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[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5040 Introduced in House (IH)]

<DOC>

115th CONGRESS
  2d Session
                                H. R. 5040

    To authorize the President to control the export, reexport, and 
   transfer of commodities, software, and technology to protect the 
  national security, and to promote the foreign policy, of the United 
                    States, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           February 15, 2018

  Mr. Royce of California (for himself and Mr. Engel) introduced the 
following bill; which was referred to the Committee on Foreign Affairs, 
 and in addition to the Committee on Oversight and Government Reform, 
for a period to be subsequently determined by the Speaker, in each case 
for consideration of such provisions as fall within the jurisdiction of 
                        the committee concerned

_______________________________________________________________________

                                 A BILL

 
    To authorize the President to control the export, reexport, and 
   transfer of commodities, software, and technology to protect the 
  national security, and to promote the foreign policy, of the United 
                    States, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Export Control 
Reform Act of 2018''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
           TITLE I--AUTHORITY AND ADMINISTRATION OF CONTROLS

Sec. 101. Short title.
Sec. 102. Statement of policy.
Sec. 103. Authority of the President.
Sec. 104. Additional authorities.
Sec. 105. Administration of export controls.
Sec. 106. Control lists.
Sec. 107. Licensing.
Sec. 108. Compliance assistance.
Sec. 109. Requirements to identify and control emerging critical 
                            technologies in export control regulations.
Sec. 110. Penalties.
Sec. 111. Enforcement.
Sec. 112. Administrative procedure.
Sec. 113. Annual report to Congress.
Sec. 114. Repeal.
Sec. 115. Effect on other Acts.
Sec. 116. Transition provisions.
                   TITLE II--ANTI-BOYCOTT ACT OF 2018

Sec. 201. Short title.
Sec. 202. Statement of policy.
Sec. 203. Foreign boycotts.
Sec. 204. Enforcement.
 TITLE III--SANCTIONS REGARDING MISSILE PROLIFERATION AND CHEMICAL AND 
                    BIOLOGICAL WEAPONS PROLIFERATION

Sec. 301. Missile proliferation control violations.
Sec. 302. Chemical and biological weapons proliferation sanctions.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Controlled.--The term ``controlled'', with respect to 
        an item, means the export, reexport, or transfer of the item is 
        controlled under title I.
            (2) Dual-use.--The term ``dual-use'', with respect to an 
        item, means the item has civilian applications and military, 
        terrorism, or weapons of mass destruction-related applications.
            (3) Export.--The term ``export'', with respect to an item 
        subject to controls under title I, includes--
                    (A) the shipment or transmission of the item out of 
                the United States, including the sending or taking of 
                the item out of the United States, in any manner; and
                    (B) the release or transfer of technology or source 
                code relating to the item to a foreign person in the 
                United States.
            (4) Export administration regulations.--The term ``Export 
        Administration Regulations'' means--
                    (A) the Export Administration Regulations as 
                promulgated, maintained, and amended under the 
                authority of the International Emergency Economic 
                Powers Act and codified, as of the date of the 
                enactment of this Act, in subchapter C of chapter VII 
                of title 15, Code of Federal Regulations; or
                    (B) regulations that are promulgated, maintained, 
                and amended under the authority of title I on or after 
                the date of the enactment of this Act.
            (5) Foreign person.--The term ``foreign person'' means a 
        person that is not a United States person.
            (6) Item.--The term ``item'' means a commodity, software, 
        or technology.
            (7) Person.--
                    (A) In general.--The term ``person'' means--
                            (i) a natural person;
                            (ii) a corporation, business association, 
                        partnership, society, trust, financial 
                        institution, insurer, underwriter, guarantor, 
                        and any other business organization, any other 
                        nongovernmental entity, organization, or group, 
                        and any governmental entity operating as a 
                        business enterprise; and
                            (iii) any successor to any entity described 
                        in clause (ii).
                    (B) Application to governmental entities.--The term 
                ``person'' does not include a government or 
                governmental entity that is not operating as a business 
                enterprise.
            (8) Reexport.--The term ``reexport'', with respect to an 
        item subject to controls under title I, includes--
                    (A) the shipment or transmission of the item from a 
                foreign country to another foreign country, including 
                the sending or taking of the item from the foreign 
                country to the other foreign country, in any manner; 
                and
                    (B) the release or transfer of technology or source 
                code relating to the item to a foreign person outside 
                the United States.
            (9) Technology.--The term ``technology''--
                    (A) includes--
                            (i) information necessary for the 
                        development, production, use, operation, 
                        installation, maintenance, repair, overhaul or 
                        refurbishing of an item; and
                            (ii) information at whatever stage of its 
                        creation, such as foundational information and 
                        know-how, as further defined by regulations; 
                        and
                    (B) does not include published information, 
                including prerecorded records, printed books, 
                pamphlets, miscellaneous publications, or other 
                information, that--
                            (i) arises during, or results from, 
                        fundamental research and is intended to be 
                        published;
                            (ii) is released by instruction in a 
                        catalog course or associated teaching 
                        laboratory of an academic institution;
                            (iii) appears in patents or open 
                        (published) patent publications available from 
                        or at any patent office, unless covered by an 
                        invention secrecy order;
                            (iv) is non-proprietary system 
                        descriptions;
                            (v) is telemetry data; or
                            (vi) is any other category or type of 
                        information, as determined by the President for 
                        purposes of national security or foreign policy 
                        concerns.
            (10) Transfer.--The term ``transfer'', with respect to an 
        item subject to controls under title I, means a change in the 
        end-use or end user of the item within the same foreign 
        country.
            (11) United states.--The term ``United States'' means the 
        several States, the District of Columbia, the Commonwealth of 
        Puerto Rico, the Commonwealth of the Northern Mariana Islands, 
        American Samoa, Guam, the United States Virgin Islands, and any 
        other territory or possession of the United States.
            (12) United states person.--The term ``United States 
        person'' means--
                    (A) any individual who is a citizen or national of 
                the United States or who is an individual described in 
                subparagraph (B) of section 274B(a)(3) of the 
                Immigration and Nationality Act (8 U.S.C. 1324b(a)(3)); 
                and
                    (B) a corporation or other legal entity which is 
                organized under the laws of the United States, any 
                State or territory thereof, or the District of 
                Columbia, if natural persons described in subparagraph 
                (A) own, directly or indirectly, more than 50 percent 
                of the outstanding capital stock or other beneficial 
                interest in such legal entity.
            (13) Weapons of mass destruction.--The term ``weapons of 
        mass destruction'' means nuclear, radiological, chemical, and 
        biological weapons and delivery systems for such weapons.

           TITLE I--AUTHORITY AND ADMINISTRATION OF CONTROLS

SEC. 101. SHORT TITLE.

    This title may be cited as the ``Export Controls Act of 2018''.

SEC. 102. STATEMENT OF POLICY.

    The following is the policy of the United States:
            (1) The national security and foreign policy of the United 
        States require that the export, reexport, and transfer of 
        items, and specific activities of United States persons, 
        wherever located, be controlled for the following purposes:
                    (A) To control the access to items for use in--
                            (i) the proliferation of weapons of mass 
                        destruction or of conventional weapons;
                            (ii) the acquisition of destabilizing 
                        numbers or types of conventional weapons;
                            (iii) acts of terrorism;
                            (iv) military programs that could pose a 
                        threat to the security of the United States or 
                        its allies; or
                            (v) activities undertaken specifically to 
                        cause significant interference with or 
                        disruption of critical infrastructure.
                    (B) To preserve the qualitative military 
                superiority of the United States.
                    (C) To strengthen the United States industrial 
                base.
                    (D) To carry out the foreign policy of the United 
                States, including the protection of human rights and 
                the promotion of democracy.
                    (E) To carry out obligations and commitments under 
                international agreements and arrangements, including 
                multilateral export control regimes.
                    (F) To facilitate military interoperability between 
                the United States and its North Atlantic Treaty 
                Organization (NATO) and other close allies.
                    (G) To ensure national security controls are 
                tailored to focus on those core technologies and other 
                items that are capable of being used to pose a serious 
                national security threat to the United States.
            (2) The national security of the United States requires 
        that the United States maintain its leadership in the science, 
        technology, engineering, and manufacturing sectors. Such 
        leadership requires that United States persons are competitive 
        in global markets. The impact of the implementation of this 
        title on such leadership and competitiveness must be evaluated 
        on an ongoing basis and applied in imposing controls under 
        sections 103 and 104 to avoid negatively affecting such 
        leadership.
            (3) The national security and foreign policy of the United 
        States require that the United States participate in 
        multilateral organizations and agreements regarding export 
        controls on items that are consistent with the policy of the 
        United States, and take all the necessary steps to secure the 
        adoption and consistent enforcement, by the governments of such 
        countries, of export controls on items that are consistent with 
        such policy.
            (4) Export controls should be fully coordinated with the 
        multilateral export control regimes. Export controls that are 
        multilateral are most effective, and should be tailored to 
        focus on those core technologies and other items that are 
        capable of being used to pose a serious national security 
        threat to the United States and its allies.
            (5) Export controls applied unilaterally to items widely 
        available from foreign sources generally are less effective in 
        preventing end-users from acquiring those items.
            (6) The effective administration of export controls 
        requires a clear understanding both inside and outside the 
        United States Government of which technologies and other items 
        are controlled and an efficient process should be created to 
        update the controls, such as by removing and adding 
        technologies and other items.
            (7) The export control system must ensure that it is 
        transparent, predictable, and timely, has the flexibility to be 
        adapted to address new threats in the future, and allows 
        seamless access to and sharing of export control information 
        among all relevant United States national security and foreign 
        policy agencies.
            (8) Implementation and enforcement of United States export 
        controls require robust capabilities in monitoring, 
        intelligence, and investigation, appropriate penalties for 
        violations, and the ability to swiftly interdict unapproved 
        transfers.
            (9) Export controls should be balanced with United States 
        counterterrorism, information security, and cyber-security 
        policies to ensure the ability to export, reexport, and 
        transfer technology and other items in support of 
        counterterrorism, critical infrastructure, and other homeland 
        security priorities, while effectively preventing malicious 
        cyber terrorists from obtaining items that threaten the United 
        States and its interests, including the protection of and 
        safety of United States citizens abroad.
            (10) Export controls complement and are a critical element 
        of the national security policies underlying the laws and 
        regulations governing foreign direct investment in the United 
        States, including controlling the transfer of critical 
        technologies to certain foreign persons. Thus, the President, 
        in close coordination with the Department of Commerce, the 
        Department of Defense, the Department of State, the Department 
        of Energy, and other agencies responsible for export controls, 
        should have a regular and robust process to identify the 
        emerging and other types of critical technologies of concern, 
        as defined in United States foreign direct investment laws, and 
        regulate their release to foreign persons as warranted 
        regardless of the nature of the underlying transaction. Such 
        identification efforts should draw upon the resources and 
        expertise of all relevant parts of the United States 
        Government, industry, and academia. These efforts should be in 
        addition to traditional efforts to modernize and update the 
        lists of controlled items under the multilateral export control 
        regimes.
            (11) The authority under this title may be exercised only 
        in furtherance of all of the objectives set forth in paragraphs 
        (1) through (10).

SEC. 103. AUTHORITY OF THE PRESIDENT.

    (a) Authority.--In order to carry out the policy set forth in 
paragraphs (1) through (10) of section 102, the President shall 
control--
            (1) the export, reexport, and transfer of items, whether by 
        United States persons, wherever located, or by foreign persons, 
        wherever located; and
            (2) the activities of United States persons, wherever 
        located, relating to specific--
                    (A) nuclear explosive devices;
                    (B) missiles;
                    (C) chemical or biological weapons;
                    (D) whole plants for chemical weapons precursors;
                    (E) foreign maritime nuclear projects; and
                    (F) foreign intelligence services.
    (b) Requirements.--In exercising authority under this title, the 
President shall impose controls to achieve the following objectives:
            (1) To regulate the export, reexport, and transfer of items 
        described in subsection (a)(1) of United States persons, 
        wherever located, or foreign persons, wherever located.
            (2) To regulate the activities described in subsection 
        (a)(2) of United States persons, wherever located.
            (3) To secure the cooperation of other governments and 
        multilateral organizations to impose control systems that are 
        consistent, to the extent possible, with the controls imposed 
        under subsection (a).
            (4) To maintain the leadership of the United States in 
        science, engineering, technology research and development, and 
        manufacturing.
            (5) To enhance the viability of commercial firms, academic 
        institutions, and research establishments, and maintain the 
        skilled workforce of such firms, institutions, and 
        establishments, that are necessary to preserving the leadership 
        of the United States described in paragraph (4).
            (6) To strengthen the United States industrial base, both 
        with respect to current and future defense requirements.
            (7) To enforce the controls through means such as 
        regulations, requirements for compliance, lists of controlled 
        items, lists of foreign persons who threaten the national 
        security or foreign policy of the United States, and guidance 
        in a form that facilitates compliance by United States persons 
        and foreign persons, in particular academic institutions, 
        scientific and research establishments, and small- and medium-
        sized businesses.

SEC. 104. ADDITIONAL AUTHORITIES.

    (a) In General.--In carrying out this title, the President shall--
            (1) establish and maintain lists published by the Secretary 
        of Commerce of items that are controlled under this title;
            (2) establish and maintain lists published by the Secretary 
        of Commerce of foreign persons and end-uses that are determined 
        to be a threat to the national security and foreign policy of 
        the United States pursuant to the policy set forth in section 
        102(1)(A) and to whom exports, reexports, and transfers of 
        items are controlled;
            (3) prohibit unauthorized exports, reexports, and transfers 
        of controlled items;
            (4) restrict exports, reexports, and transfers of any 
        controlled items to any foreign person or end-use listed under 
        paragraph (2);
            (5) require licenses or other authorizations, as 
        appropriate, for exports, reexports, and transfers of 
        controlled items, including imposing conditions or restrictions 
        on United States persons and foreign persons with respect to 
        such licenses or other authorizations;
            (6) establish a process by which the Secretary of Commerce 
        or a license applicant requests an assessment that a foreign 
        item is comparable in quality to an item controlled under this 
        title, and is available in sufficient quantities to render the 
        United States export control of that item or the denial of a 
        license ineffective;
            (7) require measures for compliance with the export 
        controls established under this title;
            (8) require and obtain such information from United States 
        persons and foreign persons as is necessary to carry out this 
        title;
            (9) require, as appropriate, advance notice before an item 
        is exported, reexported, or transferred, as an alternative to 
        requiring a license;
            (10) require, to the extent feasible, identification of 
        items subject to controls under this title in order to 
        facilitate the enforcement of such controls;
            (11) inspect, search, detain, seize, or impose temporary 
        denial orders with respect to items, in any form, that are 
        subject to controls under this title, or conveyances on which 
        it is believed that there are items that have been, are being, 
        or are about to be exported, reexported, or transferred in 
        violation of this title;
            (12) monitor shipments, or other means of transfer;
            (13) keep the public fully apprised of changes in policy, 
        regulations, and procedures established under this title;
            (14) appoint technical advisory committees in accordance 
        with the Federal Advisory Committee Act;
            (15) create, as warranted, exceptions to licensing 
        requirements in order to further the objectives of this title; 
        and
            (16) undertake any other action as is necessary to carry 
        out this title and is not otherwise prohibited by law.
    (b) Relationship to IEEPA.--The authority under this title may not 
be used to regulate or prohibit under this title the export, reexport, 
or transfer of any item that may not be regulated or prohibited under 
section 203(b) of the International Emergency Economic Powers Act (50 
U.S.C. 1702(b)).
    (c) Countries Supporting International Terrorism.--
            (1) License requirement.--
                    (A) In general.--A license shall be required for 
                the export, reexport, or transfer of items to a country 
                if the Secretary of State has made the following 
                determinations:
                            (i) The government of such country has 
                        repeatedly provided support for acts of 
                        international terrorism.
                            (ii) The export, reexport, or transfer of 
                        such items could make a significant 
                        contribution to the military potential of such 
                        country, including its military logistics 
                        capability, or could enhance the ability of 
                        such country to support acts of international 
                        terrorism.
                    (B) Determination under other provisions of law.--A 
                determination of the Secretary of State under section 
                620A of the Foreign Assistance Act of 1961 (22 U.S.C. 
                2371), section 40 of the Arms Export Control Act (22 
                U.S.C. 2780), or any other provision of law that the 
                government of a country described in subparagraph (A) 
                has repeatedly provided support for acts of 
                international terrorism shall be deemed to be a 
                determination with respect to such government for 
                purposes of clause (i) of subparagraph (A).
            (2) Notification to congress.--The Secretary of State and 
        the Secretary of Commerce shall notify the Committee on Foreign 
        Affairs of the House of Representatives and the Committee on 
        Banking, Housing, and Urban Affairs and the Committee on 
        Foreign Relations of the Senate at least 30 days before issuing 
        any license required by paragraph (1).
            (3) Publication in federal register.--Each determination of 
        the Secretary of State under paragraph (1)(A) shall be 
        published in the Federal Register, except that the Secretary of 
        State may exclude confidential information and trade secrets 
        contained in such determination.
            (4) Rescission of determination.--A determination of the 
        Secretary of State under paragraph (1)(A) may not be rescinded 
        unless the President submits to the Speaker of the House of 
        Representatives, the chairman of the Committee on Foreign 
        Affairs, and the chairman of the Committee on Banking, Housing, 
        and Urban Affairs and the chairman of the Committee on Foreign 
        Relations of the Senate--
                    (A) before the proposed rescission would take 
                effect, a report certifying that--
                            (i) there has been a fundamental change in 
                        the leadership and policies of the government 
                        of the country concerned;
                            (ii) that government is not supporting acts 
                        of international terrorism; and
                            (iii) that government has provided 
                        assurances that it will not support acts of 
                        international terrorism in the future; or
                    (B) at least 90 days before the proposed rescission 
                would take effect, a report justifying the rescission 
                and certifying that--
                            (i) the government concerned has not 
                        provided any support for acts international 
                        terrorism during the preceding 24-month period; 
                        and
                            (ii) the government concerned has provided 
                        assurances that it will not support acts of 
                        international terrorism in the future.
            (5) Disapproval of rescission.--No rescission under 
        paragraph (4)(B) of a determination under paragraph (1)(A) with 
        respect to the government of a country may be made if Congress, 
        within 90 days after receipt of a report under paragraph 
        (4)(B), enacts a joint resolution described in subsection 
        (f)(2) of section 40 of the Arms Export Control Act with 
        respect to a rescission under subsection (f)(1) of such section 
        with respect to the government of such country.
            (6) Notification and briefing.--Not later than--
                    (A) ten days after initiating a review of the 
                activities of the government of the country concerned 
                within the 24-month period referred to in paragraph 
                (4)(B)(i), the Secretary of State shall notify the 
                Committee on Foreign Affairs of the House of 
                Representatives and the Committee on Foreign Relations 
                of the Senate of such initiation; and
                    (B) 20 days after the notification described in 
                paragraph (1), the Secretary of State shall brief the 
                congressional committees described in paragraph (1) on 
                the status of such review.
            (7) Contents of notification of license.--The Secretary of 
        State shall include in the notification required by paragraph 
        (2)--
                    (A) a detailed description of the items to be 
                offered, including a brief description of the 
                capabilities of any item for which a license to export, 
                reexport, or transfer the items is sought;
                    (B) the reasons why the foreign country, person, or 
                entity to which the export, reexport, or transfer is 
                proposed to be made has requested the items under the 
                export, reexport, or transfer, and a description of the 
                manner in which such country, person, or entity intends 
                to use such items;
                    (C) the reasons why the proposed export, reexport, 
                or transfer is in the national interest of the United 
                States;
                    (D) an analysis of the impact of the proposed 
                export, reexport, or transfer on the military 
                capabilities of the foreign country, person, or entity 
                to which such transfer would be made;
                    (E) an analysis of the manner in which the proposed 
                export, reexport, or transfer would affect the relative 
                military strengths of countries in the region to which 
                the items that are the subject of such export, 
                reexport, or transfer would be delivered and whether 
                other countries in the region have comparable kinds and 
                amounts of items; and
                    (F) an analysis of the impact of the proposed 
                export, reexport, or transfer on the relations of the 
                United States with the countries in the region to which 
                the items that are the subject of such export, 
                reexport, or transfer would be delivered.
    (d) Enhanced Proliferation Controls.--
            (1) In general.--In furtherance of section 103(a) of this 
        title, the President shall, except to the extent authorized by 
        a statute or regulation administered by a Federal department or 
        agency other than the Department of Commerce, require a United 
        States person, wherever located, to apply for and receive a 
        license from the Department of Commerce for the export, 
        reexport, or transfer of items described in paragraph (2) or 
        for the performance of services relating to such items.
            (2) Items described.--The items described in this paragraph 
        are--
                    (A) nuclear explosive devices;
                    (B) missiles;
                    (C) chemical or biological weapons;
                    (D) whole plants for chemical weapons precursors; 
                and
                    (E) foreign maritime nuclear projects that would 
                pose a risk to the national security or foreign policy 
                of the United States.
    (e) Additional Prohibitions.--The Secretary of Commerce may inform 
United States persons, either individually by specific notice or 
through amendment to any regulation or order issued under this title, 
that a license from the Bureau of Industry and Security of the 
Department of Commerce is required to engage in any activity if the 
activity involves the types of movement, service, or support described 
in subsection (d). The absence of any such notification does not excuse 
the United States person from compliance with the license requirements 
of subsection (d), or any regulation or order issued under this title.
    (f) License Review Standards.--The Secretary of Commerce shall deny 
an application to engage in any activity that involves the types of 
movement, service, or support described in subsection (d) if the 
activity would make a material contribution to any of the items 
described in subsection (d)(2).

SEC. 105. ADMINISTRATION OF EXPORT CONTROLS.

    (a) In General.--The President shall delegate to the Secretary of 
Commerce, the Secretary of Defense, the Secretary of State and, as 
appropriate, the Director of National Intelligence and the heads of 
other appropriate Federal departments and agencies, the authority to 
carry out the purposes set forth in subsection (b).
    (b) Purposes.--
            (1) In general.--The purpose of the delegations of 
        authority pursuant to subsection (a) are--
                    (A) to advise the President with respect to--
                            (i) identifying specific threats to the 
                        national security and foreign policy that the 
                        authority of this title may be used to address; 
                        and
                            (ii) exercising the authority under this 
                        title to implement policies, regulations, 
                        procedures, and actions that are necessary to 
                        effectively counteract those threats;
                    (B) to review and approve--
                            (i) criteria for including items on, and 
                        removing such an item from, a list of 
                        controlled items established under this title;
                            (ii) an interagency procedure for compiling 
                        and amending any list described in clause (i);
                            (iii) criteria for including a person on a 
                        list of persons to whom exports, reexports, and 
                        transfers of items are prohibited or restricted 
                        under this title;
                            (iv) standards for compliance by persons 
                        subject to controls under this title; and
                            (v) policies and procedures for the end-use 
                        monitoring of exports, reexports, and transfers 
                        of items controlled under this title;
                    (C) to obtain independent evaluations, including 
                from Inspectors General of the relevant departments or 
                agencies, on a periodic basis on the effectiveness of 
                the implementation of this title in carrying out the 
                policy set forth in section 102; and
                    (D) to benefit from the inherent equities, 
                experience, and capabilities of the Federal officials 
                described in subsection (a), including--
                            (i) the views of the Department of Defense 
                        with respect to the national security 
                        implications of a particular control or 
                        decision;
                            (ii) the views of the Department of State 
                        with respect to the foreign policy implications 
                        of a particular control or decision;
                            (iii) the views of the Department of Energy 
                        with respect to the implications for nuclear 
                        proliferation of a particular control or 
                        decision; and
                            (iv) the views of the Department of 
                        Commerce with respect to the administration of 
                        an efficient, coherent, reliable, enforceable, 
                        and predictable export control system, and the 
                        resolution of competing views or policy 
                        objectives described in section 102.
            (2) Authority to seek information.--The Federal officials 
        described in subsection (a) may, in carrying out the purposes 
        set forth in paragraph (1), seek information and advice from 
        experts who are not officers or employees of the Federal 
        Government.
            (3) Transmittal and implementation of evaluations.--The 
        results of the independent evaluations conducted pursuant to 
        paragraph (1)(D) shall be transmitted to the President and the 
        Congress, in classified form if necessary. Subject to the 
        delegation of authority by the President, the Federal officials 
        described in subsection (a) shall determine, direct, and ensure 
        that improvements recommended in the evaluations are 
        implemented.

SEC. 106. CONTROL LISTS.

    The President shall, pursuant to the delegation of authority in 
section 105, ensure that--
            (1) a process is established for regular interagency review 
        of each list established under section 104(a)(1), that pursuant 
        to such review the Secretary of Commerce regularly updates such 
        lists to ensure that new items (including emerging critical 
        technologies) are appropriately controlled, and that the level 
        of control of items on the lists are adjusted as conditions 
        change;
            (2) information and expertise is obtained from officers and 
        employees from relevant Federal departments, agencies, and 
        offices and persons outside the Federal Government who have 
        technical expertise, with respect to the characteristics of the 
        items considered for each list established under section 
        104(a)(1) and the effect of controlling the items on addressing 
        the policy set forth in section 102;
            (3) each list established under section 104(a)(1) 
        appropriately identifies each entry that has been included by 
        virtue of the participation of the United States in a 
        multilateral regime, organization, or group the purpose of 
        which is consistent with and supports the policy of the United 
        States under this title relating to the control of exports, 
        reexports, and transfers of items; and
            (4) each list established under section 104(a)(1) is 
        published by the Secretary of Commerce in a form that 
        facilitates compliance with it and related requirements, 
        particularly by small- and medium-sized businesses, and 
        academic institutions.

SEC. 107. LICENSING.

    (a) In General.--The President shall, pursuant to the delegation of 
authority in section 105, establish a procedure for the Department of 
Commerce to license or otherwise authorize the export, reexport, and 
transfer of items controlled under this title in order to carry out the 
policy set forth in section 102 and the requirements set forth in 
section 103(b). The procedure shall ensure that--
            (1) license applications, other requests for authorization, 
        and related dispute resolution procedures are considered and 
        decisions made with the participation of appropriate 
        departments, agencies, and offices that have delegated 
        functions under this title; and
            (2) licensing decisions are made in an expeditious manner, 
        with transparency to applicants on the status of license and 
        other authorization processing and the reason for denying any 
        license or request for authorization.
    (b) Sense of Congress.--It is the sense of Congress that the 
President should make best efforts to ensure that an accurate, 
consistent, and timely evaluation and processing of licenses or other 
requests for authorization to export, reexport, or transfer items 
controlled under this title is accomplished within 30 days from the 
date of such license request.
    (c) Fees.--No fee may be charged in connection with the submission, 
processing, or consideration of any application for a license or other 
authorization or other request made in connection with any regulation 
in effect under the authority of this title.

SEC. 108. COMPLIANCE ASSISTANCE.

    (a) System for Seeking Assistance.--The President may establish a 
system to provide United States persons with assistance in complying 
with this title, which may include a mechanism for providing 
information, in classified form as appropriate, who are potential 
customers, suppliers, or business partners with respect to items 
controlled under this title, in order to further ensure the prevention 
of the export, reexport, or transfer of items that may pose a threat to 
the national security or foreign policy of the United States.
    (b) Security Clearances.--In order to carry out subsection (a), the 
President may issue appropriate security clearances to persons 
described in that subsection who are responsible for complying with 
this title.
    (c) Assistance for Certain Businesses.--
            (1) In general.--Not later than 120 days after the date of 
        the enactment of this Act, the President shall develop and 
        submit to Congress a plan to assist small- and medium-sized 
        United States in export licensing and other processes under 
        this title.
            (2) Contents.--The plan shall include, among other things, 
        arrangements for the Department of Commerce to provide 
        counseling to businesses described in paragraph (1) on filing 
        applications and identifying items controlled under this title, 
        as well as proposals for seminars and conferences to educate 
        such businesses on export controls, licensing procedures, and 
        related obligations.

SEC. 109. REQUIREMENTS TO IDENTIFY AND CONTROL EMERGING CRITICAL 
              TECHNOLOGIES IN EXPORT CONTROL REGULATIONS.

    (a) In General.--The President shall, pursuant to the delegation of 
authority in section 105, establish and, in coordination with the 
Department of Commerce, the Department of Defense, the Department of 
State, the Department of Energy, and other departments determined to be 
necessary, lead a regular, ongoing interagency process to identify 
emerging critical technologies that are not identified in any list of 
items controlled for export under United States law or regulations, but 
that nonetheless could be essential for maintaining or increasing the 
technological advantage of the United States over countries that pose a 
significant threat to the national security of the United States with 
respect to national defense, intelligence, or other areas of national 
security, or gaining such an advantage over such countries in areas 
where such an advantage may not currently exist.
    (b) Requirements.--The interagency process required under 
subsection (a) shall--
            (1) draw upon the expertise, resources, and equities of all 
        relevant United States Government agencies, industries, and 
        academic institutions to identify and describe such emerging 
        critical technologies;
            (2) require the relevant export control authority to 
        publish proposed regulations for public comment that would 
        control heretofore unlisted emerging critical technologies 
        identified pursuant to subsection (a) and control the release 
        of each such technology to destinations, end uses, or end users 
        as determined by the President;
            (3) require the Secretary of Commerce, the Secretary of 
        State, and the Secretary of Defense to propose to the relevant 
        multilateral export control regimes in the following year that 
        such emerging critical technologies be added to the list of 
        technologies controlled by such regimes;
            (4) determine whether national security concerns warrant 
        continued unilateral export controls over technologies 
        identified pursuant to subsection (a) if the relevant 
        multilateral export control regime does not agree to list such 
        technologies on its control list within three years; and
            (5) require the agencies responsible for administering the 
        export controls identified in subsection (a) to remove or 
        revise, as appropriate, existing controls determined to warrant 
        removal or revision as a result of insight or information 
        obtained during efforts undertaken to comply with the 
        requirements of this section.

SEC. 110. PENALTIES.

    (a) Unlawful Acts.--
            (1) In general.--It shall be unlawful for a person to 
        violate, attempt to violate, conspire to violate, or cause a 
        violation of this title or of any regulation, order, license, 
        or other authorization issued under this title, including any 
        of the unlawful acts described in paragraph (2).
            (2) Specific unlawful acts.--The unlawful acts described in 
        this paragraph are the following:
                    (A) No person may engage in any conduct prohibited 
                by or contrary to, or refrain from engaging in any 
                conduct required by this title, the Export 
                Administration Regulations, or any order, license or 
                authorization issued thereunder.
                    (B) No person may cause or aid, abet, counsel, 
                command, induce, procure, or approve the doing of any 
                act prohibited, or the omission of any act required by 
                this title, the Export Administration Regulations, or 
                any order, license or authorization issued thereunder.
                    (C) No person may solicit or attempt a violation of 
                this Act, the Export Administration Regulations, or any 
                order, license or authorization issued thereunder.
                    (D) No person may conspire or act in concert with 
                one or more other persons in any manner or for any 
                purpose to bring about or to do any act that 
                constitutes a violation of this title, the Export 
                Administration Regulations, or any order, license or 
                authorization issued thereunder.
                    (E) No person may order, buy, remove, conceal, 
                store, use, sell, loan, dispose of, transfer, 
                transport, finance, forward, or otherwise service, in 
                whole or in part, any item exported or to be exported 
                from the United States, or that is otherwise subject to 
                the Export Administration Regulations, with knowledge 
                that a violation of this title, the Export 
                Administration Regulations, or any order, license or 
                authorization issued thereunder, has occurred, is about 
                to occur, or is intended to occur in connection with 
                the item unless valid authorization is obtained 
                therefor.
                    (F) No person may make any false or misleading 
                representation, statement, or certification, or falsify 
                or conceal any material fact, either directly to the 
                Department of Commerce, or an official of any other 
                United States agency, or indirectly through any other 
                person--
                            (i) in the course of an investigation or 
                        other action subject to the Export 
                        Administration Regulations;
                            (ii) in connection with the preparation, 
                        submission, issuance, use, or maintenance of 
                        any export control document or any report filed 
                        or required to be filed pursuant to the Export 
                        Administration Regulations; or
                            (iii) for the purpose of or in connection 
                        with effecting any export, reexport, or 
                        transfer of an item subject to the Export 
                        Administration Regulations or a service or 
                        other activity of a United States person 
                        described in section 104.
                    (G) No person may engage in any transaction or take 
                any other action with intent to evade the provisions of 
                this title, the Export Administration Regulations, or 
                any order, license, or authorization issued thereunder.
                    (H) No person may fail or refuse to comply with any 
                reporting or recordkeeping requirements of the Export 
                Administration Regulations or of any order, license, or 
                authorization issued thereunder.
                    (I) Except as specifically authorized in the Export 
                Administration Regulations or in writing by the 
                Department of Commerce, no person may alter any 
                license, authorization, export control document, or 
                order issued under the Export Administration 
                Regulations.
                    (J) No person may take any action that is 
                prohibited by a denial order issued by the Department 
                of Commerce to prevent imminent violations of this 
                title, the Export Administration Regulations, or any 
                order, license or authorization issued thereunder.
            (3) Additional requirements.--For purposes of subparagraph 
        (G), any representation, statement, or certification made by 
        any person shall be deemed to be continuing in effect. Each 
        person who has made a representation, statement, or 
        certification to the Department of Commerce relating to any 
        order, license, or other authorization issued under this title 
        shall notify the Department of Commerce, in writing, of any 
        change of any material fact or intention from that previously 
        represented, stated, or certified, immediately upon receipt of 
        any information that would lead a reasonably prudent person to 
        know that a change of material fact or intention had occurred 
        or may occur in the future.
    (b) Criminal Penalty.--
            (1) Knowing violations.--Except as provided in paragraph 
        (2), a person who knowingly violates or conspires or attempts 
        to violate subsection (a) shall be fined not more than 5 times 
        the amount or value of the exports, reexports, or transfers 
        involved, or $500,000, whichever is greater, and, in the case 
        of an individual, imprisoned not more than 5 years, or both.
            (2) Willful violations.--A person who willfully violates or 
        conspires to or attempts to violate any provision of subsection 
        (a) shall be fined not more than 5 times the amount or value of 
        the exports, reexports, or transfers involved, or $1,000,000, 
        whichever is greater, and, in the case of an individual, shall 
        be fined not more than $250,000, or imprisoned not more than 10 
        years, or both.
    (c) Civil Penalties.--
            (1) Authority.--The President may impose the following 
        civil penalties on a person for each violation by that person 
        of this title or any regulation, order, or license issued under 
        this title, for each violation:
                    (A) A fine of not more than $250,000 or an amount 
                that is twice the value of the transaction that is the 
                basis of the violation with respect to which the 
                penalty is imposed, whichever is greater.
                    (B) Revocation of a license issued under this title 
                to the person.
                    (C) A prohibition on the person's ability to 
                export, reexport, or transfer any items, whether or not 
                subject to controls under this title.
            (2) Procedures.--Any civil penalty under this subsection 
        may be imposed only after notice and opportunity for an agency 
        hearing on the record in accordance with sections 554 through 
        557 of title 5, United States Code.
            (3) Standards for levels of civil penalty.--The President 
        may by regulation provide standards for establishing levels of 
        civil penalty under this subsection based upon factors such as 
        the seriousness of the violation, the culpability of the 
        violator, and such mitigating factors as the violator's record 
        of cooperation with the Government in disclosing the violation.
    (d) Criminal Forfeiture of Property Interest and Proceeds.--
            (1) Forfeiture.--Any person who is convicted under 
        subsection (b) of a violation of a control imposed under 
        section 103 (or any regulation, order, or license issued with 
        respect to such control) shall, in addition to any other 
        penalty, forfeit to the United States--
                    (A) any of that person's interest in, security of, 
                claim against, or property or contractual rights of any 
                kind in the tangible items that were the subject of the 
                violation;
                    (B) any of that person's interest in, security of, 
                claim against, or property or contractual rights of any 
                kind in tangible property that was used in the 
                violation; and
                    (C) any of that person's property constituting, or 
                derived from, any proceeds obtained directly or 
                indirectly as a result of the violation.
            (2) Procedures.--The procedures in any forfeiture under 
        this subsection, and the duties and authority of the courts of 
        the United States and the Attorney General with respect to any 
        forfeiture action under this subsection or with respect to any 
        property that may be subject to forfeiture under this 
        subsection, shall be governed by the provisions of section 1963 
        of title 18, United States Code.
    (e) Prior Convictions.--
            (1) License bar.--
                    (A) In general.--The President may--
                            (i) deny the eligibility of any person 
                        convicted of a criminal violation described in 
                        subparagraph (B) to export, reexport, or 
                        transfer outside the United States any item, 
                        whether or not subject to controls under this 
                        title, for a period of up to 10 years beginning 
                        on the date of the conviction; and
                            (ii) revoke any license or other 
                        authorization to export, reexport, or transfer 
                        items that was issued under this title and in 
                        which such person has an interest at the time 
                        of the conviction.
                    (B) Violations.--The violations referred to in 
                subparagraph (A) are any criminal violations of, or 
                criminal attempt or conspiracy to violate--
                            (i) this title (or any regulation, license, 
                        or order issued under this title);
                            (ii) any regulation, license, or order 
                        issued under the International Emergency 
                        Economic Powers Act;
                            (iii) section 793, 794, or 798 of title 18, 
                        United States Code;
                            (iv) section 4(b) of the Internal Security 
                        Act of 1950 (50 U.S.C. 783(b)); or
                            (v) section 38 of the Arms Export Control 
                        Act (22 U.S.C. 2778).
            (2) Application to other parties.--The President may 
        exercise the authority under paragraph (1) with respect to any 
        person related, through affiliation, ownership, control, or 
        position of responsibility, to any person convicted of any 
        violation of law set forth in paragraph (1), upon a showing of 
        such relationship with the convicted party, and subject to the 
        procedures set forth in subsection (c)(2).
    (f) Other Authorities.--Nothing in subsection (c), (d), or (e) 
limits--
            (1) the availability of other administrative or judicial 
        remedies with respect to violations of this title, or any 
        regulation, order, license or other authorization issued under 
        this title;
            (2) the authority to compromise and settle administrative 
        proceedings brought with respect to violations of this title, 
        or any regulation, order, license, or other authorization 
        issued under this title; or
            (3) the authority to compromise, remit or mitigate seizures 
        and forfeitures pursuant to section 1(b) of title VI of the Act 
        of June 15, 1917 (22 U.S.C. 401(b)).

SEC. 111. ENFORCEMENT.

    (a) Authorities.--In order to enforce this title, the President 
may--
            (1) issue regulations, orders, and guidelines;
            (2) require, inspect, and obtain books, records, and any 
        other information from any person subject to the provisions of 
        this title;
            (3) administer oaths or affirmations and by subpoena 
        require any person to appear and testify or to appear and 
        produce books, records, and other writings, or both;
            (4) conduct investigations (including undercover) in the 
        United States and in other countries, including intercepting 
        any wire, oral, and electronic communications, conducting 
        electronic surveillance, using pen registers and trap and trace 
        devices, and carrying out acquisitions, to the extent 
        authorized under chapters 119, 121, and 206 of title 18, United 
        States Code, and other applicable laws of the United States;
            (5) inspect, search, detain, seize, or issue temporary 
        denial orders with respect to items, in any form, that are 
        subject to controls under this title, or conveyances on which 
        it is believed that there are items that have been, are being, 
        or are about to be exported, reexported, or transferred in 
        violation of this title, or any regulations, order, license, or 
        other authorization issued thereunder;
            (6) conduct prelicense inspections and post-shipment 
        verifications; and
            (7) execute warrants and make arrests.
    (b) Enforcement of Subpoenas.--In the case of contumacy by, or 
refusal to obey a subpoena issued to, any person under subsection 
(a)(3), a district court of the United States, after notice to such 
person and a hearing, shall have jurisdiction to issue an order 
requiring such person to appear and give testimony or to appear and 
produce books, records, and other writings, regardless of format, that 
are the subject of the subpoena. Any failure to obey such order of the 
court may be punished by such court as a contempt thereof.
    (c) Best Practice Guidelines.--
            (1) In general.--The President, in consultation with the 
        Secretary of Commerce and other Federal officials described in 
        section 105(a), should publish and update ``best practices'' 
        guidelines to assist persons in developing and implementing, on 
        a voluntary basis, effective export control programs in 
        compliance with the regulations issued under this title.
            (2) Export compliance program.--The implementation by a 
        person of an effective export compliance program and a high 
        quality overall export compliance effort by a person should 
        ordinarily be given weight as mitigating factors in a civil 
        penalty action against the person under this title.
    (d) Reference to Enforcement.--For purposes of this section, a 
reference to the enforcement of, or a violation of, this title includes 
a reference to the enforcement or a violation of any regulation, order, 
license or other authorization issued pursuant to this title.
    (e) Immunity.--A person shall not be excused from complying with 
any requirements under this section because of the person's privilege 
against self-incrimination, but the immunity provisions of section 6002 
of title 18, United States Code, shall apply with respect to any 
individual who specifically claims such privilege.
    (f) Confidentiality of Information.--
            (1) Exemptions from disclosure.--
                    (A) In general.--Information obtained under this 
                title may be withheld from disclosure only to the 
                extent permitted by statute, except that information 
                described in subparagraph (B) shall be withheld from 
                public disclosure and shall not be subject to 
                disclosure under section 552(b)(3) of title 5, United 
                States Code, unless the release of such information is 
                determined by the President to be in the national 
                interest.
                    (B) Information described.--Information described 
                in this subparagraph is information submitted or 
                obtained in connection with an application for a 
                license or other authorization to export, reexport, or 
                transfer items, engage in other activities, a 
                recordkeeping or reporting requirement, enforcement 
                activity, or other operations under this title, 
                including--
                            (i) the license application, license, or 
                        other authorization itself;
                            (ii) classification or advisory opinion 
                        requests, and the response thereto;
                            (iii) license determinations, and 
                        information pertaining thereto;
                            (iv) information or evidence obtained in 
                        the course of any investigation; and
                            (v) information obtained or furnished in 
                        connection with any international agreement, 
                        treaty, or other obligation.
            (2) Information to the congress and GAO.--
                    (A) In general.--Nothing in this section shall be 
                construed as authorizing the withholding of information 
                from the Congress or from the Government Accountability 
                Office.
                    (B) Availability to the congress.--
                            (i) In general.--Any information obtained 
                        at any time under any provision of the Export 
                        Administration Act of 1979 (as in effect on the 
                        day before the date of the enactment of this 
                        Act and as continued in effect pursuant to the 
                        International Emergency Economic Powers Act), 
                        under the Export Administration Regulations, or 
                        under this title, including any report or 
                        license application required under any such 
                        provision, shall be made available to a 
                        committee or subcommittee of Congress of 
                        appropriate jurisdiction, upon the request of 
                        the chairman or ranking minority member of such 
                        committee or subcommittee.
                            (ii) Prohibition on further disclosure.--No 
                        such committee or subcommittee, or member 
                        thereof, may disclose any information made 
                        available under clause (i), that is submitted 
                        on a confidential basis unless the full 
                        committee determines that the withholding of 
                        that information is contrary to the national 
                        interest.
                    (C) Availability to GAO.--
                            (i) In general.--Information described in 
                        clause (i) of subparagraph (B) shall be subject 
                        to the limitations contained in section 716 of 
                        title 31, United States Code.
                            (ii) Prohibition on further disclosure.--An 
                        officer or employee of the Government 
                        Accountability Office may not disclose, except 
                        to the Congress in accordance with this 
                        paragraph, any such information that is 
                        submitted on a confidential basis or from which 
                        any individual can be identified.
            (3) Information sharing.--
                    (A) In general.--Any Federal official described in 
                section 105(a) who obtains information that is relevant 
                to the enforcement of this title, including information 
                pertaining to any investigation, shall furnish such 
                information to each appropriate department, agency, or 
                office with enforcement responsibilities under this 
                section to the extent consistent with the protection of 
                intelligence, counterintelligence, and law enforcement 
                sources, methods, and activities.
                    (B) Exceptions.--The provisions of this paragraph 
                shall not apply to information subject to the 
                restrictions set forth in section 9 of title 13, United 
                States Code, and return information, as defined in 
                subsection (b) of section 6103 of the Internal Revenue 
                Code of 1986 (26 U.S.C. 6103(b)), may be disclosed only 
                as authorized by that section.
                    (C) Exchange of information.--The President shall 
                ensure that the heads of departments, agencies, and 
                offices with enforcement authorities under this title, 
                consistent with protection of law enforcement and its 
                sources and methods--
                            (i) exchange any licensing and enforcement 
                        information with one another that is necessary 
                        to facilitate enforcement efforts under this 
                        section; and
                            (ii) consult on a regular basis with one 
                        another and with the head of other departments, 
                        agencies, and offices that obtain information 
                        subject to this paragraph, in order to 
                        facilitate the exchange of such information.
                    (D) Information sharing with federal agencies.--
                Licensing or enforcement information obtained under 
                this title may be shared with heads of departments, 
                agencies, and offices that do not have enforcement 
                authorities under this title on a case-by-case basis at 
                the discretion of the President. Such information may 
                be shared only when the President makes a determination 
                that the sharing of this information is in the national 
                interest.
    (g) Reporting Requirements.--In the administration of this section, 
reporting requirements shall be designed so as to reduce the cost of 
reporting, recordkeeping, and documentation to the extent consistent 
with effective enforcement and compilation of useful trade statistics. 
Reporting, recordkeeping, and documentation requirements shall be 
periodically reviewed and revised in the light of developments in the 
field of information technology.
    (h) Civil Forfeiture.--
            (1) In general.--Any tangible items seized under subsection 
        (a) by designated officers or employees shall be subject to 
        forfeiture to the United States in accordance with applicable 
        law, except that property seized shall be returned if the 
        property owner is not found guilty of a civil or criminal 
        violation under section 109.
            (2) Procedures.--Any seizure or forfeiture under this 
        subsection shall be carried out in accordance with the 
        procedures set forth in section 981 of title 18, United States 
        Code.

SEC. 112. ADMINISTRATIVE PROCEDURE.

    (a) In General.--The functions exercised under this title shall be 
subject to sections 551, 553 through 559, and 701 through 706 of title 
5, United States Code.
    (b) Amendments to Regulations.--The President shall notify in 
advance the Committee on Banking, Housing, and Urban Affairs of the 
Senate and the Committee on Foreign Affairs of the House of 
Representatives of any proposed amendments to the Export Administration 
Regulations with an explanation of the intent and rationale of such 
amendments.

SEC. 113. ANNUAL REPORT TO CONGRESS.

    (a) In General.--The President shall submit to Congress, by 
December 31 of each year, a report on the implementation of this title 
during the preceding fiscal year. The report shall include an analysis 
of--
            (1) the effect of controls imposed under this title on 
        exports, reexports, and transfers of items in addressing 
        threats to the national security or foreign policy of the 
        United States, including a description of licensing processing 
        times;
            (2) the impact of such controls on the scientific and 
        technological leadership of the United States;
            (3) the consistency with such controls of export controls 
        imposed by other countries;
            (4) efforts to provide exporters with compliance 
        assistance, including specific actions to assist small- and 
        medium-sized businesses;
            (5) a summary of regulatory changes from the prior fiscal 
        year;
            (6) a summary of export enforcement actions, including of 
        actions taken to implement end-use monitoring of dual-use, 
        military, and other items subject to the Export Administration 
        Regulations;
            (7) a summary of approved license applications to 
        proscribed persons; and
            (8) efforts undertaken within the previous year to comply 
        with the requirements of section 109, including any ``critical 
        technologies'' identified under such section and how or whether 
        such critical technologies were controlled for export.
    (b) Form.--The report required under subsection (a) shall be 
submitted in unclassified form, but may contain a classified annex.

SEC. 114. REPEAL.

    (a) In General.--The Export Administration Act of 1979 (50 U.S.C. 
App. 2401 et seq.) (as continued in effect pursuant to the 
International Emergency Economic Powers Act) is repealed.
    (b) Implementation.--The President shall implement the amendment 
made by subsection (a) by exercising the authorities of the President 
under the International Emergency Economic Powers Act (50 U.S.C. 1701 
et seq.).

SEC. 115. EFFECT ON OTHER ACTS.

    (a) In General.--Except as otherwise provided in this title, 
nothing contained in this title shall be construed to modify, repeal, 
supersede, or otherwise affect the provisions of any other laws 
authorizing control over exports, reexports, or transfers of any item, 
or activities of United States persons subject to the Export 
Administration Regulations.
    (b) Coordination of Controls.--
            (1) In general.--The authority granted to the President 
        under this title shall be exercised in such manner so as to 
        achieve effective coordination with all export control and 
        sanctions authorities exercised by Federal departments and 
        agencies delegated with authority under this title, 
        particularly the Department of State, the Department of the 
        Treasury, and the Department of Energy.
            (2) Sense of congress.--It is the sense of Congress that in 
        order to achieve effective coordination described in paragraph 
        (1), such Federal departments and agencies--
                    (A) should continuously work to create enforceable 
                regulations with respect to the export, reexport, and 
                transfer by United States and foreign persons of 
                commodities, software, technology, and services to 
                various end uses and end users for foreign policy and 
                national security reasons;
                    (B) should regularly work to reduce complexity in 
                the system, including complexity caused merely by the 
                existence of structural, definitional, and other non-
                policy based differences between and among different 
                export control and sanctions systems; and
                    (C) should coordinate controls on items exported, 
                reexported, or transferred in connection with a foreign 
                military sale under chapter 2 of the Arms Export 
                Control Act or a commercial sale under section 38 of 
                the Arms Export Control Act to reduce as much 
                unnecessary administrative burden as possible that is a 
                result of differences between the exercise of those two 
                authorities.
    (c) Nonproliferation Controls.--Nothing in this title shall be 
construed to supersede the procedures published by the President 
pursuant to section 309(c) of the Nuclear Non-Proliferation Act of 
1978.

SEC. 116. TRANSITION PROVISIONS.

    (a) In General.--All delegations, rules, regulations, orders, 
determinations, licenses, or other forms of administrative action that 
have been made, issued, conducted, or allowed to become effective under 
the Export Administration Act of 1979 (as in effect on the day before 
the date of the enactment of this Act and as continued in effect 
pursuant to the International Emergency Economic Powers Act), or the 
Export Administration Regulations, and are in effect as of the date of 
the enactment of this Act, shall continue in effect according to their 
terms until modified, superseded, set aside, or revoked under the 
authority of this title.
    (b) Administrative and Judicial Proceedings.--This title shall not 
affect any administrative or judicial proceedings commenced, or any 
applications for licenses made, under the Export Administration Act of 
1979 (as in effect on the day before the date of the enactment of this 
Act and as continued in effect pursuant to the International Emergency 
Economic Powers Act), or the Export Administration Regulations.
    (c) Certain Determinations and References.--
            (1) State sponsors of terrorism.--Any determination that 
        was made under section 6(j) of the Export Administration Act of 
        1979 (as in effect on the day before the date of the enactment 
        of this Act and as continued in effect pursuant to the 
        International Emergency Economic Powers Act) shall continue in 
        effect as if the determination had been made under section 
        104(c) of this Act.
            (2) Reference.--Any reference in any other provision of law 
        to a country the government of which the Secretary of State has 
        determined, for purposes of section 6(j) of the Export 
        Administration Act of 1979 (as in effect on the day before the 
        date of the enactment of this Act and as continued in effect 
        pursuant to the International Emergency Economic Powers Act), 
        is a government that has repeatedly provided support for acts 
        of international terrorism shall be deemed to refer to a 
        country the government of which the Secretary of State has 
        determined, for purposes of section 104(c) of this Act, is a 
        government that has repeatedly provided support for acts of 
        international terrorism.

                   TITLE II--ANTI-BOYCOTT ACT OF 2018

SEC. 201. SHORT TITLE.

    This Act may be cited as the ``Anti-Boycott Act of 2018''.

SEC. 202. STATEMENT OF POLICY.

    Congress declares it is the policy of the United States--
            (1) to oppose restrictive trade practices or boycotts 
        fostered or imposed by any foreign country, or requests to 
        impose restrictive trade practices or boycotts by any foreign 
        country, against other countries friendly to the United States 
        or against any United States person;
            (2) to encourage and, in specified cases, require United 
        States persons engaged in the export of goods or technology or 
        other information to refuse to take actions, including 
        furnishing information or entering into or implementing 
        agreements, which have the effect of furthering or supporting 
        the restrictive trade practices or boycotts fostered or imposed 
        by any foreign country, or requests to impose restrictive trade 
        practices or boycotts by any foreign country against a country 
        friendly to the United States or against any United States 
        person; and
            (3) to foster international cooperation and the development 
        of international rules and institutions to assure reasonable 
        access to world supplies.

SEC. 203. FOREIGN BOYCOTTS.

    (a) Prohibitions and Exceptions.--
            (1) Prohibitions.--For the purpose of implementing the 
        policies set forth in section 202, the President shall issue 
        regulations prohibiting any United States person, with respect 
        to that person's activities in the interstate or foreign 
        commerce of the United States, from taking or knowingly 
        agreeing to take any of the following actions with intent to 
        comply with, further, or support any boycott fostered or 
        imposed by any foreign country, or request to impose any 
        boycott by any foreign country, against a country which is 
        friendly to the United States and which is not itself the 
        object of any form of boycott pursuant to United States law or 
        regulation:
                    (A) Refusing, or requiring any other person to 
                refuse, to do business with or in the boycotted 
                country, with any business concern organized under the 
                laws of the boycotted country, with any national or 
                resident of the boycotted country, or with any other 
                person, pursuant to an agreement with, a requirement 
                of, or a request from or on behalf of the boycotting 
                country. The mere absence of a business relationship 
                with or in the boycotted country with any business 
                concern organized under the laws of the boycotted 
                country, with any national or resident of the boycotted 
                country, or with any other person, does not indicate 
                the existence of the intent required to establish a 
                violation of regulations issued to carry out this 
                subparagraph.
                    (B) Refusing, or requiring any other person to 
                refuse, to employ or otherwise discriminating against 
                any United States person on the basis of race, 
                religion, sex, or national origin of that person or of 
                any owner, officer, director, or employee of such 
                person.
                    (C) Furnishing information with respect to the 
                race, religion, sex, or national origin of any United 
                States person or of any owner, officer, director, or 
                employee of such person.
                    (D) Furnishing information, or requesting the 
                furnishing of information, about whether any person 
                has, has had, or proposes to have any business 
                relationship (including a relationship by way of sale, 
                purchase, legal or commercial representation, shipping 
                or other transport, insurance, investment, or supply) 
                with or in the boycotted country, with any business 
                concern organized under the laws of the boycotted 
                country, with any national or resident of the boycotted 
                country, or with any other person which is known or 
                believed to be restricted from having any business 
                relationship with or in the boycotting country. Nothing 
                in this subparagraph shall prohibit the furnishing of 
                normal business information in a commercial context as 
                defined by the Secretary.
                    (E) Furnishing information about whether any person 
                is a member of, has made contributions to, or is 
                otherwise associated with or involved in the activities 
                of any charitable or fraternal organization which 
                supports the boycotted country.
                    (F) Paying, honoring, confirming, or otherwise 
                implementing a letter of credit which contains any 
                condition or requirement compliance with which is 
                prohibited by regulations issued pursuant to this 
                paragraph, and no United States person shall, as a 
                result of the application of this paragraph, be 
                obligated to pay or otherwise honor or implement such 
                letter of credit.
            (2) Exceptions.--Regulations issued pursuant to paragraph 
        (1) shall provide exceptions for--
                    (A) complying or agreeing to comply with 
                requirements--
                            (i) prohibiting the import of goods or 
                        services from the boycotted country or goods 
                        produced or services provided by any business 
                        concern organized under the laws of the 
                        boycotted country or by nationals or residents 
                        of the boycotted country; or
                            (ii) prohibiting the shipment of goods to 
                        the boycotting country on a carrier of the 
                        boycotted country, or by a route other than 
                        that prescribed by the boycotting country or 
                        the recipient of the shipment;
                    (B) complying or agreeing to comply with import and 
                shipping document requirements with respect to the 
                country of origin, the name of the carrier and route of 
                shipment, the name of the supplier of the shipment or 
                the name of the provider of other services, except that 
                no information knowingly furnished or conveyed in 
                response to such requirements may be stated in 
                negative, blacklisting, or similar exclusionary terms, 
                other than with respect to carriers or route of 
                shipment as may be permitted by such regulations in 
                order to comply with precautionary requirements 
                protecting against war risks and confiscation;
                    (C) complying or agreeing to comply in the normal 
                course of business with the unilateral and specific 
                selection by a boycotting country, or national or 
                resident thereof, of carriers, insurers, suppliers of 
                services to be performed within the boycotting country 
                or specific goods which, in the normal course of 
                business, are identifiable by source when imported into 
                the boycotting country;
                    (D) complying or agreeing to comply with export 
                requirements of the boycotting country relating to 
                shipments or transshipments of exports to the boycotted 
                country, to any business concern of or organized under 
                the laws of the boycotted country, or to any national 
                or resident of the boycotted country;
                    (E) compliance by an individual or agreement by an 
                individual to comply with the immigration or passport 
                requirements of any country with respect to such 
                individual or any member of such individual's family or 
                with requests for information regarding requirements of 
                employment of such individual within the boycotting 
                country; and
                    (F) compliance by a United States person resident 
                in a foreign country or agreement by such person to 
                comply with the laws of that country with respect to 
                his activities exclusively therein, and such 
                regulations may contain exceptions for such resident 
                complying with the laws or regulations of that foreign 
                country governing imports into such country of 
                trademarked, trade named, or similarly specifically 
                identifiable products, or components of products for 
                his own use, including the performance of contractual 
                services within that country, as may be defined by such 
                regulations.
            (3) Special rules.--Regulations issued pursuant to 
        paragraphs (2)(C) and (2)(F) shall not provide exceptions from 
        paragraphs (1)(B) and (1)(C).
            (4) Rule of construction.--Nothing in this subsection may 
        be construed to supersede or limit the operation of the 
        antitrust or civil rights laws of the United States.
            (5) Application.--This section shall apply to any 
        transaction or activity undertaken, by or through a United 
        States person or any other person, with intent to evade the 
        provisions of this section as implemented by the regulations 
        issued pursuant to this subsection, and such regulations shall 
        expressly provide that the exceptions set forth in paragraph 
        (2) shall not permit activities or agreements (expressed or 
        implied by a course of conduct, including a pattern of 
        responses) otherwise prohibited, which are not within the 
        intent of such exceptions.
    (b) Foreign Policy Controls.--
            (1) In general.--In addition to the regulations issued 
        pursuant to subsection (a), regulations issued under title I of 
        this Act to carry out the policies set forth in section 
        102(1)(D) shall implement the policies set forth in this 
        section.
            (2) Requirements.--Such regulations shall require that any 
        United States person receiving a request for the furnishing of 
        information, the entering into or implementing of agreements, 
        or the taking of any other action referred to in subsection (a) 
        shall report that fact to the Secretary, together with such 
        other information concerning such request as the Secretary may 
        require for such action as the Secretary considers appropriate 
        for carrying out the policies of that section. Such person 
        shall also report to the Secretary whether such person intends 
        to comply and whether such person has complied with such 
        request. Any report filed pursuant to this paragraph shall be 
        made available promptly for public inspection and copying, 
        except that information regarding the quantity, description, 
        and value of any goods or technology to which such report 
        relates may be kept confidential if the Secretary determines 
        that disclosure thereof would place the United States person 
        involved at a competitive disadvantage. The Secretary shall 
        periodically transmit summaries of the information contained in 
        such reports to the Secretary of State for such action as the 
        Secretary of State, in consultation with the Secretary, 
        considers appropriate for carrying out the policies set forth 
        in section 202.
    (c) Preemption.--The provisions of this section and the regulations 
issued pursuant thereto shall preempt any law, rule, or regulation of 
any of the several States or the District of Columbia, or any of the 
territories or possessions of the United States, or of any governmental 
subdivision thereof, which law, rule, or regulation pertains to 
participation in, compliance with, implementation of, or the furnishing 
of information regarding restrictive trade practices or boycotts 
fostered or imposed by foreign countries, or requests to impose 
restrictive trade practices or boycotts by any foreign country, against 
other countries friendly to the United States.

SEC. 204. ENFORCEMENT.

    (a) Civil Penalties.--The President may impose the following civil 
penalties on a person who violates section 203 or any regulation issued 
under this title:
            (1) A fine of not more than $250,000 or an amount that is 
        twice the amount of the transaction that is the basis of the 
        violation with respect to which the penalty is imposed.
            (2) Revocation of a license issued under title I to the 
        person.
            (3) A prohibition on the person's ability to export, 
        reexport, or transfer any items, whether or not subject to 
        controls under this title.
    (b) Procedures.--Any civil penalty under this section may be 
imposed only after notice and opportunity for an agency hearing on the 
record in accordance with sections 554 through 557 of title 5, United 
States Code, and shall be subject to judicial review in accordance with 
chapter 7 of such title.
    (c) Standards for Levels of Civil Penalty.--The President may by 
regulation provide standards for establishing levels of civil penalty 
under this section based upon factors such as the seriousness of the 
violation, the culpability of the violator, and the violator's record 
of cooperation with the Government in disclosing the violation.

 TITLE III--SANCTIONS REGARDING MISSILE PROLIFERATION AND CHEMICAL AND 
                    BIOLOGICAL WEAPONS PROLIFERATION

SEC. 301. MISSILE PROLIFERATION CONTROL VIOLATIONS.

    (a) Violations by United States Persons.--
            (1) Sanctions.--
                    (A) Sanctionable activity.--The President shall 
                impose the applicable sanctions described in 
                subparagraph (B) if the President determines that a 
                United States person knowingly--
                            (i) exports, reexports, or transfers of any 
                        item on the MTCR Annex, in violation of the 
                        provisions of section 38 (22 U.S.C. 2778) or 
                        chapter 7 of the Arms Export Control Act, title 
                        I of this Act, or any regulations or orders 
                        issued under any such provisions; or
                            (ii) conspires to or attempts to engage in 
                        such export, reexport, or transfer.
                    (B) Sanctions.--The sanctions that apply to a 
                United States person under subparagraph (A) are the 
                following:
                            (i) If the item on the MTCR Annex involved 
                        in the export, reexport, or transfer is missile 
                        equipment or technology within category II of 
                        the MTCR Annex, then the President shall deny 
                        to such United States person, for a period of 2 
                        years, licenses for the transfer of missile 
                        equipment or technology controlled under title 
                        I.
                            (ii) If the item on the MTCR Annex involved 
                        in the export, reexport, or transfer is missile 
                        equipment or technology within category I of 
                        the MTCR Annex, then the President shall deny 
                        to such United States person, for a period of 
                        not less than 2 years, all licenses for items 
                        the transfer of which is controlled under title 
                        I.
            (2) Discretionary sanctions.--In the case of any 
        determination referred to in paragraph (1), the President may 
        pursue any other appropriate penalties under section 109 of 
        this Act.
            (3) Waiver.--The President may waive the imposition of 
        sanctions under paragraph (1) on a person with respect to a 
        product or service if the President certifies to the Congress 
        that--
                    (A) the product or service is essential to the 
                national security of the United States; and
                    (B) such person is a sole source supplier of the 
                product or service, the product or service is not 
                available from any alternative reliable supplier, and 
                the need for the product or service cannot be met in a 
                timely manner by improved manufacturing processes or 
                technological developments.
    (b) Transfers of Missile Equipment or Technology by Foreign 
Persons.--
            (1) Sanctions.--
                    (A) Sanctionable activity.--Subject to paragraphs 
                (3) through (7), the President shall impose the 
                applicable sanctions under subparagraph (B) on a 
                foreign person if the President--
                            (i) determines that a foreign person 
                        knowingly--
                                    (I) exports, reexports, or 
                                transfers any MTCR equipment or 
                                technology that contributes to the 
                                design, development, or production of 
                                missiles in a country that is not an 
                                MTCR adherent and would be, if it were 
                                United States-origin equipment or 
                                technology, subject to the jurisdiction 
                                of the United States under title I;
                                    (II) conspires to or attempts to 
                                engage in such export, reexport, or 
                                transfer; or
                                    (III) facilitates such export, 
                                reexport, or transfer by any other 
                                person; or
                            (ii) has made a determination with respect 
                        to the foreign person under section 73(a) of 
                        the Arms Export Control Act.
                    (B) Sanctions.--The sanctions that apply to a 
                foreign person under subparagraph (A) are the 
                following:
                            (i) If the item involved in the export, 
                        reexport, or transfer is within category II of 
                        the MTCR Annex, then the President shall deny, 
                        for a period of 2 years, licenses for the 
                        transfer to such foreign person of missile 
                        equipment or technology the transfer of which 
                        is controlled under title I.
                            (ii) If the item involved in the export, 
                        reexport, or transfer is within category I of 
                        the MTCR Annex, then the President shall deny, 
                        for a period of not less than 2 years, licenses 
                        for the transfer to such foreign person of 
                        items the transfer of which is controlled under 
                        title I.
            (2) Inapplicability with respect to MTCR adherents.--
        Paragraph (1) does not apply with respect to--
                    (A) any export, reexport, or transfer that is 
                authorized by the laws of an MTCR adherent, if such 
                authorization is not obtained by misrepresentation or 
                fraud; or
                    (B) any export, reexport, or transfer of an item to 
                an end user in a country that is an MTCR adherent.
            (3) Effect of enforcement actions by MTCR adherents.--
        Sanctions set forth in paragraph (1) may not be imposed under 
        this subsection on a person with respect to acts described in 
        such paragraph or, if such sanctions are in effect against a 
        person on account of such acts, such sanctions shall be 
        terminated, if an MTCR adherent is taking judicial or other 
        enforcement action against that person with respect to such 
        acts, or that person has been found by the government of an 
        MTCR adherent to be innocent of wrongdoing with respect to such 
        acts.
            (4) Waiver and report to congress.--
                    (A) Waiver authority.--The President may waive the 
                application of paragraph (1) to a foreign person if the 
                President determines that such waiver is essential to 
                the national security of the United States.
                    (B) Notification and report to congress.--In the 
                event that the President decides to apply the waiver 
                described in subparagraph (A), the President shall so 
                notify the appropriate congressional committees not 
                less than 20 working days before issuing the waiver. 
                Such notification shall include a report fully 
                articulating the rationale and circumstances which led 
                the President to apply the waiver.
            (5) Additional waiver.--The President may waive the 
        imposition of sanctions under paragraph (1) on a person with 
        respect to a product or service if the President certifies to 
        the appropriate congressional committees that--
                    (A) the product or service is essential to the 
                national security of the United States; and
                    (B) such person is a sole source supplier of the 
                product or service, the product or service is not 
                available from any alternative reliable supplier, and 
                the need for the product or service cannot be met in a 
                timely manner by improved manufacturing processes or 
                technological developments.
            (6) Exceptions.--The President shall not apply the sanction 
        under this subsection prohibiting the importation of the 
        products of a foreign person--
                    (A) in the case of procurement of defense articles 
                or defense services--
                            (i) under existing contracts or 
                        subcontracts, including the exercise of options 
                        for production quantities to satisfy 
                        requirements essential to the national security 
                        of the United States;
                            (ii) if the President determines that the 
                        person to which the sanctions would be applied 
                        is a sole source supplier of the defense 
                        articles or defense services, that the defense 
                        articles or defense services are essential to 
                        the national security of the United States, and 
                        that alternative sources are not readily or 
                        reasonably available; or
                            (iii) if the President determines that such 
                        articles or services are essential to the 
                        national security of the United States under 
                        defense coproduction agreements or NATO 
                        Programs of Cooperation;
                    (B) to products or services provided under 
                contracts entered into before the date on which the 
                President publishes his intention to impose the 
                sanctions; or
                    (C) to--
                            (i) spare parts;
                            (ii) component parts, but not finished 
                        products, essential to United States products 
                        or production;
                            (iii) routine services and maintenance of 
                        products, to the extent that alternative 
                        sources are not readily or reasonably 
                        available; or
                            (iv) information and technology essential 
                        to United States products or production.
    (c) Definitions.--In this section:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on Foreign Affairs of the House 
                of Representatives; and
                    (B) the Committee on Foreign Relations and the 
                Committee on Banking, Housing, and Urban Affairs of the 
                Senate.
            (2) Defense articles; defense services.--The terms 
        ``defense articles'' and ``defense services'' mean those items 
        on the United States Munitions List as defined in section 47(7) 
        of the Arms Export Control Act (22 U.S.C. 2794 note).
            (3) Missile.--The term ``missile'' means a category I 
        system as defined in the MTCR Annex.
            (4) Missile technology control regime; mtcr.--The term 
        ``Missile Technology Control Regime'' or ``MTCR'' means the 
        policy statement, between the United States, the United 
        Kingdom, the Federal Republic of Germany, France, Italy, 
        Canada, and Japan, announced on April 16, 1987, to restrict 
        sensitive missile-relevant transfers based on the MTCR Annex, 
        and any amendments thereto.
            (5) MTCR adherent.--The term ``MTCR adherent'' means a 
        country that participates in the MTCR or that, pursuant to an 
        international understanding to which the United States is a 
        party, controls MTCR equipment or technology in accordance with 
        the criteria and standards set forth in the MTCR.
            (6) MTCR annex.--The term ``MTCR Annex'' means the 
        Guidelines and Equipment and Technology Annex of the MTCR, and 
        any amendments thereto.
            (7) Missile equipment or technology; mtcr equipment or 
        technology.--The terms ``missile equipment or technology'' and 
        ``MTCR equipment or technology'' mean those items listed in 
        category I or category II of the MTCR Annex.

SEC. 302. CHEMICAL AND BIOLOGICAL WEAPONS PROLIFERATION SANCTIONS.

    (a) Imposition of Sanctions.--
            (1) Determination by the president.--Except as provided in 
        subsection (b)(2), the President shall impose the sanction 
        described in subsection (c) if the President determines that a 
        foreign person has knowingly and materially contributed--
                    (A) through the export from the United States of 
                any item that is subject to the jurisdiction of the 
                United States under this title; or
                    (B) through the export from any other country of 
                any item that would be, if they were United States 
                goods or technology, subject to the jurisdiction of the 
                United States under this title,
        to the efforts by any foreign country, project, or entity 
        described in paragraph (2) to use, develop, produce, stockpile, 
        or otherwise acquire chemical or biological weapons.
            (2) Countries, projects, or entities receiving 
        assistance.--Paragraph (1) applies in the case of--
                    (A) any foreign country that the President 
                determines has, at any time after January 1, 1980--
                            (i) used chemical or biological weapons in 
                        violation of international law;
                            (ii) used lethal chemical or biological 
                        weapons against its own nationals; or
                            (iii) made substantial preparations to 
                        engage in the activities described in clause 
                        (i) or (ii);
                    (B) any foreign country whose government is 
                determined for purposes of section 104(c) of this Act 
                to be a government that has repeatedly provided support 
                for acts of international terrorism; or
                    (C) any other foreign country, project, or entity 
                designated by the President for purposes of this 
                section.
            (3) Persons against which sanctions are to be imposed.--A 
        sanction shall be imposed pursuant to paragraph (1) on--
                    (A) the foreign person with respect to which the 
                President makes the determination described in that 
                paragraph;
                    (B) any successor entity to that foreign person; 
                and
                    (C) any foreign person that is a parent, 
                subsidiary, or affiliate of that foreign person if that 
                parent, subsidiary, or affiliate knowingly assisted in 
                the activities which were the basis of that 
                determination.
    (b) Consultations With and Actions by Foreign Government of 
Jurisdiction.--
            (1) Consultations.--If the President makes the 
        determinations described in subsection (a)(1) with respect to a 
        foreign person, the Congress urges the President to initiate 
        consultations immediately with the government with primary 
        jurisdiction over that foreign person with respect to the 
        imposition of a sanction pursuant to this section.
            (2) Actions by government of jurisdiction.--In order to 
        pursue such consultations with that government, the President 
        may delay imposition of a sanction pursuant to this section for 
        a period of up to 90 days. Following such consultations, the 
        President shall impose the sanction unless the President 
        determines and certifies to the appropriate congressional 
        committees that the Government has taken specific and effective 
        actions, including appropriate penalties, to terminate the 
        involvement of the foreign person in the activities described 
        in subsection (a)(1). The President may delay imposition of the 
        sanction for an additional period of up to 90 days if the 
        President determines and certifies to the Congress that the 
        government is in the process of taking the actions described in 
        the preceding sentence.
            (3) Report to congress.--The President shall report to the 
        appropriate congressional committees, not later than 90 days 
        after making a determination under subsection (a)(1), on the 
        status of consultations with the appropriate government under 
        this subsection, and the basis for any determination under 
        paragraph (2) of this subsection that such government has taken 
        specific corrective actions.
    (c) Sanction.--
            (1) Description of sanction.--The sanction to be imposed 
        pursuant to subsection (a)(1) is, except as provided that the 
        United States Government shall not procure, or enter into any 
        contract for the procurement of, any goods or services from any 
        person described in subsection (a)(3).
            (2) Exceptions.--The President shall not be required to 
        apply or maintain a sanction under this section--
                    (A) in the case of procurement of defense articles 
                or defense services--
                            (i) under existing contracts or 
                        subcontracts, including the exercise of options 
                        for production quantities to satisfy United 
                        States operational military requirements;
                            (ii) if the President determines that the 
                        person or other entity to which the sanctions 
                        would otherwise be applied is a sole source 
                        supplier of the defense articles or defense 
                        services, that the defense articles or defense 
                        services are essential, and that alternative 
                        sources are not readily or reasonably 
                        available; or
                            (iii) if the President determines that such 
                        articles or services are essential to the 
                        national security under defense coproduction 
                        agreements;
                    (B) to products or services provided under 
                contracts entered into before the date on which the 
                President publishes his intention to impose sanctions;
                    (C) to--
                            (i) spare parts;
                            (ii) component parts, but not finished 
                        products, essential to United States products 
                        or production; or
                            (iii) routine servicing and maintenance of 
                        products, to the extent that alternative 
                        sources are not readily or reasonably 
                        available;
                    (D) to information and technology essential to 
                United States products or production; or
                    (E) to medical or other humanitarian items.
    (d) Termination of Sanctions.--A sanction imposed pursuant to this 
section shall apply for a period of at least 12 months following the 
imposition of one sanction and shall cease to apply thereafter only if 
the President determines and certifies to the appropriate congressional 
committees that reliable information indicates that the foreign person 
with respect to which the determination was made under subsection 
(a)(1) has ceased to aid or abet any foreign government, project, or 
entity in its efforts to acquire chemical or biological weapons 
capability as described in that subsection.
    (e) Waiver.--
            (1) Criterion for waiver.--The President may waive the 
        application of any sanction imposed on any person pursuant to 
        this section, after the end of the 12-month period beginning on 
        the date on which that sanction was imposed on that person, if 
        the President determines and certifies to the appropriate 
        congressional committees that such waiver is important to the 
        national security interests of the United States.
            (2) Notification of and report to congress.--If the 
        President decides to exercise the waiver authority provided in 
        paragraph (1), the President shall so notify the appropriate 
        congressional committees not less than 20 days before the 
        waiver takes effect. Such notification shall include a report 
        fully articulating the rationale and circumstances which led 
        the President to exercise the waiver authority.
    (f) Definitions.--In this section:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on Foreign Affairs of the House 
                of Representatives; and
                    (B) the Committee on Foreign Relations and the 
                Committee on Banking, Housing, and Urban Affairs of the 
                Senate.
            (2) Defense articles; defense services.--The terms 
        ``defense articles'' and ``defense services'' mean those items 
        on the United States Munitions List or are otherwise controlled 
        under the Arms Export Control Act.
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