which exports are controlled, including

17 specific projects and end users of concern,

18 cross-referenced with the list of commodities

19 and technology on which export controls are im20 posed; and

21 (D) be sufficiently specific and clear as to

22 guide exporters and licensing officers in deter23 minations of licensing requirements under this

24 title.
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1 (3) LICENSING OF CONTROL INDEX COMMOD2 ITIES AND TECHNOLOGY.—A validated license may

3 be required for the export of those commodities and

4 technology that are specifically and clearly identified

5 on the control index to countries, end uses, and end

6 users so designated on the control index. No author7 ity or permission may be required to export com8 modities and technology not so identified to any

9 country, end use, or end user not so designated.

10 (d) DELEGATION OF AUTHORITY.—Subject to the

11 provisions of this title, the President may delegate the

12 power, authority, and discretion conferred upon the Presi13 dent by this title to such departments, agencies, and offi14 cials of the Government as the President considers appro15 priate, except that no authority under this title may be

16 delegated to, or exercised by, any official of any depart17 ment or agency the head of which is not appointed by the

18 President, by and with the advice and consent of the Sen19 ate. The President may not delegate or transfer his power,

20 authority, or discretion to overrule or modify any rec21 ommendation or decision made by the Secretary, the Sec22 retary of Defense, or the Secretary of State under this

23 title and may not delegate the authority under section

24 106(a)(4).
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1 (e) NOTIFICATION OF THE PUBLIC; CONSULTATION

2 WITH BUSINESS.—The Secretary shall keep the public

3 fully apprised of changes in export control policy and pro4 cedures instituted in conformity with this title with a view

5 to encouraging trade. The Secretary shall consult regu6 larly with representatives of a broad spectrum of enter7 prises, labor organizations, and citizens interested in or

8 affected by export controls, in order to obtain their views

9 on United States export control policy and the foreign

10 availability of items subject to controls.

11 (f) EXPORT ADVISORY COMMITTEES.—

12 (1) APPOINTMENT.—Upon his or her own ini13 tiative or upon the written request of representatives

14 of a substantial segment of any industry which pro15 duces any items subject to export controls under this

16 title or being considered for such controls, the Sec17 retary shall appoint export advisory committees with

18 respect to any such items. Each such committee

19 shall consist of representatives of United States in20 dustry and Government, including the Department

21 of Commerce and other appropriate departments

22 and agencies of the Government. The Secretary shall

23 permit the widest possible participation by the busi24 ness community on the export advisory committees.
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1 (2) FUNCTIONS.—Export advisory committees

2 appointed under paragraph (1) shall advise and as3 sist the Secretary, and any other department, agen4 cy, or official of the Government carrying out func5 tions under this title, on actions (including all as6 pects of controls imposed or proposed) designed to

7 carry out the policies of this title concerning the

8 items with respect to which such export advisory

9 committees were appointed. Such committees, where

10 they have expertise in such matters, shall be con11 sulted on questions involving—

12 (A) technical matters,

13 (B) worldwide availability and actual utili14 zation of production technology,

15 (C) licensing procedures which affect the

16 level of export controls applicable to any items,

17 (D) revisions of the security control list (as

18 provided in section 105(j)), including proposed

19 revisions of multilateral controls in which the

20 United States participates,

21 (E) the issuance of regulations,

22 (F) the impact and interpretation of exist23 ing regulations,

24 (G) processes and procedures for review of

25 licenses and policy,
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1 (H) any other questions relating to actions

2 designed to carry out this title, and

3 (I) the operation and conduct of inter4 national business transactions.

5 Nothing in this subsection shall prevent the United

6 States Government from consulting, at any time,

7 with any person representing an industry or the gen8 eral public, regardless of whether such person is a

9 member of an export advisory committee. Members

10 of the public shall be given a reasonable opportunity,

11 pursuant to regulations prescribed by the Secretary,

12 to present evidence to such committees.

13 (3) REIMBURSEMENT OF EXPENSES.—Upon

14 the request of any member of any export advisory

15 committee appointed under paragraph (1), the Sec16 retary may, if the Secretary determines it to be ap17 propriate, reimburse such member for travel, sub18 sistence, and other necessary expenses incurred by

19 such member in connection with the duties of such

20 member.

21 (4) CHAIRPERSON.—Each export advisory com22 mittee appointed under paragraph (1) shall elect a

23 chairperson, and shall meet at least every 3 months

24 at the call of the chairperson, unless the chairperson

25 determines, in consultation with the other members
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1 of the committee, that such a meeting is not nec2 essary to achieve the purposes of this subsection.

3 Each such committee shall be terminated after a pe4 riod of 2 years, unless extended by the Secretary for

5 additional periods of 2 years each. The Secretary

6 shall consult each such committee on such termi7 nation or extension of that committee.

8 (5) ACCESS TO INFORMATION.—To facilitate

9 the work of the export advisory committees ap10 pointed under paragraph (1), the Secretary, in con11 junction with other departments and agencies par12 ticipating in the administration of this title, shall

13 disclose to each such committee adequate informa14 tion, consistent with national security, pertaining to

15 the reasons for the export controls which are in ef16 fect or contemplated for the items or policies for

17 which that committee furnishes advice.

18 (6) POLICY ADVICE.—The Secretary shall ap19 point a group of knowledgeable individuals from

20 businesses affected by export controls to provide ad21 vice to the Secretary on export control policy issues.

22 The chairperson of such group shall represent export

23 advisory committees regarding review of control lists

24 maintained by export control regimes and United

25 States proposals to export control regimes.
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1 (g) DEVELOPMENT AND REVIEW OF THE CONTROL

2 LIST.—The Secretary of State, in consultation with ap3 propriate departments and agencies, shall be responsible

4 for conducting negotiations with other countries regarding

5 multilateral arrangements for restricting the export of

6 items to carry out the policies of this title. All appropriate

7 departments and agencies shall consult among themselves

8 and with the appropriate export advisory committees ap9 pointed under subsection (f) to develop initial technical pa10 rameters and product definitions in connection with the

11 development of proposals within the United States Gov12 ernment to be made to multilateral regimes.

13 (h) RIGHT OF EXPORT.—No authority or permission

14 to export may be required under this title, or under regula15 tions issued under this title, except to carry out the poli16 cies set forth in section 103.

17 (i) INTERNATIONAL OBLIGATIONS UNDER TREA18 TIES.—Notwithstanding any other provision of this title

19 containing limitations on authority to control exports, the

20 Secretary, in consultation with the Secretary of State, may

21 impose controls on exports to a particular country or coun22 tries in order to fulfill obligations of the United States

23 under resolutions of the United Nations and under trea24 ties to which the United States is a party.
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1 (j) FEES.—No fee may be charged in connection with

2 the submission or processing of an export license applica3 tion under this title.

4 SEC. 105. MULTILATERAL CONTROLS.

5 (a) AUTHORITY.—

6 (1) IN GENERAL.—In order to carry out the

7 policies set forth in paragraphs (1), (2), and (5) of

8 section 103, the President may, in accordance with

9 this section, prohibit or curtail the export of any

10 commodities or technology subject to the jurisdiction

11 of the United States, or exported by any person sub12 ject to the jurisdiction of the United States, if such

13 commodities or technology—

14 (A) would directly and significantly enable

15 a country or end user to acquire the capability

16 to develop, produce, stockpile, use, or deliver

17 weapons of mass destruction; or

18 (B) would directly and significantly con19 tribute to the military capability of a country so

20 as to pose a threat to the national security of

21 the United States or its allies.

22 (2) EXERCISE OF AUTHORITY.—The authority

23 granted by this subsection shall be implemented by

24 means of export licenses required by the Secretary.
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1 (3) CONSISTENCY WITH EXPORT CONTROL RE2 GIMES.—Any provision of this title that provides

3 that no authority or permission to export may be re4 quired under this section shall not apply to the ex5 tent that the applicable export control regime pro6 vides otherwise.

7 (b) SECURITY CONTROL LIST.—

8 (1) IN GENERAL.—(A) The Secretary shall, in

9 consultation with appropriate departments and agen10 cies, establish and maintain, as part of the control

11 index, a security control list, comprised of all com12 modities and technology on which export controls are

13 in effect under this section, and the countries, and

14 end uses or end users, to which the controls apply.

15 The security control list shall clearly identify the

16 specific commodities and technology the export of

17 which is controlled, and each country, and end use

18 or end user, to which such exports are controlled.

19 (B) If a determination is made, with respect to

20 the inclusion of items on the security control list,

21 that affects the items controlled by an export control

22 regime, the Secretary of State shall propose to that

23 regime any revisions that would be necessary as a

24 result of the determination. Such determination shall
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1 become effective only to the extent such revisions are

2 agreed to by the export control regime.

3 (2) CONTROLLED COMMODITIES AND TECH4 NOLOGY.—Export controls shall be imposed under

5 this section if, and may be imposed under this sec6 tion only if, the export controls are agreed to by an

7 export control regime which includes export control

8 purposes, items subject to control, policy of review

9 for license applications, and all controlled destina10 tions, and end uses or end users.

11 (3) CONTROLLED COUNTRIES, END USES, AND

12 END USERS.—A country shall be designated a con13 trolled country, and an end use or end user shall be

14 designated a controlled end use or controlled end

15 user, with respect to a particular commodity or tech16 nology on the security control list if exports of such

17 commodity or technology to such country, end use,

18 or end user are controlled multilaterally pursuant to

19 the agreement of an export control regime described

20 in paragraph (2).

21 (c) EXPORT LICENSING POLICIES FOR CONTROLLED

22 COUNTRIES AND CONTROLLED END USES OR END

23 USERS.—

24 (1) EXPORTS TO CONTROLLED COUNTRIES,

25 AND END USES OR END USERS.—
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1 (A) IN GENERAL.—The Secretary shall re2 quire authority or permission to export com3 modities and technology on the security control

4 list to a controlled country, a controlled end

5 use, or a controlled end user.

6 (B) PRESUMPTION OF APPROVAL FOR

7 CIVIL END USES.—Subject to subparagraph

8 (C), applications to export commodities or tech9 nology for civil end uses shall carry a presump10 tion of approval.

11 (C) PRESUMPTION OF DENIAL FOR CON12 TROLLED END USERS.—Exports to controlled

13 end users of commodities or technology on

14 which controls are in effect under this section

15 shall carry a presumption of denial.

16 (D) BASIS FOR DENIAL.—Licenses may be

17 denied under this section only if the commodity

18 or technology meets the requirements of sub19 paragraph (A) or (B) of subsection (a)(1).

20 (2) CIVIL END USE.—A determination under

21 paragraph (1)(B) of whether commodities or tech22 nology are for civil end use shall be based on the fol23 lowing criteria:

24 (A) Whether the stated end use is civil.
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1 (B) Whether the civil application of the

2 commodities or technology is well established in

3 countries other than controlled countries.

4 (C) Whether the commodities or tech5 nology proposed for export are reasonable in

6 quantity and quality for the proposed end use.

7 (D) The risk of diversion to an unauthor8 ized user or consignee, including whether such

9 diversion can be verified.

10 (d) EXPORT CONTROL REGIMES AND LICENSING

11 POLICIES.—For the purposes of creating effective multi12 lateral export controls and strengthening the controls im13 posed by export control regimes, the Secretary of State

14 shall, with respect to each export control regime, pursue

15 negotiations with other members of such regime to accom16 plish the following objectives:

17 (1) Development of a common list of commod18 ities and technology to which export controls are ap19 plied, and a common list of countries, and end uses

20 or end users, to which exports are controlled, by

21 members of the regime.

22 (2) Agreement on the same treatment, to be ap23 plied by all members of the regime, of exports and

24 reexports to members of the regime, cooperating
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1 countries, and other countries that are not controlled

2 countries.

3 (3) National procedures resulting in comparable

4 implementation and enforcement of export controls

5 among the members of the regime, including laws

6 providing appropriate civil and criminal penalties

7 and statutes of limitations sufficient to deter poten8 tial violations.

9 (4) Periodic meetings of high-level representa10 tives of governments participating in the regime for

11 the purpose of coordinating national export control

12 policies and issuing policy guidance for dissemina13 tion to exporters in participating countries.

14 (5) Establishment of procedures for regular

15 consultation among members of the regime on pro16 posed export license applications that includes con17 sultation with individuals with sufficient technical

18 expertise to assess the licensing status of exports

19 and to ensure the reliability of end users.

20 (6) An enforcement mechanism that provides

21 authority for adequately trained enforcement officers

22 to investigate and prevent illegal exports.

23 (7) Development of a system of export control

24 documentation to verify the movement of commod25 ities and technology.
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1 (8) Establishment of procedures for the coordi2 nation and sharing of information on licensing, end

3 users, and enforcement.

4 (9) The application of adequate national re5 sources to carry out paragraphs (1) through (8).

6 (e) INCENTIVES FOR COUNTRIES TO PARTICIPATE IN

7 OR COOPERATE WITH EXPORT CONTROL REGIMES.—

8 (1) GENERAL RULE FOR REGIMES.—Unless the

9 Secretary, in consultation with the Secretary of

10 State, determines that an existing export control re11 gime has failed to meet the objectives set forth in

12 subsection (d), exports to all countries that are

13 members of, or cooperating countries with respect

14 to, that regime shall be subject to the licensing

15 treatment set forth in this subsection. The Secretary

16 shall publish each determination under this para17 graph in the Federal Register.

18 (2) FAVORABLE LICENSING TREATMENT.—Sub19 ject to paragraphs (3) and (4), unless an export con20 trol regime is the subject of a determination under

21 paragraph (1), no authority or permission may be

22 required for exports of any commodity or technology

23 controlled by that regime to or among members of

24 that regime or cooperating countries with respect to

25 that regime.
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1 (3) EXCEPTION.—If the Secretary determines

2 that a member of an export control regime, a co3 operating country with respect to such regime, or an

4 end user in a country that is such a regime member

5 or in such a cooperating country is engaging in a

6 pattern and practice of noncompliance with controls

7 agreed to by the regime—

8 (A) if the license treatment under para9 graph (2) is provided by the United States uni10 laterally, the Secretary shall terminate such

11 treatment with respect to that noncomplying

12 member, cooperating country, or end user dur13 ing the period in which the determination is in

14 effect; or

15 (B) in any other case the Secretary shall

16 seek a similar determination by the other mem17 bers of the regime concerning such noncompli18 ance and, if such a determination is made, the

19 Secretary shall propose the suspension of favor20 able licensing treatment of exports to that non21 complying regime member, cooperating country,

22 or end user by all members of the regime dur23 ing the period in which that determination is in

24 effect.
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1 (4) EXCEPTION FOR EXPORTS TO CERTAIN

2 COUNTRIES.—(A) Should some of the members of

3 an export control regime decide to require licenses

4 for the export to other members of the regime or to

5 cooperating countries of certain items controlled by

6 the regime, the United States may require such li7 censes if—

8 (i) the Secretary determines that a prepon9 derance of the world’s supply of the items in10 volved would be subject to such export license

11 requirements; or

12 (ii) after making a determination that a

13 preponderance of the world’s supply of the

14 items involved would not be subject to such ex15 port license requirements, the Secretary, in con16 sultation with the Secretary of State and the

17 Secretary of Defense, determines that the ab18 sence of a requirement of export licenses for

19 such items to such members of the regime or

20 cooperating countries would prove detrimental

21 to the national security of the United States.

22 In any case in which the Secretary makes a deter23 mination under clause (ii), the Secretary shall pub24 lish that determination, together with a concise
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•HR 4663 IH

1 statement of its basis and the estimated impact of

2 the determination.

3 (B) The Secretary shall notify the Congress at

4 least 30 days before a license requirement described

5 in subparagraph (A) goes into effect.

6 (f) CREATION AND ENHANCEMENT OF MULTILAT7 ERAL CONTROL REGIMES.—

8 (1) EXPANSION OF MEMBERSHIP OF RE9 GIMES.—For each existing export control regime and

10 for each export control regime the United States

11 seeks to create, the Secretary of State, in consulta12 tion with the Secretary, shall seek—

13 (A) to expand the membership of the re14 gime to include all countries that produce or ex15 port items controlled pursuant to agreement by

16 the regime and share the objectives of the re17 gime;

18 (B) the adoption of procedures for effective

19 implementation of the rules and guidelines of

20 the regime through uniform and consistent in21 terpretations of export controls agreed to by the

22 regime;

23 (C) agreement to create a secretariat, for

24 each regime that seeks the prevention of the

25 proliferation of weapons of mass destruction or
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•HR 4663 IH

1 missiles, that would call regular meetings of

2 members of the regime and establish rules for

3 the regime; and

4 (D) agreement within each regime not to

5 render ineffective the denial of licenses by other

6 regime members and to establish procedures for

7 the coordination and regular exchange of infor8 mation about such denials.

9 (2) TERRORIST THREATS TO REGIME MEM10 BERS.—

11 (A) PRESUMPTION OF DENIAL FOR LI12 CENSES.—For each existing export control re13 gime and for each export control regime the

14 United States seeks to create, the Secretary of

15 State, in consultation with the Secretary, shall

16 pursue negotiations with other members of such

17 regime to establish a presumption of denial for

18 licenses for exports that would directly contrib19 ute to acts of terrorism directed at 1 or more

20 regime members.

21 (B) REPORTS TO CONGRESS.—The Sec22 retary shall annually report to the Committee

23 on Foreign Affairs of the House of Representa24 tives and the Committee on Banking, Housing,

25 and Urban Affairs of the Senate on the
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•HR 4663 IH

1 progress made toward meeting the objectives

2 set forth in subparagraph (A).

3 (3) DISCLOSURE OF NONPROPRIETARY INFOR4 MATION.—The Secretary of State shall propose the

5 following to each export control regime:

6 (A) Full disclosure on a confidential basis

7 to all members of the regime of all

8 nonproprietary information relating to all li9 censes granted for the export of items con10 trolled by the regime, consistent with the pro11 tection of intelligence sources and methods.

12 (B) A list of controlled items of particular

13 sensitivity for which such disclosure shall be

14 given 15 days before the license is issued.

15 (g) TRANSPARENCY OF MULTILATERAL CONTROL

16 REGIMES.—

17 (1) PUBLICATION OF INFORMATION ON EACH

18 EXISTING REGIME.—Within 6 months after the date

19 of the enactment of this Act, the Secretary shall

20 publish in the Federal Register the following infor21 mation with respect to export controls agreed to by

22 each multilateral control regime existing on the date

23 of the enactment of this Act:

24 (A) Purposes of the controls.

25 (B) Members of the regime.
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•HR 4663 IH

1 (C) Licensing policy.

2 (D) Items subject to the controls, together

3 with all public notes, understandings, and other

4 aspects of the agreement of the regime, and all

5 changes thereto.

6 (E) Controlled countries, controlled end

7 uses, and, to the extent not inconsistent with

8 requirements of the regime, controlled end

9 users.

10 (F) Rules of interpretation.

11 (G) Major policy actions.

12 (H) The rules and procedures of the re13 gime for establishing and modifying any matter

14 described in subparagraphs (A) through (G)

15 and for reviewing export license applications.

16 (2) INFORMATION REGARDING CONTROLLED

17 END USERS.—The United States shall propose to

18 each export control regime to permit a member of

19 the regime to publish the controlled end users (in20 cluding projects of concern) agreed to by the regime.

21 (3) NEW REGIMES.—Within 2 months after

22 joining or organizing a new export control regime,

23 the Secretary shall publish the information described

24 in subparagraphs (A) through (H) of paragraph (1).
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1 (4) PUBLICATION OF CHANGES.—The Secretary

2 shall publish in the Federal Register any changes in

3 the information published under this subsection

4 within 2 months after the applicable regime adopts

5 such changes.

6 (h) EFFECTIVENESS OF MULTILATERAL CONTROL

7 REGIMES AND IMPLEMENTATION BY THEIR MEMBERS.—

8 (1) ANNUAL EVALUATION.—At least once each

9 year, the Secretary shall evaluate the effectiveness of

10 each export control regime and the effectiveness of

11 the implementation of the regime by each of its

12 members, including the United States. Such evalua13 tion shall be included in the annual report issued

14 under section 115.

15 (2) CONTENTS.—The evaluation under para16 graph (1) shall include the following for the calendar

17 year for which the report is issued:

18 (A) Items not controlled by the export con19 trol regime that the United States believes

20 should be controlled if the regime is to achieve

21 its control purposes effectively.

22 (B) Countries that are sources of foreign

23 availability for each item controlled by agree24 ment of the regime. Such countries shall in25 clude members of the regime, cooperating coun-
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•HR 4663 IH

1 tries with respect to the regime, and countries

2 that are not members of the regime.

3 (C) Countries that are risks for diverting

4 controlled items to controlled countries, end

5 uses, or end users.

6 (D) Members of the regime that have not,

7 in the judgment of the Secretary, implemented

8 the objectives set forth in subsection (d).

9 (E) The extent to which the regime and

10 each of its members have adopted and are im11 plementing uniform licensing policies.

12 (F) The extent to which the licensing pol13 icy of the regime and each of its members ade14 quately prevents the export licensing decisions

15 of one member of the regime from rendering in16 effective the denial of license applications by

17 another member.

18 (3) COMMENTS.—Before beginning each evalua19 tion under this subsection, the Secretary shall re20 quest comments from the public and the export advi21 sory committees appointed under section 104(f) re22 garding the effectiveness of each export control re23 gime. The Secretary shall give the public at least 30

24 days to provide comments under this paragraph.

25 (i) FOREIGN AVAILABILITY.—
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•HR 4663 IH

1 (1) FOREIGN AVAILABILITY TO CONTROLLED

2 COUNTRIES.—

3 (A) IN GENERAL.—The Secretary, in con4 sultation with the Secretary of Defense, other

5 appropriate Government departments and agen6 cies, and appropriate export advisory commit7 tees appointed under section 104(f), shall re8 view, on a continuing basis, the availability of

9 controlled items to controlled countries from

10 sources outside the United States, including

11 countries that participate with the United

12 States in export control regimes.

13 (B) ITEMS CONTROLLED BY COCOM.—(i)

14 In any case in which the Secretary determines

15 under paragraph (3), in accordance with proce16 dures and criteria which the Secretary shall es17 tablish by regulation, that any item controlled

18 for export pursuant to the agreement of

19 COCOM is available in fact, or will be available

20 in fact within 2 years in the future, to con21 trolled countries from sources outside the Unit22 ed States in sufficient quantity and of com23 parable quality so that the requirement of a

24 validated license for the export of such item is
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•HR 4663 IH

1 or would be ineffective in achieving the pur2 poses of this section—

3 (I) the President shall propose to

4 COCOM that export controls on such item

5 be eliminated, or

6 (II) if the President determines that

7 the absence of export controls on the item

8 would prove detrimental to the national se9 curity of the United States, the President

10 shall actively pursue negotiations with the

11 governments of the appropriate foreign

12 countries for the purpose of eliminating

13 such availability.

14 No later than the commencement of such nego15 tiations, the President shall notify in writing

16 the Committee on Banking, Housing, and

17 Urban Affairs of the Senate and the Committee

18 on Foreign Affairs of the House of Representa19 tives that the President has begun such nego20 tiations and why the President believes it is im21 portant to the national security that export con22 trols on the item involved be maintained.

23 (ii) If, within 6 months after the Presi24 dent’s determination under clause (i)(II) that

25 export controls be maintained notwithstanding
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•HR 4663 IH

1 foreign availability, the foreign availability has

2 not been eliminated, the Secretary may not,

3 after the end of that 6-month period, require a

4 validated license for the export of the item in5 volved. The President may extend the 6-month

6 period for an additional period of 12 months if

7 the President certifies to the Congress that the

8 negotiations involved are progressing and that

9 the absence of the export controls involved

10 would prove detrimental to the national security

11 of the United States.

12 (C) ITEMS CONTROLLED BY OTHER RE13 GIMES.—(i) In any case in which the Secretary

14 determines under paragraph (3), in accordance

15 with procedures and criteria which the Sec16 retary shall establish by regulation, that any

17 item controlled for export pursuant to an export

18 control regime other than COCOM is available

19 in fact, or will be available in fact within 2

20 years in the future, to controlled countries from

21 sources outside the United States in sufficient

22 quantity and of comparable quality so that the

23 requirement of a validated license for the export

24 of such item is or would be ineffective in achiev25 ing the purposes of this section, the President
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•HR 4663 IH

1 shall actively pursue negotiations with the gov2 ernments of the appropriate foreign countries

3 for the purpose of eliminating such availability.

4 No later than the commencement of such nego5 tiations, the President shall notify in writing

6 the Committee on Banking, Housing, and

7 Urban Affairs of the Senate and the Committee

8 on Foreign Affairs of the House of Representa9 tives that the President has begun such nego10 tiations, indicating whether the President be11 lieves it is important that export controls on the

12 item involved be maintained to avoid a signifi13 cant risk to the national security interests of

14 the United States.

15 (ii) If, within 120 days after a determina16 tion of foreign availability described in clause

17 (i) is made, the foreign person or persons that

18 are or will be the source of such foreign avail19 ability have not taken the steps necessary to

20 eliminate such availability, the President shall

21 propose to the export control regime controlling

22 the commodities or technology that are the sub23 ject of the foreign availability determination—

24 (I) that such controls be eliminated,

25 or
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•HR 4663 IH

1 (II) that the members of the regime

2 impose all of the sanctions described in

3 clause (iii) on such foreign person or per4 sons.

5 (iii) The sanctions referred to in clause (ii)

6 to be imposed on a foreign person or persons

7 are the following:

8 (I) A prohibition on the export to

9 such person or persons of all items con10 trolled by such export control regime.

11 (II) A prohibition on the import of all

12 goods that are produced by such person or

13 persons.

14 (III) A prohibition on procurement by

15 such governments of any services, commod16 ities, technology, or other products from or

17 produced by such person or persons.

18 (iv) If, within 90 days after a proposal

19 under clause (ii)(II) regarding sanctions is

20 made to an export control regime, such regime

21 has not agreed to such proposal, the President

22 shall either propose to such regime that the ex23 port controls on the commodities or technology

24 that are the subject of the foreign availability

25 determination be eliminated, or report to the
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•HR 4663 IH

1 Congress that the President has determined

2 that elimination of the controls would create a

3 significant risk to the national security interests

4 of the United States. Such report shall include

5 the basis for such determination.

6 (2) NOTICE OF ALL FOREIGN AVAILABILITY AS7 SESSMENTS.—Whenever the Secretary undertakes a

8 foreign availability assessment under this subsection,

9 the Secretary shall publish notice of such assessment

10 in the Federal Register.

11 (3) PROCEDURES FOR MAKING DETERMINA12 TIONS.—

13 (A) PROCEDURES.—(i) The Secretary shall

14 make a foreign availability determination under

15 paragraph (1) on the Secretary’s own initiative,

16 upon the certification of an export advisory

17 committee appointed under section 104(f) with

18 respect to the commodities or technology con19 cerning which the certification is made, or upon

20 receipt of an allegation from an export license

21 applicant that such availability exists. In mak22 ing any such determination, the Secretary shall

23 accept the representations of applicants made

24 in writing and supported by reasonable evi25 dence, unless such representations are contra-
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•HR 4663 IH

1 dicted by reliable evidence, including scientific

2 or physical examination, expert opinion based

3 upon adequate factual information, or intel4 ligence information.

5 (ii) In making determinations of foreign

6 availability, the Secretary may consider such

7 factors as cost, reliability, the availability and

8 reliability of spare parts and the cost and qual9 ity thereof, maintenance programs, durability,

10 quality of end products produced by the item

11 subject to the determination, and scale of pro12 duction.

13 (iii) For purposes of this subparagraph,

14 the term ‘‘evidence’’ may include such items as

15 foreign manufacturers’ catalogues, brochures,

16 operations or maintenance manuals, articles

17 from reputable trade publications, photographs,

18 and depositions based upon eyewitness ac19 counts.

20 (B) CERTIFICATIONS BY EXPORT ADVI21 SORY COMMITTEES.—At the same time as an

22 export advisory committee submits a certifi23 cation to the Secretary under subparagraph

24 (A)(i), the committee shall submit the certifi25 cation to the Congress. The Secretary shall in-
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1 vestigate the foreign availability so certified

2 and, not later than 90 days after the certifi3 cation is made, shall submit a report to the ex4 port advisory committee and the Congress stat5 ing that—

6 (i) the foreign availability does exist,

7 and the applicable steps are being taken

8 under paragraph (1); or

9 (ii) the foreign availability does not

10 exist.

11 To the extent necessary, the report may be sub12 mitted on a classified basis.

13 (C) ALLEGATIONS BY EXPORT LICENSE

14 APPLICANTS.—Within 4 months after receiving

15 an allegation described in subparagraph (A)(i)

16 from an export license applicant, the Secretary

17 shall determine whether the foreign availability

18 exists, and shall so notify the applicant. If the

19 Secretary has determined that the foreign avail20 ability exists, the Secretary shall, upon making

21 such determination, submit the determination

22 for review to other departments and agencies as

23 the Secretary considers appropriate. The Sec24 retary’s determination of foreign availability

25 shall not require the concurrence or approval of
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•HR 4663 IH

1 any such department or agency. Not later than

2 30 days after the Secretary makes the deter3 mination, the Secretary shall respond in writing

4 to the applicant and submit for publication in

5 the Federal Register, that—

6 (i) the foreign availability does exist,

7 and the applicable steps are being taken

8 under paragraph (1); or

9 (ii) the foreign availability does not

10 exist.

11 (4) SHARING OF INFORMATION.—Each depart12 ment or agency of the United States, including any

13 intelligence agency, and all contractors with any

14 such department or agency, shall, upon the request

15 of the Secretary and consistent with the protection

16 of intelligence sources and methods as determined by

17 the Director of Central Intelligence, furnish informa18 tion to the Department of Commerce concerning for19 eign availability of items subject to export controls

20 under this section, including allowing access to any

21 information from a laboratory or other facility with22 in such department or agency.

23 (5) CONGRESSIONAL NOTIFICATIONS.—The

24 Secretary shall annually notify the Committee on

25 Foreign Affairs of the House of Representatives,
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1 and the Committee on Banking, Housing, and

2 Urban Affairs of the Senate, of all allegations of for3 eign availability received from export license appli4 cants under paragraph (3), and the actions the Sec5 retary has taken pursuant to such allegations.

6 (j) REVIEW OF CONTROLLED ITEMS.—

7 (1) IN GENERAL.—The Secretary shall review

8 all commodities and technology on the security con9 trol list maintained under subsection (b) at least an10 nually. At the conclusion of each review, the Sec11 retary shall justify the inclusion of each item on the

12 security control list, remove items from the security

13 control list, change the specifications of items on the

14 list, or add items to the list, in order to meet the

15 requirements of subsection (a)(1). The data devel16 oped from such reviews shall be used in formulating

17 United States proposals for revision of multilateral

18 controls in the applicable export control regimes.

19 (2) CONSIDERATIONS.—In conducting the an20 nual review, the Secretary shall—

21 (A) consult with the appropriate export ad22 visory committees appointed under section

23 104(f) and consider recommendations of such

24 committees with respect to proposed changes in

25 the security control list;
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1 (B) consider the results of foreign avail2 ability determinations made under subsection

3 (i);

4 (C) consider comments received pursuant

5 to the notice of review provided under para6 graph (3)(B); and

7 (D) consult with other appropriate depart8 ments or agencies.

9 (3) PROCEDURES.—

10 (A) DURATION OF REVIEW.—The annual

11 review required under paragraph (1) may not

12 extend beyond 180 days after such review is

13 begun.

14 (B) NOTICE OF REVIEW.—Before begin15 ning each annual review, the Secretary shall

16 publish a notice of that review in the Federal

17 Register and shall provide a 30-day period for

18 comments and submission of data, with or with19 out oral presentation, by interested Government

20 agencies, exporters, and other interested par21 ties.

22 (C) REVISIONS.—The Secretary shall make

23 a determination of any revisions in the security

24 control list not later than 30 days after the end

25 of the review period. In making such determina-
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1 tion, the Secretary shall consult with the appro2 priate departments or agencies. The concur3 rence or approval of any other department or

4 agency shall not be required before any such re5 vision is made.

6 (D) PROPOSALS TO EXPORT CONTROL RE7 GIMES.—If a revision of the security control list

8 under this paragraph affects the items con9 trolled by an export control regime, the Sec10 retary of State shall propose such revision to

11 that regime. Such revision shall become effec12 tive only to the extent such revision is agreed

13 to by the export control regime.

14 (E) PUBLICATION OF REVISIONS.—The

15 Secretary shall publish in the Federal Register

16 any revisions in the list, with an explanation of

17 the reasons for the revisions.

18 (k) INDEXING.—The Secretary shall develop, with the

19 assistance of the export advisory committees appointed

20 under section 104(f), methodologies and procedures for in21 dexing items on the security control list where perform22 ance capabilities are relevant and measurable. Such meth23 odologies and procedures shall provide for increases in the

24 performance levels of commodities and technology on the

25 security control list and shall provide for the technical
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1 specifications below which no authority or permission to

2 export is required as compared to the most technologically

3 advanced commercially available version of the same or

4 equivalent commodities or technology. Such methodologies

5 and procedures shall be published in the Federal Register

6 and used in the annual review of the security control list

7 under subsection (j).

8 (l) REVIEW OF EXPORT CONTROLS ON COMPUTER

9 EQUIPMENT AND TECHNOLOGY.—

10 (1) IN GENERAL.—In order to ensure that re11 quirements of validated licenses are periodically re12 moved as computer equipment, computer commu13 nications and networking equipment, computer soft14 ware, and related technology, that are subject to

15 such requirements become obsolete with respect to

16 the specific objectives of the export controls requir17 ing such licenses, the Secretary shall conduct peri18 odic reviews of such controls. The Secretary shall

19 complete such a review not later than 6 months

20 after the date of the enactment of this Act, and

21 thereafter as part of the reviews conducted under

22 subsection (j).

23 (2) REVIEW ELEMENTS.—In conducting each

24 review under paragraph (1), the Secretary shall do
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1 the following with respect to the export controls de2 scribed in paragraph (1):

3 (A) OBJECTIVES OF CONTROLS.—The Sec4 retary shall identify the specific objectives of

5 the export controls, as part of a comprehensive

6 strategy to prevent the proliferation of weapons

7 of mass destruction, for the 12-month period

8 following completion of the review, for each

9 country or group of countries for which a vali10 dated license is required. When an objective of

11 an export control is to defer the development of

12 a specific capability in such country or group of

13 countries, the Secretary shall specify for what

14 period of time the controls are expected to defer

15 such capability.

16 (B) QUANTITY AND PERFORMANCE.—The

17 Secretary shall estimate, for the 12-month pe18 riod described in subparagraph (A), the quan19 tity and performance (measured in Composite

20 Theoretical Performance or other relevant per21 formance metrics) of computer systems that

22 must be obtained by each country or group of

23 countries for which a validated license is re24 quired in order to defeat the objectives of the

25 export controls.
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1 (C) AVAILABILITY TO CONTROLLED DES2 TINATIONS.—The Secretary shall evaluate the

3 effectiveness of the export controls in achieving

4 their specific objectives, including explicit de5 scriptions of the availability from sources out6 side the United States, during the 12-month pe7 riod described in subparagraph (A), to con8 trolled countries of computer equipment, com9 puter communications and networking equip10 ment, computer software, and related tech11 nology on which the export controls are in ef12 fect.

13 (D) ECONOMIC IMPACT.—The Secretary

14 shall evaluate the economic impact, during the

15 12-month period described in subparagraph

16 (A), of the export controls on exporting compa17 nies, including estimates of lost sales, loss in

18 market share, and administrative overhead.

19 (3) INCREASE IN THRESHOLDS.—

20 (A) INCREASES.—After completing each

21 review under this subsection, the Secretary

22 shall, after consultation with appropriate de23 partments or agencies, increase, if warranted by

24 the findings of the review, the following export

25 control thresholds, consistent with the obliga-
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1 tions of the United States under export control

2 regimes:

3 (i) The performance levels at which

4 computer systems are eligible for delivery

5 under a distribution license or other license

6 authorizing multiple exports.

7 (ii) The performance levels defining a

8 ‘‘supercomputer’’.

9 (iii) The performance levels at which

10 an individual validated license is required

11 for the export to a controlled country of

12 computer systems and peripherals, soft13 ware, parts, and communications equip14 ment normally supplied with such com15 puter systems.

16 In any recommendation for or publication of

17 such increase, the Secretary shall include the

18 specific rationale for the increase.

19 (B) PROPOSALS TO MULTILATERAL RE20 GIMES.—The Secretary of State shall, within 30

21 days after a determination by the Secretary to

22 increase thresholds, propose to the other mem23 bers of the applicable export control regime the

24 elimination of the applicable controls on the

25 items with respect to which such determination
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1 is made, in accordance with the procedures of

2 the regime, and publish a notice of such pro3 posal in the Federal Register.

4 (4) REPORT.—The Secretary shall transmit to

5 the Congress, and to any export advisory committee

6 appointed under section 104(f) with respect to com7 puter systems, a report on the findings of each re8 view conducted under this subsection, addressing

9 each requirement set forth in paragraph (2).

10 (5) HEARINGS.—The Secretary shall conduct

11 public hearings not less than once each year in order

12 to solicit information from all interested parties on

13 all matters to be addressed in each review conducted

14 under this subsection.

15 (6) REMOVAL OF CONTROLS ON MASS-MARKET

16 COMPUTER EQUIPMENT.—

17 (A) MASS-MARKET COMPUTER EQUIPMENT

18 DEFINED.—For purposes of this paragraph, the

19 term ‘‘mass-market computer equipment’’

20 means any computer system, computer

21 networking equipment, peripheral to a computer

22 system, part or subassembly of a computer sys23 tem, or combination thereof, on which export

24 controls are in effect under this section, and

25 which will have been installed for end use out-
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1 side the United States in a quantity exceeding

2 100,000 units over a 12-month period, as deter3 mined under subparagraph (B).

4 (B) ANTICIPATORY REVIEW OF MASS-MAR5 KET COMPUTER EQUIPMENT.—Not later than—

6 (i) 6 months after the date of the en7 actment of this Act, and

8 (ii) the end of each 1-year period oc9 curring thereafter,

10 the Secretary shall, in consultation with the

11 Computer Systems Technical Advisory Commit12 tee (or successor export advisory committee),

13 industry groups, and computer equipment pro14 ducers, identify those items described in sub15 paragraph (A) (including computer systems dif16 ferentiated in terms of Composite Theoretical

17 Performance) that will be installed for end use

18 outside the United States in a quantity exceed19 ing 100,000 units during the 12-month period

20 beginning on the applicable date described in

21 clause (i) or (ii). For purposes of this para22 graph, estimates of numbers of items that will

23 be installed shall be based on reliable estimates

24 provided by producers of such items.
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1 (C) ACTION BY THE SECRETARY.—Not

2 later than 30 days after an item is determined

3 by the Secretary under subparagraph (B) to be

4 mass-market computer equipment, the Sec5 retary of State shall propose to the export con6 trol regime controlling the equipment the elimi7 nation of controls on such equipment in accord8 ance with the procedures of the appropriate re9 gime and shall publish a notice of such proposal

10 in the Federal Register.

11 (m) TRADE SHOWS.—Consistent with the agreements

12 of applicable multilateral export control regimes, an appli13 cation for a license for the export to a controlled country

14 of any commodity on which export controls are in effect

15 under this section, without regard to the technical speci16 fications of the commodity, for the purpose of demonstra17 tion or exhibition at a trade show shall carry a presump18 tion of approval if—

19 (1) the United States exporter retains title to,

20 and maintains effective control of, the commodity,

21 and complies with any safeguard requirement im22 posed by the Secretary, during the entire period in

23 which the commodity is in the controlled country;

24 and
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•HR 4663 IH

1 (2) the exporter removes the commodity from

2 the controlled country within a reasonable period of

3 time after the conclusion of the trade show, as de4 fined in regulations issued by the Secretary.

5 (n) STUDY ON COMPUTER EXPORT CONTROLS.—

6 (1) ARRANGEMENTS FOR AND CONTENT OF

7 STUDY.—

8 (A) ARRANGEMENTS FOR CONDUCTING

9 STUDY.—The Secretary, not later than 60 days

10 after the date of the enactment of this Act,

11 shall enter into appropriate arrangements with

12 the National Academy of Sciences and the Na13 tional Academy of Engineering (hereafter in

14 this subsection referred to as the ‘‘Academies’’)

15 to conduct a comprehensive study on the extent

16 to which exports of computers can be effectively

17 controlled, and the policy reasons for maintain18 ing such controls.

19 (B) REQUIREMENT OF STUDY.—Recogniz20 ing the need to enhance the competitiveness of

21 the United States computer industry while pre22 venting sensitive technology from being used to

23 develop weapons of mass destruction by con24 trolled countries, the study shall—
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1 (i) examine the trends of the com2 puter industry, including those toward new

3 and more powerful computer systems

4 based upon ‘‘Parallel Computing’’ and

5 ‘‘Virtual Parallel Processing’’, and their ef6 fect on the extent to which exports of com7 puter systems can be effectively controlled,

8 with respect to the factors described in

9 clause (ii);

10 (ii) examine the factors that make it

11 increasingly difficult to control the export

12 of computers, including the size and

13 expandability of many modern computer

14 systems and the availability of such com15 puter systems from foreign sources; and

16 (iii) examine the effect of export con17 trols on the competitiveness of the United

18 States computer industry.

19 (2) ADVISORY PANEL.—In conducting the study

20 under paragraph (1), the Academies shall appoint an

21 Advisory Panel of not more than 12 members who

22 shall be selected from among individuals who, by vir23 tue of their experience and expertise, are knowledge24 able in relevant scientific, business, legal, or admin25 istrative matters. No individual may serve as a mem-
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1 ber who is an elected or appointed official or em2 ployee in the executive, legislative, or judicial branch

3 of any government. In selecting members of the Ad4 visory Panel, the Academies shall seek suggestions

5 from the President, the Congress, and representa6 tives of industry and the academic community.

7 (3) EXECUTIVE BRANCH COOPERATION.—The

8 Secretary, the Secretary of Defense, the Secretary of

9 State, the Director of the Central Intelligence Agen10 cy, and the head of any department or agency that

11 exercises authority under this title—

12 (A) shall furnish to the Academies, upon

13 request and under appropriate safeguards, clas14 sified or unclassified information which the

15 Academies determine to be necessary for the

16 purposes of conducting the study required by

17 this subsection; and

18 (B) shall work with the Academies on such

19 problems related to the study as the Academies

20 consider necessary.

21 (4) REPORT.—Under the direction of the Advi22 sory Panel, the Academies shall prepare and submit

23 to the President and the Congress, not later than 9

24 months after entering into the arrangements re25 ferred to in paragraph (1), a report which contains
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1 a detailed statement of findings and conclusions of

2 the Academies from the study conducted under

3 paragraph (1), together with their recommendations

4 for the complete removal of controls from computers

5 or specifying the level of technology to which con6 trols on computers should be reduced.

7 SEC. 106. EMERGENCY CONTROLS.

8 (a) AUTHORITY.—

9 (1) IN GENERAL.—In order to carry out the

10 policy set forth in paragraphs (6) and (9) of section

11 103, the President may, in accordance with this sec12 tion, unilaterally prohibit or curtail the export of any

13 commodity or technology subject to the jurisdiction

14 of the United States or exported by any person sub15 ject to the jurisdiction of the United States.

16 (2) EXERCISE OF AUTHORITY.—The authority

17 contained in this subsection shall be exercised by the

18 Secretary, in consultation with the Secretary of

19 State, the Secretary of Defense, and such other de20 partments and agencies as the President considers

21 appropriate.

22 (3) EXPIRATION OF AUTHORITY.—

23 (A) IN GENERAL.—Any controls imposed

24 under this section shall expire 6 months after

25 they are imposed, unless they are terminated
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1 earlier by the President or unless they are ex2 tended under this section, except that such con3 trols may be adopted as multilateral controls

4 under section 105 or included in an embargo

5 described in subsection (f)(1) that is imposed

6 by the President under the International Emer7 gency Economic Powers Act, the Trading with

8 the Enemy Act, or other provision of law other

9 than this title. Any extension or subsequent ex10 tension of the controls under this section shall

11 be for a period of not more than 1 year each.

12 The controls shall expire at the end of each

13 such extension unless they are terminated ear14 lier by the President or unless they are further

15 extended under this section, except that such

16 controls may be adopted as multilateral controls

17 under section 105 or included in an embargo

18 described in the first sentence of this subpara19 graph.

20 (B) EXCEPTION FOR MULTILATERAL

21 AGREEMENTS.—Subparagraph (A) shall not

22 apply to controls imposed by the President in

23 order to fulfill obligations of the United States

24 under resolutions of the United Nations or

25 under treaties to which the United States is a
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1 party. If such a resolution or treaty ceases to

2 be in effect, controls imposed by the President

3 pursuant to such resolution or treaty shall im4 mediately cease to be in effect.

5 (4) CRITERIA.—The President may impose con6 trols under this section only if the President—

7 (A) determines that the controls are essen8 tial to the national security or foreign policy of

9 the United States or its allies, including the

10 prevention of acts of international terrorism;

11 (B) determines that no other alternative

12 means can achieve the national security or for13 eign policy objectives of the United States with14 in a reasonable period of time, including all

15 other possible sanctions;

16 (C) determines that the controls can rea17 sonably be expected to achieve their intended

18 objectives after having taken into consideration

19 other factors, including the availability from

20 one or more countries of comparable commod21 ities and technology to those on which the con22 trols are to be imposed;

23 (D) determines that the United States has

24 the ability to enforce all aspects of the proposed

25 controls effectively;
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1 (E) determines that the effect of the pro2 posed controls on the export performance of the

3 United States, the competitive position of the

4 United States as a supplier of items, or on the

5 economic well-being of individual United States

6 companies and their employees and commu7 nities does not exceed the benefits to the for8 eign policy or national security interests of the

9 United States; and

10 (F) identifies those commodities and tech11 nology to be controlled, determines that they

12 must be controlled in order to achieve the in13 tended purpose of the controls, and describes

14 the reasons for selecting such items.

15 (5) NEGOTIATIONS.—The President shall com16 mence, through the Secretary of State, within 10

17 days after the imposition of controls under this sec18 tion, negotiations with other countries to adopt the

19 controls so that such controls may be imposed under

20 section 105, unless such controls are imposed under

21 paragraph (3)(B).

22 (b) CONSULTATION WITH INDUSTRY.—The Sec23 retary in every possible instance shall consult with and

24 seek advice from affected United States industries and ex25 port advisory committees appointed under section 104(f)
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1 before the imposition, expansion, or extension of any ex2 port control under this section.

3 (c) CONSULTATION WITH OTHER COUNTRIES.—

4 When expanding or extending export controls under this

5 section (unless such action is taken under subsection

6 (a)(3)(B)), the Secretary of State, in consultation with the

7 Secretary, shall, at the earliest appropriate opportunity,

8 consult with the countries with which the United States

9 maintains export controls cooperatively, and with other

10 countries, as appropriate, to advise them of the reasons

11 for the action and to urge them to adopt similar controls,

12 so that the controls may be imposed under section 105.

13 (d) CONSULTATIONS WITH THE CONGRESS.—

14 (1) CONSULTATIONS.—The Secretary may im15 pose, expand, or extend export controls under this

16 section only after consultation with the Congress, in17 cluding the Committee on Foreign Affairs of the

18 House of Representatives and the Committee on

19 Banking, Housing, and Urban Affairs of the Senate.

20 (2) REPORTS.—The Secretary may not impose

21 or expand controls under subsection (a) until the

22 Secretary has submitted to the Congress a report—

23 (A) addressing each of the criteria set

24 forth in subparagraphs (A) through (F) of sub25 section (a)(4);
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1 (B) specifying the purpose of the controls;

2 (C) describing the nature, the subjects,

3 and the results of, or plans for, the consultation

4 with industry under subsection (b) and with

5 other countries under subsections (a)(5) and

6 (c);

7 (D) specifying the nature and results of

8 any alternative means attempted to achieve the

9 objectives of the controls, or the reasons for im10 posing or expanding the controls without at11 tempting any such alternative means; and

12 (E) describing the availability from other

13 countries of items comparable to the items sub14 ject to the controls, and describing the nature

15 and results of the efforts made to secure the co16 operation of foreign governments in controlling

17 the foreign availability of such comparable com18 modities or technology.

19 Such report shall also indicate how such controls will

20 further significantly the policies of the United States

21 as set forth in section 103 or will further its de22 clared international obligations.

23 (3) SUBMISSION OF REPORT TO GAO.—Each re24 port required by paragraph (2) shall, at the same

25 time it is submitted to the Congress, also be submit-
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1 ted to the General Accounting Office for the purpose

2 of assessing the report’s full compliance with the

3 purpose of this subsection.

4 (e) SEEKING MULTILATERAL SUPPORT FOR UNILAT5 ERAL CONTROLS.—The Secretary and the Secretary of

6 State shall have a continuing duty to seek support, by

7 other countries and by multilateral export control regimes,

8 for all controls imposed under this section.

9 (f) PROCEDURES AND LIMITATIONS ON EMERGENCY

10 CONTROLS.—

11 (1) IMPOSITION OF AN EMBARGO.—An embargo

12 under subsection (a)(3)(A) shall include the prohibi13 tion of all exports to and imports from the country

14 against which the controls under this section were

15 imposed, except that such an embargo need not in16 clude a prohibition on exports of items described in

17 section 114(k).

18 (2) CESSATION OF EMERGENCY CONTROLS.—

19 (A) IN GENERAL.—Controls imposed under

20 this section on commodities or technology shall

21 cease to be in effect immediately upon—

22 (i) the imposition of multilateral con23 trols under section 105 on the same com24 modities and technology to the country or

25 end user, or for the end use, with respect
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1 to which the controls were imposed under

2 this section; or

3 (ii) the imposition, under the Inter4 national Emergency Economic Powers Act,

5 the Trading with the Enemy Act, or other

6 provision of law, of an embargo described

7 in paragraph (1).

8 (B) CONVERSION TO MULTILATERAL

9 AGREEMENTS.—If the President imposes con10 trols on commodities or technology to a country

11 or end user, or for an end use, under this sec12 tion in order to fulfill obligations of the United

13 States under resolutions of the United Nations

14 or under a treaty to which the United States is

15 a party, any controls imposed prior thereto

16 under this section on the same commodities or

17 technology to the same country or end user, or

18 for the same end use, shall immediately cease

19 to be in effect.

20 (3) LIMITATIONS ON REIMPOSITION.—Controls

21 which have ceased to be in effect under subsection

22 (a)(3), and which have not been extended under sub23 section (g), may not be reimposed by the President

24 under subsection (a) for a period of 6 months begin-
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•HR 4663 IH

1 ning on the date on which the original controls ex2 pire.

3 (g) EXTENSION OF EMERGENCY CONTROLS.—

4 (1) REPORT.—If the President decides to ex5 tend controls imposed under subsection (a), which

6 are due to expire under subsection (a)(3), the Presi7 dent shall, not later than 60 calendar days before

8 the expiration of such controls, transmit to the Con9 gress a report on the proposed extension, setting

10 forth the reasons for the proposed extension in detail

11 and specifying the period of time, which may not ex12 ceed 1 year, for which the controls are proposed to

13 be extended. In particular, such report shall—

14 (A) contain determinations by the Presi15 dent—

16 (i) that the controls continue to be es17 sential to the national security or foreign

18 policy of the United States;

19 (ii) that no other alternative means

20 can achieve the national security or foreign

21 policy objectives of the United States with22 in a reasonable period of time, as described

23 in subsection (a)(4)(B);
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1 (iii) that the United States has dem2 onstrated the ability to enforce all aspects

3 of the controls effectively; and

4 (iv) that the effect of the controls on

5 those factors described in subsection

6 (a)(4)(E) has not exceeded the benefits to

7 the foreign policy or national security in8 terests of the United States;

9 (B) identify those commodities and tech10 nology to be controlled, specify that they must

11 be controlled in order to achieve the intended

12 purpose of the controls, and describe the rea13 sons for the selection of such items;

14 (C) specify the reasons why negotiations

15 required under subsection (a)(5) or (c) failed to

16 result in the adoption of the controls under sec17 tion 105, and the prospects for the multilateral

18 adoption of such controls;

19 (D) specify the reasons why an embargo

20 described in paragraph (1) is not presently jus21 tified to achieve the national security or foreign

22 policy objectives of the United States;

23 (E) include an assessment by the Secretary

24 of the economic consequences of the controls

25 during the preceding 4 months (in the case of
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1 the first extension of the controls under this

2 section) or during the preceding 10 months (in

3 the case of any subsequent extension of the con4 trols under this section), including estimates of

5 any lost United States exports and jobs;

6 (F) include an assessment by the Secretary

7 of State of the objectives of the controls and the

8 extent to which the controls have attained those

9 objectives during the preceding 4 months (in

10 the case of the first extension of the controls

11 under this section) or during the preceding 10

12 months (in the case of any subsequent exten13 sion of the controls under this section); and

14 (G) include an assessment by the Secretary

15 of Defense of the impact the controls have had

16 on the national security of the United States in

17 the preceding 4 months (in the case of the first

18 extension of the controls under this section) or

19 in the preceding 10 months (in the case of any

20 subsequent extension of the controls under this

21 section).

22 (2) CONSIDERATION OF EXTENSION.—The con23 trols shall remain in effect unless the Congress,

24 within 60 calendar days after its receipt of the re25 port under paragraph (1), enacts a joint resolution
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1 pursuant to paragraph (3) disapproving the exten2 sion of the controls. Any controls remaining in effect

3 shall continue for the period specified in the report

4 or until terminated by the President, whichever oc5 curs first, but in no case longer than 1 year after

6 the date on which the controls would otherwise ex7 pire under subsection (a)(3), unless the Congress by

8 law terminates the controls. If the Congress, within

9 60 calendar days after the date of its receipt of such

10 report, enacts a joint resolution disapproving the ex11 tension of such controls, then such controls shall

12 cease to be effective upon the expiration of that 60-

13 day period.

14 (3) JOINT RESOLUTIONS.—

15 (A) DEFINITION.—For purposes of this

16 paragraph, the term ‘‘joint resolution’’ means

17 only a joint resolution the matter after the re18 solving clause of which is as follows: ‘‘That,

19 pursuant to section 106(g) of the Export Act of

20 1994, the President may not extend emergency

21 controls as specified in the report submit22 ted to the Congress on

23 lllllllllllll.’’, with the

24 blank space being filled with the appropriate

25 date.
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1 (B) INTRODUCTION.—On the day on which

2 a report is submitted to the House of Rep3 resentatives and the Senate under paragraph

4 (1), a joint resolution with respect to the exten5 sion of controls specified in such report shall be

6 introduced (by request) in the House of Rep7 resentatives by the chairman of the Committee

8 on Foreign Affairs, for the chairman and the

9 ranking minority member of the Committee, or

10 by Members of the House designated by the

11 chairman and ranking minority member; and

12 shall be introduced (by request) in the Senate

13 by the majority leader of the Senate, for the

14 majority leader and the minority leader of the

15 Senate, or by Members of the Senate des16 ignated by the majority leader and the minority

17 leader of the Senate. If either House of Con18 gress is not in session on the day on which such

19 a report is submitted, the joint resolution shall

20 be introduced in that House, as provided for in

21 the preceding sentence, on the first day there22 after on which that House is in session.

23 (C) DISCHARGE.—If the Committee of ei24 ther House to which a joint resolution has been

25 referred has not reported the joint resolution by
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1 the end of 30 calendar days after its referral,

2 the committee shall be discharged from further

3 consideration of the joint resolution or of any

4 other joint resolution introduced with respect to

5 the same matter.

6 (D) CONSIDERATION.—A joint resolution

7 under this paragraph shall be considered in the

8 Senate in accordance with the provisions of sec9 tion 601(b)(4) of the International Security As10 sistance and Arms Export Control Act of 1976.

11 For the purpose of expediting the consideration

12 and passage of joint resolutions reported or dis13 charged under this paragraph, it shall be in

14 order for the Committee on Rules of the House

15 of Representatives to present for consideration

16 a resolution of the House of Representatives

17 providing procedures for the immediate consid18 eration of a joint resolution under this para19 graph which may be similar, if applicable, to

20 the procedures set forth in section 601(b)(4) of

21 the International Security Assistance and Arms

22 Export Control Act of 1976.

23 (E) DUPLICATIVE RESOLUTIONS.—In the

24 case of a joint resolution described in subpara25 graph (A), if, before the passage by one House
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1 of a joint resolution of that House, that House

2 receives a resolution with respect to the same

3 matter from the other House, then—

4 (i) the procedure in that House shall

5 be the same as if no joint resolution had

6 been received from the other House; and

7 (ii) the vote on final passage shall be

8 on the joint resolution of the other House.

9 (4) FURTHER EXTENSIONS OF CONTROLS.—If,

10 upon the expiration of the emergency controls ex11 tended under this subsection, the President deter12 mines that a further extension of emergency controls

13 for an additional period of time of not more than 1

14 year is necessary, paragraphs (1) through (3) shall

15 apply to such further extension.

16 (5) CALCULATION OF TIME PERIODS.—For pur17 poses of calculating calendar days under this sub18 section, there shall be excluded the days on which ei19 ther House of Congress is not in session because of

20 an adjournment of more than 3 days to a day cer21 tain or because of an adjournment of the Congress

22 sine die.

23 (h) EFFECT ON OTHER AUTHORITY.—

24 (1) EMBARGO AUTHORITY.—Nothing in this

25 section shall be construed to limit the authority of
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1 the President to impose an embargo described in

2 subsection (f)(1) on exports to, and imports from, a

3 specific country under the International Emergency

4 Economic Powers Act, the Trading with the Enemy

5 Act, or other provision of law (other than this title).

6 In any case in which the President exercises any

7 such authority to impose an embargo, the require8 ments of this section shall not apply for so long as

9 such embargo is in effect.

10 (2) EFFECT ON EXISTING EMBARGOES.—(A)

11 Nothing in this section affects the authorities con12 ferred upon the President by section 5(b) of the

13 Trading with the Enemy Act, which were being exer14 cised with respect to a country on July 1, 1977, as

15 a result of a national emergency declared by the

16 President before that date, and are being exercised

17 on the date of the enactment of this Act.

18 (B) Nothing in this section affects the authori19 ties conferred upon the President by the Inter20 national Economic Powers Act or other provision of

21 law (other than the Export Administration Act of

22 1979), which were being exercised with respect to a

23 country before the date of the enactment of this Act

24 as a result of a national emergency declared by the

25 President before that date, and are being exercised
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1 with respect to such country on such date of enact2 ment.

3 (i) COUNTRIES SUPPORTING INTERNATIONAL TER4 RORISM.—

5 (1) PROHIBITION ON EXPORTS.—(A) No export

6 or reexport of commodities or technology described

7 in subparagraph (B) may be made to any country

8 the government of which the Secretary of State has

9 determined has repeatedly provided support for acts

10 of international terrorism.

11 (B) The commodities or technology referred to

12 in subparagraph (A) are—

13 (i) any commodities or technology the ex14 port of which is controlled under this title pur15 suant to the Missile Technology Control Regime

16 or the Australia Group, or controlled under this

17 title pursuant to section 309(c) of the Nuclear

18 Non-Proliferation Act of 1978,

19 (ii) any commodities or technology de20 scribed in section 105(a)(1)(B) the export of

21 which is controlled under section 105, and

22 (iii) any commodities or technology the ex23 port of which could make a significant contribu24 tion to the military potential of a country de25 scribed in subparagraph (A), including its mili-
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1 tary logistics capability, or could enhance the

2 ability of such country to support acts of inter3 national terrorism,

4 other than commodities or technology that the Presi5 dent determines will be used only for humanitarian

6 purposes. A validated license shall be required for

7 the export under this paragraph of any such com8 modities or technology that will be used only for hu9 manitarian purposes.

10 (C) Paragraphs (3)(A) and (4) of subsection (a)

11 shall not apply to exports prohibited or restricted

12 under this subsection.

13 (D)(i) The Secretary shall review the list of

14 items described in subparagraph (B)(iii) at least an15 nually. At the conclusion of the review, the Secretary

16 shall justify the inclusion of each item on the list,

17 remove items from the list, change the specifications

18 of items on the list, or add items to the list, in order

19 to ensure that the items on the list meet the require20 ments of subparagraph (B)(iii).

21 (ii) The procedures set forth in subparagraphs

22 (B), (C), and (E) of section 105(j) shall apply to re23 views under clause (i) of the list of items described

24 in subparagraph (B)(iii) to the same extent as such
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1 subparagraphs apply to reviews of the security con2 trol list under section 105(j).

3 (2) NOTIFICATION OF CONGRESS OF LICENSES

4 ISSUED.—The Secretary and the Secretary of State

5 shall notify the Committee on Foreign Affairs of the

6 House of Representatives and the Committee on

7 Banking, Housing, and Urban Affairs and the Com8 mittee on Foreign Relations of the Senate at least

9 30 days before issuing any validated license under

10 this title for exports to a country described in para11 graph (1)(A).

12 (3) PUBLICATION OF DETERMINATIONS.—Each

13 determination of the Secretary of State under para14 graph (1)(A), and each determination under section

15 6(j)(1)(A) of the Export Administration Act of 1979

16 in effect at the time this title takes effect, shall be

17 published in the Federal Register.

18 (4) RESCISSION OF DETERMINATIONS.—A de19 termination made by the Secretary of State under

20 paragraph (1)(A) may not be rescinded unless the

21 President submits to the Speaker of the House of

22 Representatives and the chairman of the Committee

23 on Banking, Housing, and Urban Affairs and the

24 chairman of the Committee on Foreign Relations of

25 the Senate—
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1 (A) before the proposed rescission would

2 take effect, a report certifying that—

3 (i) there has been a fundamental

4 change in the leadership and policies of the

5 government of the country concerned;

6 (ii) that government is not supporting

7 acts of international terrorism; and

8 (iii) that government has provided as9 surances that it will not support acts of

10 international terrorism in the future; or

11 (B) at least 45 days before the proposed

12 rescission would take effect, a report justifying

13 the rescission and certifying that—

14 (i) the government concerned has not

15 provided any support for international ter16 rorism during the preceding 6-month pe17 riod; and

18 (ii) the government concerned has

19 provided assurances that it will not sup20 port acts of international terrorism in the

21 future.

22 (5) WAIVER OF PROHIBITIONS.—The President

23 may waive the prohibitions contained in paragraph

24 (1)(A) with respect to a specific transaction if—
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1 (A) the President determines that the

2 transaction is essential to the national security

3 interests of the United States; and

4 (B) not less than 30 days prior to the pro5 posed transaction, the President—

6 (i) consults with the Committee on

7 Foreign Affairs of the House of Represent8 atives and the Committee on Banking,

9 Housing, and Urban Affairs of the Senate

10 regarding the proposed transaction; and

11 (ii) submits to the Speaker of the

12 House of Representatives and the chair13 man of the Committee on Banking, Hous14 ing, and Urban Affairs of the Senate a re15 port containing—

16 (I) the name of any country in17 volved in the proposed transaction,

18 the identity of any recipient of the

19 items to be provided pursuant to the

20 proposed transaction, and the antici21 pated use of those items;

22 (II) a description of the items in23 volved in the proposed transaction (in24 cluding their market value) and the
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1 actual sale price at each step in the

2 transaction;

3 (III) the reasons why the pro4 posed transaction is essential to the

5 national security interests of the

6 United States and the justification for

7 the proposed transaction;

8 (IV) the date on which the pro9 posed transaction is expected to occur;

10 and

11 (V) the name of every United

12 States Government department, agen13 cy, or other entity involved in the pro14 posed transaction, and every foreign

15 government involved in the proposed

16 transaction.

17 To the extent possible, the information specified in

18 clause (ii) of subparagraph (B) shall be provided in

19 unclassified form, with any classified information

20 provided in an addendum to the report.

21 (6) MULTILATERAL REGIMES.—The Secretary

22 of State shall propose to COCOM, to the Australia

23 Group, to the countries participating in the Missile

24 Technology Control Regime, and to the Nuclear

25 Suppliers Group, that each such group adopt those
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1 controls that are imposed by this subsection on ex2 ports of commodities or technology subject to control

3 by such group. The Secretary of State shall continue

4 to make such proposals until such export controls

5 are so adopted.

6 (7) EFFECT ON OTHER LAWS.—The provisions

7 of this subsection do not affect any other provision

8 of law to the extent such other provision imposes

9 greater restrictions on exports to any country the

10 government of which the Secretary of State has de11 termined has repeatedly provided support for acts of

12 international terrorism than are imposed under this

13 subsection.

14 (j) CRIME CONTROL INSTRUMENTS.—

15 (1) VALIDATED LICENSE REQUIRED.—Crime

16 control and detection instruments and equipment

17 shall be approved for export by the Secretary only

18 pursuant to a validated export license. Paragraphs

19 (3)(A) and (4) of subsection (a) shall not apply to

20 the export controls imposed by this subsection.

21 (2) CONSULTATION WITH SECRETARY OF

22 STATE.—

23 (A) ITEMS ON CONTROL LIST.—Any deter24 mination of the Secretary of what commodities

25 or technology shall be included on the control
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1 index as a result of the export restrictions im2 posed by this subsection shall be made after

3 consultation with the Secretary of State.

4 (B) ACTION ON LICENSE APPLICATION.—

5 Any determination of the Secretary to approve

6 or deny an export license application to export

7 crime control or detection instruments or equip8 ment shall be made after consultation with the

9 Secretary of State.

10 (3) DISPUTE RESOLUTION.—If the Secretary of

11 State does not agree with the Secretary with respect

12 to any determination under paragraph (2), the Sec13 retary of State shall refer the matter to the Presi14 dent for resolution.

15 (4) EXCEPTIONS.—The provisions of this sub16 section shall not apply with respect to exports to

17 countries which are members of the North Atlantic

18 Treaty Organization or to Japan, Australia, or New

19 Zealand, or to such other countries as the President

20 shall designate consistent with the purposes of this

21 subsection and section 502B of the Foreign Assist22 ance Act of 1961.

23 (k) SPARE PARTS.—At the same time as the Presi24 dent imposes or expands export controls under this sec25 tion, the President shall determine whether such export
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1 controls will apply to replacement parts or parts in com2 modities subject to such export controls.

3 SEC. 107. SHORT SUPPLY CONTROLS.

4 (a) AUTHORITY.—

5 (1) IN GENERAL.—In order to carry out the

6 policy set forth in section 103(4), the President may

7 prohibit or curtail the export of any commodities

8 subject to the jurisdiction of the United States or

9 exported by any person subject to the jurisdiction of

10 the United States. In curtailing exports to carry out

11 the policy set forth in section 103(4), the President

12 shall allocate a portion of export licenses on the

13 basis of factors other than a prior history of expor14 tation. Such factors shall include the extent to which

15 a country engages in equitable trade practices with

16 respect to United States commodities and treats the

17 United States equitably in times of short supply.

18 (2) PUBLIC PARTICIPATION.—Upon imposing

19 quantitative restrictions on exports of any commod20 ities to carry out the policy set forth in section

21 103(4), the Secretary shall include in a notice pub22 lished in the Federal Register with respect to such

23 restrictions an invitation to all interested parties to

24 submit written comments within 15 days after the

25 date of publication on the impact of such restrictions
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1 and the method of licensing used to implement

2 them.

3 (3) LICENSE FEES.—In imposing export con4 trols under this section, the President’s authority

5 shall include, but not be limited to, the imposition

6 of export license fees.

7 (b) MONITORING.—

8 (1) IN GENERAL.—In order to carry out the

9 policy set forth in section 103(4), the Secretary shall

10 monitor exports, and contracts for exports, of any

11 commodity when the volume of such exports in rela12 tion to domestic supply contributes, or may contrib13 ute, to an increase in domestic prices or a domestic

14 shortage, and such price increase or shortage has, or

15 may have, a serious adverse impact on the economy

16 or any sector thereof. Any such monitoring shall

17 commence at a time adequate to assure that the

18 monitoring will result in a data base sufficient to en19 able policies to be developed, in accordance with sec20 tion 103(4), to mitigate a short supply situation or

21 serious inflationary price rise or, if export controls

22 are needed, to permit imposition of such controls in

23 a timely manner. Information which the Secretary

24 requires to be furnished in effecting such monitoring
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1 shall be confidential, except as provided in para2 graph (2).

3 (2) REPORTS ON MONITORING.—The results of

4 monitoring under paragraph (1) shall, to the extent

5 practicable, be aggregated and included in weekly re6 ports setting forth, with respect to each item mon7 itored, actual and anticipated exports, the destina8 tion by country, and the domestic and worldwide

9 price, supply, and demand. Such reports may be

10 made monthly if the Secretary determines that there

11 is insufficient information to justify weekly reports.

12 (3) CONSULTATION WITH SECRETARY OF EN13 ERGY.—The Secretary shall consult with the Sec14 retary of Energy to determine whether monitoring or

15 export controls under this section are warranted

16 with respect to exports of facilities, machinery, or

17 equipment normally and principally used, or in18 tended to be used, in the production, conversion, or

19 transportation of fuels and energy (except nuclear

20 energy), including, but not limited to—

21 (A) drilling rigs, platforms, and equipment;

22 (B) petroleum refineries, and natural gas

23 processing, liquefaction, and gasification plants;

24 (C) facilities for production of synthetic

25 natural gas or synthetic crude oil;
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1 (D) oil and gas pipelines, pumping sta2 tions, and associated equipment; and

3 (E) vessels for transporting oil, gas, coal,

4 and other fuels.

5 (c) PETITIONS FOR MONITORING OR CONTROLS OF

6 METALLIC MATERIALS.—

7 (1) IN GENERAL.—(A) Any entity, including a

8 trade association, firm, or certified or recognized

9 union or group of workers, that is representative of

10 an industry or a substantial segment of an industry

11 that processes metallic materials capable of being re12 cycled may transmit a written petition to the Sec13 retary requesting the monitoring of exports or the

14 imposition of export controls, or both, with respect

15 to any such material, in order to carry out the policy

16 set forth in section 103(4).

17 (B) Each petition shall be in such form as the

18 Secretary shall prescribe and shall contain informa19 tion in support of the action requested. The petition

20 shall include any information reasonably available to

21 the petitioner indicating that each of the criteria set

22 forth in paragraph (3)(A) is satisfied.

23 (2) PUBLICATION OF NOTICE.—Within 15 days

24 after receipt of any petition described in paragraph
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1 (1), the Secretary shall publish a notice in the Fed2 eral Register. The notice shall—

3 (A) include the name of the material that

4 is the subject to the petition;

5 (B) include the schedule B number of the

6 material as set forth in the Statistical Classi7 fication of Domestic and Foreign Commodities

8 Exported from the United States;

9 (C) indicate whether the petition is re10 questing that controls or monitoring, or both,

11 be imposed with respect to the exportation of

12 such material; and

13 (D) provide that interested persons shall

14 have a period of 30 days beginning on the date

15 on which the notice is published to submit to

16 the Secretary written data, views, or argu17 ments, with or without opportunity for oral

18 presentation, with respect to the matter in19 volved.

20 At the request of the petitioner or any other entity

21 described in paragraph (1)(A) with respect to the

22 material which is the subject of the petition, or at

23 the request of any entity representative of producers

24 or exporters of such material, the Secretary shall

25 conduct public hearings with respect to the subject
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1 of the petition, in which case the 30-day period may

2 be extended to 45 days.

3 (3) DETERMINATION OF MONITORING OR CON4 TROLS.—(A) Within 45 days after the end of the

5 30- or 45-day period described in paragraph (2), as

6 the case may be, the Secretary shall determine

7 whether to impose monitoring or controls, or both,

8 on the export of the material that is the subject of

9 the petition in order to carry out the policy set forth

10 in section 103(4). In making such determination,

11 the Secretary shall determine whether—

12 (i) there has been a significant increase, in

13 relation to a specific period of time, in exports

14 of such material in relation to domestic supply

15 and demand;

16 (ii) there has been a significant increase in

17 domestic price of such material or a domestic

18 shortage of such material relative to demand;

19 (iii) exports of such material are as impor20 tant as any other cause of a domestic price in21 crease or shortage relative to demand found

22 under clause (ii);

23 (iv) a domestic price increase or shortage

24 relative to demand found under clause (ii) has

25 significantly adversely affected or may signifi-
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1 cantly adversely affect the national economy or

2 any sector thereof, including a domestic indus3 try; and

4 (v) monitoring or controls, or both, are

5 necessary in order to carry out the policy set

6 forth in section 103(4).

7 (B) The Secretary shall publish in the Federal

8 Register a detailed statement of the reasons for the

9 Secretary’s determination under subparagraph (A)

10 of whether to impose monitoring or controls, or

11 both, including the findings of fact in support of

12 that determination.

13 (4) PUBLICATION OF REGULATIONS.—Within

14 15 days after making a determination under para15 graph (3) to impose monitoring or controls on the

16 export of a material, the Secretary shall publish in

17 the Federal Register proposed regulations with re18 spect to such monitoring or controls. Within 30 days

19 after the publication of such proposed regulations,

20 and after considering any public comments on the

21 proposed regulations, the Secretary shall publish and

22 implement final regulations with respect to such

23 monitoring or controls.

24 (5) CONSOLIDATION OF PETITIONS.—For pur25 poses of publishing notices in the Federal Register
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1 and scheduling public hearings pursuant to this sub2 section, the Secretary may consolidate petitions, and

3 responses to such petitions, which involve the same

4 or related materials.

5 (6) SUBSEQUENT PETITIONS ON SAME MATE6 RIAL.—If a petition with respect to a particular ma7 terial or group of materials has been considered in

8 accordance with all the procedures described in this

9 subsection, the Secretary may determine, in the ab10 sence of significantly changed circumstances, that

11 any other petition with respect to the same material

12 or group of materials which is filed within 6 months

13 after the consideration of the prior petition has been

14 completed does not merit complete consideration

15 under this subsection.

16 (7) PRECEDENCE OF PROCEDURES OVER

17 OTHER REVIEWS.—The procedures and time limits

18 set forth in this subsection with respect to a petition

19 filed under this subsection shall take precedence over

20 any review undertaken at the initiative of the Sec21 retary with respect to the same subject as that of

22 the petition.

23 (8) TEMPORARY CONTROLS.—The Secretary

24 may impose monitoring or controls, on a temporary

25 basis, on the export of a metallic material after a pe-
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1 tition is filed under paragraph (1)(A) with respect to

2 that material but before the Secretary makes a de3 termination under paragraph (3) with respect to

4 that material only if—

5 (A) the failure to take such temporary ac6 tions would result in irreparable harm to the

7 entity filing the petition, or to the national

8 economy or segment thereof, including a domes9 tic industry, and

10 (B) the Secretary considers such action to

11 be necessary to carry out the policy set forth in

12 section 103(4).

13 (9) OTHER AUTHORITY NOT AFFECTED.—The

14 authority under this subsection shall not be con15 strued to affect the authority of the Secretary under

16 any other provision of this title, except that if the

17 Secretary determines, on the Secretary’s own initia18 tive, to impose monitoring or controls, or both, on

19 the export of metallic materials capable of being re20 cycled, under the authority of this section, the Sec21 retary shall publish the reasons for such action in

22 accordance with paragraph (3) (A) and (B).

23 (10) SUBMISSION AND CONSIDERATION OF AD24 DITIONAL INFORMATION.—Nothing contained in this

25 subsection shall be construed to preclude submission
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1 on a confidential basis to the Secretary of informa2 tion relevant to a decision to impose or remove mon3 itoring or controls under the authority of this title,

4 or to preclude consideration of such information by

5 the Secretary in reaching decisions required under

6 this subsection. The provisions of this paragraph

7 shall not be construed to affect the applicability of

8 section 552(b) of title 5, United States Code.

9 (d) DOMESTICALLY PRODUCED CRUDE OIL.—

10 (1) PROHIBITION ON EXPORTS.—Notwithstand11 ing any other provision of this title and notwith12 standing subsection (u) of section 28 of the Mineral

13 Leasing Act of 1920 (30 U.S.C. 185), no domesti14 cally produced crude oil transported by pipeline over

15 right-of-way granted pursuant to section 203 of the

16 Trans-Alaska Pipeline Authorization Act (43 U.S.C.

17 1652) may, subject to paragraph (2), be exported

18 from the United States, except any such crude oil

19 which—

20 (A) is exported to an adjacent foreign

21 country to be refined and consumed therein in

22 an exchange that—

23 (i) is for the same quantity of crude

24 oil being exported from that country to the

25 United States; and
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1 (ii) results through convenience or in2 creased efficiency of transportation in

3 lower prices for consumers of petroleum

4 products in the United States as described

5 in paragraph (2)(A)(ii);

6 (B) is temporarily exported for convenience

7 or increased efficiency of transportation across

8 parts of an adjacent foreign country and reen9 ters the United States; or

10 (C) is transported to Canada, to be

11 consumed therein, in amounts not to exceed an

12 annual average of 50,000 barrels per day, in

13 addition to exports under subparagraphs (A)

14 and (B), except that any ocean transportation

15 of such oil shall be by vessels documented under

16 section 12106 of title 46, United States Code.

17 (2) EXCEPTIONS.—Crude oil subject to the pro18 hibition contained in paragraph (1) may be exported

19 only if—

20 (A) the President so recommends to the

21 Congress after making and publishing express

22 findings that exports of such crude oil, includ23 ing exchanges—

24 (i) will not diminish the total quantity

25 or quality of petroleum refined within,
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1 stored within, or legally committed to be

2 transported to and sold within the United

3 States;

4 (ii) will, within 3 months following the

5 initiation of such exports or exchanges, re6 sult in—

7 (I) acquisition costs to the refin8 ers that purchase the imported crude

9 oil being lower than the acquisition

10 costs such refiners would have to pay

11 for the domestically produced oil in

12 the absence of such an export or ex13 change, and

14 (II) not less than 75 percent of

15 such savings in costs being reflected

16 in wholesale and retail prices of prod17 ucts refined from such imported crude

18 oil;

19 (iii) will be made only pursuant to

20 contracts which may be terminated if the

21 crude oil supplies of the United States are

22 interrupted, threatened, or diminished;

23 (iv) are clearly necessary to protect

24 the national interest; and
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1 (v) are in accordance with the provi2 sions of this title; and

3 (B) the President includes such findings in

4 the recommendation to the Congress and the

5 Congress, within 60 days after receiving that

6 recommendation, agrees to a joint resolution

7 which approves such exports on the basis of

8 those findings, and which is thereafter enacted

9 into law.

10 (3) EXPORTS UNDER BILATERAL AGREE11 MENTS.—Notwithstanding any other provision of

12 this section or any other provision of law, including

13 subsection (u) of section 28 of the Mineral Leasing

14 Act of 1920, the President may export oil to any

15 country pursuant to a bilateral international oil sup16 ply agreement entered into by the United States

17 with such country before June 25, 1979, or to any

18 country pursuant to the International Emergency

19 Oil Sharing Plan of the International Energy Agen20 cy.

21 (e) REFINED PETROLEUM PRODUCTS.—

22 (1) EXPORT LICENSES.—In any case in which

23 the President determines that it is necessary to im24 pose export controls on refined petroleum products

25 in order to carry out the policy set forth in section
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1 103(4), the President shall notify the Congress of

2 that determination. The President shall also notify

3 the Congress if and when the President determines

4 that such export controls are no longer necessary.

5 During any period in which a determination that

6 such export controls are necessary is in effect, no re7 fined petroleum product may be exported except pur8 suant to an export license specifically authorizing

9 such export.

10 (2) NOTIFICATION TO CONGRESS AND LAY11 OVER.—(A) Not later than 5 days after an applica12 tion for a license to export any refined petroleum

13 product is received, the Secretary shall notify the

14 Congress of such application, together with the

15 name of the exporter, the destination of the pro16 posed export, and the amount and price of the pro17 posed export. Such notification shall be made to the

18 chairman of the Committee on Foreign Affairs of

19 the House of Representatives and the chairman of

20 the Committee on Banking, Housing, and Urban Af21 fairs of the Senate.

22 (B) The Secretary may not grant such license

23 during the 30-day period beginning on the date on

24 which notification to the Congress under paragraph

25 (1) is received, unless the President certifies in writ-
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1 ing to the Speaker of the House of Representatives

2 and the President pro tempore of the Senate that

3 the proposed export is vital to the national interest

4 and that a delay in issuing the license would ad5 versely affect that interest.

6 (3) EXCEPTION.—This subsection shall not

7 apply to—

8 (A) any export license application for ex9 ports to a country with respect to which histori10 cal export quotas established by the Secretary

11 on the basis of past trading relationships apply;

12 or

13 (B) any license application for exports to a

14 country if exports under the license would not

15 result in the export from the United States of

16 more than 250,000 barrels of refined petroleum

17 products to such country in any fiscal year.

18 (4) DEFINITION.—For purposes of this sub19 section, the term ‘‘refined petroleum product’’ means

20 gasoline, kerosene, distillates, propane or butane

21 gas, diesel fuel, and residual fuel oil, that is refined

22 within the United States or entered for consumption

23 within the United States.

24 (5) EXTENSION OF LICENSE APPLICATION

25 PROCESSING TIME.—The Secretary may extend any
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1 time period prescribed in section 109 to the extent

2 necessary to take into account delays in action by

3 the Secretary on a license application on account of

4 the provisions of this subsection.

5 (f) CERTAIN PETROLEUM PRODUCTS.—Petroleum

6 products refined in United States foreign trade zones, or

7 in the United States Territory of Guam, from foreign

8 crude oil shall be excluded from any quantitative restric9 tions imposed under this section, except that, if the Sec10 retary finds that a product is in short supply, the Sec11 retary may issue such regulations as may be necessary to

12 limit exports.

13 (g) AGRICULTURAL COMMODITIES.—

14 (1) APPROVAL OF CONTROLS BY SECRETARY OF

15 AGRICULTURE.—The authority conferred by this sec16 tion shall not be exercised with respect to any agri17 cultural commodity, including fats and oils or animal

18 hides or skins, without the approval of the Secretary

19 of Agriculture. The Secretary of Agriculture shall

20 not approve the exercise of such authority with re21 spect to any such commodity during any period for

22 which the supply of such commodity is determined

23 by the Secretary of Agriculture to be in excess of the

24 requirements of the domestic economy, except to the

25 extent the President determines that the controls on
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1 such agricultural commodities are also imposed

2 under section 106. The Secretary of Agriculture

3 shall, by exercising the authority which the Sec4 retary of Agriculture has under other applicable pro5 visions of law, collect data with respect to export

6 sales of animal hides and skins.

7 (2) PROTECTION OF STORED COMMODITIES

8 FROM FUTURE CONTROLS.—Upon approval of the

9 Secretary, in consultation with the Secretary of Ag10 riculture, agricultural commodities purchased by or

11 for use in a foreign country may remain in the Unit12 ed States for export at a later date free from any

13 quantitative limitations on export which may be im14 posed to carry out the policy set forth in section

15 103(4) subsequent to such approval. The Secretary

16 may not grant such approval unless the Secretary

17 receives adequate assurance and, in conjunction with

18 the Secretary of Agriculture, finds—

19 (A) that such commodities will eventually

20 be exported,

21 (B) that neither the sale nor export thereof

22 will result in an excessive drain of scarce mate23 rial and have a serious domestic inflationary

24 impact,
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1 (C) that storage of such commodities in

2 the United States will not unduly limit the

3 space available for storage of domestically

4 owned commodities, and

5 (D) that the purpose of such storage is to

6 establish a reserve of such commodities for later

7 use, not including resale to or use by another

8 country.

9 The Secretary may issue such regulations as may be

10 necessary to carry out this paragraph.

11 (3) PROCEDURES FOR IMPOSING CONTROLS.—

12 (A) If the President imposes export controls on any

13 agricultural commodity under section 106 (including

14 section 106(i)) or this section, the President shall

15 immediately transmit a report on such action to the

16 Congress, setting forth the reasons for the controls

17 in detail and specifying the period of time, which

18 may not exceed 1 year, that the controls are pro19 posed to be in effect. If the Congress, within 60 days

20 after the date of the receipt of the report, adopts a

21 joint resolution pursuant to paragraph (4) approving

22 the imposition of the export controls, then such con23 trols shall remain in effect for the period specified

24 in the report, or until terminated by the President,

25 whichever occurs first. If the Congress, within 60
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1 days after the date of its receipt of such report, fails

2 to adopt a joint resolution approving such controls,

3 then such controls shall cease to be effective upon

4 the expiration of that 60-day period.

5 (B) The provisions of subparagraph (A) and

6 paragraph (4) shall not apply to export controls—

7 (i) which are extended under this title if

8 the controls, when imposed, were approved by

9 the Congress under subparagraph (A) and

10 paragraph (4); or

11 (ii) which are imposed with respect to a

12 country as part of the prohibition or curtail13 ment of all exports to that country.

14 (4) EXPEDITED PROCEDURES.—(A) For pur15 poses of this paragraph, the term ‘‘joint resolution’’

16 means only a joint resolution the matter after the

17 resolving clause of which is as follows: ‘‘That pursu18 ant to section 107(g)(3) of the Export Act of 1994,

19 the President may impose export controls as speci20 fied in the report submitted to the Congress on

21 lll.’’, with the blank space being filled with the

22 appropriate date.

23 (B) On the day on which a report is submitted

24 to the House of Representatives and the Senate

25 under paragraph (3), a joint resolution with respect
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1 to the export controls specified in such report shall

2 be introduced (by request) in the House by the

3 chairman of the Committee on Foreign Affairs, for

4 the chairman and the ranking minority member of

5 the Committee, or by Members of the House des6 ignated by the chairman and ranking minority mem7 ber; and shall be introduced (by request) in the Sen8 ate by the majority leader of the Senate, for the

9 chairman and the minority leader of the Senate, or

10 by Members of the Senate designated by the major11 ity leader and minority leader of the Senate. If ei12 ther House is not in session on the day on which

13 such a report is submitted, the joint resolution shall

14 be introduced in that House, as provided in the pre15 ceding sentence, on the first day thereafter on which

16 that House is in session.

17 (C) If the committee of either House to which

18 a joint resolution has been referred has not reported

19 the joint resolution at the end of 30 days after its

20 referral, the committee shall be discharged from fur21 ther consideration of the resolution or of any other

22 joint resolution introduced with respect to the same

23 matter.

24 (D) A joint resolution under this paragraph

25 shall be considered in the Senate in accordance with
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1 the provisions of section 601(b)(4) of the Inter2 national Security Assistance and Arms Export Con3 trol Act of 1976. For the purpose of expediting the

4 consideration and passage of joint resolutions re5 ported or discharged pursuant to the provisions of

6 this paragraph, it shall be in order for the Commit7 tee on Rules of the House of Representatives to

8 present for consideration a resolution of the House

9 of Representatives providing procedures for the im10 mediate consideration of a joint resolution under

11 this paragraph which may be similar, if applicable,

12 to the procedure set forth in section 601(b)(4) of the

13 International Security Assistance and Arms Export

14 Control Act of 1976.

15 (E) In the case of a joint resolution described

16 in subparagraph (A), if, before the passage by one

17 House of a joint resolution of that House, that

18 House receives a resolution with respect to the same

19 matter from the other House, then—

20 (i) the procedure in that House shall be

21 the same as if no joint resolution has been re22 ceived from the other House; but

23 (ii) the vote on final passage shall be on

24 the joint resolution of the other House.
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1 (5) COMPUTATION OF TIME PERIODS.—In the

2 computation of the period of 60 days referred to in

3 paragraph (3)(A) and the period of 30 days referred

4 to in paragraph (4)(C), there shall be excluded the

5 days on which either House of Congress is not in

6 session because of an adjournment of more than 3

7 days to a day certain or because of an adjournment

8 of the Congress sine die.

9 (h) BARTER AGREEMENTS.—

10 (1) EXEMPTION FROM CONTROLS.—The expor11 tation pursuant to a barter agreement of any com12 modities which may lawfully be exported from the

13 United States, for any commodities which may law14 fully be imported into the United States, may be ex15 empted, in accordance with paragraph (2), from any

16 quantitative limitation on exports (other than any

17 reporting requirement) imposed to carry out the pol18 icy set forth in section 103(4).

19 (2) CRITERIA FOR EXEMPTION.—The Secretary

20 shall grant an exemption under paragraph (1) if the

21 Secretary finds, after consultation with the appro22 priate department or agency of the United States,

23 that—

24 (A) for the period during which the barter

25 agreement is to be performed—
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1 (i) the average annual quantity of the

2 commodities to be exported pursuant to

3 the barter agreement will not be required

4 to satisfy the average amount of such com5 modities estimated to be required annually

6 by the domestic economy and will be sur7 plus thereto; and

8 (ii) the average annual quantity of the

9 commodities to be imported will be less

10 than the average amount of such commod11 ities estimated to be required annually to

12 supplement domestic production; and

13 (B) the parties to such barter agreement

14 have demonstrated adequately that they intend,

15 and have the capacity, to perform such barter

16 agreement.

17 (3) DEFINITION.—For purposes of this sub18 section, the term ‘‘barter agreement’’ means any

19 agreement which is made for the exchange, without

20 monetary consideration, of any commodities pro21 duced in the United States for any commodities pro22 duced outside of the United States.

23 (4) APPLICABILITY.—This subsection shall

24 apply only with respect to barter agreements entered

25 into after September 30, 1979.
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1 (i) UNPROCESSED RED CEDAR.—

2 (1) PROHIBITION.—No unprocessed western red

3 cedar (Thuja plicata) logs harvested from State or

4 Federal lands may be exported from the United

5 States.

6 (2) RED CEDAR NOT AN AGRICULTURAL COM7 MODITY.—Unprocessed western red cedar logs shall

8 not be considered to be an agricultural commodity

9 for purposes of subsection (g).

10 (3) DEFINITION.—As used in this subsection,

11 the term ‘‘unprocessed western red cedar’’ means

12 red cedar timber which has not been processed

13 into—

14 (A) lumber of American Lumber Stand15 ards Grades of Number 3 dimension or better,

16 or Pacific Lumber Inspection Bureau Export

17 R-List Grades of Number 3 common or better;

18 (B) chips, pulp, and pulp products;

19 (C) veneer and plywood;

20 (D) poles, posts, or pilings cut or treated

21 with preservative for use as such and not in22 tended to be further processed; or

23 (E) shakes and shingles.

24 (j) EFFECT OF CONTROLS ON EXISTING CON25 TRACTS.—
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1 (1) WESTERN RED CEDAR.—The export restric2 tions contained in subsection (i) and any export con3 trols imposed under this section shall not affect—

4 (A) any contract to harvest unprocessed

5 western red cedar from State lands which was

6 entered into before October 1, 1979, and the

7 performance of which would make the red cedar

8 available for export; or

9 (B) any contract to harvest unprocessed

10 red cedar which was entered into after Septem11 ber 30, 1979, and before October 1, 1982, and

12 the performance of which would make the red

13 cedar available for export, to the extent such

14 exports were permitted under section 7(i) of the

15 Export Administration Act of 1979.

16 (2) OTHER COMMODITIES.—Any export controls

17 imposed under this section on any agricultural com18 modity (including fats, oils, and animal hides and

19 skins), or on any forest product or fishery product,

20 shall not affect any contract to export entered into

21 before the date on which such controls are imposed.

22 For purposes of this paragraph, the term ‘‘contract

23 to export’’ includes, but is not limited to, an export

24 sales agreement and an agreement to invest in an
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1 enterprise which involves the export of commodities

2 or technology.

3 (k) OIL EXPORTS FOR USE BY UNITED STATES

4 MILITARY FACILITIES.—For purposes of subsection (d),

5 and for purposes of any export controls imposed under

6 this title, shipments of crude oil, refined petroleum prod7 ucts, or partially refined petroleum products from the

8 United States for use by the Department of Defense or

9 United States-supported installations or facilities shall not

10 be considered to be exports.

11 SEC. 108. FOREIGN BOYCOTTS.

12 (a) PROHIBITIONS AND EXCEPTIONS.—

13 (1) PROHIBITIONS.—In order to carry out the

14 policies set forth in section 103(10), the President

15 shall issue regulations prohibiting any United States

16 person, with respect to that person’s activities in the

17 interstate or foreign commerce of the United States,

18 from taking or knowingly agreeing to take any of

19 the following actions with intent to comply with, fur20 ther, or support any boycott fostered or imposed by

21 a foreign country against a country which is friendly

22 to the United States and which is not itself the ob23 ject of any form of boycott pursuant to United

24 States law or regulation:
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1 (A) Refusing, or requiring any other per2 son to refuse, to do business with or in the boy3 cotted country, with any business concern orga4 nized under the laws of the boycotted country,

5 with any national or resident of the boycotted

6 country, or with any other person, pursuant to

7 an agreement with, a requirement of, or a re8 quest from or on behalf of the boycotting coun9 try. The mere absence of a business relationship

10 with or in the boycotted country with any busi11 ness concern organized under the laws of the

12 boycotted country, with any national or resident

13 of the boycotted country, or with any other per14 son, does not indicate the existence of the in15 tent required to establish a violation of regula16 tions issued to carry out this subparagraph.

17 (B) Refusing, or requiring any other per18 son to refuse, to employ or otherwise discrimi19 nating against any United States person on the

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

21 that person or of any owner, officer, director, or

22 employee of such person.

23 (C) Furnishing information with respect to

24 the race, religion, sex, or national origin of any
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1 United States person or of any owner, officer,

2 director, or employee of such person.

3 (D) Furnishing information about whether

4 any person has, has had, or proposes to have

5 any business relationship (including a relation6 ship by way of sale, purchase, legal or commer7 cial representation, shipping or other transport,

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

9 boycotted country, with any business concern

10 organized under the laws of the boycotted coun11 try, with any national or resident of the boy12 cotted country, or with any other person that is

13 known or believed to be restricted from having

14 any business relationship with or in the boy15 cotted country. Nothing in this paragraph shall

16 prohibit the furnishing of normal business in17 formation in a commercial context as defined by

18 the Secretary.

19 (E) Furnishing information about whether

20 any person is a member of, has made a con21 tribution to, or is otherwise associated with or

22 involved in the activities of any charitable or

23 fraternal organization which supports the boy24 cotted country.
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1 (F) Paying, honoring, confirming, or other2 wise implementing a letter of credit which con3 tains any condition or requirement compliance

4 with which is prohibited by regulations issued

5 pursuant to this paragraph, and no United

6 States person shall, as a result of the applica7 tion of this paragraph, be obligated to pay or

8 otherwise honor or implement such letter of

9 credit.

10 (2) EXCEPTIONS.—Regulations issued pursuant

11 to paragraph (1) shall provide exceptions for—

12 (A) complying or agreeing to comply with

13 requirements—

14 (i) prohibiting the import of commod15 ities or services from the boycotted country

16 or commodities produced or services pro17 vided by any business concern organized

18 under the laws of the boycotted country or

19 by nationals or residents of the boycotted

20 country; or

21 (ii) prohibiting the shipment of com22 modities to the boycotted country on a car23 rier of the boycotted country, or by a route

24 other than that prescribed by the boycott-
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1 ing country or the recipient of the ship2 ment;

3 (B) complying or agreeing to comply with

4 import and shipping document requirements

5 with respect to the country of origin, the name

6 of the carrier and route of shipment, the name

7 of the supplier of the shipment, or the name of

8 the provider of other services, except that no in9 formation knowingly furnished or conveyed in

10 response to such requirements may be stated in

11 negative, blacklisting, or similar exclusionary

12 terms, other than with respect to carriers or

13 route of shipment as may be permitted by such

14 regulations in order to comply with precaution15 ary requirements protecting against war risks

16 and confiscation;

17 (C) complying or agreeing to comply in the

18 normal course of business with the unilateral

19 and specific selection by a boycotting country,

20 or national or resident thereof, of carriers, in21 surers, suppliers of services to be performed

22 within the boycotting country, or specific com23 modities which, in the normal course of busi24 ness, are identifiable by source when imported

25 into the boycotting country;
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1 (D) complying or agreeing to comply with

2 export requirements of the boycotting country

3 relating to shipments or transshipment of ex4 ports to the boycotted country, to any business

5 concern of or organized under the laws of the

6 boycotted country, or to any national or resi7 dent of the boycotted country;

8 (E) compliance by an individual or agree9 ment by an individual to comply with the immi10 gration or passport requirements of any country

11 with respect to such individual or any member

12 of such individual’s family or with requests for

13 information regarding requirements of employ14 ment of such individual within the boycotting

15 country; and

16 (F) compliance by a United States person

17 resident in a foreign country or agreement by

18 such person to comply with the laws of the

19 country with respect to such person’s activities

20 exclusively therein, and such regulations may

21 contain exceptions for such resident complying

22 with the laws or regulations of the foreign coun23 try governing imports into such country of

24 trademarked, trade named, or similarly specifi25 cally identifiable products, or components of
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1 products for such person’s own use, including

2 the performance of contractual services within

3 that country, as may be defined by such regula4 tions.

5 (3) LIMITATION ON EXCEPTIONS.—Regulations

6 issued pursuant to paragraphs (2)(C) and (2)(F)

7 shall not provide exceptions from paragraphs (1)(B)

8 and (1)(C).

9 (4) ANTITRUST AND CIVIL RIGHTS LAWS NOT

10 AFFECTED.—Nothing in the subsection may be con11 strued to supersede or limit the operation of the

12 antitrust or civil rights laws of the United States.

13 (5) EVASION.—This section shall apply to any

14 transaction or activity undertaken, by or through a

15 United States person or any other person, with in16 tent to evade the provisions of this section as imple17 mented by the regulations issued pursuant to this

18 subsection, and such regulations shall expressly pro19 vide that the exceptions set forth in paragraph (2)

20 shall not permit activities or agreements (expressed

21 or implied by a course of conduct, including a pat22 tern of responses) otherwise prohibited, which are

23 not within the intent of such exceptions.

24 (b) EMERGENCY CONTROLS.—
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1 (1) REGULATIONS.—In addition to the regula2 tions issued pursuant to subsection (a), regulations

3 issued under section 106 shall implement the policies

4 set forth in section 103(10).

5 (2) REPORTS BY UNITED STATES PERSONS.—

6 Such regulations shall require that any United

7 States person receiving a request for the furnishing

8 of information, the entering into or implementing of

9 agreements, or the taking of any other action re10 ferred to in section 103(10) shall report that fact to

11 the Secretary, together with such other information

12 concerning such request as the Secretary may re13 quire, for such action as the Secretary considers ap14 propriate for carrying out the policies of that sec15 tion. Such person shall also report to the Secretary

16 whether such person intends to comply and whether

17 such person has complied with such request. Any re18 port filed pursuant to this paragraph shall be made

19 available promptly for public inspection and copying,

20 except that information regarding the quantity, de21 scription, and value of any commodities or tech22 nology to which such report relates may be kept con23 fidential if the Secretary determines that disclosure

24 thereof would place the United States person in25 volved at a competitive disadvantage. The Secretary
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1 shall periodically transmit summaries of the infor2 mation contained in such reports to the Secretary of

3 State for such action as the Secretary of State, in

4 consultation with the Secretary, considers appro5 priate for carrying out the policies set forth in sec6 tion 103(10).

7 (c) PREEMPTION.—The provisions of this section and

8 the regulations issued under this section shall preempt any

9 law, rule, or regulation which—

10 (1) is a law, rule, or regulation of any of the

11 several States or the District of Columbia, or any of

12 the territories or possessions of the United States,

13 or of any governmental subdivision thereof; and

14 (2) pertains to participation in, compliance

15 with, implementation of, or the furnishing of infor16 mation regarding restrictive trade practices or boy17 cotts fostered or imposed by foreign countries

18 against other countries.

19 SEC. 109. PROCEDURES FOR PROCESSING EXPORT LI20 CENSE APPLICATIONS; OTHER INQUIRIES.

21 (a) PRIMARY RESPONSIBILITY OF THE SEC22 RETARY.—

23 (1) IN GENERAL.—All export license applica24 tions required under this title shall be submitted by

25 the applicant to the Secretary. All determinations
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1 with respect to any such application shall be made

2 by the Secretary, subject to the procedures provided

3 in this section.

4 (2) REGULATIONS.—In regulations that carry

5 out this section, the Secretary shall describe the pro6 cedures required by this section, the responsibilities

7 of the Secretary and of other departments and agen8 cies in reviewing applications, the rights of the appli9 cant, and the extent of any multilateral review of a

10 given license application.

11 (3) CALCULATION OF TIME PERIODS.—In cal12 culating the processing times set forth in this sec13 tion, the Secretary shall use calendar days, except

14 that if the final day for a required action falls on a

15 weekend or holiday, that action shall be taken no

16 later than the following business day.

17 (4) CONSIDERATION OF RELIABILITY OF PAR18 TIES.—In reviewing applications for validated export

19 licenses, the Secretary may in each case consider the

20 reliability of the parties to the proposed export. In

21 making such an evaluation, the Secretary may con22 sider all sources of information, including intel23 ligence information. The consideration of intelligence

24 information in connection with the evaluation of the

25 reliability of parties shall not authorize the direct or
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1 indirect disclosure of classified information or

2 sources and methods of gathering classified informa3 tion.

4 (b) ACTION BY OTHER DEPARTMENTS AND AGEN5 CIES.—

6 (1) REFERRALS.—(A) At the direction of the

7 President, the Secretary shall refer appropriate li8 cense applications required under section 105 or 106

9 to appropriate departments and agencies of the Gov10 ernment to make recommendations and provide in11 formation to the Secretary on such applications.

12 (B) The President shall restrict referrals of li13 cense applications to Government departments and

14 agencies that possess particular expertise and infor15 mation that is relevant to the licensing process and

16 is not possessed by the Secretary.

17 (2) ORGANIZATION OF REVIEWING AGENCIES.—

18 Departments and agencies reviewing license applica19 tions shall organize their resources and units to plan

20 for the prompt and expeditious internal dissemina21 tion of export license applications, if necessary, so as

22 to avoid delays in responding to the Secretary’s re23 quest for information and recommendations.

24 (3) REQUESTS FOR ADDITIONAL INFORMA25 TION.—Within 5 days after an export license appli-
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1 cation is referred to a department or agency under

2 this subsection, the agency or department shall

3 specify to the Secretary all information that is not

4 in the application that would be required to respond

5 to the referral of the application, and the Secretary

6 shall, pursuant to subsection (d)(1)(C), request such

7 information from the applicant. The time that may

8 elapse between the date the information is requested

9 from the applicant and the date the information is

10 received by the Secretary shall not be included in

11 calculating the time periods prescribed in this sec12 tion.

13 (c) ACTION BY THE SECRETARY.—Subject to sub14 section (d)(4), 30 days after the date of formal filing with

15 the Secretary of an export license application, a license

16 for the transaction specified in the application shall be17 come valid and effective and the commodities or tech18 nology involved are authorized for export or reexport pur19 suant to such license, unless—

20 (1) the application has been otherwise approved

21 by the Secretary, in which case it shall be valid and

22 effective according to the terms of the approval; or

23 (2) the application has been denied by the Sec24 retary under this section and the applicant has been

25 so informed.
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1 (d) PROCEDURES FOR PROCESSING EXPORT LI2 CENSE APPLICATIONS.—

3 (1) INITIAL SCREENING.—Not more than 10

4 days after the date on which any export license ap5 plication is submitted to the Secretary, the Secretary

6 shall—

7 (A) send the applicant an acknowledgment

8 of the receipt of the application and the date of

9 the receipt;

10 (B) submit to the applicant a written de11 scription of the procedures required by this sec12 tion, the responsibilities of the Secretary with

13 respect to the application, and the rights of the

14 applicant;

15 (C) on the basis of information the Sec16 retary has, including information provided to

17 the Secretary under subsection (b)(3), return

18 the application without action if the application

19 is improperly completed or if additional infor20 mation is required, with sufficient information

21 to permit the application to be properly resub22 mitted; and

23 (D) determine whether it is necessary to

24 submit the application to a multilateral review

25 process pursuant to an export control regime
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1 and, if so, inform the applicant of such require2 ment.

3 (2) REFERRAL.—(A) If, pursuant to criteria es4 tablished by the President, the Secretary is to refer

5 an export license application to any other depart6 ment or agency for a recommendation under sub7 section (b)(1), the Secretary shall, within 2 days

8 after receiving the application, refer the application

9 concurrently to all such departments or agencies,

10 transmitting the application electronically whenever

11 possible. A department or agency reviewing an ex12 port license application referred by the Secretary

13 shall have 10 days in which to submit to the Sec14 retary its recommendations on the application. Any

15 department or agency which does not submit its rec16 ommendations within that 10-day period shall be

17 deemed by the Secretary to have no objection to the

18 approval of such application.

19 (B) A recommendation that the Secretary deny

20 a validated license shall include a statement of rea21 sons for the recommendation that are consistent

22 with the provisions of this title, and shall cite both

23 the statutory and the regulatory basis for the rec24 ommendation.
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1 (3) INTERAGENCY COMMITTEE.—An inter2 agency committee may be established by the Presi3 dent for the purpose of resolving disputes among de4 partments and agencies on export license applica5 tions under this title. Such committee shall be

6 chaired by the Secretary. The procedures followed by

7 such interagency committee shall provide—

8 (A) deadlines for decisions within the

9 interagency committee consistent with the duty

10 of the Secretary to reach his or her final deci11 sion on an application within 30 days after the

12 date of filing of the license application;

13 (B) that a department or agency dissent14 ing from the position of the Secretary shall

15 have the burden to bring the issue in writing to

16 the next level of review provided within the

17 interagency committee and may only dissent on

18 the basis of the criteria set forth in section

19 105(c)(1)(D) or section 106(a)(4); and

20 (C) that a department or agency that fails

21 to make a timely escalation of a disputed mat22 ter shall be deemed to have no objection to the

23 decision of the Secretary.

24 (4) ACTIONS BY THE SECRETARY.—(A) When a

25 referral of a license application to other departments
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1 or agencies is not required, the Secretary shall issue

2 a license or notify the applicant of the intent to deny

3 within 10 days after receiving the application.

4 (B) If an application is to be denied because

5 the export would be made to a controlled end user,

6 no referral to other departments or agencies is re7 quired, and the applicant shall be informed of the

8 reason for the denial.

9 (5) ACTION UPON DENIAL.—In cases in which

10 the Secretary has determined that a license applica11 tion should be denied, the applicant shall be in12 formed in writing, not later than 3 days after such

13 determination is made, of—

14 (A) the determination;

15 (B) the statutory and regulatory basis for

16 the proposed denial;

17 (C) the reasons for such denial, with ref18 erences to the criteria set forth in section 105,

19 106, or 107 (as the case may be);

20 (D) what, if any, modifications in, or re21 strictions on, the commodities or technology for

22 which the license was sought would allow the

23 export or reexport of the commodities or tech24 nology to be compatible with controls imposed

25 under this title;
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1 (E) which officers and employees of the

2 Department of Commerce who are familiar with

3 the application will be made reasonably avail4 able to the applicant for considerations with re5 gard to such modifications or restrictions, if ap6 propriate;

7 (F) to the extent consistent with the na8 tional security and foreign policy of the United

9 States, the specific considerations which led to

10 the determination to deny the application; and

11 (G) the availability of appeal procedures.

12 The Secretary shall allow the applicant not less than

13 30 days to respond to the Secretary’s determination

14 before the license application is finally denied.

15 (e) RECORDKEEPING.—The Secretary shall make and

16 keep records of all advice and recommendations given by

17 Federal departments and agencies, and decisions made by

18 the Department of Commerce, in connection with any ex19 port license application or revision of an export license ap20 plication under this title, including the factual and analyt21 ical basis of the advice, recommendations, or decisions.

22 (f) CHANGES IN REQUIREMENTS FOR APPLICA23 TIONS.—Except as provided in subsection (d), in any case

24 in which, after an export license application is submitted,

25 the Secretary changes the requirements for such a license
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1 application, the Secretary may request appropriate addi2 tional information of the applicant, but the Secretary may

3 not return the application to the applicant without action

4 because it fails to meet the changed requirements.

5 (g) APPEALS.—The Secretary shall establish appro6 priate procedures for any applicant to appeal to the Sec7 retary the denial of an export license application under

8 this title.

9 (h) OTHER INQUIRIES.—

10 (1) CLASSIFICATION REQUESTS.—In any case

11 in which the Secretary receives a written request for

12 the proper classification of a commodity or tech13 nology on the control index, the Secretary shall, not

14 more than 10 working days after receiving the re15 quest, inform the person making the request of the

16 proper classification.

17 (2) APPLICABILITY OF REQUIREMENTS.—In

18 any case in which the Secretary receives a written

19 request for information about the applicability of ex20 port license requirements under this title to a pro21 posed transaction or series of transactions, the Sec22 retary shall, not more than 30 days after receiving

23 the request, reply with that information to the per24 son making the request.
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1 (3) PUBLICATION OF CLASSIFICATION DETER2 MINATIONS.—The Secretary shall, to the greatest

3 extent practicable, taking into account restrictions

4 on the disclosure of classified or confidential infor5 mation, publish in the Federal Register classification

6 determinations made under paragraph (1).

7 (i) REPORTS ON LICENSE APPLICATIONS.—

8 (1) QUARTERLY REPORT.—Not later than 180

9 days after the date of the enactment of this Act, and

10 not later than the end of each 3-month period there11 after, the Secretary shall submit to the Committee

12 on Foreign Affairs of the House of Representatives

13 and to the Committee on Banking, Housing, and

14 Urban Affairs of the Senate a report listing all ap15 plications on which action was completed during the

16 preceding 3-month period and which required a pe17 riod longer than the period permitted under sub18 section (c) or (d)(4), as the case may be, before noti19 fication on a decision to approve or deny the applica20 tion was sent to the applicant.

21 (2) INFORMATION ON LICENSE APPLICA22 TIONS.—With regard to each application, each list23 ing shall identify—

24 (A) the application case number;
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1 (B) the value of the commodities or tech2 nology to which the application relates;

3 (C) the country of destination of the com4 modities or technology;

5 (D) the date on which the application was

6 received by the Secretary;

7 (E) the date on which the Secretary ap8 proved or denied the application; and

9 (F) the date on which the notification of

10 approval or denial of the application was sent to

11 the applicant.

12 (3) INTRODUCTION TO REPORT.—With respect

13 to an application referred to any other department

14 or agency which did not submit or has not submitted

15 its recommendations on the application within the

16 period permitted under subsection (d)(2) to submit

17 such recommendations, the listing shall also in18 clude—

19 (A) the office responsible for processing

20 the application and the officer responsible for

21 the office; and

22 (B) the period of time that elapsed before

23 the recommendations were submitted or that

24 has elapsed since referral of the application, as

25 the case may be.
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1 SEC. 110. VIOLATIONS.

2 (a) CRIMINAL PENALTIES.—

3 (1) VIOLATIONS BY AN INDIVIDUAL.—Any indi4 vidual who knowingly violates or conspires to or at5 tempts to violate any provision of this title or any

6 regulation, license, or order issued under this title

7 shall be fined not more than 5 times the value of the

8 exports involved or $500,000, whichever is greater,

9 or imprisoned not more than 10 years, or both.

10 (2) VIOLATIONS BY A PERSON OTHER THAN AN

11 INDIVIDUAL.—Any person other than an individual

12 who knowingly violates or conspires to or attempts

13 to violate any provision of this title or any regula14 tion, license, or order issued under this title shall be

15 fined not more than 10 times the value of the ex16 ports involved or $1,000,000, whichever is greater.

17 (b) FORFEITURE OF PROPERTY INTEREST AND PRO18 CEEDS.—

19 (1) FORFEITURE.—Any person who is convicted

20 under subsection (a) (1) or (2) shall, in addition to

21 any other penalty, forfeit to the United States—

22 (A) any of that person’s interest in, secu23 rity of, claim against, or property or contractual

24 rights of any kind in the commodities or tan25 gible items that were the subject of the viola26 tion;
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1 (B) any of that person’s interest in, secu2 rity of, claim against, or property or contractual

3 rights of any kind in tangible property that was

4 used in the export or attempt to export that

5 was the subject of the violation; and

6 (C) any of that person’s property con7 stituting, or derived from, any proceeds ob8 tained directly or indirectly as a result of the

9 violation.

10 (2) PROCEDURES.—The procedures in any for11 feiture under this subsection, and the duties and au12 thority of the courts of the United States and the

13 Attorney General with respect to any forfeiture ac14 tion under this subsection or with respect to any

15 property that may be subject to forfeiture under this

16 subsection, shall be governed by the provisions of

17 section 1963 of title 18, United States Code.

18 (c) CIVIL PENALTIES; ADMINISTRATIVE SANC19 TIONS.—

20 (1) CIVIL PENALTIES.—The Secretary may im21 pose a civil penalty of not more than $250,000 for

22 each violation of this title or any regulation, license,

23 or order issued under this title, either in addition to

24 or in lieu of any other liability or penalty which may

25 be imposed, except that the civil penalty for each
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1 such violation of regulations issued under section

2 108 may not exceed $50,000.

3 (2) DENIAL OF EXPORT PRIVILEGES.—The Sec4 retary may deny the export privileges of any person,

5 including suspending or revoking the authority of

6 any person to export or receive United States-origin

7 commodities or technology, on account of any viola8 tion of this title or any regulation, license, or order

9 issued under this title.

10 (d) PAYMENT OF CIVIL PENALTIES.—The payment

11 of any civil penalty imposed under subsection (c) may be

12 made a condition, for a period not exceeding 1 year after

13 the penalty has become due but has not been paid, to the

14 granting, restoration, or continuing validity of any export

15 license, permission, or privilege granted or to be granted

16 to the person upon whom such penalty is imposed. In addi17 tion, the payment of any civil penalty imposed under sub18 section (c) may be deferred or suspended in whole or in

19 part for a period of time no longer than any probation

20 period (which may exceed 1 year) that may be imposed

21 upon such person. Such deferral or suspension shall not

22 operate as a bar to the collection of the penalty in the

23 event that the conditions of the suspension, deferral, or

24 probation are not fulfilled.
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1 (e) REFUNDS.—Any amounts realized from the for2 feiture of any property interest or proceeds under sub3 section (b), and any amount paid in satisfaction of any

4 civil penalty imposed under subsection (c) shall be covered

5 into the Treasury as a miscellaneous receipt. The head

6 of the department or agency concerned may, in his or her

7 discretion, refund any such civil penalty imposed under

8 subsection (c), within 2 years after payment, on the

9 ground of a material error of fact or law in the imposition

10 of the penalty. Notwithstanding section 1346(a) of title

11 28, United States Code, no action for the refund of any

12 such penalty may be maintained in any court.

13 (f) EFFECT OF OTHER CONVICTIONS.—

14 (1) DENIAL OF EXPORT PRIVILEGES.—Any per15 son convicted of a violation of—

16 (A) this title or the Export Administration

17 Act of 1979 (or any regulation, license, or order

18 issued under this title or that Act),

19 (B) any regulation, license, or order issued

20 under the International Emergency Economic

21 Powers Act,

22 (C) section 793, 794, or 798 of title 18,

23 United States Code,

24 (D) section 371 or 1001 of title 18, United

25 States Code, if in connection with the export of
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1 commodities or technology controlled under this

2 title, or defense articles or defense services con3 trolled under the Arms Export Control Act,

4 (E) section 4(a) of the Internal Security

5 Act of 1950 (50 U.S.C. 783(a)), or

6 (F) section 38 of the Arms Export Control

7 Act,

8 may, at the discretion of the Secretary, be denied ex9 port privileges under this title for a period of up to

10 10 years from the date of the conviction. The Sec11 retary may also revoke any export license under this

12 title in which such person had an interest at the

13 time of the conviction.

14 (2) RELATED PERSONS.—The Secretary may

15 exercise the authority under paragraph (1) with re16 spect to any person related, through affiliation, own17 ership, control, or position of responsibility, to any

18 person convicted of any violation of a law set forth

19 in paragraph (1), upon a showing of such relation20 ship with the convicted person, after providing notice

21 and opportunity for a hearing.

22 (g) STATUTE OF LIMITATIONS.—Any proceeding in

23 which a civil penalty or other administrative sanction

24 (other than a temporary denial order) is sought under sub25 section (c) may not be instituted more than 5 years after
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1 the date of the alleged violation, except that, in any case

2 in which a criminal indictment alleging a violation of this

3 title is returned within the time limits prescribed by law

4 for the institution of such action, the statute of limitations

5 for bringing a proceeding to impose such a civil penalty

6 or other administrative sanction under this title shall,

7 upon the return of the criminal indictment, be tolled

8 against all persons named as a defendant. The tolling of

9 the statute of limitations shall continue for a period of

10 6 months from the date a conviction becomes final or the

11 indictment is dismissed.

12 (h) VIOLATIONS DEFINED BY REGULATION.—Noth13 ing in this section shall limit the power of the Secretary

14 to define by regulation violations under this title.

15 (i) OTHER AUTHORITIES.—Nothing in subsection

16 (c), (d), (f), or (g) limits—

17 (1) the availability of other administrative or

18 judicial remedies with respect to violations of this

19 title, or any regulation, order, or license issued

20 under this title;

21 (2) the authority to compromise and settle ad22 ministrative proceedings brought with respect to any

23 such violation; or

24 (3) the authority to compromise, remit, or miti25 gate seizures and forfeitures pursuant to section
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1 1(b) of title VI of the Act of June 15, 1917 (22

2 U.S.C. 401(b)).

3 (j) PRIVATE RIGHT OF ACTION.—Any person injured

4 in his or her business or property by reason of a violation

5 of the regulations issued pursuant to section 108(a) may

6 sue therefor in any appropriate United States district

7 court against the United States person committing the

8 violation and shall recover the damages such person sus9 tains and the cost of the suit, including a reasonable attor10 ney’s fee. In any such action the court may award punitive

11 damages. An action may be brought under this subsection

12 against a United States person whether or not the United

13 States person has been determined under this section to

14 have violated the regulations issued pursuant to section

15 108(a) on account of which the action is brought.

16 SEC. 111. CONTROLLING PROLIFERATION ACTIVITY.

17 (a) ESTABLISHMENT OF PROLIFERATION LISTS.—

18 (1) ESTABLISHMENT OF CHEMICAL AND BIO19 LOGICAL WEAPONS CONTROL LIST UNDER THIS

20 TITLE.—

21 (A) IN GENERAL.—The Secretary, in con22 sultation with the Secretary of State, the Sec23 retary of Defense, and the heads of other ap24 propriate departments and agencies, shall es-
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1 tablish and maintain a list of all dual use com2 modities and technology—

3 (i) that would directly and substan4 tially assist a foreign government, group,

5 entity, or project in acquiring the capabil6 ity to develop, produce, stockpile, or deliver

7 chemical or biological weapons; and

8 (ii) the licensing of which would be ef9 fective in barring the acquisition or en10 hancement of such capability.

11 The list shall include those dual use commod12 ities and technology controlled pursuant to the

13 Australia Group or any other multilateral ex14 port control regime that seeks to prevent the

15 proliferation of chemical or biological weapons.

16 (B) REQUIREMENT FOR VALIDATED LI17 CENSES.—Subject to the provisions of this title,

18 the Secretary shall require a validated license

19 for any export of commodities or technology on

20 the list established under subparagraph (A) to

21 any country of concern.

22 (C) COUNTRY OF CONCERN.—For pur23 poses of subparagraph (B), the term ‘‘country

24 of concern’’ means any country other than—
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1 (i) a country with whose government

2 the United States has entered into a bilat3 eral or multilateral arrangement for the

4 control of commodities or technology on

5 the list established under subparagraph

6 (A); and

7 (ii) such other countries as the Sec8 retary of State, in consultation with the

9 Secretary and the Secretary of Defense,

10 shall designate consistent with the pur11 poses of this section.

12 (2) ESTABLISHMENT OF MISSILE TECHNOLOGY

13 CONTROL LIST UNDER THIS TITLE.—

14 (A) IN GENERAL.—The Secretary, in con15 sultation with the Secretary of State, the Sec16 retary of Defense, and the heads of other ap17 propriate departments and agencies—

18 (i) shall establish and maintain a list

19 of all dual use commodities and technology

20 on the MTCR Annex; and

21 (ii) may include on that list any com22 modities or technology that would provide

23 a direct and significant impact on the de24 velopment of missile delivery systems.
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1 (B) REQUIREMENT OF INDIVIDUAL VALI2 DATED LICENSES.—Subject to the provisions of

3 this title, the Secretary shall require an individ4 ual validated license for—

5 (i) any export of commodities or tech6 nology on the list established under sub7 paragraph (A) to any country; and

8 (ii) any export of commodities or tech9 nology that the exporter knows is destined

10 for a project or facility for the design, de11 velopment, or manufacture of a missile in

12 a country that is not an MTCR adherent.

13 (C) POLICY OF DENIAL OF LICENSES.—(i)

14 Licenses under subparagraph (B) should in

15 general be denied if the ultimate consignee of

16 the commodities or technology is a facility in a

17 country that is not an MTCR adherent and the

18 facility is designed to develop or build missiles.

19 (ii) Licenses under subparagraph (B) shall

20 be denied if the ultimate consignee of the com21 modities or technology is a facility in a country

22 the government of which has been determined

23 under section 106(i)(1) to have repeatedly pro24 vided support for acts of international terror25 ism.
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1 (D) DEFINITION.—For purposes of this

2 paragraph, the term ‘‘MTCR adherent’’ means

3 a country that participates in the MTCR or

4 that, pursuant to an international understand5 ing to which the United States is a party, con6 trols MTCR equipment or technology in accord7 ance with the criteria and standards set forth

8 in the MTCR.

9 (b) ESTABLISHMENT OF LISTS UNDER ARMS EX10 PORT CONTROL ACT.—

11 (1) CHEMICAL AND BIOLOGICAL WEAPONS

12 LIST.—Section 81 of the Arms Export Control Act

13 (22 U.S.C. 2798) is amended to read as follows:

14 ‘‘SEC. 81. ESTABLISHMENT OF CHEMICAL AND BIOLOGICAL

15 WEAPONS CONTROL LIST

16 ‘‘(a) IN GENERAL.—The Secretary of State, in con17 sultation with the Secretary of Defense, and the heads of

18 other appropriate departments and agencies, shall estab19 lish and maintain, as part of the United States Munitions

20 List, a list of items—

21 ‘‘(1) that would directly and substantially assist

22 a foreign government, group, entity, or project in ac23 quiring the capability to develop, produce, stockpile,

24 or deliver chemical or biological weapons;
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1 ‘‘(2) the licensing of which would be effective in

2 barring the acquisition or enhancement of such ca3 pability; and

4 ‘‘(3) the export of which is not subject to con5 trol under section 111(a)(1) of the Export Act of

6 1994.

7 The list shall include those items, not subject to control

8 under section 111(a)(1) of the Export Act of 1994, that

9 are controlled pursuant to the Australia Group or any

10 other multilateral export control regime that seeks to pre11 vent the proliferation of chemical or biological weapons.

12 ‘‘(b) REQUIREMENT FOR LICENSES.—The Secretary

13 of State shall require a license for any export of items

14 on the list established under subsection (a).

15 ‘‘(c) DEFINITIONS.—For purposes of this section, the

16 terms ‘multilateral export control regime’ and ‘Australia

17 Group’ have the meanings given those terms in section

18 116 of the Export Act of 1994.’’.

19 (2) MISSILE TECHNOLOGY CONTROL LIST.—

20 Section 71 of the Arms Export Control Act (22

21 U.S.C. 2797) is amended to read as follows:

22 ‘‘SEC. 71. LICENSING.

23 ‘‘(a) ESTABLISHMENT OF MISSILE TECHNOLOGY

24 CONTROL LIST.—The Secretary of State, in consultation

25 with the Secretary of Defense and the heads of other ap-
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1 propriate departments and agencies, shall establish and

2 maintain a list of all items, which shall include those items

3 listed on the MTCR Annex, that would provide a direct

4 and significant impact on the development of missile deliv5 ery systems and the export of which is not subject to con6 trol under section 111(a)(2) of the Export Act of 1994.

7 ‘‘(b) REQUIREMENT OF VALIDATED LICENSES.—The

8 Secretary shall require a validated license for—

9 ‘‘(1) any export of items on the list established

10 under subsection (a) to any country; and

11 ‘‘(2) any export of items that the exporter

12 knows is destined for a project or facility for the de13 sign, development, or manufacture of a missile in a

14 country that is not an MTCR adherent.

15 ‘‘(c) POLICY OF DENIAL OF LICENSES.—

16 ‘‘(1) EXPORTS TO OTHER THAN MTCR ADHER17 ENTS.—Licenses under subsection (b) shall be de18 nied if the ultimate consignee of the items is a facil19 ity in a country that is not an MTCR adherent and

20 the facility is designed to develop or build missiles.

21 ‘‘(2) EXPORTS TO TERRORIST COUNTRIES.—Li22 censes under subsection (b) shall be denied if the ul23 timate consignee of the items is a facility in a coun24 try the government of which has been determined

25 under section 106(i)(1) of the Export Act of 1994
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1 to have repeatedly provided support for acts of inter2 national terrorism.’’.

3 (c) SANCTIONS FOR ACTIVITIES SUPPORTING THE

4 PROLIFERATION OF CHEMICAL AND BIOLOGICAL WEAP5 ONS AND MISSILES.—

6 (1) VIOLATIONS BY UNITED STATES PER7 SONS.—(A) If the President determines that a

8 United States person, on or after the date of the en9 actment of this Act, with requisite knowledge—

10 (i) exports or transfers—

11 (I) any item on the list established

12 under subsection (a)(1) or (a)(2), or

13 (II) any item on the list established

14 under section 71(a) or 81(a) of the Arms

15 Export Control Act,

16 in violation of United States law,

17 (ii) conspires to or attempts to engage in

18 such export or transfer, or

19 (iii) facilitates such export or transfer by

20 any other person,

21 then the President shall impose, for a period of 2

22 years, the sanctions described in subparagraph (B)

23 on the entities described in paragraph (3).

24 (B) The sanctions referred to in subparagraph

25 (A) are the following:
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1 (i) All export licenses under this title to

2 the sanctioned entity for, or for the transfer to

3 the sanctioned entity of, items controlled under

4 section 105, or items controlled under section

5 106 that meet the requirements of section

6 105(a)(1)(A) or (B), and all export licenses

7 under the Arms Export Control Act to the

8 sanctioned entity for, or for the transfer to the

9 sanctioned entity of, items on the United States

10 Munitions List, shall be denied.

11 (ii) The United States Government shall

12 not procure, or enter into any contract for the

13 procurement of, any services, commodities,

14 technology, or other products from or produced

15 by the sanctioned entity.

16 (C) In the case of a determination made under

17 subparagraph (A), the President may pursue any

18 penalty provided in section 38(c) of the Arms Ex19 port Control Act.

20 (2) VIOLATIONS BY FOREIGN PERSONS.—(A) If

21 the President determines that a foreign person, on

22 or after the date of the enactment of this Act, with

23 requisite knowledge contributed to the efforts of any

24 government, group, entity, or project to use, design,
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1 develop, produce, stockpile, or otherwise acquire

2 chemical or biological weapons or missiles—

3 (i) through the export or transfer of—

4 (I) any item on the MTCR Annex,

5 whether or not of United States origin, or

6 (II) any item on the list established

7 under subsection (a)(1) of this section or

8 section 81(a) of the Arms Export Control

9 Act, whether or not of United States ori10 gin,

11 (ii) by conspiring or attempting to engage

12 in such export or transfer or,

13 (iii) by facilitating any export or transfer

14 described in clause (i) by any other person,

15 then the President shall impose, for a period of 2

16 years, the sanctions described in subparagraph (B)

17 on the entities described in paragraph (3).

18 (B) The sanctions referred to in subparagraph

19 (A) are the following:

20 (i) All export licenses under this title for

21 the transfer to the sanctioned entity of, or to

22 the sanctioned entity for, items controlled under

23 section 105, or items controlled under section

24 106 that meet the requirements of section

25 105(a)(1)(A) or (B), and all export licenses
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1 under the Arms Export Control Act for the

2 transfer to the sanctioned entity of, or to the

3 sanctioned entity for, items on the United

4 States Munitions List, shall be denied.

5 (ii) The United States Government shall

6 not procure, or enter into any contract for the

7 procurement of, any services, commodities,

8 technology, or other products from or produced

9 by the sanctioned entity.

10 (iii) Imports of products from or produced

11 by the sanctioned entity shall be prohibited.

12 (3) ENTITIES AGAINST WHICH SANCTIONS ARE

13 IMPOSED.—The President shall impose sanctions

14 under paragraphs (1) and (2) on—

15 (A) the person that committed the conduct

16 that is the subject of the determination giving

17 rise to the sanctions;

18 (B) any successor of a person or entity de19 scribed in subparagraph (A);

20 (C) any foreign person or United States

21 person that is a parent or subsidiary of a per22 son or entity described in subparagraph (A), if

23 that parent or subsidiary with requisite knowl24 edge assisted in the activities which are the

25 basis of that determination; and
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1 (D) any foreign person or United States

2 person that is an affiliate of a person or entity

3 described in subparagraph (A), if that affiliate

4 with requisite knowledge assisted in the activi5 ties which were the basis of that determination

6 and if that affiliate is controlled in fact by that

7 person or entity.

8 For purposes of this section, any person or entity

9 described in subparagraph (A), (B), (C), or (D)

10 shall be referred to as a ‘‘sanctioned entity’’.

11 (4) EXEMPTION OF CERTAIN EXPORTS FROM

12 SANCTIONS.—The requirement in paragraph

13 (1)(B)(i) and (2)(B)(i) that licenses to export items

14 controlled under section 105 or 106 be denied shall

15 not apply to items which require individual validated

16 licenses solely by virtue of the imposition of controls

17 under the Enhanced Proliferation Control Initiative

18 regulations set forth in section 778.7(c) of title 15,

19 Code of Federal Regulations.

20 (5) EXEMPTION FOR MTCR ADHERENTS.—

21 (A) EXEMPTION.—Paragraphs (1) and (2)

22 do not apply with respect to any export or

23 transfer—

24 (i) that is authorized by the laws of

25 an MTCR adherent, if such authorization
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1 is not obtained by misrepresentation or

2 fraud; or

3 (ii) to an end user in a country that

4 is an MTCR adherent.

5 (B) DEFINITION.—For purposes of this

6 paragraph, the term ‘‘MTCR adherent’’ has the

7 meaning given that term in subsection

8 (a)(2)(D).

9 (6) CONSULTATION WITH AND ACTIONS BY

10 FOREIGN GOVERNMENT OF JURISDICTION.—

11 (A) CONSULTATIONS.—If the President

12 makes a determination described in paragraph

13 (2) with respect to a foreign person, the Con14 gress urges the President to initiate consulta15 tions immediately with the government with pri16 mary jurisdiction over that foreign person with

17 respect to the imposition of sanctions pursuant

18 to this subsection.

19 (B) ACTIONS BY GOVERNMENT OF JURIS20 DICTION.—In order to pursue such consulta21 tions with that government, the President may

22 delay imposition of sanctions pursuant to this

23 subsection for up to 90 days. Following these

24 consultations, the President shall impose sanc25 tions unless the President determines and cer-
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1 tifies to the Congress that that government has

2 taken specific and effective actions, including

3 appropriate penalties, to terminate the involve4 ment of the foreign person in the activities de5 scribed in paragraph (2). The President may

6 delay the imposition of sanctions for up to an

7 additional 90 days if the President determines

8 and certifies to the Congress that that govern9 ment is in the process of taking the actions de10 scribed in the preceding sentence.

11 (C) REPORT TO CONGRESS.—Not later

12 than 90 days after making a determination

13 under paragraph (2), the President shall submit

14 to the Committee on Foreign Relations and the

15 Committee on Governmental Affairs of the Sen16 ate and the Committee on Foreign Affairs of

17 the House of Representatives a report on the

18 status of consultations with the appropriate

19 government under this paragraph, and the basis

20 for any determination under subparagraph (B)

21 that such government has taken specific and ef22 fective actions.

23 (7) EFFECT OF ENFORCEMENT ACTIONS BY RE24 GIME ADHERENTS.—
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1 (A) EXEMPTION FROM SANCTIONS.—Sanc2 tions set forth in paragraph (1) or (2) may not

3 be imposed under this subsection on a person

4 with respect to acts described in either such

5 paragraph or, if such sanctions are in effect

6 against a person on account of such acts, such

7 sanctions shall be terminated, if the government

8 of a regime adherent, other than the United

9 States, is taking judicial or other enforcement

10 action against that person with respect to such

11 acts, or that person has been found by the gov12 ernment of a regime adherent to be innocent of

13 wrongdoing with respect to such acts.

14 (B) REGIME ADHERENT DEFINED.—For

15 purposes of subparagraph (A), a ‘‘regime ad16 herent’’ is a country that is a member of a mul17 tilateral regime that controls the export or

18 transfer giving rise to the sanctions, or that,

19 pursuant to an international understanding to

20 which the United States is a party, controls the

21 export or transfer in accordance with the cri22 teria and standards set forth in the regime.

23 (8) REQUISITE KNOWLEDGE DEFINED.—For

24 purposes of this subsection, the term ‘‘requisite

25 knowledge’’ means situations in which a person
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1 ‘‘knows’’, as ‘‘knowing’’ is defined in section 104 of

2 the Foreign Corrupt Practices Act of 1977 (15

3 U.S.C. 78dd–2).

4 (9) FOREIGN PERSON DEFINED FOR CERTAIN

5 EXPORTS.—(A) For purposes of any determination

6 under paragraph (2)(A) with respect to an export or

7 transfer of an item on the MTCR Annex, the term

8 ‘foreign person’, in addition to the meaning set forth

9 in section 116(13), means, in the case of countries

10 with nonmarket economies (other than former mem11 bers of the Warsaw Pact)—

12 (i) all activities of the government of any

13 such country relating to the development or

14 production of any missile equipment or tech15 nology; and

16 (ii) all activities of that government affect17 ing the development or production of elec18 tronics, space systems or equipment, and mili19 tary aircraft.

20 (B) As used in subparagraph (A), the term

21 ‘‘missile equipment or technology’ means those items

22 listed in category I or II of the MTCR Annex.

23 (d) SANCTIONS AGAINST COUNTRIES FOR USE OF

24 CHEMICAL OR BIOLOGICAL WEAPONS.—

25 (1) DETERMINATION.—
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1 (A) IN GENERAL.—Whenever persuasive

2 information becomes available to the executive

3 branch indicating the substantial possibility

4 that, on or after the date of the enactment of

5 this Act, the government of a foreign country

6 has made substantial preparation to use or has

7 used chemical or biological weapons in violation

8 of international law or has used lethal chemical

9 or biological weapons against its own nationals,

10 the President shall, within 60 days after the re11 ceipt of such information by the executive

12 branch, determine whether that government, on

13 or after such date of enactment, has used chem14 ical or biological weapons in violation of inter15 national law, or has used lethal chemical or bio16 logical weapons against its own nationals.

17 (B) MATTERS TO BE CONSIDERED.—In

18 making the determination under subparagraph

19 (A), the President shall consider the following:

20 (i) All physical and circumstantial evi21 dence available bearing on the possible use

22 of chemical or biological weapons.

23 (ii) All information provided by al24 leged victims, witnesses, and independent

25 observers.
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1 (iii) The extent of the availability of

2 the weapons in question to the purported

3 user.

4 (iv) All official and unofficial state5 ments bearing on the possible use of such

6 weapons.

7 (v) Whether, and to what extent, the

8 government in question is willing to honor

9 a request from the Secretary General of

10 the United Nations to grant timely access

11 to a United Nations fact-finding team to

12 investigate the possibility of chemical or bi13 ological weapons use or to grant such ac14 cess to other legitimate outside parties.

15 (2) DETERMINATION TO BE REPORTED TO CON16 GRESS.—Upon making a determination under para17 graph (1), the President shall promptly report that

18 determination to the Congress. If the determination

19 is that a foreign government has used such weapons

20 as described in that paragraph, the report shall

21 specify the sanctions to be imposed pursuant to

22 paragraph (4).

23 (3) CONGRESSIONAL REQUESTS; REPORT.—

24 (A) REQUEST.—The Chairman of the

25 Committee on Foreign Relations of the Senate
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1 (upon consultation with the ranking minority

2 member of such committee) or the Chairman of

3 the Committee on Foreign Affairs of the House

4 of Representatives (upon consultation with the

5 ranking minority member of such committee)

6 may at any time request the President to con7 sider whether a particular foreign government,

8 on or after the date of the enactment of this

9 Act, has used chemical or biological weapons in

10 violation of international law or has used lethal

11 chemical or biological weapons against its own

12 nationals.

13 (B) REPORT TO CONGRESS.—Not later

14 than 60 days after receiving such a request, the

15 President shall provide to the Chairman of the

16 Committee on Foreign Relations of the Senate

17 and the Chairman of the Committee on Foreign

18 Affairs of the House of Representatives a writ19 ten report on the information held by the execu20 tive branch which is pertinent to the issue of

21 whether the specified government, on or after

22 the date of the enactment of this Act, has used

23 chemical or biological weapons in violation of

24 international law or has used lethal chemical or

25 biological weapons against its own nationals.
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1 The report under this subparagraph shall con2 tain an analysis of each of the items enumer3 ated in paragraph (1)(B).

4 (4) MANDATORY SANCTIONS FOR USE OF

5 CHEMICAL OR BIOLOGICAL WEAPONS.—The follow6 ing sanctions shall be imposed for a minimum of 2

7 years in the event the President makes an affirma8 tive determination under paragraph (1) with respect

9 to the government of a foreign country:

10 (A) FOREIGN ASSISTANCE.—The United

11 States Government shall terminate assistance to

12 that country under the Foreign Assistance Act

13 of 1961, except for urgent humanitarian assist14 ance and food or other agricultural commodities

15 or products.

16 (B) ARMS SALES.—The United States

17 Government shall—

18 (i) terminate sales to that country

19 under the Arms Export Control Act of any

20 defense articles, defense services, or design

21 and construction services; and

22 (ii) terminate and deny licenses for

23 the export to that country of any item on

24 the United States Munitions list.
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1 (C) ARMS SALES FINANCING.—The United

2 States Government shall terminate all foreign

3 military financing for that country under the

4 Arms Export Control Act.

5 (D) DENIAL OF UNITED STATES GOVERN6 MENT CREDIT OR OTHER FINANCIAL ASSIST7 ANCE.—The United States Government shall

8 deny to that country any credit, credit guaran9 tees, or other financial assistance by any de10 partment, agency, or instrumentality of the

11 United States Government, including the Ex12 port-Import Bank of the United States.

13 (E) EXPORTS OF NATIONAL SECURITY14 SENSITIVE ITEMS.—The authorities of this title

15 shall be used to prohibit the export to that

16 country of any commodities or technology con17 trolled or prohibited for export under section

18 106(i).

19 (F) IMPORTS.—There shall be a prohibi20 tion on the importation into the United States

21 of goods that are the growth, produce, or man22 ufacture of that country. The President shall

23 determine the type and volume of imports to be

24 prohibited, taking into consideration the volume

25 of exports prohibited under subparagraph (E).
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1 (5) ADDITIONAL SANCTIONS IF CERTAIN CONDI2 TIONS NOT MET.—Unless, within 3 months after

3 making a determination under paragraph (1) with

4 respect to the government of a foreign country, the

5 President determines and certifies, in writing, to the

6 Congress that—

7 (A) the government is no longer using

8 chemical or biological weapons in violation of

9 international law or using lethal chemical or bi10 ological weapons against its own nationals,

11 (B) the government has provided reliable

12 assurances that it will not, in the future, en13 gage in any such activities, and

14 (C) the government is willing to allow on15 site inspections by United Nations observers or

16 other internationally recognized, impartial ob17 servers, or other reliable means exist, to ensure

18 that government is not using chemical or bio19 logical weapons in violation of international law

20 and is not using lethal chemical or biological

21 weapons against its own nationals,

22 then the President, after consultation with the Con23 gress, shall impose on that country for a period of

24 at least 2 years the sanctions set forth in at least
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1 3 of subparagraphs (A) through (F) of paragraph

2 (6).

3 (6) ADDITIONAL SANCTIONS FOR USE OF

4 CHEMICAL OR BIOLOGICAL WEAPONS.—The sanc5 tions referred to in paragraph (5) are the following:

6 (A) MULTILATERAL DEVELOPMENT BANK

7 ASSISTANCE.—The United States Government

8 shall oppose, in accordance with section 701 of

9 the International Financial Institutions Act (22

10 U.S.C. 262d), the extension of any loan or fi11 nancial or technical assistance to the foreign

12 country by international financial institutions.

13 (B) BANK LOANS.—The United States

14 Government shall prohibit any United States

15 bank from making any loan or providing any

16 credit to the government of that country, except

17 for loans or credits for the purpose of purchas18 ing food or other agricultural commodities or

19 products.

20 (C) FURTHER RESTRICTIONS.—(i) The au21 thorities of this title shall be used to prohibit

22 exports to that country of all items (except for

23 those items described in section 114(k)).

24 (ii) Restrictions shall be imposed on the

25 importation into the United States of goods
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1 (which may include petroleum or any petroleum

2 product) that are the growth, product, or man3 ufacture of that country.

4 (D) DIPLOMATIC RELATIONS.—The Presi5 dent shall use his constitutional authorities to

6 downgrade or suspend diplomatic relations be7 tween the United States and the government of

8 that country.

9 (E) PRESIDENTIAL ACTION REGARDING

10 AVIATION.—

11 (i)(I) Within 10 days after the date

12 on which the President provides notice to

13 the government of that country, the Presi14 dent shall direct the Secretary of Trans15 portation, notwithstanding any air services

16 agreement that may be in effect between

17 the United States and that country, to sus18 pend or terminate as soon as practicable

19 the authority of any foreign air carrier of

20 that country to engage in foreign air trans21 portation.

22 (II) The President may direct the

23 Secretary of State to terminate any bilat24 eral air service agreement between the

25 United States and that country, in accord-
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1 ance with the provisions of that agreement,

2 and direct the Secretary of Transportation

3 to terminate the authority of any foreign

4 air carrier of that country to engage in for5 eign air transportation at the earliest pos6 sible date after the agreement ceases to be

7 effective.

8 (ii) The Secretary of Transportation

9 may make such exceptions from the for10 eign air carrier authority provisions of

11 subclauses (I) and (II) of clause (i) as he

12 or she considers necessary to provide for

13 emergencies in which the safety of an air14 craft or its crew or passengers would be

15 threatened.

16 (iii) For purposes of this subpara17 graph, the terms ‘‘air transportation’’,

18 ‘‘foreign air carrier’’, and ‘‘foreign air

19 transportation’’ have the meanings given

20 those terms in section 101 of the Federal

21 Aviation Act of 1958 (49 U.S.C. App.

22 1301).

23 (e) REMOVAL OF SANCTIONS.—

24 (1) FOR VIOLATIONS UNDER SUBSECTION (c).—

25 The President shall remove the sanctions imposed
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1 under paragraph (1) or (2) of subsection (c) if the

2 President determines and so certifies to the Con3 gress, after the end of the 12-month period begin4 ning on the date on which the sanctions were ini5 tially imposed, that—

6 (A) reliable information indicates that—

7 (i) the United States person with re8 spect to which the determination was made

9 under subsection (c)(1) has ceased all ac10 tivities that gave rise to the sanctions; or

11 (ii) the foreign person with respect to

12 which the determination was made under

13 subsection (c)(2) has ceased to contribute

14 to the efforts of any government, group,

15 entity, or project to use, design, develop,

16 produce, stockpile, or otherwise acquire

17 chemical or biological weapons or missiles;

18 and

19 (B) the President has received reliable as20 surances from that United States person or for21 eign person that such person will not, in the fu22 ture, perform any of the actions described in

23 subsection (c) (1) or (2) (as the case may be).

24 (2) FOR VIOLATIONS UNDER SUBSECTION

25 (d).—The President shall remove the sanctions im-
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1 posed with respect to a country under paragraph (4)

2 or (6) of subsection (d) if the President determines

3 and so certifies to the Congress, after the end of the

4 12-month period beginning on the date on which

5 such sanctions were initially imposed, that—

6 (A) the government of that country has

7 provided reliable assurances that it will not use

8 chemical or biological weapons in violation of

9 international law and will not use lethal chemi10 cal or biological weapons against its own na11 tionals;

12 (B) the government is not making prepara13 tions to use chemical or biological weapons in

14 violation of international law or to use lethal

15 chemical or biological weapons against its own

16 nationals;

17 (C) the government is willing to allow on18 site inspections by United Nations observers or

19 other internationally recognized, impartial ob20 servers to verify that it is not making prepara21 tions to use chemical or biological weapons in

22 violation of international law or to use lethal

23 chemical or biological weapons against its own

24 nationals, or other reliable means exist to verify

25 that it is not making such preparations; and
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1 (D) the government is making restitution

2 to those affected by any use of chemical or bio3 logical weapons in violation of international law

4 or by any use of lethal chemical or biological

5 weapons against its own nationals.

6 (3) AUTHORITY TO REVOKE IMPORT SANCTIONS

7 IN CERTAIN CIRCUMSTANCES.—The President may

8 revoke any import sanction imposed under sub9 section (c) or (d) if the President determines, as a

10 result of applicable international dispute settlement

11 proceedings, that the imposition of such sanctions is

12 inconsistent with international legal obligations of

13 the United States and that it is appropriate under

14 the circumstances to comply with such obligations.

15 (f) WAIVERS FOR VIOLATIONS UNDER SUBSECTION

16 (c).—

17 (1) WAIVER.—The President may waive the im18 position of sanctions under paragraph (1) or (2) of

19 subsection (c) with respect to a product or service if

20 the President certifies to the Congress that—

21 (A) the product or service is essential to

22 the national security of the United States; and

23 (B) the sanctioned entity is a sole source

24 supplier of the product or service, the product

25 or service is not available from any alternative
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1 reliable supplier, and the need for the product

2 or service cannot be met in a timely manner by

3 improved manufacturing processes or techno4 logical developments.

5 (2) ADDITIONAL WAIVER.—(A) The President

6 may waive the imposition of any sanction under sub7 section (c)(2) if the President determines such waiv8 er is essential to the national security of the United

9 States.

10 (B) If the President decides to apply the waiver

11 described in subparagraph (A), the President shall

12 so notify the Congress not less than 20 days before

13 issuing the waiver. Such notification shall include a

14 report fully articulating the rationale and cir15 cumstances which led the President to exercise the

16 waiver authority.

17 (3) EXCEPTIONS.—The President shall not

18 apply the sanction under subsection (c)(2) prohibit19 ing the importation of the products of a sanctioned

20 entity—

21 (A) in the case of procurement of defense

22 articles or defense services—

23 (i) under existing contracts or sub24 contracts, including the exercise of options

25 for production quantities to satisfy require-
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1 ments essential to the national security of

2 the United States;

3 (ii) if the President determines that

4 the entity to which the sanctions would be

5 applied is a sole source supplier of the de6 fense articles and services, that the defense

7 articles or services are essential to the na8 tional security of the United States, and

9 that alternative sources are not readily or

10 reasonably available; or

11 (iii) if the President determines that

12 such articles or services are essential to the

13 national security of the United States

14 under defense coproduction agreements or

15 Programs of Cooperation of the North At16 lantic Treaty Organization;

17 (B) to products or services provided under

18 contracts entered into before the date on which

19 the President publishes his intention to impose

20 the sanctions; or

21 (C) to—

22 (i) spare parts;

23 (ii) components parts, but not finished

24 products, essential to United States prod25 ucts or production;
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1 (iii) routine services and maintenance

2 of products, to the extent that alternative

3 sources are not readily or reasonably avail4 able; or

5 (iv) information or technology essen6 tial to United States products or produc7 tion.

8 (4) EXEMPTION FOR CERTAIN TRANS9 ACTIONS.—The President shall not apply the sanc10 tion under paragraph (1)(B)(i) or paragraph

11 (2)(B)(i) of subsection (c) with respect to any trans12 action subject to the reporting requirements under

13 title V of the National Security Act of 1947, relating

14 to congressional oversight of intelligence activities.

15 (g) WAIVERS OF VIOLATIONS UNDER SUBSECTION

16 (d).—

17 (1) CRITERIA FOR WAIVER.—The President

18 may waive the application of any sanction imposed

19 with respect to a country under paragraph (4) or (6)

20 of subsection (d)—

21 (A) if—

22 (i) in the case of any sanction other

23 than a sanction specified in subsection

24 (d)(4)(F) or (d)(6)(C)(ii) (relating to im25 port restrictions) or (d)(6)(D) (relating to
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1 the downgrading or suspension of diplo2 matic relations), the President determines

3 and certifies to the Congress that such

4 waiver is essential to the national security

5 interests of the United States, and the

6 President notifies the Committee on For7 eign Relations of the Senate and the Com8 mittee on Foreign Affairs of the House of

9 Representatives of his determination and

10 certification at least 15 days before the

11 waiver takes effect, in accordance with the

12 procedures applicable to reprogramming

13 notifications under section 634A of the

14 Foreign Assistance Act of 1961; or

15 (ii) in the case of any sanction speci16 fied in subsection (d)(4)(F) or (d)(6)(C)(ii)

17 (relating to import restrictions), the Presi18 dent determines and certifies to the Con19 gress that such waiver is essential to the

20 national security interests of the United

21 States, and the President notifies the Com22 mittee on Finance of the Senate and the

23 Committee on Ways and Means and the

24 Committee on Foreign Affairs of the

25 House of Representatives of his determina-
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1 tion and certification at least 15 days be2 fore the waiver takes effect; or

3 (B) if the President determines and cer4 tifies to the Congress that there has been a fun5 damental change in the leadership and policies

6 of the government of that country, and if the

7 President notifies the Congress at least 20 days

8 before the waiver takes effect.

9 (2) REPORT.—In the event that the President

10 decides to exercise the waiver authority provided in

11 paragraph (1) with respect to a country, the Presi12 dent’s notification to the Congress under such para13 graph shall include a report fully articulating the ra14 tionale and circumstances which led the President to

15 exercise that waiver authority, including a descrip16 tion of the steps which the government of that coun17 try has taken to satisfy the conditions set forth in

18 subparagraphs (A) through (D) of subsection (e)(2).

19 (h) CONTRACT SANCTITY.—

20 (1) SANCTIONS NOT APPLIED TO EXISTING

21 CONTRACTS.—(A) A sanction described in subpara22 graph (D), (E), or (F) of subsection (d)(4) or in any

23 of subparagraphs (A) through (C) of subsection

24 (d)(6) shall not apply to any activity pursuant to

25 any contract or international agreement entered into
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1 before the date of the presidential determination

2 under subsection (d)(1) unless the President deter3 mines, on a case-by-case basis, that to apply such

4 sanction to that activity would prevent the perform5 ance of a contract or agreement that would have the

6 effect of assisting a country in using chemical or bi7 ological weapons in violation of international law or

8 in using lethal chemical or biological weapons

9 against its own nationals.

10 (B) The same restrictions of section 114(l) (re11 lating to contract sanctity) which are applicable to

12 exports prohibited under this title shall apply to ex13 ports prohibited under subsection (d)(4)(E) or

14 (d)(6)(C)(i). For purposes of this subparagraph, any

15 contract or agreement the performance of which (as

16 determined by the President) would have the effect

17 of assisting a foreign government in using chemical

18 or biological weapons in violation of international

19 law or in using chemical or biological weapons

20 against its own nationals shall be treated as con21 stituting a breach of the peace that poses a serious

22 and direct threat to the strategic interest of the

23 United States, within the meaning of subparagraph

24 (A) of section 114(l)(2).
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1 (2) SANCTIONS APPLIED TO EXISTING CON2 TRACTS.—The sanctions described in subparagraphs

3 (A), (B), and (C) of subsection (d)(4) shall apply to

4 contracts, agreements, and licenses without regard

5 to the date the contract or agreement was entered

6 into or the license was issued (as the case may be),

7 except that such sanctions shall not apply to any

8 contract or agreement entered into or license issued

9 before the date of the presidential determination

10 under subsection (d)(1) if the President determines

11 that the application of such sanction would be det12 rimental to the national security interests of the

13 United States.

14 (i) PROTECTION OF CLASSIFIED INFORMATION.—To

15 the extent practicable, reports submitted under this sec16 tion should be based on unclassified information. Portions

17 of such reports may be classified.

18 (j) STAY ON IMPOSITION OF SANCTIONS.—

19 (1) AUTHORITY OF THE PRESIDENT.—The

20 President may stay the imposition of sanctions

21 under subsection (c) on any entity in order to pro22 tect—

23 (A) any ongoing criminal investigation; or

24 (B) sensitive intelligence sources and meth25 ods which are being used to acquire further in-
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1 formation on the proliferation of chemical or bi2 ological weapons or missiles that would be com3 promised by the publication of the sanctioned

4 entity’s name.

5 (2) DETERMINATION OF THE PRESIDENT.—The

6 President may exercise the authority under para7 graph (1) when the President determines that the

8 nonproliferation goals of this section are better

9 served by delaying the imposition of sanctions rather

10 than by compromising the criminal investigation or

11 intelligence sources or methods concerned.

12 (3) LIFTING OF STAY.—The President shall lift

13 any stay imposed under this subsection as soon as

14 the basis for imposing the stay no longer exists, but

15 in no case later than 30 days after the imposition

16 of the stay.

17 SEC. 112. ADMINISTRATIVE AND JUDICIAL REVIEW.

18 (a) APPLICABILITY.—

19 (1) EXEMPTIONS FROM ADMINISTRATIVE PRO20 CEDURE.—Except as provided in this section, sec21 tions 551 and 553 through 559 of title 5, United

22 States Code, do not apply to the functions exercised

23 under this title.

24 (2) JUDICIAL REVIEW.—(A) Subject to sub25 paragraphs (B) and (C) and except as otherwise
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1 provided in this section, actions under this title shall

2 be subject to judicial review under chapter 7 of title

3 5, United States Code.

4 (B) Any discretionary determination of whether

5 a commodity or technology should or should not be

6 on the control index shall not be subject to judicial

7 review.

8 (C) An action to obtain judicial review under

9 this subsection may be brought in the appropriate

10 United States district court.

11 (b) PROCEDURES RELATING TO CIVIL PENALTIES

12 AND SANCTIONS.—

13 (1) ADMINISTRATIVE PROCEDURES.—Any civil

14 penalty or administrative sanction under section

15 110(c), and any sanction under section 111(c)(1),

16 may be imposed only after notice and opportunity

17 for an agency hearing on the record in accordance

18 with sections 554 through 557 of title 5, United

19 States Code.

20 (2) AVAILABILITY OF CHARGING LETTER.—Any

21 charging letter or other document initiating adminis22 trative proceedings for the imposition of sanctions

23 for violations of the regulations issued under section

24 108(a) shall be made available for public inspection

25 and copying.
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1 (c) COLLECTION.—If any person fails to pay a civil

2 penalty imposed under section 110(c), the Secretary may

3 ask the Attorney General to bring a civil action in an ap4 propriate district court to recover the amount imposed

5 (plus interest at currently prevailing rates from the date

6 of the final order).

7 (d) IMPOSITION OF TEMPORARY DENIAL ORDERS.—

8 (1) GROUNDS FOR IMPOSITION.—In any case in

9 which there is reasonable cause to believe that a per10 son is engaged in or is about to engage in any act

11 or practice which constitutes or would constitute a

12 violation of this title, or any regulation, order, or li13 cense issued under this title, or in any case in which

14 a criminal indictment has been returned against a

15 person alleging a violation of this title or any of the

16 statutes listed in section 110(f), the Secretary may,

17 without a hearing, issue an order temporarily deny18 ing that person’s United States export privileges

19 (hereafter in this subsection referred to a ‘‘tem20 porary denial order’’). A temporary denial order may

21 be effective for no longer than 180 days, but may be

22 renewed by the Secretary, following notice and an

23 opportunity for a hearing, for additional periods of

24 not more than 180 days each.
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1 (2) ADMINISTRATIVE APPEALS.—The person or

2 persons subject to the issuance or renewal of a tem3 porary denial order may appeal the issuance or re4 newal of the temporary denial order, supported by

5 briefs and other material, to an administrative law

6 judge who shall, within 15 working days after the

7 appeal is filed, issue a decision affirming, modifying,

8 or vacating the temporary denial order. The tem9 porary denial order shall be affirmed if it is shown

10 that—

11 (A) there is reasonable cause to believe

12 that the person subject to the order is engaged

13 in or is about to engage in any act or practice

14 which constitutes or would constitute a violation

15 of this title, or any regulation, order, or license

16 issued under this title, or

17 (B) a criminal indictment has been re18 turned against the person subject to the order

19 alleging a violation of this title or any of the

20 statutes listed in section 110(f).

21 The decision of the administrative law judge shall be

22 final unless, within 10 working days after the date

23 of the administrative law judge’s decision, an appeal

24 is filed with the Secretary. On appeal, the Secretary

25 shall either affirm, modify, reverse, or vacate the de-
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1 cision of the administrative law judge by written

2 order within 10 working days after receiving the ap3 peal. The written order of the Secretary shall be

4 final and is not subject to judicial review, except as

5 provided in paragraph (3). The materials submitted

6 to the administrative law judge and the Secretary

7 shall constitute the administrative record for pur8 poses of review by the court.

9 (3) COURT APPEALS.—An order of the Sec10 retary affirming, in whole or in part, the issuance or

11 renewal of a temporary denial order may, within 15

12 days after the order is issued, be appealed by a per13 son subject to the order to the United States Court

14 of Appeals for the District of Columbia Circuit,

15 which shall have jurisdiction of the appeal. The

16 court may review only those issues necessary to de17 termine whether the issuance of the temporary de18 nial order was based on reasonable cause to believe

19 that the person subject to the order was engaged in

20 or was about to engage in any act or practice which

21 constitutes or would constitute a violation of this

22 title, or any regulation, order, or license issued

23 under this title, or if a criminal indictment has been

24 returned against the person subject to the order al25 leging a violation of this title or any of the statutes
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1 listed in section 110(f). The court shall vacate the

2 Secretary’s order if the court finds that the Sec3 retary’s order is arbitrary, capricious, an abuse of

4 discretion, or otherwise not in accordance with law.

5 (e) APPEALS FROM LICENSING AND CLASSIFICATION

6 ACTIONS.—

7 (1) LICENSE DENIALS.—A determination of the

8 Secretary under section 109 to deny a license may

9 be appealed by the applicant to an administrative

10 law judge who shall have the authority to conduct

11 proceedings to determine only whether the item

12 sought to be exported is in fact on the control list.

13 Such proceedings shall be conducted within 90 days

14 after the appeal is filed. Any determination by an

15 administrative law judge under this subsection and

16 all materials filed before such judge in the proceed17 ings shall be reviewed by the Secretary, who shall ei18 ther affirm or vacate the determination in a written

19 decision within 30 days after receiving the deter20 mination.

21 (2) CLASSIFICATION DECISIONS.—(A) Within

22 30 days after the issuance of a classification decision

23 under section 109(h)(1), or within 30 days after the

24 failure to issue such a classification decision in re25 sponse to a request for such a decision, any United
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1 States person aggrieved by such decision or failure

2 may file an appeal thereof to an administrative law

3 judge, but only on issues regarding such classifica4 tion decision including, but not limited to, decisions

5 of whether an item is covered by any general or spe6 cific note. The administrative law judge may not re7 view determinations as to the reliability of an end

8 user or the nature of an end use or end user. The

9 administrative law judge shall, within 90 days after

10 such appeal is filed, issue his or her decision and

11 issue any order that is necessary or appropriate to

12 carry out such decision. Such order shall be binding

13 upon the Secretary unless and until vacated or modi14 fied under subparagraph (B). Such order may be

15 stayed by the administrative law judge or the Sec16 retary pending the filing and determination of an

17 appeal under subparagraph (B).

18 (B) Any United States person aggrieved by a

19 decision of the administrative law judge under sub20 paragraph (A) may appeal such decision to the Sec21 retary within 45 days after receiving notification of

22 such decision. The Secretary shall, in a written

23 order, affirm, modify, or vacate the decision of the

24 administrative law judge within 30 days after such

25 appeal is filed. The authority of the Secretary under
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1 this paragraph may not be delegated to an officer or

2 employee of the Bureau of Export Administration.

3 (3) PUBLICATION AND INDEXING OF DECI4 SIONS.—Subject to the limitations of section 114(g),

5 final decisions of administrative law judges and the

6 Secretary under this subsection shall be published in

7 the Federal Register within 15 days after they are

8 rendered. The Secretary shall index decisions on ap9 peals of license denials.

10 (4) CONDUCT OF PROCEEDINGS.—Except as

11 provided in this subsection, proceedings under this

12 subsection shall be conducted in accordance with

13 sections 554 (notwithstanding subsection (a)(4) of

14 such section), 556, and 557 of title 5, United States

15 Code.

16 (5) REGULATIONS.—The Secretary shall issue

17 such regulations as are necessary to carry out this

18 subsection.

19 (6) OTHER RIGHTS NOT AFFECTED.—The

20 rights granted by this subsection do not abridge any

21 other rights provided by law.

22 (7) EFFECTIVE DATE.—This subsection shall

23 take effect 120 days after the date of the enactment

24 of this Act. Regulations implementing this sub-
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1 section shall be promulgated no later than such ef2 fective date.

3 SEC. 113. ENFORCEMENT.

4 (a) GENERAL AUTHORITY AND DESIGNATION.—

5 (1) POLICY GUIDANCE ON ENFORCEMENT.—

6 The Secretary, in consultation with the Secretary of

7 the Treasury and the heads of other appropriate de8 partments and agencies, shall be responsible for pro9 viding policy guidance on the enforcement of this

10 title.

11 (2) GENERAL AUTHORITIES.—(A) To the extent

12 necessary or appropriate to the enforcement of this

13 title or to the imposition of any penalty, forfeiture,

14 or liability arising under the Export Administration

15 Act of 1979, officers or employees of the Depart16 ment of Commerce designated by the Secretary and

17 officers and employees of the United States Customs

18 Service designated by the Commissioner may exer19 cise the enforcement authorities described in para20 graph (3).

21 (B) In carrying out the enforcement authorities

22 described in paragraph (3), the Commissioner of

23 Customs, and employees of the United States Cus24 toms Service designated by the Commissioner, may

25 make investigations within or outside the United
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1 States and at those ports of entry or exit from the

2 United States where officers of the United States

3 Customs Service are authorized by law to carry out

4 such enforcement responsibilities. Subject to para5 graph (3), the United States Customs Service is au6 thorized, in the enforcement of this title, to search,

7 detain (after search), and seize commodities or tech8 nology at those ports of entry or exit from the Unit9 ed States where officers of the Customs Service are

10 authorized by law to conduct such searches, deten11 tions, and seizures, and at those places outside the

12 United States where the Customs Service, pursuant

13 to agreements or other arrangements with other

14 countries, is authorized to perform enforcement ac15 tivities.

16 (C) In carrying out the enforcement authorities

17 described in paragraph (3), the Secretary, and offi18 cers and employees of the Department of Commerce

19 designated by the Secretary, may make investiga20 tions within the United States, and shall conduct,

21 outside the United States, pre-license and post-ship22 ment verifications of items licensed for export and

23 investigations in the enforcement of section 108. The

24 Secretary, and officers and employees of the Depart25 ment of Commerce designated by the Secretary, are
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1 authorized to search, detain (after search), and seize

2 items at those places within the United States other

3 than those ports and borders specified in subpara4 graph (B). The search, detention (after search), or

5 seizure of items at those ports and borders specified

6 in subparagraph (B) may be conducted by officers

7 and employees of the Department of Commerce only

8 with the concurrence of the Commissioner of Cus9 toms or a person designated by the Commissioner.

10 (D) The Secretary and the Commissioner of

11 Customs may enter into agreements and arrange12 ments for the enforcement of this title, including for13 eign investigations and information exchange.

14 (3) SPECIFIC AUTHORITIES.—(A) Any officer or

15 employee designated under paragraph (2) may do

16 the following in carrying out the enforcement au17 thority under this title:

18 (i) Make investigations of, obtain informa19 tion from, make inspection of any books,

20 records, or reports (including any writings re21 quired to be kept by the Secretary), premises,

22 or property of, and take the sworn testimony of,

23 any person.

24 (ii) Administer oaths or affirmations, and

25 by subpoena require any person to appear and
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1 testify or to appear and produce books, records,

2 and other writings, or both. In the case of con3 tumacy by, or refusal to obey a subpoena issued

4 to, any such person, a district court of the

5 United States, after notice to any such person

6 and a hearing, shall have jurisdiction to issue

7 an order requiring such person to appear and

8 give testimony or to appear and produce books,

9 records, and other writings, or both. Any failure

10 to obey such order of the court may be pun11 ished by such court as a contempt thereof.

12 (B)(i) Any officer or employee of the Office of

13 Export Enforcement of the Department of Com14 merce who is designated by the Secretary under

15 paragraph (2), and any officer or employee of the

16 United States Customs Service who is designated by

17 the Commissioner of Customs under paragraph (2),

18 may do the following in carrying out the enforce19 ment authority under this title:

20 (I) Execute any warrant or other process

21 issued by a court or officer of competent juris22 diction with respect to the enforcement of this

23 title.

24 (II) Make arrests without warrant for any

25 violation of this title committed in his or her
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1 presence or view, or if the officer or employee

2 has probable cause to believe that the person to

3 be arrested has committed, is committing, or is

4 about to commit such a violation.

5 (III) Carry firearms in carrying out any

6 activity under subclause (I) or (II).

7 (ii) The exercise of authorities under clause (i)

8 by officers and employers of the Office of Export

9 Enforcement of the Department of Commerce shall

10 be pursuant to guidelines approved by the Attorney

11 General.

12 (C) Any officer or employee of the United

13 States Customs Service designated by the Commis14 sioner of Customs under paragraph (2) may do the

15 following in carrying out the enforcement authority

16 under this title:

17 (i) Stop, search, and examine a vehicle,

18 vessel, aircraft, or person on which or whom the

19 officer or employee has reasonable cause to sus20 pect there is any item that has been, is being,

21 or is about to be exported from or transited

22 through the United States in violation of this

23 title.

24 (ii) Detain and search any package or con25 tainer in which the officer or employee has rea-
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1 sonable cause to suspect there is any item that

2 has been, is being, or is about to be exported

3 from or transited through the United States in

4 violation of this title.

5 (D) Any officer or employee designated under

6 paragraph (2) may detain (after search under sub7 paragraph (C)) or seize any item, for purposes of se8 curing for trial or forfeiture to the United States, on

9 or about a vehicle, vessel, aircraft, or person de10 scribed in subparagraph (C)(i), or in a package or

11 container described in subparagraph (C)(ii), if the

12 officer or employee has probable cause to believe the

13 item has been, is being, or is about to be exported

14 from or transited through the United States in viola15 tion of this title.

16 (4) OTHER AUTHORITIES NOT AFFECTED.—The

17 authorities conferred by this section are in addition

18 to any authorities conferred under other laws.

19 (b) REFERRAL OF CASES.—All cases involving viola20 tions of this title shall be referred to the Secretary for

21 purposes of determining civil penalties and administrative

22 sanctions under section 110(c), or to the Attorney General

23 for criminal action in accordance with this title.

24 (c) UNDERCOVER INVESTIGATION OPERATIONS.—
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1 (1) USE OF FUNDS.—With respect to any un2 dercover investigative operation conducted by the Of3 fice of Export Enforcement of the Department of

4 Commerce (hereafter in this subsection referred to

5 as ‘‘OEE’’) necessary for the detection and prosecu6 tion of violations of this title—

7 (A) funds made available for export en8 forcement under this title may be used to pur9 chase property, buildings, and other facilities,

10 and to lease space within the United States,

11 without regard to sections 1341 and 3324 of

12 title 31, United States Code, the third undesig13 nated paragraph under the heading of ‘‘MIS14 CELLANEOUS’’ of the Act of March 3, 1877, (40

15 U.S.C. 34), sections 3732(a) and 3741 of the

16 Revised Statutes of the United States (41

17 U.S.C. 11(a) and 22), and subsections (a) and

18 (c) of section 304, and section 305 of the Fed19 eral Property and Administrative Services Act

20 of 1949 (41 U.S.C. 254(a) and (c) and 255),

21 (B) funds made available for export en22 forcement under this title may be used to estab23 lish or to acquire proprietary corporations or

24 business entities as part of an undercover oper25 ation, and to operate such corporations or busi-
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1 ness entities on a commercial basis, without re2 gard to section 9102 of title 31, United States

3 Code,

4 (C) funds made available for export en5 forcement under this title and the proceeds

6 from undercover operations may be deposited in

7 banks or other financial institutions without re8 gard to the provisions of section 648 of title 18,

9 United States Code, and section 3302 of title

10 31, United States Code, and

11 (D) the proceeds from undercover oper12 ations may be used to offset necessary and rea13 sonable expenses incurred in such operations

14 without regard to the provisions of section 3302

15 of title 31, United States Code,

16 if the Director of OEE (or an officer or employee

17 designated by the Director) certifies, in writing, that

18 the action authorized by subparagraph (A), (B), (C),

19 or (D) for which the funds would be used is nec20 essary for the conduct of the undercover operation.

21 (2) DISPOSITION OF BUSINESS ENTITIES.—If a

22 corporation or business entity established or ac23 quired as part of an undercover operation with a net

24 value of more than $50,000 is to be liquidated, sold,

25 or otherwise disposed of, the Director of OEE shall
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1 report the circumstances to the Secretary and the

2 Comptroller General, as much in advance of such

3 disposition as the Director of OEE or his or her des4 ignee determines is practicable. The proceeds of the

5 liquidation, sale, or other disposition, after obliga6 tions incurred by the corporation or business enter7 prise are met, shall be deposited in the Treasury of

8 the United States as miscellaneous receipts.

9 (3) DEPOSIT OF PROCEEDS.—As soon as the

10 proceeds from an OEE undercover investigative op11 eration with respect to which an action is authorized

12 and carried out under this subsection are no longer

13 necessary for the conduct of such operation, such

14 proceeds or the balance of such proceeds remaining

15 at the time shall be deposited into the Treasury of

16 the United States as miscellaneous receipts.

17 (4) AUDIT AND REPORT.—(A) The Director of

18 OEE shall conduct a detailed financial audit of each

19 OEE undercover investigative operation which is

20 closed and shall submit the results of the audit in

21 writing to the Secretary. Not later than 180 days

22 after an undercover operation is closed, the Sec23 retary shall submit to the Congress a report on the

24 results of the audit.
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1 (B) The Secretary shall submit annually to the

2 Congress a report, which may be included in the an3 nual report under section 115, specifying the follow4 ing information:

5 (i) The number of undercover investigative

6 operations pending as of the end of the period

7 for which such report is submitted.

8 (ii) The number of undercover investigative

9 operations commenced in the 1-year period pre10 ceding the period for which such report is sub11 mitted.

12 (iii) The number of undercover investiga13 tive operations closed in the 1-year period pre14 ceding the period for which such report is sub15 mitted and, with respect to each such closed un16 dercover operation, the results obtained and any

17 civil claims made with respect thereto.

18 (5) DEFINITIONS.—For purposes of paragraph

19 (4)—

20 (A) the term ‘‘closed’’, with respect to an

21 undercover investigative operation, refers to the

22 earliest point in time at which all criminal pro23 ceedings (other than appeals) pursuant to the

24 investigative operation are concluded, or covert
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1 activities pursuant to such operation are con2 cluded, whichever occurs later;

3 (B) the terms ‘‘undercover investigative

4 operation’’ and ‘‘undercover operation’’ mean

5 any undercover investigative operation con6 ducted by OEE—

7 (i) in which the gross receipts (exclud8 ing interest earned) exceed $25,000, or ex9 penditures (other than expenditures for

10 salaries of employees) exceed $75,000, and

11 (ii) which is exempt from section 3302

12 or 9102 of title 31, United States Code,

13 except that clauses (i) and (ii) shall not apply

14 with respect to the report to the Congress re15 quired by subparagraph (B) of paragraph (4);

16 and

17 (C) the term ‘‘employees’’ means employ18 ees, as defined in section 2105 of title 5, United

19 States Code, of the Department of Commerce.

20 (d) REFERENCE TO ENFORCEMENT.—For purposes

21 of this section, a reference to the enforcement of this title

22 or to a violation of this title includes a reference to the

23 enforcement or a violation of any regulation, license, or

24 order issued under this title.
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1 SEC. 114. EXPORT CONTROL AUTHORITIES AND PROCE2 DURES.

3 (a) POLICY GUIDANCE.—

4 (1) IN GENERAL.—As directed by the Presi5 dent, annual policy guidance shall be issued to pro6 vide detailed implementing guidance to export licens7 ing officials in all appropriate departments and

8 agencies.

9 (2) ELEMENTS OF ANNUAL POLICY REVIEW.—

10 In order to develop such annual policy guidance, ex11 port controls and other regulations to implement

12 this title shall be reviewed annually. This annual pol13 icy review shall include an evaluation of the benefits

14 and costs of the imposition, extension, or removal of

15 controls under this title. This review shall include—

16 (A) an assessment by the Secretary of the

17 economic consequences of the imposition, exten18 sion, or removal of controls during the preced19 ing 12 months, including the impact on United

20 States exports or jobs;

21 (B) an assessment by the Secretary of

22 State of the objectives of the controls in effect

23 during the preceding 12 months, and the extent

24 to which the controls have served those objec25 tives; and
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1 (C) an assessment by the Secretary of De2 fense of the impact that the imposition, exten3 sion, or removal of controls during the preced4 ing 12 months has had on United States na5 tional security.

6 (b) EXPORT CONTROL AUTHORITY AND FUNC7 TIONS.—

8 (1) IN GENERAL.—Unless otherwise reserved to

9 the President or a department or agency outside the

10 Department of Commerce, all power, authority, and

11 discretion conferred by this title shall be exercised by

12 the Secretary.

13 (2) DELEGATION OF FUNCTIONS OF THE SEC14 RETARY.—The Secretary may delegate any function

15 under this title to the Under Secretary of Commerce

16 for Export Administration appointed under sub17 section (d) or to any other officer of the Department

18 of Commerce.

19 (c) EXPORT CONTROL POLICY COMMITTEE.—

20 (1) ESTABLISHMENT.—There is established an

21 Export Control Policy Committee (hereafter in this

22 subsection referred to as the ‘‘Committee’’).

23 (2) FUNCTIONS.—The Committee shall—
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1 (A) provide policy guidance and advice to

2 the President on export control issues under

3 this title;

4 (B) review policy recommendations pro5 posed by the Secretary and other members of

6 the Committee; and

7 (C) receive policy recommendations from

8 other agencies and resolve any policy disputes

9 among departments and agencies under this

10 title.

11 (3) MEMBERSHIP.—The Committee shall be

12 comprised of—

13 (A) the Secretary;

14 (B) the Secretary of Defense;

15 (C) the Secretary of Energy;

16 (D) the Secretary of State;

17 (E) the National Security Adviser;

18 (F) the National Economic Adviser;

19 (G) the Secretary of the Treasury;

20 (H) the United States Trade Representa21 tive; and

22 (I) the Director of the Arms Control and

23 Disarmament Agency.
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1 (4) CHAIR.—The Committee shall be jointly

2 chaired by the National Economic Adviser and the

3 National Security Adviser.

4 (5) DELEGATION; OTHER REPRESENTATIVES.—

5 A member of the Committee under paragraph (3)

6 may designate the deputy head of his or her depart7 ment or agency to serve in his or her absence as a

8 member of the Committee, but this authority may

9 not be delegated to any other individual. The Chairs

10 may also invite the temporary participation in the

11 Committee’s meetings of representatives from other

12 offices and agencies as appropriate to the issues

13 under consideration.

14 (6) MEETINGS.—The Secretary or either Chair

15 of the Committee may call a meeting of the Commit16 tee. Meetings shall not be subject to section 552b of

17 title 5, United States Code.

18 (d) UNDER SECRETARY OF COMMERCE; ASSISTANT

19 SECRETARIES.—

20 (1) APPOINTMENT.—The President shall ap21 point, by and with the advice and consent of the

22 Senate, an Under Secretary of Commerce for Export

23 Administration who shall carry out all functions of

24 the Secretary under this title and other provisions of

25 law relating to national security, as the Secretary
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1 may delegate. The President shall appoint, by and

2 with the advice and consent of the Senate, two As3 sistant Secretaries of Commerce to assist the Under

4 Secretary in carrying out such functions.

5 (2) TRANSITION PROVISIONS.—Those individ6 uals serving in the positions of Under Secretary of

7 Commerce for Export Administration and Assistant

8 Secretaries of Commerce under section 15(a) of the

9 Export Administration Act of 1979, on the day be10 fore the date of the enactment of this Act, shall be

11 deemed to have been appointed under paragraph (1)

12 as of such date of enactment.

13 (e) ISSUANCE OF REGULATIONS.—The President and

14 the Secretary may issue such regulations as are necessary

15 to carry out this title. Any such regulations the purpose

16 of which is to carry out section 105 or 106 may be issued

17 only after the regulations are submitted for review to such

18 departments or agencies as the President considers appro19 priate, and to any appropriate export advisory committee

20 appointed under section 104(f). The preceding sentence

21 does not require the concurrence or approval of any offi22 cial, department, or agency to which such regulations are

23 submitted.

24 (f) AMENDMENTS TO REGULATIONS.—If the Sec25 retary proposes to amend regulations issued under this
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1 title, the Secretary shall report to the Committee on Bank2 ing, Housing, and Urban Affairs of the Senate and the

3 Committee on Foreign Affairs of the House of Representa4 tives on the intent and rationale of such amendments.

5 Such report shall evaluate the cost and burden to the

6 United States exporters of the proposed amendments in

7 relation to any enhancement of licensing objectives. The

8 Secretary shall consult with the appropriate export advi9 sory committees appointed under section 104(f) in formu10 lating or amending regulations issued under this title.

11 (g) CONFIDENTIALITY OF INFORMATION.—

12 (1) EXEMPTIONS FROM DISCLOSURE.—

13 (A) Except as otherwise provided by the

14 third sentence of section 108(b)(2), information

15 obtained under the Export Administration Act

16 of 1979 and its predecessor statutes on or be17 fore June 30, 1980, which is deemed confiden18 tial, including Shipper’s Export Declarations, or

19 with reference to which a request for confiden20 tial treatment is made by the person furnishing

21 such information, shall be exempt from disclo22 sure under section 552 of title 5, United States

23 Code, and such information shall not be pub24 lished or disclosed unless the Secretary deter-
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1 mines that the withholding thereof is contrary

2 to the national interest.

3 (B) Except as otherwise provided by the

4 third sentence of section 108(b)(2), information

5 obtained under this title or under the Export

6 Administration Act of 1979 after June 30,

7 1980, may be withheld from disclosure only to

8 the extent permitted by statute, except that in9 formation submitted, obtained, or considered in

10 connection with an application for an export li11 cense or other export authorization under the

12 Export Administration Act of 1979 or this title,

13 including the export license or other export au14 thorization itself, classification requests de15 scribed in section 109(h)(1), information ob16 tained during the course of a foreign availabil17 ity assessment, information or evidence ob18 tained in the course of any investigation, and

19 information obtained or furnished under this

20 title in connection with international agree21 ments, treaties, or obligations shall be withheld

22 from public disclosure unless the release of such

23 information is determined by the Secretary to

24 be in the national interest.

25 (2) INFORMATION TO CONGRESS AND GAO.—
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1 (A) IN GENERAL.—Nothing in this title

2 shall be construed as authorizing the withhold3 ing of information from the Congress or from

4 the General Accounting Office.

5 (B) AVAILABILITY TO THE CONGRESS.—

6 (i) IN GENERAL.—All information ob7 tained at any time under this title or pre8 vious Acts regarding the control of exports,

9 including any report or license application

10 required under this title, shall be made

11 available to any committee or subcommit12 tee of Congress of appropriate jurisdiction

13 upon the request of the chairman or rank14 ing minority member of such committee or

15 subcommittee.

16 (ii) PROHIBITION ON FURTHER DIS17 CLOSURE.—No committee, subcommittee,

18 or Member of Congress shall disclose any

19 information obtained under this title or

20 previous Acts regarding the control of ex21 ports which is submitted on a confidential

22 basis to the Congress under clause (i) un23 less the full committee to which the infor24 mation is made available determines that
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1 the withholding of the information is con2 trary to the national interest.

3 (C) AVAILABILITY TO THE GAO.—

4 (i) IN GENERAL.—Notwithstanding

5 paragraph (1), information referred to in

6 subparagraph (B) shall, consistent with

7 the protection of intelligence, counterintel8 ligence, and law enforcement sources,

9 methods, and activities, as determined by

10 the agency that originally obtained the in11 formation, and consistent with the provi12 sions of section 716 of title 31, United

13 States Code, be made available only by the

14 agency, upon request, to the Comptroller

15 General of the United States or to any of16 ficer or employee of the General Account17 ing Office authorized by the Comptroller

18 General to have access to such informa19 tion.

20 (ii) PROHIBITION ON FURTHER DIS21 CLOSURES.—No officer or employee of the

22 General Accounting Office shall disclose,

23 except to the Congress in accordance with

24 this paragraph, any such information

25 which is submitted on a confidential basis
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1 and from which any individual can be iden2 tified.

3 (3) INFORMATION EXCHANGE.—Notwithstand4 ing paragraph (1), the Secretary and the Commis5 sioner of Customs shall exchange licensing and en6 forcement information with each other which is nec7 essary to facilitate enforcement efforts and effective

8 license decisions.

9 (4) PENALTIES FOR DISCLOSURE OF CON10 FIDENTIAL INFORMATION.—(A) Any officer or em11 ployee of the United States, or any department or

12 agency thereof, who publishes, divulges, discloses, or

13 makes known in any manner or to any extent not

14 authorized by law any information under this title or

15 the Export Administration Act of 1979 that—

16 (i) he or she obtains in the course of his

17 or her employment or official duties or by rea18 son of any examination or investigation made

19 by, or report or record made to or filed with,

20 such department or agency, or officer or em21 ployee thereof, and

22 (ii) is exempt from disclosure under this

23 subsection,

24 shall be subject to the penalties set forth in subpara25 graph (B).
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1 (B) The penalties for a violation under sub2 paragraph (A) are as follows:

3 (i) If the officer or employee acted know4 ingly, he or she shall be fined not more than

5 $10,000, or imprisoned not more than one year,

6 or both, and shall be removed from office or

7 employment.

8 (ii) The officer or employee shall, either in

9 addition to or in lieu of any other penalty that

10 may be imposed, be subject to a civil penalty of

11 not more than $1,000 imposed by the Secretary

12 under section 110(c) for each violation under

13 subparagraph (A).

14 (h) AUTHORITY FOR SEMINAR AND PUBLICATIONS

15 FUND.—The Secretary is authorized to cooperate with

16 public agencies, other governments, international organi17 zations, private individuals, private associations, and other

18 groups in connection with seminars, publications, and re19 lated activities to carry out export activities, including

20 educating the public or government officials on the appli21 cation of this title and the regulations issued under this

22 title. The Secretary is further authorized to accept con23 tributions of funds, property, or services in connection

24 with such activities to recover the cost of such programs

25 and activities. Contributions may include payments for
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1 materials or services provided as part of such activities.

2 The contributions collected may be retained for use in cov3 ering the costs of such activities, and for providing infor4 mation to the public with respect to this title and other

5 export control programs of the United States and other

6 governments.

7 (i) SUPPORT OF OTHER COUNTRIES’ EXPORT CON8 TROL PROGRAM.—The Secretary is authorized to provide

9 training to officials of other countries on the principles

10 and procedures for the implementation of effective export

11 controls and shall participate in any such training pro12 vided by other departments and agencies of the United

13 States.

14 (j) INCORPORATED COMMODITIES AND TECH15 NOLOGY.—

16 (1) COMMODITIES CONTAINING CONTROLLED

17 PARTS AND COMPONENTS.—Export licenses may not

18 be required under this title or any other provision of

19 law for a commodity solely because the commodity

20 contains parts or components on which export con21 trols are in effect under this title if such parts or

22 components—

23 (A) are essential to the functioning of the

24 commodity;
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1 (B) are customarily included in sales of the

2 commodity in countries other than controlled

3 countries; and

4 (C) comprise 25 percent or less of the total

5 value of the commodity,

6 unless the commodity itself, if exported, would by

7 virtue of the functional characteristics of the com8 modity as a whole meet the requirements of sub9 paragraph (A) or (B) of section 105(a)(1).

10 (2) REEXPORTS OF FOREIGN-MADE ITEMS IN11 CORPORATING U.S. ITEMS.—

12 (A) COMMODITIES.—(i) Subject to clause

13 (ii), no authority or permission may be required

14 under section 105 or 106 to reexport a com15 modity that is produced in a country other than

16 the United States and incorporates commodities

17 that are subject to the jurisdiction of the

18 United States, if the value of the controlled

19 United States content of the commodity pro20 duced in such other country is 25 percent or

21 less of the total value of the commodity.

22 (ii) No authority or permission may be re23 quired under section 106 to reexport to a ter24 rorist country, or to a country against which an

25 embargo described in section 106(f)(1) is in ef-
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1 fect, a commodity that is produced in a country

2 other than the United States and incorporates

3 commodities that are subject to the jurisdiction

4 of the United States, if the value of the con5 trolled United States content of the commodity

6 produced in such other country is 10 percent or

7 less of the total value of the commodity.

8 (iii) For purposes of clause (ii), a ‘‘terror9 ist country’’ is a country with respect to which

10 a determination is in effect that was made

11 under section 106(i)(1)(A) of this Act, or sec12 tion 6(j)(1)(A) of the Export Administration

13 Act of 1979, that the government of such coun14 try has repeatedly provided support for acts of

15 international terrorism.

16 (B) TECHNOLOGY.—(i) No authority or

17 permission may be required under section 105

18 to reexport technology that is produced in a

19 country other than the United States and is

20 commingled with or drawn from technology that

21 is produced in the United States, if the value

22 of the controlled United States content of the

23 technology produced in such other country is 25

24 percent or less of the total value of the tech25 nology.
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1 (ii) No authority or permission may be re2 quired under section 106 to reexport technology

3 that is produced in a country other than the

4 United States and is commingled with or drawn

5 from technology that is produced in the United

6 States, if the value of the controlled United

7 States content of the technology produced in

8 such other country is 10 percent or less of the

9 total value of the technology.

10 (C) CONTROLLED CONTENT.—For pur11 poses of this paragraph, the ‘‘controlled United

12 States content’’ of a commodity or technology

13 means those commodities or technology that—

14 (i) are subject to the jurisdiction of

15 the United States;

16 (ii) are incorporated into the commod17 ity or technology; and

18 (iii) would, at the time of the reex19 port, require a validated license under sec20 tion 105 or 106 if exported from the Unit21 ed States to a country to which the com22 modity or technology is to be reexported.

23 (D) TREATMENT OF CERTAIN TECHNICAL

24 DATA.—For purposes of this subsection, tech25 nology and source code used to design or
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1 produce commodities or software produced in a

2 country other than the United States are not

3 incorporated into such commodities or software.

4 (k) EXCEPTIONS FOR MEDICAL AND HUMANITARIAN

5 PURPOSES.—This title does not authorize controls on—

6 (1) medicine or medical supplies; or

7 (2) donations of items that are intended to

8 meet basic human needs, including food, educational

9 materials, seeds, hand tools, water resources equip10 ment, clothing and shelter materials, and basic

11 household supplies.

12 (l) SANCTITY OF EXISTING CONTRACTS AND LI13 CENSES.—

14 (1) IN GENERAL.—The President may not pro15 hibit the export of items under section 105 or 106—

16 (A) in performance of a contract, agree17 ment, or other contractual commitment entered

18 into before the effective date of any export con19 trols imposed on such items by this title, or the

20 date on which the President reports to the Con21 gress the President’s intention to impose con22 trols on the export of such items, whichever

23 date occurs first, or

24 (B) under a validated license or other au25 thorization issued under this title before the ef-
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1 fective date of any export controls imposed on

2 such items by this title, or the date on which

3 the President reports to the Congress the Presi4 dent’s intention to impose controls on the ex5 port of such items, whichever date occurs first.

6 (2) EXCEPTION.—The prohibition in paragraph

7 (1) shall not apply if the President determines and

8 certifies to the Congress that—

9 (A) a breach of the peace poses a serious

10 and direct threat to the strategic interest of the

11 United States;

12 (B) the prohibition of exports under each

13 such contract, agreement, commitment, license,

14 or authorization will be directly instrumental in

15 remedying the situation posing the direct

16 threat; and

17 (C) the export controls will continue only

18 so long as the direct threat persists.

19 The authority of the President to make determina20 tions under this paragraph may not be delegated.

21 (m) PUBLICATION OF ACTIONS.—

22 (1) DECISIONS AND ACTIONS OF THE SEC23 RETARY.—

24 (A) IN GENERAL.—The Secretary shall

25 publish in the Federal Register, to the greatest
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1 extent practicable, actions, procedures, and de2 cisions of the Secretary under this title, taking

3 into account restrictions on disclosure of classi4 fied or confidential information. The following

5 determinations of the Secretary shall in every

6 case be published in the Federal Register, un7 less a private party requested the determination

8 and asked that it not be published:

9 (i) Classification of a commodity or

10 technology on the control index.

11 (ii) Calculation of a commonly-used

12 control index parameter for a commodity

13 or technology, including all officially ac14 cepted composite theoretical performance

15 calculations for computers and

16 microprocessors.

17 (B) NOTICE OF REVISIONS.—Whenever the

18 Secretary makes any revision in the control

19 index with respect to any commodity or tech20 nology, or with respect to any country or des21 tination affected by controls imposed under sec22 tion 105 or section 106, the Secretary shall

23 publish in the Federal Register a notice of such

24 revision and shall specify in such notice under

25 which authority the revision is being made.
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1 (2) EXPORT CONTROL REGIME ACTIONS.—

2 (A) IN GENERAL.—Not more than 90 days

3 after the date of the enactment of this Act, the

4 Secretary shall publish in the Federal Register

5 the full text of the lists of controlled items of

6 all export control regimes and all notes and un7 derstandings of the regimes concerning such

8 lists. The Secretary shall update the publication

9 under the preceding sentence at least once in

10 each 1-year period occurring after the original

11 publication under this subparagraph.

12 (B) CONTENTS.—The Secretary shall pub13 lish in the Federal Register—

14 (i) the full text of any agreements af15 fecting the lists of controlled items of all

16 export control regimes, together with all

17 notes, understandings, and other aspects of

18 such agreements and all revisions to such

19 texts;

20 (ii) subject to the limitations set forth

21 in subsection (g), decisions on requests for

22 exceptions permitted by such export con23 trol regimes for particular exports;
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1 (iii) other actions and decisions of

2 such export control regimes, to the maxi3 mum extent possible; and

4 (iv) unreliable end users with respect

5 to items on which export controls are im6 posed under this title, and persons to

7 whom sanctions have been applied, or

8 whose export privileges have been denied,

9 under this title.

10 (C) TIMING.—Such publication shall be

11 made not more than 30 days after the agree12 ments are reached, the decisions are made, the

13 actions are taken, or the information becomes

14 available, as the case may be.

15 (D) EXCEPTION.—The publication of a

16 particular matter need not be made under this

17 paragraph to the extent that the Secretary sub18 mits a written finding to the Congress that to

19 publish that matter would be contrary to na20 tional or international security, would abridge

21 the confidentiality of the decision-making proc22 esses of an export control regime, or would oth23 erwise be inconsistent with the obligations of

24 the United States to an export control regime.
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1 (n) NOTIFICATION OF THE PUBLIC; CONSULTATION

2 WITH INDUSTRY; RECORDKEEPING.—

3 (1) NOTIFICATION OF THE PUBLIC.—The Sec4 retary shall keep the public fully apprised of changes

5 in export control policy and procedures instituted

6 under this title with a view to encouraging trade.

7 (2) CONSULTATION WITH INDUSTRY.—The Sec8 retary shall meet regularly with export advisory com9 mittees appointed under section 104(f) in order to

10 obtain their views on United States export control

11 policy and the foreign availability of commodities

12 and technology.

13 (o) DELEGATION TO COCOM.—The Secretary, or an

14 officer or employee of the Department of Commerce des15 ignated by the Secretary, shall be a member of the perma16 nent United States delegation to COCOM or its successor

17 export control regime.

18 (p) EXPORT CONTROL ATTACHES.—The Secretary

19 shall assign a full-time export control attache to each of

20 those countries that—

21 (1) pose the greatest threat to the United

22 States and its allies with respect to the proliferation

23 of weapons of mass destruction and missiles; and

24 (2) received exports pursuant to the largest

25 number of licenses issued under sections 105 and
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1 106, during the preceding 2 calendar years, as com2 pared to licenses issued under such sections for ex3 ports to all countries.

4 Each such attache shall give priority to conducting post5 shipment verifications, prelicense checks, and other mon6 itoring of end uses in the country to which the attache

7 is assigned.

8 (q) AUTHORIZATION FOR TECHNICAL DATA.—A vali9 dated license authorizing the export of any commodities

10 or technology under this title shall also authorize the ex11 port of operation technical data related to such commod12 ities or technology, whether or not such data is specifically

13 referenced in the license or license application, if the tech14 nical level of the data does not exceed the level reasonably

15 necessary to install, repair, maintain, inspect, operate, or

16 use the commodities or technology.

17 (r) LICENSES FOR SPARE PARTS NOT REQUIRED.—

18 An individual validated license shall not be required under

19 this title for replacement parts which are exported to re20 place on a one-for-one basis parts that were in a commod21 ity that was lawfully exported from the United States, un22 less the President determines that such a license should

23 be required for such parts.
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1 SEC. 115. ANNUAL REPORT.

2 (a) CONTENTS.—Not later than March 1 of each

3 year, the Secretary shall submit to the Congress a report

4 on the administration of this title during the preceding

5 calendar year. All agencies shall cooperate fully with the

6 Secretary in providing information for such report. Such

7 report shall include detailed information on the following:

8 (1) The implementation of the policies set forth

9 in section 103, including delegations of authority by

10 the President under section 104(d), consultations

11 with the export advisory committees established

12 under section 104(f), and any changes in the exer13 cise of the authorities contained in sections 105(a),

14 106(a), 107(a), and 108(a).

15 (2) With respect to multilateral export controls

16 imposed or maintained under section 105, the fol17 lowing:

18 (A) The effectiveness of each export con19 trol regime, as required by section 105(h), in20 cluding all information required by section

21 105(h)(2).

22 (B) Adjustments to multilateral export

23 controls.

24 (C) The implementation of the export li25 censing treatment authorized by section 105(e).
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1 (D) Determinations of foreign availability

2 made under section 105(i), the criteria used to

3 make such determinations, the removal of any

4 export controls under such subsection, and any

5 evidence demonstrating a need to maintain ex6 port controls notwithstanding foreign availabil7 ity.

8 (E) The operation of the indexing system

9 under section 105(k).

10 (3) With respect to unilateral export controls

11 imposed under section 106, the following:

12 (A) The effectiveness of such controls.

13 (B) Adjustments to such controls pursuant

14 to negotiations under subsections (a)(5) and (c)

15 of section 106.

16 (C) Embargoes imposed, maintained, or re17 moved in accordance with section 106, including

18 descriptions of each embargo and the rationale

19 for imposing, maintaining, or removing such

20 embargo.

21 (4) Short supply controls and monitoring under

22 section 107.

23 (5) Organizational and procedural changes un24 dertaken in furtherance of the policies set forth in

25 this title, including changes to increase the efficiency
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1 of the export licensing process and to fulfill the re2 quirements of section 109, including an accounting

3 of appeals received, and actions taken pursuant

4 thereto, under section 109(g).

5 (6) Violations under section 110 and enforce6 ment activities under section 113.

7 (7) The issuance of regulations under this title.

8 (8) The results, in as much detail as may be in9 cluded consistent with the strategic and political in10 terests of the United States and the need to main11 tain the confidentiality of proprietary information, of

12 the reviews of the security control list, and any revi13 sions to the list resulting from such reviews, re14 quired by section 105.

15 (9) Each of the assessments described in sec16 tion 114(a)(2).

17 (b) INFORMATION ON SECTION 111.—

18 (1) INFORMATION TO BE INCLUDED.—The

19 President shall include in each annual report under

20 subsection (a)—

21 (A) a description of the actions taken to

22 carry out section 111, including the imposition

23 and removal of sanctions under such section;

24 (B) a description of the current efforts of

25 foreign countries and subnational groups to ac-
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1 quire equipment, materials, or technology to de2 velop, produce, or use chemical or biological

3 weapons, together with an assessment of the

4 current and likely future capabilities of such

5 countries and groups to develop, produce, stock6 pile, deliver, transfer, or use such weapons;

7 (C) a description of—

8 (i) the use of chemical or biological

9 weapons by foreign countries in violation of

10 international law,

11 (ii) the use of chemical or biological

12 weapons by subnational groups,

13 (iii) substantial preparations by for14 eign countries and subnational groups to

15 do so, and

16 (iv) the development, production,

17 stockpiling, or use of chemical or biological

18 weapons by foreign countries and

19 subnational groups; and

20 (D) a description of the extent to which

21 foreign persons or governments have knowingly

22 and materially assisted third countries or

23 subnational groups to acquire equipment, mate24 rial, or technology intended to develop, produce,

25 or use chemical or biological weapons.
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1 (2) INFORMATION SHOULD BE UNCLASSI2 FIED.—To the extent practicable, information sub3 mitted under paragraph (1) should be based on un4 classified information.

5 SEC. 116. DEFINITIONS.

6 As used in this title:

7 (1) AUSTRALIA GROUP.—The term ‘‘Australia

8 Group’’ means the multilateral arrangement in

9 which the United States participates that seeks to

10 prevent the proliferation of chemical and biological

11 weapons.

12 (2) COCOM.—The term ‘‘COCOM’’ means the

13 Coordinating Committee for Multilateral Export

14 Controls, and any successor entity.

15 (3) COMMODITY.—The term ‘‘commodity’’

16 means any article, natural or manmade substance,

17 material, supply, or manufactured product, including

18 inspection and test equipment, and excluding tech19 nical data.

20 (4) CONTROL OR CONTROLLED.—The terms

21 ‘‘control’’ and ‘‘controlled’’ refer to a requirement

22 that an export have a validated license or written re23 export authorization.
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1 (5) CONTROL INDEX.—The term ‘‘control

2 index’’ means the United States Commodity Control

3 Index established under section 104(c)(1).

4 (6) CONTROLLABLE.—The term ‘‘controllable’’

5 means capable of being made subject to an effective

6 prohibition or significant restriction on exports. A

7 commodity or technology shall not be considered to

8 be controllable unless it is—

9 (A) manufactured or sold by only a limited

10 number of suppliers who can be positively iden11 tified;

12 (B) consumed or used by only a limited

13 number of end users who can be positively iden14 tified and whose export activities can be con15 trolled; and

16 (C) individually traceable or not easily con17 cealed or disguised.

18 (7) CONTROLLED COUNTRY, CONTROLLED END

19 USE, AND CONTROLLED END USER.—(A) The term

20 ‘‘controlled country’’ means a country identified

21 under section 105(b)(3), a country on which controls

22 are imposed under section 106, and, for purposes of

23 requiring licenses under section 111(a)(1)(B), a

24 country of concern (as defined in section

25 111(a)(1)(C)).
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1 (B) The term ‘‘controlled end use’’ means an

2 end use identified under section 105(b)(3) and an

3 end use for which exports are controlled under sec4 tion 106.

5 (C) The term ‘‘controlled end user’’ means an

6 end user identified under section 105(b)(3) and an

7 end user to which exports are controlled under sec8 tion 106.

9 (8) COOPERATING COUNTRY.—The term ‘‘co10 operating country’’ means a country that, pursuant

11 to an agreement or other arrangement with the

12 United States or an export control regime, controls

13 exports of items that are consistent with the criteria

14 and standards of that export control regime.

15 (9) END USE AND END USER.—(A) The term

16 ‘‘end use’’ means the intended application or use of

17 an item as represented by an export license appli18 cant.

19 (B) The term ‘‘end user’’ means the person lo20 cated abroad who is the true party in interest in ac21 tually receiving an export for the end use designated

22 for the export.

23 (10) EXPORT.—The term ‘‘export’’—

24 (A) means—
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1 (i) an actual shipment, transfer, or

2 transmission of items out of the United

3 States; and

4 (ii) a transfer to any person of items

5 either within the United States or outside

6 of the United States with the knowledge or

7 intent that the items will be shipped out8 side the United States, transferred, or

9 transmitted to an unauthorized end user,

10 end use, or destination;

11 (B) includes the transfer of the registra12 tion of a satellite or operational control of a

13 satellite from a party resident in the United

14 States to a party resident in another country;

15 and

16 (C) includes the term ‘‘reexport’’.

17 (11) EXPORT CONTROL REGIME, MULTILAT18 ERAL EXPORT CONTROL REGIME, MULTILATERAL

19 REGIME, AND REGIME.—The terms ‘‘export control

20 regime’’, ‘‘multilateral export control regime’’, ‘‘mul21 tilateral regime’’, and ‘‘regime’’ each mean a group

22 of two or more countries which includes the United

23 States and the purpose of which is to curtail, by

24 means of cooperative export controls, access to cer-
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1 tain items by certain countries, by certain end users,

2 or for certain end uses.

3 (12) FOREIGN AVAILABILITY, AVAILABLE IN

4 FACT TO CONTROLLED COUNTRIES.—The terms

5 ‘‘foreign availability’’ and ‘‘available in fact to con6 trolled countries’’ each include production or avail7 ability of any item from any country—

8 (A) in which the item is not restricted for

9 export to any controlled country; or

10 (B) in which such export restrictions are

11 determined by the Secretary to be ineffective.

12 For purposes of subparagraph (B), the mere inclu13 sion of items on a list of items subject to export con14 trols imposed pursuant to a multilateral export con15 trol regime shall not alone constitute credible evi16 dence that the government of a country provides an

17 effective means of controlling the export of such

18 items to controlled countries.

19 (13) FOREIGN PERSON.—The term ‘‘foreign

20 person’’ means—

21 (A) an individual who is not a United

22 States citizen or an alien admitted for perma23 nent residence to the United States;

24 (B) any corporation, partnership, business

25 association, society, trust, organization, or other
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1 nongovernmental entity created or organized

2 under the laws of a foreign country or that has

3 its principal place of business outside the Unit4 ed States; and

5 (C) any governmental entity of a foreign

6 country that is operating as a business enter7 prise.

8 (14) ITEM.—The term ‘‘item’’ means any com9 modity or technology.

10 (15) LICENSE.—The term ‘‘license’’ includes

11 both validated licenses and written reexport author12 izations.

13 (16) MEMBER OF AN EXPORT CONTROL RE14 GIME.—A ‘‘member’’ of an export control regime is

15 a country that participates in that regime.

16 (17) MISSILE.—The term ‘‘missile’’ means any

17 missile system or component listed in category I of

18 the MTCR Annex, and any other unmanned delivery

19 system or component of similar capability, as well as

20 the specially designed production facilities for these

21 systems.

22 (18) MISSILE TECHNOLOGY CONTROL REGIME;

23 MTCR.—The term ‘‘Missile Technology Control Re24 gime’’ or ‘‘MTCR’’ means the policy statement and

25 guidelines between the United States, the United
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1 Kingdom, the Federal Republic of Germany, France,

2 Italy, Canada, and Japan, announced on April 16,

3 1987, to restrict sensitive missile-related transfers

4 based on the MTCR Annex, and any amendments

5 thereto.

6 (19) MTCR ANNEX.—The term ‘‘MTCR

7 Annex’’ means the Equipment and Technology

8 Annex of the MTCR, and any amendments thereto.

9 (20) NUCLEAR EXPLOSIVE DEVICE.—The term

10 ‘‘nuclear explosive device’’ means any device, wheth11 er assembled or disassembled, that is designed to

12 produce an instantaneous release of an amount of

13 nuclear energy from special nuclear material that is

14 greater than the amount of energy that would be re15 leased from the detonation of one pound of trinitro16 toluene (TNT).

17 (21) NUCLEAR SUPPLIERS’ GROUP.—The term

18 ‘‘Nuclear Suppliers’ Group’’ means the multilateral

19 arrangement in which the United States participates

20 whose purpose is to restrict the transfers of items

21 with relevance to the nuclear fuel cycle or nuclear

22 explosive applications.

23 (22) PERSON.—The term ‘‘person’’ includes the

24 singular and the plural and any individual, partner25 ship, corporation, or other form of association, in-
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1 cluding (except when used in the term ‘‘foreign per2 son’’ or ‘‘United States person’’) any government or

3 agency thereof.

4 (23) REEXPORT.—The term ‘‘reexport’’ means

5 the shipment, transfer, transshipment, or diversion

6 of items from one foreign country to another.

7 (24) SECRETARY.—The term ‘‘Secretary’’

8 means the Secretary of Commerce.

9 (25) SOFTWARE.—The term ‘‘software’’ means

10 one or more computer programs or microprograms

11 fixed in any tangible medium of expression.

12 (26) TECHNOLOGY.—The term ‘‘technology’’

13 means specific information necessary for the devel14 opment, production, or use of a commodity, and in15 cludes software.

16 (27) UNILATERAL AND UNILATERALLY.—(A)

17 The terms ‘‘unilateral’’ and ‘‘unilaterally’’, with re18 spect to an export control or license treatment, refer

19 to a license requirement or license treatment that is

20 not agreed to by a multilateral regime for any or all

21 of the following elements: the purpose of the license

22 requirement or treatment, the items subject to the

23 license requirement or treatment, the standard of re24 view for applications for such license, the domestic

25 and international procedures for review of such li-
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1 cense applications, and the controlled countries, and

2 end uses or end users, to which the review policy ap3 plies.

4 (B) An export control or license treatment shall

5 be considered to be unilateral or unilaterally main6 tained by the United States if it is a restriction, con7 dition, or interpretation imposed by the Secretary

8 upon commodities or technology, or upon a license

9 application for the export of commodities or tech10 nology, that is not imposed or implemented in simi11 lar circumstances by other members of an export

12 control regime, or that is not otherwise specifically

13 permitted by this title.

14 (28) UNITED STATES.—The term ‘‘United

15 States’’ means the States of the United States, the

16 District of Columbia, and any commonwealth, terri17 tory, dependency, or possession of the United States,

18 and includes the Outer Continental Shelf, as defined

19 in section 2(a) of the Outer Continental Shelf Lands

20 Act (43 U.S.C. 1331(a)).

21 (29) UNITED STATES PERSON.—The term

22 ‘‘United States person’’ means any United States

23 resident or national (other than an individual resi24 dent outside the United States and employed by

25 other than a United States person), any domestic
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1 concern (including any permanent domestic estab2 lishment of any foreign concern) and any foreign

3 subsidiary or affiliate (including any permanent for4 eign establishment) of any domestic concern which is

5 controlled in fact by such domestic concern, as de6 termined under regulations of the President.

7 (30) WEAPONS OF MASS DESTRUCTION.—The

8 term ‘‘weapons of mass destruction’’ means any

9 chemical, biological, or nuclear weapon, including a

10 nuclear explosive device.

11 SEC. 117. EFFECTS ON OTHER ACTS.

12 (a) COMMODITY JURISDICTION.—

13 (1) IN GENERAL.—Notwithstanding any other

14 provision of law—

15 (A) an item agreed for control on the

16 International Munitions List of COCOM shall

17 be subject to control under the Arms Export

18 Control Act and not under this title;

19 (B) except as provided in paragraphs (2),

20 (3), and (5), an item which is on the Inter21 national Industrial List of COCOM shall be

22 subject to control under this title and not under

23 the Arms Export Control Act; and

24 (C) no item may be included on both the

25 control index and the United States Munitions
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1 List after publication of the lists required under

2 paragraph (4) and resolution of any dispute

3 with respect to such lists under paragraph (5).

4 (2) EXCEPTIONS.—(A) An item described in

5 subparagraph (B) that is not on the International

6 Munitions List may be subject to control under the

7 Arms Export Control Act—

8 (i)(I) for a period of 9 months after the

9 date on which the United States proposes to

10 COCOM that the item be added to the Inter11 national Munitions List; and

12 (II) for an additional 9-month period, but

13 only if negotiations in COCOM to add the item

14 to the International Munitions List are continu15 ing; or

16 (ii) if the Secretary of State, in consulta17 tion with the Secretary, so determines, except

18 that if the Secretary disagrees with the Sec19 retary of State with respect to such item, the

20 item may be subject to control under the Arms

21 Export Control Act only if the disagreement is

22 resolved by the Secretaries or by the President

23 pursuant to the procedures set forth in sub24 paragraphs (B) and (C) of paragraph (5).
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1 (B) An item referred to in subparagraph (A) is

2 an item that—

3 (i) is specifically designed, developed, con4 figured, adapted, or modified for military or in5 telligence application;

6 (ii) does not have significant civil applica7 tions; and

8 (iii) is not a component the performance

9 capacity and function of which are essentially

10 equivalent to those used for civil applications.

11 (3) PRESIDENTIAL DETERMINATIONS.—An item

12 that is not on the International Munitions List may

13 be subject to control under the Arms Export Control

14 Act if the President—

15 (A) determines that extraordinary cir16 cumstances exist affecting the national security

17 of the United States, which require that the

18 item be controlled under the Arms Export Con19 trol Act;

20 (B) proposes to COCOM that the item be

21 added to the International Munitions List; and

22 (C) not later than 10 days after making

23 the determination under subparagraph (A),

24 submits a report to the Speaker of the House

25 of Representatives and the President pro tem-
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1 pore of the Senate, describing in detail the rea2 sons for the determination, in appropriate clas3 sified form, as necessary.

4 (4) PUBLICATION OF LISTS.—

5 (A)(i) Not later than 3 months after the

6 date of the enactment of this Act, the Secretary

7 shall publish the control index and the Sec8 retary of State shall publish the United States

9 Munitions List, with all revisions that have

10 been made in accordance with this subsection.

11 (ii) Not later than 3 months after the date

12 of the enactment of this Act, the Secretary of

13 State shall publish in a separate list those items

14 remaining subject to control under the Arms

15 Export Control Act under paragraph (2).

16 (iii) The publications required by clauses

17 (i) and (ii) shall be made in the Federal Reg18 ister.

19 (B) If either the Secretary or the Secretary

20 of State fails to publish a revised list in accord21 ance with subparagraph (A), there shall be ex22 cluded from the list of the Secretary that did

23 not so publish a revised list any item included

24 on the list of the Secretary that did so publish

25 a revised list.
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1 (5) COMMODITY JURISDICTION DISPUTE RESO2 LUTION.—

3 (A) Whenever—

4 (i) the Secretary or the Secretary of

5 State receives a request to determine

6 whether an item is subject to control under

7 this title or the Arms Export Control Act,

8 (ii) either Secretary finds that an item

9 is included on both the control index and

10 the United States Munitions List,

11 (iii) an item appearing on the list of

12 one Secretary under paragraph (4)(A)(i) is

13 considered by the other Secretary to be

14 under the jurisdiction of that other Sec15 retary, or

16 (iv) the Secretary disagrees with the

17 inclusion of an item on the list published

18 under paragraph (4)(A)(ii),

19 the Secretary or the Secretary of State (as the

20 case may be) shall refer the matter and any rel21 evant information to the other Secretary.

22 (B) The 2 Secretaries shall have a period

23 of 15 days following the referral of a matter

24 under subparagraph (A) to resolve any dif25 ferences with respect to the matter involved.
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1 (C) If the 2 Secretaries fail to resolve such

2 differences within that 15-day period, either

3 Secretary may refer the matter to the Presi4 dent, who, not later than 15 days after receiv5 ing the referral, shall notify the 2 Secretaries of

6 his determination on the matter in dispute.

7 (D) In the event that either the Secretary

8 or the Secretary of State does not respond to

9 a referral under subparagraph (A) by the other

10 Secretary, the Secretary that did not so respond

11 shall be deemed to concur with the other Sec12 retary on the matter involved.

13 (6) REFERENCES.—For purposes of this sub14 section, any reference to the ‘‘International Muni15 tions List’’ or the ‘‘International Industrial List’’ in16 cludes a reference to any successor list to the Inter17 national Munitions List or the International Indus18 trial List, as the case may be.

19 (b) EXPORT CONTROLS ON TELECOMMUNI20 CATIONS.—

21 (1) NO LICENSE REQUIRED FOR CIVIL END

22 USES.—The Secretary shall not require a validated

23 license for export or authorization for reexport of

24 telecommunications equipment to civil end users for

25 civil end uses in any of the republics of the former
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1 Soviet Union, the People’s Republic of China, Po2 land, the Czech Republic, Slovakia, Bulgaria, Roma3 nia, Albania, Estonia, Lithuania, Latvia, Cambodia,

4 Laos, Mongolia, or Vietnam.

5 (2) DEFINITIONS.—For purposes of this sub6 section, the term ‘‘telecommunications equipment’’

7 includes—

8 (A) those items described in the Advisory

9 Notes to Category 5 of the Commerce Control

10 List set forth in part 799 of title 15, Code of

11 Federal Regulations, as of April 4, 1994, that

12 indicate likelihood of approval—

13 (i) for country groups QWY and the

14 People’s Republic of China,

15 (ii) only for the People’s Republic of

16 China, or

17 (iii) to specified destinations in coun18 try group Y; and

19 (B) those entries and subentries listed in

20 export control classification numbers 5AO2A

21 (except subentries h and i), 5A03A, 5A04A,

22 5A05A, 5A06A, 5B01A, 5B02A, 5C01A,

23 5D01A, 5D02A, and 5D03A of the Commerce

24 Control List set forth in part 799 of title 15,

25 Code of Federal Regulations, as of April 4,
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1 1994, but not including software designed or

2 modified for the development, production, or

3 use of items controlled under export control

4 classification number 5A01A of the Commerce

5 Control List.

6 (c) ASSESSMENT OF ENCRYPTION SOFTWARE MAR7 KET.—

8 (1) PRESIDENTIAL REPORT REQUIRED.—Not

9 later than 150 days after the date of enactment of

10 this Act, the President shall submit a report to the

11 Committee on Banking, Housing, and Urban Affairs

12 of the Senate and the Committee on Foreign Affairs

13 of the House of Representatives.

14 (2) CONTENTS OF REPORT.—The report re15 quired by paragraph (1) shall—

16 (A) assess the current and future inter17 national market for computer software with

18 encryption;

19 (B) assess the impact of United States

20 encryption export controls on the international

21 competitiveness of the United States computer

22 software industry and their economic con23 sequences, including the impact on exports and

24 jobs in the United States computer software in25 dustry; and
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1 (C) review the types, quality and market

2 penetration of foreign produced encryption soft3 ware products and any controls that influence

4 the international marketability of encryption

5 software products.

6 (3) CONSULTATION.—In preparing the report

7 required under paragraph (1), the President shall

8 consult with representatives of the United States

9 computer software industry. Confidential business

10 information provided by United States industry in

11 the course of preparing the report shall not be dis12 closed, except with the permission of the submitter

13 or when aggregated so that the source of the infor14 mation cannot be identified.

15 (d) IN GENERAL.—To the extent provided in this

16 title, this title shall be construed to modify, repeal, super17 sede, and otherwise affect the provisions of any other laws

18 authorizing control over exports of any commodities or

19 technology.

20 (e) COORDINATION OF CONTROLS.—The authority

21 granted under this title and under section 38 of the Arms

22 Export Control Act (22 U.S.C. 2778) shall be exercised

23 in such a manner as to share information regarding the

24 trustworthiness of parties.
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1 (f) CIVIL AIRCRAFT EQUIPMENT.—Notwithstanding

2 any other provision of law, any civil aircraft product, or

3 any technology used in a civil aircraft product, that is

4 standard equipment certified or scheduled to be certified

5 by the Federal Aviation Administration and is an integral

6 part of such aircraft, shall be subject to export controls

7 exclusively under this title.

8 (g) NONPROLIFERATION CONTROLS.—The provisions

9 of section 109 shall supersede the procedures published

10 pursuant to section 309(c) of the Nuclear Non-Prolifera11 tion Act of 1978 (42 U.S.C. 2139a(c)) to the extent such

12 procedures are inconsistent with the provisions of section

13 109.

14 (h) AMENDMENTS TO THE INTERNATIONAL EMER15 GENCY ECONOMIC POWERS ACT.—

16 (1) PRESIDENTIAL AUTHORIZATION.—Section

17 203(a) of the International Emergency Economic

18 Powers Act (50 U.S.C. 1702(a)) is amended—

19 (A) by redesignating paragraphs (2) and

20 (3) as paragraphs (3) and (4), respectively, and

21 (B) by inserting after paragraph (1) the

22 following new paragraph:

23 ‘‘(2) The President may prohibit or curtail the expor24 tation of any items on the United States Commodity Con25 trol Index that are subject to the jurisdiction of the United
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1 States under this title only to the extent provided in, and

2 subject to the criteria of, sections 105, 106, and 114 of

3 the Export Act of 1994, unless such prohibition or curtail4 ment is part of an embargo (as described in section

5 106(f)(1) of the Export Act of 1994) against the country

6 concerned. The preceding sentence shall continue to apply

7 notwithstanding the expiration of the Export Act of

8 1994.’’.

9 (2) CONFIDENTIALITY OF INFORMATION.—The

10 International Emergency Economic Powers Act is

11 amended—

12 (A) by redesignating section 208 as section

13 209; and

14 (B) by inserting after section 207 the fol15 lowing:

16 ‘‘SEC. 208. CONFIDENTIALITY OF INFORMATION.

17 ‘‘(a) EXEMPTIONS FROM DISCLOSURE.—Information

18 obtained under this title before or after the enactment of

19 this section may be withheld only to the extent permitted

20 by statute, except that information submitted, obtained,

21 or considered in connection with an application for an ex22 port license or other export authorization under this title,

23 including the export license or other export authorization

24 itself, classification requests, information or evidence ob25 tained in the course of any investigation, and information
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1 obtained or furnished under this title in connection with

2 international agreements, treaties, or obligations shall be

3 withheld from public disclosure unless the release of such

4 information is determined by the Secretary to be in the

5 national interest.

6 ‘‘(b) INFORMATION TO CONGRESS AND GAO.—

7 ‘‘(1) IN GENERAL.—Nothing in this title shall

8 be construed as authorizing the withholding of infor9 mation from the Congress or from the General Ac10 counting Office.

11 ‘‘(2) AVAILABILITY TO THE CONGRESS.—

12 ‘‘(A) IN GENERAL.—All information ob13 tained at any time under this title regarding

14 the control of exports, including any report or

15 license application required under this title,

16 shall be made available to any committee or

17 subcommittee of Congress of appropriate juris18 diction upon the request of the chairman or

19 ranking minority member of such committee or

20 subcommittee.

21 ‘‘(B) PROHIBITION ON FURTHER DISCLO22 SURE.—No committee, subcommittee, or Mem23 ber of Congress shall disclose any information

24 obtained under this title or previous Acts re25 garding the control of exports which is submit-
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1 ted on a confidential basis to the Congress

2 under subparagraph (A) unless the full commit3 tee to which the information is made available

4 determines that the withholding of the informa5 tion is contrary to the national interest.

6 ‘‘(3) AVAILABILITY TO THE GAO.—

7 ‘‘(A) IN GENERAL.—Notwithstanding para8 graph (1), information referred to in paragraph

9 (2) shall, consistent with the protection of intel10 ligence, counterintelligence, and law enforce11 ment sources, methods, and activities, as deter12 mined by the agency that originally obtained

13 the information, and consistent with the provi14 sions of section 716 of title 31, United States

15 Code, be made available only by the agency,

16 upon request, to the Comptroller General of the

17 United States or to any officer or employee of

18 the General Accounting Office authorized by

19 the Comptroller General to have access to such

20 information.

21 ‘‘(B) PROHIBITION ON FURTHER DISCLO22 SURES.—No officer or employee of the General

23 Accounting Office shall disclose, except to the

24 Congress in accordance with this subsection,

25 any such information which is submitted on a
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1 confidential basis and from which any individ2 ual can be identified.

3 ‘‘(c) PENALTIES FOR DISCLOSURE OF CONFIDEN4 TIAL INFORMATION.—

5 ‘‘(1) VIOLATION.—Any officer or employee of

6 the United States, or any department or agency

7 thereof, who publishes, divulges, discloses, or makes

8 known in any manner or to any extent not author9 ized by law any information under this title that—

10 ‘‘(A) he or she obtains in the course of his

11 or her employment or official duties or by rea12 son of any examination or investigation made

13 by, or report or record made to or filed with,

14 such department or agency, or officer or em15 ployee thereof, and

16 ‘‘(B) is exempt from disclosure under this

17 section,

18 shall be subject to the penalties set forth in para19 graph (2).

20 ‘‘(2) PENALTIES.—The penalties for a violation

21 under paragraph (1) are as follows:

22 ‘‘(A) If the officer or employee acted know23 ingly, he or she shall be fined not more than

24 $10,000, or imprisoned not more than 1 year,
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1 or both, and shall be removed from office or

2 employment.

3 ‘‘(B) The officer or employee shall, either

4 in addition to or in lieu of any other penalty

5 that may be imposed, be subject to a civil pen6 alty of not more than $1,000 for each violation

7 under paragraph (1).’’.

8 (i) REGULATION OF EXPORT OF CERTAIN COMMER9 CIAL COMMUNICATIONS SATELLITES AND ASSOCIATED

10 EQUIPMENT.—

11 (1) REGULATION SOLELY UNDER THIS

12 TITLE.—Notwithstanding any other provision of law,

13 the export of commercial communications satellites,

14 including any integral components of such satellites,

15 which are designed for civil applications, including

16 items necessary to achieve the ultimate orbit location

17 of such satellites, and associated ground and test

18 equipment, when exported as part of a satellite sys19 tem for purposes of launch, shall be regulated under

20 this title. The Secretary shall consult with the Sec21 retary of Defense and the Secretary of State to de22 termine the satellites and components to which this

23 paragraph applies. The Secretary, in consultation

24 with the Secretary of State and the Secretary of De25 fense, shall prohibit the unauthorized transfer of
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1 missile equipment, data, or technology that are com2 ponents of any such satellite which is authorized for

3 export.

4 (2) AMENDMENT TO ARMS EXPORT CONTROL

5 ACT.—Section 38(a) of the Arms Export Control Act

6 (22 U.S.C. 2778(a)) is amended—

7 (A) in paragraph (3), by striking ‘‘In exer8 cising the authorities’’ and inserting ‘‘Except as

9 provided in paragraph (4), in exercising the au10 thorities’’; and

11 (B) by adding at the end the following new

12 paragraph:

13 ‘‘(4) The export of commercial communications sat14 ellites, including any integral components of such sat15 ellites, which are designed for civil applications, including

16 items necessary to achieve the ultimate orbit location of

17 such satellites, and associated ground and test equipment,

18 when exported as part of a satellite system for purposes

19 of launch, may be regulated only by the Secretary of Com20 merce under the Export Act of 1994, pursuant to section

21 117(i)(1) of that Act.’’.

22 (3) APPLICABILITY.—The amendments made

23 by this subsection shall apply only with respect to

24 the export of satellites on or after the date of the

25 enactment of this Act.
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1 SEC. 118. SECONDARY ARAB BOYCOTT.

2 (a) FINDINGS.—The Congress finds that—

3 (1) certain countries maintain an economic boy4 cott of Israel, including a secondary boycott of com5 panies that refuse to cooperate with the economic

6 boycott of Israel;

7 (2) the secondary Arab boycott has caused eco8 nomic damage to the countries that maintain the

9 boycott as well as to Israel;

10 (3) the secondary Arab boycott causes great

11 difficulties for United States firms that trade with

12 Israel, depriving them of trade opportunities and

13 violating internationally accepted principles of free

14 trade;

15 (4) the United States has a longstanding policy

16 opposing the Arab League boycott of Israel and

17 United States law prohibits American firms from

18 providing information to Arab countries to dem19 onstrate compliance with the boycott;

20 (5) American companies on the list maintained

21 by the Arab League of companies prohibited from

22 doing business in Arab League countries can be de23 nied contracts by the Kuwaiti Government for the

24 reconstruction of Kuwait because they conduct busi25 ness with Israel;
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1 (6) under the leadership of the executive

2 branch, the United States has sent a clear, consist3 ent, and unambiguous message that the Arab

4 League boycott of companies that do business with

5 Israel is an obstacle to peace and should be termi6 nated;

7 (7) the United States Trade Representative, in

8 August 1993, commissioned the International Trade

9 Commission to undertake a study of the boycott’s

10 impact on United States businesses which will pro11 vide, for the first time, a carefully researched esti12 mate of the impact of the boycott on the United

13 States;

14 (8) the executive branch has conducted an ac15 tive diplomatic campaign to convince Arab League

16 countries that the time to end the secondary Arab

17 boycott and the economic discrimination against

18 United States businesses is now;

19 (9) under United States leadership, the G–7

20 countries have unconditionally called for an end to

21 the Arab boycott;

22 (10) the President, the Vice President, the Sec23 retary of State, the Secretary of Commerce, and

24 other senior executive branch officials have assured

25 the Congress that they will speak forcefully and can-
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1 didly, in every forum which touches upon the search

2 for peace in the Middle East, about the need to end

3 the secondary Arab boycott;

4 (11) the Congress wishes to support the efforts

5 of the executive branch and to help see the promises

6 made to date translated into tangible results;

7 (12) the quarterly reports from the Office of

8 Anti-Boycott Compliance of the Department of Com9 merce show no loosening in enforcement by Arab

10 League countries of the secondary Arab boycott; and

11 (13) the recent statements made by Arab lead12 ers indicating that the secondary Arab boycott is no

13 longer being enforced must be translated into action,

14 as measured by quarterly reports from the Office of

15 Anti-Boycott Compliance of the Department of Com16 merce.

17 (b) SENSE OF CONGRESS.—

18 (1) ENDING SECONDARY BOYCOTT.—It is the

19 sense of the Congress that the countries of the Arab

20 League should end the secondary Arab boycott.

21 (2) ACTIONS TO END SECONDARY BOYCOTT.—

22 The United States will consider the secondary Arab

23 boycott to have ended when—
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1 (A) the Arab League issues a public pro2 nouncement that the Arab League has ended

3 the secondary Arab boycott;

4 (B) all activities carried out by the Central

5 Office for the Boycott of Israel in support of

6 the secondary Arab boycott have been termi7 nated;

8 (C) the Arab League and the individual

9 countries that are members of the Arab League

10 have terminated the practice of barring United

11 States persons and foreign companies that do

12 not comply with the secondary Arab boycott

13 from doing business with countries that are

14 members of the Arab League, and have de15 clared null and void any existing list of such

16 barred persons and companies; and

17 (D) the Arab League, and the individual

18 countries that are the members of the Arab

19 League, have ceased requesting United States

20 persons from taking actions prohibited under

21 section 108(a).

22 (c) DEFINITION.—For purposes of this section, the

23 term ‘‘secondary Arab boycott’’ means the refusal to do

24 business with persons who do not comply with requests
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1 to take any action prohibited under section 108(a) with

2 respect to Israel.

3 SEC. 119. AUTHORIZATION OF APPROPRIATIONS.

4 There are authorized to be appropriated to the De5 partment of Commerce to carry out the purposes of this

6 Act—

7 (1) $43,342,000 for fiscal year 1995, and

8 $45,336,000 for fiscal year 1996; and

9 (2) such additional amounts for each of the fis10 cal years 1995 and 1996 as may be necessary for in11 creases in salary, pay, retirement, other employee

12 benefits authorized by law, and other nondiscretion13 ary costs.

14 SEC. 120. CONFORMING AMENDMENTS TO OTHER LAWS.

15 (a) ARMS EXPORT CONTROL ACT.—

16 (1) Section 38 of the Arms Export Control Act

17 (22 U.S.C. 2778) is amended—

18 (A) in subsection (e)—

19 (i) in the first sentence by striking

20 ‘‘subsections (c)’’ and all that follows

21 through ‘‘12 of such Act’’ and inserting

22 ‘‘subsections (b), (c), (d) and (e) of section

23 110 of the Export Act of 1994, by section

24 113(a) of such Act, and by section 114(g)

25 of such Act’’; and
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1 (ii) in the third sentence by striking

2 ‘‘11(c) of the Export Administration Act of

3 1979’’ and inserting ‘‘110(c) of the Export

4 Act of 1994’’; and

5 (B) in subsection (g)(1)(A) by striking

6 clause (ii) and inserting the following:

7 ‘‘(ii) section 110 of the Export Act of

8 1994,’’.

9 (2) Section 39A(c) of the Arms Export Control

10 Act, as added by the Foreign Relations Authoriza11 tion Act, Fiscal Years 1994 and 1995, is amended—

12 (A) by striking ‘‘(c),’’ and all that follows

13 through ‘‘12(a)’’ and inserting ‘‘(c), (d), and (e)

14 of section 110, section 112(c), and section

15 113(a), of the Export Act of 1994’’; and

16 (B) by striking ‘‘11(c)’’ and inserting

17 ‘‘110(c)’’.

18 (3) Section 40(k) of the Arms Export Control

19 Act (22 U.S.C. 2780(k)) is amended—

20 (A) by striking ‘‘11(c), 11(e), 11(g), and

21 12(a) of the Export Administration Act of

22 1979’’ and inserting ‘‘110(b), 110(c), 110(e),

23 and 113(a) of the Export Act of 1994’’; and

24 (B) by striking ‘‘11(c)’’ and inserting

25 ‘‘110(c)’’.
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1 (4) Sections 72 and 73 of the Arms Export

2 Control Act (22 U.S.C. 2797a and 2797b) are here3 by repealed.

4 (5) Section 73A of the Arms Export Control

5 Act, as added by the Foreign Relations Authoriza6 tion Act, Fiscal Years 1994 and 1995, is amended

7 by striking ‘‘a MTCR adherent’’ and inserting ‘‘an

8 MTCR adherent’’.

9 (6) Section 74 of the Arms Export Control Act

10 (22 U.S.C. 2797c) is amended—

11 (A) by striking paragraphs (6), (7), (8),

12 and (9);

13 (B) in paragraph (4) by adding ‘‘and’’

14 after the semicolon; and

15 (C) in paragraph (5) by striking the semi16 colon and inserting a period.

17 (b) CHEMICAL AND BIOLOGICAL WEAPONS.—The

18 Chemical and Biological Weapons Control and Warfare

19 Elimination Act of 1991 (title III of Public Law 102–182;

20 22 U.S.C. 5601 and following) is hereby repealed.

21 (c) OTHER PROVISIONS OF LAW.—

22 (1) Section 5(b)(4) of the Trading with the

23 Enemy Act (12 U.S.C. 95a(4); 50 U.S.C. App.

24 5(b)(4)) is amended by striking ‘‘5 of the Export

25 Administration Act of 1979, or under section 6’’ and
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1 inserting ‘‘105 of the Export Act of 1994, or under

2 section 106’’.

3 (2) Section 16(a) of the Trading with the

4 Enemy Act (50 U.S.C. App. 16(a)) is amended by

5 striking ‘‘participants’’ and inserting ‘‘participates’’.

6 (3) Section 502B(a)(2) of the Foreign Assist7 ance Act of 1961 (22 U.S.C. 2304(a)(2)) is amend8 ed in the second sentence—

9 (A) by striking ‘‘Export Administration

10 Act of 1979’’ the first place it appears and in11 serting ‘‘Export Act of 1994’’; and

12 (B) by striking ‘‘Administration Act of

13 1979)’’ and inserting ‘‘Act of 1994)’’.

14 (4)(A) Section 140(a)(2) of the Foreign Rela15 tions Authorization Act, Fiscal Years 1988 and

16 1989 (22 U.S.C. 2656f(a)(2)) is amended by strik17 ing ‘‘6(j) of the Export Administration Act of 1979’’

18 and inserting ‘‘106(i) of the Export Act of 1994’’.

19 (B) For purposes of the report required by

20 March 31, 1995, under section 140(a) of the For21 eign Relations Authorization Act, Fiscal Years 1988

22 and 1989, the reference in paragraph (2) of such

23 section to ‘‘section 106(i) of the Export Act of

24 1994’’ shall be deemed to refer to ‘‘section 6(j) of
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1 the Export Administration Act of 1979 or section

2 106(i) of the Export Act of 1994’’.

3 (5) Section 40(e)(1) of the State Department

4 Basic Authorities Act of 1956 (22 U.S.C.

5 2712(e)(1)) is amended by striking ‘‘6(j)(1) of the

6 Export Administration Act of 1979’’ and inserting

7 ‘‘106(i)(1) of the Export Act of 1994’’.

8 (6) Section 110 of the International Security

9 and Development Cooperation Act of 1980 (22

10 U.S.C. 2778a) is amended by striking ‘‘Administra11 tion Act of 1979’’ and inserting ‘‘Act of 1994’’.

12 (7) Section 205(d)(4) of the State Department

13 Basic Authorities Act of 1956 (22 U.S.C.

14 4305(d)(4)) is amended by striking ‘‘6(j) of the Ex15 port Administration Act of 1979’’ and inserting

16 ‘‘106(i) of the Export Act of 1994’’.

17 (8) Section 203(b)(3) of the International

18 Emergency Economic Powers Act (50 U.S.C.

19 1702(b)(3)) is amended by striking ‘‘5 of the Export

20 Administration Act of 1979, or under section 6’’ and

21 inserting ‘‘105 of the Export Act of 1994, or under

22 section 106’’.

23 (9) Section 491(f) of the Forest Resources Con24 servation and Shortage Relief Act of 1990 (16

25 U.S.C. 620c(f)) is amended by striking ‘‘supersede
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1 section 7(i) of the Export Administration Act of

2 1979 (50 U.S.C. App. 2406(i))’’ and inserting ‘‘af3 fect section 107(i) of the Export Act of 1994’’.

4 SEC. 121. EFFECTIVE DATE.

5 This title shall take effect upon the date of the enact6 ment of this Act.

7 SEC. 122. EXPIRATION DATE.

8 This title expires on June 30, 1998.

9 SEC. 123. SAVINGS PROVISIONS.

10 (a) IN GENERAL.—All delegations, rules, regulations,

11 orders, determinations, licenses, or other forms of admin12 istrative action which have been made, issued, conducted,

13 or allowed to become effective under—

14 (1) the Export Control Act of 1949, the Export

15 Administration Act of 1969, or the Export Adminis16 tration Act of 1979, or

17 (2) those provisions of the Arms Export Control

18 Act or the Chemical and Biological Weapons Control

19 and Warfare Elimination Act of 1991 which are re20 pealed and amended by section 119,

21 and are in effect at the time this title takes effect, shall

22 continue in effect according to their terms until modified,

23 superseded, set aside, or revoked under this title.

24 (b) ADMINISTRATIVE AND JUDICIAL PROCEED25 INGS.—
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1 (1) EXPORT ADMINISTRATION ACT.—This title

2 shall not affect any administrative or judicial pro3 ceedings commenced or any application for a license

4 made, under the Export Administration Act of 1979,

5 which is pending at the time this title takes effect.

6 Any such proceedings, and any action on such appli7 cation, shall continue under the Export Administra8 tion Act of 1979 as if that Act had not expired.

9 (2) OTHER PROVISIONS OF LAW.—This title

10 shall not affect any administrative or judicial pro11 ceedings commenced or any application for a license

12 made, under those provisions of the Arms Export

13 Control Act or the Chemical and Biological Weapons

14 Control and Warfare Elimination Act of 1991 which

15 are repealed and amended by section 119, if such

16 proceedings or application is pending at the time

17 this title takes effect. Any such proceedings, and any

18 action on such application, shall continue under

19 those provisions as if those provisions had not been

20 amended or repealed by section 119.

21 (c) TREATMENT OF CERTAIN DETERMINATIONS.—

22 Any determination with respect to the government of a

23 foreign country under section 6(j) of the Export Adminis24 tration Act of 1979, that is in effect at the time this title

25 takes effect, shall, for purposes of this title or any other
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1 provision of law, be deemed to be made under section

2 106(i) of this Act until superseded by a determination

3 under such section 106(i).

4 TITLE II—NUCLEAR PROLIF5 ERATION PREVENTION ACT

6 SEC. 201. SHORT TITLE.

7 This title may be cited as the ‘‘Nuclear Proliferation

8 Prevention Act of 1994’’.

9 PART A—REPORTING ON NUCLEAR EXPORTS

10 SEC. 211. REPORTS TO CONGRESS.

11 Section 601(a) of the Nuclear Non-Proliferation Act

12 of 1978 (22 U.S.C. 3281(a)) is amended—

13 (1) in paragraph (4), by striking ‘‘and’’ after

14 the semicolon;

15 (2) in paragraph (5), by striking the period and

16 inserting a semicolon; and

17 (3) by adding after paragraph (5) the following:

18 ‘‘(6) a description of the implementation of nu19 clear and nuclear-related dual-use export controls in

20 the preceding calendar year, including a summary by

21 type of commodity and destination of—

22 ‘‘(A) all transactions for which—

23 ‘‘(i) an export license was issued for

24 any good controlled under section 309(c)

25 of this Act;
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1 ‘‘(ii) an export license was issued

2 under section 109 b. of the 1954 Act;

3 ‘‘(iii) approvals were issued under the

4 Export Act of 1994, or section 109 b.(3)

5 of the 1954 Act, for the retransfer of any

6 item, technical data, component, or sub7 stance; or

8 ‘‘(iv) authorizations were made as re9 quired by section 57 b.(2) of the 1954 Act

10 to engage, directly or indirectly, in the pro11 duction of special nuclear material;

12 ‘‘(B) each instance in which—

13 ‘‘(i) a sanction has been imposed

14 under section 221(a), 224(h), or 226(a) of

15 the Nuclear Proliferation Prevention Act of

16 1994;

17 ‘‘(ii) sales or leases have been denied

18 under section 3(f) of the Arms Export

19 Control Act or transactions prohibited by

20 reason of acts relating to proliferation of

21 nuclear explosive devices as described in

22 section 40(d) of that Act;

23 ‘‘(iii) a sanction has not been imposed

24 by reason of section 221(c)(2) of the Nu25 clear Proliferation Prevention Act of 1994
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1 or the imposition of a sanction has been

2 delayed under section 226(d) of that Act;

3 or

4 ‘‘(iv) a waiver of a sanction has been

5 made under—

6 ‘‘(I) section 221(f), section 224,

7 or subsection (e) or (f)(2) of section

8 226, of the Nuclear Proliferation Pre9 vention Act of 1994,

10 ‘‘(II) section 620E(d) of the For11 eign Assistance Act of 1961,

12 ‘‘(III) section 40(g) of the Arms

13 Export Control Act with respect to

14 the last sentence of section 40(d) of

15 that Act, or

16 ‘‘(IV) section 614 of the Foreign

17 Assistance Act of 1961 with respect to

18 section 620E of that Act or section

19 3(f), or the last sentence of section

20 40(d), of the Arms Export Control

21 Act; and

22 ‘‘(7) the progress of those independent states of

23 the former Soviet Union that are non-nuclear-weap24 on states and of the Baltic states towards achieving
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1 the objective of applying full scope safeguards to all

2 their peaceful nuclear activities.

3 Portions of the information required by paragraphs (6)

4 and (7) may be submitted in classified form, as necessary.

5 Any such information that may not be published or dis6 closed under section 114(g)(1) of the Export Act of 1994

7 shall be submitted as confidential.’’.

8 SEC. 212. EFFECTIVE DATE.

9 The amendments made by this part shall take effect

10 on the date of the enactment of this Act.

11 PART B—SANCTIONS FOR NUCLEAR

12 PROLIFERATION

13 SEC. 221. IMPOSITION OF SANCTIONS ON PERSONS ENGAG14 ING IN EXPORT ACTIVITIES THAT CONTRIB15 UTE TO PROLIFERATION.

16 (a) DETERMINATION BY THE PRESIDENT.—

17 (1) IN GENERAL.—Except as provided in sub18 section (b)(2), the President shall impose the sanc19 tions described in subsection (c) if the President de20 termines in writing that, on or after the effective

21 date of this part, a foreign person or a United

22 States person has materially and with requisite

23 knowledge contributed, through the export from the

24 United States or any other country of any goods or

25 technology (as defined in section 231(2)), to the ef-
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1 forts by any individual, group, or non-nuclear-weap2 on state to acquire unsafeguarded special nuclear

3 material or to use, develop, produce, stockpile, or

4 otherwise acquire any nuclear explosive device.

5 (2) PERSONS AGAINST WHICH THE SANCTIONS

6 ARE TO BE IMPOSED.—The sanctions shall be im7 posed pursuant to paragraph (1) on—

8 (A) the foreign person or United States

9 person with respect to which the President

10 makes the determination described in that para11 graph;

12 (B) any successor entity to that foreign

13 person or United States person;

14 (C) any foreign person or United States

15 person that is a parent or subsidiary of that

16 person if that parent or subsidiary materially

17 and with requisite knowledge assisted in the ac18 tivities which were the basis of that determina19 tion; and

20 (D) any foreign person or United States

21 person that is an affiliate of that person if that

22 affiliate materially and with requisite knowledge

23 assisted in the activities which were the basis of

24 that determination and if that affiliate is con25 trolled in fact by that person.
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1 (3) OTHER SANCTIONS AVAILABLE.—The sanc2 tions which are required to be imposed for activities

3 described in this subsection is in addition to any

4 other sanction which may be imposed for the same

5 activities under any other provision of law.

6 (4) DEFINITION.—For purposes of this sub7 section, the term ‘‘requisite knowledge’’ means situa8 tions in which a person ‘‘knows’’, as ‘‘knowing’’ is

9 defined in section 104 of the Foreign Corrupt Prac10 tices Act of 1977 (15 U.S.C. 78dd–2).

11 (b) CONSULTATION WITH AND ACTIONS BY FOREIGN

12 GOVERNMENT OF JURISDICTION.—

13 (1) CONSULTATIONS.—If the President makes a

14 determination described in subsection (a)(1) with re15 spect to a foreign person, the Congress urges the

16 President to initiate consultations immediately with

17 the government with primary jurisdiction over that

18 foreign person with respect to the imposition of the

19 sanctions pursuant to this section.

20 (2) ACTIONS BY GOVERNMENT OF JURISDIC21 TION.—In order to pursue such consultations with

22 that government, the President may delay imposition

23 of the sanctions pursuant to this section for up to

24 90 days. Following these consultations, the Presi25 dent shall impose the sanctions unless the President
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1 determines and certifies in writing to the Congress

2 that that government has taken specific and effective

3 actions, including appropriate penalties, to terminate

4 the involvement of the foreign person in the activi5 ties described in subsection (a)(1). The President

6 may delay the imposition of the sanctions for up to

7 an additional 90 days if the President determines

8 and certifies in writing to the Congress that that

9 government is in the process of taking the actions

10 described in the preceding sentence.

11 (3) REPORT TO CONGRESS.—Not later than 90

12 days after making a determination under subsection

13 (a)(1), the President shall submit to the Committee

14 on Foreign Relations and the Committee on Govern15 mental Affairs of the Senate and the Committee on

16 Foreign Affairs of the House of Representatives a

17 report on the status of consultations with the appro18 priate government under this subsection, and the

19 basis for any determination under paragraph (2) of

20 this subsection that such government has taken spe21 cific corrective actions.

22 (c) SANCTIONS.—

23 (1) DESCRIPTION OF SANCTIONS.—The sanc24 tions to be imposed pursuant to subsection (a)(1)
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1 are, except as provided in paragraph (2) of this sub2 section, the following:

3 (A) The United States Government shall

4 not procure, or enter into any contract for the

5 procurement of, any goods or services from any

6 person described in subsection (a)(2).

7 (B) The importation into the United

8 States of products produced by any person de9 scribed in subsection (a)(2) shall be prohibited.

10 (2) EXCEPTIONS.—The President shall not be

11 required to apply or maintain the sanctions under

12 this section—

13 (A) in the case of procurement of defense

14 articles or defense services—

15 (i) under existing contracts or sub16 contracts, including the exercise of options

17 for production quantities to satisfy require18 ments essential to the national security of

19 the United States;

20 (ii) if the President determines in

21 writing that the person or other entity to

22 which the sanctions would otherwise be ap23 plied is a sole source supplier of the de24 fense articles or services, that the defense

25 articles or services are essential, and that
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1 alternative sources are not readily or rea2 sonably available; or

3 (iii) if the President determines in

4 writing that such articles or services are

5 essential to the national security under de6 fense coproduction agreements;

7 (B) to products or services provided under

8 contracts entered into before the date on which

9 the President publishes his intention to impose

10 the sanctions;

11 (C) to—

12 (i) spare parts which are essential to

13 United States products or production;

14 (ii) component parts, but not finished

15 products, essential to United States prod16 ucts or production; or

17 (iii) routine servicing and mainte18 nance of products, to the extent that alter19 native sources are not readily or reason20 ably available;

21 (D) to information and technology essen22 tial to United States products or production; or

23 (E) to medical or other humanitarian

24 items.
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1 (d) ADVISORY OPINIONS.—Upon the request of any

2 person, the Secretary of State may, in consultation with

3 the Secretary of Defense, issue in writing an advisory

4 opinion to that person as to whether a proposed activity

5 by that person would subject that person to the sanctions

6 under this section. Any person who relies in good faith

7 on such an advisory opinion which states that the pro8 posed activity would not subject a person to such sanc9 tions, and any person who thereafter engages in such ac10 tivity, may not be made subject to such sanctions on ac11 count of such activity.

12 (e) TERMINATION OF THE SANCTIONS.—The sanc13 tions imposed pursuant to this section shall apply for a

14 period of at least 12 months following the imposition of

15 the sanctions and shall cease to apply thereafter only if

16 the President determines and certifies in writing to the

17 Congress that—

18 (1) reliable information indicates that the for19 eign person or United States person with respect to

20 which the determination was made under subsection

21 (a)(1) has ceased to aid or abet any individual,

22 group, or non-nuclear-weapon state in its efforts to

23 acquire unsafeguarded special nuclear material or

24 any nuclear explosive device, as described in that

25 subsection; and
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1 (2) the President has received reliable assur2 ances from the foreign person or United States per3 son, as the case may be, that such person will not,

4 in the future, aid or abet any individual, group, or

5 non-nuclear-weapon state in its efforts to acquire

6 unsafeguarded special nuclear material or any nu7 clear explosive device, as described in subsection

8 (a)(1).

9 (f) WAIVER.—

10 (1) CRITERION FOR WAIVER.—The President

11 may waive the application of the sanctions imposed

12 on any person pursuant to this section, after the end

13 of the 12-month period beginning on the date on

14 which the sanctions were imposed on that person, if

15 the President determines and certifies in writing to

16 the Congress that the continued imposition of the

17 sanctions would have a serious adverse effect on

18 vital United States interests.

19 (2) NOTIFICATION OF AND REPORT TO CON20 GRESS.—If the President decides to exercise the

21 waiver authority provided in paragraph (1), the

22 President shall so notify the Congress not less than

23 20 days before the waiver takes effect. Such notifica24 tion shall include a report fully articulating the ra-
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1 tionale and circumstances which led the President to

2 exercise the waiver authority.

3 SEC. 222. ELIGIBILITY FOR ASSISTANCE.

4 (a) AMENDMENTS TO THE ARMS EXPORT CONTROL

5 ACT.—

6 (1) PROHIBITION.—Section 3 of the Arms Ex7 port Control Act (22 U.S.C. 2753) is amended by

8 adding at the end the following new subsection:

9 ‘‘(f) No sales or leases shall be made to any country

10 that the President has determined is in material breach

11 of its binding commitments to the United States under

12 international treaties or agreements concerning the non13 proliferation of nuclear explosive devices (as defined in

14 section 231(4) of the Nuclear Proliferation Prevention Act

15 of 1994) and unsafeguarded special nuclear material (as

16 defined in section 231(8) of that Act).’’.

17 (2) DEFINITION OF SUPPORT FOR INTER18 NATIONAL TERRORISM.—Section 40 of such Act (22

19 U.S.C. 2780) is amended—

20 (A) in subsection (d), by adding at the end

21 the following new sentence: ‘‘For purposes of

22 this subsection, such acts shall include all ac23 tivities that the Secretary determines willfully

24 aid or abet the international proliferation of nu25 clear explosive devices to individuals or groups
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1 or willfully aid or abet an individual or group

2 in acquiring unsafeguarded special nuclear ma3 terial.’’; and

4 (B) in subsection (l)—

5 (i) in paragraph (2), by striking

6 ‘‘and’’ after the semicolon;

7 (ii) in paragraph (3), by striking the

8 period at the end and inserting a semi9 colon; and

10 (iii) by adding at the end the follow11 ing:

12 ‘‘(4) the term ‘nuclear explosive device’ has the

13 meaning given that term in section 231(4) of the

14 Nuclear Proliferation Prevention Act of 1994; and

15 ‘‘(5) the term ‘unsafeguarded special nuclear

16 material’ has the meaning given that term in section

17 231(8) of the Nuclear Proliferation Prevention Act

18 of 1994.’’.

19 (b) FOREIGN ASSISTANCE ACT OF 1961.—

20 (1) PRESIDENTIAL DETERMINATION 82–7.—

21 Notwithstanding any other provision of law, Presi22 dential Determination No. 82–7 of February 10,

23 1982, made pursuant to section 670(a)(2) of the

24 Foreign Assistance Act of 1961, shall have no force

25 or effect with respect to any grounds for the prohibi-
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1 tion of assistance under section 102(a) of the Arms

2 Export Control Act arising on or after the effective

3 date of this part.

4 (2) AMENDMENT.—Section 620E(d) of the For5 eign Assistance Act of 1961 (22 U.S.C. 2375(d)) is

6 amended to read as follows:

7 ‘‘(d) The President may waive the prohibitions of sec8 tion 101 of the Arms Export Control Act with respect to

9 any grounds for the prohibition of assistance under that

10 section arising before the effective date of part B of the

11 Nuclear Proliferation Prevention Act of 1994 to provide

12 assistance to Pakistan if he determines that to do so is

13 in the national interest of the United States.’’.

14 SEC. 223. ROLE OF INTERNATIONAL FINANCIAL INSTITU15 TIONS.

16 (a) IN GENERAL.—The Secretary of the Treasury

17 shall instruct the United States executive director to each

18 of the international financial institutions described in sec19 tion 701(a) of the International Financial Institutions Act

20 (22 U.S.C. 262d(a)) to use the voice and vote of the

21 United States to oppose any use of the institution’s funds

22 to promote the acquisition of unsafeguarded special nu23 clear material or the development, stockpiling, or use of

24 any nuclear explosive device by any non-nuclear-weapon

25 state.
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1 (b) DUTIES OF UNITED STATES EXECUTIVE DIREC2 TORS.—Section 701(b)(3) of the International Financial

3 Institutions Act (22 U.S.C. 262d(b)(3)) is amended to

4 read as follows:

5 ‘‘(3) whether the recipient country—

6 ‘‘(A) is seeking to acquire unsafeguarded

7 special nuclear material (as defined in section

8 231(8) of the Nuclear Proliferation Prevention

9 Act of 1994) or a nuclear explosive device (as

10 defined in section 231(4) of that Act);

11 ‘‘(B) is not a State Party to the Treaty on

12 the Non-Proliferation of Nuclear Weapons; or

13 ‘‘(C) has detonated a nuclear explosive de14 vice; and’’.

15 SEC. 224. PROHIBITION ON ASSISTING NUCLEAR PRO16 LIFERATION THROUGH THE PROVISION OF

17 FINANCING.

18 (a) PROHIBITED ACTIVITY DEFINED.—For purposes

19 of this section, the term ‘‘prohibited activity’’ means the

20 act of knowingly, materially, and directly contributing or

21 attempting to contribute, through the provision of financ22 ing, to—

23 (1) the acquisition of unsafeguarded special nu24 clear material; or
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1 (2) the use, development, production, stock2 piling, or other acquisition of any nuclear explosive

3 device,

4 by any individual, group, or non-nuclear-weapon state.

5 (b) PROHIBITION.—To the extent that the United

6 States has jurisdiction to prohibit such activity by such

7 person, no United States person and no foreign person

8 may engage in any prohibited activity.

9 (c) PRESIDENTIAL DETERMINATION AND ORDER

10 WITH RESPECT TO UNITED STATES AND FOREIGN PER11 SONS.—If the President determines, in writing after op12 portunity for a hearing on the record, that a United States

13 person or a foreign person has engaged in a prohibited

14 activity (without regard to whether subsection (b) applies),

15 the President shall, by order, impose the sanctions de16 scribed in subsection (d) on such person.

17 (d) SANCTIONS.—The following sanctions shall be

18 imposed pursuant to any order issued under subsection

19 (c) with respect to any United States person or any for20 eign person:

21 (1) BAN ON DEALINGS IN GOVERNMENT FI22 NANCE.—

23 (A) DESIGNATION AS PRIMARY DEALER.—

24 Neither the Board of Governors of the Federal

25 Reserve System nor the Federal Reserve Bank
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1 of New York may designate, or permit the con2 tinuation of any prior designation of, the person

3 as a primary dealer in United States Govern4 ment debt instruments.

5 (B) SERVICE AS DEPOSITARY.—The person

6 may not serve as a depositary for United States

7 Government funds.

8 (2) RESTRICTIONS ON OPERATIONS.—The per9 son may not, directly or indirectly—

10 (A) commence any line of business in the

11 United States in which the person was not en12 gaged as of the date of the order; or

13 (B) conduct business from any location in

14 the United States at which the person did not

15 conduct business as of the date of the order.

16 (e) JUDICIAL REVIEW.—Any determination of the

17 President under subsection (c) shall be subject to judicial

18 review in accordance with chapter 7 of part I of title 5,

19 United States Code.

20 (f) CONSULTATION WITH AND ACTIONS BY FOREIGN

21 GOVERNMENT OF JURISDICTION.—

22 (1) CONSULTATIONS.—If the President makes a

23 determination under subsection (c) with respect to a

24 foreign person, the Congress urges the President to

25 initiate consultations immediately with any appro-
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1 priate foreign government with respect to the impo2 sition of any sanction pursuant to this section.

3 (2) ACTIONS BY GOVERNMENT OF JURISDIC4 TION.—

5 (A) SUSPENSION OF IMPOSITION OF SANC6 TIONS.—In order to pursue consultations de7 scribed in paragraph (1) with any government

8 referred to in such paragraph, the President

9 may delay, for up to 90 days, the effective date

10 of an order under subsection (c) imposing any

11 sanction.

12 (B) COORDINATION WITH ACTIVITIES OF

13 FOREIGN GOVERNMENT.—Following consulta14 tions described in paragraph (1), the order is15 sued by the President under subsection (c) im16 posing any sanction on a foreign person shall

17 take effect unless the President determines, and

18 certifies in writing to the Congress, that the

19 government referred to in paragraph (1) has

20 taken specific and effective actions, including

21 the imposition of appropriate penalties, to ter22 minate the involvement of the foreign person in

23 any prohibited activity.

24 (C) EXTENSION OF PERIOD.—After the

25 end of the period described in subparagraph
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1 (A), the President may delay, for up to an addi2 tional 90 days, the effective date of an order is3 sued under subsection (c) imposing any sanc4 tion on a foreign person if the President deter5 mines, and certifies in writing to the Congress,

6 that the appropriate foreign government is in

7 the process of taking actions described in sub8 paragraph (B).

9 (3) REPORT TO CONGRESS.—Before the end of

10 the 90-day period beginning on the date on which an

11 order is issued under subsection (c), the President

12 shall submit to the Congress a report on—

13 (A) the status of consultations under this

14 subsection with the government referred to in

15 paragraph (1); and

16 (B) the basis for any determination under

17 paragraph (2) that such government has taken

18 specific corrective actions.

19 (g) TERMINATION OF THE SANCTIONS.—Any sanc20 tion imposed on any person pursuant to an order issued

21 under subsection (c) shall—

22 (1) remain in effect for a period of not less

23 than 12 months; and
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1 (2) cease to apply after the end of such 12-

2 month period only if the President determines, and

3 certifies in writing to the Congress, that—

4 (A) the person has ceased to engage in any

5 prohibited activity; and

6 (B) the President has received reliable as7 surances from such person that the person will

8 not, in the future, engage in any prohibited ac9 tivity.

10 (h) WAIVER.—The President may waive the contin11 ued application of any sanction imposed on any person

12 pursuant to an order issued under subsection (c) if the

13 President determines, and certifies in writing to the Con14 gress, that the continued imposition of the sanction would

15 have a serious adverse effect on the safety and soundness

16 of the domestic or international financial system or on do17 mestic or international payments systems.

18 (i) ENFORCEMENT ACTION.—The Attorney General

19 may bring an action in an appropriate district court of

20 the United States for injunctive and other appropriate re21 lief with respect to—

22 (1) any violation of subsection (b); or

23 (2) any order issued under subsection (c).

24 (j) KNOWINGLY DEFINED.—
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1 (1) IN GENERAL.—For purposes of this section,

2 the term ‘‘knowingly’’ means the state of mind of a

3 person with respect to conduct, a circumstance, or a

4 result in which—

5 (A) such person is aware that such person

6 is engaging in such conduct, that such cir7 cumstance exists, or that such result is substan8 tially certain to occur; or

9 (B) such person has a firm belief that such

10 circumstance exists or that such result is sub11 stantially certain to occur.

12 (2) KNOWLEDGE OF THE EXISTENCE OF A PAR13 TICULAR CIRCUMSTANCE.—If knowledge of the exist14 ence of a particular circumstance is required for an

15 offense, such knowledge is established if a person is

16 aware of a high probability of the existence of such

17 circumstance, unless the person actually believes

18 that such circumstance does not exist.

19 (k) SCOPE OF APPLICATION.—This section shall

20 apply with respect to prohibited activities which occur on

21 or after the date this part takes effect.

22 SEC. 225. EXPORT-IMPORT BANK.

23 Section 2(b)(4) of the Export-Import Bank Act of

24 1945 (12 U.S.C. 635(b)(4)) is amended in the first sen25 tence by inserting after ‘‘device’’ the following: ‘‘(as de-
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1 fined in section 231(4) of the Nuclear Proliferation Pre2 vention Act of 1994), or that any country has willfully

3 aided or abetted any non-nuclear-weapon state (as defined

4 in section 231(5) of that Act) to acquire any such nuclear

5 explosive device or to acquire unsafeguarded special nu6 clear material (as defined in section 231(8) of that Act)’’.

7 SEC. 226. SANCTIONS AGAINST COUNTRIES INVOLVED IN

8 TRANSFER OF NUCLEAR WEAPONS OR DE9 SIGN INFORMATION OR COMPONENTS.

10 (a) DETERMINATION OF THE PRESIDENT.—Except

11 as provided in subsections (d), (e), and (f), in the event

12 that the President determines that any country, on or

13 after the effective date of this part—

14 (1) transfers to a non-nuclear-weapon state a

15 nuclear explosive device,

16 (2) is a non-nuclear-weapon state and either—

17 (A) receives a nuclear explosive device, or

18 (B) detonates a nuclear explosive device,

19 (3) transfers to a non-nuclear-weapon state any

20 design information or component which is deter21 mined by the President to be important to, and

22 known by the transferring country to be intended by

23 the recipient state for use in, the development or

24 manufacture of any nuclear explosive device, or
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1 (4) is a non-nuclear-weapon state and seeks and

2 receives any design information or component which

3 is determined by the President to be important to,

4 and intended by the recipient state for use in, the

5 development or manufacture of any nuclear explosive

6 device,

7 then the President shall forthwith report to the Congress

8 in writing his determination with respect to that country

9 and shall forthwith impose the sanctions described in sub10 section (b) against that country.

11 (b) SANCTIONS.—The sanctions referred to in sub12 section (a) are as follows:

13 (1) The United States Government shall termi14 nate assistance to that country under the Foreign

15 Assistance Act of 1961, except for humanitarian as16 sistance or food or other agricultural commodities.

17 (2) The United States Government shall—

18 (A) terminate sales to that country under

19 the Arms Export Control Act of any defense ar20 ticles, defense services, or design and construc21 tion services, and

22 (B) terminate and deny licenses for the ex23 port to that country of any item on the United

24 States Munitions List.
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1 (3) The United States Government shall termi2 nate all foreign military financing for that country

3 under the Arms Export Control Act.

4 (4) The United States Government shall deny

5 to that country any credit, credit guarantees, or

6 other financial assistance by any department, agen7 cy, or instrumentality of the United States Govern8 ment, except that the sanction of this paragraph

9 shall not apply—

10 (A) to any transaction subject to the re11 porting requirements of title V of the National

12 Security Act of 1947 (relating to congressional

13 oversight of intelligence activities), or

14 (B) to humanitarian assistance.

15 (5) The United States Government shall op16 pose, in accordance with section 701 of the Inter17 national Financial Institutions Act (22 U.S.C.

18 262d), the extension of any loan or financial or tech19 nical assistance to that country by any international

20 financial institution.

21 (6) The United States Government shall pro22 hibit any United States bank from making any loan

23 or providing any credit to the government of that

24 country, except for loans or credits for the purpose
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1 of purchasing food or other agricultural commod2 ities.

3 (7) The authorities of section 106 of this Act

4 shall be used to prohibit exports to that country of

5 specific goods and technology (excluding food and

6 other agricultural commodities), except that such

7 prohibition shall not apply to any transaction subject

8 to the reporting requirements of title V of the Na9 tional Security Act of 1947 (relating to congres10 sional oversight of intelligence activities).

11 (8) In addition to the sanctions provided for in

12 paragraphs (1) through (7), the President may pro13 hibit the importation into the United States of goods

14 that are the growth, product, or manufacture of that

15 country. The President shall determine the type and

16 volume of imports to be prohibited.

17 (c) DEFINITIONS.—As used in this section—

18 (1) the term ‘‘design information’’ means spe19 cific information that relates to the design of a nu20 clear explosive device and that is not available to the

21 public; and

22 (2) the term ‘‘component’’ means a specific

23 component of a nuclear explosive device.

24 (d) AUTHORITY TO DELAY SANCTIONS RELATING TO

25 NUCLEAR EXPLOSIVE DEVICES.—
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1 (1) PRESIDENTIAL CERTIFICATION.—Notwith2 standing subsection (a), the President may, for a pe3 riod of not more than 30 days of continuous session,

4 delay the imposition of sanctions which would other5 wise be required under subsection (a)(1) or (2) if the

6 President first transmits to the Speaker of the

7 House of Representatives, and to the chairman of

8 the Committee on Foreign Relations of the Senate,

9 a certification that he has determined that an imme10 diate imposition of sanctions on that country would

11 be detrimental to the national security of the United

12 States. Not more than one such certification may be

13 transmitted for a country with respect to the same

14 detonation, transfer, or receipt of a nuclear explosive

15 device.

16 (2) AUTHORITY TO GRANT WAIVER.—(A) If the

17 President transmits a certification to the Congress

18 under paragraph (1), a joint resolution which would

19 permit the President to exercise the waiver authority

20 of subsection (e) shall, if introduced in either House

21 within 30 days of continuous session after the Con22 gress receives this certification, be considered in the

23 Senate in accordance with subparagraph (B).

24 (B) Any joint resolution under this paragraph

25 shall be considered in the Senate in accordance with
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1 the provisions of section 601(b) of the International

2 Security Assistance and Arms Export Control Act of

3 1976.

4 (C) For purposes of this paragraph, the term

5 ‘‘joint resolution’’ means a joint resolution the mat6 ter after the resolving clause of which is as follows:

7 ‘‘That the Congress having received on ll a cer8 tification by the President under section 226(d)(1)

9 of the Nuclear Proliferation Prevention Act of 1994

10 with respect to ll, the Congress hereby authorizes

11 the President to exercise the waiver authority con12 tained in section 226(e) of that Act.’’, with the date

13 of receipt of the certification inserted in the first

14 blank and the name of the country inserted in the

15 second blank.

16 (e) WAIVER AUTHORITY.—Notwithstanding sub17 section (a), if the Congress enacts a joint resolution under

18 subsection (d), the President may waive any sanction

19 which would otherwise be required under subsection (a)(1)

20 or (2) if he determines and certifies in writing to the

21 Speaker of the House of Representatives and the Commit22 tee on Foreign Relations of the Senate that the imposition

23 of such sanction would be seriously prejudicial to the

24 achievement of United States nonproliferation objectives

25 or otherwise jeopardize the common defense and security.
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1 The President shall transmit with such certification a

2 statement setting forth the specific reasons therefor.

3 (f) SANCTIONS RELATING TO INFORMATION AND

4 COMPONENTS.—

5 (1) IMPOSITION.—In the event the President is

6 required to impose sanctions against a country

7 under subsection (a) (3) or (a)(4), the President

8 shall forthwith so inform such country and shall im9 pose the required sanctions beginning 30 days after

10 submitting to the Congress the report required by

11 subsection (a) unless, and to the extent that, there

12 is enacted during the 30-day period a law prohibit13 ing the imposition of such sanctions.

14 (2) WAIVER.—Notwithstanding any other provi15 sion of law, the sanctions which are required to be

16 imposed against a country under subsection (a)(3)

17 or (4) shall not apply if the President determines

18 and certifies in writing to the Committee on Foreign

19 Relations and the Committee on Governmental Af20 fairs of the Senate and the Committee on Foreign

21 Affairs of the House of Representatives that the ap22 plication of such sanctions against such country

23 would have a serious adverse effect on vital United

24 States interests. The President shall transmit with
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1 such certification a statement setting forth the spe2 cific reasons therefor.

3 (g) CONTINUITY OF SESSION.—For purposes of this

4 section, continuity of session is broken only by an adjourn5 ment of the Congress sine die and the days on which either

6 House of Congress is not in session because of an adjourn7 ment of more than three days to a day certain are ex8 cluded in the computation of any period of time in which

9 the Congress is in continuous session.

10 (h) AUTHORITY OF THE PRESIDENT NOT DELE11 GABLE.—The President may not delegate or transfer his

12 power, authority, or discretion to make or modify deter13 minations under this section.

14 SEC. 227. AMENDMENT TO THE ARMS EXPORT CONTROL

15 ACT.

16 (a) IN GENERAL.—The Arms Export Control Act is

17 amended by adding at the end the following new chapter:

18 ‘‘CHAPTER 10—NUCLEAR

19 NONPROLIFERATION CONTROLS

20 ‘‘SEC. 101. NUCLEAR ENRICHMENT TRANSFERS.

21 ‘‘(a) PROHIBITIONS; SAFEGUARDS AND MANAGE22 MENT.—Except as provided in subsection (b), no funds

23 made available to carry out the Foreign Assistance Act

24 of 1961 or this Act may be used for the purpose of provid25 ing economic assistance (including assistance under chap-
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1 ter 4 of part II of the Foreign Assistance Act of 1961),

2 providing military assistance or grant military education

3 and training, providing assistance under chapter 6 of part

4 II of that Act, or extending military credits or making

5 guarantees, to any country which the President deter6 mines delivers nuclear enrichment equipment, materials,

7 or technology to any other country on or after August 4,

8 1977, or receives such equipment, materials, or technology

9 from any other country on or after August 4, 1977, unless

10 before such delivery—

11 ‘‘(1) the supplying country and receiving coun12 try have reached agreement to place all such equip13 ment, materials, or technology, upon delivery, under

14 multilateral auspices and management when avail15 able; and

16 ‘‘(2) the recipient country has entered into an

17 agreement with the International Atomic Energy

18 Agency to place all such equipment, materials, tech19 nology, and all nuclear fuel and facilities in such

20 country, under the safeguards system of such

21 Agency.

22 ‘‘(b) CERTIFICATION BY PRESIDENT OF NECESSITY

23 OF CONTINUED ASSISTANCE; DISAPPROVAL BY CON24 GRESS.—(1) Notwithstanding subsection (a), the Presi25 dent may furnish assistance which would otherwise be pro-
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1 hibited under such subsection if he determines and cer2 tifies in writing to the Speaker of the House of Represent3 atives and the Committee on Foreign Relations of the Sen4 ate that—

5 ‘‘(A) the termination of such assistance would

6 have a serious adverse effect on vital United States

7 interests; and

8 ‘‘(B) he has received reliable assurances that

9 the country in question will not acquire or develop

10 nuclear weapons or assist other nations in doing so.

11 Such certification shall set forth the reasons supporting

12 such determination in each particular case.

13 ‘‘(2)(A) A certification under paragraph (1) shall

14 take effect on the date on which the certification is re15 ceived by the Congress. However, if, within 30 calendar

16 days after receiving this certification, the Congress enacts

17 a joint resolution stating in substance that the Congress

18 disapproves the furnishing of assistance pursuant to the

19 certification, then upon the enactment of that resolution

20 the certification shall cease to be effective and all deliveries

21 of assistance furnished under the authority of that certifi22 cation shall be suspended immediately.

23 ‘‘(B) Any joint resolution under this paragraph shall

24 be considered in the Senate in accordance with the provi-
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1 sions of section 601(b) of the International Security As2 sistance and Arms Export Control Act of 1976.

3 ‘‘SEC. 102. NUCLEAR REPROCESSING TRANSFERS AND ILLE4 GAL EXPORTS FOR NUCLEAR EXPLOSIVE DE5 VICES.

6 ‘‘(a) PROHIBITIONS ON ASSISTANCE TO COUNTRIES

7 INVOLVED IN TRANSFER OF NUCLEAR REPROCESSING

8 EQUIPMENT, MATERIALS, OR TECHNOLOGY.—Except as

9 provided in subsection (b), no funds made available to

10 carry out the Foreign Assistance Act of 1961 or this Act

11 may be used for the purpose of providing economic assist12 ance (including assistance under chapter 4 of part II of

13 the Foreign Assistance Act of 1961), providing military

14 assistance or grant military education and training, pro15 viding assistance under chapter 6 of part II of that Act,

16 or extending military credits or making guarantees, to any

17 country which the President determines—

18 ‘‘(1) delivers nuclear reprocessing equipment,

19 materials, or technology to any other country on or

20 after August 4, 1977, or receives such equipment,

21 materials, or technology from any other country on

22 or after August 4, 1977 (except for the transfer of

23 reprocessing technology associated with the inves24 tigation, under international evaluation programs in

25 which the United States participates, of technologies
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1 which are alternatives to pure plutonium reprocess2 ing), or

3 ‘‘(2) is a non-nuclear-weapon state which, on or

4 after August 8, 1985, exports illegally (or attempts

5 to export illegally) from the United States any mate6 rial, equipment, or technology which would contrib7 ute significantly to the ability of such country to

8 manufacture a nuclear explosive device, if the Presi9 dent determines that the material, equipment, or

10 technology was to be used by such country in the

11 manufacture of a nuclear explosive device.

12 For purposes of paragraph (2), an export (or attempted

13 export) by a person who is an agent of, or is otherwise

14 acting on behalf of or in the interests of, a country shall

15 be considered to be an export (or attempted export) by

16 that country.

17 ‘‘(b) EXCEPTION.—(1) Notwithstanding subsection

18 (a), the President in any fiscal year may furnish assist19 ance which would otherwise be prohibited under that sub20 section if he determines and certifies in writing during

21 that fiscal year to the Speaker of the House of Represent22 atives and the Committee on Foreign Relations of the Sen23 ate that the termination of such assistance would be seri24 ously prejudicial to the achievement of United States non25 proliferation objectives or would otherwise jeopardize the
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1 common defense and security. The President shall trans2 mit with such certification a statement setting forth the

3 specific reasons therefor.

4 ‘‘(2)(A) A certification under paragraph (1) shall

5 take effect on the date on which the certification is re6 ceived by the Congress. However, if, within 30 calendar

7 days after receiving this certification, the Congress enacts

8 a joint resolution stating in substance that the Congress

9 disapproves the furnishing of assistance pursuant to the

10 certification, then upon the enactment of that resolution

11 the certification shall cease to be effective and all deliveries

12 of assistance furnished under the authority of that certifi13 cation shall be suspended immediately.

14 ‘‘(B) Any joint resolution under this paragraph shall

15 be considered in the Senate in accordance with the provi16 sions of section 601(b) of the International Security As17 sistance and Arms Export Control Act of 1976.

18 ‘‘SEC. 103. DEFINITION OF NUCLEAR EXPLOSIVE DEVICE.

19 ‘‘As used in this chapter, the term ‘nuclear explosive

20 device’ has the meaning given that term in section 231(4)

21 of the Nuclear Proliferation Prevention Act of 1994.’’.

22 (b) REPEALS.—Sections 669 and 670 of the Foreign

23 Assistance Act of 1961 are hereby repealed.

24 (c) REFERENCES IN LAW.—Any reference in law as

25 of the effective date of this part to section 669 or 670
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1 of the Foreign Assistance Act of 1961 shall, on and after

2 such date, be deemed to be a reference to section 101 or

3 102 of the Arms Export Control Act, or section 226 of

4 this Act, as the case may be.

5 SEC. 228. REWARD.

6 Section 36(a) of the State Department Basic Au7 thorities Act of 1956 (22 U.S.C. 2708(a)) is amended—

8 (1) by redesignating paragraphs (1) through

9 (3) as subparagraphs (A) through (C), respectively;

10 (2) by inserting ‘‘(1)’’ after ‘‘(a)’’; and

11 (3) by adding at the end the following:

12 ‘‘(2) For purposes of this subsection, the term ‘act

13 of international terrorism’ includes any act substantially

14 contributing to the acquisition of unsafeguarded special

15 nuclear material (as defined in section 231(8) of the Nu16 clear Proliferation Prevention Act of 1994) or any nuclear

17 explosive device (as defined in section 231(4) of that Act)

18 by an individual, group, or non-nuclear-weapon state (as

19 defined in section 231(5) of that Act).’’.

20 SEC. 229. REPORTS.

21 (a) CONTENT OF ACDA ANNUAL REPORT.—Section

22 51 of the Arms Control and Disarmament Act, as amend23 ed by section 717 of the Foreign Relations Authorization

24 Act, Fiscal Years 1994 and 1995, is amended—

25 (1) in subsection (a)—
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1 (A) by striking ‘‘and’’ at the end of para2 graph (5);

3 (B) by striking the period at the end of

4 paragraph (6) and inserting ‘‘; and’’; and

5 (C) by adding after paragraph (6) the fol6 lowing new paragraph:

7 ‘‘(7) a discussion of any material noncompliance

8 by foreign governments with their binding commit9 ments to the United States with respect to the pre10 vention of the spread of nuclear explosive devices (as

11 defined in section 231(4) of the Nuclear Prolifera12 tion Prevention Act of 1994) by non-nuclear-weapon

13 states (as defined in section 231(5) of that Act) or

14 the acquisition by such states of unsafeguarded spe15 cial nuclear material (as defined in section 231(8) of

16 that Act), including—

17 ‘‘(A) a net assessment of the aggregate

18 military significance of all such violations;

19 ‘‘(B) a statement of the compliance policy

20 of the United States with respect to violations

21 of those commitments; and

22 ‘‘(C) what actions, if any, the President

23 has taken or proposes to take to bring any na24 tion committing such a violation into compli25 ance with those commitments.’’; and
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1 (2) by adding at the end the following new sub2 section:

3 ‘‘(c) REPORTING CONSECUTIVE NONCOMPLIANCE.—

4 If the President in consecutive reports submitted to the

5 Congress under this section reports that any designated

6 nation is not in full compliance with its binding non7 proliferation commitments to the United States, then the

8 President shall include in the second such report an as9 sessment of what actions are necessary to compensate for

10 such violations.’’.

11 (b) REPORTING ON DEMARCHES.—(1) It is the sense

12 of the Congress that the Department of State should, in

13 the course of implementing its reporting responsibilities

14 under section 602(c) of the Nuclear Non-Proliferation Act

15 of 1978, include a summary of demarches that the United

16 States has issued or received from foreign governments

17 with respect to activities which are of significance from

18 the proliferation standpoint.

19 (2) For purposes of this section, the term ‘‘de20 marche’’ means any official communication by one govern21 ment to another, by written or oral means, intended by

22 the originating government to express—

23 (A) a concern over a past, present, or possible

24 future action or activity of the recipient government,

25 or of a person within the jurisdiction of that govern-
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1 ment, contributing to the global spread of

2 unsafeguarded special nuclear material or of nuclear

3 explosive devices;

4 (B) a request for the recipient government to

5 counter such action or activity; or

6 (C) both the concern and request described in

7 subparagraphs (A) and (B).

8 SEC. 230. TECHNICAL CORRECTION.

9 Section 133 b. of the Atomic Energy Act of 1954 (42

10 U.S.C. 2160c) is amended by striking ‘‘20 kilograms’’ and

11 inserting ‘‘5 kilograms’’.

12 SEC. 231. DEFINITIONS.

13 For purposes of this part—

14 (1) the term ‘‘foreign person’’ means—

15 (A) an individual who is not a citizen of

16 the United States or an alien admitted for per17 manent residence to the United States; or

18 (B) a corporation, partnership, or other

19 nongovernment entity which is created or orga20 nized under the laws of a foreign country or

21 which has its principal place of business outside

22 the United States;

23 (2) the term ‘‘goods or technology’’ means—

24 (A) nuclear materials and equipment and

25 sensitive nuclear technology (as such terms are
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1 defined in section 4 of the Nuclear Non-Pro2 liferation Act of 1978), all export items des3 ignated by the President pursuant to section

4 309(c) of the Nuclear Non-Proliferation Act of

5 1978, and all technical assistance requiring au6 thorization under section 57 b. of the Atomic

7 Energy Act of 1954; and

8 (B) in the case of exports from a country

9 other than the United States, any goods or

10 technology that, if exported from the United

11 States, would be goods or technology described

12 in subparagraph (A);

13 (3) the term ‘‘IAEA safeguards’’ means the

14 safeguards set forth in an agreement between a

15 country and the International Atomic Energy Agen16 cy, as authorized by Article III(A)(5) of the Statute

17 of the International Atomic Energy Agency;

18 (4) the term ‘‘nuclear explosive device’’ means

19 any device, whether assembled or disassembled, that

20 is designed to produce an instantaneous release of

21 an amount of nuclear energy from special nuclear

22 material that is greater than the amount of energy

23 that would be released from the detonation of one

24 pound of trinitrotoluene (TNT);
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1 (5) the term ‘‘non-nuclear-weapon state’’ means

2 any country which is not a nuclear-weapon state, as

3 defined by Article IX (3) of the Treaty on the Non4 Proliferation of Nuclear Weapons, signed at Wash5 ington, London, and Moscow on July 1, 1968;

6 (6) the term ‘‘special nuclear material’’ has the

7 meaning given that term in section 11 aa. of the

8 Atomic Energy Act of 1954 (42 U.S.C. 2014aa);

9 (7) the term ‘‘United States person’’ means—

10 (A) an individual who is a citizen of the

11 United States or an alien admitted for perma12 nent residence to the United States; or

13 (B) a corporation, partnership, or other

14 nongovernment entity which is not a foreign

15 person; and

16 (8) the term ‘‘unsafeguarded special nuclear

17 material’’ means special nuclear material which is

18 held in violation of IAEA safeguards or not subject

19 to IAEA safeguards (excluding any quantity of ma20 terial that could, if it were exported from the United

21 States, be exported under a general license issued by

22 the Nuclear Regulatory Commission).
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1 SEC. 232. EFFECTIVE DATE.

2 The provisions of this part, and the amendments

3 made by this part, shall take effect on the date of the

4 enactment of this Act.

5 PART C—INTERNATIONAL ATOMIC ENERGY

6 AGENCY

7 SEC. 241. BILATERAL AND MULTILATERAL INITIATIVES.

8 It is the sense of the Congress that in order to main9 tain and enhance international confidence in the effective10 ness of IAEA safeguards and in other multilateral under11 takings to halt the global proliferation of nuclear weapons,

12 the United States should seek to negotiate with other na13 tions and groups of nations, including the IAEA Board

14 of Governors and the Nuclear Suppliers Group, to—

15 (1) build international support for the principle

16 that nuclear supply relationships must require pur17 chasing nations to agree to full-scope international

18 safeguards;

19 (2) encourage each nuclear-weapon state within

20 the meaning of the Treaty to undertake a com21 prehensive review of its own procedures for declas22 sifying information relating to the design or produc23 tion of nuclear explosive devices and to investigate

24 any measures that would reduce the risk of such in25 formation contributing to nuclear weapons prolifera26 tion;
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1 (3) encourage the deferral of efforts to produce

2 weapons-grade nuclear material for large-scale com3 mercial uses until such time as safeguards are devel4 oped that can detect, on a timely and reliable basis,

5 the diversion of significant quantities of such mate6 rial for nuclear explosive purposes;

7 (4) pursue greater financial support for the im8 plementation and improvement of safeguards from

9 all IAEA member nations with significant nuclear

10 programs, particularly from those nations that are

11 currently using or planning to use weapons-grade

12 nuclear material for commercial purposes;

13 (5) arrange for the timely payment of annual fi14 nancial contributions by all members of the IAEA,

15 including the United States;

16 (6) pursue the elimination of international com17 merce in highly enriched uranium for use in research

18 reactors while encouraging multilateral cooperation

19 to develop and to use low-enriched alternative nu20 clear fuels;

21 (7) oppose efforts by non-nuclear-weapon states

22 to develop or use unsafeguarded nuclear fuels for

23 purposes of naval propulsion;

24 (8) pursue an international open skies arrange25 ment that would authorize the IAEA to operate sur-
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1 veillance aircraft and would facilitate IAEA access

2 to satellite information for safeguards verification

3 purposes;

4 (9) develop an institutional means for IAEA

5 member nations to share intelligence material with

6 the IAEA on possible safeguards violations without

7 compromising national security or intelligence

8 sources or methods;

9 (10) require any exporter of a sensitive nuclear

10 facility or sensitive nuclear technology to a non-nu11 clear-weapon state to notify the IAEA prior to ex12 port and to require safeguards over that facility or

13 technology, regardless of its destination; and

14 (11) seek agreement among the parties to the

15 Treaty to apply IAEA safeguards in perpetuity and

16 to establish new limits on the right to withdraw from

17 the Treaty.

18 SEC. 242. IAEA INTERNAL REFORMS.

19 In order to promote the early adoption of reforms in

20 the implementation of the safeguards responsibilities of

21 the IAEA, the Congress urges the President to negotiate

22 with other nations and groups of nations, including the

23 IAEA Board of Governors and the Nuclear Suppliers

24 Group, to—
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1 (1) improve the access of the IAEA within nu2 clear facilities that are capable of producing, proc3 essing, or fabricating special nuclear material suit4 able for use in a nuclear explosive device;

5 (2)(A) facilitate the IAEA’s efforts to meet and

6 to maintain its own goals for detecting the diversion

7 of nuclear materials and equipment, giving particu8 lar attention to facilities in which there are bulk

9 quantities of plutonium; and

10 (B) if it is not technically feasible for the IAEA

11 to meet those detection goals in a particular facility,

12 require the IAEA to declare publicly that it is un13 able to do so;

14 (3) enable the IAEA to issue fines for violations

15 of safeguards procedures, to pay rewards for infor16 mation on possible safeguards violations, and to es17 tablish a ‘‘hot line’’ for the reporting of such viola18 tions and other illicit uses of weapons-grade nuclear

19 material;

20 (4) establish safeguards at facilities engaged in

21 the manufacture of equipment or material that is es22 pecially designated or prepared for the processing,

23 use, or production of special fissionable material or,

24 in the case of non-nuclear-weapon states, of any nu25 clear explosive device;
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1 (5) establish safeguards over nuclear research

2 and development activities and facilities;

3 (6) implement special inspections of undeclared

4 nuclear facilities, as provided for under existing safe5 guards procedures, and seek authority for the IAEA

6 to conduct challenge inspections on demand at sus7 pected nuclear sites;

8 (7) expand the scope of safeguards to include

9 tritium, uranium concentrates, and nuclear waste

10 containing special fissionable material, and increase

11 the scope of such safeguards on heavy water;

12 (8) revise downward the IAEA’s official mini13 mum amounts of nuclear material (‘‘significant

14 quantity’’) needed to make a nuclear explosive device

15 and establish these amounts as national rather than

16 facility standards;

17 (9) expand the use of full-time resident IAEA

18 inspectors at sensitive fuel cycle facilities;

19 (10) promote the use of near real time material

20 accountancy in the conduct of safeguards at facili21 ties that use, produce, or store significant quantities

22 of special fissionable material;

23 (11) develop with other IAEA member nations

24 an agreement on procedures to expedite approvals of

25 visa applications by IAEA inspectors;
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1 (12) provide the IAEA the additional funds,

2 technical assistance, and political support necessary

3 to carry out the goals set forth in this subsection;

4 and

5 (13) make public the annual safeguards imple6 mentation report of the IAEA, establishing a public

7 registry of commodities in international nuclear com8 merce, including dual-use goods, and creating a pub9 lic repository of current nuclear trade control laws,

10 agreements, regulations, and enforcement and judi11 cial actions by IAEA member nations.

12 SEC. 243. REPORTING REQUIREMENT.

13 (a) REPORT REQUIRED.—The President shall, in the

14 report required by section 601(a) of the Nuclear Non-Pro15 liferation Act of 1978, describe—

16 (1) the steps he has taken to implement sec17 tions 241 and 242, and

18 (2) the progress that has been made and the

19 obstacles that have been encountered in seeking to

20 meet the objectives set forth in sections 241 and

21 242.

22 (b) CONTENTS OF REPORT.—Each report under

23 paragraph (1) shall describe—

24 (1) the bilateral and multilateral initiatives that

25 the President has taken during the period since the
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1 enactment of this Act in pursuit of each of the ob2 jectives set forth in sections 241 and 242;

3 (2) any obstacles that have been encountered in

4 the pursuit of those initiatives;

5 (3) any additional initiatives that have been

6 proposed by other countries or international organi7 zations to strengthen the implementation of IAEA

8 safeguards;

9 (4) all activities of the Federal Government in

10 support of the objectives set forth in sections 241

11 and 242;

12 (5) any recommendations of the President on

13 additional measures to enhance the effectiveness of

14 IAEA safeguards; and

15 (6) any initiatives that the President plans to

16 take in support of each of the objectives set forth in

17 sections 241 and 242.

18 SEC. 244. DEFINITIONS.

19 As used in this part—

20 (1) the term ‘‘highly enriched uranium’’ means

21 uranium enriched to 20 percent or more in the iso22 tope U–235;

23 (2) the term ‘‘IAEA’’ means the International

24 Atomic Energy Agency;
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1 (3) the term ‘‘near real time material account2 ancy’’ means a method of accounting for the loca3 tion, quantity, and disposition of special fissionable

4 material at facilities that store or process such mate5 rial, in which verification of peaceful use is continu6 ously achieved by means of frequent physical inven7 tories and the use of in-process instrumentation;

8 (4) the term ‘‘special fissionable material’’ has

9 the meaning given that term by Article XX(1) of the

10 Statute of the International Atomic Energy Agency,

11 done at the Headquarters of the United Nations on

12 October 26, 1956;

13 (5) the term ‘‘the Treaty’’ means the Treaty on

14 the Non-Proliferation of Nuclear Weapons, signed at

15 Washington, London, and Moscow on July 1, 1968;

16 and

17 (6) the terms ‘‘IAEA safeguards’’, ‘‘non-nu18 clear-weapon state’’, ‘‘nuclear explosive device’’, and

19 ‘‘special nuclear material’’ have the meanings given

20 those terms in section 231 of this Act.

21 PART D—REPEAL OF DUPLICATIVE PROVISIONS

22 SEC. 251. REPEAL.

23 Effective on the date of the enactment of this Act—

24 (1) title VIII of the Foreign Relations Author25 ization Act, Fiscal Years 1994 and 1995, the
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1 amendments made by that title, and the items relat2 ing to such title in the table of contents of that Act,

3 are repealed; and

4 (2) with respect to any provisions of law re5 pealed by title VIII of that Act, such title shall be

6 deemed not to have been enacted.

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