IB

Union Calendar No. 304

103D CONGRESS

2D SESSION H. R. 3937

[Report No. 103–531, Parts I, II, III, and IV]

Entitled the ‘‘Export Administration Act of 1994’’.

IN THE HOUSE OF REPRESENTATIVES

MARCH 2, 1994

Mr. GEJDENSON (by request) introduced the following bill; which was referred

to the Committee on Foreign Affairs

MAY 25, 1994

Reported with amendments, and referred to the Committees on Armed Services, Judiciary, Public Works and Transportation, Ways and Means, and

the Permanent Select Committee on Intelligence for a period ending not

later than June 17, 1994, for consideration of such provisions contained

in the bill and amendment as fall within the respective jurisdictions of

those committees pursuant to rule X.

[Strike out all after the enacting clause and insert the part printed in italic]

JUNE 16, 1994

Reported from the Permanent Select Committee on Intelligence with

amendments

[Omit the part struck through in italic and insert the part printed in boldface italic]

JUNE 17, 1994

Reported from the Committee on Ways and Means with amendments

[Omit the part in bold parentheses and insert the part printed in boldface roman in bold

parentheses]

JUNE 17, 1994

Reported from the Committee on Armed Services with amendments

[Omit the part in italic black brackets and insert the part printed in boldface roman]

JUNE 17, 1994

Committees on the Judiciary and Public Works and Transportation dis-
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charged; committed to the Committee of the Whole House on the State

of the Union, and ordered to be printed

[For text of introduced bill, see copy of bill as introduced on March 2, 1994]

A BILL

Entitled the ‘‘Export Administration Act of 1994’’.

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 Admin5 istration 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.

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. Conforming amendments to other laws.

Sec. 119. Effective date.

Sec. 120. Expiration date.

Sec. 121. Savings provision.
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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

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
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1 national security, nonproliferation, and foreign policy

2 reasons.

3 (2) Exports of certain commodities and tech4 nology may adversely affect the national security of

5 the United States by making a direct and significant

6 contribution to the military potential of individual

7 countries or by disseminating the capability to

8 produce or use weapons of mass destruction. There9 fore, the administration of export controls should em10 phasize the control of these exports.

11 (3) The acquisition of dual use commodities and

12 technology by those countries and end users whose ac13 tions or policies run counter to United States na14 tional security interests may enhance the military ca15 pabilities of those countries, particularly their ability

16 to produce and deliver nuclear, chemical, and biologi17 cal weapons. This enhancement threatens the security

18 of the United States and its allies, and places addi19 tional demands on the defense budget of the United

20 States. Availability to certain countries and end users

21 of items that contribute to certain military capabili22 ties or the proliferation of weapons of mass destruc23 tion is a fundamental concern of the United States

24 and should be eliminated through negotiations and

25 other appropriate means whenever possible.
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1 (4) Exporting is critical to the economic health

2 of the United States and, therefore, to its national se3 curity as well. With the growing importance of ex4 ports to sustained United States economic growth and

5 vitality, restrictions on exports must be evaluated in

6 terms of their effects on the United States economy as

7 well as on its national security. Restrictions on ex8 ports from the United States have had serious adverse

9 effects on economic competitiveness and domestic em10 ployment, particularly when restraints applied by the

11 United States have been more extensive than those

12 imposed by other countries or when United States ex13 port control policy is uncertain.

14 (5) Export controls cannot be the sole instrument

15 of the United States to prevent a country or end user

16 from developing weapons of mass destruction. For this

17 reason, export controls should be applied as part of a

18 comprehensive response to security threats.

19 (6) The national security of the United States

20 depends not only on wise foreign policies and a

21 strong defense, but also a vibrant national economy.

22 To be truly effective, export controls should be applied

23 uniformly by all suppliers.

24 (7) Effective export controls also must be focused

25 only on those items that materially contribute to a
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1 country’s or an end user’s military potential or po2 tential to produce or use weapons of mass destruction.

3 (8) Unilateral export controls are generally not

4 effective in influencing the behavior of other govern5 ments or impeding access to controlled countries of

6 controlled items. In most situations, unilateral con7 trols alone impede access to United States sources of

8 supply without affecting the ability of controlled

9 countries to obtain controlled items elsewhere. More10 over, unilateral controls permit foreign competitors to

11 serve markets the United States Government denies to

12 United States firms and workers, thus impairing the

13 reliability of United States suppliers in comparison

14 with their foreign competitors. At the same time, the

15 need to lead the international community or over16 riding national security or foreign policy interests

17 may justify unilateral controls in specific cases.

18 (9) The United States recognizes the importance

19 of comprehensive enforcement measures to maximize

20 the effectiveness of multilateral controls.

21 (10) The United States’ export control system

22 must not be overly restrictive or bureaucratic, or un23 dermine the competitive position of American indus24 try. The export control system must be efficient, re25 sponsive, transparent, and effective.
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1 (11) Export restrictions that negatively affect the

2 United States industrial base ultimately weaken

3 United States military capabilities and lead to de4 pendencies on foreign sources for key components.

5 (12) Minimization of restrictions on exports of

6 agricultural commodities and products is of critical

7 importance to the maintenance of a sound agricul8 tural sector, to a positive contribution to the balance

9 of payments, to reducing the level of Federal expendi10 tures for agricultural support programs, and to Unit11 ed States cooperation in efforts to eliminate malnutri12 tion and world hunger.

13 SEC. 103. POLICY STATEMENT.

14 It is the policy of the United States to do the following:

15 (1) To stem the proliferation of weapons of mass

16 destruction and the means to deliver them by—

17 (A) leading international efforts to control

18 the proliferation of chemical, biological, and nu19 clear weapons and missiles;

20 (B) controlling involvement of United

21 States persons in, and contributions by United

22 States persons to, foreign programs intended to

23 develop weapons of mass destruction or missiles

24 and the means to design, develop, produce, stock25 pile, or use them; and
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1 (C) implementing international treaties or

2 other agreements that require controls on exports

3 of designated items, reports on the production,

4 processing, consumption, and exports of such

5 items, and compliance with verification pro6 grams.

7 (2) To restrict the export of items that would di8 rectly and significantly contribute to the military po9 tential of countries so as to ƒpose a threat to the na10 tional security≈ prove detrimental to the na11 tional security of the United States or its allies.

12 (3) To—

13 (A) minimize uncertainties in export con14 trol policy; and

15 (B) encourage trade with all countries with

16 which the United States has diplomatic or trad17 ing relations, except those countries with which

18 such trade has been determined by the President

19 to be against the national interest, and to strong20 ly encourage the trading partners of the United

21 States not to trade with those other countries.

22 (4) To restrict export trade when necessary to

23 protect the domestic economy from the excessive drain

24 of scarce materials and to reduce the serious infla25 tionary impact of foreign demand.
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1 (5) To increase the effectiveness of and the reli2 ance of the United States upon multilateral coordina3 tion of controls through effective export control re4 gimes that—

5 (A) clearly identify countries and entities to

6 which, and end uses for which, exports of items

7 are to be controlled,

8 (B) incorporate lists of controlled items that

9 are critical to the control objectives,

10 (C) establish uniform criteria and proce11 dures for licensing, and

12 (D) implement means to curtail member

13 countries from granting licenses that render inef14 fective license denials by the United States.

15 (6) To impose unilateral controls, under the pro16 cedures and conditions set forth in section 106, only

17 when it is ƒessential to≈ necessary to further

18 significantly the national security or foreign pol19 icy of the United States, and only after full consider20 ation of the economic impact of the controls and their

21 effectiveness in achieving their intended objectives.

22 (7) To make all licensing determinations in a

23 timely manner so undue delays in the licensing proc24 ess will not cause a United States firm to lose an ex25 port sale.
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1 (8) To maintain a presumption of approval of

2 license applications for authority to export items for

3 civil end use.

4 (9) To use export controls to encourage other

5 countries to take immediate steps to prevent the use

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

7 give sanctuary to those persons involved in directing,

8 supporting, or participating in acts of international

9 terrorism.

10 (10)(A) To counteract restrictive trade practices

11 or boycotts fostered or imposed by foreign countries

12 against other countries friendly to the United States

13 or against any United States person.

14 (B) To encourage and, in specified cases, require

15 United States persons engaged in the export of com16 modities, technology, and other information to refuse

17 to take actions, including furnishing information or

18 entering into or implementing agreements, which

19 have the effect of furthering or supporting the restric20 tive trade practices or boycotts fostered or imposed by

21 any foreign country against a country friendly to the

22 United States or against any United States person.

23 (11) To consolidate export control functions and

24 increase administrative accountability, and thereby

25 better serve the exporting public by reducing and
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1 eliminating overlapping, conflicting, and inconsistent

2 regulatory burdens.

3 (12) To minimize restrictions on the export of

4 agricultural commodities and products.

5 SEC. 104. GENERAL PROVISIONS.

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

7 the Secretary may impose, consistent with the provisions

8 of this title, and subject to paragraph (2)(B), the Secretary

9 may require the following types of licenses for exports of

10 commodities and technology controlled under this title:

11 (1) SPECIFIC EXPORTS AND REEXPORTS.—An

12 individual validated license, authorizing a specific ex13 port.

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

15 Validated licenses authorizing multiple exports, in

16 lieu of an individual validated license for each such

17 export.

18 (B)(i) A distribution license, authorizing mul19 tiple exports of general application computers to any

20 country other than a sanctioned country. The Sec21 retary shall grant such distribution licenses strictly

22 on the basis of the reliability of the applicant and for23 eign consignees with respect to the prevention of di24 version of commodities or technology, consistent with

25 section 105(a)(1). Not later than 30 days after an ap-
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1 plication is submitted under section 109 for such a

2 distribution license to export general application com3 puters, the Secretary shall grant the license with re4 spect to such distributors and end users that the Sec5 retary determines to be reliable. The Secretary may

6 deny the license application with respect to those dis7 tributors and end users that present a risk of diver8 sion of commodities or technology, directly or indi9 rectly, consistent with the provisions of section

10 105(a)(1).

11 (ii) For purposes of this subparagraph, a ‘‘sanc12 tioned country’’ is any country—

13 (I) the government of which the Secretary of

14 State has determined to be a government that

15 has repeatedly provided support for acts of inter16 national terrorism; or

17 (II) against which the United States main18 tains an embargo on all, or substantially all, ex19 ports pursuant to the International Emergency

20 Economic Powers Act or the Trading With The

21 Enemy Act.

22 (iii) For purposes of this subparagraph, the term

23 ‘‘general application computers’’ means any computer

24 system, computer networking equipment, peripheral

25 to a computer system, or combination thereof, on
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1 which export controls are in effect under section 105,

2 except the following:

3 (I) Supercomputers.

4 (II) Computers specially designed for use in

5 connection with the capability described in sub6 paragraph (A) or (B) of section 105(a)(1).

7 (III) Computers specially designed for use

8 in connection with the surreptitious interception

9 of wire or oral communications.

10 (b) GENERAL PROHIBITION.—Notwithstanding any

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

12 which such person knows will materially contribute to a

13 program or activity for the design, development, or manu14 facture of a weapon of mass destruction or missile in a

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

16 with respect to, an export control regime controlling such

17 weapon or missile.

18 (c) UNITED STATES COMMODITY CONTROL INDEX.—

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

20 (A) establish and maintain a United States

21 Commodity Control Index which shall identify

22 all commodities and technology on which con23 trols are imposed under this title;

24 (B) specify the license requirements applica25 ble to the items on the control index; and
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1 (C) designate countries, and end uses or end

2 users, to which exports of commodities and tech3 nology are controlled.

4 (2) CONTENTS.—The control index shall—

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

6 commodities and technology on which export

7 controls are imposed under section 105, an emer8 gency control list of all commodities and tech9 nology on which export controls are imposed

10 under section 106, and a short supply control

11 list of all commodities on which export controls

12 are imposed under section 107;

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

14 specify with particularity the performance

15 (where applicable) and other identifying charac16 teristics of the item and provide a rationale for

17 why the item is on the control list;

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

19 users, to which exports are controlled, including

20 specific projects and end users of concern, cross21 referenced with the list of commodities and tech22 nology on which export controls are imposed;

23 and

24 (D) be sufficiently specific and clear as to

25 guide exporters and licensing officers in deter-
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1 minations of licensing requirements under this

2 title.

3 (3) LICENSING OF CONTROL INDEX COMMODITIES

4 AND TECHNOLOGY.—A validated license may be re5 quired for the export of those commodities and tech6 nology that are specifically and clearly identified on

7 the control index to countries, end uses, and end users

8 so designated on the control index. No authority or

9 permission may be required to export commodities

10 and technology not so identified to any country, end

11 use, or end user not so designated.

12 (d) DELEGATION OF AUTHORITY.—Subject to the pro13 visions of this title, the President may delegate the power,

14 authority, and discretion conferred upon the President by

15 this title to such departments, agencies, and officials of the

16 Government as the President considers appropriate, except

17 that no authority under this title may be delegated to, or

18 exercised by, any official of any department or agency the

19 head of which is not appointed by the President, by and

20 with the advice and consent of the Senate. The President

21 may not delegate or transfer his power, authority, or discre22 tion to overrule or modify any recommendation or decision

23 made by the Secretary, the Secretary of Defense, or the Sec24 retary of State under this title and may not delegate the

25 authority under section 106(a)(4).
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1 (e) NOTIFICATION OF THE PUBLIC; CONSULTATION

2 WITH BUSINESS.—The Secretary shall keep the public fully

3 apprised of changes in export control policy and procedures

4 instituted in conformity with this title with a view to en5 couraging trade. The Secretary shall consult regularly with

6 representatives of a broad spectrum of enterprises, labor or7 ganizations, and citizens interested in or affected by export

8 controls, in order to obtain their views on United States

9 export control policy and the foreign availability of items

10 subject to controls.

11 (f) EXPORT ADVISORY COMMITTEES.—

12 (1) APPOINTMENT.—Upon his or her own initia13 tive or upon the written request of representatives of

14 a substantial segment of any industry which produces

15 any items subject to export controls under this title or

16 being considered for such controls, the Secretary shall

17 appoint export advisory committees with respect to

18 any such items. Each such committee shall consist of

19 representatives of United States industry and Govern20 ment, including the Department of Commerce and

21 other appropriate departments and agencies of the

22 Government. The Secretary shall permit the widest

23 possible participation by the business community on

24 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, agency,

4 or official of the Government carrying out functions

5 under this title, on actions (including all aspects of

6 controls imposed or proposed) designed to carry out

7 the policies of this title concerning the items with re8 spect to which such export advisory committees were

9 appointed. Such committees, where they have exper10 tise in such matters, shall be consulted on questions

11 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, with

7 any person representing an industry or the general

8 public, regardless of whether such person is a member

9 of an export advisory committee. Members of the pub10 lic shall be given a reasonable opportunity, pursuant

11 to regulations prescribed by the Secretary, to present

12 evidence to such committees.

13 (3) REIMBURSEMENT OF EXPENSES.—Upon the

14 request of any member of any export advisory com15 mittee appointed under paragraph (1), the Secretary

16 may, if the Secretary determines it to be appropriate,

17 reimburse such member for travel, subsistence, and

18 other necessary expenses incurred by such member in

19 connection with the duties of such member.

20 (4) CHAIRPERSON.—Each export advisory com21 mittee appointed under paragraph (1) shall elect a

22 chairperson, and shall meet at least every 3 months

23 at the call of the chairperson, unless the chairperson

24 determines, in consultation with the other members of

25 the committee, that such a meeting is not necessary
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1 to achieve the purposes of this subsection. Each such

2 committee shall be terminated after a period of 2

3 years, unless extended by the Secretary for additional

4 periods of 2 years each. The Secretary shall consult

5 each such committee on such termination or extension

6 of that committee.

7 (5) ACCESS TO INFORMATION.—To facilitate the

8 work of the export advisory committees appointed

9 under paragraph (1), the Secretary, in conjunction

10 with other departments and agencies participating in

11 the administration of this title, shall disclose to each

12 such committee adequate information, consistent with

13 national security, pertaining to the reasons for the ex14 port controls which are in effect or contemplated for

15 the items or policies for which that committee fur16 nishes advice.

17 (6) POLICY ADVICE.—The Secretary shall ap18 point a group of knowledgeable individuals from busi19 nesses affected by export controls to provide advice to

20 the Secretary on export control policy issues. The

21 chairperson of such group shall represent export advi22 sory committees regarding review of control lists

23 maintained by export control regimes and United

24 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 appro3 priate departments and agencies, shall be responsible for

4 conducting negotiations with other countries regarding

5 multilateral arrangements for restricting the export of items

6 to carry out the policies of this title. All appropriate depart7 ments and agencies shall consult among themselves and

8 with the appropriate export advisory committees appointed

9 under subsection (f) to develop initial technical parameters

10 and product definitions in connection with the development

11 of proposals within the United States Government to be

12 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 policies

16 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 treaties

24 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 poli7 cies set forth in paragraphs (1), (2), and (5) of sec8 tion 103, the President may, in accordance with this

9 section, prohibit or curtail the export of any commod10 ities or technology subject to the jurisdiction of the

11 United States, or exported by any person subject to

12 the jurisdiction of the United States, if such commod13 ities 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 ƒpose a threat to the national security≈

21 prove detrimental to the national se22 curity of the United States or its allies.

23 (2) EXERCISE OF AUTHORITY.—The authority

24 granted by this subsection shall be implemented by

25 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 that

3 no authority or permission to export may be required

4 under this section shall not apply to the extent that

5 the applicable export control regime provides other6 wise.

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 spe16 cific commodities and technology the export of which

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

18 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, that

21 affects the items controlled by an export control re22 gime, the Secretary of State shall propose to that re23 gime any revisions that would be necessary as a re24 sult 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) PROCEDURE FOR INCLUDING ITEMS

4 ON THE SECURITY CONTROL LIST.—The Sec5 retaries of Defense and Energy and the

6 heads of other appropriate departments

7 and agencies shall identify commodities

8 and technology for inclusion on the secu9 rity control list. Those items which the

10 Secretary and the Secretary of Defense

11 concur shall be subject to export controls

12 under this section shall comprise the se13 curity control list. If the Secretary and

14 the Secretary of Defense are unable to

15 concur on such items, as determined by

16 the Secretary, the Secretary of Defense

17 may, within 20 days after receiving notifi18 cation of the Secretary’s determination,

19 refer the matter to the President for reso20 lution. The Secretary of Defense shall no21 tify the Secretary of any such referral.

22 The President shall, not later than 20

23 days after such referral, notify the Sec24 retary of his determination with respect

25 to the inclusion of such items on the se-
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1 curity control list. Failure of the Sec2 retary of Defense to notify the President

3 or the Secretary, or failure of the Presi4 dent to notify the Secretary, in accord5 ance with this paragraph, shall be

6 deemed by the Secretary to constitute

7 concurrence in the implementation of the

8 actions proposed by the Secretary re9 garding the inclusion of such items on

10 the security control list.

11 ƒ(2)≈ (3) CONTROLLED COMMODITIES AND

12 TECHNOLOGY.—Export controls shall be imposed

13 under this section if, and may be imposed under this

14 section only if, the export controls are agreed to by an

15 export control regime ƒwhich includes export control

16 purposes, items subject to control, policy of review for

17 license applications, and all controlled destinations,

18 and end uses or end users≈.

19 ƒ(3)≈ (4) CONTROLLED COUNTRIES, END USES,

20 AND END USERS.—A country shall be designated a

21 controlled country, and an end use or end user shall

22 be designated a controlled end use or controlled end

23 user, with respect to a particular commodity or tech24 nology on the security control list if exports of such

25 commodity or technology to such country, end use, or
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1 end user are controlled multilaterally pursuant to the

2 agreement of an export control regime described in

3 paragraph (2).

4 (c) EXPORT LICENSING POLICIES FOR CONTROLLED

5 COUNTRIES AND CONTROLLED END USES OR END

6 USERS.—

7 (1) EXPORTS TO CONTROLLED COUNTRIES, AND

8 END USES OR END USERS.—

9 (A) IN GENERAL.—The Secretary shall re10 quire authority or permission to export commod11 ities and technology on the security control list

12 to a controlled country, a controlled end use, or

13 a controlled end user.

14 (B) PRESUMPTION OF APPROVAL FOR CIVIL

15 END USES.—Subject to subparagraph (C), appli16 cations to export commodities or technology for

17 civil end uses shall carry a presumption of ap18 proval.

19 (C) PRESUMPTION OF DENIAL FOR CON20 TROLLED END USERS.—Exports to controlled

21 end users of commodities or technology on which

22 controls are in effect under this section shall

23 carry a presumption of denial.

24 ƒ(D) BASIS FOR DENIAL.—Licenses may be

25 denied under this section only if the commodity
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1 or technology meets the requirements of subpara2 graph (A) or (B) of subsection (a)(1).≈

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

4 paragraph (1)(B) of whether commodities or tech5 nology are for civil end use shall be based on the fol6 lowing criteria:

7 (A) Whether the stated end use is civil.

8 (B) Whether the civil application of the

9 commodities or technology is well established in

10 countries other than controlled countries.

11 (C) Whether the commodities or technology

12 proposed for export are reasonable in quantity

13 and quality for the proposed end use.

14 (D) The risk of diversion to an unauthor15 ized use or consignee, including whether such di16 version can be verified.

17 (d) EXPORT CONTROL REGIMES AND LICENSING POLI18 CIES.—For the purposes of creating effective multilateral

19 export controls and strengthening the controls imposed by

20 export control regimes, the Secretary of State shall, with

21 respect to each export control regime, pursue negotiations

22 with other members of such regime to accomplish the follow23 ing objectives:

24 (1) Development of a common list of commodities

25 and technology to which export controls are applied,
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1 and a common list of countries, and end uses or end

2 users, to which exports are controlled, by members of

3 the regime.

4 (2) Agreement on the same treatment, to be ap5 plied by all members of the regime, of exports and re6 exports to members of the regime, cooperating coun7 tries, and other countries that are not controlled coun8 tries.

9 (3) National procedures resulting in comparable

10 implementation and enforcement of export controls

11 among the members of the regime, including laws pro12 viding appropriate civil and criminal penalties and

13 statutes of limitations sufficient to deter potential vio14 lations.

15 (4) Periodic meetings of high-level representa16 tives of governments participating in the regime for

17 the purpose of coordinating national export control

18 policies and issuing policy guidance for dissemina19 tion to exporters in participating countries.

20 (5) Establishment of procedures for regular con21 sultation among members of the regime on proposed

22 export license applications that includes consultation

23 with individuals with sufficient technical expertise to

24 assess the licensing status of exports and to ensure the

25 reliability of end users.
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1 (6) An enforcement mechanism that provides au2 thority for adequately trained enforcement officers to

3 investigate and prevent illegal exports.

4 (7) Development of a system of export control

5 documentation to verify the movement of commodities

6 and technology.

7 (8) Establishment of procedures for the coordina8 tion and sharing of information on licensing, end

9 users, and enforcement.

10 (9) The application of adequate national re11 sources to carry out paragraphs (1) through (8).

12 (e) INCENTIVES FOR COUNTRIES TO PARTICIPATE IN

13 OR COOPERATE WITH EXPORT CONTROL REGIMES.—

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

15 Secretary, in consultation with the Secretary of State,

16 determines that an existing export control regime has

17 failed to meet the objectives set forth in subsection (d),

18 exports to all countries that are members of, or co19 operating countries with respect to, that regime shall

20 be subject to the licensing treatment set forth in this

21 subsection. The Secretary shall publish each deter22 mination under this paragraph in the Federal Reg23 ister.

24 (2) FAVORABLE LICENSING TREATMENT.—Sub25 ject to paragraphs (3) and (4), unless an export con-
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•HR 3937 RH

1 trol regime is the subject of a determination under

2 paragraph (1), no authority or permission may be re3 quired for exports of any commodity or technology

4 controlled by that regime to or among members of

5 that regime or cooperating countries with respect to

6 that regime.

7 (3) ƒEXCEPTION.—¿ EXCEPTIONS.—(A) If

8 the Secretary determines that a member of an export

9 control regime, a cooperating country with respect to

10 such regime, or an end user in a country that is such

11 a regime member or in such a cooperating country is

12 engaging in a pattern and practice of noncompliance

13 with controls agreed to by the regime—

14 ƒ(A)≈ (i) if the license treatment under

15 paragraph (2) is provided by the United States

16 unilaterally, the Secretary shall terminate such

17 treatment with respect to that noncomplying

18 member, cooperating country, or end user during

19 the period in which the determination is in ef20 fect; or

21 ƒ(B)≈ (ii) in any other case the Secretary

22 shall seek a similar determination by the other

23 members of the regime concerning such non24 compliance and, if such a determination is

25 made, the Secretary shall propose the suspension
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1 of favorable licensing treatment of exports to that

2 noncomplying regime member, cooperating coun3 try, or end user by all members of the regime

4 during the period in which that determination is

5 in effect.

6 (B) If the Secretary of Defense deter7 mines that the absence of a requirement

8 of licenses for any exports described in

9 paragraph (2) would prove detrimental to

10 the national security of the United States

11 the Secretary of Defense may request

12 that a license be required for such ex13 port. If the Secretary refuses to require

14 the license, the Secretary shall report to

15 the Committees on Armed Services of the

16 House of Representatives and the Senate,

17 the Committee on Banking, Housing, and

18 Urban Affairs of the Senate, and the Com19 mittee on Foreign Affairs of the House of

20 Representatives on the reasons for refus21 ing to require a license.

22 (4) EXCEPTION FOR EXPORTS TO CERTAIN COUN23 TRIES.—(A) Should some of the members of an export

24 control regime decide to require licenses for the export

25 to other members of the regime or to cooperating
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1 countries of certain items controlled by the regime, the

2 United States may require such licenses if—

3 (i) the Secretary determines that a prepon4 derance of the world’s supply of the items in5 volved would be subject to such export license re6 quirements; or

7 (ii) after making a determination that a

8 preponderance of the world’s supply of the items

9 involved would not be subject to such export li10 cense requirements, the Secretary, in consulta11 tion with the Secretary of State and the Sec12 retary of Defense, determines that the absence of

13 a requirement of export licenses for such items to

14 such members of the regime or cooperating coun15 tries would prove detrimental to the national se16 curity of the United States.

17 In any case in which the Secretary makes a deter18 mination under clause (ii), the Secretary shall pub19 lish that determination, together with a concise state20 ment of its basis and the estimated impact of the de21 termination.

22 (B) The Secretary shall notify the Congress at

23 least 30 days before a license requirement described in

24 subparagraph (A) goes into effect.
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1 (f) CREATION AND ENHANCEMENT OF MULTILATERAL

2 CONTROL REGIMES.—

3 (1) EXPANSION OF MEMBERSHIP OF REGIMES.—

4 For each existing export control regime and for each

5 export control regime the United States seeks to cre6 ate, the Secretary of State, in consultation with the

7 Secretary, shall seek—

8 (A) to expand the membership of the regime

9 to include all countries that produce or export

10 items controlled pursuant to agreement by the re11 gime and share the objectives of the regime;

12 (B) the adoption of procedures for effective

13 implementation of the rules and guidelines of the

14 regime through uniform and consistent interpre15 tations of export controls agreed to by the re16 gime;

17 (C) agreement to create a secretariat, for

18 each regime that seeks the prevention of the pro19 liferation of weapons of mass destruction or mis20 siles, that would call regular meetings of mem21 bers of the regime and establish rules for the re22 gime; and

23 (D) agreement within each regime not to

24 render ineffective the denial of licenses by other

25 regime members and to establish procedures for
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•HR 3937 RH

1 the coordination and regular exchange of infor2 mation about such denials.

3 (2) TERRORIST THREATS TO REGIME MEM4 BERS.—

5 (A) PRESUMPTION OF DENIAL FOR LI6 CENSES.—For each existing export control re7 gime and for each export control regime the

8 United States seeks to create, the Secretary of

9 State, in consultation with the Secretary, shall

10 pursue negotiations with other members of such

11 regime to establish a presumption of denial for

12 licenses for exports that would directly contribute

13 to acts of terrorism directed at 1 or more regime

14 members.—

15 (B) REPORTS TO CONGRESS.—The Sec16 retary shall annually report to the Committee on

17 Foreign Affairs of the House of Representatives

18 and the Committee on Banking, Housing, and

19 Urban Affairs of the Senate on the progress

20 made toward meeting the objectives set forth in

21 subparagraph (A).

22 (3) DISCLOSURE OF NONPROPRIETARY INFORMA23 TION.—The Secretary of State shall propose the fol24 lowing to each export control regime:
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•HR 3937 RH

1 (A) Full disclosure on a confidential basis

2 to all members of the regime of all

3 nonproprietary information relating to all li4 censes granted for the export of items controlled

5 by the regime, consistent with the protection of

6 intelligence sources and methods.

7 (B) A list of controlled items of particular

8 sensitivity for which such disclosure shall be

9 given 15 days before the license is issued.

10 (g) TRANSPARENCY OF MULTILATERAL CONTROL RE11 GIMES.—

12 (1) PUBLICATION OF INFORMATION ON EACH EX13 ISTING REGIME.—Within 6 months after the date of

14 the enactment of this Act, the Secretary shall publish

15 in the Federal Register the following information

16 with respect to export controls agreed to by each mul17 tilateral control regime existing on the date of the en18 actment of this Act:

19 (A) Purposes of the controls.

20 (B) Members of the regime.

21 (C) Licensing policy.

22 (D) Items subject to the controls, together

23 with all public notes, understandings, and other

24 aspects of the agreement of the regime, and all

25 changes thereto.
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•HR 3937 RH

1 (E) Controlled countries, controlled end

2 uses, and, to the extent not inconsistent with re3 quirements of the regime, controlled end users.

4 (F) Rules of interpretation.

5 (G) Major policy actions.

6 (H) The rules and procedures of the regime

7 for establishing and modifying any matter de8 scribed in subparagraphs (A) through (G) and

9 for reviewing export license applications.

10 (2) INFORMATION REGARDING CONTROLLED END

11 USERS.—The United States shall propose to each ex12 port control regime to permit a member of the regime

13 to publish the controlled end users (including projects

14 of concern) agreed to by the regime.

15 (3) NEW REGIMES.—Within 2 months after join16 ing or organizing a new export control regime, the

17 Secretary shall publish the information described in

18 subparagraphs (A) through (H) of paragraph (1).

19 (4) PUBLICATION OF CHANGES.—The Secretary

20 shall publish in the Federal Register any changes in

21 the information published under this subsection with22 in 2 months after the applicable regime adopts such

23 changes.

24 (h) EFFECTIVENESS OF MULTILATERAL CONTROL RE25 GIMES AND IMPLEMENTATION BY THEIR MEMBERS.—
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1 (1) ANNUAL EVALUATION.—At least once each

2 year, the Secretary shall evaluate the effectiveness of

3 each export control regime and the effectiveness of the

4 implementation of the regime by each of its members,

5 including the United States. Such evaluation shall be

6 included in the annual report issued under section

7 115.

8 (2) CONTENTS.—The evaluation under para9 graph (1) shall include the following for the calendar

10 year for which the report is issued:

11 (A) Items not controlled by the export con12 trol regime that the United States believes should

13 be controlled if the regime is to achieve its con14 trol purposes effectively.

15 (B) Countries that are sources of foreign

16 availability for each item controlled by agree17 ment of the regime. Such countries shall include

18 members of the regime, cooperating countries

19 with respect to the regime, and countries that are

20 not members of the regime.

21 (C) Countries that are risks for diverting

22 controlled items to controlled countries, end uses,

23 or end users.
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•HR 3937 RH

1 (D) Members of the regime that have not, in

2 the judgment of the Secretary, implemented the

3 objectives set forth in subsection (d).

4 (E) The extent to which the regime and

5 each of its members have adopted and are imple6 menting uniform licensing policies.

7 (F) The extent to which the licensing policy

8 of the regime and each of its members adequately

9 prevents the export licensing decisions of one

10 member of the regime from rendering ineffective

11 the denial of license applications by another

12 member.

13 (3) COMMENTS.—Before beginning each evalua14 tion under this subsection, the Secretary shall request

15 comments from the public and the export advisory

16 committees appointed under section 104(f) regarding

17 the effectiveness of each export control regime. The

18 Secretary shall give the public at least 30 days to

19 provide comments under this paragraph.

20 (i) FOREIGN AVAILABILITY.—

21 (1) FOREIGN AVAILABILITY TO CONTROLLED

22 COUNTRIES.—

23 (A) IN GENERAL.—The Secretary, in con24 sultation with the Secretary of Defense, other ap25 propriate Government departments and agencies,
38

•HR 3937 RH

1 and appropriate export advisory committees ap2 pointed under section 104(f), shall review, on a

3 continuing basis, the availability of controlled

4 items to controlled countries from sources outside

5 the United States, including countries that par6 ticipate with the United States in export control

7 regimes.

8 (B) ITEMS CONTROLLED BY COCOM.—(i) In

9 any case in which the Secretary determines

10 under paragraph (3), with the concur11 rence of the Secretary of Defense, and

12 in accordance with procedures and criteria

13 which the Secretary shall establish by regulation,

14 that any item controlled for export pursuant to

15 the agreement of COCOM is available in factƒ,

16 or will be available in fact within 2 years in the

17 future,≈ to controlled countries from sources out18 side the United States in sufficient quantity and

19 of comparable quality so that the requirement of

20 a validated license for the export of such item is

21 ƒor would be ineffective≈ ineffective in

22 achieving the purposes of this section—

23 (I) the President shall propose to

24 COCOM that export controls on such item

25 be eliminated, or
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•HR 3937 RH

1 (II) if the President determines that

2 the absence of export controls on the item

3 would prove detrimental to the national se4 curity of the United States, the President

5 shall actively pursue negotiations with the

6 governments of the appropriate foreign

7 countries for the purpose of eliminating

8 such availability.

9 No later than the commencement of such negotia10 tions, the President shall notify in writing the

11 Committee on Banking, Housing, and Urban Af12 fairs and the Committee on Armed

13 Services of the Senate and the Committee on

14 Foreign Affairs and the Committee on

15 Armed Services of the House of Representa16 tives that the President has begun such negotia17 tions and why the President believes it is impor18 tant to the national security that export controls

19 on the item involved be maintained.

20 (ii) If, within 6 months after the President’s

21 determination under clause (i)(II) that export

22 controls be maintained notwithstanding foreign

23 availability, the foreign availability has not been

24 eliminated, the Secretary may not, after the end

25 of that 6-month period, require a validated li-
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•HR 3937 RH

1 cense for the export of the item involved. The

2 President may extend the 6-month period for an

3 additional period of 12 months if the President

4 certifies to the Congress that the negotiations in5 volved are progressing and that the absence of

6 the export controls involved would prove det7 rimental to the national security of the United

8 States.

9 (C) ITEMS CONTROLLED BY OTHER RE10 GIMES.—(i) In any case in which the Secretary

11 determines under paragraph (3), with the

12 concurrence of the Secretary of De13 fense, and in accordance with procedures and

14 criteria which the Secretary shall establish by

15 regulation, that any item controlled for export

16 pursuant to an export control regime other than

17 COCOM is available in factƒ, or will be avail18 able in fact within 2 years in the future,≈ to

19 controlled countries from sources outside the

20 United States in sufficient quantity and of com21 parable quality so that the requirement of a vali22 dated license for the export of such item is ƒor

23 would be ineffective≈ ineffective in achieving

24 the purposes of this section, the President shall

25 actively pursue negotiations with the govern-
41

•HR 3937 RH

1 ments of the appropriate foreign countries for the

2 purpose of eliminating such availability. No

3 later than the commencement of such negotia4 tions, the President shall notify in writing the

5 Committee on Banking, Housing, and Urban Af6 fairs and the Committee on Armed

7 Services of the Senate and the Committee on

8 Foreign Affairs and the Committee on

9 Armed Services of the House of Representa10 tives that the President has begun such negotia11 tions, indicating whether the President believes it

12 is important that export controls on the item in13 volved be maintained to avoid a significant risk

14 to the national security interests of the United

15 States.

16 (ii) If, within 120 days after a determina17 tion of foreign availability described in clause (i)

18 is made, the foreign person or persons that are

19 ƒor will be≈ the source of such foreign availabil20 ity have not taken the steps necessary to elimi21 nate such availability, the President shall pro22 pose to the export control regime controlling the

23 commodities or technology that are the subject of

24 the foreign availability determination—

25 (I) that such controls be eliminated, or
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•HR 3937 RH

1 (II) that the members of the regime im2 pose all of the sanctions described in clause

3 (iii) on such foreign person or persons.

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

5 to be imposed on a foreign person or persons are

6 the following:

7 (I) A prohibition on the export to such

8 person or persons of all items controlled by

9 such export control regime.

10 (II) A prohibition on the import of all

11 goods that are produced by such person or

12 persons.

13 (III) A prohibition on procurement by

14 such governments of any services, commod15 ities, technology, or other products from or

16 produced by such person or persons.

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

18 under clause (ii)(II) regarding sanctions is made

19 to an export control regime, such regime has not

20 agreed to such proposal, the President shall ei21 ther propose to such regime that the export con22 trols on the commodities or technology that are

23 the subject of the foreign availability determina24 tion be eliminated, or report to the Congress that

25 the President has determined that elimination of
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•HR 3937 RH

1 the controls would create a significant risk to the

2 national security interests of the United States.

3 Such report shall include the basis for such de4 termination.

5 (2) NOTICE OF ALL FOREIGN AVAILABILITY AS6 SESSMENTS.—Whenever the Secretary undertakes a

7 foreign availability assessment under this subsection,

8 the Secretary shall publish notice of such assessment

9 in the Federal Register.

10 (3) PROCEDURES FOR MAKING DETERMINA11 TIONS.—

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

13 make a foreign availability determination under

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

15 upon the certification of an export advisory com16 mittee appointed under section 104(f) with re17 spect to the commodities or technology concern18 ing which the certification is made, or upon re19 ceipt of an allegation from an export license ap20 plicant that such availability exists. ƒIn making

21 any such determination, the Secretary shall ac22 cept the representations of applicants made in

23 writing and supported by reasonable evidence,

24 unless such representations are contradicted by

25 reliable evidence, including scientific or physical
44

•HR 3937 RH

1 examination, expert opinion based upon ade2 quate factual information, or intelligence infor3 mation.≈

4 (ii) In making determinations of foreign

5 availability, the Secretary may consider such

6 factors as cost, reliability, the availability and

7 reliability of spare parts and the cost and qual8 ity thereof, maintenance programs, durability,

9 quality of end products produced by the item

10 subject to the determination, and scale of produc11 tion.

12 (iii) For purposes of this subparagraph, the

13 term ‘‘evidence’’ may include such items as for14 eign manufacturers’ catalogues, brochures, oper15 ations or maintenance manuals, articles from

16 reputable trade publications, photographs, and

17 depositions based upon eyewitness accounts.

18 (B) CERTIFICATIONS BY EXPORT ADVISORY

19 COMMITTEES.—At the same time as an export

20 advisory committee submits a certification to the

21 Secretary under subparagraph (A)(i), the com22 mittee shall submit the certification to the Con23 gress. The Secretary shall investigate the foreign

24 availability so certified and, not later than 90

25 days after the certification is made, shall submit
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•HR 3937 RH

1 a report to the export advisory committee and

2 the Congress stating that—

3 (i) the foreign availability does exist,

4 and the applicable steps are being taken

5 under paragraph (1); or

6 (ii) the foreign availability does not

7 exist.

8 To the extent necessary, the report may be sub9 mitted on a classified basis.

10 (C) ALLEGATIONS BY EXPORT LICENSE AP11 PLICANTS.—Within 4 months after receiving an

12 allegation described in subparagraph (A)(i) from

13 an export license applicant, the Secretary shall

14 determine whether the foreign availability exists,

15 and shall so notify the applicant. If the Sec16 retary has determined that the foreign availabil17 ity exists, the Secretary shall, upon making such

18 determination, submit the determination for re19 view to other departments and agencies as the

20 Secretary considers appropriate. ƒThe Sec21 retary’s determination of foreign availability

22 shall not require the concurrence or approval of

23 any such department or agency.≈ Not later than

24 30 days after the Secretary makes the determina25 tion, the Secretary shall respond in writing to
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•HR 3937 RH

1 the applicant and submit for publication in the

2 Federal Register, that—

3 (i) the foreign availability does exist,

4 and the applicable steps are being taken

5 under paragraph (1); or

6 (ii) the foreign availability does not

7 exist.

8 (D) ROLE OF SECRETARY OF DE9 FENSE.—All determinations of the Sec10 retary under this subsection of

11 whether foreign availability exists

12 shall be made with the concurrence

13 of the Secretary of Defense.

14 (4) SHARING OF INFORMATION.—Each de15 partment or agency of the United States, includ16 ing any intelligence agency, and all contractors

17 with any such department or agency, shall, upon

18 the request of the Secretary and consistent with

19 the protection of intelligence sources and methods

20 as determined by the Director of Central Intel21 ligence, furnish information to the Department

22 of Commerce concerning foreign availability of

23 items subject to export controls under this sec24 tion, including allowing access to any informa-
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•HR 3937 RH

1 tion from a laboratory or other facility within

2 such department or agency.

3 (5) CONGRESSIONAL NOTIFICATIONS.—The Sec4 retary shall annually notify the Committee on For5 eign Affairs of the House of Representatives, and the

6 Committee on Banking, Housing, and Urban Affairs

7 of the Senate, of all allegations of foreign availability

8 received from export license applicants under para9 graph (3), and the actions the Secretary has taken

10 pursuant to such allegations.

11 (j) REVIEW OF CONTROLLED ITEMS.—

12 (1) IN GENERAL.—The Secretary shall review all

13 commodities and technology on the security control

14 list maintained under subsection (b) at least annu15 ally. At the conclusion of each review, the Secretary,

16 with the concurrence of the Secretaries

17 of Defense and Energy, shall justify the inclu18 sion of each item on the security control list, remove

19 items from the security control list, change the speci20 fications of items on the list, or add items to the list,

21 in order to meet the requirements of subsection (a)(1).

22 The data developed from such reviews shall be used in

23 formulating United States proposals for revision of

24 multilateral controls in the applicable export control

25 regimes.
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•HR 3937 RH

1 (2) CONSIDERATIONS.—In conducting the an2 nual review, the Secretary shall—

3 (A) consult with the appropriate export ad4 visory committees appointed under section 104(f)

5 and consider recommendations of such commit6 tees with respect to proposed changes in the secu7 rity control list;

8 (B) consider the results of foreign availabil9 ity determinations made under subsection (i);

10 (C) consider comments received pursuant to

11 the notice of review provided under paragraph

12 (3)(B); and

13 (D) consult with other appropriate depart14 ments or agencies.

15 (3) PROCEDURES.—

16 (A) DURATION OF REVIEW.—The annual re17 view required under paragraph (1) may not ex18 tend beyond 180 days after such review is begun.

19 (B) NOTICE OF REVIEW.—Before beginning

20 each annual review, the Secretary shall publish

21 a notice of that review in the Federal Register

22 and shall provide a 30-day period for comments

23 and submission of data, with or without oral

24 presentation, by interested Government agencies,

25 exporters, and other interested parties.
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•HR 3937 RH

1 (C) REVISIONS.—The Secretary, with the

2 concurrence of the Secretaries of De3 fense and Energy, shall make a determina4 tion of any revisions in the security control list

5 not later than 30 days after the end of the review

6 period. In making such determination, the Sec7 retary shall consult with the appropriate depart8 ments or agencies. ƒThe concurrence or approval

9 of any other department or agency shall not be

10 required before any such revision is made.≈

11 (D) PROPOSALS TO EXPORT CONTROL RE12 GIMES.—If a revision of the security control list

13 under this paragraph affects the items controlled

14 by an export control regime, the Secretary of

15 State shall propose such revision to that regime.

16 Such revision shall become effective only to the

17 extent such revision is agreed to by the export

18 control regime.

19 (E) PUBLICATION OF REVISIONS.—The Sec20 retary shall publish in the Federal Register any

21 revisions in the list, with an explanation of the

22 reasons for the revisions.

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

24 assistance of the export advisory committees appointed

25 under section 104(f), methodologies and procedures for in-
50

•HR 3937 RH

1 dexing items on the security control list where performance

2 capabilities are relevant and measurable. Such methodolo3 gies and procedures shall provide for increases in the per4 formance levels of commodities and technology on the secu5 rity control list and shall provide for the technical specifica6 tions below which no authority or permission to export is

7 required as compared to the most technologically advanced

8 commercially available version of the same or equivalent

9 commodities or technology. Such methodologies and proce10 dures shall be published in the Federal Register and used

11 in the annual review of the security control list under sub12 section (j).

13 (l) REVIEW OF EXPORT CONTROLS ON COMPUTER

14 EQUIPMENT AND TECHNOLOGY.—

15 (1) IN GENERAL.—In order to ensure that re16 quirements of validated licenses are periodically re17 moved as computer equipment, computer communica18 tions and networking equipment, computer software,

19 and related technology, that are subject to such re20 quirements become obsolete with respect to the specific

21 objectives of the export controls requiring such li22 censes, the Secretary shall conduct periodic reviews of

23 such controls. The Secretary shall complete such a re24 view not later than 6 months after the date of the en-
51

•HR 3937 RH

1 actment of this Act, and thereafter as part of the re2 views conducted under subsection (j).

3 (2) REVIEW ELEMENTS.—In conducting each re4 view under paragraph (1), the Secretary shall do the

5 following with respect to the export controls described

6 in paragraph (1):

7 (A) OBJECTIVES OF CONTROLS.—The Sec8 retary shall identify the specific objectives of the

9 export controls, as part of a comprehensive strat10 egy to prevent the proliferation of weapons of

11 mass destruction, for the 12-month period follow12 ing completion of the review, for each country or

13 group of countries for which a validated license

14 is required. When an objective of an export con15 trol is to defer the development of a specific ca16 pability in such country or group of countries,

17 the Secretary shall specify for what period of

18 time the controls are expected to defer such capa19 bility.

20 (B) QUANTITY AND PERFORMANCE.—The

21 Secretary shall estimate, for the 12-month period

22 described in subparagraph (A), the quantity and

23 performance (measured in Composite Theoretical

24 Performance or other relevant performance

25 metrics) of computer systems that must be ob-
52

•HR 3937 RH

1 tained by each country or group of countries for

2 which a validated license is required in order to

3 defeat the objectives of the export controls.

4 (C) AVAILABILITY TO CONTROLLED DES5 TINATIONS.—The Secretary shall evaluate the ef6 fectiveness of the export controls in achieving

7 their specific objectives, including explicit de8 scriptions of the availability from sources outside

9 the United States, during the 12-month period

10 described in subparagraph (A), to controlled

11 countries of computer equipment, computer com12 munications and networking equipment, com13 puter software, and related technology on which

14 the export controls are in effect.

15 (D) ECONOMIC IMPACT.—The Secretary

16 shall evaluate the economic impact, during the

17 12-month period described in subparagraph (A),

18 of the export controls on exporting companies,

19 including estimates of lost sales, loss in market

20 share, and administrative overhead.

21 (3) INCREASE IN THRESHOLDS.—

22 (A) INCREASES.—After completing each re23 view under this subsection, the Secretary shall,

24 ƒafter consultation with appropriate depart25 ments or agencies≈ with the concurrence
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•HR 3937 RH

1 of the Secretaries of Defense and En2 ergy, increase, if warranted by the findings of

3 the review, the following export control thresh4 olds, consistent with the obligations of the United

5 States under export control regimes:

6 (i) The performance levels at which

7 computer systems are eligible for delivery

8 under a distribution license or other license

9 authorizing multiple exports.

10 (ii) The performance levels defining a

11 ‘‘supercomputer’’.

12 (iii) The performance levels at which

13 an individual validated license is required

14 for the export to a controlled country of

15 computer systems and peripherals, software,

16 parts, and communications equipment nor17 mally supplied with such computer systems.

18 In any recommendation for or publication of

19 such increase, the Secretary shall include the spe20 cific rationale for the increase.

21 (B) PROPOSALS TO MULTILATERAL RE22 GIMES.—The Secretary of State shall, within 30

23 days after a determination by the Secretary to

24 increase thresholds, propose to the other members

25 of the applicable export control regime the elimi-
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•HR 3937 RH

1 nation of the applicable controls on the items

2 with respect to which such determination is

3 made, in accordance with the procedures of the

4 regime, and publish a notice of such proposal in

5 the Federal Register.

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

7 the Congress, and to any export advisory committee

8 appointed under section 104(f) with respect to com9 puter systems, a report on the findings of each review

10 conducted under this subsection, addressing each re11 quirement set forth in paragraph (2).

12 (5) HEARINGS.—The Secretary shall conduct

13 public hearings not less than once each year in order

14 to solicit information from all interested parties on

15 all matters to be addressed in each review conducted

16 under this subsection.

17 (6) REMOVAL OF CONTROLS ON MASS-MARKET

18 COMPUTER EQUIPMENT.—

19 (A) MASS-MARKET COMPUTER EQUIPMENT

20 DEFINED.—For purposes of this paragraph, the

21 term ‘‘mass-market computer equipment’’ means

22 any computer system, computer networking

23 equipment, peripheral to a computer system,

24 part or subassembly of a computer system, or

25 combination thereof, on which export controls are
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1 in effect under this section, and which will have

2 been installed for end use outside the United

3 States in a quantity exceeding 100,000 units

4 over a 12-month period, as determined under

5 subparagraph (B).

6 (B) ANTICIPATORY REVIEW OF MASS-MAR7 KET COMPUTER EQUIPMENT.—Not later than—

8 (i) 6 months after the date of the enact9 ment of this Act, and

10 (ii) the end of each 1-year period oc11 curring thereafter,

12 the Secretary shall, in consultation with the

13 Computer Systems Technical Advisory Commit14 tee (or successor export advisory committee), in15 dustry groups, and computer equipment produc16 ers, identify those items described in subpara17 graph (A) (including computer systems differen18 tiated in terms of Composite Theoretical Per19 formance) that will be installed for end use out20 side the United States in a quantity exceeding

21 100,000 units during the 12-month period begin22 ning on the applicable date described in clause

23 (i) or (ii). For purposes of this paragraph, esti24 mates of numbers of items that will be installed
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1 shall be based on reliable estimates provided by

2 producers of such items.

3 (C) ACTION BY THE SECRETARY.—Not later

4 than 30 days after an item is determined by the

5 Secretary under subparagraph (B) to be mass6 market computer equipment, the Secretary of

7 State shall propose to the export control regime

8 controlling the equipment the eliminaton of con9 trols on such equipment in accordance with the

10 procedures of the appropriate regime and shall

11 publish a notice of such proposal in the Federal

12 Register.

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

14 of applicable multilateral export control regimes, an appli15 cation for a license for the export to a controlled country

16 of any commodity on which export controls are in effect

17 under this section, without regard to the technical specifica18 tions of the commodity, for the purpose of demonstration

19 or exhibition at a trade show shall carry a presumption

20 of approval if—

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

22 and maintains effective control of, the commodity,

23 and complies with any safeguard requirement im24 posed by the Secretary, during the entire period in

25 which the commodity is in the controlled country; and
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1 (2) the exporter removes the commodity from the

2 controlled country within a reasonable period of time

3 after the conclusion of the trade show, as defined in

4 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, shall

11 enter into appropriate arrangements with the

12 National Academy of Sciences and the National

13 Academy of Engineering (hereafter in this sub14 section referred to as the ‘‘Academies’’) to con15 duct a comprehensive study on the extent to

16 which exports of computers can be effectively

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

19 (B) REQUIREMENT OF STUDY.—Recognizing

20 the need to enhance the competitiveness of the

21 United States computer industry while prevent22 ing sensitive technology from being used to de23 velop weapons of mass destruction by controlled

24 countries, the study shall—
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1 (i) examine the trends of the computer

2 industry, including those toward new and

3 more powerful computer systems based upon

4 ‘‘Parallel Computing’’ and ‘‘Virtual Par5 allel Processing’’, and their effect on the ex6 tent to which exports of computer systems

7 can be effectively controlled, with respect to

8 the factors described in clause (ii);

9 (ii) examine the factors that make it

10 increasingly difficult to control the export of

11 computers, including the size and

12 expandability of many modern computer

13 systems and the availability of such com14 puter systems from foreign sources; and

15 (iii) the effect of export controls on the

16 competitiveness of the United States com17 puter industry.

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

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

20 Advisory Panel of not more than 12 members who

21 shall be selected from among individuals who, by vir22 tue of their experience and expertise, are knowledge23 able in relevant scientific, business, legal, or adminis24 trative matters. No individual may serve as a mem25 ber who is an elected or appointed official or em-
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1 ployee in the executive, legislative, or judicial branch

2 of any government. In selecting members of the Advi3 sory Panel, the Academies shall seek suggestions from

4 the President, the Congress, and representatives of in5 dustry and the academic community.

6 (3) EXECUTIVE BRANCH COOPERATION.—The

7 Secretary, the Secretary of Defense, the Secretary of

8 State, the Director of the Central Intelligence Agency,

9 and the head of any department or agency that exer10 cises authority under this title—

11 (A) shall furnish to the Academies, upon re12 quest and under appropriate safeguards, classi13 fied or unclassified information which the Acad14 emies determine to be necessary for the purposes

15 of conducting the study required by this sub16 section; and

17 (B) shall work with the Academies on such

18 problems related to the study as the Academies

19 consider necessary.

20 (4) REPORT.—Under the direction of the Advi21 sory Panel, the Academies shall prepare and submit

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

23 months after entering into the arrangements referred

24 to in paragraph (1), a report which contains a de25 tailed statement of findings and conclusions of the
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1 Academies from the study conducted under paragraph

2 (1), together with their recommendations for the com3 plete removal of controls from computers or specifying

4 the level of technology to which controls on computers

5 should be reduced.

6 SEC. 106. EMERGENCY CONTROLS.

7 (a) AUTHORITY.—

8 (1) IN GENERAL.—In order to carry out the pol9 icy set forth in paragraphs (6) and (9) of section 103,

10 the President may, in accordance with the provisions

11 of this section, unilaterally prohibit or curtail the ex12 port of any commodity or technology subject to the ju13 risdiction of the United States or exported by any

14 person subject to the jurisdiction of the United States.

15 (2) EXERCISE OF AUTHORITY.—

16 (A) IN GENERAL.—The authority con17 tained in this section shall be exercised by the

18 Secretary, in consultation with the Secretary of

19 State, the Secretary of Defense, and such other

20 departments and agencies as the President con21 siders appropriate.

22 (B) NATIONAL SECURITY ITEMS.—

23 The Secretaries of Defense and En24 ergy and the heads of other appro25 priate departments and agencies
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1 shall identify commodities and tech2 nology, the export of which would

3 prove detrimental to the national se4 curity of the United States, for con5 trol under this section. If the Sec6 retary and the Secretary of Defense

7 are unable to concur on such items,

8 as determined by the Secretary, the

9 Secretary of Defense may, within 20

10 days after receiving notification of

11 the Secretary’s determination, refer

12 the matter to the President for reso13 lution. The Secretary of Defense shall

14 notify the Secretary of any such re15 ferral. The President shall, not later

16 than 20 days after such referral, no17 tify the Secretary of his determina18 tion with respect to the control of

19 such items under this section. Failure

20 of the Secretary of Defense to notify

21 the President or the Secretary, or

22 failure of the President to notify the

23 Secretary, in accordance with this

24 paragraph, shall be deemed by the

25 Secretary to constitute concurrence
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1 in the implementation of the actions

2 proposed by the Secretary regarding

3 the control of such items under this

4 section.

5 (3) EXPIRATION OF AUTHORITY.—

6 (A) IN GENERAL.—Any controls imposed

7 under this section shall expire 6 months after

8 they are imposed, unless they are terminated

9 earlier by the President or unless they are ex10 tended under this section, except that such con11 trols may be adopted as multilateral controls

12 under section 105 or included in an embargo de13 scribed in subsection (f)(1) that is imposed by

14 the President under the International Emergency

15 Economic Powers Act, the Trading with the

16 Enemy Act, or other provision of law other than

17 this title. Any extension or subsequent extension

18 of the controls under this section shall be for a

19 period of not more than 1 year each. The con20 trols shall expire at the end of each such exten21 sion unless they are terminated earlier by the

22 President or unless they are further extended

23 under this section, except that such controls may

24 be adopted as multilateral controls under section
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1 105 or included in an embargo described in the

2 first sentence of this subparagraph.

3 (B) EXCEPTION FOR MULTILATERAL AGREE4 MENTS.—Subparagraph (A) shall not apply to

5 controls imposed by the President in order to ful6 fill obligations of the United States under resolu7 tions of the United Nations or under treaties to

8 which the United States is a party. If such a res9 olution or treaty ceases to be in effect, controls

10 imposed by the President pursuant to such reso11 lution or treaty shall immediately cease to be in

12 effect.

13 (4) CRITERIA.—The President may impose con14 trols under this section only if the President—

15 (A) determines that the controls are ƒessen16 tial to≈ necessary to further signifi17 cantly the national security or foreign policy of

18 the United States or its allies, including the pre19 vention of acts of international terrorism;

20 ƒ(B) determines that no other alternative

21 means can achieve the national security or for22 eign policy objectives of the United States within

23 a reasonable period of time, including all other

24 possible sanctions;
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1 ƒ(C)≈ (B) determines that the controls can

2 reasonably be expected to achieve their intended

3 objectives after having taken into consideration

4 other factors, including the availability from one

5 or more countries of comparable commodities

6 and technology to those on which the controls are

7 to be imposed;

8 ƒ(D)≈ (C) determines that the United

9 States has the ability to enforce all aspects of the

10 proposed controls effectively;

11 ƒ(E)≈ (D) determines that the effect of the

12 proposed controls on the export performance of

13 the United States, the competitive position of the

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

15 economic well-being of individual United States

16 companies and their employees and communities

17 does not exceed the benefits to the foreign policy

18 or national security interests of the United

19 States; and

20 ƒ(F)≈ (E) identifies those commodities and

21 technology to be controlled, determines that they

22 must be controlled in order to achieve the in23 tended purpose of the controls, and describes the

24 reasons for selecting such items.
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1 (5) NEGOTIATIONS.—The President shall com2 mence, through the Secretary of State, within 10 days

3 after the imposition of controls under this section, ne4 gotiations with other countries to adopt the controls

5 so that such controls may be imposed under section

6 105, unless such controls are imposed under para7 graph (3)(B).

8 (b) CONSULTATION WITH INDUSTRY.—The Secretary

9 in every possible instance shall consult with and seek advice

10 from affected United States industries and export advisory

11 committees appointed under section 104(f) before the impo12 sition, expansion, or extension of any export control under

13 this section.

14 (c) CONSULTATION WITH OTHER COUNTRIES.—When

15 expanding or extending export controls under this section

16 (unless such action is taken under subsection (a)(3)(B)), the

17 Secretary of State, in consultation with the Secretary, shall,

18 at the earliest appropriate opportunity, consult with the

19 countries with which the United States maintains export

20 controls cooperatively, and with other countries, as appro21 priate, to advise them of the reasons for the action and to

22 urge them to adopt similar controls, so that the controls

23 may be imposed under section 105.

24 (d) CONSULTATIONS WITH THE CONGRESS.—
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1 (1) CONSULTATIONS.—The Secretary may im2 pose, expand, or extend export controls under this sec3 tion only after consultation with the Congress, includ4 ing the Committee on Foreign Affairs of the House of

5 Representatives and the Committee on Banking,

6 Housing, and Urban Affairs of the Senate.

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

8 or expand controls under subsection (a) until the Sec9 retary has submitted to the Congress a report—

10 (A) addressing each of the criteria set forth

11 in subparagraphs (A) through ƒ(F)≈ (E) of sub12 section (a)(4);

13 (B) specifying the purpose of the controls;

14 (C) describing the nature, the subjects, and

15 the results of, or plans for, the consultation with

16 industry under subsection (b) and with other

17 countries under subsections (a)(5) and (c);

18 (D) specifying the nature and results of any

19 alternative means attempted to achieve the objec20 tives of the controls, or the reasons for imposing

21 or expanding the controls without attempting

22 any such alternative means; and

23 (E) describing the availability from other

24 countries of items comparable to the items sub25 ject to the controls, and describing the nature
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1 and results of the efforts made to secure the co2 operation of foreign governments in controlling

3 the foreign availability of such comparable com4 modities or technology.

5 Such report shall also indicate how such controls will

6 further significantly the policies of the United States

7 as set forth in section 103 or will further its declared

8 international obligations.

9 (3) SUBMISSION OF REPORT TO GAO.—Each re10 port required by paragraph (2) shall, at the same

11 time it is submitted to the Congress, also be submitted

12 to the General Accounting Office for the purpose of

13 assessing the report’s full compliance with the purpose

14 of this subsection.

15 (e) SEEKING MULTILATERAL SUPPORT FOR UNILAT16 ERAL CONTROLS.—The Secretary and the Secretary of

17 State shall have a continuing duty to seek support, by other

18 countries and by multilateral export control regimes, for all

19 controls imposed under this section.

20 (f) PROCEDURES AND LIMITATIONS ON EMERGENCY

21 CONTROLS.—

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

23 under subsection (a)(3)(A) shall include the prohibi24 tion of all exports to and imports from the country

25 against which the controls under this section were im-
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1 posed, except that such an embargo need not include

2 a prohibition on exports of items described in section

3 114(k).

4 (2) CESSATION OF EMERGENCY CONTROLS.—

5 (A) IN GENERAL.—Controls imposed under

6 this section on commodities or technology shall

7 cease to be in effect immediately upon—

8 (i) the imposition of multilateral con9 trols under section 105 on the same com10 modities and technology to the country or

11 end user, or for the end use, with respect to

12 which the controls were imposed under this

13 section; or

14 (ii) the imposition, under the Inter15 national Emergency Economic Powers Act,

16 the Trading with the Enemy Act, or other

17 provision of law, of an embargo described in

18 paragraph (1).

19 (B) CONVERSION TO MULTILATERAL AGREE20 MENTS.—If the President imposes controls on

21 commodities or technology to a country or end

22 user, or for an end use, under this section in

23 order to fulfill obligations of the United States

24 under resolutions of the United Nations or under

25 a treaty to which the United States is a party,
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1 any controls imposed prior thereto under this

2 section on the same commodities or technology to

3 the same country or end user, or for the same

4 end use, shall immediately cease to be in effect.

5 (3) LIMITATIONS ON REIMPOSITION.—Controls

6 which have ceased to be in effect under subsection

7 (a)(3), and which have not been extended under sub8 section (g), may not be reimposed by the President

9 under subsection (a) for a period of 6 months begin10 ning on the date on which the original controls ex11 pire.

12 (g) EXTENSION OF EMERGENCY CONTROLS.—

13 (1) REPORT.—If the President decides to extend

14 controls imposed under subsection (a), which are due

15 to expire under subsection (a)(3), the President shall,

16 not later than 60 calendar days before the expiration

17 of such controls, transmit to the Congress a report on

18 the proposed extension, setting forth the reasons for

19 the proposed extension in detail and specifying the

20 period of time, which may not exceed 1 year, for

21 which the controls are proposed to be extended. In

22 particular, such report shall—

23 (A) contain determinations by the Presi24 dent—
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1 (i) that the controls continue to be es2 sential to the national security or foreign

3 policy of the United States;

4 ƒ(ii) that no other alternative means

5 can achieve the national security or foreign

6 policy objectives of the United States within

7 a reasonable period of time, as described in

8 subsection (a)(4)(B);

9 ƒ(iii)≈ (ii) that the United States has

10 demonstrated the ability to enforce all as11 pects of the controls effectively; and

12 ƒ(iv)≈ (iii) that the effect of the con13 trols on those factors described in subsection

14 (a)(4)ƒ(E)≈(D) has not exceeded the bene15 fits to the foreign policy or national secu16 rity interests of the United States;

17 (B) identify those commodities and tech18 nology to be controlled, specify that they must be

19 controlled in order to achieve the intended pur20 pose of the controls, and describe the reasons for

21 the selection of such items;

22 (C) specify the reasons why negotiations re23 quired under subsection (a)(5) or (c) failed to re24 sult in the adoption of the controls under section
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1 105, and the prospects for the multilateral adop2 tion of such controls;

3 (D) specify the reasons why an embargo de4 scribed in paragraph (1) is not presently justi5 fied to achieve the national security or foreign

6 policy objectives of the United States;

7 (E) include an assessment by the Secretary

8 of the economic consequences of the controls dur9 ing the preceding 4 months (in the case of the

10 first extension of the controls under this section)

11 or during the preceding 10 months (in the case

12 of any subsequent extension of the controls under

13 this section), including estimates of any lost

14 United States exports and jobs;

15 (F) include an assessment by the Secretary

16 of State of the objectives of the controls and the

17 extent to which the controls have attained those

18 objectives during the preceding 4 months (in the

19 case of the first extension of the controls under

20 this section) or during the preceding 10 months

21 (in the case of any subsequent extension of the

22 controls under this section); and

23 (G) include an assessment by the Secretary

24 of Defense of the impact the controls have had on

25 the national security of the United States in the
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1 preceding 4 months (in the case of the first ex2 tension of the controls under this section) or in

3 the preceding 10 months (in the case of any sub4 sequent extension of the controls under this sec5 tion).

6 (2) CONSIDERATION OF EXTENSION.—The con7 trols shall remain in effect unless the Congress, within

8 60 calendar days after its receipt of the report under

9 paragraph (1), enacts a joint resolution pursuant to

10 paragraph (3) disapproving the extension of the con11 trols. Any controls remaining in effect shall continue

12 for the period specified in the report or until termi13 nated by the President, whichever occurs first, but in

14 no case longer than 1 year after the date on which the

15 controls would otherwise expire under subsection

16 (a)(3), unless the Congress by law terminates the con17 trols. If the Congress, within 60 calendar days after

18 the date of its receipt of such report, enacts a joint

19 resolution disapproving the extension of such controls,

20 then such controls shall cease to be effective upon the

21 expiration of that 60-day period.

22 (3) JOINT RESOLUTIONS.—

23 (A) DEFINITION.—For purposes of this

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

25 only a joint resolution the matter after the re-
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1 solving clause of which is as follows: ‘‘That, pur2 suant to section 106(g) of the Export Act of

3 1994, the President may not extend emergency

4 controls as specified in the report submitted to

5 the Congress on llllllllll.’’, with

6 the blank space being filled with the appropriate

7 date.

8 (B) INTRODUCTION.—On the day on which

9 a report is submitted to the House of Representa10 tives and the Senate under paragraph (1), a

11 joint resolution with respect to the extension of

12 controls specified in such report shall be intro13 duced (by request) in the House of Representa14 tives by the chairman of the Committee on For15 eign Affairs, for the chairman and the ranking

16 minority member of the Committee, or by Mem17 bers of the House designated by the chairman

18 and ranking minority member; and shall be in19 troduced (by request) in the Senate by the major20 ity leader of the Senate, for the majority leader

21 and the minority leader of the Senate, or by

22 Members of the Senate designated by the major23 ity leader and the minority leader of the Senate.

24 If either House of Congress is not in session on

25 the day on which such a report is submitted, the
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1 joint resolution shall be introduced in that

2 House, as provided for in the preceding sentence,

3 on the first day thereafter on which that House

4 is in session.

5 (C) DISCHARGE.—If the Committee of ei6 ther House to which a joint resolution has been

7 referred has not reported the joint resolution by

8 the end of 30 calendar days after its referral, the

9 committee shall be discharged from further con10 sideration of the joint resolution or of any other

11 joint resolution introduced with respect to the

12 same matter.

13 (D) CONSIDERATION.—A joint resolution

14 under this paragraph shall be considered in the

15 Senate in accordance with the provisions of sec16 tion 601(b)(4) of the International Security As17 sistance and Arms Export Control Act of 1976.

18 For the purpose of expediting the consideration

19 and passage of joint resolutions reported or dis20 charged under this paragraph, it shall be in

21 order for the Committee on Rules of the House

22 of Representatives to present for consideration a

23 resolution of the House of Representatives pro24 viding procedures for the immediate consider25 ation of a joint resolution under this paragraph
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1 which may be similar, if applicable, to the proce2 dures set forth in section 601(b)(4) of the Inter3 national Security Assistance and Arms Export

4 Control Act of 1976.

5 (E) DUPLICATIVE RESOLUTIONS.—In the

6 case of a joint resolution described in subpara7 graph (A), if, before the passage by one House of

8 a joint resolution of that House, that House re9 ceives a resolution with respect to the same mat10 ter from the other House, then—

11 (i) the procedure in that House shall be

12 the same as if no joint resolution had been

13 received from the other House; and

14 (ii) the vote on final passage shall be

15 on the joint resolution of the other House.

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

17 upon the expiration of the emergency controls ex18 tended under this subsection, the President determines

19 that a further extension of emergency controls for an

20 additional period of time of not more than 1 year is

21 necessary, paragraphs (1) through (3) shall apply to

22 such further extension.

23 (5) CALCULATION OF TIME PERIODS.—For pur24 poses of calculating calendar days under this sub25 section, there shall be excluded the days on which ei-
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1 ther House of Congress is not in session because of an

2 adjournment of more than 3 days to a day certain or

3 because of an adjournment of the Congress sine die.

4 (h) EFFECT ON OTHER AUTHORITY.—

5 (1) EMBARGO AUTHORITY.—Nothing in this sec6 tion shall be construed to limit the authority of the

7 President to impose an embargo described in sub8 section (f)(1) on exports to, and imports from, a spe9 cific country under the International Emergency Eco10 nomic Powers Act, the Trading with the Enemy Act,

11 or other provision of law (other than this title). In

12 any case in which the President exercises any such

13 authority to impose an embargo, the requirements of

14 this section shall not apply for so long as such embar15 go is in effect.

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

17 Nothing in this section affects the authorities con18 ferred upon the President by section 5(b) of the Trad19 ing with the Enemy Act, which were being exercised

20 with respect to a country on July 1, 1977, as a result

21 of a national emergency declared by the President be22 fore that date, and are being exercised on the date of

23 the enactment of this Act.

24 (B) Nothing in this section affects the authorities

25 conferred upon the President by the International
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1 Economic Powers Act or other provision of law (other

2 than the Export Administration Act of 1979), which

3 were being exercised with respect to a country before

4 the date of the enactment of this Act as a result of

5 a national emergency declared by the President before

6 that date, and are being exercised with respect to such

7 country on such date of enactment.

8 (i) COUNTRIES SUPPORTING INTERNATIONAL TERROR9 ISM.—

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

11 or reexport of commodities or technology described in

12 subparagraph (B) may be made to any country the

13 government of which the Secretary of State has deter14 mined has repeatedly provided support for acts of

15 international terrorism.

16 (B) The commodities or technology referred to in

17 subparagraph (A) are—

18 (i) any commodities or technology the ex19 port of which is controlled under this title pursu20 ant to the Missile Technology Control Regime or

21 the Australia Group, or controlled under this

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

23 Non-Proliferation Act of 1978,
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1 (ii) any commodities or technology de2 scribed in section 105(a)(1)(B) the export of

3 which is controlled under section 105, and

4 (iii) any commodities or technology the ex5 port of which could make a significant contribu6 tion to the military potential of a country de7 scribed in subparagraph (A), including its mili8 tary logistics capability, or could enhance the

9 ability of such country to support acts of inter10 national terrorism,

11 other than commodities or technology that the Presi12 dent determines will be used only for humanitarian

13 purposes. A validated license shall be required for the

14 export under this paragraph of any such commodities

15 or technology that will be used only for humanitarian

16 purposes.

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

18 shall not apply to exports prohibited or restricted

19 under this subsection.

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

21 items described in subparagraph (B)(iii) at least an22 nually. At the conclusion of the review, the Secretary

23 shall justify the inclusion of each item on the list, re24 move items from the list, change the specifications of

25 items on the list, or add items to the list, in order to
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1 ensure that the items on the list meet the requirements

2 of subparagraph (B)(iii).

3 (ii) The procedures set forth in subparagraphs

4 (B), (C), and (E) of section 105(j) shall apply to re5 views under clause (i) of the list of items described in

6 subparagraph (B)(iii) to the same extent as such sub7 paragraphs apply to reviews of the security control

8 list under section 105(j).

9 (2) NOTIFICATION OF CONGRESS OF LICENSES

10 ISSUED.—The Secretary and the Secretary of State

11 shall notify the Committee on Foreign Affairs of the

12 House of Representatives and the Committee on

13 Banking, Housing, and Urban Affairs and the Com14 mittee on Foreign Relations of the Senate at least 30

15 days before issuing any validated license under this

16 title for exports to a country the government of which

17 the Secretary of State has determined has repeatedly

18 provided support for acts of international terrorism.

19 (3) PUBLICATION OF DETERMINATIONS.—Each

20 determination of the Secretary of State under para21 graph (1)(A), and each determination under section

22 6(j)(1)(A) of the Export Administration Act of 1979

23 in effect at the time this title takes effect, shall be pub24 lished in the Federal Register.
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1 (4) RESCISSION OF DETERMINATIONS.—A deter2 mination made by the Secretary of State under para3 graph (1)(A) may not be rescinded unless the Presi4 dent submits to the Speaker of the House of Rep5 resentatives and the chairman of the Committee on

6 Banking, Housing, and Urban Affairs and the chair7 man of the Committee on Foreign Relations of the

8 Senate—

9 (A) before the proposed rescission would

10 take effect, a report certifying that—

11 (i) there has been a fundamental

12 change in the leadership and policies of the

13 government of the country concerned;

14 (ii) that government is not supporting

15 acts of international terrorism; and

16 (iii) that government has provided as17 surances that it will not support acts of

18 international terrorism in the future; or

19 (B) at least 45 days before the proposed re20 scission would take effect, a report justifying the

21 rescission and certifying that—

22 (i) the government concerned has not

23 provided any support for international ter24 rorism during the preceding 6-month pe25 riod; and
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1 (ii) the government concerned has pro2 vided assurances that it will not support

3 acts of international terrorism in the future.

4 (5) WAIVER OF PROHIBITIONS.—The President

5 may waive the prohibitions contained in paragraph

6 (1)(A) with respect to a specific transaction if—

7 (A) the President determines that the trans8 action is essential to the national security inter9 ests of the United States; and

10 (B) not less than 30 days prior to the pro11 posed transaction, the President—

12 (i) consults with the Committee on

13 Foreign Affairs of the House of Representa14 tives and the Committee on Banking, Hous15 ing, and Urban Affairs of the Senate re16 garding the proposed transaction; and

17 (ii) submits to the Speaker of the

18 House of Representatives and the chairman

19 of the Committee on Banking, Housing, and

20 Urban Affairs of the Senate a report con21 taining—

22 (I) the name of any country in23 volved in the proposed transaction, the

24 identity of any recipient of the items

25 to be provided pursuant to the pro-
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1 posed transaction, and the anticipated

2 use of those items;

3 (II) a description of the items in4 volved in the proposed transaction (in5 cluding their market value) and the ac6 tual sale price at each step in the

7 transaction;

8 (III) the reasons why the proposed

9 transaction is essential to the national

10 security interests of the United States

11 and the justification for the proposed

12 transaction;

13 (IV) the date on which the pro14 posed transaction is expected to occur;

15 and

16 (V) the name of every United

17 States Government department, agen18 cy, or other entity involved in the pro19 posed transaction, and every foreign

20 government involved in the proposed

21 transaction.

22 To the extent possible, the information specified in

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

24 unclassified form, with any classified information

25 provided in an addendum to the report.
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1 (6) MULTILATERAL REGIMES.—The Secretary of

2 State shall propose to COCOM, to the Australia

3 Group, to the countries participating in the Missile

4 Technology Control Regime, and to the Nuclear Sup5 pliers Group, that each such group adopt those con6 trols that are imposed by this subsection on exports

7 of commodities or technology subject to control by

8 such group. The Secretary of State shall continue to

9 make such proposals until such export controls are so

10 adopted.

11 (7) EFFECT ON OTHER LAWS.—The provisions of

12 this subsection do not affect any other provision of

13 law to the extent such other provision imposes greater

14 restrictions on exports to any country the government

15 of which the Secretary of State has determined has re16 peatedly provided support for acts of international

17 terrorism than are imposed under this subsection.

18 (j) CRIME CONTROL INSTRUMENTS.—

19 (1) VALIDATED LICENSE REQUIRED.—Crime

20 control and detection instruments and equipment

21 shall be approved for export by the Secretary only

22 pursuant to a validated export license. Paragraphs

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

24 export controls imposed by this subsection.
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1 (2) CONSULTATION WITH SECRETARY OF

2 STATE.—

3 (A) ITEMS ON CONTROL LIST.—Any deter4 mination of the Secretary of what commodities

5 or technology shall be included on the control

6 index as a result of the export restrictions im7 posed by this subsection shall be made after con8 sultation with the Secretary of State.

9 (B) ACTION ON LICENSE APPLICATION.—

10 Any determination of the Secretary to approve

11 or deny an export license application to export

12 crime control or detection instruments or equip13 ment shall be made after consultation with the

14 Secretary of State.

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

16 State does not agree with the Secretary with respect

17 to any determination under paragraph (2), the Sec18 retary of State shall refer the matter to the President

19 for resolution.

20 (4) EXCEPTIONS.—The provisions of this sub21 section shall not apply with respect to exports to

22 countries which are members of the North Atlantic

23 Treaty Organization or to Japan, Australia, or New

24 Zealand, or to such other countries as the President

25 shall designate consistent with the purposes of this
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1 subsection and section 502B of the Foreign Assistance

2 Act of 1961.

3 (k) SPARE PARTS.—At the same time as the President

4 imposes or expands export controls under this section, the

5 President shall determine whether such export controls will

6 apply to replacement parts or parts in commodities subject

7 to such export controls.

8 (l) TREATMENT OF CERTAIN SENSITIVE

9 ITEMS.—

10 (1) FINDINGS.—The Congress makes

11 the following findings:

12 (A) The United States continues

13 to play a leadership role in control14 ling the export of sensitive dual use

15 items and munitions items to dan16 gerous countries.

17 (B) The importance of maintain18 ing this leadership and securing the

19 adherence of friendly nations to ex20 port restrictions similar to those of

21 the United States was demonstrated

22 by the large number of dual use and

23 munitions items Iraq was able to se24 cure from Western exporters prior to

25 Desert Storm.
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1 (C) Besides Iraq, the United

2 States has voiced its concern about

3 Libya, North Korea, Syria, Cuba, and

4 Iran acquiring dual use and muni5 tions items from Western sources, re6 publics of the former Soviet Union,

7 and the Peoples’ Republic of China.

8 (D) Since Desert Storm, the Unit9 ed States has learned that a substan10 tial number of sensitive items Iraq re11 ceived from Western nations were not

12 sent directly, but were reexported

13 from third-party destinations.

14 (E) The threat of third-party reex15 ports of sensitive exports could be ag16 gravated by proposals to send dual

17 use items to friendly nations ‘‘license18 free’’ or under ‘‘substitute’’ licensing

19 schemes that would be less restrictive

20 than individual validated licensing,

21 which requires prior United States

22 consent for any reexport.

23 (F) Eliminating or reducing indi24 vidual validated licensing require25 ments on sensitive dual use and mu-
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1 nitions exports to friendly countries

2 increases the risk that such items will

3 be reexported to rogue countries, in4 cluding Iran, Iraq, Syria, Libya, Cuba,

5 and North Korea.

6 (2) POLICY STATEMENT.—It shall be the

7 policy of the United States to maintain its

8 international leadership in restricting

9 the export of sensitive dual use items and

10 of munitions to rogue countries such as

11 Iran, Iraq, Syria, Libya, Cuba, and North

12 Korea by—

13 (A) maintaining existing unilat14 eral controls whenever necessary to

15 keep sensitive United States dual use

16 items and munitions from being ex17 ported to these countries;

18 (B) encouraging all other coun19 tries producing such items to restrict

20 the export of these items in a similar

21 manner;

22 (C) working with the republics of

23 the former Soviet Union and of the

24 members of COCOM to create a suc25 cessor to COCOM that would prohibit
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1 the export of the most sensitive dual

2 use items and munitions to rogue

3 countries such as Iran, Iraq, Syria,

4 Libya, Cuba, and North Korea; and

5 (D) not reducing existing levels of

6 controls on the export of sensitive

7 dual use items and munitions

8 through the creation of license-free

9 zones and substitute licensing

10 schemes.

11 (3) LICENSING REQUIREMENT.—

12 (A) LIST OF SENSITIVE ITEMS.—Not13 withstanding any other provision of

14 this title, the President, in consulta15 tion with the Secretary and the Sec16 retaries of State, Defense, and Energy

17 and the Director of the Arms Control

18 and Disarmament Agency, shall com19 pile a list of the most sensitive dual

20 use and munitions items the Presi21 dent wishes to deny to the countries

22 set forth in subparagraph (C). This

23 list shall indicate whether the item is

24 being controlled unilaterally or with

25 other countries and shall be pub-
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1 lished in the Federal Register not

2 later than 60 days after the date of

3 the enactment of this Act.

4 (B) INDIVIDUAL VALIDATED LICENSE

5 REQUIREMENT.—The President shall

6 instruct the Secretary to require an

7 individual validated license for the

8 export to any destination of any item

9 on the list compiled under subpara10 graph (A).

11 (C) LIST OF COUNTRIES.—The coun12 tries referred to in subparagraph (A)

13 are Iran, Iraq, Syria, Libya, Cuba, and

14 North Korea.

15 SEC. 107. SHORT SUPPLY CONTROLS.

16 (a) AUTHORITY.—

17 (1) IN GENERAL.—In order to carry out the pol18 icy set forth in section 103(4), the President may pro19 hibit or curtail the export of any commodities subject

20 to the jurisdiction of the United States or exported by

21 any person subject to the jurisdiction of the United

22 States. In curtailing exports to carry out the policy

23 set forth in section 103(4), the President shall allocate

24 a portion of export licenses on the basis of factors

25 other than a prior history of exportation. Such factors
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1 shall include the extent to which a country engages in

2 equitable trade practices with respect to United States

3 commodities and treats the United States equitably in

4 times of short supply.

5 (2) PUBLIC PARTICIPATION.—Upon imposing

6 quantitative restrictions on exports of any commod7 ities to carry out the policy set forth in section

8 103(4), the Secretary shall include in a notice pub9 lished in the Federal Register with respect to such re10 strictions an invitation to all interested parties to

11 submit written comments within 15 days after the

12 date of publication on the impact of such restrictions

13 and the method of licensing used to implement them.

14 (3) LICENSE FEES.—In imposing export controls

15 under this section, the President’s authority shall in16 clude, but not be limited to, the imposition of export

17 license fees.

18 (b) MONITORING.—

19 (1) IN GENERAL.—In order to carry out the pol20 icy set forth in section 103(4), the Secretary shall

21 monitor exports, and contracts for exports, of any

22 commodity when the volume of such exports in rela23 tion to domestic supply contributes, or may contrib24 ute, to an increase in domestic prices or a domestic

25 shortage, and such price increase or shortage has, or
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1 may have, a serious adverse impact on the economy

2 or any sector thereof. Any such monitoring shall com3 mence at a time adequate to assure that the monitor4 ing will result in a data base sufficient to enable poli5 cies to be developed, in accordance with section

6 103(4), to mitigate a short supply situation or serious

7 inflationary price rise or, if export controls are need8 ed, to permit imposition of such controls in a timely

9 manner. Information which the Secretary requires to

10 be furnished in effecting such monitoring shall be con11 fidential, except as provided in paragraph (2).

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

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

14 practicable, be aggregated and included in weekly re15 ports setting forth, with respect to each item mon16 itored, actual and anticipated exports, the destination

17 by country, and the domestic and worldwide price,

18 supply, and demand. Such reports may be made

19 monthly if the Secretary determines that there is in20 sufficient information to justify weekly reports.

21 (3) CONSULTATION WITH SECRETARY OF EN22 ERGY.—The Secretary shall consult with the Sec23 retary of Energy to determine whether monitoring or

24 export controls under this section are warranted with

25 respect to exports of facilities, machinery, or equip-
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1 ment normally and principally used, or intended to

2 be used, in the production, conversion, or transpor3 tation of fuels and energy (except nuclear energy), in4 cluding, but not limited to—

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

6 (B) petroleum refineries, and natural gas

7 processing, liquefaction, and gasification plants;

8 (C) facilities for production of synthetic

9 natural gas or synthetic crude oil;

10 (D) oil and gas pipelines, pumping sta11 tions, and associated equipment; and

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

13 and other fuels.

14 (c) PETITIONS FOR MONITORING OR CONTROLS OF

15 METALLIC MATERIALS.—

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

17 trade association, firm, or certified or recognized

18 union or group of workers, that is representative of

19 an industry or a substantial segment of an industry

20 that processes metallic materials capable of being re21 cycled may transmit a written petition to the Sec22 retary requesting the monitoring of exports or the im23 position of export controls, or both, with respect to

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

25 set forth in section 103(4).
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1 (B) Each petition shall be in such form as the

2 Secretary shall prescribe and shall contain informa3 tion in support of the action requested. The petition

4 shall include any information reasonably available to

5 the petitioner indicating that each of the criteria set

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

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

8 after receipt of any petition described in paragraph

9 (1), the Secretary shall publish a notice in the Fed10 eral Register. The notice shall—

11 (A) include the name of the material that is

12 the subject to the petition;

13 (B) include the schedule B number of the

14 material as set forth in the Statistical Classifica15 tion of Domestic and Foreign Commodities Ex16 ported from the United States;

17 (C) indicate whether the petition is request18 ing that controls or monitoring, or both, be im19 posed with respect to the exportation of such ma20 terial; and

21 (D) provide that interested persons shall

22 have a period of 30 days beginning on the date

23 on which the notice is published to submit to the

24 Secretary written data, views, or arguments,
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1 with or without opportunity for oral presen2 tation, with respect to the matter involved.

3 At the request of the petitioner or any other entity de4 scribed in paragraph (1)(A) with respect to the mate5 rial which is the subject of the petition, or at the re6 quest of any entity representative of producers or ex7 porters of such material, the Secretary shall conduct

8 public hearings with respect to the subject of the peti9 tion, in which case the 30-day period may be ex10 tended to 45 days.

11 (3) DETERMINATION OF MONITORING OR CON12 TROLS.—(A) Within 45 days after the end of the 30-

13 or 45-day period described in paragraph (2), as the

14 case may be, the Secretary shall determine whether to

15 impose monitoring or controls, or both, on the export

16 of the material that is the subject of the petition in

17 order to carry out the policy set forth in section

18 103(4). In making such determination, the Secretary

19 shall determine whether—

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

21 relation to a specific period of time, in exports

22 of such material in relation to domestic supply

23 and demand;
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1 (ii) there has been a significant increase in

2 domestic price of such material or a domestic

3 shortage of such material relative to demand;

4 (iii) exports of such material are as impor5 tant as any other cause of a domestic price in6 crease or shortage relative to demand found

7 under clause (ii);

8 (iv) a domestic price increase or shortage

9 relative to demand found under clause (ii) has

10 significantly adversely affected or may signifi11 cantly adversely affect the national economy or

12 any sector thereof, including a domestic indus13 try; and

14 (v) monitoring or controls, or both, are nec15 essary in order to carry out the policy set forth

16 in section 103(4).

17 (B) The Secretary shall publish in the Federal

18 Register a detailed statement of the reasons for the

19 Secretary’s determination under subparagraph (A) of

20 whether to impose monitoring or controls, or both, in21 cluding the findings of fact in support of that deter22 mination.

23 (4) PUBLICATION OF REGULATIONS.—Within 15

24 days after making a determination under paragraph

25 (3) to impose monitoring or controls on the export of
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1 a material, the Secretary shall publish in the Federal

2 Register proposed regulations with respect to such

3 monitoring or controls. Within 30 days after the pub4 lication of such proposed regulations, and after con5 sidering any public comments on the proposed regula6 tions, the Secretary shall publish and implement final

7 regulations with respect to such monitoring or con8 trols.

9 (5) CONSOLIDATION OF PETITIONS.—For pur10 poses of publishing notices in the Federal Register

11 and scheduling public hearings pursuant to this sub12 section, the Secretary may consolidate petitions, and

13 responses to such petitions, which involve the same or

14 related materials.

15 (6) SUBSEQUENT PETITIONS ON SAME MATE16 RIAL.—If a petition with respect to a particular ma17 terial or group of materials has been considered in ac18 cordance with all the procedures described in this sub19 section, the Secretary may determine, in the absence

20 of significantly changed circumstances, that any other

21 petition with respect to the same material or group

22 of materials which is filed within 6 months after the

23 consideration of the prior petition has been completed

24 does not merit complete consideration under this sub25 section.
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1 (7) PRECEDENCE OF PROCEDURES OVER OTHER

2 REVIEWS.—The procedures and time limits set forth

3 in this subsection with respect to a petition filed

4 under this subsection shall take precedence over any

5 review undertaken at the initiative of the Secretary

6 with respect to the same subject as that of the peti7 tion.

8 (8) TEMPORARY CONTROLS.—The Secretary may

9 impose monitoring or controls, on a temporary basis,

10 on the export of a metallic material after a petition

11 is filed under paragraph (1)(A) with respect to that

12 material but before the Secretary makes a determina13 tion under paragraph (3) with respect to that mate14 rial only if—

15 (A) the failure to take such temporary ac16 tions would result in irreparable harm to the en17 tity filing the petition, or to the national econ18 omy or segment thereof, including a domestic in19 dustry, and

20 (B) the Secretary considers such action to

21 be necessary to carry out the policy set forth in

22 section 103(4).

23 (9) OTHER AUTHORITY NOT AFFECTED.—The

24 authority under this subsection shall not be construed

25 to affect the authority of the Secretary under any
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1 other provision of this title, except that if the Sec2 retary determines, on the Secretary’s own initiative,

3 to impose monitoring or controls, or both, on the ex4 port of metallic materials capable of being recycled,

5 under the authority of this section, the Secretary shall

6 publish the reasons for such action in accordance with

7 paragraph (3)(A) and (B).

8 (10) SUBMISSION AND CONSIDERATION OF ADDI9 TIONAL INFORMATION.—Nothing contained in this

10 subsection shall be construed to preclude submission

11 on a confidential basis to the Secretary of informa12 tion relevant to a decision to impose or remove mon13 itoring or controls under the authority of this title, or

14 to preclude consideration of such information by the

15 Secretary in reaching decisions required under this

16 subsection. The provisions of this paragraph shall not

17 be construed to affect the applicability of section

18 552(b) of title 5, United States Code.

19 (d) DOMESTICALLY PRODUCED CRUDE OIL.—

20 (1) PROHIBITION ON EXPORTS.—Notwithstand21 ing any other provision of this title and notwith22 standing subsection (u) of section 28 of the Mineral

23 Leasing Act of 1920 (30 U.S.C. 185), no domestically

24 produced crude oil transported by pipeline over right25 of-way granted pursuant to section 203 of the Trans-
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1 Alaska Pipeline Authorization Act (43 U.S.C. 1652)

2 may, subject to paragraph (2), be exported from the

3 United States, except any such crude oil which—

4 (A) is exported to an adjacent foreign coun5 try to be refined and consumed therein in an ex6 change that—

7 (i) is for the same quantity of crude oil

8 being exported from that country to the

9 United States; and

10 (ii) results through convenience or in11 creased efficiency of transportation in lower

12 prices for consumers of petroleum products

13 in the United States as described in para14 graph (2)(A)(ii);

15 (B) is temporarily exported for convenience

16 or increased efficiency of transportation across

17 parts of an adjacent foreign country and reenters

18 the United States; or

19 (C) is transported to Canada, to be

20 consumed therein, in amounts not to exceed an

21 annual average of 50,000 barrels per day, in ad22 dition to exports under subparagraphs (A) and

23 (B), except that any ocean transportation of such

24 oil shall be by vessels documented under section

25 12106 of title 46, United States Code.
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1 (2) EXCEPTIONS.—Crude oil subject to the prohi2 bition contained in paragraph (1) may be exported

3 only if—

4 (A) the President so recommends to the

5 Congress after making and publishing express

6 findings that exports of such crude oil, including

7 exchanges—

8 (i) will not diminish the total quantity

9 or quality of petroleum refined within,

10 stored within, or legally committed to be

11 transported to and sold within the United

12 States;

13 (ii) will, within 3 months following the

14 initiation of such exports or exchanges, re15 sult in—

16 (I) acquisition costs to the refiners

17 that purchase the imported crude oil

18 being lower than the acquisition costs

19 such refiners would have to pay for the

20 domestically produced oil in the ab21 sence of such an export or exchange,

22 and

23 (II) not less than 75 percent of

24 such savings in costs being reflected in
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1 wholesale and retail prices of products

2 refined from such imported crude oil;

3 (iii) will be made only pursuant to

4 contracts which may be terminated if the

5 crude oil supplies of the United States are

6 interrupted, threatened, or diminished;

7 (iv) are clearly necessary to protect the

8 national interest; and

9 (v) are in accordance with the provi10 sions of this title; and

11 (B) the President includes such findings in

12 the recommendation to the Congress and the

13 Congress, within 60 days after receiving that rec14 ommendation, agrees to a joint resolution which

15 approves such exports on the basis of those find16 ings, and which is thereafter enacted into law.

17 (3) EXPORTS UNDER BILATERAL AGREE18 MENTS.—Notwithstanding any other provision of this

19 section or any other provision of law, including sub20 section (u) of section 28 of the Mineral Leasing Act

21 of 1920, the President may export oil to any country

22 pursuant to a bilateral international oil supply

23 agreement entered into by the United States with such

24 country before June 25, 1979, or to any country pur-
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1 suant to the International Emergency Oil Sharing

2 Plan of the International Energy Agency.

3 (e) REFINED PETROLEUM PRODUCTS.—

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

5 the President determines that it is necessary to im6 pose export controls on refined petroleum products in

7 order to carry out the policy set forth in section

8 103(4), the President shall notify the Congress of that

9 determination. The President shall also notify the

10 Congress if and when the President determines that

11 such export controls are no longer necessary. During

12 any period in which a determination that such export

13 controls are necessary is in effect, no refined petro14 leum product may be exported except pursuant to an

15 export license specifically authorizing such export.

16 (2) NOTIFICATION TO CONGRESS AND LAY17 OVER.—(A) Not later than 5 days after an applica18 tion for a license to export any refined petroleum

19 product is received, the Secretary shall notify the

20 Congress of such application, together with the name

21 of the exporter, the destination of the proposed export,

22 and the amount and price of the proposed export.

23 Such notification shall be made to the chairman of

24 the Committee on Foreign Affairs of the House of

25 Representatives and the chairman of the Committee
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1 on Banking, Housing, and Urban Affairs of the Sen2 ate.

3 (B) The Secretary may not grant such license

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

5 which notification to the Congress under paragraph

6 (1) is received, unless the President certifies in writ7 ing to the Speaker of the House of Representatives

8 and the President pro tempore of the Senate that the

9 proposed export is vital to the national interest and

10 that a delay in issuing the license would adversely af11 fect that interest.

12 (3) EXCEPTION.—This subsection shall not apply

13 to—

14 (A) any export license application for ex15 ports to a country with respect to which histori16 cal export quotas established by the Secretary on

17 the basis of past trading relationships apply; or

18 (B) any license application for exports to a

19 country if exports under the license would not re20 sult in the export from the United States of more

21 than 250,000 barrels of refined petroleum prod22 ucts to such country in any fiscal year.

23 (4) DEFINITION.—For purposes of this sub24 section, the term ‘‘refined petroleum product’’ means

25 gasoline, kerosene, distillates, propane or butane gas,
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1 diesel fuel, and residual fuel oil, that is refined within

2 the United States or entered for consumption within

3 the United States.

4 (5) EXTENSION OF LICENSE APPLICATION PROC5 ESSING TIME.—The Secretary may extend any time

6 period prescribed in section 109 to the extent nec7 essary to take into account delays in action by the

8 Secretary on a license application on account of the

9 provisions of this subsection.

10 (f) CERTAIN PETROLEUM PRODUCTS.—Petroleum

11 products refined in United States foreign trade zones, or

12 in the United States Territory of Guam, from foreign crude

13 oil shall be excluded from any quantitative restrictions im14 posed under this section, except that, if the Secretary finds

15 that a product is in short supply, the Secretary may issue

16 such regulations as may be necessary to limit exports.

17 (g) AGRICULTURAL COMMODITIES.—

18 (1) APPROVAL OF CONTROLS BY SECRETARY OF

19 AGRICULTURE.—The authority conferred by this sec20 tion shall not be exercised with respect to any agricul21 tural commodity, including fats and oils or animal

22 hides or skins, without the approval of the Secretary

23 of Agriculture. The Secretary of Agriculture shall not

24 approve the exercise of such authority with respect to

25 any such commodity during any period for which the
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1 supply of such commodity is determined by the Sec2 retary of Agriculture to be in excess of the require3 ments of the domestic economy, except to the extent

4 the President determines that the controls on such ag5 ricultural commodities are also imposed under section

6 106. The Secretary of Agriculture shall, by exercising

7 the authority which the Secretary of Agriculture has

8 under other applicable provisions of law, collect data

9 with respect to export sales of animal hides and skins.

10 (2) PROTECTION OF STORED COMMODITIES FROM

11 FUTURE CONTROLS.—Upon approval of the Secretary,

12 in consultation with the Secretary of Agriculture, ag13 ricultural commodities purchased by or for use in a

14 foreign country may remain in the United States for

15 export at a later date free from any quantitative lim16 itations on export which may be imposed to carry out

17 the policy set forth in section 103(4) subsequent to

18 such approval. The Secretary may not grant such ap19 proval unless the Secretary receives adequate assur20 ance and, in conjunction with the Secretary of Agri21 culture, finds—

22 (A) that such commodities will eventually

23 be exported,

24 (B) that neither the sale nor export thereof

25 will result in an excessive drain of scarce mate-
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1 rial and have a serious domestic inflationary

2 impact,

3 (C) that storage of such commodities in the

4 United States will not unduly limit the space

5 available for storage of domestically owned com6 modities, and

7 (D) that the purpose of such storage is to es8 tablish a reserve of such commodities for later

9 use, not including resale to or use by another

10 country.

11 The Secretary may issue such regulations as may be

12 necessary to carry out this paragraph.

13 (3) PROCEDURES FOR IMPOSING CONTROLS.—

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

15 agricultural commodity under section 106 (including

16 section 106(i)) or this section, the President shall im17 mediately transmit a report on such action to the

18 Congress, setting forth the reasons for the controls in

19 detail and specifying the period of time, which may

20 not exceed 1 year, that the controls are proposed to

21 be in effect. If the Congress, within 60 days after the

22 date of the receipt of the report, adopts a joint resolu23 tion pursuant to paragraph (4) approving the impo24 sition of the export controls, then such controls shall

25 remain in effect for the period specified in the report,
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1 or until terminated by the President, whichever occurs

2 first. If the Congress, within 60 days after the date

3 of its receipt of such report, fails to adopt a joint res4 olution approving such controls, then such controls

5 shall cease to be effective upon the expiration of that

6 60-day period.

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

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

9 (i) which are extended under this title if the

10 controls, when imposed, were approved by the

11 Congress under subparagraph (A) and para12 graph (4); or

13 (ii) which are imposed with respect to a

14 country as part of the prohibition or curtailment

15 of all exports to that country.

16 (4) EXPEDITED PROCEDURES.—(A) For pur17 poses of this paragraph, the term ‘‘joint resolution’’

18 means only a joint resolution the matter after the re19 solving clause of which is as follows: ‘‘That pursuant

20 to section 107(g)(3) of the Export Act of 1994, the

21 President may impose export controls as specified in

22 the report submitted to the Congress on lll.’’,

23 with the blank space being filled with the appropriate

24 date.
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1 (B) On the day on which a report is submitted

2 to the House of Representatives and the Senate under

3 paragraph (3), a joint resolution with respect to the

4 export controls specified in such report shall be intro5 duced (by request) in the House by the chairman of

6 the Committee on Foreign Affairs, for the chairman

7 and the ranking minority member of the Committee,

8 or by Members of the House designated by the chair9 man and ranking minority member; and shall be in10 troduced (by request) in the Senate by the majority

11 leader of the Senate, for the chairman and the minor12 ity leader of the Senate, or by Members of the Senate

13 designated by the majority leader and minority lead14 er of the Senate. If either House is not in session on

15 the day on which such a report is submitted, the joint

16 resolution shall be introduced in that House, as pro17 vided in the preceding sentence, on the first day there18 after on which that House is in session.

19 (C) If the committee of either House to which a

20 joint resolution has been referred has not reported the

21 joint resolution at the end of 30 days after its refer22 ral, the committee shall be discharged from further

23 consideration of the resolution or of any other joint

24 resolution introduced with respect to the same matter.
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1 (D) A joint resolution under this paragraph

2 shall be considered in the Senate in accordance with

3 the provisions of section 601(b)(4) of the Inter4 national Security Assistance and Arms Export Con5 trol Act of 1976. For the purpose of expediting the

6 consideration and passage of joint resolutions re7 ported or discharged pursuant to the provisions of

8 this paragraph, it shall be in order for the Committee

9 on Rules of the House of Representatives to present

10 for consideration a resolution of the House of Rep11 resentatives providing procedures for the immediate

12 consideration of a joint resolution under this para13 graph which may be similar, if applicable, to the pro14 cedure set forth in section 601(b)(4) of the Inter15 national Security Assistance and Arms Export Con16 trol Act of 1976.

17 (E) In the case of a joint resolution described in

18 subparagraph (A), if, before the passage by one House

19 of a joint resolution of that House, that House re20 ceives a resolution with respect to the same matter

21 from the other House, then—

22 (i) the procedure in that House shall be the

23 same as if no joint resolution has been received

24 from the other House; but
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1 (ii) the vote on final passage shall be on the

2 joint resolution of the other House.

3 (5) COMPUTATION OF TIME PERIODS.—In the

4 computation of the period of 60 days referred to in

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

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

7 days on which either House of Congress is not in ses8 sion because of an adjournment of more than 3 days

9 to a day certain or because of an adjournment of the

10 Congress sine die.

11 (h) BARTER AGREEMENTS.—

12 (1) EXEMPTION FROM CONTROLS.—The expor13 tation pursuant to a barter agreement of any com14 modities which may lawfully be exported from the

15 United States, for any commodities which may law16 fully be imported into the United States, may be ex17 empted, in accordance with paragraph (2), from any

18 quantitative limitation on exports (other than any re19 porting requirement) imposed to carry out the policy

20 set forth in section 103(4).

21 (2) CRITERIA FOR EXEMPTION.—The Secretary

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

23 Secretary finds, after consultation with the appro24 priate department or agency of the United States,

25 that—
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1 (A) for the period during which the barter

2 agreement is to be performed—

3 (i) the average annual quantity of the

4 commodities to be exported pursuant to the

5 barter agreement will not be required to sat6 isfy the average amount of such commod7 ities estimated to be required annually by

8 the domestic economy and will be surplus

9 thereto; and

10 (ii) the average annual quantity of the

11 commodities to be imported will be less than

12 the average amount of such commodities es13 timated to be required annually to supple14 ment domestic production; and

15 (B) the parties to such barter agreement

16 have demonstrated adequately that they intend,

17 and have the capacity, to perform such barter

18 agreement.

19 (3) DEFINITION.—For purposes of this sub20 section, the term ‘‘barter agreement’’ means any

21 agreement which is made for the exchange, without

22 monetary consideration, of any commodities produced

23 in the United States for any commodities produced

24 outside of the United States.
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1 (4) APPLICABILITY.—This subsection shall apply

2 only with respect to barter agreements entered into

3 after September 30, 1979.

4 (i) UNPROCESSED RED CEDAR.—

5 (1) PROHIBITION.—No unprocessed western red

6 cedar (Thuja plicata) logs harvested from State or

7 Federal lands may be exported from the United

8 States.

9 (2) RED CEDAR NOT AN AGRICULTURAL COM10 MODITY.—Unprocessed western red cedar logs shall

11 not be considered to be an agricultural commodity for

12 purposes of subsection (g).

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

14 term ‘‘unprocessed western red cedar’’ means red

15 cedar timber which has not been processed into—

16 (A) lumber of American Lumber Standards

17 Grades of Number 3 dimension or better, or Pa18 cific Lumber Inspection Bureau Export R-List

19 Grades of Number 3 common or better;

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

21 (C) veneer and plywood;

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

23 with preservative for use as such and not in24 tended to be further processed; or

25 (E) shakes and shingles.
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1 (j) EFFECT OF CONTROLS ON EXISTING CONTRACTS.—

2 (1) WESTERN RED CEDAR.—The export restric3 tions contained in subsection (i) and any export con4 trols imposed under this section shall not affect—

5 (A) any contract to harvest unprocessed

6 western red cedar from State lands which was

7 entered into before October 1, 1979, and the per8 formance of which would make the red cedar

9 available for export; or

10 (B) any contract to harvest unprocessed red

11 cedar which was entered into after September 30,

12 1979, and before October 1, 1982, and the per13 formance of which would make the red cedar

14 available for export, to the extent such exports

15 were permitted under section 7(i) of the Export

16 Administration Act of 1979.

17 (2) OTHER COMMODITIES.—Any export controls

18 imposed under this section on any agricultural com19 modity (including fats, oils, and animal hides and

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

21 shall not affect any contract to export entered into be22 fore the date on which such controls are imposed. For

23 purposes of this paragraph, the term ‘‘contract to ex24 port’’ includes, but is not limited to, an export sales

25 agreement and an agreement to invest in an enter-
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1 prise which involves the export of commodities or

2 technology.

3 (k) OIL EXPORTS FOR USE BY UNITED STATES MILI4 TARY FACILITIES.—For purposes of subsection (d), and for

5 purposes of any export controls imposed under this title,

6 shipments of crude oil, refined petroleum products, or par7 tially refined petroleum products from the United States

8 for use by the Department of Defense or United States-sup9 ported installations or facilities shall not be considered to

10 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 the

19 following actions with intent to comply with, further,

20 or support any boycott fostered or imposed by a for21 eign country against a country which is friendly to

22 the United States and which is not itself the object of

23 any form of boycott pursuant to United States law or

24 regulation:
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1 (A) Refusing, or requiring any other person

2 to refuse, to do business with or in the boycotted

3 country, with any business concern organized

4 under the laws of the boycotted country, with

5 any national or resident of the boycotted coun6 try, or with any other person, pursuant to an

7 agreement with, a requirement of, or a request

8 from or on behalf of the boycotting country. The

9 mere absence of a business relationship with or

10 in the boycotted country with any business con11 cern organized under the laws of the boycotted

12 country, with any national or resident of the

13 boycotted country, or with any other person, does

14 not indicate the existence of the intent required

15 to establish a violation of regulations issued to

16 carry out this subparagraph.

17 (B) Refusing, or requiring any other person

18 to refuse, to employ or otherwise discriminating

19 against any United States person on the basis of

20 race, religion, sex, or national origin of that per21 son or of any owner, officer, director, or em22 ployee 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, di2 rector, or employee of such person.

3 (D) Furnishing information about whether

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

5 business relationship (including a relationship

6 by way of sale, purchase, legal or commercial

7 representation, shipping or other transport, in8 surance, investment, or supply) with or in the

9 boycotted country, with any business concern or10 ganized under the laws of the boycotted country,

11 with any national or resident of the boycotted

12 country, or with any other person that is known

13 or believed to be restricted from having any busi14 ness relationship with or in the boycotted coun15 try. Nothing in this paragraph shall prohibit the

16 furnishing of normal business information in a

17 commercial context as defined by the Secretary.

18 (E) Furnishing information about whether

19 any person is a member of, has made a contribu20 tion to, or is otherwise associated with or in21 volved in the activities of any charitable or fra22 ternal organization which supports the boycotted

23 country.

24 (F) Paying, honoring, confirming, or other25 wise implementing a letter of credit which con-
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1 tains any condition or requirement compliance

2 with which is prohibited by regulations issued

3 pursuant to this paragraph, and no United

4 States person shall, as a result of the application

5 of this paragraph, be obligated to pay or other6 wise honor or implement such letter of credit.

7 (2) EXCEPTIONS.—Regulations issued pursuant

8 to paragraph (1) shall provide exceptions for—

9 (A) complying or agreeing to comply with

10 requirements—

11 (i) prohibiting the import of commod12 ities or services from the boycotted country

13 or commodities produced or services pro14 vided by any business concern organized

15 under the laws of the boycotted country or

16 by nationals or residents of the boycotted

17 country; or

18 (ii) prohibiting the shipment of com19 modities to the boycotted country on a car20 rier of the boycotted country, or by a route

21 other than that prescribed by the boycotting

22 country or the recipient of the shipment;

23 (B) complying or agreeing to comply with

24 import and shipping document requirements

25 with respect to the country of origin, the name
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1 of the carrier and route of shipment, the name

2 of the supplier of the shipment, or the name of

3 the provider of other services, except that no in4 formation knowingly furnished or conveyed in

5 response to such requirements may be stated in

6 negative, blacklisting, or similar exclusionary

7 terms, other than with respect to carriers or

8 route of shipment as may be permitted by such

9 regulations in order to comply with precaution10 ary requirements protecting against war risks

11 and confiscation;

12 (C) complying or agreeing to comply in the

13 normal course of business with the unilateral

14 and specific selection by a boycotting country, or

15 national or resident thereof, of carriers, insurers,

16 suppliers of services to be performed within the

17 boycotting country, or specific commodities

18 which, in the normal course of business, are

19 identifiable by source when imported into the

20 boycotting country;

21 (D) complying or agreeing to comply with

22 export requirements of the boycotting country re23 lating to shipments or transshipment of exports

24 to the boycotted country, to any business concern

25 of or organized under the laws of the boycotted
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1 country, or to any national or resident of the

2 boycotted country;

3 (E) compliance by an individual or agree4 ment by an individual to comply with the immi5 gration or passport requirements of any country

6 with respect to such individual or any member

7 of such individual’s family or with requests for

8 information regarding requirements of employ9 ment of such individual within the boycotting

10 country; and

11 (F) compliance by a United States person

12 resident in a foreign country or agreement by

13 such person to comply with the laws of the coun14 try with respect to such person’s activities exclu15 sively therein, and such regulations may contain

16 exceptions for such resident complying with the

17 laws or regulations of the foreign country govern18 ing imports into such country of trademarked,

19 trade named, or similarly specifically identifi20 able products, or components of products for such

21 person’s own use, including the performance of

22 contractual services within that country, as may

23 be defined by such regulations.

24 (3) LIMITATION ON EXCEPTIONS.—Regulations

25 issued pursuant to paragraphs (2)(C) and (2)(F)
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1 shall not provide exceptions from paragraphs (1)(B)

2 and (1)(C).

3 (4) ANTITRUST AND CIVIL RIGHTS LAWS NOT AF4 FECTED.—Nothing in the subsection may be construed

5 to supersede or limit the operation of the antitrust or

6 civil rights laws of the United States.

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

8 transaction or activity undertaken, by or through a

9 United States person or any other person, with intent

10 to evade the provisions of this section as implemented

11 by the regulations issued pursuant to this subsection,

12 and such regulations shall expressly provide that the

13 exceptions set forth in paragraph (2) shall not permit

14 activities or agreements (expressed or implied by a

15 course of conduct, including a pattern of responses)

16 otherwise prohibited, which are not within the intent

17 of such exceptions.

18 (b) EMERGENCY CONTROLS.—

19 (1) REGULATIONS.—In addition to the regula20 tions issued pursuant to subsection (a), regulations is21 sued under section 106 shall implement the policies

22 set forth in section 103(10).

23 (2) REPORTS BY UNITED STATES PERSONS.—

24 Such regulations shall require that any United States

25 person receiving a request for the furnishing of infor-
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1 mation, the entering into or implementing of agree2 ments, or the taking of any other action referred to

3 in section 103(10) shall report that fact to the Sec4 retary, together with such other information concern5 ing such request as the Secretary may require, for

6 such action as the Secretary considers appropriate for

7 carrying out the policies of that section. Such person

8 shall also report to the Secretary whether such person

9 intends to comply and whether such person has com10 plied with such request. Any report filed pursuant to

11 this paragraph shall be made available promptly for

12 public inspection and copying, except that informa13 tion regarding the quantity, description, and value of

14 any commodities or technology to which such report

15 relates may be kept confidential if the Secretary de16 termines that disclosure thereof would place the Unit17 ed States person involved at a competitive disadvan18 tage. The Secretary shall periodically transmit sum19 maries of the information contained in such reports

20 to the Secretary of State for such action as the Sec21 retary of State, in consultation with the Secretary,

22 considers appropriate for carrying out the policies set

23 forth in section 103(10).
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1 (c) PREEMPTION.—The provisions of this section and

2 the regulations issued under this section shall preempt any

3 law, rule, or regulation which—

4 (1) is a law, rule, or regulation of any of the sev5 eral States or the District of Columbia, or any of the

6 territories or possessions of the United States, or of

7 any governmental subdivision thereof; and

8 (2) pertains to participation in, compliance

9 with, implementation of, or the furnishing of infor10 mation regarding restrictive trade practices or boy11 cotts fostered or imposed by foreign countries against

12 other countries.

13 SEC. 109. PROCEDURES FOR PROCESSING EXPORT LICENSE

14 APPLICATIONS; OTHER INQUIRIES.

15 (a) PRIMARY RESPONSIBILITY OF THE SECRETARY.—

16 (1) IN GENERAL.—All export license applications

17 required under this title shall be submitted by the ap18 plicant to the Secretary. All determinations with re19 spect to any such application shall be made by the

20 Secretary, subject to the procedures provided in this

21 section.

22 (2) ROLE OF SECRETARIES OF DEFENSE

23 AND ENERGY.—(A) Notwithstanding any

24 other provision of this section, the Sec25 retaries of Defense and Energy are au-
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1 thorized to review any proposed export

2 of commodities or technology that is con3 trolled under section 105(a)(1) or con4 trolled for national security purposes

5 under section 106. Whenever—

6 (i) the Secretary of Defense or the

7 Secretary of Energy determines that

8 the export of such commodities or

9 technology will directly and signifi10 cantly enable a country or end user

11 to acquire the capability to develop,

12 produce, stockpile, use, or deliver

13 weapons of mass destruction, or

14 (ii) the Secretary of Defense de15 termines that the export of such com16 modities or technology will directly

17 and significantly contribute to the

18 military capability of a country so as

19 to prove detrimental to the national

20 security of the United States or its al21 lies,

22 the Secretary of Defense or the Secretary

23 of Energy (as the case may be) shall rec24 ommend to the President that such ex25 port be disapproved.
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1 (B)(i) Notwithstanding any other pro2 vision of this section, the Secretary of De3 fense and the Secretary of Energy shall

4 determine, in consultation with the Sec5 retary, and confirm in writing the types

6 and categories of transactions which

7 should be reviewed by the Secretary of

8 Defense or the Secretary of Energy in

9 order to make a determination referred

10 to in subparagraph (A). Whenever a li11 cense for export or other authority with12 in such type or category is received by

13 the Secretary, the Secretary shall notify

14 the Secretary of Defense or the Secretary

15 of Energy (as the case may be) of such re16 quest, and the Secretary may not issue

17 any license or other authority pursuant

18 to such request until the Secretary is no19 tified by the Secretary of Defense or En20 ergy under subclause (II) or (III) or noti21 fied by the President under clause (ii).

22 The Secretary of Defense or the Sec23 retary of Energy (as the case may be)

24 shall carefully consider any notification

25 submitted by the Secretary pursuant to
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1 this paragraph and, not later than 30

2 days after notification of the request,

3 shall—

4 (I) make a recommendation to the

5 President referred to in subpara6 graph (A);

7 (II) notify the Secretary that he

8 or she would recommend approval

9 subject to specified conditions; or

10 (III) recommend to the Secretary

11 that the export of the commodities or

12 technology be approved.

13 (ii) Whenever the Secretary of De14 fense or the Secretary of Energy makes a

15 recommendation to the President under

16 subparagraph (A), the Secretary shall

17 also submit his or her recommendation to

18 the President on the request to export if

19 the Secretary differs with the Secretary

20 of Defense or the Secretary of Energy.

21 The President shall notify the Secretary

22 of his decision on the matter before the

23 end of the 50-day period set forth in sub24 section (c). If the President notifies the

25 Secretary, after receiving a recommenda-
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1 tion from the Secretary of Defense or the

2 Secretary of Energy, that the President

3 disapproves such export, no license or

4 other authority may be issued for the ex5 port to such country of the commodities

6 or technology involved.

7 (iii) If the Secretary of Defense or the

8 Secretary of Energy fails to make a rec9 ommendation or notification under this

10 paragraph within the 30-day period spec11 ified in clause (i), the Secretary shall ap12 prove or deny the request for a license or

13 other authority to export without such

14 recommendation or notification.

15 ƒ(2)≈ (3) REGULATIONS.—In regulations that

16 carry out this section, the Secretary shall describe the

17 procedures required by this section, the responsibil18 ities of the Secretary and of other departments and

19 agencies in reviewing applications, the rights of the

20 applicant, and the extent of any multilateral review

21 of a given license application.

22 ƒ(3)≈ (4) CALCULATION OF TIME PERIODS.—In

23 calculating the processing times set forth in this sec24 tion, the Secretary shall use calendar days, except

25 that if the final day for a required action falls on a
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1 weekend or holiday, that action shall be taken no

2 later than the following business day.

3 ƒ(4)≈ (5) CONSIDERATION OF RELIABILITY OF

4 PARTIES.—In reviewing applications for validated ex5 port licenses, the Secretary may in each case consider

6 the reliability of the parties to the proposed export. In

7 making such an evaluation, the Secretary may con8 sider all sources of information, including intelligence

9 information. The consideration of intelligence infor10 mation in connection with the evaluation of the reli11 ability of parties shall not authorize the direct or in12 direct disclosure of classified information or sources

13 and methods of gathering classified information.

14 (b) ACTION BY OTHER DEPARTMENTS AND AGEN15 CIES.—

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

17 President, the Secretary shall refer appropriate li18 cense applications required under section 105 or 106

19 to appropriate departments and agencies of the Gov20 ernment to make recommendations and provide infor21 mation to the Secretary on such applications.

22 (B) The President shall restrict referrals of li23 cense applications to Government departments and

24 agencies that possess particular expertise and infor-
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1 mation that is relevant to the licensing process and

2 is not possessed by the Secretary.

3 (C) To assist the Secretary in export licensing

4 determinations, the Director of Central Intelligence

5 shall collect all intelligence information regarding

6 controlled end users and shall have such information

7 accessible in computerized form at the Central Intel8 ligence Agency no later than December 31, 1994.

9 Each department or agency of the Government in pos10 session of intelligence information regarding con11 trolled end users shall provide that information to the

12 Central Intelligence Agency not later than September

13 30, 1994.

14 (2) ORGANIZATION OF REVIEWING AGENCIES.—

15 Departments and agencies reviewing license applica16 tions shall organize their resources and units to plan

17 for the prompt and expeditious internal dissemina18 tion of export license applications, if necessary, so as

19 to avoid delays in responding to the Secretary’s re20 quest for information and recommendations.

21 (3) REQUESTS FOR ADDITIONAL INFORMATION.—

22 Within 5 days after an export license application is

23 referred to a department or agency under this sub24 section, the agency or department shall specify to the

25 Secretary all information that is not in the applica-
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1 tion that would be required to respond to the referral

2 of the application, and the Secretary shall, pursuant

3 to subsection (d)(1)(C), request such information from

4 the applicant. The time that may elapse between the

5 date the information is requested from the applicant

6 and the date the information is received by the Sec7 retary shall not be included in calculating the time

8 periods prescribed in this section.

9 (c) ACTION BY THE SECRETARY.—Subject to sub10 section (d)(4), ƒ30 days≈ 50 days after the date of formal

11 filing with the Secretary of an export license application,

12 a license for the transaction specified in the application

13 shall become valid and effective and the commodities or

14 technology involved are authorized for export or reexport

15 pursuant to such license, unless—

16 (1) the application has been otherwise approved

17 by the Secretary, in which case it shall be valid and

18 effective according to the terms of the approval; or

19 (2) the application has been denied by the Sec20 retary under this section and the applicant has been

21 so informed.

22 (d) PROCEDURES FOR PROCESSING EXPORT LICENSE

23 APPLICATIONS.—
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1 (1) INITIAL SCREENING.—Not more than 10 days

2 after the date on which any export license application

3 is submitted to the Secretary, the Secretary shall—

4 (A) send the applicant an acknowledgment

5 of the receipt of the application and the date of

6 the receipt;

7 (B) submit to the applicant a written de8 scription of the procedures required by this sec9 tion, the responsibilities of the Secretary with re10 spect to the application, and the rights of the ap11 plicant;

12 (C) on the basis of information the Sec13 retary has, including information provided to

14 the Secretary under subsection (b)(3), return the

15 application without action if the application is

16 improperly completed or if additional informa17 tion is required, with sufficient information to

18 permit the application to be properly resubmit19 ted; and

20 (D) determine whether it is necessary to

21 submit the application to a multilateral review

22 process pursuant to an export control regime

23 and, if so, inform the applicant of such require24 ment.
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1 (2) REFERRAL.—(A) If, pursuant to criteria es2 tablished by the President, the Secretary is to refer an

3 export license application to any other department or

4 agency for a recommendation under subsection (b)(1),

5 the Secretary shall, within 2 days after receiving the

6 application, refer the application concurrently to all

7 such departments or agencies, transmitting the appli8 cation electronically whenever possible. A department

9 or agency reviewing an export license application re10 ferred by the Secretary shall have ƒ10 days≈ 30

11 days in which to submit to the Secretary its rec12 ommendations on the application. Any department or

13 agency which does not submit its recommendations

14 within that ƒ10-day period≈ 30-day period shall

15 be deemed by the Secretary to have no objection to the

16 approval of such application.

17 (B) A recommendation that the Secretary deny

18 a validated license shall include a statement of rea19 sons for the recommendation that are consistent with

20 the provisions of this title, and shall cite both the stat21 utory and the regulatory basis for the recommenda22 tion.

23 (3) INTERAGENCY COMMITTEE.—An interagency

24 committee may be established by the President for the

25 purpose of resolving disputes among departments and
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1 agencies on export license applications under this

2 title. Such committee shall be chaired by the Sec3 retary. The procedures followed by such interagency

4 committee shall provide—

5 (A) deadlines for decisions within the inter6 agency committee consistent with the duty of the

7 Secretary to reach his or her final decision on an

8 application within ƒ30 days≈ 50 days after

9 the date of filing of the license application;

10 (B) that a department or agency dissenting

11 from the position of the Secretary shall have the

12 burden to bring the issue in writing to the next

13 level of review provided within the interagency

14 committee and may only dissent on the basis of

15 the criteria set forth in section 105(c)(1)(D) or

16 section 106(a)(4); and

17 (C) that a department or agency that fails

18 to make a timely escalation of a disputed matter

19 shall be deemed to have no objection to the deci20 sion of the Secretary.

21 (4) ACTIONS BY THE SECRETARY.—(A) When a

22 referral of a license application to other departments

23 or agencies is not required, the Secretary shall issue

24 a license or notify the applicant of the intent to deny

25 within 10 days after receiving the application.
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1 (B) If an application is to be denied because the

2 export would be made to a controlled end user, no re3 ferral to other departments or agencies is required,

4 and the applicant shall be informed of the reason for

5 the denial.

6 (5) ACTION UPON DENIAL.—In cases in which

7 the Secretary has determined that a license applica8 tion should be denied, the applicant shall be informed

9 in writing, not later than 3 days after such deter10 mination is made, of—

11 (A) the determination;

12 (B) the statutory and regulatory basis for

13 the proposed denial;

14 (C) the reasons for such denial, with ref15 erences to the criteria set forth in section 105,

16 106, or 107 (as the case may be);

17 (D) what, if any, modifications in, or re18 strictions on, the commodities or technology for

19 which the license was sought would allow the ex20 port or reexport of the commodities or technology

21 to be compatible with controls imposed under

22 this title;

23 (E) which officers and employees of the De24 partment of Commerce who are familiar with the

25 application will be made reasonably available to
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1 the applicant for considerations with regard to

2 such modifications or restrictions, if appro3 priate;

4 (F) to the extent consistent with the na5 tional security and foreign policy of the United

6 States, the specific considerations which led to

7 the determination to deny the application; and

8 (G) the availability of appeal procedures.

9 The Secretary shall allow the applicant not less than

10 30 days to respond to the Secretary’s determination

11 before the license application is finally denied.

12 (e) TIME LIMIT EXTENSION.—If required for

13 national security reasons, the President may

14 increase the time periods set forth in sub15 sections (a), (c), and (d) to not more than 2

16 times the number of days in each time period,

17 for not more than 4 percent of the export li18 cense applications filed with the Secretary

19 during any calendar year.

20 ƒ(e)≈ (f) RECORDKEEPING.—The Secretary shall

21 make and keep records of all advice and recommendations

22 given by Federal departments and agencies, and decisions

23 made by the Department of Commerce, in connection with

24 any export license application or revision of an export li25 cense application under this title, including the factual and
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1 analytical basis of the advice, recommendations, or deci2 sions.

3 ƒ(f)≈ (g) CHANGES IN REQUIREMENTS FOR APPLICA4 TIONS.—Except as provided in subsection (d), in any case

5 in which, after an export license application is submitted,

6 the Secretary changes the requirements for such a license

7 application, the Secretary may request appropriate addi8 tional information of the applicant, but the Secretary may

9 not return the application to the applicant without action

10 because it fails to meet the changed requirements.

11 ƒ(g)≈ (h) APPEALS.—The Secretary shall establish

12 appropriate procedures for any applicant to appeal to the

13 Secretary the denial of an export license application under

14 this title.

15 ƒ(h)≈ (i) OTHER INQUIRIES.—

16 (1) CLASSIFICATION REQUESTS.—In any case in

17 which the Secretary receives a written request for the

18 proper classification of a commodity or technology on

19 the control index, the Secretary shall, not more than

20 10 working days after receiving the request, inform

21 the person making the request of the proper classifica22 tion.

23 (2) APPLICABILITY OF REQUIREMENTS.—In any

24 case in which the Secretary receives a written request

25 for information about the applicability of export li-
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1 cense requirements under this title to a proposed

2 transaction or series of transactions, the Secretary

3 shall, not more than 30 days after receiving the re4 quest, reply with that information to the person mak5 ing the request.

6 (3) PUBLICATION OF CLASSIFICATION DETER7 MINATIONS.—The Secretary shall, to the greatest ex8 tent practicable, taking into account restrictions on

9 the disclosure of classified or confidential information,

10 publish in the Federal Register classification deter11 minations made under paragraph (1).

12 ƒ(i)≈ (j) REPORTS ON LICENSE APPLICATIONS.—

13 (1) QUARTERLY REPORT.—Not later than 180

14 days after the date of the enactment of this Act, and

15 not later than the end of each 3-month period there16 after, the Secretary shall submit to the Committee on

17 Foreign Affairs and the Committee on Armed

18 Services of the House of Representatives and to the

19 Committee on Banking, Housing, and Urban Affairs

20 and the Committee on Armed Services of

21 the Senate a report listing all applications for vali22 dated licenses under section 105 or 106 on

23 which action was completed during the preceding 3-

24 month period ƒand which required a period longer

25 than the period permitted under subsection (c) or
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1 (d)(4), as the case may be, before notification on a de2 cision to approve or deny the application was sent to

3 the applicant≈.

4 (2) INFORMATION ON LICENSE APPLICATIONS.—

5 With regard to each application, each listing shall

6 identify—

7 (A) the application case number;

8 (B) the value of the commodities or tech9 nology to which the application relates;

10 (C) the country of destination of the com11 modities or technology;

12 (D) the date on which the application was

13 received by the Secretary;

14 (E) the date on which the Secretary ap15 proved or denied the application; and

16 (F) the date on which the notification of ap17 proval or denial of the application was sent to

18 the applicant.

19 ƒ(3) INTRODUCTION TO REPORT.—With respect

20 to an application referred to any other department or

21 agency which did not submit or has not submitted its

22 recommendations on the application within the pe23 riod permitted under subsection (d)(2) to submit such

24 recommendations, the listing shall also include—
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1 ø(A) the office responsible for processing

2 the application and the officer responsible for

3 the office; and

4 ø(B) the period of time that elapsed before

5 the recommendations were submitted or that

6 has elapsed since referral of the application, as

7 the case may be.¿

8 SEC. 110. VIOLATIONS.

9 (a) CRIMINAL PENALTIES.—

10 (1) VIOLATIONS BY AN INDIVIDUAL.—Any indi11 vidual who knowingly violates or conspires to or at12 tempts to violate any provision of this title or any

13 regulation, license, or order issued under this title

14 shall be fined not more than 5 times the value of the

15 exports involved or $500,000, whichever is greater, or

16 imprisoned not more than 10 years, or both.

17 (2) VIOLATIONS BY A PERSON OTHER THAN AN

18 INDIVIDUAL.—Any person other than an individual

19 who knowingly violates or conspires to or attempts to

20 violate any provision of this title or any regulation,

21 license, or order issued under this title shall be fined

22 not more than 10 times the value of the exports in23 volved or $1,000,000, whichever is greater.

24 (b) FORFEITURE OF PROPERTY INTEREST AND PRO25 CEEDS.—
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1 (1) FORFEITURE.—Any person who is convicted

2 under subsection (a)(1) or (2) shall, in addition to

3 any other penalty, forfeit to the United States—

4 (A) any of that person’s interest in, security

5 of, claim against, or property or contractual

6 rights of any kind in the commodities or tangible

7 items that were the subject of the violation;

8 (B) any of that person’s interest in, security

9 of, claim against, or property or contractual

10 rights of any kind in tangible property that was

11 used in the export or attempt to export that was

12 the subject of the violation; and

13 (C) any of that person’s property constitut14 ing, or derived from, any proceeds obtained di15 rectly or indirectly as a result of the violation.

16 (2) PROCEDURES.—The procedures in any for17 feiture under this subsection, and the duties and au18 thority of the courts of the United States and the At19 torney General with respect to any forfeiture action

20 under this subsection or with respect to any property

21 that may be subject to forfeiture under this subsection,

22 shall be governed by the provisions of section 1963 of

23 title 18, United States Code.

24 (c) CIVIL PENALTIES; ADMINISTRATIVE SANCTIONS.—
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1 (1) CIVIL PENALTIES.—The Secretary may im2 pose a civil penalty of not more than $250,000 for

3 each violation of this title or any regulation, license,

4 or order issued under this title, either in addition to

5 or in lieu of any other liability or penalty which may

6 be imposed, except that the civil penalty for each such

7 violation of regulations issued under section 108 may

8 not exceed $50,000.

9 (2) DENIAL OF EXPORT PRIVILEGES.—The Sec10 retary may deny the export privileges of any person,

11 including suspending or revoking the authority of any

12 person to export or receive United States-origin com13 modities or technology, on account of any violation of

14 this title or any regulation, license, or order issued

15 under this title.

16 (d) PAYMENT OF CIVIL PENALTIES.—The payment of

17 any civil penalty imposed under subsection (c) may be

18 made a condition, for a period not exceeding 1 year after

19 the penalty has become due but has not been paid, to the

20 granting, restoration, or continuing validity of any export

21 license, permission, or privilege granted or to be granted

22 to the person upon whom such penalty is imposed. In addi23 tion, the payment of any civil penalty imposed under sub24 section (c) may be deferred or suspended in whole or in

25 part for a period of time no longer than any probation pe-
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1 riod (which may exceed 1 year) that may be imposed upon

2 such person. Such deferral or suspension shall not operate

3 as a bar to the collection of the penalty in the event that

4 the conditions of the suspension, deferral, or probation are

5 not fulfilled.

6 (e) REFUNDS.—Any amounts realized from the forfeit7 ure of any property interest or proceeds under subsection

8 (b), and any amount paid in satisfaction of any civil pen9 alty imposed under subsection (c) shall be covered into the

10 Treasury as a miscellaneous receipt. The head of the depart11 ment or agency concerned may, in his or her discretion,

12 refund any such civil penalty imposed under subsection (c),

13 within 2 years after payment, on the ground of a material

14 error of fact or law in the imposition of the penalty. Not15 withstanding section 1346(a) of title 28, United States

16 Code, no action for the refund of any such penalty may

17 be maintained in any court.

18 (f) EFFECT OF OTHER CONVICTIONS.—

19 (1) DENIAL OF EXPORT PRIVILEGES.—Any per20 son convicted of a violation of—

21 (A) this title or the Export Administration

22 Act of 1979 (or any regulation, license, or order

23 issued under this title or that Act),
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1 (B) any regulation, license, or order issued

2 under the International Emergency Economic

3 Powers Act,

4 (C) section 793, 794, or 798 of title 18,

5 United States Code,

6 (D) section 371 or 1001 of title 18, United

7 States Code, if in connection with the export of

8 commodities or technology controlled under this

9 title, or defense articles or defense services con10 trolled under the Arms Export Control Act,

11 (E) section 4(b) of the Internal Security Act

12 of 1950 (50 U.S.C. 783(b)), or

13 (F) section 38 of the Arms Export Control

14 Act,

15 may, at the discretion of the Secretary, be denied ex16 port privileges under this title for a period of up to

17 10 years from the date of the conviction. The Sec18 retary may also revoke any export license under this

19 title in which such person had an interest at the time

20 of the conviction.

21 (2) RELATED PERSONS.—The Secretary may ex22 ercise the authority under paragraph (1) with respect

23 to any person related, through affiliation, ownership,

24 control, or position of responsibility, to any person

25 convicted of any violation of a law set forth in para-
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1 graph (1), upon a showing of such relationship with

2 the convicted person, after providing notice and op3 portunity for a hearing.

4 (g) STATUTE OF LIMITATIONS.—Any proceeding in

5 which a civil penalty or other administrative sanction

6 (other than a temporary denial order) is sought under sub7 section (c) may not be instituted more than 5 years after

8 the date of the alleged violation, except that, in any case

9 in which a criminal indictment alleging a violation of this

10 title is returned within the time limits prescribed by law

11 for the institution of such action, the statute of limitations

12 for bringing a proceeding to impose such a civil penalty

13 or other administrative sanction under this title shall, upon

14 the return of the criminal indictment, be tolled against all

15 persons named as a defendant. The tolling of the statute

16 of limitations shall continue for a period of 6 months from

17 the date a conviction is entered or the indictment is dis18 missed.

19 (h) VIOLATIONS DEFINED BY REGULATION.—Nothing

20 in this section shall limit the power of the Secretary to de21 fine by regulation violations under this title.

22 (i) OTHER AUTHORITIES.—Nothing in subsection (c),

23 (d), (f), or (g) limits—

24 (1) the availability of other administrative or ju25 dicial remedies with respect to violations of this title,
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1 or any regulation, order, or license issued under this

2 title;

3 (2) the authority to compromise and settle ad4 ministrative proceedings brought with respect to any

5 such violation; or

6 (3) the authority to compromise, remit, or miti7 gate seizures and forfeitures pursuant to section 1(b)

8 of title VI of the Act of June 15, 1917 (22 U.S.C.

9 401(b)).

10 (j) PRIVATE RIGHT OF ACTION.—Any person—

11 (1) against whom an act of discrimination de12 scribed in section 108(a)(1)(B) is committed, or

13 (2) who, on account of a violation of the regula14 tions issued pursuant to section 108(a), loses an op15 portunity to engage in a commercial venture pursu16 ant to a contract, joint venture, or other commercial

17 transaction, including an opportunity to bid or ten18 der an offer for a contract,

19 may bring an action in an appropriate district court of

20 the United States against the United States person commit21 ting the violation, for recovery of actual damages incurred

22 on account of such act of discrimination or lost oppor23 tunity. In any such action the court may award punitive

24 damages. An action may be brought under this subsection

25 against a United States person whether or not the United
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1 States person has been determined under this section to

2 have violated the regulations issued pursuant to section

3 108(a) on account of which the action is brought.

4 SEC. 111. CONTROLLING PROLIFERATION ACTIVITY.

5 (a) ESTABLISHMENT OF PROLIFERATION LISTS.—

6 (1) ESTABLISHMENT OF CHEMICAL AND BIOLOGI7 CAL WEAPONS CONTROL LIST UNDER THIS TITLE.—

8 (A) IN GENERAL.—The Secretary, ƒin con9 sultation with the Secretary of State, the Sec10 retary of Defense, and the heads of other appro11 priate departments and agencies,≈ shall establish

12 and maintain a list of commodities and tech13 nology, which shall include those commodities

14 and technology controlled pursuant to multilat15 eral export control regimes such as the Australia

16 Group—

17 (i) that would directly and substan18 tially assist a foreign government, group,

19 entity, or project in acquiring the capabil20 ity to develop, produce, stockpile, or deliver

21 chemical or biological weapons; and

22 (ii) the licensing of which would be ef23 fective in barring the acquisition or en24 hancement of such capability.
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1 (B) ROLE OF OTHER DEPARTMENTS

2 AND AGENCIES.—The Secretary of De3 fense and the heads of other appro4 priate departments and agencies

5 shall identify goods and technology

6 for inclusion on the list referred to in

7 subparagraph (A). Those items which

8 the Secretary and the Secretary of

9 Defense concur shall be included on

10 the list shall comprise the list. If the

11 Secretary and the Secretary of De12 fense are unable to concur on such

13 items, as determined by the Sec14 retary, the Secretary of Defense may,

15 within 20 days after receiving notifi16 cation of the Secretary’s determina17 tion, refer the matter to the President

18 for resolution. The Secretary of De19 fense shall notify the Secretary of any

20 such referral. The President shall, not

21 later than 20 days after such referral,

22 notify the Secretary of his determina23 tion with respect to the inclusion of

24 such items on the list. Failure of the

25 Secretary of Defense to notify the
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1 President or the Secretary, or failure

2 of the President to notify the Sec3 retary, in accordance with this para4 graph, shall be deemed by the Sec5 retary to constitute concurrence in

6 the implementation of the actions

7 proposed by the Secretary regarding

8 the inclusion of such items on the list.

9 ƒ(B)≈ (C) REQUIREMENT FOR VALIDATED

10 LICENSES.—Subject to the provisions of this title,

11 the Secretary shall require a validated license for

12 any export of commodities or technology on the

13 list established under subparagraph (A) to any

14 country of concern.

15 ƒ(C)≈ (D) COUNTRY OF CONCERN.—For

16 purposes of subparagraph (B), the term ‘‘country

17 of concern’’ means any country other than—

18 (i) a country with whose government

19 the United States has entered into a bilat20 eral or multilateral arrangement for the

21 control of commodities or technology on the

22 list established under subparagraph (A);

23 and

24 (ii) such other countries as the Sec25 retary of State, in consultation with the
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1 Secretary and the Secretary of Defense,

2 shall designate consistent with the purposes

3 of this section.

4 (2) ESTABLISHMENT OF MISSILE TECHNOLOGY

5 CONTROL LIST UNDER THIS TITLE.—

6 (A) The Secretaryƒ, in consultation with

7 the Secretary of State, the Secretary of Defense,

8 and the heads of other appropriate departments

9 and agencies≈—

10 (i) shall establish and maintain a list

11 of all dual use commodities and technology

12 on the MTCR Annex; and

13 (ii) may include on that list any com14 modities or technology that would provide a

15 direct and significant impact on the devel16 opment of missile delivery systems.

17 (B) ROLE OF OTHER DEPARTMENTS

18 AND AGENCIES.—The Secretary of De19 fense and the heads of other appro20 priate departments and agencies

21 shall identify goods and technology

22 for inclusion on the list referred to in

23 subparagraph (A). Those items which

24 the Secretary and the Secretary of

25 Defense concur shall be included on
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1 the list shall comprise the list. If the

2 Secretary and the Secretary of De3 fense are unable to concur on such

4 items, as determined by the Sec5 retary, the Secretary of Defense may,

6 within 20 days after receiving notifi7 cation of the Secretary’s determina8 tion, refer the matter to the President

9 for resolution. The Secretary of De10 fense shall notify the Secretary of any

11 such referral. The President shall, not

12 later than 20 days after such referral

13 notify the Secretary of his determina14 tion with respect to the inclusion of

15 such items on the list. Failure of the

16 Secretary of Defense to notify the

17 President or the Secretary, or failure

18 of the President to notify the Sec19 retary, in accordance with this para20 graph, shall be deemed by the Sec21 retary to constitute concurrence in

22 the implementation of the actions

23 proposed by the Secretary regarding

24 the inclusion of such items on the list.
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1 ƒ(B)≈ (C) REQUIREMENT OF INDIVIDUAL

2 VALIDATED LICENSES.—Subject to the provisions

3 of this title, the Secretary shall require an indi4 vidual 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, devel11 opment, or manufacture of a missile in a

12 country that is not an MTCR adherent.

13 ƒ(C)≈ (D) POLICY OF DENIAL OF LI14 CENSES.—(i) Licenses under subparagraph (B)

15 should in general be denied if the ultimate con16 signee of the commodities or technology is a fa17 cility in a country that is not an MTCR adher18 ent and the facility is designed to develop or

19 build missiles.

20 (ii) Licenses under subparagraph (B) shall

21 be denied if the ultimate consignee of the com22 modities or technology is a facility in a country

23 the government of which has been determined

24 under section 106(i)(1) to have repeatedly pro-
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1 vided support for acts of international terror2 ism.

3 ƒ(D)≈ (E) DEFINITION.—For purposes of

4 this paragraph, the term ‘‘MTCR adherent’’

5 means a country that participates in the MTCR

6 or that, pursuant to an international under7 standing to which the United States is a party,

8 controls MTCR equipment or technology in ac9 cordance with the criteria and standards set

10 forth in the MTCR.

11 (b) ESTABLISHMENT OF LISTS UNDER ARMS EXPORT

12 CONTROL ACT.—

13 (1) CHEMICAL AND BIOLOGICAL WEAPONS

14 LIST.—Section 81 of the Arms Export Control Act (22

15 U.S.C. 2798) is amended to read as follows:

16 ‘‘SEC. 81. ESTABLISHMENT OF CHEMICAL AND BIOLOGICAL

17 WEAPONS CONTROL LIST

18 ‘‘(a) IN GENERAL.—The Secretary of State, ƒin con19 sultation with the Secretary of Defense, and the heads of

20 other appropriate departments and agencies,≈ with the

21 concurrence of the Secretary of Defense, shall

22 establish and maintain, as part of the United States Muni23 tions List, a list of items, which shall include those items

24 controlled pursuant to multilateral export control regimes,

25 such as the Australia Group—
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1 ‘‘(1) that would directly and substantially assist

2 a foreign government, group, entity, or project in ac3 quiring the capability to develop, produce, stockpile,

4 or deliver chemical or biological weapons;

5 ‘‘(2) the licensing of which would be effective in

6 barring the acquisition or enhancement of such capa7 bility; and

8 ‘‘(3) the export of which is not subject to control

9 under section 111(a)(1) of the Export Act of 1994.

10 ‘‘(b) REQUIREMENT FOR VALIDATED LICENSES.—The

11 Secretary of State shall require a validated license for any

12 export of items on the list established under subsection (a).

13 ‘‘(c) DEFINITIONS.—For purposes of this section, the

14 terms ‘multilateral export control regime’ and ‘Australia

15 Group’ have the meanings given those terms in section 116

16 of the Export Act of 1994.’’.

17 (2) MISSILE TECHNOLOGY CONTROL LIST.—Sec18 tion 71 of the Arms Export Control Act (22 U.S.C.

19 2797) is amended to read as follows:

20 ‘‘SEC. 71. LICENSING.

21 ‘‘(a) ESTABLISHMENT OF MISSILE TECHNOLOGY CON22 TROL LIST.—The Secretary of State, ƒin consultation with

23 the Secretary of Defense and the heads of other appropriate

24 departments and agencies,≈ with the concurrence of

25 the Secretary of Defense, shall establish and main-
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1 tain a list of all items, which shall include those items listed

2 on the MTCR Annex, that would provide a direct and sig3 nificant impact on the development of missile delivery sys4 tems and the export of which is not subject to control under

5 section 111(a)(2) of the Export Act of 1994.

6 ‘‘(b) REQUIREMENT OF VALIDATED LICENSES.—The

7 Secretary shall require a validated license for—

8 ‘‘(1) any export of items on the list established

9 under subsection (a) to any country; and

10 ‘‘(2) any export of items that the exporter knows

11 is destined for a project or facility for the design, de12 velopment, or manufacture of a missile in a country

13 that is not an MTCR adherent.

14 ‘‘(c) POLICY OF DENIAL OF LICENSES.—

15 ‘‘(1) EXPORTS TO OTHER THAN MTCR ADHER16 ENTS.—Licenses under subsection (b) shall be denied

17 if the ultimate consignee of the items is a facility in

18 a country that is not an MTCR adherent and the fa19 cility is designed to develop or build missiles.

20 ‘‘(2) EXPORTS TO TERRORIST COUNTRIES.—Li21 censes under subsection (b) shall be denied if the ulti22 mate consignee of the items is a facility in a country

23 the government of which has been determined under

24 section 106(i)(1) of the Export Act of 1994 to have re-
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1 peatedly provided support for acts of international

2 terrorism.’’.

3 (c) SANCTIONS FOR ACTIVITIES SUPPORTING THE

4 PROLIFERATION OF CHEMICAL AND BIOLOGICAL WEAPONS

5 AND MISSILES.—

6 (1) VIOLATIONS BY UNITED STATES PERSONS.—

7 (A) If the President determines that a United States

8 person, on or after the date of the enactment of this

9 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) on

23 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 for

2 items controlled under section 105, or for items

3 controlled under section 106 that meet the re4 quirements of section 105(a)(1)(A) or (B), and

5 all export licenses under the Arms Export Con6 trol Act for items on the United States Muni7 tions List, shall be denied to the sanctioned en8 tity.

9 (ii) The United States Government shall not

10 procure, or enter into any contract for the pro11 curement of, any services, commodities, tech12 nology, or other products from or produced by

13 the sanctioned entity.

14 (C) In the case of a determination made under

15 subparagraph (A), the President may pursue any

16 penalty provided in section 38(c) of the Arms Export

17 Control Act.

18 (2) VIOLATIONS BY FOREIGN PERSONS.—(A) If

19 the President determines that a foreign person, on or

20 after the date of the enactment of this Act, with req21 uisite knowledge contributed to the efforts of any gov22 ernment, group, entity, or project to use, design, de23 velop, produce, stockpile, or otherwise acquire chemi24 cal or biological weapons or missiles—

25 (i) through the export or transfer of—
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1 (I) any item on the MTCR Annex,

2 whether or not of United States origin, or

3 (II) any item on the list established

4 under subsection (a)(1) of this section or

5 section 81(a) of the Arms Export Control

6 Act, whether or not of United States origin,

7 (ii) by conspiring or attempting to engage

8 in such export or transfer or,

9 (iii) by facilitating any export or transfer

10 described in clause (i) by any other person,

11 then the President shall impose, for a period of 2

12 years, the sanctions described in subparagraph (B) on

13 the entities described in paragraph (3).

14 (B) The sanctions referred to in subparagraph

15 (A) are the following:

16 (i) All export licenses under this title for

17 items controlled under section 105, or items con18 trolled under section 106 that meet the require19 ments of section 105(a)(1)(A) or (B), and all ex20 port licenses under the Arms Export Control Act

21 for items on the United States Munitions List,

22 shall be denied to the sanctioned entity.

23 (ii) The United States Government shall not

24 procure, or enter into any contract for the pro25 curement of, any services, commodities, tech-
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1 nology, or other products from or produced by

2 the sanctioned entity.

3 (iii) Imports of Ωall productsæ Ωprod4 uctsæ from or produced by the sanctioned en5 tity shall be prohibited.

6 (3) ENTITIES AGAINST WHICH SANCTIONS ARE

7 IMPOSED.—The President shall impose sanctions

8 under paragraphs (1) and (2) on—

9 (A) the person that committed the conduct

10 that is the subject of the determination giving

11 rise to the sanctions;

12 (B) any successor of a person or entity de13 scribed in subparagraph (A);

14 (C) any foreign person or United States

15 person that is a parent or subsidiary of a person

16 or entity described in subparagraph (A), if that

17 parent or subsidiary with requisite knowledge

18 assisted in the activities which are the basis of

19 that determination; and

20 (D) any foreign person or United States

21 person that is an affiliate of a person or entity

22 described in subparagraph (A), if that affiliate

23 with requisite knowledge assisted in the activities

24 which were the basis of that determination and
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1 if that affiliate is controlled in fact by that per2 son or entity.

3 For purposes of this section, any person or entity de4 scribed in subparagraph (A), (B), (C), or (D) shall be

5 referred to as a ‘‘sanctioned entity’’.

6 (4) EXEMPTION OF CERTAIN EXPORTS FROM

7 SANCTIONS.—The requirement in paragraph (1)(B)(i)

8 and (2)(B)(i) that licenses to export items controlled

9 under section 105 or 106 be denied shall not apply

10 to items which require individual validated licenses

11 solely by virtue of the imposition of controls under the

12 Enhanced Proliferation Control Initiative regulations

13 set forth in section 778.7(c) of title 15, Code of Fed14 eral Regulations.

15 (5) EXEMPTION FOR MTCR ADHERENTS.—

16 (A) EXEMPTION.—Paragraphs (1) and (2)

17 do not apply with respect to any export or trans18 fer—

19 (i) that is authorized by the laws of an

20 MTCR adherent, if such authorization is

21 not obtained by misrepresentation or fraud;

22 or

23 (ii) to an end user in a country that

24 is an MTCR adherent.
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1 (B) DEFINITION.—For purposes of this

2 paragraph, the term ‘‘MTCR adherent’’ has the

3 meaning given that term in subsection (a)(2)(D).

4 (6) CONSULTATION WITH AND ACTIONS BY FOR5 EIGN GOVERNMENT OF JURISDICTION.—

6 (A) CONSULTATIONS.—If the President

7 makes a determination described in paragraph

8 (2) with respect to a foreign person, the Congress

9 urges the President to initiate consultations im10 mediately with the government with primary ju11 risdiction over that foreign person with respect

12 to the imposition of sanctions pursuant to this

13 subsection.

14 (B) ACTIONS BY GOVERNMENT OF JURISDIC15 TION.—In order to pursue such consultations

16 with that government, the President may delay

17 imposition of sanctions pursuant to this sub18 section for up to 90 days. Following these con19 sultations, the President shall impose sanctions

20 unless the President determines and certifies to

21 the Congress that that government has taken spe22 cific and effective actions, including appropriate

23 penalties, to terminate the involvement of the for24 eign person in the activities described in para25 graph (2). The President may delay the imposi-
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1 tion of sanctions for up to an additional 90 days

2 if the President determines and certifies to the

3 Congress that that government is in the process

4 of taking the actions described in the preceding

5 sentence.

6 (C) REPORT TO CONGRESS.—Not later than

7 90 days after making a determination under

8 paragraph (2), the President shall submit to the

9 Committee on Foreign Relations and the Com10 mittee on Governmental Affairs of the Senate

11 and the Committee on Foreign Affairs of the

12 House of Representatives a report on the status

13 of consultations with the appropriate government

14 under this paragraph, and the basis for any de15 termination under subparagraph (B) that such

16 government has taken specific and effective ac17 tions.

18 (7) EFFECT OF ENFORCEMENT ACTIONS BY RE19 GIME ADHERENTS.—

20 (A) EXEMPTION FROM SANCTIONS.—Sanc21 tions set forth in paragraph (1) or (2) may not

22 be imposed under this subsection on a person

23 with respect to acts described in either such

24 paragraph or, if such sanctions are in effect

25 against a person on account of such acts, such
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1 sanctions shall be terminated, if the government

2 of a regime adherent other than the United

3 States is taking judicial or other enforcement ac4 tion against that person with respect to such

5 acts, or that person has been found by the gov6 ernment of a regime adherent to be innocent of

7 wrongdoing with respect to such acts.

8 (B) REGIME ADHERENT DEFINED.—For

9 purposes of subparagraph (A), a ‘‘regime adher10 ent’’ is a country that is a member of a multilat11 eral regime that controls the export or transfer

12 giving rise to the sanctions, or that, pursuant to

13 an international understanding to which the

14 United States is a party, controls the export or

15 transfer in accordance with the criteria and

16 standards set forth in the regime.

17 (8) REQUISITE KNOWLEDGE DEFINED.—For pur18 poses of this subsection, the term ‘‘requisite knowl19 edge’’ means situations in which a person ‘‘knows’’,

20 as ‘‘knowing’’ is defined in section 104 of the Foreign

21 Corrupt Practices Act of 1977 (15 U.S.C. 78dd–2).

22 (9) FOREIGN PERSON DEFINED FOR CERTAIN EX23 PORTS.—(A) For purposes of any determination

24 under paragraph (2)(A) with respect to an export or

25 transfer of an item on the MTCR Annex, the term
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1 ‘foreign person’, in addition to the meaning set forth

2 in section 116(13), means, in the case of countries

3 with nonmarket economies (other than former mem4 bers of the Warsaw Pact)—

5 (i) all activities of the government of any

6 such country relating to the development or pro7 duction of any missile equipment or technology;

8 and

9 (ii) all activities of that government affect10 ing the development or production of electronics,

11 space systems or equipment, and military air12 craft.

13 (B) As used in subparagraph (A), the term ‘‘mis14 sile equipment or technology’ means those items listed

15 in category I or II of the MTCR Annex.

16 (d) SANCTIONS AGAINST COUNTRIES FOR USE OF

17 CHEMICAL OR BIOLOGICAL WEAPONS.—

18 (1) DETERMINATION.—

19 (A IN GENERAL.—Whenever persuasive in20 formation becomes available to the executive

21 branch indicating the substantial possibility

22 that, on or after the date of the enactment of this

23 Act, the government of a foreign country has

24 made substantial preparation to use or has used

25 chemical or biological weapons in violation of
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1 international law or has used lethal chemical or

2 biological weapons against its own nationals, the

3 President shall, within 60 days after the receipt

4 of such information by the executive branch, de5 termine whether that government, on or after

6 such date of enactment, has used chemical or bio7 logical weapons in violation of international

8 law, or has used lethal chemical or biological

9 weapons against its own nationals.

10 (B) MATTERS TO BE CONSIDERED.—In

11 making the determination under subparagraph

12 (A), the President shall consider the following:

13 (i) All physical and circumstantial

14 evidence available bearing on the possible

15 use of chemical or biological weapons.

16 (ii) All information provided by al17 leged victims, witnesses, and independent

18 observers.

19 (iii) The extent of the availability of

20 the weapons in question to the purported

21 user.

22 (iv) All official and unofficial state23 ments bearing on the possible use of such

24 weapons.
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1 (v) Whether, and to what extent, the

2 government in question is willing to honor

3 a request from the Secretary General of the

4 United Nations to grant timely access to a

5 United Nations fact-finding team to inves6 tigate the possibility of chemical or biologi7 cal weapons use or to grant such access to

8 other legitimate outside parties.

9 (2) DETERMINATION TO BE REPORTED TO CON10 GRESS.—Upon making a determination under para11 graph (1), the President shall promptly report that

12 determination to the Congress. If the determination is

13 that a foreign government has used such weapons as

14 described in that paragraph, the report shall specify

15 the sanctions to be imposed pursuant to paragraph

16 (4).

17 (3) CONGRESSIONAL REQUESTS; REPORT.—

18 (A) REQUEST.—The Chairman of the Com19 mittee on Foreign Relations of the Senate (upon

20 consultation with the ranking minority member

21 of such committee) or the Chairman of the Com22 mittee on Foreign Affairs of the House of Rep23 resentatives (upon consultation with the ranking

24 minority member of such committee) may at any

25 time request the President to consider whether a
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1 particular foreign government, on or after the

2 date of the enactment of this Act, has used chem3 ical or biological weapons in violation of inter4 national law or has used lethal chemical or bio5 logical weapons against its own nationals.

6 (B) REPORT TO CONGRESS.—Not later than

7 60 days after receiving such a request, the Presi8 dent shall provide to the Chairman of the Com9 mittee on Foreign Relations of the Senate and

10 the Chairman of the Committee on Foreign Af11 fairs of the House of Representatives a written

12 report on the information held by the executive

13 branch which is pertinent to the issue of whether

14 the specified government, on or after the date of

15 the enactment of this Act, has used chemical or

16 biological weapons in violation of international

17 law or has used lethal chemical or biological

18 weapons against its own nationals. The report

19 under this subparagraph shall contain an analy20 sis of each of the items enumerated in paragraph

21 (1)(B).

22 (4) MANDATORY SANCTIONS FOR USE OF CHEMI23 CAL OR BIOLOGICAL WEAPONS.—The following sanc24 tions shall be imposed for a minimum of 2 years in

25 the event the President makes an affirmative deter-
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1 mination under paragraph (1) with respect to the

2 government of a foreign country:

3 (A) FOREIGN ASSISTANCE.—The United

4 States Government shall terminate assistance to

5 that country under the Foreign Assistance Act of

6 1961, except for urgent humanitarian assistance

7 and food or other agricultural commodities or

8 products.

9 (B) ARMS SALES.—The United States Gov10 ernment shall—

11 (i) terminate sales to that country

12 under the Arms Export Control Act of any

13 defense articles, defense services, or design

14 and construction services; and

15 (ii) terminate and deny licenses for the

16 export to that country of any item on the

17 United States Munitions list.

18 (C) ARMS SALES FINANCING.—The United

19 States Government shall terminate all foreign

20 military financing for that country under the

21 Arms Export Control Act.

22 (D) DENIAL OF UNITED STATES GOVERN23 MENT CREDIT OR OTHER FINANCIAL ASSIST24 ANCE.—The United States Government shall

25 deny to that country any credit, credit guaran-
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1 tees, or other financial assistance by any depart2 ment, agency, or instrumentality of the United

3 States Government, including the Export-Import

4 Bank of the United States.

5 (E) EXPORTS OF NATIONAL SECURITY-SEN6 SITIVE ITEMS.—The authorities of this title shall

7 be used to prohibit the export to that country of

8 any commodities or technology controlled or pro9 hibited for export under section 106(i).

10 ∆(F) IMPORTS.—There shall be a prohibi11 tion on the importation into the United States

12 of goods that are the growth, produce, or manu13 facture of that country in an amount equal to or

14 greater than the dollar value of exports prohib15 ited under subparagraph (E).«

16 Ω(F) IMPORTS.—There shall be a

17 prohibition on the importation into

18 the United States of goods that are

19 the growth, produce, or manufacture

20 of that country. The President shall

21 determine the type and volume of im22 ports to be prohibited, taking into

23 consideration the volume of exports

24 prohibited under subparagraph (E).æ
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1 (5) ADDITIONAL SANCTIONS IF CERTAIN CONDI2 TIONS NOT MET.—Unless, within 3 months after mak3 ing a determination under paragraph (1) with re4 spect 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 chem8 ical or biological weapons in violation of inter9 national law or using lethal chemical or biologi10 cal weapons against its own nationals,

11 (B) the government has provided reliable as12 surances that it will not, in the future, engage in

13 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 biologi19 cal 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 at

24 least 2 years the sanctions set forth in at least 3 of

25 subparagraphs (A) through (F) of paragraph (6).
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1 (6) ADDITIONAL SANCTIONS FOR USE OF CHEMI2 CAL OR BIOLOGICAL WEAPONS.—The sanctions re3 ferred to in paragraph (5) are the following:

4 (A) MULTILATERAL DEVELOPMENT BANK

5 ASSISTANCE.—The United States Government

6 shall oppose, in accordance with section 701 of

7 the International Financial Institutions Act (22

8 U.S.C. 262d), the extension of any loan or finan9 cial or technical assistance to the foreign country

10 by international financial institutions.

11 (B) BANK LOANS.—The United States Gov12 ernment shall prohibit any United States bank

13 from making any loan or providing any credit

14 to the government of that country, except for

15 loans or credits for the purpose of purchasing

16 food or other agricultural commodities or prod17 ucts.

18 (C) FURTHER RESTRICTIONS.—(i) The au19 thorities of this title shall be used to prohibit ex20 ports to that country of all items (except for

21 those items described in section 114(k)).

22 (ii) Restrictions shall be imposed on the im23 portation into the United States of goods (which

24 may include petroleum or any petroleum prod-
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1 uct) that are the growth, product, or manufac2 ture of that country.

3 (D) DIPLOMATIC RELATIONS.—The Presi4 dent shall use his constitutional authorities to

5 downgrade or suspend diplomatic relations be6 tween the United States and the government of

7 that country.

8 (E) PRESIDENTIAL ACTION REGARDING

9 AVIATION.—

10 (i)(I) The President is authorized to

11 notify the government of that country of his

12 intention to suspend the authority of foreign

13 air carriers owned or controlled by the gov14 ernment of that country to engage in for15 eign air transportation to or from the Unit16 ed States.

17 (II) Within 10 days after the date of

18 notification of a government under

19 subclause (I), the Secretary of Transpor20 tation shall take all steps necessary to sus21 pend at the earliest possible date the author22 ity of any foreign air carrier owned or con23 trolled, directly or indirectly, by that gov24 ernment to engage in foreign air transpor25 tation to or from the United States, not-
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1 withstanding any agreement relating to air

2 services.

3 (ii)(I) The President may direct the

4 Secretary of State to terminate any air

5 service agreement between the United States

6 and that country, in accordance with the

7 provisions of that agreement.

8 (II) Upon termination of an agreement

9 under this clause, the Secretary of Trans10 portation shall take such steps as may be

11 necessary to revoke at the earliest possible

12 date the right of any foreign air carrier

13 owned or controlled, directly or indirectly,

14 by the government of that country to engage

15 in foreign air transportation to or from the

16 United States.

17 (iii) The Secretary of Transportation

18 may provide for such exceptions from

19 clauses (i) and (ii) as the Secretary consid20 ers necessary to provide for emergencies in

21 which the safety of an aircraft or its crew

22 or passengers is threatened.

23 (iv) For purposes of this subparagraph,

24 the terms ‘‘air transportation’’, ‘‘air car25 rier’’, ‘‘foreign air carrier’’, and ‘‘foreign
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1 air transportation’’ have the meanings

2 given those terms in section 101 of the Fed3 eral Aviation Act of 1958 (49 U.S.C. App.

4 1301).

5 (e) REMOVAL OF SANCTIONS.—

6 (1) FOR VIOLATIONS UNDER SUBSECTION (c).—

7 The President shall remove the sanctions imposed

8 under paragraph (1) or (2) of subsection (c) if the

9 President determines and so certifies to the Congress,

10 after the end of the 12-month period beginning on the

11 date on which the sanctions were initially imposed,

12 that—

13 (A) reliable information indicates that—

14 (i) the United States person with re15 spect to which the determination was made

16 under subsection (c)(1) has ceased all activi17 ties that gave rise to the sanctions; or

18 (ii) the foreign person with respect to

19 which the determination was made under

20 subsection (c)(2) has ceased to contribute to

21 the efforts of any government, group, entity,

22 or project to use, design, develop, produce,

23 stockpile, or otherwise acquire chemical or

24 biological weapons or missiles; and
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1 (B) the President has received reliable as2 surances from that United States person or for3 eign person that such person will not, in the fu4 ture, perform any of the actions described in sub5 section (c)(1) or (2) (as the case may be).

6 (2) FOR VIOLATIONS UNDER SUBSECTION (d).—

7 The President shall remove the sanctions imposed

8 with respect to a country under paragraph (4) or (6)

9 of subsection (d) if the President determines and so

10 certifies to the Congress, after the end of the 12-month

11 period beginning on the date on which such sanctions

12 were initially imposed, that—

13 (A) the government of that country has pro14 vided reliable assurances that it will not use

15 chemical or biological weapons in violation of

16 international law and will not use lethal chemi17 cal or biological weapons against its own nation18 als;

19 (B) the government is not making prepara20 tions to use chemical or biological weapons in

21 violation of international law or to use lethal

22 chemical or biological weapons against its own

23 nationals;

24 (C) the government is willing to allow on25 site inspections by United Nations observers or
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1 other internationally recognized, impartial ob2 servers to verify that it is not making prepara3 tions to use chemical or biological weapons in

4 violation of international law or to use lethal

5 chemical or biological weapons against its own

6 nationals, or other reliable means exist to verify

7 that it is not making such preparations; and

8 (D) the government is making restitution to

9 those affected by any use of chemical or biologi10 cal weapons in violation of international law or

11 by any use of lethal chemical or biological weap12 ons against its own nationals.

13 Ω(3) AUTHORITY TO REVOKE IMPORT

14 SANCTIONS IN CERTAIN CIRCUMSTANCES.—

15 The President may revoke any import

16 sanction imposed under subsection (c) or

17 (d) if the President determines, as a re18 sult of applicable international dispute

19 settlement proceedings, that the imposi20 tion of such sanctions is inconsistent

21 with international legal obligations of the

22 United States and that it is appropriate

23 under the circumstances to comply with

24 such obligations.æ
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1 (f) WAIVERS FOR VIOLATIONS UNDER SUBSECTION

2 (c).—

3 (1) WAIVER.—The President may waive the im4 position of sanctions under paragraph (1) or (2) of

5 subsection (c) with respect to a product or service if

6 the President certifies to the Congress that—

7 (A) the product or service is essential to the

8 national security of the United States; and

9 (B) the sanctioned entity is a sole source

10 supplier of the product or service, the product or

11 service is not available from any alternative reli12 able supplier, and the need for the product or

13 service cannot be met in a timely manner by im14 proved manufacturing processes or technological

15 developments.

16 (2) ADDITIONAL WAIVER.—(A) The President

17 may waive the imposition of any sanction under sub18 section (c)(2) if the President determines such waiver

19 is essential to the national security of the United

20 States.

21 (B) If the President decides to apply the waiver

22 described in subparagraph (A), the President shall so

23 notify the Congress not less than 20 days before issu24 ing the waiver. Such notification shall include a re25 port fully articulating the rationale and cir-
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1 cumstances which led the President to exercise the

2 waiver authority.

3 (3) EXCEPTIONS.—The President shall not apply

4 the sanction under subsection (c)(2) prohibiting the

5 importation of the products of a sanctioned entity—

6 (A) in the case of procurement of defense ar7 ticles or defense services—

8 (i) under existing contracts or sub9 contracts, including the exercise of options

10 for production quantities to satisfy require11 ments essential to the national security of

12 the United States;

13 (ii) if the President determines that the

14 entity to which the sanctions would be ap15 plied is a sole source supplier of the defense

16 articles and services, that the defense arti17 cles or services are essential to the national

18 security of the United States, and that al19 ternative sources are not readily or reason20 ably available; or

21 (iii) if the President determines that

22 such articles or services are essential to the

23 national security of the United States under

24 defense coproduction agreements or Pro-
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1 grams of Cooperation of the North Atlantic

2 Treaty Organization;

3 (B) to products or services provided under

4 contracts entered into before the date on which

5 the President publishes his intention to impose

6 the sanctions; or

7 (C) to—

8 (i) spare parts;

9 (ii) components parts, but not finished

10 products, essential to United States prod11 ucts or production;

12 (iii) routine services and maintenance

13 of products, to the extent that alternative

14 sources are not readily or reasonably avail15 able; or

16 (iv) information or technology essential

17 to United States products or production.

18 (g) WAIVERS OF VIOLATIONS UNDER SUBSECTION

19 (d).—

20 (1) CRITERIA FOR WAIVER.—The President may

21 waive the application of any sanction imposed with

22 respect to a country under paragraph (4) or (6) of

23 subsection (d)—

24 (A) if—
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1 (i) in the case of any sanction other

2 than a sanction specified in subsection

3 (d)(4)(F) or (d)(6)(C)(ii) (relating to im4 port restrictions) or (d)(6)(D) (relating to

5 the downgrading or suspension of diplo6 matic relations), the President determines

7 and certifies to the Congress that such waiv8 er is essential to the national security inter9 ests of the United States, and the President

10 notifies the Committee on Foreign Relations

11 of the Senate and the Committee on Foreign

12 Affairs of the House of Representatives of

13 his determination and certification at least

14 15 days before the waiver takes effect, in ac15 cordance with the procedures applicable to

16 reprogramming notifications under section

17 634A of the Foreign Assistance Act of 1961;

18 or

19 (ii) in the case of any sanction speci20 fied in subsection (d)(4)(F) or (d)(6)(C)(ii)

21 (relating to import restrictions), the Presi22 dent determines and certifies to the Con23 gress that such waiver is essential to the na24 tional security interests of the United

25 States, and the President notifies the Com-
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1 mittee on Finance of the Senate and the

2 Committee on Ways and Means and the

3 Committee on Foreign Affairs of the House

4 of Representatives of his determination and

5 certification at least 15 days before the

6 waiver takes effect; or

7 (B) if the President determines and certifies

8 to the Congress that there has been a fundamen9 tal change in the leadership and policies of the

10 government of that country, and if the President

11 notifies the Congress at least 20 days before the

12 waiver takes effect.

13 (2) REPORT.—In the event that the President de14 cides to exercise the waiver authority provided in

15 paragraph (1) with respect to a country, the Presi16 dent’s notification to the Congress under such para17 graph shall include a report fully articulating the ra18 tionale and circumstances which led the President to

19 exercise that waiver authority, including a descrip20 tion of the steps which the government of that country

21 has taken to satisfy the conditions set forth in sub22 paragraphs (A) through (D) of subsection (e)(2).

23 (h) CONTRACT SANCTITY.—

24 (1) SANCTIONS NOT APPLIED TO EXISTING CON25 TRACTS.—(A) A sanction described in subparagraph
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1 (D), (E), or (F) of subsection (d)(4) or in any of sub2 paragraphs (A) through (C) of subsection (d)(6) shall

3 not apply to any activity pursuant to any contract

4 or international agreement entered into before the

5 date of the presidential determination under sub6 section (d)(1) unless the President determines, on a

7 case-by-case basis, that to apply such sanction to that

8 activity would prevent the performance of a contract

9 or agreement that would have the effect of assisting a

10 country in using chemical or biological weapons in

11 violation of international law or in using lethal

12 chemical or biological weapons against its own na13 tionals.

14 (B) The same restrictions of section 114(l) (relat15 ing to contract sanctity) which are applicable to ex16 ports prohibited under this title shall apply to exports

17 prohibited under subsection (d)(4)(E) or (d)(6)(C)(i).

18 For purposes of this subparagraph, any contract or

19 agreement the performance of which (as determined

20 by the President) would have the effect of assisting a

21 foreign government in using chemical or biological

22 weapons in violation of international law or in using

23 chemical or biological weapons against its own na24 tionals shall be treated as constituting a breach of the

25 peace that poses a serious and direct threat to the
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1 strategic interest of the United States, within the

2 meaning of subparagraph (A) of section 114(l)(2).

3 (2) SANCTIONS APPLIED TO EXISTING CON4 TRACTS.—The sanctions described in subparagraphs

5 (A), (B), and (C) of subsection (d)(4) shall apply to

6 contracts, agreements, and licenses without regard to

7 the date the contract or agreement was entered into

8 or the license was issued (as the case may be), except

9 that such sanctions shall not apply to any contract

10 or agreement entered into or license issued before the

11 date of the presidential determination under sub12 section (d)(1) if the President determines that the ap13 plication of such sanction would be detrimental to the

14 national security interests of the United States.

15 (i) PROTECTION OF CLASSIFIED INFORMATION.—To

16 the extent practicable, reports submitted under this section

17 should be based on unclassified information. Portions of

18 such reports may be classified.

19 SEC. 112. ADMINISTRATIVE AND JUDICIAL REVIEW.

20 (a) APPLICABILITY.—

21 (1) EXEMPTIONS FROM ADMINISTRATIVE PROCE22 DURE.—Except as provided in this section, sections

23 551 and 553 through 559 of title 5, United States

24 Code, do not apply to the functions exercised under

25 this title.
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1 (2) JUDICIAL REVIEW.—(A) Subject to subpara2 graphs (B) and (C) and except as otherwise provided

3 in this section, actions under this title shall be subject

4 to judicial review under chapter 7 of title 5, United

5 States Code.

6 (B) Any discretionary determination of whether

7 a commodity or technology should or should not be on

8 the control index shall not be subject to judicial re9 view.

10 (C) An action to obtain judicial review under

11 this subsection may be brought in the appropriate

12 United States district court.

13 (b) PROCEDURES RELATING TO CIVIL PENALTIES AND

14 SANCTIONS.—

15 (1) ADMINISTRATIVE PROCEDURES.—Any ad16 ministrative sanction imposed under section 110(c)

17 may be imposed only after notice and opportunity for

18 an agency hearing on the record in accordance with

19 sections 554 through 557 of title 5, United States

20 Code.

21 (2) AVAILABILITY OF CHARGING LETTER.—Any

22 charging letter or other document initiating adminis23 trative proceedings for the imposition of sanctions for

24 violations of the regulations issued under section
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1 108(a) shall be made available for public inspection

2 and copying.

3 (c) COLLECTION.—If any person fails to pay a civil

4 penalty imposed under section 110(c), the Secretary may

5 ask the Attorney General to bring a civil action in an ap6 propriate district court to recover the amount imposed (plus

7 interest at currently prevailing rates from the date of the

8 final order).

9 (d) IMPOSITION OF TEMPORARY DENIAL ORDERS.—

10 (1) GROUNDS FOR IMPOSITION.—In any case in

11 which there is reasonable cause to believe that a per12 son is engaged in or is about to engage in any act

13 or practice which constitutes or would constitute a

14 violation of this title, or any regulation, order, or li15 cense issued under this title, or in any case in which

16 a criminal indictment has been returned against a

17 person alleging a violation of this title or any of the

18 statutes listed in section 110(f), the Secretary may,

19 without a hearing, issue an order temporarily deny20 ing that person’s United States export privileges

21 (hereafter in this subsection referred to a ‘‘temporary

22 denial order’’). A temporary denial order may be ef23 fective for no longer than 180 days, but may be re24 newed by the Secretary, following notice and an op-
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1 portunity for a hearing, for additional periods of not

2 more than 180 days each.

3 (2) ADMINISTRATIVE APPEALS.—The person or

4 persons subject to the issuance or renewal of a tem5 porary denial order may appeal the issuance or re6 newal of the temporary denial order, supported by

7 briefs and other material, to an administrative law

8 judge who shall, within 15 working days after the ap9 peal is filed, issue a decision affirming, modifying, or

10 vacating the temporary denial order. The temporary

11 denial order shall be affirmed if it is shown that—

12 (A) there is reasonable cause to believe that

13 the person subject to the order is engaged in or

14 is about to engage in any act or practice which

15 constitutes or would constitute a violation of this

16 title, or any regulation, order, or license issued

17 under this title, or

18 (B) a criminal indictment has been re19 turned against the person subject to the order al20 leging a violation of this title or any of the stat21 utes listed in section 110(f).

22 The decision of the administrative law judge shall be

23 final unless, within 10 working days after the date of

24 the administrative law judge’s decision, an appeal is

25 filed with the Secretary. On appeal, the Secretary
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1 shall either affirm, modify, reverse, or vacate the deci2 sion of the administrative law judge by written order

3 within 10 working days after receiving the appeal.

4 The written order of the Secretary shall be final and

5 is not subject to judicial review, except as provided in

6 paragraph (3). The materials submitted to the admin7 istrative law judge and the Secretary shall constitute

8 the administrative record for purposes of review by

9 the court.

10 (3) COURT APPEALS.—An order of the Secretary

11 affirming, in whole or in part, the issuance or re12 newal of a temporary denial order may, within 15

13 days after the order is issued, be appealed by a person

14 subject to the order to the United States Court of Ap15 peals for the District of Columbia Circuit, which shall

16 have jurisdiction of the appeal. The court may review

17 only those issues necessary to determine whether the

18 issuance of the temporary denial order was based on

19 reasonable cause to believe that the person subject to

20 the order was engaged in or was about to engage in

21 any act or practice which constitutes or would con22 stitute a violation of this title, or any regulation,

23 order, or license issued under this title, or if a crimi24 nal indictment has been returned against the person

25 subject to the order alleging a violation of this title
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1 or any of the statutes listed in section 110(f). The

2 court shall vacate the Secretary’s order if the court

3 finds that the Secretary’s order is arbitrary, capri4 cious, an abuse of discretion, or otherwise not in ac5 cordance with law.

6 (e) APPEALS FROM LICENSING AND CLASSIFICATION

7 ACTIONS.—

8 (1) LICENSE DENIALS.—A determination of the

9 Secretary under section 109 to deny a license may be

10 appealed by the applicant to an administrative law

11 judge who shall have the authority to conduct proceed12 ings to determine only whether the item sought to be

13 exported is in fact on the control list. Such proceed14 ings shall be conducted within 90 days after the ap15 peal is filed. Any determination by an administrative

16 law judge under this subsection and all materials

17 filed before such judge in the proceedings shall be re18 viewed by the Secretary, who shall either affirm or

19 vacate the determination in a written decision within

20 30 days after receiving the determination.

21 (2) CLASSIFICATION DECISIONS.—(A) Within 30

22 days after the issuance of a classification decision

23 under section ƒ109(h)(1)≈ 109(i)(1), or within 30

24 days after the failure to issue such a classification de25 cision in response to a request for such a decision,
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1 any United States person aggrieved by such decision

2 or failure may file an appeal thereof to an adminis3 trative law judge, but only on issues regarding such

4 classification decision including, but not limited to,

5 decisions of whether an item is covered by any gen6 eral or specific note. The administrative law judge

7 may not review determinations as to the reliability of

8 an end user or the nature of an end use or end user.

9 The administrative law judge shall, within 90 days

10 after such appeal is filed, issue his or her decision

11 and issue any order that is necessary or appropriate

12 to carry out such decision. Such order shall be bind13 ing upon the Secretary unless and until vacated or

14 modified 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 ap17 peal under subparagraph (B).

18 (B) Any United States person aggrieved by a de19 cision of the administrative law judge under subpara20 graph (A) may appeal such decision to the Secretary

21 within 45 days after receiving notification of such de22 cision. The Secretary shall, in a written order, affirm,

23 modify, or vacate the decision of the administrative

24 law judge within 30 days after such appeal is filed.

25 The authority of the Secretary under this paragraph
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1 may not be delegated to an officer or employee of the

2 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 pro11 vided in this subsection, proceedings under this sub12 section shall be conducted in accordance with sections

13 554 (notwithstanding subsection (a)(4) of such sec14 tion), 556, and 557 of title 5, United States Code.

15 (5) REGULATIONS.—The Secretary shall issue

16 such regulations as are necessary to carry out this

17 subsection.

18 (6) OTHER RIGHTS NOT AFFECTED.—The rights

19 granted by this subsection do not abridge any other

20 rights provided by law.

21 (7) EFFECTIVE DATE.—This subsection shall take

22 effect 120 days after the date of the enactment of this

23 Act. Regulations implementing this subsection shall be

24 promulgated no later than such effective date.
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1 SEC. 113. ENFORCEMENT.

2 (a) GENERAL AUTHORITY AND DESIGNATION.—

3 (1) POLICY GUIDANCE ON ENFORCEMENT.—The

4 Secretary, in consultation with the Secretary of the

5 Treasury and the heads of other appropriate depart6 ments and agencies, shall be responsible for providing

7 policy guidance on the enforcement of this title.

8 (2) GENERAL AUTHORITIES.—(A) To the extent

9 necessary or appropriate to the enforcement of this

10 title or to the imposition of any penalty, forfeiture,

11 or liability arising under the Export Administration

12 Act of 1979, officers or employees of the Department

13 of Commerce designated by the Secretary and officers

14 and employees of the United States Customs Service

15 designated by the Commissioner may exercise the en16 forcement authorities described in paragraph (3).

17 (B) In carrying out the enforcement authorities

18 described in paragraph (3), the Commissioner of Cus19 toms, and employees of the United States Customs

20 Service designated by the Commissioner, may make

21 investigations within or outside the United States

22 and at those ports of entry or exit from the United

23 States where officers of the United States Customs

24 Service are authorized by law to carry out such en25 forcement responsibilities. Subject to paragraph (3),

26 the United States Customs Service is authorized, in
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1 the enforcement of this title, to search, detain (after

2 search), and seize commodities or technology at those

3 ports of entry or exit from the United States where

4 officers of the Customs Service are authorized by law

5 to conduct such searches, detentions, and seizures, and

6 at those places outside the United States where the

7 Customs Service, pursuant to agreements or other ar8 rangements with other countries, is authorized to per9 form enforcement activities.

10 (C) In carrying out the enforcement authorities

11 described in paragraph (3), the Secretary, and officers

12 and employees of the Department of Commerce des13 ignated by the Secretary, may make investigations

14 within the United States, and shall conduct, outside

15 the United States, pre-license and post-shipment ver16 ifications of items licensed for export and investiga17 tions in the enforcement of section 108. The Secretary,

18 and officers and employees of the Department of Com19 merce designated by the Secretary, are authorized to

20 search, detain (after search), and seize items at those

21 places within the United States other than those ports

22 and borders specified in subparagraph (B). The

23 search, detention (after search), or seizure of items at

24 those ports and borders specified in subparagraph (B)

25 may be conducted by officers and employees of the De-
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1 partment of Commerce only with the concurrence of

2 the Commissioner of Customs or a person designated

3 by the Commissioner.

4 (D) The Secretary and the Commissioner of Cus5 toms may enter into agreements and arrangements

6 for the enforcement of this title, including foreign in7 vestigations and information exchange.

8 (3) SPECIFIC AUTHORITIES.—(A) Any officer or

9 employee designated under paragraph (2) may do the

10 following in carrying out the enforcement authority

11 under this title:

12 (i) Make investigations of, obtain informa13 tion from, make inspection of any books, records,

14 or reports (including any writings required to be

15 kept by the Secretary), premises, or property of,

16 and take the sworn testimony of, any person.

17 (ii) Administer oaths or affirmations, and

18 by subpoena require any person to appear and

19 testify or to appear and produce books, records,

20 and other writings, or both. In the case of contu21 macy by, or refusal to obey a subpoena issued to,

22 any such person, a district court of the United

23 States, after notice to any such person and a

24 hearing, shall have jurisdiction to issue an order

25 requiring such person to appear and give testi-
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1 mony or to appear and produce books, records,

2 and other writings, or both. Any failure to obey

3 such order of the court may be punished by such

4 court as a contempt thereof.

5 (B) Any officer or employee of the Office of Ex6 port Enforcement of the Department of Commerce

7 who is designated by the Secretary under paragraph

8 (2), and any officer or employee of the United States

9 Customs Service who is designated by the Commis10 sioner of Customs under paragraph (2), may do the

11 following in carrying out the enforcement authority

12 under this title:

13 (i) Execute any warrant or other process is14 sued by a court or officer of competent jurisdic15 tion with respect to the enforcement of this title.

16 (ii) Make arrests without warrant for any

17 violation of this title committed in his or her

18 presence or view, or if the officer or employee has

19 probable cause to believe that the person to be ar20 rested has committed, is committing, or is about

21 to commit such a violation.

22 (iii) Carry firearms.

23 (C) Any officer or employee of the United States

24 Customs Service designated by the Commissioner of

25 Customs under paragraph (2) may do the following
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1 in carrying out the enforcement authority under this

2 title:

3 (i) Stop, search, and examine a vehicle, ves4 sel, aircraft, or person on which or whom the of5 ficer or employee has reasonable cause to suspect

6 there is any item that has been, is being, or is

7 about to be exported from or transited through

8 the United States in violation of this title.

9 (ii) Detain and search any package or con10 tainer in which the officer or employee has rea11 sonable cause to suspect there is any item that

12 has been, is being, or is about to be exported

13 from or transited through the United States in

14 violation of this title.

15 (D) Any officer or employee designated under

16 paragraph (2) may detain (after search under sub17 paragraph (C)) or seize any item, for purposes of se18 curing for trial or forfeiture to the United States, on

19 or about a vehicle, vessel, aircraft, or person described

20 in subparagraph (C)(i), or in a package or container

21 described in subparagraph (C)(ii), if the officer or

22 employee has probable cause to believe the item has

23 been, is being, or is about to be exported from or

24 transited through the United States in violation of

25 this title.
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1 (4) OTHER AUTHORITIES NOT AFFECTED.—The

2 authorities conferred by this section are in addition

3 to any authorities conferred under other laws.

4 (b) FORFEITURE.—All commodities or tangible items

5 lawfully seized under subsection (a) by designated officers

6 or employees shall be subject to forfeiture to the United

7 States. Those provisions of law relating to—

8 (1) the seizure, summary and judicial forfeiture,

9 and condemnation of property for violations of the

10 customs laws,

11 (2) the disposition of such property or the pro12 ceeds from the sale thereof,

13 (3) the remission or mitigation of such forfeit14 ures, and

15 (4) the compromise of claims,

16 shall apply to seizures and forfeitures incurred, or alleged

17 to have been incurred, under the provisions of this sub18 section, insofar as applicable and not inconsistent with this

19 title; except that such duties as are imposed upon the cus20 toms officer or any other person with respect to the seizure

21 and forfeiture of property under the customs laws may be

22 performed with respect to seizures and forfeitures of prop23 erty under this subsection by the Secretary or such officers

24 and employees of the Department of Commerce as may be

25 authorized or designated for that purpose by the Secretary,
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1 or, upon the request of the Secretary, by any other agency

2 that has authority to manage and dispose of seized prop3 erty.

4 (c) REFERRAL OF CASES.—All cases involving viola5 tions of this title shall be referred to the Secretary for pur6 poses of determining civil penalties and administrative

7 sanctions under section 110(c), or to the Attorney General

8 for criminal action in accordance with this title.

9 (d) UNDERCOVER INVESTIGATION OPERATIONS.—

10 (1) USE OF FUNDS.—With respect to any under11 cover investigative operation conducted by the Office

12 of Export Enforcement of the Department of Com13 merce (hereafter in this subsection referred to as

14 ‘‘OEE’’) necessary for the detection and prosecution of

15 violations of this title—

16 (A) funds made available for export enforce17 ment under this title may be used to purchase

18 property, buildings, and other facilities, and to

19 lease space within the United States, without re20 gard to sections 1341 and 3324 of title 31, Unit21 ed States Code, the third undesignated para22 graph under the heading of ‘‘MISCELLANEOUS’’ of

23 the Act of March 3, 1877, (40 U.S.C. 34), sec24 tions 3732(a) and 3741 of the Revised Statutes

25 of the United States (41 U.S.C. 11(a) and 22),
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1 and subsections (a) and (c) of section 304, and

2 section 305 of the Federal Property and Admin3 istrative Services Act of 1949 (41 U.S.C. 254(a)

4 and (c) and 255),

5 (B) funds made available for export enforce6 ment under this title may be used to establish or

7 to acquire proprietary corporations or business

8 entities as part of an undercover operation, and

9 to operate such corporations or business entities

10 on a commercial basis, without regard to section

11 9102 of title 31, United States Code,

12 (C) funds made available for export enforce13 ment under this title and the proceeds from un14 dercover operations may be deposited in banks or

15 other financial institutions without regard to the

16 provisions of section 648 of title 18, United

17 States Code, and section 3302 of title 31, United

18 States Code, and

19 (D) the proceeds from undercover operations

20 may be used to offset necessary and reasonable

21 expenses incurred in such operations without re22 gard to the provisions of section 3302 of title 31,

23 United States Code,

24 if the Director of OEE (or an officer or employee des25 ignated by the Director) certifies, in writing, that the
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1 action authorized by subparagraph (A), (B), (C), or

2 (D) for which the funds would be used is necessary for

3 the conduct of the undercover operation.

4 (2) DISPOSITION OF BUSINESS ENTITIES.—If a

5 corporation or business entity established or acquired

6 as part of an undercover operation with a net value

7 of more than $50,000 is to be liquidated, sold, or oth8 erwise disposed of, the Director of OEE shall report

9 the circumstances to the Secretary and the Comptrol10 ler General, as much in advance of such disposition

11 as the Director of OEE or his or her designee deter12 mines is practicable. The proceeds of the liquidation,

13 sale, or other disposition, after obligations incurred

14 by the corporation or business enterprise are met,

15 shall be deposited in the Treasury of the United

16 States as miscellaneous receipts.

17 (3) DEPOSIT OF PROCEEDS.—As soon as the pro18 ceeds from an OEE undercover investigative oper19 ation with respect to which an action is authorized

20 and carried out under this subsection are no longer

21 necessary for the conduct of such operation, such pro22 ceeds or the balance of such proceeds remaining at the

23 time shall be deposited into the Treasury of the Unit24 ed States as miscellaneous receipts.
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1 (4) AUDIT AND REPORT.—(A) The Director of

2 OEE shall conduct a detailed financial audit of each

3 OEE undercover investigative operation which is

4 closed and shall submit the results of the audit in

5 writing to the Secretary. Not later than 180 days

6 after an undercover operation is closed, the Secretary

7 shall submit to the Congress a report on the results

8 of the audit.

9 (B) The Secretary shall submit annually to the

10 Congress a report, which may be included in the an11 nual report under section 115, specifying the follow12 ing information:

13 (i) The number of undercover investigative

14 operations pending as of the end of the period for

15 which such report is submitted.

16 (ii) The number of undercover investigative

17 operations commenced in the 1-year period pre18 ceding the period for which such report is sub19 mitted.

20 (iii) The number of undercover investigative

21 operations closed in the 1-year period preceding

22 the period for which such report is submitted

23 and, with respect to each such closed undercover

24 operation, the results obtained and any civil

25 claims made with respect thereto.
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1 (5) DEFINITIONS.—For purposes of paragraph

2 (4)—

3 (A) the term ‘‘closed’’, with respect to an

4 undercover investigative operation, refers to the

5 earliest point in time at which all criminal pro6 ceedings (other than appeals) pursuant to the in7 vestigative operation are concluded, or covert ac8 tivities pursuant to such operation are con9 cluded, whichever occurs later;

10 (B) the terms ‘‘undercover investigative op11 eration’’ and ‘‘undercover operation’’ mean any

12 undercover investigative operation conducted by

13 OEE—

14 (i) in which the gross receipts (exclud15 ing interest earned) exceed $25,000, or ex16 penditures (other than expenditures for sal17 aries of employees) exceed $75,000, and

18 (ii) which is exempt from section 3302

19 or 9102 of title 31, United States Code,

20 except that clauses (i) and (ii) shall not apply

21 with respect to the report to the Congress re22 quired by subparagraph (B) of paragraph (4);

23 and
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1 (C) the term ‘‘employees’’ means employees,

2 as defined in section 2105 of title 5, United

3 States Code, of the Department of Commerce.

4 (e) REFERENCE TO ENFORCEMENT.—For purposes of

5 this section, a reference to the enforcement of this title or

6 to a violation of this title includes a reference to the enforce7 ment or a violation of any regulation, license, or order is8 sued under this title.

9 SEC. 114. EXPORT CONTROL AUTHORITIES AND PROCE10 DURES.

11 (a) POLICY GUIDANCE.—

12 (1) IN GENERAL.—As directed by the President,

13 annual policy guidance shall be issued to provide de14 tailed implementing guidance to export licensing offi15 cials in all appropriate departments and agencies.

16 (2) ELEMENTS OF ANNUAL POLICY REVIEW.—In

17 order to develop such annual policy guidance, export

18 controls and other regulations to implement this title

19 shall be reviewed annually. This annual policy review

20 shall include an evaluation of the benefits and costs

21 of the imposition, extension, or removal of controls

22 under this title. This review shall include—

23 (A) an assessment by the Secretary of the

24 economic consequences of the imposition, exten25 sion, or removal of controls during the preceding
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1 12 months, including the impact on United

2 States exports or jobs;

3 (B) an assessment by the Secretary of State

4 of the objectives of the controls in effect during

5 the preceding 12 months, and the extent to which

6 the controls have served those objectives; and

7 (C) an assessment by the Secretary of De8 fense of the impact that the imposition, exten9 sion, or removal of controls during the preceding

10 12 months has had on United States national se11 curity.

12 (b) EXPORT CONTROL AUTHORITY AND FUNCTIONS.—

13 (1) IN GENERAL.—Unless otherwise reserved to

14 the President or a department or agency outside the

15 Department of Commerce, all power, authority, and

16 discretion conferred by this title shall be exercised by

17 the Secretary.

18 (2) DELEGATION OF FUNCTIONS OF THE SEC19 RETARY.—The Secretary may delegate any function

20 under this title to the Under Secretary of Commerce

21 for Export Administration appointed under sub22 section (d) or to any other officer of the Department

23 of Commerce.

24 (c) EXPORT CONTROL POLICY COMMITTEE.—
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1 (1) ESTABLISHMENT.—There is established an

2 Export Control Policy Committee (hereafter in this

3 subsection referred to as the ‘‘Committee’’).

4 (2) FUNCTIONS.—The Committee shall—

5 (A) provide policy guidance and advice to

6 the President on export control issues under this

7 title;

8 (B) review policy recommendations pro9 posed by the Secretary and other members of the

10 Committee; and

11 (C) receive policy recommendations from

12 other agencies and resolve any policy disputes

13 among departments and agencies under this

14 title.

15 (3) MEMBERSHIP.—The Committee shall be com16 prised of—

17 (A) the Secretary;

18 (B) the Secretary of Defense;

19 (C) the Secretary of Energy;

20 (D) the Secretary of State;

21 (E) the National Security Adviser;

22 (F) the National Economic Adviser;

23 (G) the Secretary of the Treasury;

24 (H) the United States Trade Representative;

25 and
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1 (I) the Director of the Arms Control and

2 Disarmament Agency.

3 (4) CHAIR.—The Committee shall be jointly

4 chaired by the National Economic Adviser and the

5 National Security Adviser.

6 (5) DELEGATION; OTHER REPRESENTATIVES.—A

7 member of the Committee under paragraph (3) may

8 designate the deputy head of his or her department or

9 agency to serve in his or her absence as a member of

10 the Committee, but this authority may not be dele11 gated to any other individual. The Chairs may also

12 invite the temporary participation in the Committee’s

13 meetings of representatives from other offices and

14 agencies as appropriate to the issues under consider15 ation.

16 (6) MEETINGS.—The Secretary or either Chair of

17 the Committee may call a meeting of the Committee.

18 Meetings shall not be subject to section 552b of title

19 5, United States Code.

20 (d) UNDER SECRETARY OF COMMERCE; ASSISTANT

21 SECRETARIES.—

22 (1) APPOINTMENT.—The President shall appoint,

23 by and with the advice and consent of the Senate, an

24 Under Secretary of Commerce for Export Administra25 tion who shall carry out all functions of the Secretary
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1 under this title and other provisions of law relating

2 to national security, as the Secretary may delegate.

3 The President shall appoint, by and with the advice

4 and consent of the Senate, two Assistant Secretaries

5 of Commerce to assist the Under Secretary in carry6 ing out such functions.

7 (2) TRANSITION PROVISIONS.—Those individuals

8 serving in the positions of Under Secretary of Com9 merce for Export Administration and Assistant Sec10 retaries of Commerce under section 15(a) of the Ex11 port Administration Act of 1979, on the day before

12 the date of the enactment of this Act, shall be deemed

13 to have been appointed under paragraph (1) as of

14 such date of enactment.

15 (e) ISSUANCE OF REGULATIONS.—The President and

16 the Secretary may issue such regulations as are necessary

17 to carry out this title. Any such regulations the purpose

18 of which is to carry out section 105 or 106 may be issued

19 only after the regulations are submitted for review to such

20 departments or agencies as the President considers appro21 priate, and to any appropriate export advisory committee

22 appointed under section 104(f). The preceding sentence does

23 not require the concurrence or approval of any official, de24 partment, or agency to which such regulations are submit25 ted.
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1 (f) AMENDMENTS TO REGULATIONS.—If the Secretary

2 proposes to amend regulations issued under this title, the

3 Secretary shall report to the Committee on Banking, Hous4 ing, and Urban Affairs of the Senate and the Committee

5 on Foreign Affairs of the House of Representatives on the

6 intent and rationale of such amendments. Such report shall

7 evaluate the cost and burden to the United States exporters

8 of the proposed amendments in relation to any enhance9 ment of licensing objectives. The Secretary shall consult

10 with the appropriate export advisory committees appointed

11 under section 104(f) in formulating or amending regula12 tions issued under this title.

13 (g) CONFIDENTIALITY OF INFORMATION.—

14 (1) EXEMPTIONS FROM DISCLOSURE.—

15 (A) Except as otherwise provided by the

16 third sentence of section 108(b)(2), information

17 obtained under the Export Administration Act of

18 1979 and its predecessor statutes on or before

19 June 30, 1980, which is deemed confidential, in20 cluding Shipper’s Export Declarations, or with

21 reference to which a request for confidential

22 treatment is made by the person furnishing such

23 information, shall be exempt from disclosure

24 under section 552 of title 5, United States Code,

25 and such information shall not be published or
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1 disclosed unless the Secretary determines that the

2 withholding thereof is contrary to the national

3 interest.

4 (B) Except as otherwise provided by the

5 third sentence of section 108(b)(2), information

6 obtained under this title or under the Export Ad7 ministration Act of 1979 after June 30, 1980,

8 may be withheld from disclosure only to the ex9 tent permitted by statute, except that informa10 tion submitted, obtained, or considered in con11 nection with an application for an export license

12 or other export authorization under the Export

13 Administration Act of 1979 or this title, includ14 ing the export license or other export authoriza15 tion itself, classification requests described in sec16 tion 109(h)(1), information obtained during the

17 course of a foreign availability assessment, infor18 mation or evidence obtained in the course of any

19 investigation, and information obtained or fur20 nished under this title in connection with inter21 national agreements, treaties, or obligations shall

22 be withheld from public disclosure unless the re23 lease of such information is determined by the

24 Secretary to 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 withholding

3 of information from the Congress or from the

4 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 subcommittee

12 of Congress of appropriate jurisdiction upon

13 the request of the chairman or ranking mi14 nority member of such committee or sub15 committee.

16 (ii) PROHIBITION ON FURTHER DIS17 CLOSURE.—No committee, subcommittee, or

18 Member of Congress shall disclose any infor19 mation obtained under this title or previous

20 Acts regarding the control of exports which

21 is submitted on a confidential basis to the

22 Congress under clause (i) unless the full

23 committee to which the information is made

24 available determines that the withholding of
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1 the information is contrary to the national

2 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 the

7 protection of intelligence, counterintel8 ligence, and law enforcement sources, meth9 ods, and activities, as determined by the

10 agency that originally obtained the infor11 mation, and consistent with the provisions

12 of section 716 of title 31, United States

13 Code, be made available only by the agency,

14 upon request, to the Comptroller General of

15 the United States or to any officer or em16 ployee of the General Accounting Office au17 thorized by the Comptroller General to have

18 access to such information.

19 (ii) PROHIBITION ON FURTHER DIS20 CLOSURES.—No officer or employee of the

21 General Accounting Office shall disclose, ex22 cept to the Congress in accordance with this

23 paragraph, any such information which is

24 submitted on a confidential basis and from

25 which any individual can be identified.
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1 (3) INFORMATION EXCHANGE.—Notwithstanding

2 paragraph (1), the Secretary and the Commissioner of

3 Customs shall exchange licensing and enforcement in4 formation with each other which is necessary to facili5 tate enforcement efforts and effective license decisions.

6 (4) PENALTIES FOR DISCLOSURE OF CONFIDEN7 TIAL INFORMATION.—Any officer or employee of the

8 United States, or any department or agency thereof,

9 who publishes, divulges, discloses, or makes known in

10 any manner or to any extent not authorized by law

11 any information that—

12 (A) he or she obtains in the course of his or

13 her employment or official duties or by reason of

14 any examination or investigation made by, or

15 report or record made to or filed with, such de16 partment or agency, or officer or employee there17 of, and

18 (B) is exempt from disclosure under this

19 subsection,

20 shall be fined not more than $10,000, or imprisoned

21 not more than one year, or both, shall be removed

22 from office or employment, and shall be subject to a

23 civil penalty of not more than $1,000 imposed by the

24 Secretary under section 110(c).
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1 (h) AUTHORITY FOR SEMINAR AND PUBLICATIONS

2 FUND.—The Secretary is authorized to cooperate with pub3 lic agencies, other governments, international organiza4 tions, private individuals, private associations, and other

5 groups in connection with seminars, publications, and re6 lated activities to carry out export activities, including edu7 cating the public or government officials on the application

8 of this title and the regulations issued under this title. The

9 Secretary is further authorized to accept contributions of

10 funds, property, or services in connection with such activi11 ties to recover the cost of such programs and activities. Con12 tributions may include payments for materials or services

13 provided as part of such activities. The contributions col14 lected may be retained for use in covering the costs of such

15 activities, and for providing information to the public with

16 respect to this title and other export control programs of

17 the United States and other governments.

18 (i) SUPPORT OF OTHER COUNTRIES’ EXPORT CON19 TROL PROGRAM.—The Secretary is authorized to provide

20 training to officials of other countries on the principles and

21 procedures for the implementation of effective export con22 trols and shall participate in any such training provided

23 by other departments and agencies of the United States.

24 (j) INCORPORATED COMMODITIES AND TECH25 NOLOGY.—
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1 (1) COMMODITIES CONTAINING CONTROLLED

2 PARTS AND COMPONENTS.—Export licenses may not

3 be required under this title or any other provision of

4 law for a commodity solely because the commodity

5 contains parts or components on which export con6 trols are in effect under this title if such parts or

7 components—

8 (A) are essential to the functioning of the

9 commodity;

10 (B) are customarily included in sales of the

11 commodity in countries other than controlled

12 countries; and

13 (C) comprise 25 percent or less of the total

14 value of the commodity,

15 unless the commodity itself, if exported, would by vir16 tue of the functional characteristics of the commodity

17 as a whole meet the requirements of subparagraph (A)

18 or (B) of section 105(a)(1).

19 (2) REEXPORTS OF FOREIGN-MADE ITEMS INCOR20 PORATING U.S. ITEMS.—

21 (A) COMMODITIES.—(i) Subject to clause

22 (ii), no authority or permission may be required

23 under section 105 or 106 to reexport a commod24 ity that is produced in a country other than the

25 United States and incorporates commodities that
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1 are subject to the jurisdiction of the United

2 States, if the value of the controlled United

3 States content of the commodity produced in

4 such other country is 25 percent or less of the

5 total value of the commodity.

6 (ii) No authority or permission may be re7 quired under section 106 to reexport to a terror8 ist country, or to a country against which an

9 embargo described in section 106(f)(1) is in ef10 fect, a commodity that is produced in a country

11 other than the United States and incorporates

12 commodities that are subject to the jurisdiction

13 of the United States, if the value of the controlled

14 United States content of the commodity produced

15 in such other country is 10 percent or less of the

16 total value of the commodity.

17 (iii) For purposes of clause (ii), a ‘‘terrorist

18 country’’ is a country with respect to which a

19 determination is in effect that was made under

20 section 106(i)(1)(A) of this Act, or section

21 6(j)(1)(A) of the Export Administration Act of

22 1979, that the government of such country has

23 repeatedly provided support for acts of inter24 national terrorism.
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1 (B) TECHNOLOGY.—(i) No authority or per2 mission may be required under section 105 to re3 export technology that is produced in a country

4 other than the United States and is commingled

5 with or drawn from technology that is produced

6 in the United States, if the value of the con7 trolled United States content of the technology

8 produced in such other country is 25 percent or

9 less of the total value of the technology.

10 (ii) No authority or permission may be re11 quired under section 106 to reexport technology

12 that is produced in a country other than the

13 United States and is commingled with or drawn

14 from technology that is produced in the United

15 States, if the value of the controlled United

16 States content of the technology produced in such

17 other country is 10 percent or less of the total

18 value of the technology.

19 (C) CONTROLLED CONTENT.—For purposes

20 of this paragraph, the ‘‘controlled United States

21 content’’ of a commodity or technology means

22 those commodities or technology that—

23 (i) are subject to the jurisdiction of the

24 United States;
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1 (ii) are incorporated into the commod2 ity or technology; and

3 (iii) would, at the time of the reexport,

4 require a validated license under section

5 105 or 106 if exported from the United

6 States to a country to which the commodity

7 or technology is to be reexported.

8 (D) TREATMENT OF CERTAIN TECHNICAL

9 DATA.—For purposes of this subsection, tech10 nology and source code used to design or produce

11 commodities or software produced in a country

12 other than the United States are not incor13 porated into such commodities or software.

14 (k) EXCEPTIONS FOR MEDICAL AND HUMANITARIAN

15 PURPOSES.—This title does not authorize controls on—

16 (1) medicine or medical supplies; or

17 (2) donations of items that are intended to meet

18 basic human needs, including food, educational mate19 rials, seeds, hand tools, water resources equipment,

20 clothing and shelter materials, and basic household

21 supplies.

22 (l) SANCTITY OF EXISTING CONTRACTS AND LI23 CENSES.—

24 (1) IN GENERAL.—The President may not pro25 hibit the export of items under section 105 or 106—
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1 (A) in performance of a contract, agree2 ment, or other contractual commitment entered

3 into before the effective date of any export con4 trols imposed on such items by this title, or the

5 date on which the President reports to the Con6 gress the President’s intention to impose controls

7 on the export of such items, whichever date oc8 curs first, or

9 (B) under a validated license or other au10 thorization issued under this title before the effec11 tive date of any export controls imposed on such

12 items by this title, or the date on which the

13 President reports to the Congress the President’s

14 intention to impose controls on the export of such

15 items, whichever date occurs first.

16 (2) EXCEPTION.—The prohibition in paragraph

17 (1) shall not apply if the President determines and

18 certifies to the Congress that—

19 (A) a breach of the peace poses a serious

20 and direct threat to the strategic interest of the

21 United States;

22 (B) the prohibition of exports under each

23 such contract, agreement, commitment, license,

24 or authorization will be directly instrumental in
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1 remedying the situation posing the direct threat;

2 and

3 (C) the export controls will continue only so

4 long as the direct threat persists.

5 The authority of the President to make determina6 tions under this paragraph may not be delegated.

7 (m) PUBLICATION OF ACTIONS.—

8 (1) DECISIONS AND ACTIONS OF THE SEC9 RETARY.—

10 (A) IN GENERAL.—The Secretary shall pub11 lish in the Federal Register, to the greatest extent

12 practicable, actions, procedures, and decisions of

13 the Secretary under this title, taking into ac14 count restrictions on disclosure of classified or

15 confidential information. The following deter16 minations of the Secretary shall in every case be

17 published in the Federal Register, unless a pri18 vate party requested the determination and asked

19 that it not be published:

20 (i) Classification of a commodity or

21 technology on the control index.

22 (ii) Calculation of a commonly-used

23 control index parameter for a commodity or

24 technology, including all officially accepted
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1 composite theoretical performance calcula2 tions for computers and microprocessors.

3 (B) NOTICE OF REVISIONS.—Whenever the

4 Secretary makes any revision in the control

5 index with respect to any commodity or tech6 nology, or with respect to any country or des7 tination affected by controls imposed under sec8 tion 105 or section 106, the Secretary shall pub9 lish in the Federal Register a notice of such revi10 sion and shall specify in such notice under which

11 authority the revision is being made.

12 (2) EXPORT CONTROL REGIME ACTIONS.—

13 (A) IN GENERAL.—Not more than 90 days

14 after the date of the enactment of this Act, the

15 Secretary shall publish in the Federal Register

16 the full text of the lists of controlled items of all

17 export control regimes and all notes and under18 standings of the regimes concerning such lists.

19 The Secretary shall update the publication under

20 the preceding sentence at least once in each 1-

21 year period occurring after the original publica22 tion under this subparagraph.

23 (B) CONTENTS.—The Secretary shall pub24 lish in the Federal Register—
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1 (i) the full text of any agreements af2 fecting the lists of controlled items of all ex3 port control regimes, together with all notes,

4 understandings, and other aspects of such

5 agreements and all revisions to such texts;

6 (ii) subject to the limitations set forth

7 in subsection (g), decisions on requests for

8 exceptions permitted by such export control

9 regimes for particular exports;

10 (iii) other actions and decisions of such

11 export control regimes, to the maximum ex12 tent possible; and

13 (iv) unreliable end users with respect

14 to items on which export controls are im15 posed under this title, and persons to whom

16 sanctions have been applied, or whose ex17 port privileges have been denied, under this

18 title.

19 (C) TIMING.—Such publication shall be

20 made not more than 30 days after the agree21 ments are reached, the decisions are made, the

22 actions are taken, or the information becomes

23 available, as the case may be.

24 (D) EXCEPTION.—The publication of a par25 ticular matter need not be made under this
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1 paragraph to the extent that the Secretary sub2 mits a written finding to the Congress that to

3 publish that matter would be contrary to na4 tional or international security, would abridge

5 the confidentiality of the decision-making proc6 esses of an export control regime, or would other7 wise be inconsistent with the obligations of the

8 United States to an export control regime.

9 (n) NOTIFICATION OF THE PUBLIC; CONSULTATION

10 WITH INDUSTRY; RECORDKEEPING.—

11 (1) NOTIFICATION OF THE PUBLIC.—The Sec12 retary shall keep the public fully apprised of changes

13 in export control policy and procedures instituted

14 under this title with a view to encouraging trade.

15 (2) CONSULTATION WITH INDUSTRY.—The Sec16 retary shall meet regularly with export advisory com17 mittees appointed under section 104(f) in order to ob18 tain their views on United States export control pol19 icy and the foreign availability of commodities and

20 technology.

21 (o) DELEGATION TO COCOM.—The Secretary, or an

22 officer or employee of the Department of Commerce des23 ignated by the Secretary, shall be a member of the perma24 nent United States delegation to COCOM or its successor

25 export control regime.
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1 (p) EXPORT CONTROL ATTACHES.—The Secretary

2 shall assign a full-time export control attache to each of

3 those countries that—

4 (1) pose the greatest threat to the United States

5 and its allies with respect to the proliferation of

6 weapons of mass destruction and missiles; and

7 (2) received exports pursuant to the largest num8 ber of licenses issued under sections 105 and 106, dur9 ing the preceding 2 calendar years, as compared to li10 censes issued under such sections for exports to all

11 countries.

12 Each such attache shall give priority to conducting post13 shipment verifications, prelicense checks, and other mon14 itoring of end uses in the country to which the attache is

15 assigned.

16 (q) AUTHORIZATION FOR TECHNICAL DATA.—A vali17 dated license authorizing the export of any commodities or

18 technology under this title shall also authorize the export

19 of operation technical data related to such commodities or

20 technology, whether or not such data is specifically ref21 erenced in the license or license application, if the technical

22 level of the data does not exceed the level reasonably nec23 essary to install, repair, maintain, inspect, operate, or use

24 the commodities or technology.
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1 (r) LICENSES FOR SPARE PARTS NOT REQUIRED.—

2 An individual validated license shall not be required under

3 this title for replacement parts which are exported to re4 place on a one-for-one basis parts that were in a commodity

5 that was lawfully exported from the United States, unless

6 the President determines that such a license should be re7 quired for such parts.

8 SEC. 115. ANNUAL REPORT.

9 (a) CONTENTS.—Not later than March 1 of each year,

10 the Secretary shall submit to the Congress a report on the

11 administration of this title during the preceding calendar

12 year. All agencies shall cooperate fully with the Secretary

13 in providing information for such report. Such report shall

14 include detailed information on the following:

15 (1) The implementation of the policies set forth

16 in section 103, including delegations of authority by

17 the President under section 104(d), consultations with

18 the export advisory committees established under sec19 tion 104(f), and any changes in the exercise of the au20 thorities contained in sections 105(a), 106(a), 107(a),

21 and 108(a).

22 (2) With respect to multilateral export controls

23 imposed or maintained under section 105, the follow24 ing:
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1 (A) The effectiveness of each export control

2 regime, as required by section 105(h), including

3 all information required by section 105(h)(2).

4 (B) Adjustments to multilateral export con5 trols.

6 (C) The implementation of the export licens7 ing treatment authorized by section 105(e).

8 (D) Determinations of foreign availability

9 made under section 105(i), the criteria used to

10 make such determinations, the removal of any

11 export controls under such subsection, and any

12 evidence demonstrating a need to maintain ex13 port controls notwithstanding foreign availabil14 ity.

15 (E) The operation of the indexing system

16 under section 105(k).

17 (3) With respect to unilateral export controls im18 posed under section 106, the following:

19 (A) The effectiveness of such controls.

20 (B) Adjustments to such controls pursuant

21 to negotiations under subsections (a)(5) and (c)

22 of section 106.

23 (C) Embargoes imposed, maintained, or re24 moved in accordance with section 106, including

25 descriptions of each embargo and the rationale
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1 for imposing, maintaining, or removing such

2 embargo.

3 (4) Short supply controls and monitoring under

4 section 107.

5 (5) Organizational and procedural changes un6 dertaken in furtherance of the policies set forth in this

7 title, including changes to increase the efficiency of

8 the export licensing process and to fulfill the require9 ments of section 109, including an accounting of ap10 peals received, and actions taken pursuant thereto,

11 under section ƒ109(g)≈ 109(h).

12 (6) Violations under section 110 and enforcement

13 activities under section 113.

14 (7) The issuance of regulations under this title.

15 (8) The results, in as much detail as may be in16 cluded consistent with the strategic and political in17 terests of the United States and the need to maintain

18 the confidentiality of proprietary information, of the

19 reviews of the security control list, and any revisions

20 to the list resulting from such reviews, required by

21 section 105.

22 (9) Each of the assessments described in section

23 114(a)(2).

24 (b) INFORMATION ON SECTION 111.—
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1 (1) INFORMATION TO BE INCLUDED.—The Presi2 dent shall include in each annual report under sub3 section (a)—

4 (A) a description of the actions taken to

5 carry out section 111, including the imposition

6 and removal of sanctions under such section;

7 (B) a description of the current efforts of

8 foreign countries and subnational groups to ac9 quire equipment, materials, or technology to de10 velop, produce, or use chemical or biological

11 weapons, together with an assessment of the cur12 rent and likely future capabilities of such coun13 tries and groups to develop, produce, stockpile,

14 deliver, transfer, or use such weapons;

15 (C) a description of—

16 (i) the use of chemical or biological

17 weapons by foreign countries in violation of

18 international law,

19 (ii) the use of chemical or biological

20 weapons by subnational groups,

21 (iii) substantial preparations by for22 eign countries and subnational groups to do

23 so, and

24 (iv) the development, production, stock25 piling, or use of chemical or biological
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1 weapons by foreign countries and

2 subnational groups; and

3 (D) a description of the extent to which for4 eign persons or governments have knowingly and

5 materially assisted third countries or

6 subnational groups to acquire equipment, mate7 rial, or technology intended to develop, produce,

8 or use chemical or biological weapons.

9 (2) INFORMATION SHOULD BE UNCLASSIFIED.—

10 To the extent practicable, information submitted

11 under paragraph (1) should be based on unclassified

12 information.

13 SEC. 116. DEFINITIONS.

14 As used in this title:

15 (1) AUSTRALIA GROUP.—The term ‘‘Australia

16 Group’’ means the multilateral arrangement in which

17 the United States participates that seeks to prevent

18 the proliferation of chemical and biological weapons.

19 (2) COCOM.—The term ‘‘COCOM’’ means the

20 Coordinating Committee for Multilateral Export Con21 trols, and any successor entity.

22 (3) COMMODITY.—The term ‘‘commodity’’ means

23 any article, natural or manmade substance, material,

24 supply, or manufactured product, including inspec-
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1 tion and test equipment, and excluding technical

2 data.

3 (4) CONTROL OR CONTROLLED.—The terms ‘‘con4 trol’’ and ‘‘controlled’’ refer to a requirement that an

5 export have a validated license or written reexport

6 authorization.

7 (5) CONTROL INDEX.—The term ‘‘control index’’

8 means the United States Commodity Control Index

9 established under section 104(c)(1).

10 (6) CONTROLLABLE.—The term ‘‘controllable’’

11 means capable of being made subject to an effective

12 prohibition or significant restriction on exports. A

13 commodity or technology shall not be considered to be

14 controllable unless it is—

15 (A) manufactured or sold by only a limited

16 number of suppliers who can be positively identi17 fied;

18 (B) consumed or used by only a limited

19 number of end users who can be positively iden20 tified and whose export activities can be con21 trolled; and

22 (C) individually traceable or not easily con23 cealed or disguised.

24 (7) CONTROLLED COUNTRY, CONTROLLED END

25 USE, AND CONTROLLED END USER.—(A) The term
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1 ‘‘controlled country’’ means a country identified

2 under section 105(b)(3), and a country on which con3 trols are imposed under section 106.

4 (B) The term ‘‘controlled end use’’ means an end

5 use identified under section 105(b)(3) and an end use

6 for which exports are controlled under section 106.

7 (C) The term ‘‘controlled end user’’ means an

8 end user identified under section 105(b)(3) and an

9 end user to which exports are controlled under section

10 106.

11 (8) COOPERATING COUNTRY.—The term ‘‘cooper12 ating country’’ means a country that, pursuant to an

13 agreement or other arrangement with the United

14 States or an export control regime, controls exports of

15 items that are consistent with the criteria and stand16 ards of that export control regime.

17 (9) END USE AND END USER.—(A) The term

18 ‘‘end use’’ means the intended application or use of

19 an item as represented by an export license applicant.

20 (B) The term ‘‘end user’’ means the person lo21 cated abroad who is the true party in interest in ac22 tually receiving an export for the end use designated

23 for the export.

24 (10) EXPORT.—The term ‘‘export’’—

25 (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 of

6 the United States with the knowledge or in7 tent that the items will be shipped outside

8 the United States, transferred, or transmit9 ted to an unauthorized end user, end use, or

10 destination;

11 (B) includes the transfer of the registration

12 of a satellite or operational control of a satellite

13 from a party resident in the United States to a

14 party resident in another country; and

15 (C) includes the term ‘‘reexport’’.

16 (11) EXPORT CONTROL REGIME, MULTILATERAL

17 EXPORT CONTROL REGIME, MULTILATERAL REGIME,

18 AND REGIME.—The terms ‘‘export control regime’’,

19 ‘‘multilateral export control regime’’, ‘‘multilateral re20 gime’’, and ‘‘regime’’ each mean a group of two or

21 more countries which includes the United States and

22 the purpose of which is to curtail, by means of cooper23 ative export controls, access to certain items by cer24 tain countries, by certain end users, or for certain

25 end uses.
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1 (12) FOREIGN AVAILABILITY, AVAILABLE IN FACT

2 TO CONTROLLED COUNTRIES.—The terms ‘‘foreign

3 availability’’ and ‘‘available in fact to controlled

4 countries’’ each include production or availability of

5 any item from any country—

6 (A) in which the item is not restricted for

7 export to any controlled country; or

8 (B) in which such export restrictions are

9 determined by the Secretary to be ineffective.

10 For purposes of subparagraph (B), the mere inclusion

11 of items on a list of items subject to export controls

12 imposed pursuant to a multilateral export control re13 gime shall not alone constitute credible evidence that

14 the government of a country provides an effective

15 means of controlling the export of such items to con16 trolled countries.

17 (13) FOREIGN PERSON.—The term ‘‘foreign per18 son’’ means—

19 (A) an individual who is not a United

20 States citizen or an alien admitted for perma21 nent residence to the United States;

22 (B) any corporation, partnership, business

23 association, society, trust, organization, or other

24 nongovernmental entity created or organized

25 under the laws of a foreign country or that has
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1 its principal place of business outside the United

2 States; and

3 (C) any governmental entity of a foreign

4 country that is operating as a business enter5 prise.

6 (14) ITEM.—The term ‘‘item’’ means any com7 modity or technology.

8 (15) LICENSE.—The term ‘‘license’’ includes both

9 validated licenses and written reexport authoriza10 tions.

11 (16) MEMBER OF AN EXPORT CONTROL RE12 GIME.—A ‘‘member’’ of an export control regime is a

13 country that participates in that regime.

14 (17) MISSILE.—The term ‘‘missile’’ means any

15 missile system or component listed in category I of

16 the MTCR Annex, and any other unmanned delivery

17 system or component of similar capability, as well as

18 the specially designed production facilities for these

19 systems.

20 (18) MISSILE TECHNOLOGY CONTROL REGIME;

21 MTCR.—The term ‘‘Missile Technology Control Re22 gime’’ or ‘‘MTCR’’ means the policy statement and

23 guidelines between the United States, the United

24 Kingdom, the Federal Republic of Germany, France,

25 Italy, Canada, and Japan, announced on April 16,
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1 1987, to restrict sensitive missile-related transfers

2 based on the MTCR Annex, and any amendments

3 thereto.

4 (19) MTCR ANNEX.—The term ‘‘MTCR Annex’’

5 means the Equipment and Technology Annex of the

6 MTCR, and any amendments thereto.

7 (20) NUCLEAR EXPLOSIVE DEVICE.—The term

8 ‘‘nuclear explosive device’’ means any device, whether

9 assembled or disassembled, that is designed to produce

10 an instantaneous release of an amount of nuclear en11 ergy from special nuclear material that is greater

12 than the amount of energy that would be released

13 from the detonation of one pound of trinitrotoluene

14 (TNT).

15 (21) NUCLEAR SUPPLIERS’ GROUP.—The term

16 ‘‘Nuclear Suppliers’ Group’’ means the multilateral

17 arrangement in which the United States participates

18 whose purpose is to restrict the transfers of items with

19 relevance to the nuclear fuel cycle or nuclear explosive

20 applications.

21 (22) PERSON.—The term ‘‘person’’ includes the

22 singular and the plural and any individual, partner23 ship, corporation, or other form of association, includ24 ing (except when used in the term ‘‘foreign person’’
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1 or ‘‘United States person’’) any government or agency

2 thereof.

3 (23) REEXPORT.—The term ‘‘reexport’’ means

4 the shipment, transfer, transshipment, or diversion of

5 items from one foreign country to another.

6 (24) SECRETARY.—The term ‘‘Secretary’’ means

7 the Secretary of Commerce.

8 (25) SOFTWARE.—The term ‘‘software’’ means

9 one or more computer programs or microprograms

10 fixed in any tangible medium of expression.

11 (26) TECHNOLOGY.—The term ‘‘technology’’

12 means specific information necessary for the develop13 ment, production, or use of a commodity, and in14 cludes software.

15 (27) UNILATERAL AND UNILATERALLY.—(A) The

16 terms ‘‘unilateral’’ and ‘‘unilaterally’’, with respect to

17 an export control or license treatment, refer to a li18 cense requirement or license treatment that is not

19 agreed to by a multilateral regime for any or all of

20 the following elements: the purpose of the license re21 quirement or treatment, the items subject to the li22 cense requirement or treatment, the standard of re23 view for applications for such license, the domestic

24 and international procedures for review of such li25 cense applications, and the controlled countries, and
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1 end uses or end users, to which the review policy ap2 plies.

3 (B) An export control or license treatment shall

4 be considered to be unilateral or unilaterally main5 tained by the United States if it is a restriction, con6 dition, or interpretation imposed by the Secretary

7 upon commodities or technology, or upon a license

8 application for the export of commodities or tech9 nology, that is not imposed or implemented in simi10 lar circumstances by other members of an export con11 trol regime, or that is not otherwise specifically per12 mitted by this title.

13 (28) UNITED STATES.—The term ‘‘United

14 States’’ means the States of the United States, the

15 District of Columbia, and any commonwealth, terri16 tory, dependency, or possession of the United States,

17 and includes the Outer Continental Shelf, as defined

18 in section 2(a) of the Outer Continental Shelf Lands

19 Act (43 U.S.C. 1331(a)).

20 (29) UNITED STATES PERSON.—The term ‘‘Unit21 ed States person’’ means any United States resident

22 or national (other than an individual resident outside

23 the United States and employed by other than a

24 United States person), any domestic concern (includ25 ing any permanent domestic establishment of any for-
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1 eign concern) and any foreign subsidiary or affiliate

2 (including any permanent foreign establishment) of

3 any domestic concern which is controlled in fact by

4 such domestic concern, as determined under regula5 tions of the President.

6 (30) WEAPONS OF MASS DESTRUCTION.—The

7 term ‘‘weapons of mass destruction’’ means any chem8 ical, biological, or nuclear weapon, including a nu9 clear explosive device.

10 SEC. 117. EFFECTS ON OTHER ACTS.

11 ƒ(a) COMMODITY JURISDICTION.—

12 ƒ(1) IN GENERAL.—Notwithstanding any other

13 provision of law—

14 ƒ(A) an item agreed for control on the

15 International Munitions List of COCOM shall be

16 subject to control under the Arms Export Control

17 Act and not under this title;

18 ƒ(B) except as provided in paragraphs (2),

19 (3), and (5), an item which is on the Inter20 national Industrial List of COCOM shall be sub21 ject to control under this title and not under the

22 Arms Export Control Act; and

23 ƒ(C) no item may be included on both the

24 control index and the United States Munitions

25 List after publication of the lists required under
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1 paragraph (4) and resolution of any dispute

2 with respect to such lists under paragraph (5).

3 ƒ(2) EXCEPTIONS.—(A) An item described in

4 subparagraph (B) that is not on the International

5 Munitions List may be subject to control under the

6 Arms Export Control Act—

7 ƒ(i)(I) for a period of 9 months after the

8 date on which the United States proposes to

9 COCOM that the item be added to the Inter10 national Munitions List; and

11 ƒ(II) for an additional 9-month period, but

12 only if negotiations in COCOM to add the item

13 to the International Munitions List are continu14 ing; or

15 ƒ(ii) if the Secretary of State, in consulta16 tion with the Secretary, so determines, except

17 that if the Secretary disagrees with the Secretary

18 of State with respect to such item, the item may

19 be subject to control under the Arms Export Con20 trol Act only if the disagreement is resolved by

21 the Secretaries or by the President pursuant to

22 the procedures set forth in subparagraphs (B)

23 and (C) of paragraph (5).

24 ƒ(B) An item referred to in subparagraph (A) is

25 an item that—
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1 ƒ(i) is specifically designed, developed, con2 figured, adapted, or modified for military or in3 telligence application;

4 ƒ(ii) does not have significant civil appli5 cations; and

6 ƒ(iii) is not a component the performance

7 capacity and function of which are essentially

8 equivalent to those used for civil applications.

9 ƒ(3) PRESIDENTIAL DETERMINATIONS.—An item

10 that is not on the International Munitions List may

11 be subject to control under the Arms Export Control

12 Act if the President—

13 ƒ(A) determines that extraordinary cir14 cumstances exist affecting the national security

15 of the United States, which require that the item

16 be controlled under the Arms Export Control Act;

17 ƒ(B) proposes to COCOM that the item be

18 added to the International Munitions List; and

19 ƒ(C) not later than 10 days after making

20 the determination under subparagraph (A), sub21 mits a report to the Speaker of the House of Rep22 resentatives and the President pro tempore of the

23 Senate, describing in detail the reasons for the

24 determination, in appropriate classified form, as

25 necessary.
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1 ƒ(4) PUBLICATION OF LISTS.—

2 ƒ(A)(i) Not later than 3 months after the

3 date of the enactment of this Act, the Secretary

4 shall publish the control index and the Secretary

5 of State shall publish the United States Muni6 tions List, with all revisions that have been

7 made in accordance with this subsection.

8 ƒ(ii) Not later than 3 months after the date

9 of the enactment of this Act, the Secretary of

10 State shall publish in a separate list those items

11 remaining subject to control under the Arms Ex12 port Control Act under paragraph (2).

13 ƒ(iii) The publications required by clauses

14 (i) and (ii) shall be made in the Federal Reg15 ister.

16 ƒ(B) If either the Secretary or the Secretary

17 of State fails to publish a revised list in accord18 ance with subparagraph (A), there shall be ex19 cluded from the list of the Secretary that did not

20 so publish a revised list any item included on the

21 list of the Secretary that did so publish a revised

22 list.

23 ƒ(5) COMMODITY JURISDICTION DISPUTE RESO24 LUTION.—

25 ƒ(A) Whenever—
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1 ƒ(i) the Secretary or the Secretary of

2 State receives a request to determine wheth3 er an item is subject to control under this

4 title or the Arms Export Control Act,

5 ƒ(ii) either Secretary finds that an

6 item is included on both the control index

7 and the United States Munitions List,

8 ƒ(iii) an item appearing on the list of

9 one Secretary under paragraph (4)(A)(i) is

10 considered by the other Secretary to be

11 under the jurisdiction of that other Sec12 retary, or

13 ƒ(iv) the Secretary disagrees with the

14 inclusion of an item on the list published

15 under paragraph (4)(A)(ii),

16 the Secretary or the Secretary of State (as the

17 case may be) shall refer the matter and any rel18 evant information to the other Secretary.

19 ƒ(B) The 2 Secretaries shall have a period

20 of 15 days following the referral of a matter

21 under subparagraph (A) to resolve any dif22 ferences with respect to the matter involved.

23 ƒ(C) If the 2 Secretaries fail to resolve such

24 differences within that 15-day period, either Sec25 retary may refer the matter to the President,
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1 who, not later than 15 days after receiving the

2 referral, shall notify the 2 Secretaries of his de3 termination on the matter in dispute.

4 ƒ(D) In the event that either the Secretary

5 or the Secretary of State does not respond to a

6 referral under subparagraph (A) by the other

7 Secretary, the Secretary that did not so respond

8 shall be deemed to concur with the other Sec9 retary on the matter involved.

10 ƒ(6) REFERENCES.—For purposes of this sub11 section, any reference to the ‘‘International Munitions

12 List’’ or the ‘‘International Industrial List’’ includes

13 a reference to any successor list to the International

14 Munitions List or the International Industrial List,

15 as the case may be.≈

16 (a) COMMODITY JURISDICTION.—

17 (1) COORDINATION OF CONTROLS.—The

18 authority granted under this title and

19 under section 38 of the Arms Export Con20 trol Act (22 U.S.C. 2778) shall be exercised

21 in such a manner as to achieve effective

22 coordination between the licensing sys23 tems under this title and such section 38

24 and to share information regarding the

25 trustworthiness of parties.
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1 (2) ELIMINATION OF OVERLAPPING CON2 TROLS.—No item may be included on both

3 the control index and the United States

4 Munitions List after the effective date of

5 this title.

6 (3) COMMODITY JURISDICTION DISPUTE

7 RESOLUTION.—Under such procedures as

8 the President shall establish, disputes re9 garding conflicting claims of jurisdiction

10 between the control index and the United

11 States Munitions List shall be resolved in

12 a timely fashion by the Department of

13 State, in consultation with other depart14 ments and agencies. Consultations shall

15 be carried out through committees

16 chaired by representatives of the Depart17 ment of State at the level of Assistant

18 Secretary or Under Secretary. The proce19 dures of the committees shall allow the

20 Department of State or other depart21 ments or agencies to initiate the resolu22 tion of disputes, including in response to

23 requests made to the Departments of

24 State and Commerce. Consultation proce25 dures within the committees shall pro-
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1 vide for interagency meetings to permit

2 the free exchange of views regarding ju3 risdictional issues. Disputes that cannot

4 be resolved may be referred to the Presi5 dent by the Secretary of State, the Sec6 retary of Defense, or the Secretary of

7 Commerce.

8 (b) CONTROL OF ARMS EXPORTS AND IM9 PORTS.—Section 38 of the Arms Export Control

10 Act (22 U.S.C. 2778) is amended by striking

11 subsection (a)(1) and inserting the following:

12 ‘‘(a)(1) In furtherance of world peace and

13 the security and foreign policy of the United

14 States, the President is authorized to control

15 the import and the export of defense articles

16 and defense services and to provide foreign

17 policy guidance to persons of the United

18 States involved in the export and import of

19 such articles and services. The Secretary of

20 State, with the concurrence of the Secretary

21 of Defense, is authorized to designate those

22 items which shall be considered as defense ar23 ticles and defense services for the purposes of

24 this section. The Secretary of State is also au25 thorized to promulgate regulations for the im-
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1 port and export of such articles and services.

2 The items so designated shall constitute the

3 United States Munitions List.’’.

4 ƒ(b)≈ (c) EXPORT CONTROLS ON TELECOMMUNI5 CATIONS.—

6 (1) NO LICENSE REQUIRED FOR CIVIL END

7 USES.—The Secretary shall not require a validated li8 cense for export or authorization for reexport of tele9 communications equipment to civil end users for civil

10 end uses in any of the republics of the former Soviet

11 Union, the People’s Republic of China, Poland, the

12 Czech Republic, Slovakia, Bulgaria, Romania, Alba13 nia, Estonia, Lithuania, Latvia, Cambodia, Laos,

14 Mongolia, or Vietnam.

15 (2) DEFINITIONS.—For purposes of this sub16 section, the term ‘‘telecommunications equipment’’ in17 cludes—

18 (A) those items described in the Advisory

19 Notes to Category 5 of the Commerce Control

20 List set forth in part 799 of title 15, Code of

21 Federal Regulations, as of April 4, 1994, that in22 dicate likelihood of approval—

23 (i) for country groups QWY and the

24 People’s Republic of China,
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1 (ii) only for the People’s Republic of

2 China, or

3 (iii) to specified destinations in coun4 try group Y; and

5 (B) those entries and subentries listed in ex6 port control classification numbers 5AO2A (ex7 cept subentries h and i), 5A03A, 5A04A, 5A05A,

8 5A06A, 5B01A, 5B02A, 5C01A, 5D01A, 5D02A,

9 and 5D03A of the Commerce Control List set

10 forth in part 799 of title 15, Code of Federal

11 Regulations, as of April 4, 1994, but not includ12 ing software designed or modified for the devel13 opment, production, or use of items controlled

14 under export control classification number

15 5A01A of the Commerce Control List.

16 ƒ(c)¿ (d) COMPUTERS AND RELATED EQUIPMENT.—

17 (1) GENERAL RULE.—Subject to paragraphs (2)

18 and (3), the Secretary shall have exclusive authority

19 to control exports of all computer hardware, software,

20 and technology for information security (including

21 encryption), except that which is specifically designed

22 or modified for military use, including command,

23 control, and intelligence applications.

24 (2) ITEMS NOT REQUIRING LICENSES.—No vali25 dated license may be required, except pursuant to the
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1 Trading With The Enemy Act or the International

2 Emergency Economic Powers Act (but only to the ex3 tent that the authority of such Act is not exercised to

4 extend controls imposed under this title), for the ex5 port of—

6 (A) any software, including software with

7 encryption capabilities, that is—

8 (i) generally available, as is, and is de9 signed for installation by the purchaser; or

10 (ii) in the public domain or publicly

11 available because it is generally accessible to

12 the interested public in any form; or

13 (B) any computing device solely because it

14 incorporates or employs in any form software

15 (including software with encryption capabilities)

16 exempted from any requirement for a validated

17 license under subparagraph (A).

18 (3) SOFTWARE WITH ENCRYPTION CAPABILI19 TIES.—The Secretary shall authorize the export of

20 software with encryption capabilities for civil end

21 uses (determined on the basis of the criteria described

22 in section 105(c)(2)) in any country to which exports

23 of software of similar capability are permitted for use

24 by financial institutions not controlled in fact by
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1 United States persons, unless there is substantial evi2 dence that such software will be—

3 (A) diverted to a military end use or an

4 end use supporting international terrorism;

5 (B) modified for an end use described in

6 subparagraph (A); or

7 (C) reexported without authorization by the

8 United States that is required.

9 (4) DEFINITIONS.—As used in this subsection—

10 (A) the term ‘‘generally available’’ means,

11 in the case of software (including software with

12 encryption capabilities), software that is offered

13 for sale, license, or transfer to any person with14 out restriction through any commercial means,

15 including, but not limited to, over-the-counter re16 tail sales, mail order transactions, phone order

17 transactions, electronic distribution, or sale on

18 approval;

19 (B) the term ‘‘as is’’ means, in the case of

20 software (including software with encryption ca21 pabilities), a software program that is not de22 signed, developed, or tailored by the software

23 company for specific purchasers, except that such

24 purchasers may supply certain installation pa25 rameters needed by the software program to
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1 function properly with the purchaser’s computer

2 system and may customize the software program

3 by choosing among options contained in the soft4 ware program;

5 (C) the term ‘‘is designed for installation by

6 the purchaser’’ means, in the case of software

7 (including software with encryption capabilities)

8 that—

9 (i) the software company intends for

10 the purchaser (including any licensee or

11 transferee), who may not be the actual user

12 of the software program, to install the soft13 ware program on a computing device and

14 has supplied the necessary instructions to

15 do so, except that the company may also

16 provide telephone help line services for soft17 ware installation, electronic transmission,

18 or basic operations; and

19 (ii) the software program is designed

20 for installation by the purchaser without

21 further substantial support by the supplier;

22 (D) the term ‘‘computing device’’ means a

23 device which incorporates one or more

24 microprocessor-based central processing units
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1 that can accept, store, process or provide output

2 of data; and

3 (E) the term ‘‘computer hardware’’, when

4 used in conjunction with information security,

5 includes, but is not limited to, computer systems,

6 equipment, application-specific assemblies, mod7 ules, and integrated circuits.

8 (c) ASSESSMENT OF ENCRYPTION SOFTWARE

9 MARKET.—

10 (1) PRESIDENTIAL REPORT REQUIRED.—

11 Not later than 150 days after the date of

12 enactment of this Act, the President shall

13 submit a report to the Committee on

14 Banking, Housing, and Urban Affairs of

15 the Senate and the Committee on Foreign

16 Affairs of the House of Representatives.

17 (2) CONTENTS OF REPORT.—The report

18 required by paragraph (1) shall—

19 (A) assess the current and future

20 international market for computer

21 software with encryption;

22 (B) assess the impact of United

23 States encryption export controls on

24 the international competitiveness of

25 the United States computer software
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1 industry and their economic con2 sequences, including the impact on ex3 ports and jobs in the United States

4 computer software industry; and

5 (C) review the types, quality and

6 market penetration of foreign pro7 duced encryption software products

8 and any controls that influence the

9 international marketability of

10 encryption software products.

11 (3) CONSULTATION.—In preparing the

12 report required under paragraph (1), the

13 President shall consult with representa14 tives of the United States computer soft15 ware industry. Confidential business in16 formation provided by United States in17 dustry in the course of preparing the re18 port shall not be disclosed, except with the

19 permission of the submitter or when ag20 gregated so that the source of the infor21 mation cannot be identified.

22 ƒ(d)≈ (e) IN GENERAL.—To the extent provided in

23 this title, this title shall be construed to modify, repeal, su24 persede, and otherwise affect the provisions of any other
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1 laws authorizing control over exports of any commodities

2 or technology.

3 ƒ(e) COORDINATION OF CONTROLS.—The authority

4 granted under this title and under section 38 of the Arms

5 Export Control Act (22 U.S.C. 2778) shall be exercised in

6 such a manner as to share information regarding the trust7 worthiness of parties.

8 ƒ(f) CIVIL AIRCRAFT EQUIPMENT.—Notwithstanding

9 any other provision of law, any civil aircraft product, or

10 any technology used in a civil aircraft product, that is

11 standard equipment certified or scheduled to be certified by

12 the Federal Aviation Administration and is an integral

13 part of such aircraft, shall be subject to export controls ex14 clusively under this title.≈

15 (f) CIVIL AIRCRAFT EQUIPMENT.—Notwith16 standing any other provision of law, any civil

17 aircraft product that is standard equipment

18 certified by the Federal Aviation Administra19 tion and is an integral part of such aircraft

20 shall be subject to export controls exclusively

21 under this title.

22 (g) NONPROLIFERATION CONTROLS.—The provisions

23 of section 109 shall supersede the procedures published pur24 suant to section 309(c) of the Nuclear Non-Proliferation Act
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1 of 1978 (42 U.S.C. 2139a(c)) to the extent such procedures

2 are inconsistent with the provisions of section 109.

3 (h) AMENDMENTS TO THE INTERNATIONAL EMER4 GENCY ECONOMIC POWERS ACT.—

5 (1) PRESIDENTIAL AUTHORIZATION.—Section

6 203(a) of the International Emergency Economic

7 Powers Act (50 U.S.C. 1702(a)) is amended—

8 (A) by redesignating paragraphs (2) and

9 (3) as paragraphs (3) and (4), respectively, and

10 (B) by inserting after paragraph (1) the fol11 lowing new paragraph:

12 ‘‘(2) The President may prohibit or curtail the expor13 tation of any items on the United States Commodity Con14 trol Index that are subject to the jurisdiction of the United

15 States under this title only to the extent provided in, and

16 subject to the criteria of, sections 105, 106, and 114 of the

17 Export Act of 1994, unless such prohibition or curtailment

18 is part of an embargo (as described in section 106(f)(1) of

19 the Export Act of 1994) against the country concerned. The

20 preceding sentence shall continue to apply notwithstanding

21 the expiration of the Export Act of 1994.’’.

22 (2) CONFIDENTIALITY OF INFORMATION.—The

23 International Emergency Economic Powers Act is

24 amended—
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1 (A) by redesignating section 208 as section

2 209; and

3 (B) by inserting after section 207 the fol4 lowing:

5 ‘‘SEC. 208. CONFIDENTIALITY OF INFORMATION.

6 ‘‘(a) EXEMPTIONS FROM DISCLOSURE.—Information

7 obtained under this title before or after the enactment of

8 this section may be withheld only to the extent permitted

9 by statute, except that information submitted, obtained, or

10 considered in connection with an application for an export

11 license or other export authorization under this title, in12 cluding the export license or other export authorization it13 self, classification requests, information or evidence ob14 tained in the course of any investigation, and information

15 obtained or furnished under this title in connection with

16 international agreements, treaties, or obligations shall be

17 withheld from public disclosure unless the release of such

18 information is determined by the Secretary to be in the na19 tional interest.

20 ‘‘(b) INFORMATION TO CONGRESS AND GAO.—

21 ‘‘(1) IN GENERAL.—Nothing in this title shall be

22 construed as authorizing the withholding of informa23 tion from the Congress or from the General Account24 ing Office.

25 ‘‘(2) AVAILABILITY TO THE CONGRESS.—
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1 ‘‘(A) IN GENERAL.—All information ob2 tained at any time under this title regarding the

3 control of exports, including any report or li4 cense application required under this title, shall

5 be made available to any committee or sub6 committee of Congress of appropriate jurisdic7 tion upon the request of the chairman or ranking

8 minority member of such committee or sub9 committee.

10 ‘‘(B) PROHIBITION ON FURTHER DISCLO11 SURE.—No committee, subcommittee, or Member

12 of Congress shall disclose any information ob13 tained under this title or previous Acts regarding

14 the control of exports which is submitted on a

15 confidential basis to the Congress under subpara16 graph (A) unless the full committee to which the

17 information is made available determines that

18 the withholding of the information is contrary to

19 the national interest.

20 ‘‘(3) AVAILABILITY TO THE GAO.—

21 ‘‘(A) IN GENERAL.—Notwithstanding para22 graph (1), information referred to in paragraph

23 (2) shall, consistent with the protection of intel24 ligence, counterintelligence, and law enforcement

25 sources, methods, and activities, as determined
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1 by the agency that originally obtained the infor2 mation, and consistent with the provisions of

3 section 716 of title 31, United States Code, be

4 made available only by the agency, upon request,

5 to the Comptroller General of the United States

6 or to any officer or employee of the General Ac7 counting Office authorized by the Comptroller

8 General to have access to such information.

9 ‘‘(B) PROHIBITION ON FURTHER DISCLO10 SURES.—No officer or employee of the General

11 Accounting Office shall disclose, except to the

12 Congress in accordance with this subsection, any

13 such information which is submitted on a con14 fidential basis and from which any individual

15 can be identified.

16 ‘‘(c) PENALTIES FOR DISCLOSURE OF CONFIDENTIAL

17 INFORMATION.—Any officer or employee of the United

18 States, or any department or agency thereof, who publishes,

19 divulges, discloses, or makes known in any manner or to

20 any extent not authorized by law any information that—

21 ‘‘(1) he or she obtains in the course of his or her

22 employment or official duties or by reason of any ex23 amination or investigation made by, or report or

24 record made to or filed with, such department or

25 agency, or officer or employee thereof, and
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1 ‘‘(2) is exempt from disclosure under this section,

2 shall be fined not more than $10,000, or imprisoned not

3 more than 1 year, or both, shall be removed from office or

4 employment, and shall be subject to a civil penalty of not

5 more than $1,000.’’.

6 ƒ(i) REGULATION OF EXPORT OF CERTAIN COMMER7 CIAL COMMUNICATIONS SATELLITES AND ASSOCIATED

8 EQUIPMENT.—

9 ƒ(1) REGULATION SOLELY UNDER THIS TITLE.—

10 Notwithstanding any other provision of law, the ex11 port of commercial communications satellites, includ12 ing any integral components of such satellites, which

13 are designed for civil applications, including items

14 necessary to achieve the ultimate orbit location of

15 such satellites, and associated ground and test equip16 ment, when exported as part of a satellite system for

17 purposes of launch, shall be regulated under this title.

18 The Secretary shall consult with the Secretary of De19 fense and the Secretary of State to determine the sat20 ellites and components to which this paragraph ap21 plies. The Secretary, in consultation with the Sec22 retary of State and the Secretary of Defense, shall

23 prohibit the unauthorized transfer of missile equip24 ment, data, or technology that are components of any

25 such satellite which is authorized for export.
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1 ƒ(2) AMENDMENT TO ARMS EXPORT CONTROL

2 ACT.—Section 38(a) of the Arms Export Control Act

3 (22 U.S.C. 2778(a)) is amended—

4 ƒ(A) in paragraph (3), by striking ‘‘In ex5 ercising the authorities’’ and inserting ‘‘Except

6 as provided in paragraph (4), in exercising the

7 authorities’’; and

8 ƒ(B) by adding at the end the following

9 new paragraph:

10 ƒ‘‘(4) The export of commercial communications sat11 ellites, including any integral components of such satellites,

12 which are designed for civil applications, including items

13 necessary to achieve the ultimate orbit location of such sat14 ellites, and associated ground and test equipment, when ex15 ported as part of a satellite system for purposes of launch,

16 may be regulated only by the Secretary of Commerce under

17 the Export Act of 1994, pursuant to section 117(i)(1) of

18 that Act.’’.

19 ƒ(3) APPLICABILITY.—The amendments made by

20 this subsection shall apply only with respect to the ex21 port of satellites on or after the date of the enactment

22 of this Act.≈

23 SEC. 118. SECONDARY ARAB BOYCOTT.

24 (a) FINDINGS.—The Congress finds that—
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1 (1) certain countries maintain an economic boy2 cott of Israel, including a secondary boycott of compa3 nies that refuse to cooperate with the economic boycott

4 of Israel;

5 (2) the secondary Arab boycott has caused eco6 nomic damage to the countries that maintain the boy7 cott as well as to Israel;

8 (3) the secondary Arab boycott causes great dif9 ficulties for United States firms that trade with Is10 rael, depriving them of trade opportunities and vio11 lating internationally accepted principles of free

12 trade;

13 (4) the United States has a longstanding policy

14 opposing the Arab League boycott of Israel and Unit15 ed States law prohibits American firms from provid16 ing information to Arab countries to demonstrate

17 compliance with the boycott;

18 (5) American companies on the list maintained

19 by the Arab League of companies prohibited from

20 doing business in Arab League countries can be de21 nied contracts by the Kuwaiti Government for the re22 construction of Kuwait because they conduct business

23 with Israel;

24 (6) under the leadership of the executive branch,

25 the United States has sent a clear, consistent, and un-
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1 ambiguous message that the Arab League boycott of

2 companies that do business with Israel is an obstacle

3 to peace and should be terminated;

4 (7) the United States Trade Representative, in

5 August 1993, commissioned the International Trade

6 Commission to undertake a study of the boycott’s im7 pact on United States businesses which will provide,

8 for the first time, a carefully researched estimate of

9 the impact of the boycott on the United States;

10 (8) the executive branch has conducted an active

11 diplomatic campaign to convince Arab League coun12 tries that the time to end the secondary Arab boycott

13 and the economic discrimination against United

14 States businesses is now;

15 (9) under United States leadership, the G–7

16 countries have unconditionally called for an end to

17 the Arab boycott;

18 (10) the President, the Vice President, the Sec19 retary of State, the Secretary of Commerce, and other

20 senior executive branch officials have assured the Con21 gress that they will speak forcefully and candidly, in

22 every forum which touches upon the search for peace

23 in the Middle East, about the need to end the second24 ary Arab boycott;
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1 (11) the Congress wishes to support the efforts of

2 the executive branch and to help see the promises

3 made to date translated into tangible results;

4 (12) the quarterly reports from the Office of

5 Anti-Boycott Compliance of the Department of Com6 merce show no loosening in enforcement by Arab

7 League countries of the secondary Arab boycott; and

8 (13) the recent statements made by Arab leaders

9 indicating that the secondary Arab boycott is no

10 longer being enforced must be translated into action,

11 as measured by quarterly reports from the Office of

12 Anti-Boycott Compliance of the Department of Com13 merce.

14 (b) SENSE OF CONGRESS.—

15 (1) ENDING SECONDARY BOYCOTT.—It is the

16 sense of the Congress that the countries of the Arab

17 League should end the secondary Arab boycott.

18 (2) ACTIONS TO END SECONDARY BOYCOTT.—The

19 United States will consider the secondary Arab boy20 cott to have ended when—

21 (A) the Arab League issues a public pro22 nouncement that the Arab League has ended the

23 secondary Arab boycott;
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1 (B) all activities carried out by the Central

2 Office for the Boycott of Israel in support of the

3 secondary Arab boycott have been terminated;

4 (C) the Arab League and the individual

5 countries that are members of the Arab League

6 have terminated the practice of barring United

7 States persons and foreign companies that do not

8 comply with the secondary Arab boycott from

9 doing business with countries that are members

10 of the Arab League, and have declared null and

11 void any existing list of such barred persons and

12 companies; and

13 (D) the Arab League, and the individual

14 countries that are the members of the Arab

15 League, have ceased requesting United States

16 persons from taking actions prohibited under

17 section 108(a).

18 (c) DEFINITION.—For purposes of this section, the

19 term ‘‘secondary Arab boycott’’ means the refusal to do busi20 ness with persons who do not comply with requests to take

21 any action prohibited under section 108(a) with respect to

22 Israel.

23 SEC. 119. CONFORMING AMENDMENTS TO OTHER LAWS.

24 (a) ARMS EXPORT CONTROL ACT.—
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1 (1) Section 38 of the Arms Export Control Act

2 (22 U.S.C. 2778) is amended—

3 (A) in subsection (e)—

4 (i) in the first sentence by striking

5 ‘‘subsections (c)’’ and all that follows

6 through ‘‘12 of such Act’’ and inserting

7 ‘‘subsections (b), (c), (d) and (e) of section

8 110 of the Export Act of 1994, by sub9 sections (a) and (b) of section 113 of such

10 Act, and by section 114(g) of such Act’’; and

11 (ii) in the third sentence by striking

12 ‘‘11(c) of the Export Administration Act of

13 1979’’ and inserting ‘‘110(c) of the Export

14 Act of 1994’’; and

15 (B) in subsection (g)(1)(A) by striking

16 clause (ii) and inserting the following:

17 ‘‘(ii) section 110 of the Export Act of

18 1994,’’.

19 (2) Section 39A(c) of the Arms Export Control

20 Act, as added by the Foreign Relations Authorization

21 Act, Fiscal Years 1994 and 1995, is amended—

22 (A) by striking ‘‘(c),’’ and all that follows

23 through ‘‘12(a)’’ and inserting ‘‘(c), (d), and (e)

24 of section 110, section 112(c), and subsections (a)
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1 and (b) of section 113, of the Export Act of

2 1994’’; and

3 (B) by striking ‘‘11(c)’’ and inserting

4 ‘‘110(c)’’.

5 (3) Section 40(k) of the Arms Export Control Act

6 (22 U.S.C. 2780(k)) is amended—

7 (A) by striking ‘‘11(c), 11(e), 11(g), and

8 12(a) of the Export Administration Act of 1979’’

9 and inserting ‘‘110(b), 110(c), and 110(e) of the

10 Export Act of 1994’’; and

11 (B) by striking ‘‘11(c)’’ and inserting

12 ‘‘110(c)’’.

13 (4) Sections 72 and 73 of the Arms Export Con14 trol Act (22 U.S.C. 2797a and 2797b) are hereby re15 pealed.

16 (5) Section 73A of the Arms Export Control Act,

17 as added by the Foreign Relations Authorization Act,

18 Fiscal Years 1994 and 1995, is amended by striking

19 ‘‘a MTCR adherent’’ and inserting ‘‘an MTCR adher20 ent’’.

21 (6) Section 74 of the Arms Export Control Act

22 (22 U.S.C. 2797c) is amended—

23 (A) by striking paragraphs (6), (7), (8),

24 and (9);
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1 (B) in paragraph (4) by adding ‘‘and’’

2 after the semicolon; and

3 (C) in paragraph (5) by striking the semi4 colon and inserting a period.

5 (b) CHEMICAL AND BIOLOGICAL WEAPONS.—The

6 Chemical and Biological Weapons Control and Warfare

7 Elimination Act of 1991 (title III of Public Law 102–182;

8 22 U.S.C. 5601 and following) is hereby repealed.

9 (c) OTHER PROVISIONS OF LAW.—

10 (1) Section 5(b)(4) of the Trading with the

11 Enemy Act (12 U.S.C. 95a(4); 50 U.S.C. App.

12 5(b)(4)) is amended by striking ‘‘5 of the Export Ad13 ministration Act of 1979, or under section 6’’ and in14 serting ‘‘105 of the Export Act of 1994, or under sec15 tion 106’’.

16 (2) Section 16(a) of the Trading with the Enemy

17 Act (50 U.S.C. App. 16(a)) is amended by striking

18 ‘‘participants’’ and inserting ‘‘participates’’.

19 (3) Section 502B(a)(2) of the Foreign Assistance

20 Act of 1961 (22 U.S.C. 2304(a)(2)) is amended in the

21 second sentence—

22 (A) by striking ‘‘Export Administration Act

23 of 1979’’ the first place it appears and inserting

24 ‘‘Export Act of 1994’’; and
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1 (B) by striking ‘‘Administration Act of

2 1979)’’ and inserting ‘‘Act of 1994)’’.

3 (4)(A) Section 140(a)(2) of the Foreign Relations

4 Authorization Act, Fiscal Years 1988 and 1989 (22

5 U.S.C. 2656f(a)(2)) is amended by striking ‘‘6(j) of

6 the Export Administration Act of 1979’’ and insert7 ing ‘‘106(i) of the Export Act of 1994’’.

8 (B) For purposes of the report required by

9 March 31, 1995, under section 140(a) of the Foreign

10 Relations Authorization Act, Fiscal Years 1988 and

11 1989, the reference in paragraph (2) of such section

12 to ‘‘section 106(i) of the Export Act of 1994’’ shall be

13 deemed to refer to ‘‘section 6(j) of the Export Admin14 istration Act of 1979 or section 106(i) of the Export

15 Act of 1994’’.

16 (5) Section 40(e)(1) of the State Department

17 Basic Authorities Act of 1956 (22 U.S.C. 2712(e)(1))

18 is amended by striking ‘‘6(j)(1) of the Export Admin19 istration Act of 1979’’ and inserting ‘‘106(i)(1) of the

20 Export Act of 1994’’.

21 (6) Section 110 of the International Security

22 and Development Cooperation Act of 1980 (22 U.S.C.

23 2778a) is amended by striking ‘‘Administration Act

24 of 1979’’ and inserting ‘‘Act of 1994’’.
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1 (7) Section 205(d)(4) of the State Department

2 Basic Authorities Act of 1956 (22 U.S.C. 4305(d)(4))

3 is amended by striking ‘‘6(j) of the Export Adminis4 tration Act of 1979’’ and inserting ‘‘106(i) of the Ex5 port Act of 1994’’.

6 (8) Section 203(b)(3) of the International Emer7 gency Economic Powers Act (50 U.S.C. 1702(b)(3)) is

8 amended by striking ‘‘5 of the Export Administration

9 Act of 1979, or under section 6’’ and inserting ‘‘105

10 of the Export Act of 1994, or under section 106’’.

11 (9) Section 491(f) of the Forest Resources Con12 servation and Shortage Relief Act of 1990 (16 U.S.C.

13 620c(f)) is amended by striking ‘‘supersede section

14 7(i) of the Export Administration Act of 1979 (50

15 U.S.C. App. 2406(i))’’ and inserting ‘‘affect section

16 107(i) of the Export Act of 1994’’.

17 SEC. 120. EFFECTIVE DATE.

18 This title shall take effect upon the expiration of the

19 Export Administration Act of 1979.

20 SEC. 121. EXPIRATION DATE.

21 This title expires on June 30, 1998.

22 SEC. 122. SAVINGS PROVISIONS.

23 (a) IN GENERAL.—All delegations, rules, regulations,

24 orders, determinations, licenses, or other forms of adminis-
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1 trative action which have been made, issued, conducted, or

2 allowed to become effective under—

3 (1) the Export Control Act of 1949, the Export

4 Administration Act of 1969, or the Export Adminis5 tration Act of 1979, or

6 (2) those provisions of the Arms Export Control

7 Act or the Chemical and Biological Weapons Control

8 and Warfare Elimination Act of 1991 which are re9 pealed and amended by section 119,

10 and are in effect at the time this title takes effect, shall con11 tinue in effect according to their terms until modified, su12 perseded, set aside, or revoked under this title.

13 (b) ADMINISTRATIVE AND JUDICIAL PROCEEDINGS.—

14 (1) EXPORT ADMINISTRATION ACT.—This title

15 shall not affect any administrative or judicial pro16 ceedings commenced or any application for a license

17 made, under the Export Administration Act of 1979,

18 which is pending at the time this title takes effect.

19 Any such proceedings, and any action on such appli20 cation, shall continue under the Export Administra21 tion Act of 1979 as if that Act had not expired.

22 (2) OTHER PROVISIONS OF LAW.—This title shall

23 not affect any administrative or judicial proceedings

24 commenced or any application for a license made,

25 under those provisions of the Arms Export Control
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1 Act or the Chemical and Biological Weapons Control

2 and Warfare Elimination Act of 1991 which are re3 pealed and amended by section 119, if such proceed4 ings or application is pending at the time this title

5 takes effect. Any such proceedings, and any action on

6 such application, shall continue under those provi7 sions as if those provisions had not been amended or

8 repealed by section 119.

9 (c) TREATMENT OF CERTAIN DETERMINATIONS.—Any

10 determination with respect to the government of a foreign

11 country under section 6(j) of the Export Administration Act

12 of 1979, that is in effect at the time this title takes effect,

13 shall, for purposes of this title or any other provision of

14 law, be deemed to be made under section 106(i) of this Act

15 until superseded by a determination under such section

16 106(i).

17 TITLE II—NUCLEAR PROLIF18 ERATION PREVENTION ACT

19 SEC. 201. SHORT TITLE.

20 This title may be cited as the ‘‘Nuclear Proliferation

21 Prevention Act of 1994’’.

22 PART A—REPORTING ON NUCLEAR EXPORTS

23 SEC. 211. REPORTS TO CONGRESS.

24 Section 601(a) of the Nuclear Non-Proliferation Act of

25 1978 (22 U.S.C. 3281(a)) is amended—
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1 (1) in paragraph (4), by striking ‘‘and’’ after the

2 semicolon;

3 (2) in paragraph (5), by striking the period and

4 inserting a semicolon; and

5 (3) by adding after paragraph (5) the following:

6 ‘‘(6) a description of the implementation of nu7 clear and nuclear-related dual-use export controls in

8 the preceding calendar year, including a summary by

9 type of commodity and destination of—

10 ‘‘(A) all transactions for which—

11 ‘‘(i) an export license was issued for

12 any good controlled under section 309(c) of

13 this Act;

14 ‘‘(ii) an export license was issued

15 under section 109 b. of the 1954 Act;

16 ‘‘(iii) approvals were issued under the

17 Export Act of 1994, or section 109 b.(3) of

18 the 1954 Act, for the retransfer of any item,

19 technical data, component, or substance; or

20 ‘‘(iv) authorizations were made as re21 quired by section 57 b.(2) of the 1954 Act

22 to engage, directly or indirectly, in the pro23 duction of special nuclear material;

24 ‘‘(B) each instance in which—
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1 ‘‘(i) a sanction has been imposed under

2 section 221(a), 224(h), or 226(a) of the Nu3 clear Proliferation Prevention Act of 1994;

4 ‘‘(ii) sales or leases have been denied

5 under section 3(f) of the Arms Export Con6 trol Act or transactions prohibited by rea7 son of acts relating to proliferation of nu8 clear explosive devices as described in sec9 tion 40(d) of that Act;

10 ‘‘(iii) a sanction has not been imposed

11 by reason of section 221(c)(2) of the Nuclear

12 Proliferation Prevention Act of 1994 or the

13 imposition of a sanction has been delayed

14 under section 226(d) of that Act; or

15 ‘‘(iv) a waiver of a sanction has been

16 made under—

17 ‘‘(I) section 221(f), section 224, or

18 subsection (e) or (f)(2) of section 226,

19 of the Nuclear Proliferation Prevention

20 Act of 1994,

21 ‘‘(II) section 620E(d) of the For22 eign Assistance Act of 1961,

23 ‘‘(III) section 40(g) of the Arms

24 Export Control Act with respect to the
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1 last sentence of section 40(d) of that

2 Act, or

3 ‘‘(IV) section 614 of the Foreign

4 Assistance Act of 1961 with respect to

5 section 620E of that Act or section 3(f),

6 or the last sentence of section 40(d), of

7 the Arms Export Control Act; and

8 ‘‘(7) the progress of those independent states of

9 the former Soviet Union that are non-nuclear-weapon

10 states and of the Baltic states towards achieving the

11 objective of applying full scope safeguards to all their

12 peaceful nuclear activities.

13 Portions of the information required by paragraphs (6) and

14 (7) may be submitted in classified form, as necessary. Any

15 such information that may not be published or disclosed

16 under section 114(g)(1) of the Export Act of 1994 shall be

17 submitted as confidential.’’.

18 SEC. 212. EFFECTIVE DATE.

19 The amendments made by this part shall take effect

20 60 days after the date of the enactment of this Act.
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1 PART B—SANCTIONS FOR NUCLEAR

2 PROLIFERATION

3 SEC. 221. IMPOSITION OF SANCTIONS ON PERSONS ENGAG4 ING IN EXPORT ACTIVITIES THAT CONTRIB5 UTE TO PROLIFERATION.

6 (a) DETERMINATION BY THE PRESIDENT.—

7 (1) IN GENERAL.—Except as provided in sub8 section (b)(2), the President shall impose the sanc9 tions described in subsection (c) if the President deter10 mines in writing that, on or after the effective date

11 of this part, a foreign person or a United States per12 son has materially and with requisite knowledge con13 tributed, through the export from the United States or

14 any other country of any goods or technology (as de15 fined in section 231(2)), to the efforts by any individ16 ual, group, or non-nuclear-weapon state to acquire

17 unsafeguarded special nuclear material or to use, de18 velop, produce, stockpile, or otherwise acquire any nu19 clear explosive device.

20 (2) PERSONS AGAINST WHICH THE SANCTIONS

21 ARE TO BE IMPOSED.—The sanctions shall be imposed

22 pursuant to paragraph (1) on—

23 (A) the foreign person or United States per24 son with respect to which the President makes

25 the determination described in that paragraph;
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1 (B) any successor entity to that foreign per2 son or United States person;

3 (C) any foreign person or United States

4 person that is a parent or subsidiary of that per5 son if that parent or subsidiary materially and

6 with requisite knowledge assisted in the activities

7 which were the basis of that determination; and

8 (D) any foreign person or United States

9 person that is an affiliate of that person if that

10 affiliate materially and with requisite knowledge

11 assisted in the activities which were the basis of

12 that determination and if that affiliate is con13 trolled in fact by that person.

14 (3) OTHER SANCTIONS AVAILABLE.—The sanc15 tions which are required to be imposed for activities

16 described in this subsection is in addition to any

17 other sanction which may be imposed for the same ac18 tivities under any other provision of law.

19 (4) DEFINITION.—For purposes of this sub20 section, the term ‘‘requisite knowledge’’ means situa21 tions in which a person ‘‘knows’’, as ‘‘knowing’’ is de22 fined in section 104 of the Foreign Corrupt Practices

23 Act of 1977 (15 U.S.C. 78dd–2).

24 (b) CONSULTATION WITH AND ACTIONS BY FOREIGN

25 GOVERNMENT OF JURISDICTION.—
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1 (1) CONSULTATIONS.—If the President makes a

2 determination described in subsection (a)(1) with re3 spect to a foreign person, the Congress urges the

4 President to initiate consultations immediately with

5 the government with primary jurisdiction over that

6 foreign person with respect to the imposition of the

7 sanctions pursuant to this section.

8 (2) ACTIONS BY GOVERNMENT OF JURISDIC9 TION.—In order to pursue such consultations with

10 that government, the President may delay imposition

11 of the sanctions pursuant to this section for up to 90

12 days. Following these consultations, the President

13 shall impose the sanctions unless the President deter14 mines and certifies in writing to the Congress that

15 that government has taken specific and effective ac16 tions, including appropriate penalties, to terminate

17 the involvement of the foreign person in the activities

18 described in subsection (a)(1). The President may

19 delay the imposition of the sanctions for up to an ad20 ditional 90 days if the President determines and cer21 tifies in writing to the Congress that that government

22 is in the process of taking the actions described in the

23 preceding sentence.

24 (3) REPORT TO CONGRESS.—Not later than 90

25 days after making a determination under subsection
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1 (a)(1), the President shall submit to the Committee on

2 Foreign Relations and the Committee on Govern3 mental Affairs of the Senate and the Committee on

4 Foreign Affairs of the House of Representatives a re5 port on the status of consultations with the appro6 priate government under this subsection, and the

7 basis for any determination under paragraph (2) of

8 this subsection that such government has taken spe9 cific corrective actions.

10 (c) SANCTIONS.—

11 (1) DESCRIPTION OF SANCTIONS.—The sanctions

12 to be imposed pursuant to subsection (a)(1) are, ex13 cept as provided in paragraph (2) of this subsection,

14 the following:

15 (A) The United States Government shall not

16 procure, or enter into any contract for the pro17 curement of, any goods or services from any per18 son described in subsection (a)(2).

19 (B) The importation into the United States

20 of products produced by any person described in

21 subsection (a)(2) shall be prohibited.

22 (2) EXCEPTIONS.—The President shall not be re23 quired to apply or maintain the sanctions under this

24 section—
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1 (A) in the case of procurement of defense ar2 ticles or defense services—

3 (i) under existing contracts or sub4 contracts, including the exercise of options

5 for production quantities to satisfy require6 ments essential to the national security of

7 the United States;

8 (ii) if the President determines in

9 writing that the person or other entity to

10 which the sanctions would otherwise be ap11 plied is a sole source supplier of the defense

12 articles or services, that the defense articles

13 or services are essential, and that alter14 native sources are not readily or reasonably

15 available; or

16 (iii) if the President determines in

17 writing that such articles or services are es18 sential to the national security under de19 fense coproduction agreements;

20 (B) to products or services provided under

21 contracts entered into before the date on which

22 the President publishes his intention to impose

23 the sanctions;

24 (C) to—
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1 (i) spare parts which are essential to

2 United States products or production;

3 (ii) component parts, but not finished

4 products, essential to United States prod5 ucts or production; or

6 (iii) routine servicing and mainte7 nance of products, to the extent that alter8 native sources are not readily or reasonably

9 available;

10 (D) to information and technology essential

11 to United States products or production; or

12 (E) to medical or other humanitarian

13 items.

14 (d) ADVISORY OPINIONS.—Upon the request of any

15 person, the Secretary of State may, in consultation with

16 the Secretary of Defense, issue in writing an advisory opin17 ion to that person as to whether a proposed activity by that

18 person would subject that person to the sanctions under this

19 section. Any person who relies in good faith on such an

20 advisory opinion which states that the proposed activity

21 would not subject a person to such sanctions, and any per22 son who thereafter engages in such activity, may not be

23 made subject to such sanctions on account of such activity.

24 (e) TERMINATION OF THE SANCTIONS.—The sanctions

25 imposed pursuant to this section shall apply for a period
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1 of at least 12 months following the imposition of the sanc2 tions and shall cease to apply thereafter only if the Presi3 dent determines and certifies in writing to the Congress

4 that—

5 (1) reliable information indicates that the for6 eign person or United States person with respect to

7 which the determination was made under subsection

8 (a)(1) has ceased to aid or abet any individual,

9 group, or non-nuclear-weapon state in its efforts to

10 acquire unsafeguarded special nuclear material or

11 any nuclear explosive device, as described in that sub12 section; and

13 (2) the President has received reliable assurances

14 from the foreign person or United States person, as

15 the case may be, that such person will not, in the fu16 ture, aid or abet any individual, group, or non-nu17 clear-weapon state in its efforts to acquire

18 unsafeguarded special nuclear material or any nu19 clear explosive device, as described in subsection

20 (a)(1).

21 (f) WAIVER.—

22 (1) CRITERION FOR WAIVER.—The President

23 may waive the application of the sanctions imposed

24 on any person pursuant to this section, after the end

25 of the 12-month period beginning on the date on
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1 which that sanctions was imposed on that person, if

2 the President determines and certifies in writing to

3 the Congress that the continued imposition of the

4 sanctions would have a serious adverse effect on vital

5 United States interests.

6 (2) NOTIFICATION OF AND REPORT TO CON7 GRESS.—If the President decides to exercise the waiv8 er authority provided in paragraph (1), the President

9 shall so notify the Congress not less than 20 days be10 fore the waiver takes effect. Such notification shall in11 clude a report fully articulating the rationale and

12 circumstances which led the President to exercise the

13 waiver authority.

14 SEC. 222. ELIGIBILITY FOR ASSISTANCE.

15 (a) AMENDMENTS TO THE ARMS EXPORT CONTROL

16 ACT.—

17 (1) PROHIBITION.—Section 3 of the Arms Ex18 port Control Act (22 U.S.C. 2753) is amended by

19 adding at the end the following new subsection:

20 ‘‘(f) No sales or leases shall be made to any country

21 that the President has determined is in material breach of

22 its binding commitments to the United States under inter23 national treaties or agreements concerning the nonprolifera24 tion of nuclear explosive devices (as defined in section

25 231(4) of the Nuclear Proliferation Prevention Act of 1994)
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1 and unsafeguarded special nuclear material (as defined in

2 section 231(8) of that Act).’’.

3 (2) DEFINITION OF SUPPORT FOR INTER4 NATIONAL TERRORISM.—Section 40 of such Act (22

5 U.S.C. 2780) is amended—

6 (A) in subsection (d), by adding at the end

7 the following new sentence: ‘‘For purposes of this

8 subsection, such acts shall include all activities

9 that the Secretary determines willfully aid or

10 abet the international proliferation of nuclear ex11 plosive devices to individuals or group or will12 fully aid or abet an individual or groups in ac13 quiring unsafeguarded special nuclear mate14 rial.’’; and

15 (B) in subsection (l)—

16 (i) in paragraph (2), by striking

17 ‘‘and’’ after the semicolon;

18 (ii) in paragraph (3), by striking the

19 period at the end and inserting a semicolon;

20 and

21 (iii) by adding at the end the follow22 ing:

23 ‘‘(4) the term ‘nuclear explosive device’ has the

24 meaning given that term in section 231(4) of the Nu25 clear Proliferation Prevention Act of 1994; and
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1 ‘‘(5) the term ‘unsafeguarded special nuclear ma2 terial’ has the meaning given that term in section

3 231(8) of the Nuclear Proliferation Prevention Act of

4 1994.’’.

5 (b) FOREIGN ASSISTANCE ACT OF 1961.—

6 (1) PRESIDENTIAL DETERMINATION 82–7.— Not7 withstanding any other provision of law, Presidential

8 Determination No. 82–7 of February 10, 1982, made

9 pursuant to section 670(a)(2) of the Foreign Assist10 ance Act of 1961, shall have no force or effect with re11 spect to any grounds for the prohibition of assistance

12 under section 102(a) of the Arms Export Control Act

13 arising on or after the effective date of this part.

14 (2) AMENDMENT.—Section 620E(d) of the For15 eign Assistance Act of 1961 (22 U.S.C. 2375(d)) is

16 amended to read as follows:

17 ‘‘(d) The President may waive the prohibitions of sec18 tion 101 of the Arms Export Control Act with respect to

19 any grounds for the prohibition of assistance under that

20 section arising before the effective date of part B of the Nu21 clear Proliferation Prevention Act of 1994 to provide assist22 ance to Pakistan if he determines that to do so is in the

23 national interest of the United States.’’.
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1 SEC. 223. ROLE OF INTERNATIONAL FINANCIAL INSTITU2 TIONS.

3 (a) IN GENERAL.—The Secretary of the Treasury shall

4 instruct the United States executive director to each of the

5 international financial institutions described in section

6 701(a) of the International Financial Institutions Act (22

7 U.S.C. 262d(a)) to use the voice and vote of the United

8 States to oppose any use of the institution’s funds to pro9 mote the acquisition of unsafeguarded special nuclear mate10 rial or the development, stockpiling, or use of any nuclear

11 explosive device by any non-nuclear-weapon state.

12 (b) DUTIES OF UNITED STATES EXECUTIVE DIREC13 TORS.—Section 701(b)(3) of the International Financial

14 Institutions Act (22 U.S.C. 262d(b)(3)) is amended to read

15 as follows:

16 ‘‘(3) whether the recipient country—

17 ‘‘(A) is seeking to acquire unsafeguarded

18 special nuclear material (as defined in section

19 231(8) of the Nuclear Proliferation Prevention

20 Act of 1994) or a nuclear explosive device (as de21 fined in section 231(4) of that Act);

22 ‘‘(B) is not a State Party to the Treaty on

23 the Non-Proliferation of Nuclear Weapons; or

24 ‘‘(C) has detonated a nuclear explosive de25 vice; and’’.
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1 SEC. 224. PROHIBITION ON ASSISTING NUCLEAR PRO2 LIFERATION THROUGH THE PROVISION OF

3 FINANCING.

4 (a) PROHIBITED ACTIVITY DEFINED.—For purposes of

5 this section, the term ‘‘prohibited activity’’ means the act

6 of knowingly, materially, and directly contributing or at7 tempting to contribute, through the provision of financing,

8 to—

9 (1) the acquisition of unsafeguarded special nu10 clear material; or

11 (2) the use, development, production, stockpiling,

12 or other acquisition of any nuclear explosive device,

13 by any individual, group, or non-nuclear-weapon state.

14 (b) PROHIBITION.—To the extent that the United

15 States has jurisdiction to prohibit such activity by such per16 son, no United States person and no foreign person may

17 engage in any prohibited activity.

18 (c) PRESIDENTIAL DETERMINATION AND ORDER WITH

19 RESPECT TO UNITED STATES AND FOREIGN PERSONS.—

20 If the President determines, in writing after opportunity

21 for a hearing on the record, that a United States person

22 or a foreign person has engaged in a prohibited activity

23 (without regard to whether subsection (b) applies), the

24 President shall, by order, impose the sanctions described in

25 subsection (d) on such person.
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1 (d) SANCTIONS.—The following sanctions shall be im2 posed pursuant to any order issued under subsection (c)

3 with respect to any United States person or any foreign

4 person:

5 (1) BAN ON DEALINGS IN GOVERNMENT FI6 NANCE.—

7 (A) DESIGNATION AS PRIMARY DEALER.—

8 Neither the Board of Governors of the Federal

9 Reserve System nor the Federal Reserve Bank of

10 New York may designate, or permit the continu11 ation of any prior designation of, the person as

12 a primary dealer in United States Government

13 debt instruments.

14 (B) SERVICE AS DEPOSITARY.—The person

15 may not serve as a depositary for United States

16 Government funds.

17 (2) RESTRICTIONS ON OPERATIONS.—The person

18 may not, directly or indirectly—

19 (A) commence any line of business in the

20 United States in which the person was not en21 gaged as of the date of the order; or

22 (B) conduct business from any location in

23 the United States at which the person did not

24 conduct business as of the date of the order.
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1 (e) JUDICIAL REVIEW.—Any determination of the

2 President under subsection (c) shall be subject to judicial

3 review in accordance with chapter 7 of part I of title 5,

4 United States Code.

5 (f) CONSULTATION WITH AND ACTIONS BY FOREIGN

6 GOVERNMENT OF JURISDICTION.—

7 (1) CONSULTATIONS.—If the President makes a

8 determination under subsection (c) with respect to a

9 foreign person, the Congress urges the President to

10 initiate consultations immediately with any appro11 priate foreign government with respect to the imposi12 tion of any sanction pursuant to this section.

13 (2) ACTIONS BY GOVERNMENT OF JURISDIC14 TION.—

15 (A) SUSPENSION OF IMPOSITION OF SANC16 TIONS.—In order to pursue consultations de17 scribed in paragraph (1) with any government

18 referred to in such paragraph, the President may

19 delay, for up to 90 days, the effective date of an

20 order under subsection (c) imposing any sanc21 tion.

22 (B) COORDINATION WITH ACTIVITIES OF

23 FOREIGN GOVERNMENT.—Following consulta24 tions described in paragraph (1), the order is25 sued by the President under subsection (c) im-
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1 posing any sanction on a foreign person shall

2 take effect unless the President determines, and

3 certifies in writing to the Congress, that the gov4 ernment referred to in paragraph (1) has taken

5 specific and effective actions, including the impo6 sition of appropriate penalties, to terminate the

7 involvement of the foreign person in any prohib8 ited activity.

9 (C) EXTENSION OF PERIOD.—After the end

10 of the period described in subparagraph (A), the

11 President may delay, for up to an additional 90

12 days, the effective date of an order issued under

13 subsection (c) imposing any sanction on a for14 eign person if the President determines, and cer15 tifies in writing to the Congress, that the appro16 priate foreign government is in the process of

17 taking actions described in subparagraph (B).

18 (3) REPORT TO CONGRESS.—Before the end of

19 the 90-day period beginning on the date on which an

20 order is issued under subsection (c), the President

21 shall submit to the Congress a report on—

22 (A) the status of consultations under this

23 subsection with the government referred to in

24 paragraph (1); and
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1 (B) the basis for any determination under

2 paragraph (2) that such government has taken

3 specific corrective actions.

4 (g) TERMINATION OF THE SANCTIONS.—Any sanction

5 imposed on any person pursuant to an order issued under

6 subsection (c) shall—

7 (1) remain in effect for a period of not less than

8 12 months; and

9 (2) cease to apply after the end of such 12-month

10 period only if the President determines, and certifies

11 in writing to the Congress, that—

12 (A) the person has ceased to engage in any

13 prohibited activity; and

14 (B) the President has received reliable as15 surances from such person that the person will

16 not, in the future, engage in any prohibited ac17 tivity.

18 (h) WAIVER.—The President may waive the continued

19 application of any sanction imposed on any person pursu20 ant to an order issued under subsection (c) if the President

21 determines, and certifies in writing to the Congress, that

22 the continued imposition of the sanction would have a seri23 ous adverse effect on the safety and soundness of the domes24 tic or international financial system or on domestic or

25 international payments systems.
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1 (i) ENFORCEMENT ACTION.—The Attorney General

2 may bring an action in an appropriate district court of

3 the United States for injunctive and other appropriate relief

4 with respect to—

5 (1) any violation of subsection (b); or

6 (2) any order issued under subsection (c).

7 (j) KNOWINGLY DEFINED.—

8 (1) IN GENERAL.—For purposes of this section,

9 the term ‘‘knowingly’’ means the state of mind of a

10 person with respect to conduct, a circumstance, or a

11 result in which—

12 (A) such person is aware that such person

13 is engaging in such conduct, that such cir14 cumstance exists, or that such result is substan15 tially certain to occur; or

16 (B) such person has a firm belief that such

17 circumstance exists or that such result is sub18 stantially certain to occur.

19 (2) KNOWLEDGE OF THE EXISTENCE OF A PAR20 TICULAR CIRCUMSTANCE.—If knowledge of the exist21 ence of a particular circumstance is required for an

22 offense, such knowledge is established if a person is

23 aware of a high probability of the existence of such

24 circumstance, unless the person actually believes that

25 such circumstance does not exist.
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1 (k) SCOPE OF APPLICATION.—This section shall apply

2 with respect to prohibited activities which occur on or after

3 the date this part takes effect.

4 SEC. 225. EXPORT-IMPORT BANK.

5 Section 2(b)(4) of the Export-Import Bank Act of 1945

6 (12 U.S.C. 635(b)(4)) is amended in the first sentence by

7 inserting after ‘‘device’’ the following: ‘‘(as defined in sec8 tion 231(4) of the Nuclear Proliferation Prevention Act of

9 1994), or that any country has willfully aided or abetted

10 any non-nuclear-weapon state (as defined in section 231(5)

11 of that Act) to acquire any such nuclear explosive device

12 or to acquire unsafeguarded special nuclear material (as

13 defined in section 231(8) of that Act)’’.

14 SEC. 226. SANCTIONS AGAINST COUNTRIES INVOLVED IN

15 TRANSFER OF NUCLEAR WEAPONS OR DE16 SIGN INFORMATION OR COMPONENTS.

17 (a) DETERMINATION OF THE PRESIDENT.—Except as

18 provided in subsections (d), (e), and (f), in the event that

19 the President determines that any country, on or after the

20 effective date of this part—

21 (1) transfers to a non-nuclear-weapon state a

22 nuclear explosive device,

23 (2) is a non-nuclear-weapon state and either—

24 (A) receives a nuclear explosive device, or

25 (B) detonates a nuclear explosive device,
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1 (3) transfers to a non-nuclear-weapon state any

2 design information or component which is determined

3 by the President to be important to, and known by

4 the transferring country to be intended by the recipi5 ent state for use in, the development or manufacture

6 of any nuclear explosive device, or

7 (4) is a non-nuclear-weapon state and seeks and

8 receives any design information or component which

9 is determined by the President to be important to,

10 and intended by the recipient state for use in, the de11 velopment or manufacture of any nuclear explosive

12 device,

13 then the President shall forthwith report to the Congress in

14 writing his determination with respect to that country and

15 shall forthwith impose the sanctions described in subsection

16 (b) against that country.

17 (b) SANCTIONS.—The sanctions referred to in sub18 section (a) are as follows:

19 (1) The United States Government shall termi20 nate assistance to that country under the Foreign As21 sistance Act of 1961, except for humanitarian assist22 ance or food or other agricultural commodities.

23 (2) The United States Government shall—

24 (A) terminate sales to that country under

25 the Arms Export Control Act of any defense arti-
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1 cles, defense services, or design and construction

2 services, and

3 (B) terminate and deny licenses for the ex4 port to that country of any item on the United

5 States Munitions List.

6 (3) The United States Government shall termi7 nate all foreign military financing for that country

8 under the Arms Export Control Act.

9 (4) The United States Government shall deny to

10 that country any credit, credit guarantees, or other fi11 nancial assistance by any department, agency, or in12 strumentality of the United States Government, ex13 cept that the sanction of this paragraph shall not

14 apply—

15 (A) to any transaction subject to the report16 ing requirements of title V of the National Secu17 rity Act of 1947 (relating to congressional over18 sight of intelligence activities), or

19 (B) to humanitarian assistance.

20 (5) The United States Government shall oppose,

21 in accordance with section 701 of the International

22 Financial Institutions Act (22 U.S.C. 262d), the ex23 tension of any loan or financial or technical assist24 ance to that country by any international financial

25 institution.
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1 (6) The United States Government shall prohibit

2 any United States bank from making any loan or

3 providing any credit to the government of that coun4 try, except for loans or credits for the purpose of pur5 chasing food or other agricultural commodities.

6 (7) The authorities of section 106 of the Export

7 Act of 1994 shall be used to prohibit exports to that

8 country of specific goods and technology (excluding

9 food and other agricultural commodities), except that

10 such prohibition shall not apply to any transaction

11 subject to the reporting requirements of title V of the

12 National Security Act of 1947 (relating to congres13 sional oversight of intelligence activities).

14 Ω(8) In addition to the sanctions pro15 vided for in paragraphs (1) through (7),

16 the President may prohibit the importa17 tion into the United States of goods that

18 are the growth, product, or manufacture

19 of that country. The President shall de20 termine the type and volume of imports

21 to be prohibited.æ

22 (c) DEFINITIONS.—As used in this section—

23 (1) the term ‘‘design information’’ means specific

24 information that relates to the design of a nuclear ex-
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1 plosive device and that is not available to the public;

2 and

3 (2) the term ‘‘component’’ means a specific com4 ponent of a nuclear explosive device.

5 (d) AUTHORITY TO DELAY SANCTIONS RELATING TO

6 NUCLEAR EXPLOSIVE DEVICES.—

7 (1) PRESIDENTIAL CERTIFICATION.—Notwith8 standing subsection (a), the President may, for a pe9 riod of not more than 30 days of continuous session,

10 delay the imposition of sanctions which would other11 wise be required under subsection (a)(1) or (2) if the

12 President first transmits to the Speaker of the House

13 of Representatives, and to the chairman of the Com14 mittee on Foreign Relations of the Senate, a certifi15 cation that he has determined that an immediate im16 position of sanctions on that country would be det17 rimental to the national security of the United States.

18 Not more than one such certification may be trans19 mitted for a country with respect to the same detona20 tion, transfer, or receipt of a nuclear explosive device.

21 (2) AUTHORITY TO GRANT WAIVER.—(A) If the

22 President transmits a certification to the Congress

23 under paragraph (1), a joint resolution which would

24 permit the President to exercise the waiver authority

25 of subsection (e) shall, if introduced in either House
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1 within 30 days of continuous session after the Con2 gress receives this certification, be considered in the

3 Senate in accordance with subparagraph (B).

4 (B) Any joint resolution under this paragraph

5 shall be considered in the Senate in accordance with

6 the provisions of section 601(b) of the International

7 Security Assistance and Arms Export Control Act of

8 1976.

9 (C) For purposes of this paragraph, the term

10 ‘‘joint resolution’’ means a joint resolution the matter

11 after the resolving clause of which is as follows: ‘‘That

12 the Congress having received on ll a certification

13 by the President under section 226(d)(1) of the Nu14 clear Proliferation Prevention Act of 1994 with re15 spect to ll, the Congress hereby authorizes the

16 President to exercise the waiver authority contained

17 in section 226(e) of that Act.’’, with the date of receipt

18 of the certification inserted in the first blank and the

19 name of the country inserted in the second blank.

20 (e) WAIVER AUTHORITY.—Notwithstanding subsection

21 (a), if the Congress enacts a joint resolution under sub22 section (d), the President may waive any sanction which

23 would otherwise be required under subsection (a)(1) or (2)

24 if he determines and certifies in writing to the Speaker of

25 the House of Representatives and the Committee on Foreign
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1 Relations of the Senate that the imposition of such sanction

2 would be seriously prejudicial to the achievement of United

3 States nonproliferation objectives or otherwise jeopardize

4 the common defense and security. The President shall trans5 mit with such certification a statement setting forth the spe6 cific reasons therefor.

7 (f) SANCTIONS RELATING TO INFORMATION AND COM8 PONENTS.—

9 (1) IMPOSITION.—In the event the President is

10 required to impose sanctions against a country under

11 subsection (a)(3) or (a)(4), the President shall forth12 with so inform such country and shall impose the re13 quired sanctions beginning 30 days after submitting

14 to the Congress the report required by subsection (a)

15 unless, and to the extent that, there is enacted during

16 the 30-day period a law prohibiting the imposition of

17 such sanctions.

18 (2) WAIVER.—Notwithstanding any other provi19 sion of law, the sanctions which are required to be

20 imposed against a country under subsection (a)(3) or

21 (4) shall not apply if the President determines and

22 certifies in writing to the Committee on Foreign Rela23 tions and the Committee on Governmental Affairs of

24 the Senate and the Committee on Foreign Affairs of

25 the House of Representatives that the application of
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1 such sanctions against such country would have a se2 rious adverse effect on vital United States interests.

3 The President shall transmit with such certification a

4 statement setting forth the specific reasons therefor.

5 (g) CONTINUITY OF SESSION.—For purposes of this

6 section, continuity of session is broken only by an adjourn7 ment of the Congress sine die and the days on which either

8 House of Congress is not in session because of an adjourn9 ment of more than three days to a day certain are excluded

10 in the computation of any period of time in which the Con11 gress is in continuous session.

12 (h) AUTHORITY OF THE PRESIDENT NOT DELE13 GABLE.—The President may not delegate or transfer his

14 power, authority, or discretion to make or modify deter15 minations under this section.

16 SEC. 227. AMENDMENT TO THE ARMS EXPORT CONTROL

17 ACT.

18 (a) IN GENERAL.—The Arms Export Control Act is

19 amended by adding at the end the following new chapter:

20 ‘‘CHAPTER 10—NUCLEAR

21 NONPROLIFERATION CONTROLS

22 ‘‘SEC. 101. NUCLEAR ENRICHMENT TRANSFERS.

23 ‘‘(a) PROHIBITIONS; SAFEGUARDS AND MANAGE24 MENT.—Except as provided in subsection (b), no funds

25 made available to carry out the Foreign Assistance Act of
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1 1961 or this Act may be used for the purpose of providing

2 economic assistance (including assistance under chapter 4

3 of part II of the Foreign Assistance Act of 1961), providing

4 military assistance or grant military education and train5 ing, providing assistance under chapter 6 of part II of that

6 Act, or extending military credits or making guarantees,

7 to any country which the President determines delivers nu8 clear enrichment equipment, materials, or technology to

9 any other country on or after August 4, 1977, or receives

10 such equipment, materials, or technology from any other

11 country on or after August 4, 1977, unless before such deliv12 ery—

13 ‘‘(1) the supplying country and receiving coun14 try have reached agreement to place all such equip15 ment, materials, or technology, upon delivery, under

16 multilateral auspices and management when avail17 able; and

18 ‘‘(2) the recipient country has entered into an

19 agreement with the International Atomic Energy

20 Agency to place all such equipment, materials, tech21 nology, and all nuclear fuel and facilities in such

22 country, under the safeguards system of such Agency.

23 ‘‘(b) CERTIFICATION BY PRESIDENT OF NECESSITY OF

24 CONTINUED ASSISTANCE; DISAPPROVAL BY CONGRESS.—

25 (1) Notwithstanding subsection (a), the President may fur-
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1 nish assistance which would otherwise be prohibited under

2 such subsection if he determines and certifies in writing to

3 the Speaker of the House of Representatives and the Com4 mittee on Foreign Relations of the Senate 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 the

9 country in question will not acquire or develop nu10 clear 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 take

14 effect on the date on which the certification is received by

15 the Congress. However, if, within 30 calendar days after

16 receiving this certification, the Congress enacts a joint reso17 lution stating in substance that the Congress disapproves

18 the furnishing of assistance pursuant to the certification,

19 then upon the enactment of that resolution the certification

20 shall cease to be effective and all deliveries of assistance fur21 nished under the authority of that certification shall be sus22 pended 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 Assist2 ance 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 carry

10 out the Foreign Assistance Act of 1961 or this Act may be

11 used for the purpose of providing economic assistance (in12 cluding assistance under chapter 4 of part II of the Foreign

13 Assistance Act of 1961), providing military assistance or

14 grant military education and training, providing assist15 ance under chapter 6 of part II of that Act, or extending

16 military credits or making guarantees, to any country

17 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, ma21 terials, or technology from any other country on or

22 after August 4, 1977 (except for the transfer of reproc23 essing technology associated with the investigation,

24 under international evaluation programs in which
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1 the United States participates, of technologies which

2 are alternatives to pure plutonium reprocessing), or

3 ‘‘(2) is a non-nuclear-weapon state which, on or

4 after August 8, 1985, exports illegally (or attempts to

5 export illegally) from the United States any material,

6 equipment, or technology which would contribute sig7 nificantly to the ability of such country to manufac8 ture a nuclear explosive device, if the President deter9 mines that the material, equipment, or technology

10 was to be used by such country in the manufacture

11 of a nuclear explosive device.

12 For purposes of paragraph (2), an export (or attempted ex13 port) by a person who is an agent of, or is otherwise acting

14 on behalf of or in the interests of, a country shall be consid15 ered to be an export (or attempted export) by that country.

16 ‘‘(b) EXCEPTION.—(1) Notwithstanding subsection (a),

17 the President in any fiscal year may furnish assistance

18 which would otherwise be prohibited under that subsection

19 if he determines and certifies in writing during that fiscal

20 year to the Speaker of the House of Representatives and

21 the Committee on Foreign Relations of the Senate that the

22 termination of such assistance would be seriously preju23 dicial to the achievement of United States nonproliferation

24 objectives or would otherwise jeopardize the common defense
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1 and security. The President shall transmit with such certifi2 cation a statement setting forth the specific reasons therefor.

3 ‘‘(2)(A) A certification under paragraph (1) shall take

4 effect on the date on which the certification is received by

5 the Congress. However, if, within 30 calendar days after

6 receiving this certification, the Congress enacts a joint reso7 lution stating in substance that the Congress disapproves

8 the furnishing of assistance pursuant to the certification,

9 then upon the enactment of that resolution the certification

10 shall cease to be effective and all deliveries of assistance fur11 nished under the authority of that certification shall be sus12 pended immediately.

13 ‘‘(B) Any joint resolution under this paragraph shall

14 be considered in the Senate in accordance with the provi15 sions of section 601(b) of the International Security Assist16 ance and Arms Export Control Act of 1976.

17 ‘‘SEC. 103. DEFINITION OF NUCLEAR EXPLOSIVE DEVICE.

18 ‘‘As used in this chapter, the term ‘nuclear explosive

19 device’ has the meaning given that term in section 231(4)

20 of the Nuclear Proliferation Prevention Act of 1994.’’.

21 (b) REPEALS.—Sections 669 and 670 of the Foreign

22 Assistance Act of 1961 are hereby repealed.

23 (c) REFERENCES IN LAW.—Any reference in law as

24 of the effective date of this part to section 669 or 670 of

25 the Foreign Assistance Act of 1961 shall, on and after such
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1 date, be deemed to be a reference to section 101 or 102 of

2 the Arms Export Control Act, or section 226 of this Act,

3 as the case may be.

4 SEC. 228. REWARD.

5 Section 36(a) of the State Department Basic Authori6 ties Act of 1956 (22 U.S.C. 2708(a)) is amended—

7 (1) by redesignating paragraphs (1) through (3)

8 as subparagraphs (A) through (C), respectively;

9 (2) by inserting ‘‘(1)’’ after ‘‘(a)’’; and

10 (3) by adding at the end the following:

11 ‘‘(2) For purposes of this subsection, the term ‘act of

12 international terrorism’ includes any act substantially con13 tributing to the acquisition of unsafeguarded special nu14 clear material (as defined in section 231(8) of the Nuclear

15 Proliferation Prevention Act of 1994) or any nuclear explo16 sive device (as defined in section 231(4) of that Act) by an

17 individual, group, or non-nuclear-weapon state (as defined

18 in section 231(5) of that Act).’’.

19 SEC. 229. REPORTS.

20 (a) CONTENT OF ACDA ANNUAL REPORT.—Section 51

21 of the Arms Control and Disarmament Act, as amended by

22 section 717 of the Foreign Relations Authorization Act, Fis23 cal Years 1994 and 1995, is amended—

24 (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 preven10 tion of the spread of nuclear explosive devices (as de11 fined in section 231(4) of the Nuclear Proliferation

12 Prevention Act of 1994) by non-nuclear-weapon states

13 (as defined in section 231(5) of that Act) or the acqui14 sition by such states of unsafeguarded special nuclear

15 material (as defined in section 231(8) of that Act),

16 including—

17 ‘‘(A) a net assessment of the aggregate mili18 tary significance of all such violations;

19 ‘‘(B) a statement of the compliance policy of

20 the United States with respect to violations of

21 those commitments; and

22 ‘‘(C) what actions, if any, the President has

23 taken or proposes to take to bring any nation

24 committing such a violation into compliance

25 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.—If

4 the President in consecutive reports submitted to the Con5 gress under this section reports that any designated nation

6 is not in full compliance with its binding nonproliferation

7 commitments to the United States, then the President shall

8 include in the second such report an assessment of what

9 actions are necessary to compensate for such violations.’’.

10 (b) REPORTING ON DEMARCHES.—(1) It is the sense

11 of the Congress that the Department of State should, in the

12 course of implementing its reporting responsibilities under

13 section 602(c) of the Nuclear Non-Proliferation Act of 1978,

14 include a summary of demarches that the United States has

15 issued or received from foreign governments with respect to

16 activities which are of significance from the proliferation

17 standpoint.

18 (2) For purposes of this section, the term ‘‘demarche’’

19 means any official communication by one government to

20 another, by written or oral means, intended by the originat21 ing government to express—

22 (A) a concern over a past, present, or possible fu23 ture action or activity of the recipient government, or

24 of a person within the jurisdiction of that govern25 ment, contributing to the global spread of
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1 unsafeguarded special nuclear material or of nuclear

2 explosive devices;

3 (B) a request for the recipient government to

4 counter such action or activity; or

5 (C) both the concern and request described in

6 subparagraphs (A) and (B).

7 SEC. 230. TECHNICAL CORRECTION.

8 Section 133 b. of the Atomic Energy Act of 1954 (42

9 U.S.C. 2160c) is amended by striking ‘‘20 kilograms’’ and

10 inserting ‘‘5 kilograms’’.

11 SEC. 231. DEFINITIONS.

12 For purposes of this part—

13 (1) the term ‘‘foreign person’’ means—

14 (A) an individual who is not a citizen of

15 the United States or an alien admitted for per16 manent residence to the United States; or

17 (B) a corporation, partnership, or other

18 nongovernment entity which is created or orga19 nized under the laws of a foreign country or

20 which has its principal place of business outside

21 the United States;

22 (2) the term ‘‘goods or technology’’ means—

23 (A) nuclear materials and equipment and

24 sensitive nuclear technology (as such terms are

25 defined in section 4 of the Nuclear Non-Pro-
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1 liferation Act of 1978), all export items des2 ignated by the President pursuant to section

3 309(c) of the Nuclear Non-Proliferation Act of

4 1978, and all technical assistance requiring au5 thorization under section 57 b. of the Atomic En6 ergy Act of 1954; and

7 (B) in the case of exports from a country

8 other than the United States, any goods or tech9 nology that, if exported from the United States,

10 would be goods or technology described in sub11 paragraph (A);

12 (3) the term ‘‘IAEA safeguards’’ means the safe13 guards set forth in an agreement between a country

14 and the International Atomic Energy Agency, as au15 thorized by Article III(A)(5) of the Statute of the

16 International Atomic Energy Agency;

17 (4) the term ‘‘nuclear explosive device’’ means

18 any device, whether assembled or disassembled, that is

19 designed to produce an instantaneous release of an

20 amount of nuclear energy from special nuclear mate21 rial that is greater than the amount of energy that

22 would be released from the detonation of one pound

23 of trinitrotoluene (TNT);

24 (5) the term ‘‘non-nuclear-weapon state’’ means

25 any country which is not a nuclear-weapon state, as
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1 defined by Article IX (3) of the Treaty on the Non2 Proliferation of Nuclear Weapons, signed at Washing3 ton, London, and Moscow on July 1, 1968;

4 (6) the term ‘‘special nuclear material’’ has the

5 meaning given that term in section 11 aa. of the

6 Atomic Energy Act of 1954 (42 U.S.C. 2014aa);

7 (7) the term ‘‘United States person’’ means—

8 (A) an individual who is a citizen of the

9 United States or an alien admitted for perma10 nent residence to the United States; or

11 (B) a corporation, partnership, or other

12 nongovernment entity which is not a foreign per13 son; and

14 (8) the term ‘‘unsafeguarded special nuclear ma15 terial’’ means special nuclear material which is held

16 in violation of IAEA safeguards or not subject to

17 IAEA safeguards (excluding any quantity of material

18 that could, if it were exported from the United States,

19 be exported under a general license issued by the Nu20 clear Regulatory Commission).

21 SEC. 232. EFFECTIVE DATE.

22 The provisions of this part, and the amendments made

23 by this part, shall take effect 60 days after the date of the

24 enactment of this Act.
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1 PART C—INTERNATIONAL ATOMIC ENERGY

2 AGENCY

3 SEC. 241. BILATERAL AND MULTILATERAL INITIATIVES.

4 It is the sense of the Congress that in order to maintain

5 and enhance international confidence in the effectiveness of

6 IAEA safeguards and in other multilateral undertakings to

7 halt the global proliferation of nuclear weapons, the United

8 States should seek to negotiate with other nations and

9 groups of nations, including the IAEA Board of Governors

10 and the Nuclear Suppliers Group, to—

11 (1) build international support for the principle

12 that nuclear supply relationships must require pur13 chasing nations to agree to full-scope international

14 safeguards;

15 (2) encourage each nuclear-weapon state within

16 the meaning of the Treaty to undertake a comprehen17 sive review of its own procedures for declassifying in18 formation relating to the design or production of nu19 clear explosive devices and to investigate any meas20 ures that would reduce the risk of such information

21 contributing to nuclear weapons proliferation;

22 (3) encourage the deferral of efforts to produce

23 weapons-grade nuclear material for large-scale com24 mercial uses until such time as safeguards are devel25 oped that can detect, on a timely and reliable basis,
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1 the diversion of significant quantities of such mate2 rial for nuclear explosive purposes;

3 (4) pursue greater financial support for the im4 plementation and improvement of safeguards from all

5 IAEA member nations with significant nuclear pro6 grams, particularly from those nations that are cur7 rently using or planning to use weapons-grade nu8 clear material for commercial purposes;

9 (5) arrange for the timely payment of annual fi10 nancial contributions by all members of the IAEA,

11 including the United States;

12 (6) pursue the elimination of international com13 merce in highly enriched uranium for use in research

14 reactors while encouraging multilateral cooperation to

15 develop and to use low-enriched alternative nuclear

16 fuels;

17 (7) oppose efforts by non-nuclear-weapon states

18 to develop or use unsafeguarded nuclear fuels for pur19 poses of naval propulsion;

20 (8) pursue an international open skies arrange21 ment that would authorize the IAEA to operate sur22 veillance aircraft and would facilitate IAEA access to

23 satellite information for safeguards verification pur24 poses;
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1 (9) develop an institutional means for IAEA

2 member nations to share intelligence material with

3 the IAEA on possible safeguards violations without

4 compromising national security or intelligence

5 sources or methods;

6 (10) require any exporter of a sensitive nuclear

7 facility or sensitive nuclear technology to a non-nu8 clear-weapon state to notify the IAEA prior to export

9 and to require safeguards over that facility or tech10 nology, regardless of its destination; and

11 (11) seek agreement among the parties to the

12 Treaty to apply IAEA safeguards in perpetuity and

13 to establish new limits on the right to withdraw from

14 the Treaty.

15 SEC. 242. IAEA INTERNAL REFORMS.

16 In order to promote the early adoption of reforms in

17 the implementation of the safeguards responsibilities of the

18 IAEA, the Congress urges the President to negotiate with

19 other nations and groups of nations, including the IAEA

20 Board of Governors and the Nuclear Suppliers Group, to—

21 (1) improve the access of the IAEA within nu22 clear facilities that are capable of producing, process23 ing, or fabricating special nuclear material suitable

24 for use in a nuclear explosive device;
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1 (2)(A) facilitate the IAEA’s efforts to meet and

2 to maintain its own goals for detecting the diversion

3 of nuclear materials and equipment, giving particu4 lar attention to facilities in which there are bulk

5 quantities of plutonium; and

6 (B) if it is not technically feasible for the IAEA

7 to meet those detection goals in a particular facility,

8 require the IAEA to declare publicly that it is unable

9 to do so;

10 (3) enable the IAEA to issue fines for violations

11 of safeguards procedures, to pay rewards for informa12 tion on possible safeguards violations, and to establish

13 a ‘‘hot line’’ for the reporting of such violations and

14 other illicit uses of weapons-grade nuclear material;

15 (4) establish safeguards at facilities engaged in

16 the manufacture of equipment or material that is es17 pecially designated or prepared for the processing,

18 use, or production of special fissionable material or,

19 in the case of non-nuclear-weapon states, of any nu20 clear explosive device;

21 (5) establish safeguards over nuclear research

22 and development activities and facilities;

23 (6) implement special inspections of undeclared

24 nuclear facilities, as provided for under existing safe25 guards procedures, and seek authority for the IAEA
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1 to conduct challenge inspections on demand at sus2 pected nuclear sites;

3 (7) expand the scope of safeguards to include

4 tritium, uranium concentrates, and nuclear waste

5 containing special fissionable material, and increase

6 the scope of such safeguards on heavy water;

7 (8) revise downward the IAEA’s official mini8 mum amounts of nuclear material (‘‘significant

9 quantity’’) needed to make a nuclear explosive device

10 and establish these amounts as national rather than

11 facility standards;

12 (9) expand the use of full-time resident IAEA in13 spectors at sensitive fuel cycle facilities;

14 (10) promote the use of near real time material

15 accountancy in the conduct of safeguards at facilities

16 that use, produce, or store significant quantities of

17 special fissionable material;

18 (11) develop with other IAEA member nations

19 an agreement on procedures to expedite approvals of

20 visa applications by IAEA inspectors;

21 (12) provide the IAEA the additional funds,

22 technical assistance, and political support necessary

23 to carry out the goals set forth in this subsection; and

24 (13) make public the annual safeguards imple25 mentation report of the IAEA, establishing a public
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1 registry of commodities in international nuclear com2 merce, including dual-use goods, and creating a pub3 lic repository of current nuclear trade control laws,

4 agreements, regulations, and enforcement and judicial

5 actions by IAEA member nations.

6 SEC. 243. REPORTING REQUIREMENT.

7 (a) REPORT REQUIRED.—The President shall, in the

8 report required by section 601(a) of the Nuclear Non-Pro9 liferation Act of 1978, describe—

10 (1) the steps he has taken to implement sections

11 241 and 242, and

12 (2) the progress that has been made and the ob13 stacles that have been encountered in seeking to meet

14 the objectives set forth in sections 241 and 242.

15 (b) CONTENTS OF REPORT.—Each report under para16 graph (1) shall describe—

17 (1) the bilateral and multilateral initiatives that

18 the President has taken during the period since the

19 enactment of this Act in pursuit of each of the objec20 tives set forth in sections 241 and 242;

21 (2) any obstacles that have been encountered in

22 the pursuit of those initiatives;

23 (3) any additional initiatives that have been

24 proposed by other countries or international organi-
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1 zations to strengthen the implementation of IAEA

2 safeguards;

3 (4) all activities of the Federal Government in

4 support of the objectives set forth in sections 241 and

5 242;

6 (5) any recommendations of the President on ad7 ditional measures to enhance the effectiveness of IAEA

8 safeguards; and

9 (6) any initiatives that the President plans to

10 take in support of each of the objectives set forth in

11 sections 241 and 242.

12 SEC. 244. DEFINITIONS.

13 As used in this part—

14 (1) the term ‘‘highly enriched uranium’’ means

15 uranium enriched to 20 percent or more in the iso16 tope U–235;

17 (2) the term ‘‘IAEA’’ means the International

18 Atomic Energy Agency;

19 (3) the term ‘‘near real time material account20 ancy’’ means a method of accounting for the location,

21 quantity, and disposition of special fissionable mate22 rial at facilities that store or process such material,

23 in which verification of peaceful use is continuously

24 achieved by means of frequent physical inventories

25 and the use of in-process instrumentation;
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1 (4) the term ‘‘special fissionable material’’ has

2 the meaning given that term by Article XX(1) of the

3 Statute of the International Atomic Energy Agency,

4 done at the Headquarters of the United Nations on

5 October 26, 1956;

6 (5) the term ‘‘the Treaty’’ means the Treaty on

7 the Non-Proliferation of Nuclear Weapons, signed at

8 Washington, London, and Moscow on July 1, 1968;

9 and

10 (6) the terms ‘‘IAEA safeguards’’, ‘‘non-nuclear11 weapon state’’, ‘‘nuclear explosive device’’, and ‘‘spe12 cial nuclear material’’ have the meanings given those

13 terms in section 231 of this Act.

14 PART D—REPEAL OF DUPLICATIVE PROVISIONS

15 SEC. 251. REPEAL.

16 Effective 60 days after the date of the enactment of

17 this Act—

18 (1) title VIII of the Foreign Relations Authoriza19 tion Act, Fiscal Years 1994 and 1995, the amend20 ments made by that title, and the items relating to

21 such title in the table of contents of that Act, are re22 pealed; and

23 (2) with respect to any provisions of law re24 pealed by title VIII of that Act, such title shall be

25 deemed not to have been enacted.
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Amend the title so as to read: ‘‘A bill to provide authority to control exports, and for other purposes.’’.

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Union Calendar No. 304

103D CONGRESS

2D SESSION H. R. 3937

[Report No. 103–531, Parts I, II, III, and IV]

A BILL

Entitled the ‘‘Export Administration Act of 1994’’.

JUNE 17, 1994

Committees on the Judiciary and Public Works and

ordered to be printedtee of the Whole House on the State of the Union, andTransportation discharged; committed to the Commit-