I

104TH CONGRESS

1ST SESSION H. R. 2231

To amend the Export Administration Act of 1979 to require reviews of

the commodity control list.

IN THE HOUSE OF REPRESENTATIVES

AUGUST 4, 1995

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

Committee on International Relations

A BILL

To amend the Export Administration Act of 1979 to require

reviews of the commodity control list.

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 ‘‘Technology Export Re5 view Act’’.

6 SEC. 2. ANNUAL REVIEW OF CONTROLLED ITEMS.

7 Section 4 of the Export Administration Act of 1979

8 (50 U.S.C. App. 2403) is amended by adding at the end

9 the following:

10 ‘‘(h) CONTROL LIST REVIEW.—
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1 ‘‘(1) IN GENERAL.—In order to ensure that re2 quirements for validated licenses to export are peri3 odically removed as goods and technology become

4 obsolete with respect to the specific objectives of the

5 export controls requiring such licenses, the Secretary

6 shall conduct periodic reviews of such controls im7 posed under sections 5 and 6. The Secretary shall

8 complete such a review not later than 6 months

9 after the date of the enactment of this subsection,

10 and not later than the end of each 1-year period

11 thereafter.

12 ‘‘(2) REVIEW ELEMENTS.—In conducting each

13 review under paragraph (1), the Secretary shall do

14 the following with respect to the export controls re15 quiring a license described in paragraph (1):

16 ‘‘(A) OBJECTIVES OF CONTROLS.—The

17 Secretary shall identify the specific objectives of

18 the export controls, for the 12-month period fol19 lowing the completion of the review, for each

20 country or group of countries for which a vali21 dated license is required. When an objective of

22 an export control is to defer the development of

23 a specific capability in such country or group of

24 countries, the Secretary shall specify for what
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1 period of time the controls are expected to defer

2 such capability.

3 ‘‘(B) QUANTITY AND PERFORMANCE.—The

4 Secretary shall estimate, for the 12-month pe5 riod described in subparagraph (A), the quan6 tities and performance (as specified in specific

7 performance parameters on the control list) of

8 the goods and technology to which the controls

9 apply that must be obtained by each country or

10 group of countries for which a validated license

11 is required in order to defeat the objectives of

12 the export controls.

13 ‘‘(C) AVAILABILITY TO CONTROLLED DES14 TINATIONS.—The Secretary shall evaluate the

15 effectiveness of the export controls in achieving

16 their specific objectives, including explicit de17 scriptions of the availability from sources out18 side the United States, or from sources inside

19 the United States resulting from the inability of

20 the United States Government to effectively en21 force controls, during the 12-month period de22 scribed in subparagraph (A), to controlled coun23 tries of goods and technology to which the ex24 port controls apply.
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1 ‘‘(D) ECONOMIC IMPACT.—The Secretary

2 shall evaluate the economic impact, during the

3 12-month period described in subparagraph

4 (A), of the export controls on exporting compa5 nies, including estimates of lost sales, loss in

6 market share, and administrative overhead.

7 ‘‘(3) CHANGES IN CONTROLS.—

8 ‘‘(A) CHANGES.—After completing each re9 view under this subsection, the Secretary shall,

10 if warranted by the findings of the review and

11 after consultation with appropriate departments

12 or agencies—

13 ‘‘(i) eliminate the requirement for an

14 export license for a particular good or

15 technology;

16 ‘‘(ii) make such a good or technology

17 eligible for delivery under a distribution li18 cense or other license authorizing multiple

19 exports;

20 ‘‘(iii) eliminate a performance thresh21 old or other characteristic upon which the

22 requirement for a validated license for such

23 a good or technology is based; or

24 ‘‘(iv) increase the performance levels

25 at which an individual validated license for
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1 such a good or technology is required, at

2 which it is eligible for delivery under a dis3 tribution license, or at which special condi4 tions or security safeguard plans are im5 posed as a condition of export.

6 ‘‘(4) HEARINGS.—The Secretary shall conduct

7 public hearings not less than once each year in order

8 to solicit information from all interested parties on

9 all matters to be addressed in each review conducted

10 under this subsection.

11 ‘‘(5) REMOVAL OF CONTROLS ON MASS-MARKET

12 PRODUCTS.—

13 ‘‘(A) MASS-MARKET PRODUCTS DE14 FINED.—For the purposes of this paragraph,

15 the term ‘mass-market product’ means any

16 good or technology sold, licensed, or otherwise

17 distributed as a discrete item and which will

18 have been distributed for end use outside the

19 United States in a quantity exceeding 100,000

20 units over a 12-month period, as determined

21 under subparagraph (B).

22 ‘‘(B) ANTICIPATORY REVIEW OF MASS23 MARKET PRODUCTS.—Not later than—

24 ‘‘(i) 6 months after the date of the en25 actment of this subsection, and
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1 ‘‘(ii) the end of each 1-year period

2 thereafter,

3 the Secretary shall, in consultation with the ap4 propriate technical advisory committee, industry

5 groups, and producers, identify those items de6 scribed in subparagraph (A) (including products

7 differentiated on the control list according to

8 specific performance parameters) that will be

9 distributed for end use outside the United

10 States in a quantity exceeding 100,000 units

11 beginning on the applicable date described in

12 clause (i) or (ii). For purposes of this para13 graph, estimates of numbers of items that will

14 be distributed shall be based on reliable esti15 mates provided by producers of such items.

16 ‘‘(C) ACTION BY THE SECRETARY.—Not

17 later than 30 days after an item is determined

18 by the Secretary under subparagraph (B) to be

19 a mass-market product, the Secretary shall pro20 pose to any group of countries which imposes

21 export controls on the item cooperatively with

22 the United States the elimination of controls on

23 the item in accordance with the procedures of

24 such group, and shall publish a notice of such

25 proposal in the Federal Register.
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1 ‘‘(6) RELATIONSHIP TO OTHER PROVISIONS.—

2 The requirements of this subsection are in addition

3 to any other requirements of this Act. The Secretary

4 may coordinate reviews under this subsection with

5 reviews conducted under section 5(c).’’.

6 SEC. 3. EQUAL TREATMENT OF COMPONENTS.

7 Section 4 of the Export Administration Act of 1979

8 is amended by adding at the end the following new sub9 section:

10 ‘‘(i) TREATMENT OF SEMICONDUCTORS.—The export

11 control treatment imposed under the authority of this Act

12 upon semiconductor devices shall be no more restrictive

13 or burdensome to the exporter than the export control

14 treatment imposed under the authority of this Act upon

15 computer systems or telecommunications systems for

16 which the semiconductor devices serve or can serve as

17 components.’’.

Æ