I

103D CONGRESS

1ST SESSION H. R. 3431

To amend the Export Administration Act of 1979 with respect to exports

of computers, telecommunications equipment, and semiconductors.

IN THE HOUSE OF REPRESENTATIVES

NOVEMBER 3, 1993

Mr. MANZULLO (for himself, Ms. CANTWELL, Mr. ROTH, and Mr. COX) introduced the following bill; which was referred to the Committee on Foreign

Affairs

A BILL

To amend the Export Administration Act of 1979 with respect to exports of computers, telecommunications equipment, and semiconductors.

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 ‘‘Computer and Commu5 nications Trade Freedom Act’’.

6 SEC. 2. FINDINGS.

7 The Congress makes the following findings:

8 (1) Increased communications and exchange of

9 information through computer and telecommuni-
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1 cations networks promotes the development of demo2 cratic political institutions, free market reforms, and

3 economic modernization; nevertheless, computers,

4 telecommunications, semiconductor, and related

5 equipment, software, and technology account for

6 more than 85 percent of the value of exports con7 trolled by the United States Department of Com8 merce under the Export Administration Act of 1979.

9 (2) The computer, telecommunications, and

10 semiconductor industries account for

11 $55,000,000,000 in exports and 12.3 percent of all

12 of the export trade of the United States. These sec13 tors represent over 850,000 jobs in the United

14 States.

15 (3) The rapid pace of technological development

16 and the dramatic reductions in product innovation

17 cycles for these products have rendered any system

18 for controlling their export meaningless.

19 (4) The availability of advanced computer, tele20 communications, and semiconductor products from

21 sources of supply other than the United States and

22 members of the Coordinating Committee for Multi23 lateral Export Countries (COCOM) exists, and the

24 perpetuation of export controls on these products

25 disadvantages United States exporters to the det-
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1 riment of the domestic economy, United States inno2 vation, and employment of American workers in

3 these 3 industries and in those United States indus4 tries which are the suppliers and customers of these

5 industries.

6 SEC. 3. REMOVAL OF EXPORT CONTROLS ON COMPUTERS

7 AND ELECTRONIC EQUIPMENT.

8 Section 4 of the Export Administration Act of 1979

9 (50 U.S.C. App. 2401) is amended by adding at the end

10 the following new subsection:

11 ‘‘(h) LICENSE AUTHORITY FOR COMPUTERS, TELE12 COMMUNICATIONS EQUIPMENT, AND SEMICONDUC13 TORS.—

14 ‘‘(1)(A) No validated license or reexport author15 ization may be required for the export or reexport

16 (as the case may be), for consumption or use in any

17 country other than a targeted country, of any prod18 uct or related software or technology that is or

19 would be classified under the following entries of the

20 control list as in effect on July 1, 1993, except for

21 any such product or related software or technology

22 to which missile technology controls apply under the

23 control list:

24 ‘‘(i) Computers and related equipment

25 under Category 4, code letter A.
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1 ‘‘(ii) Telecommunications and related

2 equipment under Category 5, Part I.

3 ‘‘(iii) Semiconductors, as follows:

4 ‘‘(I) Items 3A01A.a, 3A02A.h,

5 3A92F, and all integrated circuits or their

6 microelectronic devices classified under

7 3A96G.

8 ‘‘(II) Items 3D01A related to

9 3A01A.a and 3A02A.h, 3D03A, 3D94F,

10 and 3D96G related to integrated circuits

11 or other microelectronic devices classified

12 under 3A96G.

13 ‘‘(III) Items 3E01A related to

14 3A01A.a and 3A02A.h, 3E02A, 3E94F re15 lated to 3A92F, and 3E96G related to in16 tegrated circuits or other microelectronic

17 devices classified under 3A96G.

18 ‘‘(B) The United States shall not propose (or

19 ask any other government to propose) to the Coordi20 nating Committee the transfer of any item subject to

21 subparagraph (A) from the Industrial List of the

22 Coordinating Committee to the International Muni23 tions List of the Coordinating Committee.

24 ‘‘(C) The United States shall not agree to any

25 proposal to transfer any item subject to subpara-
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1 graph (A) from the Industrial List of the Coordinat2 ing Committee to the International Munitions List

3 of the Coordinating Committee.

4 ‘‘(2) No control on the export or reexport of

5 any good or technology for which no license or au6 thorization may be required under paragraph (1)(A)

7 may be imposed, directly or indirectly, under the

8 International Emergency Economic Powers Act, the

9 Trading with the Enemy Act, or other provision of

10 law, other than in connection with a prohibition on

11 all or substantially all exports to a specific country,

12 government, entity, or person.

13 ‘‘(3) Nothing in this subsection shall prohibit

14 the Secretary from requiring a validated license for

15 exports to (A) a country against which the United

16 States maintains an embargo of all or substantially

17 all exports, or (B) a party lawfully denied export

18 privileges under this Act.

19 ‘‘(4) For the purposes of this subsection, the

20 term ‘targeted country’ means any country—

21 ‘‘(A) the government of which the Sec22 retary of State has determined, under section

23 6(j), to be a government that has repeatedly

24 provided support for acts of international ter25 rorism; or
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1 ‘‘(B) which is subject to an embargo—

2 ‘‘(i) which has been imposed by the

3 United Nations on all or substantially all

4 exports to that country; and

5 ‘‘(ii) in which the United States is

6 participating.

7 ‘‘(5) The provisions of this subsection apply

8 notwithstanding any other provision of this Act.’’.

9 SEC. 4. EFFECTIVE DATE.

10 (a) FOR AMENDMENT.—The amendment made by

11 section 3 shall take effect 6 months after the date of the

12 enactment of this Act.

13 (b) INTERIM NEGOTIATIONS.—Upon the enactment

14 of this Act, the President shall undertake negotiations

15 with the Coordinating Committee for Multilateral Export

16 Controls (‘‘COCOM’’) and other relevant multilateral ex17 port control regimes for the purpose of attaining agree18 ment among the members of COCOM and such other re19 gimes to apply export controls consistent with the amend20 ment made by section 3. Whether such agreement is at21 tained shall not affect the effective date set forth in sub22 section (a).

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