I 

112TH CONGRESS 

1ST SESSION H. R. 2004 

To authorize the President to control the transfer of goods, services, technology, and software to protect the national security, and to promote 

the foreign policy, of the United States, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 26, 2011 

Mr. BERMAN 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 transfer of goods, 

services, technology, and software 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 ‘‘Technology Security and Antiboycott Act’’. 

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

7 this Act is as follows: 


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Sec. 1. Short title; table of contents. 

Sec. 2. Definitions. 

TITLE I—TECHNOLOGY SECURITY 

Sec. 101. Short title. 

Sec. 102. Statement of policy. 

Sec. 103. Authority of the President. 

Sec. 104. Additional authorities. 

Sec. 105. Transfer Policy Committee. 

Sec. 106. Control lists. 

Sec. 107. Licensing. 

Sec. 108. Compliance assistance. 

Sec. 109. Penalties. 

Sec. 110. Enforcement. 

Sec. 111. Administrative procedure. 

Sec. 112. Annual report to Congress. 

Sec. 113. Repeal. 

Sec. 114. Effect on other Acts. 

Sec. 115. Transition provisions. 

TITLE II—ANTIBOYCOTT PROVISIONS 

Sec. 201. Short title. 

Sec. 202. Policy. 

Sec. 203. 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. 

1 SEC. 2. DEFINITIONS. 

2 In this Act: 

3 (1) CONTROLLED.—Items are ‘‘controlled’’ if 

4 the transfer of the items is controlled under title I. 

5 (2) CRITICAL INFRASTRUCTURE.—The term 

6 ‘‘critical infrastructure’’— 

7 (A) means systems and assets, whether 

8 physical or virtual, so vital to the United States 

9 that the incapacity or destruction of such sys10 tems and assets would have a debilitating im11 pact on national security, national economic seVerDate Mar 15 2010 01:48 Jun 02, 2011 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2004.IH H2004

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1 curity, national public health or safety, or any 

2 combination of thereof; 

3 (B) may be publicly or privately owned; 

4 and 

5 (C) includes gas and oil production, stor6 age, or delivery systems, water supply systems, 

7 telecommunications networks, electrical power 

8 generation or delivery systems, financing and 

9 banking systems, emergency services (including 

10 medical, police, fire, and rescue services), trans11 portation systems and services (including high12 ways, mass transit, airlines, and airports), and 

13 food and agriculture delivery systems. 

14 (3) DOMESTIC DEFENSE INDUSTRIAL BASE.— 

15 The term ‘‘domestic defense industrial base’’ has the 

16 meaning given that term in section 702 of the De17 fense Production Act of 1950 (50 U.S.C. App. 

18 2152). 

19 (4) DUAL-USE.—The term ‘‘dual-use’’ means 

20 capable of being applied for both civilian uses and 

21 uses that threaten the national security and foreign 

22 policy of the United States through military action, 

23 terrorist attack, or cyber attack. 

24 (5) EXPORT ADMINISTRATION REGULATIONS.— 

25 The term ‘‘Export Administration Regulations’’ 


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1 means the Export Administration Regulations as 

2 promulgated, maintained, and amended under the 

3 authority of the International Emergency Economic 

4 Powers Act and codified, as of the date of the enact5 ment of this Act, in subchapter C of chapter VII of 

6 title 15, Code of Federal Regulations. 

7 (6) FOREIGN PERSON.—The term ‘‘foreign per8 son’’ means a person other than a United States 

9 person. 

10 (7) GOOD.—The term ‘‘good’’ means any arti11 cle, natural or manmade substance, material, supply, 

12 or manufactured product. 

13 (8) ITEM.—The term ‘‘item’’ means any goods, 

14 technology, software, and services. 

15 (9) PERSON.—The term ‘‘person’’ includes the 

16 singular and the plural and any individual, partner17 ship, corporation, or other form of association, in18 cluding any government or agency thereof. 

19 (10) TECHNOLOGY.—The term ‘‘technology’’ 

20 means the information and knowhow (whether in 

21 tangible form, such as models, prototypes, drawings, 

22 sketches, diagrams, blueprints, or manuals, or in in23 tangible form, such as training or technical services) 

24 that can be used to design, produce, manufacture, 


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1 utilize, or reconstruct goods, including computer 

2 software and technical data. 

3 (11) TRANSFER.—The term ‘‘transfer’’ in4 cludes— 

5 (A) an export of an item from the United 

6 States or a transshipment of an item through 

7 the United States, the provision of services 

8 from the United States, and the transmission of 

9 technology from the United States; 

10 (B) the transfer of an item to a person 

11 within the United States with the knowledge or 

12 intent that the item will be exported or trans13 mitted from the United States to an unauthor14 ized recipient under this title; and 

15 (C) a reexport of an item of United States 

16 origin, whether or not by a person subject to 

17 the jurisdiction of the United States. 

18 (12) UNITED STATES.—The term ‘‘United 

19 States’’— 

20 (A) means the several States, the District 

21 of Columbia, and any commonwealth, territory, 

22 or possession of the United States; and 

23 (B) includes the outer Continental Shelf, 

24 as defined in section 2(a) of the Outer Conti25 nental Shelf Lands Act (43 U.S.C. 1331(a)). 


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1 (13) UNITED STATES PERSON.—The term 

2 ‘‘United States person’’ means— 

3 (A) any individual who is a United States 

4 citizen or an alien lawfully admitted for perma5 nent residence to the United States; 

6 (B) any business or other entity operating 

7 in the United States or organized under the 

8 laws of the United States; and 

9 (C) any business or other entity that is or10 ganized under the laws of a foreign country but 

11 is controlled in fact by a business or entity de12 scribed in subparagraph (B), as determined 

13 under regulations of the President. 

14 (14) WEAPONS OF MASS DESTRUCTION.—The 

15 term ‘‘weapons of mass destruction’’ has the means 

16 nuclear, radiological, chemical, and biological weap17 ons and delivery systems for such weapons. 

18 TITLE I—TECHNOLOGY 

19 SECURITY 

20 SEC. 101. SHORT TITLE. 

21 This title may be cited as the ‘‘Technology Security 

22 Act’’. 

23 SEC. 102. STATEMENT OF POLICY. 

24 The following is the policy of the United States: 


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1 (1) The national security and foreign policy of 

2 the United States require that the transfer of items 

3 be controlled for the following purposes: 

4 (A) To prevent the access to such items for 

5 use in— 

6 (i) the proliferation of weapons of 

7 mass destruction or of advanced conven8 tional weapons; 

9 (ii) the acquisition of destabilizing 

10 numbers or types of conventional weapons; 

11 (iii) acts of terrorism; 

12 (iv) military programs that could pose 

13 a threat to the security of the United 

14 States or its allies; or 

15 (v) activities undertaken specifically to 

16 cause significant interference with or dis17 ruption of critical infrastructure. 

18 (B) To preserve the qualitative military su19 periority of the United States. 

20 (C) To maintain the ability of the United 

21 States to collect information and intelligence in 

22 order to protect the national security of the 

23 United States. 

24 (D) To sustain the domestic defense indus25 trial base. 


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1 (E) To protect the supply in the United 

2 States of critical raw materials and manufac3 tured items. 

4 (F) To carry out the foreign policy of the 

5 United States, including the protection of 

6 human rights and the promotion of democracy. 

7 (G) To carry out obligations and commit8 ments under international agreements and ar9 rangements, including multilateral export con10 trol regimes. 

11 (2) The national security of the United States 

12 requires that the United States maintain its leader13 ship in the science, technology, and manufacturing 

14 sectors. Such leadership requires that United States 

15 persons are competitive in global markets. The im16 pact of the implementation of this title on such lead17 ership and competitiveness must be evaluated on an 

18 ongoing basis and applied in imposing controls 

19 under sections 103 and 104 to avoid negatively af20 fecting such leadership. 

21 (3) The national security and foreign policy of 

22 the United States require that the United States 

23 participate in multilateral organizations and agree24 ments regarding export controls on items that are 

25 consistent with the policy of the United States, and 


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1 take all the necessary steps to secure the adoption 

2 and enforcement, by the governments of other coun3 tries, of export controls on items that are consistent 

4 with such policy. 

5 (4) The authority under this title may be exer6 cised only in furtherance of all the objectives set 

7 forth in paragraphs (1), (2), and (3). 

8 SEC. 103. AUTHORITY OF THE PRESIDENT. 

9 (a) AUTHORITY.— 

10 (1) IN GENERAL.—In order to carry out the 

11 policy set forth in paragraphs (1), (2), and (3) of 

12 section 102, the President shall control the transfer 

13 of items by United States persons, wherever located, 

14 and by foreign persons who are subject to the juris15 diction of the United States. 

16 (2) POWERS.—In carrying out paragraph (1), 

17 the President may investigate, regulate, direct and 

18 compel, nullify, void, prevent, or prohibit any acqui19 sition, holding, withholding, use, transfer, with20 drawal, transportation, exportation, reexportation of, 

21 or dealing in, or exercising any right, power, or 

22 privilege with respect to, or transactions involving, 

23 items in which any foreign country or a national 

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1 spect to any property, subject to the jurisdiction of 

2 the United States. 

3 (b) REQUIREMENTS.—In exercising authority under 

4 this title, the President shall impose controls to achieve 

5 the following objectives: 

6 (1) To prevent the transfer of items subject to 

7 the controls that would pose a risk to the national 

8 security or foreign policy of the United States in any 

9 manner described under section 102(1)(A). 

10 (2) To secure the cooperation of other govern11 ments and multilateral organizations to impose con12 trol systems that are consistent, to the extent pos13 sible, with the controls imposed under subsection 

14 (a). 

15 (3) To maintain the leadership of the United 

16 States in science, engineering, technology research 

17 and development, and manufacturing. 

18 (4) To sustain the viability of commercial firms, 

19 academic institutions, and research establishments, 

20 and maintain the skilled workforce of such firms, in21 stitutions, and establishments, that are necessary to 

22 preserving the leadership of the United States de23 scribed in paragraph (3). 


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1 (5) To sustain the domestic defense industrial 

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

4 (6) To enforce the controls through regulations, 

5 requirements for compliance, lists of controlled 

6 items, lists of foreign persons who threaten the na7 tional security or foreign policy of the United States, 

8 and guidance in a form that facilitates compliance 

9 by United States persons, in particular academic in10 stitutions, scientific and research establishments, 

11 and small- and medium-sized businesses. 

12 SEC. 104. ADDITIONAL AUTHORITIES. 

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

14 President shall— 

15 (1) establish and maintain lists of items that 

16 are subject to controls under this title by reason of 

17 the dual-use technology, capability, performance, or 

18 characteristics of the items and that are controlled 

19 under section 103(a); 

20 (2) establish and maintain lists of foreign per21 sons and end-uses that are determined to be a threat 

22 to the national security and foreign policy of the 

23 United States pursuant to the policy set forth in sec24 tion 102(1)(A) and to whom transfers of items are 

25 controlled; 


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1 (3) prohibit unauthorized transfers of controlled 

2 items; 

3 (4) prohibit transfers of any controlled items to 

4 any foreign person or end-use listed under para5 graph (2); 

6 (5) require licenses for transfers of controlled 

7 items, including imposing conditions or restrictions 

8 on United States persons and foreign persons with 

9 respect to such licenses; 

10 (6) require measures for compliance; 

11 (7) require and obtain such information from 

12 United States persons and foreign persons as is nec13 essary to carry out this title; 

14 (8) require advance notice before an item is 

15 transferred, as an alternative to requiring a license; 

16 (9) require, to the extent feasible, identification 

17 of items subject to controls under this title in order 

18 to facilitate the enforcement of such controls; 

19 (10) inspect, search, detain, or seize outgoing 

20 items, in any form, that are subject to controls 

21 under this title, or conveyances on which it is be22 lieved that there are items that have been, are being, 

23 or are about to be exported in violation of this title; 

24 (11) monitor shipments, or other means of 

25 transfer; 


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1 (12) keep the public fully apprised of changes 

2 in policy, regulations, and procedures established 

3 under this title; 

4 (13) appoint technical advisory committees in 

5 accordance with the Federal Advisory Committee 

6 Act; and 

7 (14) undertake any other action as is necessary 

8 to carry out this title and is not otherwise prohibited 

9 by law. 

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

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

12 this title the transfer of any item that may not be regu13 lated or prohibited under paragraph (1), (2), or (4) of sec14 tion 203(b) of the International Emergency Economic 

15 Powers Act (50 U.S.C. 1702(b) (1), (2), and (4)). 

16 (c) COUNTRIES SUPPORTING INTERNATIONAL TER17 RORISM.— 

18 (1) LICENSE REQUIREMENT.—A license shall be 

19 required for the transfer of items to a country if the 

20 President has made the following determinations: 

21 (A) The government of such country has 

22 repeatedly provided support for acts of inter23 national terrorism. 

24 (B) The transfer of such items could make 

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1 tial of such country, including its military logis2 tics capability, or could enhance the ability of 

3 such country to support acts of international 

4 terrorism. 

5 (2) NOTIFICATION TO CONGRESS.—The Presi6 dent shall notify the Committee on Foreign Affairs 

7 of the House of Representatives and the Committee 

8 on Banking, Housing, and Urban Affairs and the 

9 Committee on Foreign Relations of the Senate at 

10 least 30 days before issuing any license required by 

11 paragraph (1). 

12 (3) PUBLICATION IN FEDERAL REGISTER.— 

13 Each determination of the President under para14 graph (1)(A) shall be published in the Federal Reg15 ister. 

16 (4) RESCISSION OF DETERMINATION.—A deter17 mination of the President under paragraph (1)(A) 

18 may not be rescinded unless the President submits 

19 to the Speaker of the House of Representatives and 

20 the chairman of the Committee on Banking, Hous21 ing, and Urban Affairs and the chairman of the 

22 Committee on Foreign Relations of the Senate— 

23 (A) before the proposed rescission would 

24 take effect, a report certifying that— 


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1 (i) there has been a fundamental 

2 change in the leadership and policies of the 

3 government of the country concerned; 

4 (ii) that government is not supporting 

5 acts of international terrorism; and 

6 (iii) that government has provided as7 surances that it will not support acts of 

8 international terrorism in the future; or 

9 (B) at least 45 days before the proposed 

10 rescission would take effect, a report justifying 

11 the rescission and certifying that— 

12 (i) the government concerned has not 

13 provided any support for international ter14 rorism during the preceding 6-month pe15 riod; and 

16 (ii) the government concerned has 

17 provided assurances that it will not sup18 port acts of international terrorism in the 

19 future. 

20 (5) USE OF TERRITORY AS SANCTUARY FOR

21 TERRORISTS.— 

22 (A) IN GENERAL.—As used in paragraph 

23 (1), the term ‘‘repeatedly provided support for 

24 acts of international terrorism’’ shall include 

25 the recurring use of any part of the territory of 


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1 the country as a sanctuary for terrorists or ter2 rorist organizations. 

3 (B) DEFINITIONS.—In this paragraph— 

4 (i) the term ‘‘territory of a country’’ 

5 means the land, waters, and airspace of 

6 the country; and 

7 (ii) the term ‘‘sanctuary’’ means an 

8 area in the territory of a country— 

9 (I) that is used by a terrorist or 

10 terrorist organization— 

11 (aa) to carry out terrorist 

12 activities, including training, fi13 nancing, and recruitment; or 

14 (bb) as a transit point; and 

15 (II) the government of which ex16 pressly consents to, or with knowl17 edge, allows, tolerates, or disregards 

18 such use of its territory. 

19 (6) CONTENTS OF NOTIFICATION OF LI20 CENSE.—The President shall include in the notifica21 tion required by paragraph (2)— 

22 (A) a detailed description of the items to 

23 be offered, including a brief description of the 

24 capabilities of any article for which a license to 

25 transfer the items is sought; 


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1 (B) the reasons why the foreign country or 

2 international organization to which the transfer 

3 is proposed to be made needs the items that are 

4 the subject of such transfer, and a description 

5 of the manner in which such country or organi6 zation intends to use such items; 

7 (C) the reasons why the proposed transfer 

8 is in the national interest of the United States; 

9 (D) an analysis of the impact of the pro10 posed transfer on the military capabilities of the 

11 foreign country or international organization to 

12 which such transfer would be made; 

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

14 proposed transfer would affect the relative mili15 tary strengths of countries in the region to 

16 which the items that are the subject of such 

17 transfer would be delivered and whether other 

18 countries in the region have comparable kinds 

19 and amounts of items; and 

20 (F) an analysis of the impact of the pro21 posed transfer on the relations of the United 

22 States with the countries in the region to which 

23 the items that are the subject of such transfer 

24 would be delivered. 


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1 SEC. 105. TRANSFER POLICY COMMITTEE. 

2 (a) ESTABLISHMENT.—The President may establish 

3 a Transfer Policy Committee (in this section referred to 

4 as the ‘‘Committee’’), composed of senior officials of Fed5 eral departments, agencies, and offices to which the Presi6 dent delegates authority under this title, as the President 

7 considers appropriate, to carry out the purposes set forth 

8 in subsection (b). 

9 (b) PURPOSES.— 

10 (1) IN GENERAL.—The purposes of the Com11 mittee are— 

12 (A) to advise the President with respect 

13 to— 

14 (i) identifying specific threats to the 

15 national security and foreign policy that 

16 the authority of this title may be used to 

17 address; and 

18 (ii) exercising the authority under this 

19 title to implement policies, regulations, 

20 procedures, and actions that are necessary 

21 to effectively counteract those threats; 

22 (B) pursuant to a delegation of authority 

23 by the President, to review and approve— 

24 (i) criteria for including items on, and 

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1 trolled items, and information established 

2 under this title; 

3 (ii) an interagency procedure for com4 piling and amending any list described in 

5 clause (i); 

6 (iii) criteria for including a person on 

7 a list of persons to whom transfers of 

8 items are prohibited or restricted under 

9 this title; 

10 (iv) standards for compliance by per11 sons subject to this title; and 

12 (v) policies and procedures for moni13 toring transfers of items controlled under 

14 this title; 

15 (C) to receive information and advice from 

16 any United States Government official regard17 ing any matter with respect to which the Com18 mittee has responsibilities; and 

19 (D) to obtain an independent evaluation on 

20 a periodic basis of the effectiveness of the im21 plementation of this title in carrying out the 

22 policy set forth in section 102. 

23 (2) AUTHORITY TO SEEK INFORMATION.—The 

24 Committee may, in carrying out its functions, seek 


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1 information and advice from experts who are not of2 ficers or employees of the Federal Government. 

3 (3) TRANSMITTAL AND IMPLEMENTATION OF

4 EVALUATIONS.—The results of the independent eval5 uations conducted pursuant to paragraph (1)(D) 

6 shall be transmitted to the President and the Con7 gress, in classified form if necessary. Subject to the 

8 delegation of authority by the President, the Com9 mittee shall determine, direct, and ensure that im10 provements recommended in the evaluations are im11 plemented. 

12 SEC. 106. CONTROL LISTS. 

13 The President shall, through the Technology Trans14 fer Policy Committee, to the maximum extent possible, en15 sure that— 

16 (1) a process is established for regular review of 

17 each list established under section 104(a)(1) and 

18 that such lists are updated periodically to ensure 

19 that new items are adequately controlled, and that 

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

21 as conditions change; 

22 (2) information and expertise is obtained from 

23 persons from relevant Federal departments, agen24 cies, and offices and persons outside the Government 

25 who have technical expertise, with respect to the 


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1 characteristics of the items considered for each list 

2 established under section 104(a)(1) and the effect of 

3 controlling the items on addressing the policy set 

4 forth in section 102; 

5 (3) the control lists established under section 

6 104(a)(1) identify each entry that has been included 

7 by virtue of the participation of the United States in 

8 a multilateral regime, organization, or group the 

9 purpose of which is consistent with and supports the 

10 policy of the United States under this title relating 

11 to the control of transfers of items; and 

12 (4) each such list is published in a form that 

13 facilitates compliance with it, in particular by small 

14 and medium-sized businesses and academic institu15 tions. 

16 SEC. 107. LICENSING. 

17 The President shall, through the Technology Trans18 fer Policy Committee, establish a procedure for licensing 

19 the transfer of items controlled under this title in order 

20 to carry out the policy set forth in section 102 and the 

21 requirements set forth in section 103(b). The procedure 

22 shall, to the maximum extent possible, ensure that— 

23 (1) license applications are considered and deci24 sions made with the participation of departments, 


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1 agencies, and offices that have delegated functions 

2 under this title; and 

3 (2) licensing decisions are made in an expedi4 tious manner, with transparency to applicants on the 

5 status of license processing and the reason for deny6 ing any license. 

7 SEC. 108. COMPLIANCE ASSISTANCE. 

8 (a) SYSTEM FOR SEEKING ASSISTANCE.—The Presi9 dent may establish a system to provide United States per10 sons with assistance in complying with this title, which 

11 may include a mechanism for providing information, in 

12 classified form as appropriate, on foreign persons who are 

13 potential customers, suppliers, or business partners with 

14 respect to items controlled under this title, in order to fur15 ther ensure the prevention of the transfer of items that 

16 may pose a threat to the national security or foreign policy 

17 of the United States. 

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

19 subsection (a), the President may issue appropriate secu20 rity clearances to persons described in paragraph (1) who 

21 are responsible for complying with this title. 

22 SEC. 109. PENALTIES. 

23 (a) UNLAWFUL ACTS.—It shall be unlawful for a per24 son to violate, attempt to violate, conspire to violate, or 


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1 cause a violation of this title or of any regulation, order, 

2 or license issued under this title. 

3 (b) CRIMINAL PENALTY.—A person who commits, at4 tempts to commit, or conspires to commit, or aids or abets 

5 in the commission of, an unlawful act described in sub6 section (a), with knowledge or intent that the items that 

7 are the subject of the violation would be transferred to 

8 a person who is not authorized under this title to receive 

9 the items, or would be applied for a use described in sec10 tion 102(1)(A), shall, upon conviction, be fined not more 

11 than $1,000,000, or, if a natural person, be imprisoned 

12 for not more than 20 years, or both. 

13 (c) CIVIL PENALTIES.— 

14 (1) AUTHORITY.—The President may impose 

15 the following civil penalties on a person for each vio16 lation by that person of this title or any regulation, 

17 order, or license issued under this title, for each vio18 lation: 

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

20 an amount that is twice the amount of the 

21 transaction that is the basis of the violation 

22 with respect to which the penalty is imposed, 

23 whichever is greater. 

24 (B) Revocation of a license issued under 

25 this title to the person. 


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

2 transfer outside the United States any items, 

3 whether or not subject to controls under this 

4 title. 

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

6 subsection may be imposed only after notice and op7 portunity for an agency hearing on the record in ac8 cordance with sections 554 through 557 of title 5, 

9 United States Code, and shall be subject to judicial 

10 review in accordance with chapter 7 of such title. 

11 (3) STANDARDS FOR LEVELS OF CIVIL PEN12 ALTY.—The President may by regulation provide 

13 standards for establishing levels of civil penalty 

14 under this subsection based upon the seriousness of 

15 the violation, the culpability of the violator, and the 

16 violator’s record of cooperation with the Government 

17 in disclosing the violation. 

18 (d) CRIMINAL FORFEITURE OF PROPERTY INTEREST

19 AND PROCEEDS.— 

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

21 under subsection (b) of a violation of a control im22 posed under section 103 (or any regulation, order, 

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

24 in addition to any other penalty, forfeit to the 

25 United States— 


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1 (A) any of that person’s interest in, 

2 security of, claim against, or property or 

3 contractual rights of any kind in the tan4 gible items that were the subject of the vio5 lation; 

6 (B) any of that person’s interest in, 

7 security of, claim against, or property or 

8 contractual rights of any kind in tangible 

9 property that was used in the violation; 

10 and 

11 (C) any of that person’s property con12 stituting, or derived from, any proceeds ob13 tained directly or indirectly as a result of 

14 the violation. 

15 (2) PROCEDURES.—The procedures in any 

16 forfeiture under this subsection, and the duties 

17 and authority of the courts of the United States 

18 and the Attorney General with respect to any 

19 forfeiture action under this subsection or with 

20 respect to any property that may be subject to 

21 forfeiture under this subsection, shall be gov22 erned by the provisions of section 1963 of title 

23 18, United States Code. 

24 (e) PRIOR CONVICTIONS.— 

25 (1) LICENSE BAR.— 


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1 (A) IN GENERAL.—The President may— 

2 (i) deny the eligibility of any person 

3 convicted of a criminal violation described 

4 in subparagraph (B) to transfer outside 

5 the United States any item, whether or not 

6 subject to controls under this title, for a 

7 period of up to 10 years beginning on the 

8 date of the conviction; and 

9 (ii) revoke any license to transfer 

10 items that was issued under this title and 

11 in which such person has an interest at the 

12 time of the conviction. 

13 (B) VIOLATIONS.—The violations referred 

14 to in subparagraph (A) are any criminal viola15 tion of— 

16 (i) this title (or any regulation, li17 cense, or order issued under this title); 

18 (ii) any regulation, license, or order 

19 issued under the International Emergency 

20 Economic Powers Act; 

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

22 18, United States Code; 

23 (iv) section 4(b) of the Internal Secu24 rity Act of 1950 (50 U.S.C. 783(b)); or 


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1 (v) section 38 of the Arms Export 

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

3 (2) APPLICATION TO OTHER PARTIES.—The 

4 President may exercise the authority under para5 graph (1) with respect to any person related, 

6 through affiliation, ownership, control, or position of 

7 responsibility, to any person convicted of any viola8 tion of law set forth in paragraph (1), upon a show9 ing of such relationship with the convicted party, 

10 and subject to the procedures set forth in subsection 

11 (c)(2). 

12 (f) OTHER AUTHORITIES.—Nothing in subsection 

13 (c), (d), or (e) limits— 

14 (1) the availability of other administrative or 

15 judicial remedies with respect to violations of this 

16 title, or any regulation, order, or license issued 

17 under this title; 

18 (2) the authority to compromise and settle ad19 ministrative proceedings brought with respect to vio20 lations of this title, or any regulation, order, or li21 cense issued under this title; or 

22 (3) the authority to compromise, remit or miti23 gate seizures and forfeitures pursuant to section 

24 1(b) of title VI of the Act of June 15, 1917 (22 

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


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1 SEC. 110. 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, or seize items, in 

22 any form, that are subject to controls under this 

23 title, or conveyances on which it is believed that 

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

25 about to be exported in violation of this title; 


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1 (6) conduct prelicense inspections and post2 shipment verifications; and 

3 (7) execute warrants and make arrests. 

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

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

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

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

8 shall have jurisdiction to issue an order requiring such 

9 person to appear and give testimony or to appear and 

10 produce books, records, and other writings, or both, that 

11 are the subject of the subpoena. Any failure to obey such 

12 order of the court may be punished by such court as a 

13 contempt thereof. 

14 (c) BEST PRACTICES GUIDELINES.— 

15 (1) IN GENERAL.—The President, in consulta16 tion with the Interagency Transfer Policy Committee 

17 established under section 105, should publish and 

18 update ‘‘best practices’’ guidelines to assist persons 

19 in developing and implementing, on a voluntary 

20 basis, effective export control programs in compli21 ance with the regulations issued under this title. 

22 (2) EXPORT COMPLIANCE PROGRAM.—The im23 plementation by a person of an effective export com24 pliance program and a high quality overall export 

25 compliance effort by a person should ordinarily be 


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1 given weight as mitigating factors in a civil penalty 

2 action against the person under this title. 

3 (d) REFERENCE TO ENFORCEMENT.—For purposes 

4 of this section, a reference to the enforcement of, or a vio5 lation of, this title includes a reference to the enforcement 

6 or a violation of any order or license issued pursuant to 

7 this title. 

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

9 complying with any requirements under this section be10 cause of the person’s privilege against self-incrimination, 

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

12 United States Code, shall apply with respect to any indi13 vidual who specifically claims such privilege. 

14 (f) CONFIDENTIALITY OF INFORMATION.— 

15 (1) EXEMPTIONS FROM DISCLOSURE.— 

16 (A) IN GENERAL.—Information obtained 

17 under this title may be withheld from disclosure 

18 only to the extent permitted by statute, except 

19 that information described in subparagraph (B) 

20 shall be withheld from public disclosure and 

21 shall not be subject to disclosure under section 

22 552(b)(3) of title 5, United States Code, unless 

23 the release of such information is determined by 

24 the President to be in the national interest. 


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1 (B) INFORMATION DESCRIBED.—Informa2 tion described in this subparagraph is informa3 tion submitted or obtained in connection with 

4 an application for a license to transfer items, 

5 other transfer authorization (or recordkeeping 

6 or reporting requirement), enforcement activity, 

7 or other operations under this title, including— 

8 (i) the license application, license or 

9 other transfer authorization itself, 

10 (ii) classification requests, 

11 (iii) information or evidence obtained 

12 in the course of any investigation, and 

13 (iv) information obtained or furnished 

14 in connection with any international agree15 ment, treaty, or other obligation. 

16 (2) INFORMATION TO THE CONGRESS AND

17 GAO.— 

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

19 shall be construed as authorizing the with20 holding of information from the Congress or 

21 from the Government Accountability Office. 

22 (B) AVAILABILITY TO THE CONGRESS.— 

23 (i) IN GENERAL.—Any information 

24 obtained at any time under any provision 

25 of the Export Administration Act of 1979 


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1 (including such Act as continued in effect 

2 pursuant to the International Emergency 

3 Economic Powers Act), under previous 

4 Acts regarding the control of exports, 

5 under the Export Administration Regula6 tions, or under this title, including any re7 port or license application required under 

8 any such provision, shall be made available 

9 to a committee or subcommittee of Con10 gress of appropriate jurisdiction, upon the 

11 request of the chairman or ranking minor12 ity member of such committee or sub13 committee. 

14 (ii) PROHIBITION ON FURTHER DIS15 CLOSURE.—No such committee or sub16 committee, or member thereof, may dis17 close any information obtained under the 

18 Export Administration Act of 1979 (in19 cluding such Act as continued in effect 

20 pursuant to the International Emergency 

21 Economic Powers Act), under previous 

22 Acts regarding the control of exports, 

23 under the Export Administration Regula24 tions, or under this title, that is submitted 

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1 mittee determines that the withholding of 

2 that information is contrary to the national 

3 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 department, agen20 cy, or office that obtains information that is rel21 evant to the enforcement of this title, including 

22 information pertaining to any investigation, 

23 shall furnish such information to each depart24 ment, agency, or office with enforcement re25 sponsibilities under this section to the extent 


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1 consistent with the protection of intelligence, 

2 counterintelligence, and law enforcement 

3 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 continuing 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 so de15 signed as to reduce the cost of reporting, recordkeeping, 

16 and export documentation required under this section, to 

17 the extent feasible consistent with effective enforcement 

18 and compilation of useful trade statistics. Reporting, rec19 ordkeeping, and export documentation requirements shall 

20 be periodically reviewed and revised in the light of develop21 ments in the field of information technology. 

22 (h) CIVIL FORFEITURE.— 

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

24 under subsection (a) by designated officers or em25 ployees shall be subject to forfeiture to the United 


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1 States in accordance with applicable law, except that 

2 property seized shall be returned if the property 

3 owner is not found guilty of a civil or criminal viola4 tion under section 109. 

5 (2) PROCEDURES.—Any seizure or forfeiture 

6 under this subsection shall be carried in accordance 

7 with the procedures set forth in section 981 of title 

8 18, United States Code. 

9 SEC. 111. ADMINISTRATIVE PROCEDURE. 

10 The functions exercised under this title shall be sub11 ject to sections 551, 553 through 559, and 701 through 

12 706 of title 5, United States Code. 

13 SEC. 112. ANNUAL REPORT TO CONGRESS. 

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

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

16 implementation of this title during the preceding fiscal 

17 year. The report shall also include an analysis of— 

18 (1) the effect of controls imposed under this 

19 title on transfers of items in addressing threats to 

20 the national security or foreign policy of the United 

21 States; 

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

23 and technological leadership of the United States; 

24 and 


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1 (3) the consistency with such controls of export 

2 controls imposed by other countries. 

3 (b) SUBMISSION IN CLASSIFIED.—The report under 

4 subsection (a) may be submitted in classified form, in 

5 whole or in part, if necessary. 

6 SEC. 113. REPEAL. 

7 The Export Administration Act of 1979 (50 U.S.C. 

8 App. 2401 et seq.) is repealed. 

9 SEC. 114. EFFECT ON OTHER ACTS. 

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

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

12 to modify, repeal, supersede, or otherwise affect the provi13 sions of any other laws authorizing control over exports 

14 of any commodity. 

15 (b) COORDINATION OF CONTROLS.—The authority 

16 granted to the President under this title shall be exercised 

17 in such manner as to achieve effective coordination with 

18 the authority exercised under section 38 of the Arms Ex19 port Control Act (22 U.S.C. 2778). 

20 (c) CIVIL AIRCRAFT EQUIPMENT.— 

21 (1) IN GENERAL.—Notwithstanding any other 

22 provision of law, any product described in paragraph 

23 (2) shall be subject to export controls exclusively 

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1 ject to controls under section 38(b)(2) of the Arms 

2 Export Control Act. 

3 (2) PRODUCTS DESCRIBED.—A product de4 scribed in this paragraph is a product that— 

5 (A) is standard equipment certified by the 

6 Federal Aviation Administration, in civil air7 craft and is an integral part of such aircraft; 

8 and 

9 (B) is to be transferred to a country other 

10 than a country to which transfers of items are 

11 controlled under this title. 

12 (d) NONPROLIFERATION CONTROLS.—Nothing in 

13 this title shall be construed to supersede the procedures 

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

15 the Nuclear Non-Proliferation Act of 1978. 

16 SEC. 115. TRANSITION PROVISIONS. 

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

18 orders, determinations, licenses, or other forms of admin19 istrative action which have been made, issued, conducted, 

20 or allowed to become effective under the Export Adminis21 tration Act of 1979 and are in effect at the time this title 

22 takes effect, shall continue in effect according to their 

23 terms until modified, superseded, set aside, or revoked 

24 under this title. 


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1 (b) ADMINISTRATIVE AND JUDICIAL PRO2 CEEDINGS.—This title shall not affect any administrative 

3 or judicial proceedings commenced or any application for 

4 a license made, under the Export Administration Act of 

5 1979, that is pending at the time this title takes effect. 

6 Any such proceedings, and any action on such application, 

7 shall continue under the Export Administration Act of 

8 1979 as if that Act had not been repealed. 

9 (c) CERTAIN DETERMINATIONS AND REFERENCES.— 

10 (1) STATE SPONSORS OF TERRORISM.—Any de11 termination that was made under section 6(j) of the 

12 Export Administration Act of 1979, and is in effect 

13 on the day before the effective date of this title, 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, is a government that has repeat21 edly provided support for acts of international ter22 rorism shall be deemed to refer to a country the gov23 ernment of which the President has determined, for 

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1 ment that has repeatedly provided support for acts 

2 of international terrorism. 

3 TITLE II—ANTIBOYCOTT 

4 PROVISIONS 

5 SEC. 201. SHORT TITLE. 

6 This title may be cited as the ‘‘Antiboycott Act’’. 

7 SEC. 202. POLICY. 

8 (a) IN GENERAL.—It is the policy of the United 

9 States— 

10 (1) to oppose restrictive trade practices or boy11 cotts fostered or imposed by foreign countries 

12 against other countries friendly to the United States 

13 or against any United States person; 

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

15 United States persons engaged in the export of 

16 goods or technology or other information to refuse to 

17 take actions, including furnishing information or en18 tering into or implementing agreements, which have 

19 the effect of furthering or supporting the restrictive 

20 trade practices or boycotts fostered or imposed by 

21 any foreign country against a country friendly to the 

22 United States or against any United States person; 

23 and 


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1 (3) to foster international cooperation and the 

2 development of international rules and institutions 

3 to assure reasonable access to world supplies. 

4 (b) PROHIBITIONS AND EXCEPTIONS.— 

5 (1) PROHIBITIONS.—In order to carry out the 

6 purposes set forth in subsection (a), the President 

7 shall issue regulations prohibiting any United States 

8 person, with respect to that person’s activities in the 

9 interstate or foreign commerce of the United States, 

10 from taking or knowingly agreeing to take any of 

11 the following actions with intent to comply with, fur12 ther, or support any boycott fostered or imposed by 

13 a foreign country against a country that is friendly 

14 to the United States and is not itself the object of 

15 any form of boycott pursuant to United States law 

16 or regulation: 

17 (A) Refusing, or requiring any other per18 son to refuse, to do business with or in the boy19 cotted country, with any business concern orga20 nized under the laws of the boycotted country, 

21 with any national or resident of the boycotted 

22 country, or with any other person, pursuant to 

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1 quired to be associated with such an act in 

2 order to constitute a violation of the prohibition 

3 is not indicated solely by the mere absence of 

4 a business relationship with or in the boycotted 

5 country, with any business concern organized 

6 under the laws of the boycotted country, with 

7 any national or resident of the boycotted coun8 try, or with any other person). 

9 (B) Refusing, or requiring any other per10 son to refuse, to employ or otherwise discrimi11 nate against any United States person on the 

12 basis of the race, religion, sex, or national ori13 gin of that person or of any owner, officer, di14 rector, or employee of such person. 

15 (C) Furnishing information with respect to 

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

17 United States person or of any owner, officer, 

18 director, or employee of such person. 

19 (D) Furnishing information (other than 

20 furnishing normal business information in a 

21 commercial context, as defined by the Sec22 retary) about whether any person has, has had, 

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1 ping or other transport, insurance, investment, 

2 or supply) with or in the boycotted country, 

3 with any business concern organized under the 

4 laws of the boycotted country, with any national 

5 or resident of the boycotted country, or with 

6 any other person that is known or believed to 

7 be restricted from having any business relation8 ship with or in the boycotting country. 

9 (E) Furnishing information about whether 

10 any person is a member of, has made a con11 tribution to, or is otherwise associated with or 

12 involved in the activities of any charitable or 

13 fraternal organization which supports the boy14 cotted country. 

15 (F) Paying, honoring, confirming, or other16 wise implementing a letter of credit which con17 tains any condition or requirement the compli18 ance with which is prohibited by regulations 

19 issued pursuant to this paragraph, and no 

20 United States person shall, as a result of the 

21 application of this paragraph, be obligated to 

22 pay or otherwise honor or implement such letter 

23 of credit. 

24 (2) EXCEPTIONS.—Regulations issued pursuant 

25 to paragraph (1) shall provide exceptions for— 


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1 (A) compliance, or agreement to comply, 

2 with requirements— 

3 (i) prohibiting the import of items 

4 from the boycotted country or items pro5 duced or provided, by any business concern 

6 organized under the laws of the boycotted 

7 country or by nationals or residents of the 

8 boycotted country; or 

9 (ii) prohibiting the shipment of items 

10 to the boycotting country on a carrier of 

11 the boycotted country or by a route other 

12 than that prescribed by the boycotting 

13 country or the recipient of the shipment; 

14 (B) compliance, or agreement to comply, 

15 with import and shipping document require16 ments with respect to the country of origin, the 

17 name of the carrier and route of shipment, the 

18 name of the supplier of the shipment, or the 

19 name of the provider of other services, except 

20 that, for purposes of applying any exception 

21 under this subparagraph, no information know22 ingly furnished or conveyed in response to such 

23 requirements may be stated in negative, black24 listing, or similar exclusionary terms, other 

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1 ment as may be permitted by such regulations 

2 in order to comply with precautionary require3 ments protecting against war risks and confis4 cation; 

5 (C) compliance, or agreement to comply, in 

6 the normal course of business with the unilat7 eral and specific selection by a boycotting coun8 try, or a national or resident thereof, of car9 riers, insurers, suppliers of services to be per10 formed within the boycotting country, or spe11 cific items which, in the normal course of busi12 ness, are identifiable by source when imported 

13 into the boycotting country; 

14 (D) compliance, or agreement to comply, 

15 with export requirements of the boycotting 

16 country relating to shipment or transshipment 

17 of exports to the boycotted country, to any busi18 ness concern of or organized under the laws of 

19 the boycotted country, or to any national or 

20 resident of the boycotted country; 

21 (E) compliance by an individual, or agree22 ment by an individual to comply, with the immi23 gration or passport requirements of any country 

24 with respect to such individual or any member 

25 of such individual’s family or with requests for 


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1 information regarding requirements of employ2 ment of such individual within the boycotting 

3 country; and 

4 (F) compliance by a United States person 

5 resident in a foreign country, or agreement by 

6 such a person to comply, with the laws of the 

7 country with respect to the person’s activities 

8 exclusively therein, and such regulations may 

9 contain exceptions for such resident complying 

10 with the laws or regulations of the foreign coun11 try governing imports into such country of 

12 trademarked, trade-named, or similarly specifi13 cally identifiable products, or components of 

14 products for such person’s own use, including 

15 the performance of contractual services within 

16 that country. 

17 (3) LIMITATION ON EXCEPTIONS.—Regulations 

18 issued pursuant to paragraphs (2)(C) and (2)(F) 

19 shall not provide exceptions from paragraphs (1)(B) 

20 and (1)(C). 

21 (4) ANTITRUST AND CIVIL RIGHTS LAWS NOT

22 AFFECTED.—Nothing in this subsection may be con23 strued to supersede or limit the operation of the 

24 antitrust or civil rights laws of the United States. 


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1 (5) EVASION.—This section applies to any 

2 transaction or activity undertaken by or through a 

3 United States person or any other person with in4 tent to evade the provisions of this section or the 

5 regulations issued pursuant to this subsection. The 

6 regulations issued pursuant to this section shall ex7 pressly provide that the exceptions set forth in para8 graph (2) do not permit activities or agreements (ex9 pressed or implied by a course of conduct, including 

10 a pattern of responses) otherwise prohibited, which 

11 are not within the intent of such exceptions. 

12 (c) FOREIGN POLICY CONTROLS.—In addition to the 

13 regulations issued pursuant to subsection (b), regulations 

14 issued under title I to carry out the policy set forth in 

15 section 102(3) shall implement the policies set forth in 

16 section. 

17 (d) REPORTS.—Regulations issued under this section 

18 shall require that any United States person receiving a 

19 request to furnish information, enter into or implement 

20 an agreement, or take any other action referred to in sub21 section (a) shall report that request to the Secretary of 

22 Commerce, together with any other information con23 cerning the request that the Secretary determines appro24 priate. The person shall also submit to the Secretary of 

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1 tends to comply, and whether the person has complied, 

2 with the request. Any report filed pursuant to this sub3 section shall be made available promptly for public inspec4 tion and copying, except that information regarding the 

5 quantity, description, and value of any item to which such 

6 report relates may be kept confidential if the Secretary 

7 of Commerce determines that disclosure of that informa8 tion would place the United States person involved at a 

9 competitive disadvantage. The Secretary of Commerce 

10 shall periodically transmit summaries of the information 

11 contained in the reports to the Secretary of State for such 

12 action as the Secretary of State, in consultation with the 

13 Secretary of Commerce, considers appropriate to carry out 

14 the purposes set forth in subsection (a). 

15 (e) PREEMPTION.—The provisions of this section and 

16 the regulations issued under this section shall preempt any 

17 law, rule, or regulation that— 

18 (1) is a law, rule, or regulation of any of the 

19 several States or the District of Columbia, or any of 

20 the territories or possessions of the United States, 

21 or of any governmental subdivision thereof; and 

22 (2) pertains to participation in, compliance 

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1 cotts fostered or imposed by foreign countries 

2 against other countries. 

3 SEC. 203. ENFORCEMENT. 

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

5 the following civil penalties on a person who violates sec6 tion 202 or any regulation issued under this section: 

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

8 amount that is twice the amount of the transaction 

9 that is the basis of the violation with respect to 

10 which the penalty is imposed. 

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

12 to the person. 

13 (3) A prohibition of the person’s right and abil14 ity to export or otherwise transfer outside the 

15 United States any good, service, or information, 

16 whether or not subject to controls under this Act. 

17 (b) PROCEDURES.—Any civil penalty under this sec18 tion may be imposed only after notice and opportunity for 

19 an agency hearing on the record in accordance with sec20 tions 554 through 557 of title 5, United States Code, and 

21 shall be subject to judicial review in accordance with chap22 ter 7 of such title. 

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

24 The President may by regulation provide standards for es25 tablishing levels of civil penalty under this section based 


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1 upon the seriousness of the violation, the culpability of the 

2 violator, and the violator’s record of cooperation with the 

3 Government in disclosing the violation. 

4 TITLE III—SANCTIONS REGARD5 ING MISSILE PROLIFERATION 

6 AND CHEMICAL AND BIO7 LOGICAL WEAPONS PRO8 LIFERATION 

9 SEC. 301. MISSILE PROLIFERATION CONTROL VIOLATIONS. 

10 (a) VIOLATIONS BY UNITED STATES PERSONS.— 

11 (1) SANCTIONS.— 

12 (A) SANCTIONABLE ACTIVITY.—The Presi13 dent shall impose the applicable sanctions de14 scribed in subparagraph (B) if the President 

15 determines that a United States person know16 ingly— 

17 (i) exports, transfers, or otherwise en18 gages in the trade of any item on the 

19 MTCR Annex, in violation of the provi20 sions of section 38 (22 U.S.C. 2778) or 

21 chapter 7 of the Arms Export Control Act, 

22 title I of this Act, or any regulations or or23 ders issued under any such provisions, 

24 (ii) conspires to or attempts to engage 

25 in such export, transfer, or trade, or 


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1 (iii) facilitates such export, transfer, 

2 or trade by any other person. 

3 (B) SANCTIONS.—The sanctions that apply 

4 to a United States person under subparagraph 

5 (A) are the following: 

6 (i) If the item on the MTCR Annex 

7 involved in the export, transfer, or trade is 

8 missile equipment or technology within cat9 egory II of the MTCR Annex, then the 

10 President shall deny to such United States 

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

12 the transfer of missile equipment or tech13 nology controlled under title I. 

14 (ii) If the item on the MTCR Annex 

15 involved in the export, transfer, or trade is 

16 missile equipment or technology within cat17 egory I of the MTCR Annex, then the 

18 President shall deny to such United States 

19 person, for a period of not less than 2 

20 years, all licenses for items the transfer of 

21 which is controlled under title I. 

22 (2) DISCRETIONARY SANCTIONS.—In the case 

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

24 the President may pursue any other appropriate 

25 penalties under section 109 of this Act. 


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1 (3) WAIVER.—The President may waive the im2 position of sanctions under paragraph (1) on a per3 son with respect to a product or service if the Presi4 dent certifies to the Congress that— 

5 (A) the product or service is essential to 

6 the national security of the United States; and 

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

8 the product or service, the product or service is 

9 not available from any alternative reliable sup10 plier, and the need for the product or service 

11 cannot be met in a timely manner by improved 

12 manufacturing processes or technological devel13 opments. 

14 (b) TRANSFERS OF MISSILE EQUIPMENT OR TECH15 NOLOGY BY FOREIGN PERSONS.— 

16 (1) SANCTIONS.— 

17 (A) SANCTIONABLE ACTIVITY.—Subject to 

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

19 impose the applicable sanctions under subpara20 graph (B) on a foreign person if the Presi21 dent— 

22 (i) determines that a foreign person 

23 knowingly— 

24 (I) exports, transfers, or other25 wise engages in the trade of any 


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1 MTCR equipment or technology that 

2 contributes to the design, develop3 ment, or production of missiles in a 

4 country that is not an MTCR adher5 ent and would be, if it were United 

6 States-origin equipment or technology, 

7 subject to the jurisdiction of the 

8 United States under title I; 

9 (II) conspires to or attempts to 

10 engage in such export, transfer, or 

11 trade; or 

12 (III) facilitates such export, 

13 transfer, or trade by any other person; 

14 or 

15 (ii) has made a determination with re16 spect to the foreign person under section 

17 73(a) of the Arms Export Control Act. 

18 (B) SANCTIONS.—The sanctions that apply 

19 to a foreign person under subparagraph (A) are 

20 the following: 

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

22 transfer, or trade is within category II of 

23 the MTCR Annex, then the President shall 

24 deny, for a period of 2 years, licenses for 

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1 sile equipment or technology the transfer 

2 of which is controlled under title I. 

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

4 transfer, or trade is within category I of 

5 the MTCR Annex, then the President shall 

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

7 licenses for the transfer to such foreign 

8 person of items the transfer of which is 

9 controlled under title I. 

10 (2) INAPPLICABILITY WITH RESPECT TO MTCR

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

12 respect to— 

13 (A) any export, transfer, or trading activ14 ity that is authorized by the laws of an MTCR 

15 adherent, if such authorization is not obtained 

16 by misrepresentation or fraud; or 

17 (B) any export, transfer, or trade of an 

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

19 MTCR adherent. 

20 (3) EFFECT OF ENFORCEMENT ACTIONS BY

21 MTCR ADHERENTS.—Sanctions set forth in para22 graph (1) may not be imposed under this subsection 

23 on a person with respect to acts described in such 

24 paragraph or, if such sanctions are in effect against 

25 a person on account of such acts, such sanctions 


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1 shall be terminated, if an MTCR adherent is taking 

2 judicial or other enforcement action against that 

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

4 been found by the government of an MTCR adher5 ent to be innocent of wrongdoing with respect to 

6 such acts. 

7 (4) ADVISORY OPINIONS.—The President may, 

8 upon the request of any person, issue an advisory 

9 opinion to that person as to whether a proposed ac10 tivity by that person would subject that person to 

11 sanctions under this subsection. Any person who re12 lies in good faith on such an advisory opinion which 

13 states that the proposed activity would not subject 

14 a person to such sanctions, and any person who 

15 thereafter engages in such activity, may not be made 

16 subject to such sanctions on account of such activity. 

17 (5) WAIVER AND REPORT TO CONGRESS.— 

18 (A) WAIVER AUTHORITY.—In any case 

19 other than one in which an advisory opinion has 

20 been issued under paragraph (4) stating that a 

21 proposed activity would not subject a person to 

22 sanctions under this subsection, the President 

23 may waive the application of paragraph (1) to 

24 a foreign person if the President determines 


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1 that such waiver is essential to the national se2 curity of the United States. 

3 (B) NOTIFICATION AND REPORT TO CON4 GRESS.—In the event that the President decides 

5 to apply the waiver described in subparagraph 

6 (A), the President shall so notify the Congress 

7 not less than 20 working days before issuing 

8 the waiver. Such notification shall include a re9 port fully articulating the rationale and cir10 cumstances which led the President to apply the 

11 waiver. 

12 (6) ADDITIONAL WAIVER.—The President may 

13 waive the imposition of sanctions under paragraph 

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

15 if the President certifies to the Congress that— 

16 (A) the product or service is essential to 

17 the national security of the United States; and 

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

19 the product or service, the product or service is 

20 not available from any alternative reliable sup21 plier, and the need for the product or service 

22 cannot be met in a timely manner by improved 

23 manufacturing processes or technological devel24 opments. 


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1 (7) EXCEPTIONS.—The President shall not 

2 apply the sanction under this subsection prohibiting 

3 the importation of the products of a foreign per4 son— 

5 (A) in the case of procurement of defense 

6 articles or defense services— 

7 (i) under existing contracts or sub8 contracts, including the exercise of options 

9 for production quantities to satisfy require10 ments essential to the national security of 

11 the United States; 

12 (ii) if the President determines that 

13 the person to which the sanctions would be 

14 applied is a sole source supplier of the de15 fense articles and services, that the defense 

16 articles or services are essential to the na17 tional security of the United States, and 

18 that alternative sources are not readily or 

19 reasonably available; or 

20 (iii) if the President determines that 

21 such articles or services are essential to the 

22 national security of the United States 

23 under defense coproduction agreements or 

24 NATO Programs of Cooperation; 


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1 (B) to products or services provided under 

2 contracts entered into before the date on which 

3 the President publishes his intention to impose 

4 the sanctions; or 

5 (C) to— 

6 (i) spare parts, 

7 (ii) component parts, but not finished 

8 products, essential to United States prod9 ucts or production, 

10 (iii) routine services and maintenance 

11 of products, to the extent that alternative 

12 sources are not readily or reasonably avail13 able, or 

14 (iv) information and technology essen15 tial to United States products or produc16 tion. 

17 (c) DEFINITIONS.—In this section: 

18 (1) DEFENSE ARTICLES; DEFENSE SERVICES.— 

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

20 mean those items on the United States Munitions 

21 List or are otherwise controlled under the Arms Ex22 port Control Act. 

23 (2) MISSILE.—The term ‘‘missile’’ means a cat24 egory I system as defined in the MTCR Annex, and 

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1 bility, as well as the specially designed production 

2 facilities for these systems. 

3 (3) 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 (4) 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 (5) 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 (6) 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 (7) FOREIGN PERSON.—The term ‘‘foreign per4 son’’ means any person other than a United States 

5 person. 

6 (8) PERSON.—The term ‘‘person’’ means a nat7 ural person, a corporation, business association, 

8 partnership, society, or trust, any other nongovern9 mental entity, organization, or group, and any gov10 ernmental entity operating as a business enterprise, 

11 and any successor of any such entity. 

12 (9) OTHERWISE ENGAGED IN THE TRADE OF.— 

13 The term ‘‘otherwise engaged in the trade of’’ 

14 means, with respect to a particular export or trans15 fer, to be a freight forwarder or designated export16 ing agent, or a consignee or end user of the item to 

17 be exported or transferred. 

18 SEC. 302. CHEMICAL AND BIOLOGICAL WEAPONS PRO19 LIFERATION SANCTIONS. 

20 (a) IMPOSITION OF SANCTIONS.— 

21 (1) DETERMINATION BY THE PRESIDENT.—Ex22 cept as provided in subsection (b)(2), the President 

23 shall impose the sanction described in subsection (c) 

24 if the President determines that a foreign person has 

25 knowingly and materially contributed— 


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1 (A) through the export from the United 

2 States of any item that is subject to the juris3 diction of the United States under this title, or 

4 (B) through the export from any other 

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

6 United States goods or technology, subject to 

7 the jurisdiction of the United States under this 

8 title, 

9 to the efforts by any foreign country, project, or en10 tity described in paragraph (2) to use, develop, 

11 produce, stockpile, or otherwise acquire chemical or 

12 biological weapons. 

13 (2) COUNTRIES, PROJECTS, OR ENTITIES RE14 CEIVING ASSISTANCE.—Paragraph (1) applies in the 

15 case of— 

16 (A) any foreign country that the President 

17 determines has, at any time after January 1, 

18 1980— 

19 (i) used chemical or biological weap20 ons in violation of international law; 

21 (ii) used lethal chemical or biological 

22 weapons against its own nationals; or 

23 (iii) made substantial preparations to 

24 engage in the activities described in clause 

25 (i) or (ii); 


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1 (B) any foreign country whose government 

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

3 this Act to be a government that has repeatedly 

4 provided support for acts of international ter5 rorism; or 

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

7 entity designated by the President for purposes 

8 of this section. 

9 (3) PERSONS AGAINST WHICH SANCTIONS ARE

10 TO BE IMPOSED.—A sanction shall be imposed pur11 suant to paragraph (1) on— 

12 (A) the foreign person with respect to 

13 which the President makes the determination 

14 described in that paragraph; 

15 (B) any successor entity to that foreign 

16 person; and 

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

18 subsidiary, or affiliate of that foreign person if 

19 that parent, subsidiary, or affiliate knowingly 

20 assisted in the activities which were the basis of 

21 that determination. 

22 (b) CONSULTATIONS WITH AND ACTIONS BY FOR23 EIGN GOVERNMENT OF JURISDICTION.— 

24 (1) CONSULTATIONS.—If the President makes 

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


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1 with respect to a foreign person, the Congress urges 

2 the President to initiate consultations immediately 

3 with the government with primary jurisdiction over 

4 that foreign person with respect to the imposition of 

5 a sanction pursuant to this section. 

6 (2) ACTIONS BY GOVERNMENT OF JURISDIC7 TION.—In order to pursue such consultations with 

8 that government, the President may delay imposition 

9 of a sanction pursuant to this section for a period 

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

11 President shall impose the sanction unless the Presi12 dent determines and certifies to the Congress that 

13 that government has taken specific and effective ac14 tions, including appropriate penalties, to terminate 

15 the involvement of the foreign person in the activi16 ties described in subsection (a)(1). The President 

17 may delay imposition of the sanction for an addi18 tional period of up to 90 days if the President deter19 mines and certifies to the Congress that that govern20 ment is in the process of taking the actions de21 scribed in the preceding sentence. 

22 (3) REPORT TO CONGRESS.—The President 

23 shall report to the Congress, not later than 90 days 

24 after making a determination under subsection 

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1 priate government under this subsection, and the 

2 basis for any determination under paragraph (2) of 

3 this subsection that such government has taken spe4 cific corrective actions. 

5 (c) SANCTION.— 

6 (1) DESCRIPTION OF SANCTION.—The sanction 

7 to be imposed pursuant to subsection (a)(1) is, ex8 cept as provided that the United States Government 

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

10 procurement of, any goods or services from any per11 son described in subsection (a)(3). 

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

13 required to apply or maintain a sanction under this 

14 section— 

15 (A) in the case of procurement of defense 

16 articles or defense services— 

17 (i) under existing contracts or sub18 contracts, including the exercise of options 

19 for production quantities to satisfy United 

20 States operational military requirements; 

21 (ii) if the President determines that 

22 the person or other entity to which the 

23 sanctions would otherwise be applied is a 

24 sole source supplier of the defense articles 

25 or services, that the defense articles or 


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1 services are essential, and that alternative 

2 sources are not readily or reasonably avail3 able; or 

4 (iii) if the President determines that 

5 such articles or services are essential to the 

6 national security under defense coproduc7 tion agreements; 

8 (B) to products or services provided under 

9 contracts entered into before the date on which 

10 the President publishes his intention to impose 

11 sanctions; 

12 (C) to— 

13 (i) spare parts, 

14 (ii) component parts, but not finished 

15 products, essential to United States prod16 ucts or production, or 

17 (iii) routine servicing and mainte18 nance of products, to the extent that alter19 native sources are not readily or reason20 ably available; 

21 (D) to information and technology essen22 tial to United States products or production; or 

23 (E) to medical or other humanitarian 

24 items. 


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1 (d) TERMINATION OF SANCTIONS.—A sanction im2 posed pursuant to this section shall apply for a period of 

3 at least 12 months following the imposition of one sanction 

4 and shall cease to apply thereafter only if the President 

5 determines and certifies to the Congress that reliable in6 formation indicates that the foreign person with respect 

7 to which the determination was made under subsection 

8 (a)(1) has ceased to aid or abet any foreign government, 

9 project, or entity in its efforts to acquire chemical or bio10 logical weapons capability as described in that subsection. 

11 (e) WAIVER.— 

12 (1) CRITERION FOR WAIVER.—The President 

13 may waive the application of any sanction imposed 

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

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

16 which that sanction was imposed on that person, if 

17 the President determines and certifies to the Con18 gress that such waiver is important to the national 

19 security interests of the United States. 

20 (2) NOTIFICATION OF AND REPORT TO CON21 GRESS.—If the President decides to exercise the 

22 waiver authority provided in paragraph (1), the 

23 President shall so notify the Congress not less than 

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1 tionale and circumstances which led the President to 

2 exercise the waiver authority. 

3 (f) DEFINITIONS.—In this section: 

4 (1) 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. 

9 (2) FOREIGN PERSON.—The term ‘‘foreign per10 son’’ means— 

11 (A) an individual who is not a citizen of 

12 the United States or an alien admitted for per13 manent residence to the United States; or 

14 (B) a corporation, partnership, or other 

15 entity which is created or organized under the 

16 laws of a foreign country or which has its prin17 cipal place of business outside the United 

18 States. 

19 (3) PARENT, SUBSIDIARY, AFFILIATE.—An en20 tity is— 

21 (A) a ‘‘parent’’ of a foreign person if that 

22 entity owns or controls that foreign person; 

23 (B) a ‘‘subsidiary’’ of a foreign person if 

24 that entity is owned or controlled by that for25 eign person; and 


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1 (C) and ‘‘affiliate’’ of a foreign person if 

2 the entity and the foreign person are under 

3 common ownership or control by a third entity. 

Æ 


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