I 

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. 

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Export Control Reform Act of 2018’’. 


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1 (b) TABLE OF CONTENTS.—The table of contents of 

2 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. 

3 SEC. 2. DEFINITIONS. 

4 In this Act: 

5 (1) CONTROLLED.—The term ‘‘controlled’’, 

6 with respect to an item, means the export, reexport, 

7 or transfer of the item is controlled under title I. 

8 (2) DUAL-USE.—The term ‘‘dual-use’’, with re9 spect to an item, means the item has civilian appliVerDate Sep 11 2014 22:46 Feb 22, 2018 Jkt 079200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H5040.IH H5040

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1 cations and military, terrorism, or weapons of mass 

2 destruction-related applications. 

3 (3) EXPORT.—The term ‘‘export’’, with respect 

4 to an item subject to controls under title I, in5 cludes— 

6 (A) the shipment or transmission of the 

7 item out of the United States, including the 

8 sending or taking of the item out of the United 

9 States, in any manner; and 

10 (B) the release or transfer of technology or 

11 source code relating to the item to a foreign 

12 person in the United States. 

13 (4) EXPORT ADMINISTRATION REGULATIONS.— 

14 The term ‘‘Export Administration Regulations’’ 

15 means— 

16 (A) the Export Administration Regulations 

17 as promulgated, maintained, and amended 

18 under the authority of the International Emer19 gency Economic Powers Act and codified, as of 

20 the date of the enactment of this Act, in sub21 chapter C of chapter VII of title 15, Code of 

22 Federal Regulations; or 

23 (B) regulations that are promulgated, 

24 maintained, and amended under the authority 


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1 of title I on or after the date of the enactment 

2 of this Act. 

3 (5) FOREIGN PERSON.—The term ‘‘foreign per4 son’’ means a person that is not a United States 

5 person. 

6 (6) ITEM.—The term ‘‘item’’ means a com7 modity, software, or technology. 

8 (7) PERSON.— 

9 (A) IN GENERAL.—The term ‘‘person’’ 

10 means— 

11 (i) a natural person; 

12 (ii) a corporation, business associa13 tion, partnership, society, trust, financial 

14 institution, insurer, underwriter, guar15 antor, and any other business organization, 

16 any other nongovernmental entity, organi17 zation, or group, and any governmental en18 tity operating as a business enterprise; and 

19 (iii) any successor to any entity de20 scribed in clause (ii). 

21 (B) APPLICATION TO GOVERNMENTAL EN22 TITIES.—The term ‘‘person’’ does not include a 

23 government or governmental entity that is not 

24 operating as a business enterprise. 


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1 (8) REEXPORT.—The term ‘‘reexport’’, with re2 spect to an item subject to controls under title I, in3 cludes— 

4 (A) the shipment or transmission of the 

5 item from a foreign country to another foreign 

6 country, including the sending or taking of the 

7 item from the foreign country to the other for8 eign country, in any manner; and 

9 (B) the release or transfer of technology or 

10 source code relating to the item to a foreign 

11 person outside the United States. 

12 (9) TECHNOLOGY.—The term ‘‘technology’’— 

13 (A) includes— 

14 (i) information necessary for the de15 velopment, production, use, operation, in16 stallation, maintenance, repair, overhaul or 

17 refurbishing of an item; and 

18 (ii) information at whatever stage of 

19 its creation, such as foundational informa20 tion and know-how, as further defined by 

21 regulations; and 

22 (B) does not include published informa23 tion, including prerecorded records, printed 

24 books, pamphlets, miscellaneous publications, or 

25 other information, that— 


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1 (i) arises during, or results from, fun2 damental research and is intended to be 

3 published; 

4 (ii) is released by instruction in a 

5 catalog course or associated teaching lab6 oratory of an academic institution; 

7 (iii) appears in patents or open (pub8 lished) patent publications available from 

9 or at any patent office, unless covered by 

10 an invention secrecy order; 

11 (iv) is non-proprietary system descrip12 tions; 

13 (v) is telemetry data; or 

14 (vi) is any other category or type of 

15 information, as determined by the Presi16 dent for purposes of national security or 

17 foreign policy concerns. 

18 (10) TRANSFER.—The term ‘‘transfer’’, with 

19 respect to an item subject to controls under title I, 

20 means a change in the end-use or end user of the 

21 item within the same foreign country. 

22 (11) UNITED STATES.—The term ‘‘United 

23 States’’ means the several States, the District of Co24 lumbia, the Commonwealth of Puerto Rico, the Com25 monwealth of the Northern Mariana Islands, AmerVerDate Sep 11 2014 22:46 Feb 22, 2018 Jkt 079200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H5040.IH H5040

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1 ican Samoa, Guam, the United States Virgin Is2 lands, and any other territory or possession of the 

3 United States. 

4 (12) UNITED STATES PERSON.—The term 

5 ‘‘United States person’’ means— 

6 (A) any individual who is a citizen or na7 tional of the United States or who is an indi8 vidual described in subparagraph (B) of section 

9 274B(a)(3) of the Immigration and Nationality 

10 Act (8 U.S.C. 1324b(a)(3)); and 

11 (B) a corporation or other legal entity 

12 which is organized under the laws of the United 

13 States, any State or territory thereof, or the 

14 District of Columbia, if natural persons de15 scribed in subparagraph (A) own, directly or in16 directly, more than 50 percent of the out17 standing capital stock or other beneficial inter18 est in such legal entity. 

19 (13) WEAPONS OF MASS DESTRUCTION.—The 

20 term ‘‘weapons of mass destruction’’ means nuclear, 

21 radiological, chemical, and biological weapons and 

22 delivery systems for such weapons. 


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1 TITLE I—AUTHORITY AND 

2 ADMINISTRATION OF CONTROLS 

3 SEC. 101. SHORT TITLE. 

4 This title may be cited as the ‘‘Export Controls Act 

5 of 2018’’. 

6 SEC. 102. STATEMENT OF POLICY. 

7 The following is the policy of the United States: 

8 (1) The national security and foreign policy of 

9 the United States require that the export, reexport, 

10 and transfer of items, and specific activities of 

11 United States persons, wherever located, be con12 trolled for the following purposes: 

13 (A) To control the access to items for use 

14 in— 

15 (i) the proliferation of weapons of 

16 mass destruction or of conventional weap17 ons; 

18 (ii) the acquisition of destabilizing 

19 numbers or types of conventional weapons; 

20 (iii) acts of terrorism; 

21 (iv) military programs that could pose 

22 a threat to the security of the United 

23 States or its allies; or 


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1 (v) activities undertaken specifically to 

2 cause significant interference with or dis3 ruption of critical infrastructure. 

4 (B) To preserve the qualitative military su5 periority of the United States. 

6 (C) To strengthen the United States in7 dustrial base. 

8 (D) To carry out the foreign policy of the 

9 United States, including the protection of 

10 human rights and the promotion of democracy. 

11 (E) To carry out obligations and commit12 ments under international agreements and ar13 rangements, including multilateral export con14 trol regimes. 

15 (F) To facilitate military interoperability 

16 between the United States and its North Atlan17 tic Treaty Organization (NATO) and other 

18 close allies. 

19 (G) To ensure national security controls 

20 are tailored to focus on those core technologies 

21 and other items that are capable of being used 

22 to pose a serious national security threat to the 

23 United States. 

24 (2) The national security of the United States 

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1 ship in the science, technology, engineering, and 

2 manufacturing sectors. Such leadership requires that 

3 United States persons are competitive in global mar4 kets. The impact of the implementation of this title 

5 on such leadership and competitiveness must be 

6 evaluated on an ongoing basis and applied in impos7 ing controls under sections 103 and 104 to avoid 

8 negatively affecting such leadership. 

9 (3) The national security and foreign policy of 

10 the United States require that the United States 

11 participate in multilateral organizations and agree12 ments regarding export controls on items that are 

13 consistent with the policy of the United States, and 

14 take all the necessary steps to secure the adoption 

15 and consistent enforcement, by the governments of 

16 such countries, of export controls on items that are 

17 consistent with such policy. 

18 (4) Export controls should be fully coordinated 

19 with the multilateral export control regimes. Export 

20 controls that are multilateral are most effective, and 

21 should be tailored to focus on those core technologies 

22 and other items that are capable of being used to 

23 pose a serious national security threat to the United 

24 States and its allies. 


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1 (5) Export controls applied unilaterally to items 

2 widely available from foreign sources generally are 

3 less effective in preventing end-users from acquiring 

4 those items. 

5 (6) The effective administration of export con6 trols requires a clear understanding both inside and 

7 outside the United States Government of which tech8 nologies and other items are controlled and an effi9 cient process should be created to update the con10 trols, such as by removing and adding technologies 

11 and other items. 

12 (7) The export control system must ensure that 

13 it is transparent, predictable, and timely, has the 

14 flexibility to be adapted to address new threats in 

15 the future, and allows seamless access to and shar16 ing of export control information among all relevant 

17 United States national security and foreign policy 

18 agencies. 

19 (8) Implementation and enforcement of United 

20 States export controls require robust capabilities in 

21 monitoring, intelligence, and investigation, appro22 priate penalties for violations, and the ability to 

23 swiftly interdict unapproved transfers. 

24 (9) Export controls should be balanced with 

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1 rity, and cyber-security policies to ensure the ability 

2 to export, reexport, and transfer technology and 

3 other items in support of counterterrorism, critical 

4 infrastructure, and other homeland security prior5 ities, while effectively preventing malicious cyber ter6 rorists from obtaining items that threaten the 

7 United States and its interests, including the protec8 tion of and safety of United States citizens abroad. 

9 (10) Export controls complement and are a 

10 critical element of the national security policies un11 derlying the laws and regulations governing foreign 

12 direct investment in the United States, including 

13 controlling the transfer of critical technologies to 

14 certain foreign persons. Thus, the President, in close 

15 coordination with the Department of Commerce, the 

16 Department of Defense, the Department of State, 

17 the Department of Energy, and other agencies re18 sponsible for export controls, should have a regular 

19 and robust process to identify the emerging and 

20 other types of critical technologies of concern, as de21 fined in United States foreign direct investment 

22 laws, and regulate their release to foreign persons as 

23 warranted regardless of the nature of the underlying 

24 transaction. Such identification efforts should draw 

25 upon the resources and expertise of all relevant 


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1 parts of the United States Government, industry, 

2 and academia. These efforts should be in addition to 

3 traditional efforts to modernize and update the lists 

4 of controlled items under the multilateral export con5 trol regimes. 

6 (11) The authority under this title may be exer7 cised only in furtherance of all of the objectives set 

8 forth in paragraphs (1) through (10). 

9 SEC. 103. AUTHORITY OF THE PRESIDENT. 

10 (a) AUTHORITY.—In order to carry out the policy set 

11 forth in paragraphs (1) through (10) of section 102, the 

12 President shall control— 

13 (1) the export, reexport, and transfer of items, 

14 whether by United States persons, wherever located, 

15 or by foreign persons, wherever located; and 

16 (2) the activities of United States persons, 

17 wherever located, relating to specific— 

18 (A) nuclear explosive devices; 

19 (B) missiles; 

20 (C) chemical or biological weapons; 

21 (D) whole plants for chemical weapons pre22 cursors; 

23 (E) foreign maritime nuclear projects; and 

24 (F) foreign intelligence services. 


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1 (b) REQUIREMENTS.—In exercising authority under 

2 this title, the President shall impose controls to achieve 

3 the following objectives: 

4 (1) To regulate the export, reexport, and trans5 fer of items described in subsection (a)(1) of United 

6 States persons, wherever located, or foreign persons, 

7 wherever located. 

8 (2) To regulate the activities described in sub9 section (a)(2) of United States persons, wherever lo10 cated. 

11 (3) To secure the cooperation of other govern12 ments and multilateral organizations to impose con13 trol systems that are consistent, to the extent pos14 sible, with the controls imposed under subsection 

15 (a). 

16 (4) To maintain the leadership of the United 

17 States in science, engineering, technology research 

18 and development, and manufacturing. 

19 (5) To enhance the viability of commercial 

20 firms, academic institutions, and research establish21 ments, and maintain the skilled workforce of such 

22 firms, institutions, and establishments, that are nec23 essary to preserving the leadership of the United 

24 States described in paragraph (4). 


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1 (6) To strengthen the United States industrial 

2 base, both with respect to current and future de3 fense requirements. 

4 (7) To enforce the controls through means such 

5 as regulations, requirements for compliance, lists of 

6 controlled items, lists of foreign persons who threat7 en the national security or foreign policy of the 

8 United States, and guidance in a form that facili9 tates compliance by United States persons and for10 eign persons, in particular academic institutions, sci11 entific and research establishments, and small- and 

12 medium-sized businesses. 

13 SEC. 104. ADDITIONAL AUTHORITIES. 

14 (a) IN GENERAL.—In carrying out this title, the 

15 President shall— 

16 (1) establish and maintain lists published by 

17 the Secretary of Commerce of items that are con18 trolled under this title; 

19 (2) establish and maintain lists published by 

20 the Secretary of Commerce of foreign persons and 

21 end-uses that are determined to be a threat to the 

22 national security and foreign policy of the United 

23 States pursuant to the policy set forth in section 

24 102(1)(A) and to whom exports, reexports, and 

25 transfers of items are controlled; 


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1 (3) prohibit unauthorized exports, reexports, 

2 and transfers of controlled items; 

3 (4) restrict exports, reexports, and transfers of 

4 any controlled items to any foreign person or end5 use listed under paragraph (2); 

6 (5) require licenses or other authorizations, as 

7 appropriate, for exports, reexports, and transfers of 

8 controlled items, including imposing conditions or re9 strictions on United States persons and foreign per10 sons with respect to such licenses or other authoriza11 tions; 

12 (6) establish a process by which the Secretary 

13 of Commerce or a license applicant requests an as14 sessment that a foreign item is comparable in qual15 ity to an item controlled under this title, and is 

16 available in sufficient quantities to render the 

17 United States export control of that item or the de18 nial of a license ineffective; 

19 (7) require measures for compliance with the 

20 export controls established under this title; 

21 (8) require and obtain such information from 

22 United States persons and foreign persons as is nec23 essary to carry out this title; 


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1 (9) require, as appropriate, advance notice be2 fore an item is exported, reexported, or transferred, 

3 as an alternative to requiring a license; 

4 (10) require, to the extent feasible, identifica5 tion of items subject to controls under this title in 

6 order to facilitate the enforcement of such controls; 

7 (11) inspect, search, detain, seize, or impose 

8 temporary denial orders with respect to items, in 

9 any form, that are subject to controls under this 

10 title, or conveyances on which it is believed that 

11 there are items that have been, are being, or are 

12 about to be exported, reexported, or transferred in 

13 violation of this title; 

14 (12) monitor shipments, or other means of 

15 transfer; 

16 (13) keep the public fully apprised of changes 

17 in policy, regulations, and procedures established 

18 under this title; 

19 (14) appoint technical advisory committees in 

20 accordance with the Federal Advisory Committee 

21 Act; 

22 (15) create, as warranted, exceptions to licens23 ing requirements in order to further the objectives of 

24 this title; and 


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1 (16) undertake any other action as is necessary 

2 to carry out this title and is not otherwise prohibited 

3 by law. 

4 (b) RELATIONSHIP TO IEEPA.—The authority under 

5 this title may not be used to regulate or prohibit under 

6 this title the export, reexport, or transfer of any item that 

7 may not be regulated or prohibited under section 203(b) 

8 of the International Emergency Economic Powers Act (50 

9 U.S.C. 1702(b)). 

10 (c) COUNTRIES SUPPORTING INTERNATIONAL TER11 RORISM.— 

12 (1) LICENSE REQUIREMENT.— 

13 (A) IN GENERAL.—A license shall be re14 quired for the export, reexport, or transfer of 

15 items to a country if the Secretary of State has 

16 made the following determinations: 

17 (i) The government of such country 

18 has repeatedly provided support for acts of 

19 international terrorism. 

20 (ii) The export, reexport, or transfer 

21 of such items could make a significant con22 tribution to the military potential of such 

23 country, including its military logistics ca24 pability, or could enhance the ability of 


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1 such country to support acts of inter2 national terrorism. 

3 (B) DETERMINATION UNDER OTHER PRO4 VISIONS OF LAW.—A determination of the Sec5 retary of State under section 620A of the For6 eign Assistance Act of 1961 (22 U.S.C. 2371), 

7 section 40 of the Arms Export Control Act (22 

8 U.S.C. 2780), or any other provision of law 

9 that the government of a country described in 

10 subparagraph (A) has repeatedly provided sup11 port for acts of international terrorism shall be 

12 deemed to be a determination with respect to 

13 such government for purposes of clause (i) of 

14 subparagraph (A). 

15 (2) NOTIFICATION TO CONGRESS.—The Sec16 retary of State and the Secretary of Commerce shall 

17 notify the Committee on Foreign Affairs of the 

18 House of Representatives and the Committee on 

19 Banking, Housing, and Urban Affairs and the Com20 mittee on Foreign Relations of the Senate at least 

21 30 days before issuing any license required by para22 graph (1). 

23 (3) PUBLICATION IN FEDERAL REGISTER.— 

24 Each determination of the Secretary of State under 

25 paragraph (1)(A) shall be published in the Federal 


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1 Register, except that the Secretary of State may ex2 clude confidential information and trade secrets con3 tained in such determination. 

4 (4) RESCISSION OF DETERMINATION.—A deter5 mination of the Secretary of State under paragraph 

6 (1)(A) may not be rescinded unless the President 

7 submits to the Speaker of the House of Representa8 tives, the chairman of the Committee on Foreign Af9 fairs, and the chairman of the Committee on Bank10 ing, Housing, and Urban Affairs and the chairman 

11 of the Committee on Foreign Relations of the Sen12 ate— 

13 (A) before the proposed rescission would 

14 take effect, a report certifying that— 

15 (i) there has been a fundamental 

16 change in the leadership and policies of the 

17 government of the country concerned; 

18 (ii) that government is not supporting 

19 acts of international terrorism; and 

20 (iii) that government has provided as21 surances that it will not support acts of 

22 international terrorism in the future; or 

23 (B) at least 90 days before the proposed 

24 rescission would take effect, a report justifying 

25 the rescission and certifying that— 


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1 (i) the government concerned has not 

2 provided any support for acts international 

3 terrorism during the preceding 24-month 

4 period; and 

5 (ii) the government concerned has 

6 provided assurances that it will not sup7 port acts of international terrorism in the 

8 future. 

9 (5) DISAPPROVAL OF RESCISSION.—No rescis10 sion under paragraph (4)(B) of a determination 

11 under paragraph (1)(A) with respect to the govern12 ment of a country may be made if Congress, within 

13 90 days after receipt of a report under paragraph 

14 (4)(B), enacts a joint resolution described in sub15 section (f)(2) of section 40 of the Arms Export Con16 trol Act with respect to a rescission under subsection 

17 (f)(1) of such section with respect to the government 

18 of such country. 

19 (6) NOTIFICATION AND BRIEFING.—Not later 

20 than— 

21 (A) ten days after initiating a review of the 

22 activities of the government of the country con23 cerned within the 24-month period referred to 

24 in paragraph (4)(B)(i), the Secretary of State 

25 shall notify the Committee on Foreign Affairs 


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1 of the House of Representatives and the Com2 mittee on Foreign Relations of the Senate of 

3 such initiation; and 

4 (B) 20 days after the notification described 

5 in paragraph (1), the Secretary of State shall 

6 brief the congressional committees described in 

7 paragraph (1) on the status of such review. 

8 (7) CONTENTS OF NOTIFICATION OF LI9 CENSE.—The Secretary of State shall include in the 

10 notification required by paragraph (2)— 

11 (A) a detailed description of the items to 

12 be offered, including a brief description of the 

13 capabilities of any item for which a license to 

14 export, reexport, or transfer the items is 

15 sought; 

16 (B) the reasons why the foreign country, 

17 person, or entity to which the export, reexport, 

18 or transfer is proposed to be made has re19 quested the items under the export, reexport, or 

20 transfer, and a description of the manner in 

21 which such country, person, or entity intends to 

22 use such items; 

23 (C) the reasons why the proposed export, 

24 reexport, or transfer is in the national interest 

25 of the United States; 


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1 (D) an analysis of the impact of the pro2 posed export, reexport, or transfer on the mili3 tary capabilities of the foreign country, person, 

4 or entity to which such transfer would be made; 

5 (E) an analysis of the manner in which the 

6 proposed export, reexport, or transfer would af7 fect the relative military strengths of countries 

8 in the region to which the items that are the 

9 subject of such export, reexport, or transfer 

10 would be delivered and whether other countries 

11 in the region have comparable kinds and 

12 amounts of items; and 

13 (F) an analysis of the impact of the pro14 posed export, reexport, or transfer on the rela15 tions of the United States with the countries in 

16 the region to which the items that are the sub17 ject of such export, reexport, or transfer would 

18 be delivered. 

19 (d) ENHANCED PROLIFERATION CONTROLS.— 

20 (1) IN GENERAL.—In furtherance of section 

21 103(a) of this title, the President shall, except to the 

22 extent authorized by a statute or regulation adminis23 tered by a Federal department or agency other than 

24 the Department of Commerce, require a United 

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1 ceive a license from the Department of Commerce 

2 for the export, reexport, or transfer of items de3 scribed in paragraph (2) or for the performance of 

4 services relating to such items. 

5 (2) ITEMS DESCRIBED.—The items described in 

6 this paragraph are— 

7 (A) nuclear explosive devices; 

8 (B) missiles; 

9 (C) chemical or biological weapons; 

10 (D) whole plants for chemical weapons pre11 cursors; and 

12 (E) foreign maritime nuclear projects that 

13 would pose a risk to the national security or 

14 foreign policy of the United States. 

15 (e) ADDITIONAL PROHIBITIONS.—The Secretary of 

16 Commerce may inform United States persons, either indi17 vidually by specific notice or through amendment to any 

18 regulation or order issued under this title, that a license 

19 from the Bureau of Industry and Security of the Depart20 ment of Commerce is required to engage in any activity 

21 if the activity involves the types of movement, service, or 

22 support described in subsection (d). The absence of any 

23 such notification does not excuse the United States person 

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1 section (d), or any regulation or order issued under this 

2 title. 

3 (f) LICENSE REVIEW STANDARDS.—The Secretary of 

4 Commerce shall deny an application to engage in any ac5 tivity that involves the types of movement, service, or sup6 port described in subsection (d) if the activity would make 

7 a material contribution to any of the items described in 

8 subsection (d)(2). 

9 SEC. 105. ADMINISTRATION OF EXPORT CONTROLS. 

10 (a) IN GENERAL.—The President shall delegate to 

11 the Secretary of Commerce, the Secretary of Defense, the 

12 Secretary of State and, as appropriate, the Director of Na13 tional Intelligence and the heads of other appropriate Fed14 eral departments and agencies, the authority to carry out 

15 the purposes set forth in subsection (b). 

16 (b) PURPOSES.— 

17 (1) IN GENERAL.—The purpose of the delega18 tions of authority pursuant to subsection (a) are— 

19 (A) to advise the President with respect 

20 to— 

21 (i) identifying specific threats to the 

22 national security and foreign policy that 

23 the authority of this title may be used to 

24 address; and 


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1 (ii) exercising the authority under this 

2 title to implement policies, regulations, 

3 procedures, and actions that are necessary 

4 to effectively counteract those threats; 

5 (B) to review and approve— 

6 (i) criteria for including items on, and 

7 removing such an item from, a list of con8 trolled items established under this title; 

9 (ii) an interagency procedure for com10 piling and amending any list described in 

11 clause (i); 

12 (iii) criteria for including a person on 

13 a list of persons to whom exports, reex14 ports, and transfers of items are prohibited 

15 or restricted under this title; 

16 (iv) standards for compliance by per17 sons subject to controls under this title; 

18 and 

19 (v) policies and procedures for the 

20 end-use monitoring of exports, reexports, 

21 and transfers of items controlled under 

22 this title; 

23 (C) to obtain independent evaluations, in24 cluding from Inspectors General of the relevant 

25 departments or agencies, on a periodic basis on 


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1 the effectiveness of the implementation of this 

2 title in carrying out the policy set forth in sec3 tion 102; and 

4 (D) to benefit from the inherent equities, 

5 experience, and capabilities of the Federal offi6 cials described in subsection (a), including— 

7 (i) the views of the Department of De8 fense with respect to the national security 

9 implications of a particular control or deci10 sion; 

11 (ii) the views of the Department of 

12 State with respect to the foreign policy im13 plications of a particular control or deci14 sion; 

15 (iii) the views of the Department of 

16 Energy with respect to the implications for 

17 nuclear proliferation of a particular control 

18 or decision; and 

19 (iv) the views of the Department of 

20 Commerce with respect to the administra21 tion of an efficient, coherent, reliable, en22 forceable, and predictable export control 

23 system, and the resolution of competing 

24 views or policy objectives described in sec25 tion 102. 


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1 (2) AUTHORITY TO SEEK INFORMATION.—The 

2 Federal officials described in subsection (a) may, in 

3 carrying out the purposes set forth in paragraph (1), 

4 seek information and advice from experts who are 

5 not officers or employees of the Federal Govern6 ment. 

7 (3) TRANSMITTAL AND IMPLEMENTATION OF

8 EVALUATIONS.—The results of the independent eval9 uations conducted pursuant to paragraph (1)(D) 

10 shall be transmitted to the President and the Con11 gress, in classified form if necessary. Subject to the 

12 delegation of authority by the President, the Federal 

13 officials described in subsection (a) shall determine, 

14 direct, and ensure that improvements recommended 

15 in the evaluations are implemented. 

16 SEC. 106. CONTROL LISTS. 

17 The President shall, pursuant to the delegation of au18 thority in section 105, ensure that— 

19 (1) a process is established for regular inter20 agency review of each list established under section 

21 104(a)(1), that pursuant to such review the Sec22 retary of Commerce regularly updates such lists to 

23 ensure that new items (including emerging critical 

24 technologies) are appropriately controlled, and that 


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1 the level of control of items on the lists are adjusted 

2 as conditions change; 

3 (2) information and expertise is obtained from 

4 officers and employees from relevant Federal depart5 ments, agencies, and offices and persons outside the 

6 Federal Government who have technical expertise, 

7 with respect to the characteristics of the items con8 sidered for each list established under section 

9 104(a)(1) and the effect of controlling the items on 

10 addressing the policy set forth in section 102; 

11 (3) each list established under section 104(a)(1) 

12 appropriately identifies each entry that has been in13 cluded by virtue of the participation of the United 

14 States in a multilateral regime, organization, or 

15 group the purpose of which is consistent with and 

16 supports the policy of the United States under this 

17 title relating to the control of exports, reexports, and 

18 transfers of items; and 

19 (4) each list established under section 104(a)(1) 

20 is published by the Secretary of Commerce in a form 

21 that facilitates compliance with it and related re22 quirements, particularly by small- and medium-sized 

23 businesses, and academic institutions. 


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1 SEC. 107. LICENSING. 

2 (a) IN GENERAL.—The President shall, pursuant to 

3 the delegation of authority in section 105, establish a pro4 cedure for the Department of Commerce to license or oth5 erwise authorize the export, reexport, and transfer of 

6 items controlled under this title in order to carry out the 

7 policy set forth in section 102 and the requirements set 

8 forth in section 103(b). The procedure shall ensure that— 

9 (1) license applications, other requests for au10 thorization, and related dispute resolution proce11 dures are considered and decisions made with the 

12 participation of appropriate departments, agencies, 

13 and offices that have delegated functions under this 

14 title; and 

15 (2) licensing decisions are made in an expedi16 tious manner, with transparency to applicants on the 

17 status of license and other authorization processing 

18 and the reason for denying any license or request for 

19 authorization. 

20 (b) SENSE OF CONGRESS.—It is the sense of Con21 gress that the President should make best efforts to en22 sure that an accurate, consistent, and timely evaluation 

23 and processing of licenses or other requests for authoriza24 tion to export, reexport, or transfer items controlled under 

25 this title is accomplished within 30 days from the date 

26 of such license request. 


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1 (c) FEES.—No fee may be charged in connection with 

2 the submission, processing, or consideration of any appli3 cation for a license or other authorization or other request 

4 made in connection with any regulation in effect under 

5 the authority of this title. 

6 SEC. 108. COMPLIANCE ASSISTANCE. 

7 (a) SYSTEM FOR SEEKING ASSISTANCE.—The Presi8 dent may establish a system to provide United States per9 sons with assistance in complying with this title, which 

10 may include a mechanism for providing information, in 

11 classified form as appropriate, who are potential cus12 tomers, suppliers, or business partners with respect to 

13 items controlled under this title, in order to further ensure 

14 the prevention of the export, reexport, or transfer of items 

15 that may pose a threat to the national security or foreign 

16 policy of the United States. 

17 (b) SECURITY CLEARANCES.—In order to carry out 

18 subsection (a), the President may issue appropriate secu19 rity clearances to persons described in that subsection who 

20 are responsible for complying with this title. 

21 (c) ASSISTANCE FOR CERTAIN BUSINESSES.— 

22 (1) IN GENERAL.—Not later than 120 days 

23 after the date of the enactment of this Act, the 

24 President shall develop and submit to Congress a 

25 plan to assist small- and medium-sized United 


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1 States in export licensing and other processes under 

2 this title. 

3 (2) CONTENTS.—The plan shall include, among 

4 other things, arrangements for the Department of 

5 Commerce to provide counseling to businesses de6 scribed in paragraph (1) on filing applications and 

7 identifying items controlled under this title, as well 

8 as proposals for seminars and conferences to educate 

9 such businesses on export controls, licensing proce10 dures, and related obligations. 

11 SEC. 109. REQUIREMENTS TO IDENTIFY AND CONTROL 

12 EMERGING CRITICAL TECHNOLOGIES IN EX13 PORT CONTROL REGULATIONS. 

14 (a) IN GENERAL.—The President shall, pursuant to 

15 the delegation of authority in section 105, establish and, 

16 in coordination with the Department of Commerce, the 

17 Department of Defense, the Department of State, the De18 partment of Energy, and other departments determined 

19 to be necessary, lead a regular, ongoing interagency proc20 ess to identify emerging critical technologies that are not 

21 identified in any list of items controlled for export under 

22 United States law or regulations, but that nonetheless 

23 could be essential for maintaining or increasing the tech24 nological advantage of the United States over countries 

25 that pose a significant threat to the national security of 


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1 the United States with respect to national defense, intel2 ligence, or other areas of national security, or gaining such 

3 an advantage over such countries in areas where such an 

4 advantage may not currently exist. 

5 (b) REQUIREMENTS.—The interagency process re6 quired under subsection (a) shall— 

7 (1) draw upon the expertise, resources, and eq8 uities of all relevant United States Government 

9 agencies, industries, and academic institutions to 

10 identify and describe such emerging critical tech11 nologies; 

12 (2) require the relevant export control authority 

13 to publish proposed regulations for public comment 

14 that would control heretofore unlisted emerging crit15 ical technologies identified pursuant to subsection 

16 (a) and control the release of each such technology 

17 to destinations, end uses, or end users as determined 

18 by the President; 

19 (3) require the Secretary of Commerce, the Sec20 retary of State, and the Secretary of Defense to pro21 pose to the relevant multilateral export control re22 gimes in the following year that such emerging crit23 ical technologies be added to the list of technologies 

24 controlled by such regimes; 


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1 (4) determine whether national security con2 cerns warrant continued unilateral export controls 

3 over technologies identified pursuant to subsection 

4 (a) if the relevant multilateral export control regime 

5 does not agree to list such technologies on its control 

6 list within three years; and 

7 (5) require the agencies responsible for admin8 istering the export controls identified in subsection 

9 (a) to remove or revise, as appropriate, existing con10 trols determined to warrant removal or revision as a 

11 result of insight or information obtained during ef12 forts undertaken to comply with the requirements of 

13 this section. 

14 SEC. 110. PENALTIES. 

15 (a) UNLAWFUL ACTS.— 

16 (1) IN GENERAL.—It shall be unlawful for a 

17 person to violate, attempt to violate, conspire to vio18 late, or cause a violation of this title or of any regu19 lation, order, license, or other authorization issued 

20 under this title, including any of the unlawful acts 

21 described in paragraph (2). 

22 (2) SPECIFIC UNLAWFUL ACTS.—The unlawful 

23 acts described in this paragraph are the following: 

24 (A) No person may engage in any conduct 

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1 gaging in any conduct required by this title, the 

2 Export Administration Regulations, or any 

3 order, license or authorization issued there4 under. 

5 (B) No person may cause or aid, abet, 

6 counsel, command, induce, procure, or approve 

7 the doing of any act prohibited, or the omission 

8 of any act required by this title, the Export Ad9 ministration Regulations, or any order, license 

10 or authorization issued thereunder. 

11 (C) No person may solicit or attempt a vio12 lation of this Act, the Export Administration 

13 Regulations, or any order, license or authoriza14 tion issued thereunder. 

15 (D) No person may conspire or act in con16 cert with one or more other persons in any 

17 manner or for any purpose to bring about or to 

18 do any act that constitutes a violation of this 

19 title, the Export Administration Regulations, or 

20 any order, license or authorization issued there21 under. 

22 (E) No person may order, buy, remove, 

23 conceal, store, use, sell, loan, dispose of, trans24 fer, transport, finance, forward, or otherwise 

25 service, in whole or in part, any item exported 


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1 or to be exported from the United States, or 

2 that is otherwise subject to the Export Admin3 istration Regulations, with knowledge that a 

4 violation of this title, the Export Administration 

5 Regulations, or any order, license or authoriza6 tion issued thereunder, has occurred, is about 

7 to occur, or is intended to occur in connection 

8 with the item unless valid authorization is ob9 tained therefor. 

10 (F) No person may make any false or mis11 leading representation, statement, or certifi12 cation, or falsify or conceal any material fact, 

13 either directly to the Department of Commerce, 

14 or an official of any other United States agen15 cy, or indirectly through any other person— 

16 (i) in the course of an investigation or 

17 other action subject to the Export Admin18 istration Regulations; 

19 (ii) in connection with the prepara20 tion, submission, issuance, use, or mainte21 nance of any export control document or 

22 any report filed or required to be filed pur23 suant to the Export Administration Regu24 lations; or 


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1 (iii) for the purpose of or in connec2 tion with effecting any export, reexport, or 

3 transfer of an item subject to the Export 

4 Administration Regulations or a service or 

5 other activity of a United States person de6 scribed in section 104. 

7 (G) No person may engage in any trans8 action or take any other action with intent to 

9 evade the provisions of this title, the Export 

10 Administration Regulations, or any order, li11 cense, or authorization issued thereunder. 

12 (H) No person may fail or refuse to com13 ply with any reporting or recordkeeping require14 ments of the Export Administration Regula15 tions or of any order, license, or authorization 

16 issued thereunder. 

17 (I) Except as specifically authorized in the 

18 Export Administration Regulations or in writ19 ing by the Department of Commerce, no person 

20 may alter any license, authorization, export con21 trol document, or order issued under the Export 

22 Administration Regulations. 

23 (J) No person may take any action that is 

24 prohibited by a denial order issued by the De25 partment of Commerce to prevent imminent 


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1 violations of this title, the Export Administra2 tion Regulations, or any order, license or au3 thorization issued thereunder. 

4 (3) ADDITIONAL REQUIREMENTS.—For pur5 poses of subparagraph (G), any representation, 

6 statement, or certification made by any person shall 

7 be deemed to be continuing in effect. Each person 

8 who has made a representation, statement, or certifi9 cation to the Department of Commerce relating to 

10 any order, license, or other authorization issued 

11 under this title shall notify the Department of Com12 merce, in writing, of any change of any material fact 

13 or intention from that previously represented, stated, 

14 or certified, immediately upon receipt of any infor15 mation that would lead a reasonably prudent person 

16 to know that a change of material fact or intention 

17 had occurred or may occur in the future. 

18 (b) CRIMINAL PENALTY.— 

19 (1) KNOWING VIOLATIONS.—Except as provided 

20 in paragraph (2), a person who knowingly violates or 

21 conspires or attempts to violate subsection (a) shall 

22 be fined not more than 5 times the amount or value 

23 of the exports, reexports, or transfers involved, or 

24 $500,000, whichever is greater, and, in the case of 


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1 an individual, imprisoned not more than 5 years, or 

2 both. 

3 (2) WILLFUL VIOLATIONS.—A person who will4 fully violates or conspires to or attempts to violate 

5 any provision of subsection (a) shall be fined not 

6 more than 5 times the amount or value of the ex7 ports, reexports, or transfers involved, or 

8 $1,000,000, whichever is greater, and, in the case of 

9 an individual, shall be fined not more than 

10 $250,000, or imprisoned not more than 10 years, or 

11 both. 

12 (c) CIVIL PENALTIES.— 

13 (1) AUTHORITY.—The President may impose 

14 the following civil penalties on a person for each vio15 lation by that person of this title or any regulation, 

16 order, or license issued under this title, for each vio17 lation: 

18 (A) A fine of not more than $250,000 or 

19 an amount that is twice the value of the trans20 action that is the basis of the violation with re21 spect to which the penalty is imposed, which22 ever is greater. 

23 (B) Revocation of a license issued under 

24 this title to the person. 


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1 (C) A prohibition on the person’s ability to 

2 export, reexport, or transfer any items, whether 

3 or not subject to controls under this title. 

4 (2) PROCEDURES.—Any civil penalty under this 

5 subsection may be imposed only after notice and op6 portunity for an agency hearing on the record in ac7 cordance with sections 554 through 557 of title 5, 

8 United States Code. 

9 (3) STANDARDS FOR LEVELS OF CIVIL PEN10 ALTY.—The President may by regulation provide 

11 standards for establishing levels of civil penalty 

12 under this subsection based upon factors such as the 

13 seriousness of the violation, the culpability of the vi14 olator, and such mitigating factors as the violator’s 

15 record of cooperation with the Government in dis16 closing the violation. 

17 (d) CRIMINAL FORFEITURE OF PROPERTY INTEREST

18 AND PROCEEDS.— 

19 (1) FORFEITURE.—Any person who is convicted 

20 under subsection (b) of a violation of a control im21 posed under section 103 (or any regulation, order, 

22 or license issued with respect to such control) shall, 

23 in addition to any other penalty, forfeit to the 

24 United States— 


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1 (A) any of that person’s interest in, secu2 rity of, claim against, or property or contractual 

3 rights of any kind in the tangible items that 

4 were the subject of the violation; 

5 (B) any of that person’s interest in, secu6 rity of, claim against, or property or contractual 

7 rights of any kind in tangible property that was 

8 used in the violation; and 

9 (C) any of that person’s property consti10 tuting, or derived from, any proceeds obtained 

11 directly or indirectly as a result of the violation. 

12 (2) PROCEDURES.—The procedures in any for13 feiture under this subsection, and the duties and au14 thority of the courts of the United States and the 

15 Attorney General with respect to any forfeiture ac16 tion under this subsection or with respect to any 

17 property that may be subject to forfeiture under this 

18 subsection, shall be governed by the provisions of 

19 section 1963 of title 18, United States Code. 

20 (e) PRIOR CONVICTIONS.— 

21 (1) LICENSE BAR.— 

22 (A) IN GENERAL.—The President may— 

23 (i) deny the eligibility of any person 

24 convicted of a criminal violation described 

25 in subparagraph (B) to export, reexport, or 


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1 transfer outside the United States any 

2 item, whether or not subject to controls 

3 under this title, for a period of up to 10 

4 years beginning on the date of the convic5 tion; and 

6 (ii) revoke any license or other author7 ization to export, reexport, or transfer 

8 items that was issued under this title and 

9 in which such person has an interest at the 

10 time of the conviction. 

11 (B) VIOLATIONS.—The violations referred 

12 to in subparagraph (A) are any criminal viola13 tions of, or criminal attempt or conspiracy to 

14 violate— 

15 (i) this title (or any regulation, li16 cense, or order issued under this title); 

17 (ii) any regulation, license, or order 

18 issued under the International Emergency 

19 Economic Powers Act; 

20 (iii) section 793, 794, or 798 of title 

21 18, United States Code; 

22 (iv) section 4(b) of the Internal Secu23 rity Act of 1950 (50 U.S.C. 783(b)); or 

24 (v) section 38 of the Arms Export 

25 Control Act (22 U.S.C. 2778). 


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1 (2) APPLICATION TO OTHER PARTIES.—The 

2 President may exercise the authority under para3 graph (1) with respect to any person related, 

4 through affiliation, ownership, control, or position of 

5 responsibility, to any person convicted of any viola6 tion of law set forth in paragraph (1), upon a show7 ing of such relationship with the convicted party, 

8 and subject to the procedures set forth in subsection 

9 (c)(2). 

10 (f) OTHER AUTHORITIES.—Nothing in subsection 

11 (c), (d), or (e) limits— 

12 (1) the availability of other administrative or 

13 judicial remedies with respect to violations of this 

14 title, or any regulation, order, license or other au15 thorization issued under this title; 

16 (2) the authority to compromise and settle ad17 ministrative proceedings brought with respect to vio18 lations of this title, or any regulation, order, license, 

19 or other authorization issued under this title; or 

20 (3) the authority to compromise, remit or miti21 gate seizures and forfeitures pursuant to section 

22 1(b) of title VI of the Act of June 15, 1917 (22 

23 U.S.C. 401(b)). 


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1 SEC. 111. ENFORCEMENT. 

2 (a) AUTHORITIES.—In order to enforce this title, the 

3 President may— 

4 (1) issue regulations, orders, and guidelines; 

5 (2) require, inspect, and obtain books, records, 

6 and any other information from any person subject 

7 to the provisions of this title; 

8 (3) administer oaths or affirmations and by 

9 subpoena require any person to appear and testify or 

10 to appear and produce books, records, and other 

11 writings, or both; 

12 (4) conduct investigations (including under13 cover) in the United States and in other countries, 

14 including intercepting any wire, oral, and electronic 

15 communications, conducting electronic surveillance, 

16 using pen registers and trap and trace devices, and 

17 carrying out acquisitions, to the extent authorized 

18 under chapters 119, 121, and 206 of title 18, 

19 United States Code, and other applicable laws of the 

20 United States; 

21 (5) inspect, search, detain, seize, or issue tem22 porary denial orders with respect to items, in any 

23 form, that are subject to controls under this title, or 

24 conveyances on which it is believed that there are 

25 items that have been, are being, or are about to be 

26 exported, reexported, or transferred in violation of 


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1 this title, or any regulations, order, license, or other 

2 authorization issued thereunder; 

3 (6) conduct prelicense inspections and post4 shipment verifications; and 

5 (7) execute warrants and make arrests. 

6 (b) ENFORCEMENT OF SUBPOENAS.—In the case of 

7 contumacy by, or refusal to obey a subpoena issued to, 

8 any person under subsection (a)(3), a district court of the 

9 United States, after notice to such person and a hearing, 

10 shall have jurisdiction to issue an order requiring such 

11 person to appear and give testimony or to appear and 

12 produce books, records, and other writings, regardless of 

13 format, that are the subject of the subpoena. Any failure 

14 to obey such order of the court may be punished by such 

15 court as a contempt thereof. 

16 (c) BEST PRACTICE GUIDELINES.— 

17 (1) IN GENERAL.—The President, in consulta18 tion with the Secretary of Commerce and other Fed19 eral officials described in section 105(a), should pub20 lish and update ‘‘best practices’’ guidelines to assist 

21 persons in developing and implementing, on a vol22 untary basis, effective export control programs in 

23 compliance with the regulations issued under this 

24 title. 


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1 (2) EXPORT COMPLIANCE PROGRAM.—The im2 plementation by a person of an effective export com3 pliance program and a high quality overall export 

4 compliance effort by a person should ordinarily be 

5 given weight as mitigating factors in a civil penalty 

6 action against the person under this title. 

7 (d) REFERENCE TO ENFORCEMENT.—For purposes 

8 of this section, a reference to the enforcement of, or a vio9 lation of, this title includes a reference to the enforcement 

10 or a violation of any regulation, order, license or other au11 thorization issued pursuant to this title. 

12 (e) IMMUNITY.—A person shall not be excused from 

13 complying with any requirements under this section be14 cause of the person’s privilege against self-incrimination, 

15 but the immunity provisions of section 6002 of title 18, 

16 United States Code, shall apply with respect to any indi17 vidual who specifically claims such privilege. 

18 (f) CONFIDENTIALITY OF INFORMATION.— 

19 (1) EXEMPTIONS FROM DISCLOSURE.— 

20 (A) IN GENERAL.—Information obtained 

21 under this title may be withheld from disclosure 

22 only to the extent permitted by statute, except 

23 that information described in subparagraph (B) 

24 shall be withheld from public disclosure and 

25 shall not be subject to disclosure under section 


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1 552(b)(3) of title 5, United States Code, unless 

2 the release of such information is determined by 

3 the President to be in the national interest. 

4 (B) INFORMATION DESCRIBED.—Informa5 tion described in this subparagraph is informa6 tion submitted or obtained in connection with 

7 an application for a license or other authoriza8 tion to export, reexport, or transfer items, en9 gage in other activities, a recordkeeping or re10 porting requirement, enforcement activity, or 

11 other operations under this title, including— 

12 (i) the license application, license, or 

13 other authorization itself; 

14 (ii) classification or advisory opinion 

15 requests, and the response thereto; 

16 (iii) license determinations, and infor17 mation pertaining thereto; 

18 (iv) information or evidence obtained 

19 in the course of any investigation; and 

20 (v) information obtained or furnished 

21 in connection with any international agree22 ment, treaty, or other obligation. 

23 (2) INFORMATION TO THE CONGRESS AND

24 GAO.— 


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1 (A) IN GENERAL.—Nothing in this section 

2 shall be construed as authorizing the with3 holding of information from the Congress or 

4 from the Government Accountability Office. 

5 (B) AVAILABILITY TO THE CONGRESS.— 

6 (i) IN GENERAL.—Any information 

7 obtained at any time under any provision 

8 of the Export Administration Act of 1979 

9 (as in effect on the day before the date of 

10 the enactment of this Act and as continued 

11 in effect pursuant to the International 

12 Emergency Economic Powers Act), under 

13 the Export Administration Regulations, or 

14 under this title, including any report or li15 cense application required under any such 

16 provision, shall be made available to a 

17 committee or subcommittee of Congress of 

18 appropriate jurisdiction, upon the request 

19 of the chairman or ranking minority mem20 ber of such committee or subcommittee. 

21 (ii) PROHIBITION ON FURTHER DIS22 CLOSURE.—No such committee or sub23 committee, or member thereof, may dis24 close any information made available under 

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1 tial basis unless the full committee deter2 mines that the withholding of that infor3 mation is contrary to the national interest. 

4 (C) AVAILABILITY TO GAO.— 

5 (i) IN GENERAL.—Information de6 scribed in clause (i) of subparagraph (B) 

7 shall be subject to the limitations con8 tained in section 716 of title 31, United 

9 States Code. 

10 (ii) PROHIBITION ON FURTHER DIS11 CLOSURE.—An officer or employee of the 

12 Government Accountability Office may not 

13 disclose, except to the Congress in accord14 ance with this paragraph, any such infor15 mation that is submitted on a confidential 

16 basis or from which any individual can be 

17 identified. 

18 (3) INFORMATION SHARING.— 

19 (A) IN GENERAL.—Any Federal official de20 scribed in section 105(a) who obtains informa21 tion that is relevant to the enforcement of this 

22 title, including information pertaining to any in23 vestigation, shall furnish such information to 

24 each appropriate department, agency, or office 

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1 tion to the extent consistent with the protection 

2 of intelligence, counterintelligence, and law en3 forcement sources, methods, and activities. 

4 (B) EXCEPTIONS.—The provisions of this 

5 paragraph shall not apply to information sub6 ject to the restrictions set forth in section 9 of 

7 title 13, United States Code, and return infor8 mation, as defined in subsection (b) of section 

9 6103 of the Internal Revenue Code of 1986 (26 

10 U.S.C. 6103(b)), may be disclosed only as au11 thorized by that section. 

12 (C) EXCHANGE OF INFORMATION.—The 

13 President shall ensure that the heads of depart14 ments, agencies, and offices with enforcement 

15 authorities under this title, consistent with pro16 tection of law enforcement and its sources and 

17 methods— 

18 (i) exchange any licensing and en19 forcement information with one another 

20 that is necessary to facilitate enforcement 

21 efforts under this section; and 

22 (ii) consult on a regular basis with 

23 one another and with the head of other de24 partments, agencies, and offices that ob25 tain information subject to this paragraph, 


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1 in order to facilitate the exchange of such 

2 information. 

3 (D) INFORMATION SHARING WITH FED4 ERAL AGENCIES.—Licensing or enforcement in5 formation obtained under this title may be 

6 shared with heads of departments, agencies, 

7 and offices that do not have enforcement au8 thorities under this title on a case-by-case basis 

9 at the discretion of the President. Such infor10 mation may be shared only when the President 

11 makes a determination that the sharing of this 

12 information is in the national interest. 

13 (g) REPORTING REQUIREMENTS.—In the administra14 tion of this section, reporting requirements shall be de15 signed so as to reduce the cost of reporting, recordkeeping, 

16 and documentation to the extent consistent with effective 

17 enforcement and compilation of useful trade statistics. Re18 porting, recordkeeping, and documentation requirements 

19 shall be periodically reviewed and revised in the light of 

20 developments in the field of information technology. 

21 (h) CIVIL FORFEITURE.— 

22 (1) IN GENERAL.—Any tangible items seized 

23 under subsection (a) by designated officers or em24 ployees shall be subject to forfeiture to the United 

25 States in accordance with applicable law, except that 


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1 property seized shall be returned if the property 

2 owner is not found guilty of a civil or criminal viola3 tion under section 109. 

4 (2) PROCEDURES.—Any seizure or forfeiture 

5 under this subsection shall be carried out in accord6 ance with the procedures set forth in section 981 of 

7 title 18, United States Code. 

8 SEC. 112. ADMINISTRATIVE PROCEDURE. 

9 (a) IN GENERAL.—The functions exercised under 

10 this title shall be subject to sections 551, 553 through 

11 559, and 701 through 706 of title 5, United States Code. 

12 (b) AMENDMENTS TO REGULATIONS.—The President 

13 shall notify in advance the Committee on Banking, Hous14 ing, and Urban Affairs of the Senate and the Committee 

15 on Foreign Affairs of the House of Representatives of any 

16 proposed amendments to the Export Administration Regu17 lations with an explanation of the intent and rationale of 

18 such amendments. 

19 SEC. 113. ANNUAL REPORT TO CONGRESS. 

20 (a) IN GENERAL.—The President shall submit to 

21 Congress, by December 31 of each year, a report on the 

22 implementation of this title during the preceding fiscal 

23 year. The report shall include an analysis of— 

24 (1) the effect of controls imposed under this 

25 title on exports, reexports, and transfers of items in 


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1 addressing threats to the national security or foreign 

2 policy of the United States, including a description 

3 of licensing processing times; 

4 (2) the impact of such controls on the scientific 

5 and technological leadership of the United States; 

6 (3) the consistency with such controls of export 

7 controls imposed by other countries; 

8 (4) efforts to provide exporters with compliance 

9 assistance, including specific actions to assist small10 and medium-sized businesses; 

11 (5) a summary of regulatory changes from the 

12 prior fiscal year; 

13 (6) a summary of export enforcement actions, 

14 including of actions taken to implement end-use 

15 monitoring of dual-use, military, and other items 

16 subject to the Export Administration Regulations; 

17 (7) a summary of approved license applications 

18 to proscribed persons; and 

19 (8) efforts undertaken within the previous year 

20 to comply with the requirements of section 109, in21 cluding any ‘‘critical technologies’’ identified under 

22 such section and how or whether such critical tech23 nologies were controlled for export. 


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1 (b) FORM.—The report required under subsection (a) 

2 shall be submitted in unclassified form, but may contain 

3 a classified annex. 

4 SEC. 114. REPEAL. 

5 (a) IN GENERAL.—The Export Administration Act of 

6 1979 (50 U.S.C. App. 2401 et seq.) (as continued in effect 

7 pursuant to the International Emergency Economic Pow8 ers Act) is repealed. 

9 (b) IMPLEMENTATION.—The President shall imple10 ment the amendment made by subsection (a) by exercising 

11 the authorities of the President under the International 

12 Emergency Economic Powers Act (50 U.S.C. 1701 et 

13 seq.). 

14 SEC. 115. EFFECT ON OTHER ACTS. 

15 (a) IN GENERAL.—Except as otherwise provided in 

16 this title, nothing contained in this title shall be construed 

17 to modify, repeal, supersede, or otherwise affect the provi18 sions of any other laws authorizing control over exports, 

19 reexports, or transfers of any item, or activities of United 

20 States persons subject to the Export Administration Reg21 ulations. 

22 (b) COORDINATION OF CONTROLS.— 

23 (1) IN GENERAL.—The authority granted to the 

24 President under this title shall be exercised in such 

25 manner so as to achieve effective coordination with 


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1 all export control and sanctions authorities exercised 

2 by Federal departments and agencies delegated with 

3 authority under this title, particularly the Depart4 ment of State, the Department of the Treasury, and 

5 the Department of Energy. 

6 (2) SENSE OF CONGRESS.—It is the sense of 

7 Congress that in order to achieve effective coordina8 tion described in paragraph (1), such Federal de9 partments and agencies— 

10 (A) should continuously work to create en11 forceable regulations with respect to the export, 

12 reexport, and transfer by United States and 

13 foreign persons of commodities, software, tech14 nology, and services to various end uses and 

15 end users for foreign policy and national secu16 rity reasons; 

17 (B) should regularly work to reduce com18 plexity in the system, including complexity 

19 caused merely by the existence of structural, 

20 definitional, and other non-policy based dif21 ferences between and among different export 

22 control and sanctions systems; and 

23 (C) should coordinate controls on items ex24 ported, reexported, or transferred in connection 

25 with a foreign military sale under chapter 2 of 


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1 the Arms Export Control Act or a commercial 

2 sale under section 38 of the Arms Export Con3 trol Act to reduce as much unnecessary admin4 istrative burden as possible that is a result of 

5 differences between the exercise of those two 

6 authorities. 

7 (c) NONPROLIFERATION CONTROLS.—Nothing in 

8 this title shall be construed to supersede the procedures 

9 published by the President pursuant to section 309(c) of 

10 the Nuclear Non-Proliferation Act of 1978. 

11 SEC. 116. TRANSITION PROVISIONS. 

12 (a) IN GENERAL.—All delegations, rules, regulations, 

13 orders, determinations, licenses, or other forms of admin14 istrative action that have been made, issued, conducted, 

15 or allowed to become effective under the Export Adminis16 tration Act of 1979 (as in effect on the day before the 

17 date of the enactment of this Act and as continued in ef18 fect pursuant to the International Emergency Economic 

19 Powers Act), or the Export Administration Regulations, 

20 and are in effect as of the date of the enactment of this 

21 Act, shall continue in effect according to their terms until 

22 modified, superseded, set aside, or revoked under the au23 thority of this title. 

24 (b) ADMINISTRATIVE AND JUDICIAL PRO25 CEEDINGS.—This title shall not affect any administrative 


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1 or judicial proceedings commenced, or any applications for 

2 licenses made, under the Export Administration Act of 

3 1979 (as in effect on the day before the date of the enact4 ment of this Act and as continued in effect pursuant to 

5 the International Emergency Economic Powers Act), or 

6 the Export Administration Regulations. 

7 (c) CERTAIN DETERMINATIONS AND REFERENCES.— 

8 (1) STATE SPONSORS OF TERRORISM.—Any de9 termination that was made under section 6(j) of the 

10 Export Administration Act of 1979 (as in effect on 

11 the day before the date of the enactment of this Act 

12 and as continued in effect pursuant to the Inter13 national Emergency Economic Powers Act) shall 

14 continue in effect as if the determination had been 

15 made under section 104(c) of this Act. 

16 (2) REFERENCE.—Any reference in any other 

17 provision of law to a country the government of 

18 which the Secretary of State has determined, for 

19 purposes of section 6(j) of the Export Administra20 tion Act of 1979 (as in effect on the day before the 

21 date of the enactment of this Act and as continued 

22 in effect pursuant to the International Emergency 

23 Economic Powers Act), is a government that has re24 peatedly provided support for acts of international 

25 terrorism shall be deemed to refer to a country the 


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1 government of which the Secretary of State has de2 termined, for purposes of section 104(c) of this Act, 

3 is a government that has repeatedly provided sup4 port for acts of international terrorism. 

5 TITLE II—ANTI-BOYCOTT ACT OF 

6 2018 

7 SEC. 201. SHORT TITLE. 

8 This Act may be cited as the ‘‘Anti-Boycott Act of 

9 2018’’. 

10 SEC. 202. STATEMENT OF POLICY. 

11 Congress declares it is the policy of the United 

12 States— 

13 (1) to oppose restrictive trade practices or boy14 cotts fostered or imposed by any foreign country, or 

15 requests to impose restrictive trade practices or boy16 cotts by any foreign country, against other countries 

17 friendly to the United States or against any United 

18 States person; 

19 (2) to encourage and, in specified cases, require 

20 United States persons engaged in the export of 

21 goods or technology or other information to refuse to 

22 take actions, including furnishing information or en23 tering into or implementing agreements, which have 

24 the effect of furthering or supporting the restrictive 

25 trade practices or boycotts fostered or imposed by 


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1 any foreign country, or requests to impose restrictive 

2 trade practices or boycotts by any foreign country 

3 against a country friendly to the United States or 

4 against any United States person; and 

5 (3) to foster international cooperation and the 

6 development of international rules and institutions 

7 to assure reasonable access to world supplies. 

8 SEC. 203. FOREIGN BOYCOTTS. 

9 (a) PROHIBITIONS AND EXCEPTIONS.— 

10 (1) PROHIBITIONS.—For the purpose of imple11 menting the policies set forth in section 202, the 

12 President shall issue regulations prohibiting any 

13 United States person, with respect to that person’s 

14 activities in the interstate or foreign commerce of 

15 the United States, from taking or knowingly agree16 ing to take any of the following actions with intent 

17 to comply with, further, or support any boycott fos18 tered or imposed by any foreign country, or request 

19 to impose any boycott by any foreign country, 

20 against a country which is friendly to the United 

21 States and which is not itself the object of any form 

22 of boycott pursuant to United States law or regula23 tion: 

24 (A) Refusing, or requiring any other per25 son to refuse, to do business with or in the boyVerDate Sep 11 2014 22:46 Feb 22, 2018 Jkt 079200 PO 00000 Frm 00059 Fmt 6652 Sfmt 6201 E:\BILLS\H5040.IH H5040

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1 cotted country, with any business concern orga2 nized under the laws of the boycotted country, 

3 with any national or resident of the boycotted 

4 country, or with any other person, pursuant to 

5 an agreement with, a requirement of, or a re6 quest from or on behalf of the boycotting coun7 try. The mere absence of a business relationship 

8 with or in the boycotted country with any busi9 ness concern organized under the laws of the 

10 boycotted country, with any national or resident 

11 of the boycotted country, or with any other per12 son, does not indicate the existence of the in13 tent required to establish a violation of regula14 tions issued to carry out this subparagraph. 

15 (B) Refusing, or requiring any other per16 son to refuse, to employ or otherwise discrimi17 nating against any United States person on the 

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

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

20 employee of such person. 

21 (C) Furnishing information with respect to 

22 the race, religion, sex, or national origin of any 

23 United States person or of any owner, officer, 

24 director, or employee of such person. 


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1 (D) Furnishing information, or requesting 

2 the furnishing of information, about whether 

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

4 any business relationship (including a relation5 ship by way of sale, purchase, legal or commer6 cial representation, shipping or other transport, 

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

8 boycotted country, with any business concern 

9 organized under the laws of the boycotted coun10 try, with any national or resident of the boy11 cotted country, or with any other person which 

12 is known or believed to be restricted from hav13 ing any business relationship with or in the boy14 cotting country. Nothing in this subparagraph 

15 shall prohibit the furnishing of normal business 

16 information in a commercial context as defined 

17 by the Secretary. 

18 (E) Furnishing information about whether 

19 any person is a member of, has made contribu20 tions to, or is otherwise associated with or in21 volved in the activities of any charitable or fra22 ternal organization which supports the boy23 cotted country. 

24 (F) Paying, honoring, confirming, or other25 wise implementing a letter of credit which conVerDate Sep 11 2014 22:46 Feb 22, 2018 Jkt 079200 PO 00000 Frm 00061 Fmt 6652 Sfmt 6201 E:\BILLS\H5040.IH H5040

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1 tains any condition or requirement compliance 

2 with which is prohibited by regulations issued 

3 pursuant to this paragraph, and no United 

4 States person shall, as a result of the applica5 tion of this paragraph, be obligated to pay or 

6 otherwise honor or implement such letter of 

7 credit. 

8 (2) EXCEPTIONS.—Regulations issued pursuant 

9 to paragraph (1) shall provide exceptions for— 

10 (A) complying or agreeing to comply with 

11 requirements— 

12 (i) prohibiting the import of goods or 

13 services from the boycotted country or 

14 goods produced or services provided by any 

15 business concern organized under the laws 

16 of the boycotted country or by nationals or 

17 residents of the boycotted country; or 

18 (ii) prohibiting the shipment of goods 

19 to the boycotting country on a carrier of 

20 the boycotted country, or by a route other 

21 than that prescribed by the boycotting 

22 country or the recipient of the shipment; 

23 (B) complying or agreeing to comply with 

24 import and shipping document requirements 

25 with respect to the country of origin, the name 


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1 of the carrier and route of shipment, the name 

2 of the supplier of the shipment or the name of 

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

5 response to such requirements may be stated in 

6 negative, blacklisting, or similar exclusionary 

7 terms, other than with respect to carriers or 

8 route of shipment as may be permitted by such 

9 regulations in order to comply with pre10 cautionary requirements protecting against war 

11 risks and confiscation; 

12 (C) complying or agreeing to comply in the 

13 normal course of business with the unilateral 

14 and specific selection by a boycotting country, 

15 or national or resident thereof, of carriers, in16 surers, suppliers of services to be performed 

17 within the boycotting country or specific goods 

18 which, in the normal course of business, are 

19 identifiable by source when imported into the 

20 boycotting country; 

21 (D) complying or agreeing to comply with 

22 export requirements of the boycotting country 

23 relating to shipments or transshipments of ex24 ports to the boycotted country, to any business 

25 concern of or organized under the laws of the 


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1 boycotted country, or to any national or resi2 dent of the boycotted country; 

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

6 with respect to such individual or any member 

7 of such individual’s family or with requests for 

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

10 country; and 

11 (F) compliance by a United States person 

12 resident in a foreign country or agreement by 

13 such person to comply with the laws of that 

14 country with respect to his activities exclusively 

15 therein, and such regulations may contain ex16 ceptions for such resident complying with the 

17 laws or regulations of that foreign country gov18 erning imports into such country of 

19 trademarked, trade named, or similarly specifi20 cally identifiable products, or components of 

21 products for his own use, including the per22 formance of contractual services within that 

23 country, as may be defined by such regulations. 


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1 (3) SPECIAL RULES.—Regulations issued pur2 suant to paragraphs (2)(C) and (2)(F) shall not pro3 vide exceptions from paragraphs (1)(B) and (1)(C). 

4 (4) RULE OF CONSTRUCTION.—Nothing in this 

5 subsection may be construed to supersede or limit 

6 the operation of the antitrust or civil rights laws of 

7 the United States. 

8 (5) APPLICATION.—This section shall apply to 

9 any transaction or activity undertaken, by or 

10 through a United States person or any other person, 

11 with intent to evade the provisions of this section as 

12 implemented by the regulations issued pursuant to 

13 this subsection, and such regulations shall expressly 

14 provide that the exceptions set forth in paragraph 

15 (2) shall not permit activities or agreements (ex16 pressed or implied by a course of conduct, including 

17 a pattern of responses) otherwise prohibited, which 

18 are not within the intent of such exceptions. 

19 (b) FOREIGN POLICY CONTROLS.— 

20 (1) IN GENERAL.—In addition to the regula21 tions issued pursuant to subsection (a), regulations 

22 issued under title I of this Act to carry out the poli23 cies set forth in section 102(1)(D) shall implement 

24 the policies set forth in this section. 


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1 (2) REQUIREMENTS.—Such regulations shall 

2 require that any United States person receiving a re3 quest for the furnishing of information, the entering 

4 into or implementing of agreements, or the taking of 

5 any other action referred to in subsection (a) shall 

6 report that fact to the Secretary, together with such 

7 other information concerning such request as the 

8 Secretary may require for such action as the Sec9 retary considers appropriate for carrying out the 

10 policies of that section. Such person shall also report 

11 to the Secretary whether such person intends to 

12 comply and whether such person has complied with 

13 such request. Any report filed pursuant to this para14 graph shall be made available promptly for public in15 spection and copying, except that information re16 garding the quantity, description, and value of any 

17 goods or technology to which such report relates 

18 may be kept confidential if the Secretary determines 

19 that disclosure thereof would place the United States 

20 person involved at a competitive disadvantage. The 

21 Secretary shall periodically transmit summaries of 

22 the information contained in such reports to the Sec23 retary of State for such action as the Secretary of 

24 State, in consultation with the Secretary, considers 


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1 appropriate for carrying out the policies set forth in 

2 section 202. 

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

4 the regulations issued pursuant thereto shall preempt any 

5 law, rule, or regulation of any of the several States or the 

6 District of Columbia, or any of the territories or posses7 sions of the United States, or of any governmental subdivi8 sion thereof, which law, rule, or regulation pertains to par9 ticipation in, compliance with, implementation of, or the 

10 furnishing of information regarding restrictive trade prac11 tices or boycotts fostered or imposed by foreign countries, 

12 or requests to impose restrictive trade practices or boy13 cotts by any foreign country, against other countries 

14 friendly to the United States. 

15 SEC. 204. ENFORCEMENT. 

16 (a) CIVIL PENALTIES.—The President may impose 

17 the following civil penalties on a person who violates sec18 tion 203 or any regulation issued under this title: 

19 (1) A fine of not more than $250,000 or an 

20 amount that is twice the amount of the transaction 

21 that is the basis of the violation with respect to 

22 which the penalty is imposed. 

23 (2) Revocation of a license issued under title I 

24 to the person. 


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1 (3) A prohibition on the person’s ability to ex2 port, reexport, or transfer any items, whether or not 

3 subject to controls under this title. 

4 (b) PROCEDURES.—Any civil penalty under this sec5 tion may be imposed only after notice and opportunity for 

6 an agency hearing on the record in accordance with sec7 tions 554 through 557 of title 5, United States Code, and 

8 shall be subject to judicial review in accordance with chap9 ter 7 of such title. 

10 (c) STANDARDS FOR LEVELS OF CIVIL PENALTY.— 

11 The President may by regulation provide standards for es12 tablishing levels of civil penalty under this section based 

13 upon factors such as the seriousness of the violation, the 

14 culpability of the violator, and the violator’s record of co15 operation with the Government in disclosing the violation. 

16 TITLE III—SANCTIONS REGARD17 ING MISSILE PROLIFERATION 

18 AND CHEMICAL AND BIO19 LOGICAL WEAPONS PRO20 LIFERATION 

21 SEC. 301. MISSILE PROLIFERATION CONTROL VIOLATIONS. 

22 (a) VIOLATIONS BY UNITED STATES PERSONS.— 

23 (1) SANCTIONS.— 

24 (A) SANCTIONABLE ACTIVITY.—The Presi25 dent shall impose the applicable sanctions deVerDate Sep 11 2014 22:46 Feb 22, 2018 Jkt 079200 PO 00000 Frm 00068 Fmt 6652 Sfmt 6201 E:\BILLS\H5040.IH H5040

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1 scribed in subparagraph (B) if the President 

2 determines that a United States person know3 ingly— 

4 (i) exports, reexports, or transfers of 

5 any item on the MTCR Annex, in violation 

6 of the provisions of section 38 (22 U.S.C. 

7 2778) or chapter 7 of the Arms Export 

8 Control Act, title I of this Act, or any reg9 ulations or orders issued under any such 

10 provisions; or 

11 (ii) conspires to or attempts to engage 

12 in such export, reexport, or transfer. 

13 (B) SANCTIONS.—The sanctions that apply 

14 to a United States person under subparagraph 

15 (A) are the following: 

16 (i) If the item on the MTCR Annex 

17 involved in the export, reexport, or transfer 

18 is missile equipment or technology within 

19 category II of the MTCR Annex, then the 

20 President shall deny to such United States 

21 person, for a period of 2 years, licenses for 

22 the transfer of missile equipment or tech23 nology controlled under title I. 

24 (ii) If the item on the MTCR Annex 

25 involved in the export, reexport, or transfer 


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1 is missile equipment or technology within 

2 category I of the MTCR Annex, then the 

3 President shall deny to such United States 

4 person, for a period of not less than 2 

5 years, all licenses for items the transfer of 

6 which is controlled under title I. 

7 (2) DISCRETIONARY SANCTIONS.—In the case 

8 of any determination referred to in paragraph (1), 

9 the President may pursue any other appropriate 

10 penalties under section 109 of this Act. 

11 (3) WAIVER.—The President may waive the im12 position of sanctions under paragraph (1) on a per13 son with respect to a product or service if the Presi14 dent certifies to the Congress that— 

15 (A) the product or service is essential to 

16 the national security of the United States; and 

17 (B) such person is a sole source supplier of 

18 the product or service, the product or service is 

19 not available from any alternative reliable sup20 plier, and the need for the product or service 

21 cannot be met in a timely manner by improved 

22 manufacturing processes or technological devel23 opments. 

24 (b) TRANSFERS OF MISSILE EQUIPMENT OR TECH25 NOLOGY BY FOREIGN PERSONS.— 


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1 (1) SANCTIONS.— 

2 (A) SANCTIONABLE ACTIVITY.—Subject to 

3 paragraphs (3) through (7), the President shall 

4 impose the applicable sanctions under subpara5 graph (B) on a foreign person if the Presi6 dent— 

7 (i) determines that a foreign person 

8 knowingly— 

9 (I) exports, reexports, or trans10 fers any MTCR equipment or tech11 nology that contributes to the design, 

12 development, or production of missiles 

13 in a country that is not an MTCR ad14 herent and would be, if it were United 

15 States-origin equipment or technology, 

16 subject to the jurisdiction of the 

17 United States under title I; 

18 (II) conspires to or attempts to 

19 engage in such export, reexport, or 

20 transfer; or 

21 (III) facilitates such export, reex22 port, or transfer by any other person; 

23 or 


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1 (ii) has made a determination with re2 spect to the foreign person under section 

3 73(a) of the Arms Export Control Act. 

4 (B) SANCTIONS.—The sanctions that apply 

5 to a foreign person under subparagraph (A) are 

6 the following: 

7 (i) If the item involved in the export, 

8 reexport, or transfer is within category II 

9 of the MTCR Annex, then the President 

10 shall deny, for a period of 2 years, licenses 

11 for the transfer to such foreign person of 

12 missile equipment or technology the trans13 fer of which is controlled under title I. 

14 (ii) If the item involved in the export, 

15 reexport, or transfer is within category I of 

16 the MTCR Annex, then the President shall 

17 deny, for a period of not less than 2 years, 

18 licenses for the transfer to such foreign 

19 person of items the transfer of which is 

20 controlled under title I. 

21 (2) INAPPLICABILITY WITH RESPECT TO MTCR 

22 ADHERENTS.—Paragraph (1) does not apply with 

23 respect to— 

24 (A) any export, reexport, or transfer that 

25 is authorized by the laws of an MTCR adherVerDate Sep 11 2014 22:46 Feb 22, 2018 Jkt 079200 PO 00000 Frm 00072 Fmt 6652 Sfmt 6201 E:\BILLS\H5040.IH H5040

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1 ent, if such authorization is not obtained by 

2 misrepresentation or fraud; or 

3 (B) any export, reexport, or transfer of an 

4 item to an end user in a country that is an 

5 MTCR adherent. 

6 (3) EFFECT OF ENFORCEMENT ACTIONS BY

7 MTCR ADHERENTS.—Sanctions set forth in para8 graph (1) may not be imposed under this subsection 

9 on a person with respect to acts described in such 

10 paragraph or, if such sanctions are in effect against 

11 a person on account of such acts, such sanctions 

12 shall be terminated, if an MTCR adherent is taking 

13 judicial or other enforcement action against that 

14 person with respect to such acts, or that person has 

15 been found by the government of an MTCR adher16 ent to be innocent of wrongdoing with respect to 

17 such acts. 

18 (4) WAIVER AND REPORT TO CONGRESS.— 

19 (A) WAIVER AUTHORITY.—The President 

20 may waive the application of paragraph (1) to 

21 a foreign person if the President determines 

22 that such waiver is essential to the national se23 curity of the United States. 

24 (B) NOTIFICATION AND REPORT TO CON25 GRESS.—In the event that the President decides 


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1 to apply the waiver described in subparagraph 

2 (A), the President shall so notify the appro3 priate congressional committees not less than 

4 20 working days before issuing the waiver. 

5 Such notification shall include a report fully ar6 ticulating the rationale and circumstances 

7 which led the President to apply the waiver. 

8 (5) ADDITIONAL WAIVER.—The President may 

9 waive the imposition of sanctions under paragraph 

10 (1) on a person with respect to a product or service 

11 if the President certifies to the appropriate congres12 sional committees that— 

13 (A) the product or service is essential to 

14 the national security of the United States; and 

15 (B) such person is a sole source supplier of 

16 the product or service, the product or service is 

17 not available from any alternative reliable sup18 plier, and the need for the product or service 

19 cannot be met in a timely manner by improved 

20 manufacturing processes or technological devel21 opments. 

22 (6) EXCEPTIONS.—The President shall not 

23 apply the sanction under this subsection prohibiting 

24 the importation of the products of a foreign per25 son— 


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1 (A) in the case of procurement of defense 

2 articles or defense services— 

3 (i) under existing contracts or sub4 contracts, including the exercise of options 

5 for production quantities to satisfy require6 ments essential to the national security of 

7 the United States; 

8 (ii) if the President determines that 

9 the person to which the sanctions would be 

10 applied is a sole source supplier of the de11 fense articles or defense services, that the 

12 defense articles or defense services are es13 sential to the national security of the 

14 United States, and that alternative sources 

15 are not readily or reasonably available; or 

16 (iii) if the President determines that 

17 such articles or services are essential to the 

18 national security of the United States 

19 under defense coproduction agreements or 

20 NATO Programs of Cooperation; 

21 (B) to products or services provided under 

22 contracts entered into before the date on which 

23 the President publishes his intention to impose 

24 the sanctions; or 

25 (C) to— 


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1 (i) spare parts; 

2 (ii) component parts, but not finished 

3 products, essential to United States prod4 ucts or production; 

5 (iii) routine services and maintenance 

6 of products, to the extent that alternative 

7 sources are not readily or reasonably avail8 able; or 

9 (iv) information and technology essen10 tial to United States products or produc11 tion. 

12 (c) DEFINITIONS.—In this section: 

13 (1) APPROPRIATE CONGRESSIONAL COMMIT14 TEES.—The term ‘‘appropriate congressional com15 mittees’’ means— 

16 (A) the Committee on Foreign Affairs of 

17 the House of Representatives; and 

18 (B) the Committee on Foreign Relations 

19 and the Committee on Banking, Housing, and 

20 Urban Affairs of the Senate. 

21 (2) DEFENSE ARTICLES; DEFENSE SERVICES.— 

22 The terms ‘‘defense articles’’ and ‘‘defense services’’ 

23 mean those items on the United States Munitions 

24 List as defined in section 47(7) of the Arms Export 

25 Control Act (22 U.S.C. 2794 note). 


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1 (3) MISSILE.—The term ‘‘missile’’ means a cat2 egory I system as defined in the MTCR Annex. 

3 (4) MISSILE TECHNOLOGY CONTROL REGIME; 

4 MTCR.—The term ‘‘Missile Technology Control Re5 gime’’ or ‘‘MTCR’’ means the policy statement, be6 tween the United States, the United Kingdom, the 

7 Federal Republic of Germany, France, Italy, Can8 ada, and Japan, announced on April 16, 1987, to re9 strict sensitive missile-relevant transfers based on 

10 the MTCR Annex, and any amendments thereto. 

11 (5) MTCR ADHERENT.—The term ‘‘MTCR ad12 herent’’ means a country that participates in the 

13 MTCR or that, pursuant to an international under14 standing to which the United States is a party, con15 trols MTCR equipment or technology in accordance 

16 with the criteria and standards set forth in the 

17 MTCR. 

18 (6) MTCR ANNEX.—The term ‘‘MTCR Annex’’ 

19 means the Guidelines and Equipment and Tech20 nology Annex of the MTCR, and any amendments 

21 thereto. 

22 (7) MISSILE EQUIPMENT OR TECHNOLOGY; 

23 MTCR EQUIPMENT OR TECHNOLOGY.—The terms 

24 ‘‘missile equipment or technology’’ and ‘‘MTCR 


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1 equipment or technology’’ mean those items listed in 

2 category I or category II of the MTCR Annex. 

3 SEC. 302. CHEMICAL AND BIOLOGICAL WEAPONS PRO4 LIFERATION SANCTIONS. 

5 (a) IMPOSITION OF SANCTIONS.— 

6 (1) DETERMINATION BY THE PRESIDENT.—Ex7 cept as provided in subsection (b)(2), the President 

8 shall impose the sanction described in subsection (c) 

9 if the President determines that a foreign person has 

10 knowingly and materially contributed— 

11 (A) through the export from the United 

12 States of any item that is subject to the juris13 diction of the United States under this title; or 

14 (B) through the export from any other 

15 country of any item that would be, if they were 

16 United States goods or technology, subject to 

17 the jurisdiction of the United States under this 

18 title, 

19 to the efforts by any foreign country, project, or en20 tity described in paragraph (2) to use, develop, 

21 produce, stockpile, or otherwise acquire chemical or 

22 biological weapons. 

23 (2) COUNTRIES, PROJECTS, OR ENTITIES RE24 CEIVING ASSISTANCE.—Paragraph (1) applies in the 

25 case of— 


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1 (A) any foreign country that the President 

2 determines has, at any time after January 1, 

3 1980— 

4 (i) used chemical or biological weap5 ons in violation of international law; 

6 (ii) used lethal chemical or biological 

7 weapons against its own nationals; or 

8 (iii) made substantial preparations to 

9 engage in the activities described in clause 

10 (i) or (ii); 

11 (B) any foreign country whose government 

12 is determined for purposes of section 104(c) of 

13 this Act to be a government that has repeatedly 

14 provided support for acts of international ter15 rorism; or 

16 (C) any other foreign country, project, or 

17 entity designated by the President for purposes 

18 of this section. 

19 (3) PERSONS AGAINST WHICH SANCTIONS ARE

20 TO BE IMPOSED.—A sanction shall be imposed pur21 suant to paragraph (1) on— 

22 (A) the foreign person with respect to 

23 which the President makes the determination 

24 described in that paragraph; 


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1 (B) any successor entity to that foreign 

2 person; and 

3 (C) any foreign person that is a parent, 

4 subsidiary, or affiliate of that foreign person if 

5 that parent, subsidiary, or affiliate knowingly 

6 assisted in the activities which were the basis of 

7 that determination. 

8 (b) CONSULTATIONS WITH AND ACTIONS BY FOR9 EIGN GOVERNMENT OF JURISDICTION.— 

10 (1) CONSULTATIONS.—If the President makes 

11 the determinations described in subsection (a)(1) 

12 with respect to a foreign person, the Congress urges 

13 the President to initiate consultations immediately 

14 with the government with primary jurisdiction over 

15 that foreign person with respect to the imposition of 

16 a sanction pursuant to this section. 

17 (2) ACTIONS BY GOVERNMENT OF JURISDIC18 TION.—In order to pursue such consultations with 

19 that government, the President may delay imposition 

20 of a sanction pursuant to this section for a period 

21 of up to 90 days. Following such consultations, the 

22 President shall impose the sanction unless the Presi23 dent determines and certifies to the appropriate con24 gressional committees that the Government has 

25 taken specific and effective actions, including approVerDate Sep 11 2014 22:46 Feb 22, 2018 Jkt 079200 PO 00000 Frm 00080 Fmt 6652 Sfmt 6201 E:\BILLS\H5040.IH H5040

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1 priate penalties, to terminate the involvement of the 

2 foreign person in the activities described in sub3 section (a)(1). The President may delay imposition 

4 of the sanction for an additional period of up to 90 

5 days if the President determines and certifies to the 

6 Congress that the government is in the process of 

7 taking the actions described in the preceding sen8 tence. 

9 (3) REPORT TO CONGRESS.—The President 

10 shall report to the appropriate congressional commit11 tees, not later than 90 days after making a deter12 mination under subsection (a)(1), on the status of 

13 consultations with the appropriate government under 

14 this subsection, and the basis for any determination 

15 under paragraph (2) of this subsection that such 

16 government has taken specific corrective actions. 

17 (c) SANCTION.— 

18 (1) DESCRIPTION OF SANCTION.—The sanction 

19 to be imposed pursuant to subsection (a)(1) is, ex20 cept as provided that the United States Government 

21 shall not procure, or enter into any contract for the 

22 procurement of, any goods or services from any per23 son described in subsection (a)(3). 


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1 (2) EXCEPTIONS.—The President shall not be 

2 required to apply or maintain a sanction under this 

3 section— 

4 (A) in the case of procurement of defense 

5 articles or defense services— 

6 (i) under existing contracts or sub7 contracts, including the exercise of options 

8 for production quantities to satisfy United 

9 States operational military requirements; 

10 (ii) if the President determines that 

11 the person or other entity to which the 

12 sanctions would otherwise be applied is a 

13 sole source supplier of the defense articles 

14 or defense services, that the defense arti15 cles or defense services are essential, and 

16 that alternative sources are not readily or 

17 reasonably available; or 

18 (iii) if the President determines that 

19 such articles or services are essential to the 

20 national security under defense coproduc21 tion agreements; 

22 (B) to products or services provided under 

23 contracts entered into before the date on which 

24 the President publishes his intention to impose 

25 sanctions; 


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1 (C) to— 

2 (i) spare parts; 

3 (ii) component parts, but not finished 

4 products, essential to United States prod5 ucts or production; or 

6 (iii) routine servicing and mainte7 nance of products, to the extent that alter8 native sources are not readily or reason9 ably available; 

10 (D) to information and technology essen11 tial to United States products or production; or 

12 (E) to medical or other humanitarian 

13 items. 

14 (d) TERMINATION OF SANCTIONS.—A sanction im15 posed pursuant to this section shall apply for a period of 

16 at least 12 months following the imposition of one sanction 

17 and shall cease to apply thereafter only if the President 

18 determines and certifies to the appropriate congressional 

19 committees that reliable information indicates that the 

20 foreign person with respect to which the determination 

21 was made under subsection (a)(1) has ceased to aid or 

22 abet any foreign government, project, or entity in its ef23 forts to acquire chemical or biological weapons capability 

24 as described in that subsection. 

25 (e) WAIVER.— 


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1 (1) CRITERION FOR WAIVER.—The President 

2 may waive the application of any sanction imposed 

3 on any person pursuant to this section, after the end 

4 of the 12-month period beginning on the date on 

5 which that sanction was imposed on that person, if 

6 the President determines and certifies to the appro7 priate congressional committees that such waiver is 

8 important to the national security interests of the 

9 United States. 

10 (2) NOTIFICATION OF AND REPORT TO CON11 GRESS.—If the President decides to exercise the 

12 waiver authority provided in paragraph (1), the 

13 President shall so notify the appropriate congres14 sional committees not less than 20 days before the 

15 waiver takes effect. Such notification shall include a 

16 report fully articulating the rationale and cir17 cumstances which led the President to exercise the 

18 waiver authority. 

19 (f) DEFINITIONS.—In this section: 

20 (1) APPROPRIATE CONGRESSIONAL COMMIT21 TEES.—The term ‘‘appropriate congressional com22 mittees’’ means— 

23 (A) the Committee on Foreign Affairs of 

24 the House of Representatives; and 


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1 (B) the Committee on Foreign Relations 

2 and the Committee on Banking, Housing, and 

3 Urban Affairs of the Senate. 

4 (2) DEFENSE ARTICLES; DEFENSE SERVICES.— 

5 The terms ‘‘defense articles’’ and ‘‘defense services’’ 

6 mean those items on the United States Munitions 

7 List or are otherwise controlled under the Arms Ex8 port Control Act. 

Æ 


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