I 

112TH CONGRESS 

1ST SESSION H. R. 2122 

To renew the Export Administration Act of 1979, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 3, 2011 

Ms. ROS-LEHTINEN (for herself, Mr. ROYCE, Mr. BURTON of Indiana, and 

Mr. CHABOT) introduced the following bill; which was referred to the 

Committee on Foreign Affairs 

A BILL 

To renew the Export Administration Act of 1979, 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. 

4 This Act may be cited as the ‘‘Export Administration 

5 Renewal Act of 2011’’. 

6 TITLE I—EXPORT 

7 ADMINISTRATION ACT OF 1979 

8 SEC. 101. VIOLATIONS. 

9 (a) CRIMINAL PENALTIES.—Section 11 of the Export 

10 Administration Act of 1979 (50 U.S.C. App. 2410) is 


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1 amended by striking subsections (a) and (b) and inserting 

2 the following: 

3 ‘‘(a) CRIMINAL PENALTIES.— 

4 ‘‘(1) VIOLATIONS BY AN INDIVIDUAL.—Any in5 dividual who willfully violates, conspires to violate, 

6 attempts to violate, or aids or abets in the commis7 sion of a violation of any provision of this Act or any 

8 regulation, license, or order issued under this Act 

9 shall be fined not more than $1,000,000, imprisoned 

10 for not more than 20 years, or both, for each viola11 tion. 

12 ‘‘(2) VIOLATIONS BY A PERSON OTHER THAN

13 AN INDIVIDUAL.—Any person, other than an indi14 vidual, who willfully violates, conspires to violate, at15 tempts to violate, or aids or abets in the commission 

16 of a violation of any provision of this Act or any reg17 ulation, license, or order issued under this Act shall 

18 be fined not more than 10 times the value of the ex19 ports involved or $5,000,000, whichever amount is 

20 greater, for each violation. 

21 ‘‘(b) REGULATORY AUTHORITY NOT AFFECTED.— 

22 Nothing in subsection (a) limits the authority of the Sec23 retary to define by regulations violations under this Act.’’. 

24 (b) CIVIL PENALTIES.—Section 11(c)(1) of the Ex25 port Administration Act of 1979 (50 U.S.C. 2410(c)(1)) 


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1 is amended to read as follows: ‘‘(1) The Secretary may 

2 impose a civil penalty for each violation of this Act, or 

3 any regulation, license, or order issued under this Act, in 

4 an amount not to exceed the greater of $250,000, or an 

5 amount that is twice the value of the transaction that is 

6 the basis of the violation. A civil penalty under this para7 graph may be in addition to, or in lieu of, any other liabil8 ity or penalty that may be imposed for such a violation.’’ 

9 (c) FORFEITURE.—Section 11(g) of the Export Ad10 ministration Act of 1979 (50 U.S.C. App. 2410) is amend11 ed to read as follows: 

12 ‘‘(g) FORFEITURE OF PROPERTY INTEREST AND

13 PROCEEDS.— 

14 ‘‘(1) CRIMINAL FORFEITURE.—Any person who 

15 is convicted of a violation under paragraph (1) or 

16 (2) of subsection (a) shall, in addition to any other 

17 penalty, forfeit to the United States such person’s— 

18 ‘‘(A) security or other interest in, claim 

19 against, or property or contractual rights of any 

20 kind in, the real or personal property that was 

21 the subject of the violation; 

22 ‘‘(B) interest in any property, real or per23 sonal, constituting or traceable to gross profits 

24 or other proceeds obtained from the violation; 

25 and 


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1 ‘‘(C) interest in any property, real or per2 sonal, used or intended to be used to commit or 

3 to promote the commission of the violation. 

4 ‘‘(2) CIVIL FORFEITURE.—Any person con5 victed of a violation under subsection (a), or subject 

6 to a civil penalty as set forth in subsection (c), shall 

7 forfeit to the United States such person’s interest 

8 in— 

9 ‘‘(A) any security or other interest in, 

10 claim against, or property or contractual rights 

11 of any kind in, the real or personal property 

12 that was the subject of the violation; 

13 ‘‘(B) any property, real or personal, consti14 tuting or traceable to gross profits or other pro15 ceeds obtained because of the act or acts consti16 tuting the violation; and 

17 ‘‘(C) any property, real or personal, used 

18 or intended to be used to commit or to promote 

19 the commission of the violation. 

20 ‘‘(3) PROCEDURES.—Forfeiture under this sub21 section shall be carried out in accordance with the 

22 procedures set forth in chapter 46 of title 18, United 

23 States Code.’’. 


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1 (d) TEMPORARY DENIAL ORDERS.—Section 11 of 

2 the Export Administration Act of 1979 (50 U.S.C. App. 

3 2410) is amended— 

4 (1) by redesignating subsection (i) as subsection 

5 (j); 

6 (2) by inserting after subsection (h) the fol7 lowing: 

8 ‘‘(i) IMPOSITION OF TEMPORARY DENIAL ORDERS.— 

9 ‘‘(1) AUTHORITY OF THE SECRETARY.—In any 

10 case in which it is necessary, in the public interest, 

11 to prevent an imminent violation of this Act or any 

12 regulation, order, or license issued under this Act, 

13 the Secretary may, without a hearing, issue an order 

14 temporarily denying United States export privileges 

15 (in this subsection referred to as a ‘temporary denial 

16 order’) to a person. A temporary denial order may 

17 be effective no longer than 180 days unless renewed 

18 in writing by the Secretary for additional 180-day 

19 periods in order to prevent such an imminent viola20 tion, except that a temporary denial order may be 

21 renewed only after notice and an opportunity for a 

22 hearing is provided. The Secretary shall publish no23 tice of the issuance of a temporary denial order in 

24 the Federal Register and may provide notice of the 

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1 ject of the order by such additional means as the 

2 Secretary considers appropriate. 

3 ‘‘(2) PROCEDURES.—A temporary denial order 

4 shall define the imminent violation and state why 

5 the temporary denial order was granted without a 

6 hearing. The person or persons subject to the 

7 issuance or renewal of a temporary denial order may 

8 file an appeal of the issuance or renewal of the tem9 porary denial order with an administrative law judge 

10 who shall, within 10 working days after the appeal 

11 is filed, recommend that the temporary denial order 

12 be affirmed, modified, or vacated. Parties may sub13 mit briefs and other material to the judge. The rec14 ommendation of the administrative law judge shall 

15 be submitted to the Secretary who shall either ac16 cept, reject, or modify the recommendation by writ17 ten order within 5 working days after receiving the 

18 recommendation. The written order of the Secretary 

19 under the preceding sentence shall be final and is 

20 not subject to judicial review, except as provided in 

21 paragraph (3). The temporary denial order shall be 

22 affirmed only if it is reasonable to believe that the 

23 order is required in the public interest to prevent an 

24 imminent violation of this Act or any regulation, 

25 order, or license issued under this Act. All materials 


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1 submitted to the administrative law judge and the 

2 Secretary shall constitute the administrative record 

3 for purposes of review by the courts. 

4 ‘‘(3) APPEALS.—An order of the Secretary af5 firming, in whole or in part, the issuance of a tem6 porary denial order may, within 15 days after the 

7 order is issued, be appealed by a person subject to 

8 the order to the United States Court of Appeals for 

9 the District of Columbia Circuit, which shall have 

10 jurisdiction of the appeal. The court may review only 

11 those issues necessary to determine whether the 

12 standard for issuing the temporary denial order has 

13 been met. The court shall vacate the Secretary’s 

14 order if the court finds that the Secretary’s order is 

15 arbitrary, capricious, an abuse of discretion, or oth16 erwise not in accordance with law.’’; and 

17 (3) in subsection (j), as redesignated, by strik18 ing ‘‘or (h)’’ and inserting ‘‘(h), or (i)’’. 

19 (e) CONFORMING AMENDMENTS.—Section 13 of the 

20 Export Administration Act of 1979 (50 U.S.C. App. 2412) 

21 is amended— 

22 (1) by striking subsection (d); and 

23 (2) by redesignating subsection (e) as sub24 section (d). 


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1 (f) EFFECTIVE DATE.—The amendments made by 

2 this section apply with respect to acts constituting viola3 tions under section 11 of the Export Administration Act 

4 of 1979 that occur on or after the date of the enactment 

5 of this Act. 

6 SEC. 102. ENFORCEMENT. 

7 (a) FINDINGS.—The Congress finds the following: 

8 (1) On July 1, 2010, the Comprehensive Iran 

9 Sanctions, Accountability, and Divestment Act of 

10 2010 (Public Law 111–195) was signed into law by 

11 the President of the United States. 

12 (2) Section 305 of that Act provides the De13 partment of Commerce with the authority to enforce 

14 the provisions of that Act as well as the Export Ad15 ministration Act of 1979. 

16 (3) Statutory authority to conduct investiga17 tions overseas, as well as undercover authority, is 

18 necessary for the Office of Export Enforcement of 

19 the Department of Commerce to combat increasingly 

20 complex international proliferation activities involv21 ing Iran and other hostile state and non-state ac22 tors. 

23 (b) ENFORCEMENT AUTHORITY.—Section 12 of the 

24 Export Administration Act of 1979 (50 U.S.C. App. 2411) 

25 is amended— 


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1 (1) in subsection (a)— 

2 (A) in paragraph (1), in the first sentence, 

3 by striking ‘‘within the United States, and’’ and 

4 inserting ‘‘within the United States, the Sec5 retary of Commerce (and officers and employees 

6 of the Department of Commerce specifically 

7 designated by the Secretary of Commerce) may 

8 conduct investigations outside of the United 

9 States and, in addition,’’; 

10 (B) by striking paragraph (6) and redesig11 nating paragraphs (7) and (8) as paragraphs 

12 (6) and (7), respectively; and 

13 (C) in paragraph (7) (as redesignated) by 

14 inserting before the period the following: ‘‘, and 

15 the enforcement or a violation of the Export 

16 Administration Regulations as maintained and 

17 amended under the authority of the Inter18 national Emergency Economic Powers Act (50 

19 U.S.C. 1701 et seq.)’’; and 

20 (2) by adding at the end the following new sub21 sections: 

22 ‘‘(f) FORFEITURE.— 

23 ‘‘(1) IN GENERAL.—Any tangible items lawfully 

24 seized under subsection (a) by designated officers or 


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1 employees shall be subject to forfeiture to the United 

2 States. 

3 ‘‘(2) PROCEDURES.—Any seizure or forfeiture 

4 under this subsection shall be carried out in accord5 ance with the procedures set forth in chapter 46 of 

6 title 18, United States Code. 

7 ‘‘(g) UNDERCOVER INVESTIGATION OPERATIONS.— 

8 ‘‘(1) USE OF FUNDS.—With respect to any un9 dercover investigative operation conducted by the Of10 fice of Export Enforcement of the Department of 

11 Commerce that is necessary for the detection and 

12 prosecution of violations under this Act— 

13 ‘‘(A) funds made available for export en14 forcement under this Act may be used to pur15 chase property, buildings and other facilities, 

16 and to lease equipment, conveyances, and space 

17 within the United States, without regard to sec18 tions 1341 and 3324 of title 31, United States 

19 Code, section 8141 of title 40, United States 

20 Code, and sections 3901(a), 3903, 4501 

21 through 4506, 4706, 6301(a), and 6306 of title 

22 41, United States Code; 

23 ‘‘(B) funds made available for export en24 forcement under this Act may be used to estab25 lish or to acquire proprietary corporations or 


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1 business entities as part of an undercover oper2 ation, and to operate such corporations or busi3 ness entities on a commercial basis, without re4 gard to sections 1341, 3324, and 9102 of title 

5 31, United States Code; 

6 ‘‘(C) funds made available for export en7 forcement under this Act and the proceeds from 

8 undercover operations may be deposited in 

9 banks or other financial institutions without re10 gard to section 648 of title 18, United States 

11 Code, and section 3302 of title 31, United 

12 States Code; and 

13 ‘‘(D) the proceeds from undercover oper14 ations may be used to offset necessary and rea15 sonable expenses incurred in such operations 

16 without regard to section 3302 of title 31, 

17 United States Code, if the Secretary (or the 

18 Secretary’s designee) certifies, in writing, that 

19 the action authorized by subparagraph (A), (B), 

20 or (C) for which the funds would be used is 

21 necessary for the conduct of the undercover op22 eration. 

23 ‘‘(2) DISPOSITION OF BUSINESS ENTITIES.—If 

24 a corporation or business entity established or ac25 quired as part of an undercover operation has a net 


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1 value of more than $250,000 and is to be liquidated, 

2 sold, or otherwise disposed of, the Secretary shall re3 port the circumstances to the Comptroller General of 

4 the United States as much in advance of such dis5 position as the Secretary determines is practicable. 

6 The proceeds of the liquidation, sale, or other dis7 position, after obligations incurred by the corpora8 tion or business entity are met, shall be deposited in 

9 the Treasury of the United States as miscellaneous 

10 receipts. Any property or equipment purchased pur11 suant to paragraph (1)(A) may be retained for sub12 sequent use in undercover operations under this sub13 section. When such property or equipment is no 

14 longer needed, it shall be considered as surplus and 

15 disposed of as surplus government property. 

16 ‘‘(3) DEPOSIT OF PROCEEDS.—As soon as the 

17 proceeds from an undercover investigative operation 

18 of the Office of Export Enforcement of the Depart19 ment of Commerce with respect to which an action 

20 is authorized and carried out under this subsection 

21 are no longer needed for the conduct of such oper22 ation, the proceeds or the balance of the proceeds re23 maining at the time shall be deposited into the 

24 Treasury of the United States as miscellaneous re25 ceipts. 


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1 ‘‘(4) AUDIT AND REPORT.— 

2 ‘‘(A) AUDIT.—The Secretary shall conduct 

3 a detailed financial audit of each closed under4 cover operation of the Office of Export Enforce5 ment of the Department of Commerce. Not 

6 later than 180 days after an undercover oper7 ation is closed, the Secretary shall submit to 

8 the Congress a report on the results of that 

9 audit. 

10 ‘‘(B) REPORT.—The Secretary shall sub11 mit annually to the Congress a report, which 

12 may be included in the annual report under sec13 tion 14(a), including the following information: 

14 ‘‘(i) The number of undercover inves15 tigative operations pending as of the end of 

16 the period for which the report is sub17 mitted. 

18 ‘‘(ii) The number of undercover inves19 tigative operations commenced in the 1- 

20 year period preceding the period for which 

21 the report is submitted. 

22 ‘‘(iii) The number of undercover in23 vestigative operations closed in the 1-year 

24 period preceding the period for which such 

25 report is submitted and, with respect to 


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1 each such closed undercover operation, the 

2 results obtained and any civil claims made 

3 with respect to such operation. 

4 ‘‘(C) DEFINITIONS.—In this paragraph: 

5 ‘‘(i) CLOSED.—The term ‘closed’, with 

6 respect to an undercover investigative oper7 ation, refers to the earliest point in time at 

8 which all criminal proceedings (other than 

9 appeals) pursuant to the investigative oper10 ation are concluded, or covert activities 

11 pursuant to such operation are concluded, 

12 whichever occurs later. 

13 ‘‘(ii) UNDERCOVER INVESTIGATIVE

14 OPERATION AND UNDERCOVER OPER15 ATION.— 

16 ‘‘(I) IN GENERAL.—Subject to 

17 subclause (II), the terms ‘undercover 

18 investigative operation’ and ‘under19 cover operation’ mean any undercover 

20 investigative operation conducted by 

21 the Office of Export Enforcement of 

22 the Department of Commerce in 

23 which the gross receipts (excluding in24 terest earned) exceed $25,000, or ex25 penditures (other than expenditures 


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1 for salaries of employees) exceed 

2 $75,000. 

3 ‘‘(II) EXCEPTION.—The report 

4 to Congress required by subparagraph 

5 (B) shall be made with respect to un6 dercover investigative operations con7 ducted by the Office of Export En8 forcement of the Department of Com9 merce without regard to the gross re10 ceipts and expenditures limitations 

11 under subclause (I). 

12 ‘‘(h) AUTHORIZATION FOR BUREAU OF INDUSTRY

13 AND SECURITY.—The Secretary may authorize, without 

14 fiscal year limitation, the expenditure of funds transferred 

15 to, paid to, received by, or made available to the Bureau 

16 of Industry and Security of the Department of Commerce 

17 as a reimbursement in accordance with section 9703 of 

18 title 31, United States Code (as added by Public Law 

19 102–393).’’. 

20 (c) EFFECTIVE DATE.— 

21 (1) IN GENERAL.—Subject to paragraphs (2) 

22 and (3), the amendments made by subsection (a) 

23 shall take effect on the date of the enactment of this 

24 Act. 


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1 (2) FORFEITURE.—Section 12(f) of the Export 

2 Administration Act of 1979, as added by subsection 

3 (a)(2) of this section, shall apply to items seized on 

4 or after the date of the enactment of this Act. 

5 (3) UNDERCOVER OPERATIONS.—Section 12(g) 

6 of the Export Administration Act of 1979, as added 

7 by subsection (a)(2) of this section, shall apply with 

8 respect to undercover investigative operations com9 menced on or after the date of the enactment of this 

10 Act. 

11 SEC. 103. ADMINISTRATIVE AND REGULATORY AUTHORITY. 

12 Section 15 of the Export Administration Act of 1979 

13 (50 U.S.C. App. 2414) is amended— 

14 (1) in subsection (a), in the first sentence— 

15 (A) by striking ‘‘Under Secretary of Com16 merce for Export Administration’’ and inserting 

17 ‘‘Under Secretary of Commerce for Industry 

18 and Security’’; and 

19 (B) by striking ‘‘such other statutes’’ and 

20 all that follows through the end of the sentence 

21 and in inserting ‘‘other statutes that the Sec22 retary has delegated to the Under Secretary of 

23 Commerce for Industry and Security or any 

24 predecessor (including the Under Secretary of 

25 Commerce for Export Administration and the 


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1 Assistant Secretary of Commerce for Trade Ad2 ministration) as of the date of the enactment of 

3 the Export Administration Renewal Act of 

4 2011, or may delegate to the Under Secretary 

5 of Commerce for Industry and Security on or 

6 after that date.’’; 

7 (2) in subsection (b)— 

8 (A) by striking ‘‘the President and the 

9 Secretary’’ and inserting— 

10 ‘‘(1) IN GENERAL.—The President and the Sec11 retary’’; and 

12 (B) by adding at the end the following: 

13 ‘‘(2) ADVANCE NOTICE TO CONGRESS.—Any 

14 significant regulations issued pursuant to this Act 

15 shall be provided to the Committee on Foreign Af16 fairs of the House of Representatives and the Com17 mittee on Banking, Housing, and Urban Affairs of 

18 the Senate not less than 30 days in advance of the 

19 publication of the regulations in the Federal Reg20 ister, unless exigent circumstances require the Sec21 retary to shorten that 30-day period.’’; and 

22 (3) in subsection (c)— 

23 (A) by inserting after the first sentence the 

24 following: ‘‘The Secretary shall submit the re25 port under the preceding sentence not less than 


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1 30 days in advance of the publication of the 

2 proposed amendments in the Federal Register, 

3 unless exigent circumstances require the Sec4 retary to shorten that 30-day period.’’; and 

5 (B) in the succeeding sentence, by striking 

6 ‘‘evaluate the cost and burden to United States 

7 exporters’’ and inserting ‘‘include the text of 

8 the proposed amendments, as well as evaluate 

9 the economic and national security impact on 

10 the United States’’. 

11 SEC. 104. AUTHORIZATION OF APPROPRIATIONS. 

12 Section 18(b) of the Export Administration Act of 

13 1979 (50 U.S.C. App. 2417(b)) is amended— 

14 (1) by striking paragraphs (1) and (2) and in15 serting the following: 

16 ‘‘(1) $100,141,000 for fiscal year 2012; 

17 $101,643,115 for fiscal year 2013; $103,167,647 for 

18 fiscal year 2014; and $104,926,000 for fiscal year 

19 2015; and’’; and 

20 (2) by redesignating paragraph (3) as para21 graph (2). 

22 SEC. 105. TERMINATION DATE. 

23 Section 20 of the Export Administration Act of 1979 

24 (50 U.S.C. App. 2419) is amended to read as follows: 


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1 ‘‘TERMINATION DATE

2 ‘‘SEC. 20. The authority granted by this Act termi3 nates on September 30, 2015, except that the authority 

4 granted by sections 11 and 12 shall not terminate.’’. 

5 SEC. 106. FOREIGN POLICY CONTROLS. 

6 (a) TERRORIST STATES.—Section 6(j)(4) of the Ex7 port Administration Act of 1979 (50 U.S.C. App. 

8 2405(j)(4)) is amended— 

9 (1) in the matter preceding subparagraph (A), 

10 by striking ‘‘the Speaker’’ and inserting ‘‘the chair11 man of the Committee on Foreign Affairs’’; and 

12 (2) in subparagraph (B)— 

13 (A) in clause (i), by striking ‘‘6-month pe14 riod; and’’ and inserting ‘‘36-month period;’’; 

15 (B) in clause (ii), by striking the period at 

16 the end and inserting a semicolon; and 

17 (C) by adding after clause (ii) the fol18 lowing: 

19 ‘‘(iii) that government is not a ‘country of 

20 proliferation concern’ as defined in section 

21 1055(g)(2) of the National Defense Authoriza22 tion Act for Fiscal Year 2010 (50 U.S.C. 

23 2371(g)(2)); and 

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1 rectly or indirectly, the proliferation of nuclear 

2 materials, items, or technology in the future.’’. 

3 (b) CONFORMING AMENDMENTS.— 

4 (1) FOREIGN ASSISTANCE ACT OF 1961.—Sec5 tion 620A(c) of the Foreign Assistance Act of 1961 

6 (22 U.S.C. 2371(c)) is amended— 

7 (A) in the matter preceding paragraph (1), 

8 by striking ‘‘the Speaker’’ and inserting ‘‘the 

9 chairman of the Committee on Foreign Af10 fairs’’; and 

11 (B) in paragraph (2)— 

12 (i) in subparagraph (A), by striking 

13 ‘‘6-month period; and’’ and inserting ‘‘36- 

14 month period;’’; 

15 (ii) in subparagraph (B), by striking 

16 the period at the end and inserting a semi17 colon; and 

18 (iii) by adding after subparagraph (B) 

19 the following: 

20 ‘‘(C) that government is not a ‘country of 

21 proliferation concern’ as defined in section 

22 1055(g)(2) of the National Defense Authoriza23 tion Act for Fiscal Year 2010 (50 U.S.C. 

24 2371(g)(2)); and 


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1 ‘‘(D) that government has provided assur2 ances that it will not knowingly facilitate, di3 rectly or indirectly, the proliferation of nuclear 

4 materials, items, or technology in the future.’’. 

5 (2) ARMS EXPORT CONTROL ACT.—Section 

6 40(f)(1) of the Arms Export Control Act (22 U.S.C. 

7 2780(f)(1)) is amended— 

8 (A) in the matter preceding subparagraph 

9 (A), by striking ‘‘the Speaker’’ and inserting 

10 ‘‘the chairman of the Committee on Foreign Af11 fairs’’; and 

12 (B) in subparagraph (B)— 

13 (i) in clause (i), by striking ‘‘6-month 

14 period; and’’ and inserting ‘‘36-month pe15 riod;’’; 

16 (ii) in clause (ii), by striking the pe17 riod at the end and inserting a semicolon; 

18 and 

19 (iii) by adding after clause (ii) the fol20 lowing: 

21 ‘‘(iii) that government is not a ‘country of 

22 proliferation concern’ as defined in section 

23 1055(g)(2) of the National Defense Authoriza24 tion Act for Fiscal Year 2010 (50 U.S.C. 

25 2371(g)(2)); and 


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1 ‘‘(iv) that government has provided assur2 ances that it will not knowingly facilitate, di3 rectly or indirectly, the proliferation of nuclear 

4 materials, items, or technology in the future.’’. 

5 SEC. 107. TECHNICAL AND CONFORMING AMENDMENTS. 

6 (a) RENAMING OF UNDER SECRETARY.— 

7 (1) IN GENERAL.—Section 5(f)(6) of the Ex8 port Administration Act of 1979 (50 U.S.C. App. 

9 2404(f)(6)) is amended by striking ‘‘Under Sec10 retary of Commerce for Export Administration’’ and 

11 inserting ‘‘Under Secretary of Commerce for Indus12 try and Security’’. 

13 (2) CONFORMING AMENDMENT.—Section 5314 

14 of title 5, United States Code, is amended by strik15 ing ‘‘Under Secretary of Commerce for Export Ad16 ministration’’ and inserting ‘‘Under Secretary of 

17 Commerce for Industry and Security’’. 

18 (b) AMENDMENTS TO TITLE 31, UNITED STATES

19 CODE.— 

20 (1) Section 9703(a) of title 31, United States 

21 Code (as added by Public Law 102–393), is amend22 ed, in the matter preceding paragraph (1), by strik23 ing ‘‘or the United States Coast Guard’’ and insert24 ing, ‘‘, the United States Coast Guard, or the BuVerDate Mar 15 2010 04:05 Jun 09, 2011 Jkt 099200 PO 00000 Frm 00022 Fmt 6652 Sfmt 6201 E:\BILLS\H2122.IH H2122

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1 reau of Industry and Security of the Department of 

2 Commerce’’. 

3 (2) Section 9703(o)(1) of title 31, United 

4 States Code (as added by Public Law 102–393) is 

5 amended by adding at the end the following: ‘‘In ad6 dition, for purposes of this section, the Bureau of 

7 Industry and Security of the Department of Com8 merce shall be considered to be a Department of the 

9 Treasury law enforcement organization.’’. 

10 (c) CIVIL FORFEITURE PROCEEDINGS.—Section 

11 983(i)(2) of title 18, United States Code, is amended— 

12 (1) by striking ‘‘or’’ at the end of subparagraph 

13 (D); 

14 (2) by striking the period at the end of sub15 paragraph (E) and inserting ‘‘; or’’; and 

16 (3) by adding at the end the following new sub17 paragraph: 

18 ‘‘(F) the Export Administration Act of 

19 1979.’’. 

20 (d) CLERICAL AMENDMENT.—Paragraph (3) of sec21 tion 11A(k) of the Export Administration Act of 1979 (50 

22 U.S.C. App. 2410A(k)(3)) is amended— 

23 (1) by redesignating that paragraph as para24 graph (2); and 


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1 (2) by striking ‘‘paragraph (2)’’ and inserting 

2 ‘‘paragraph (1)’’. 

3 (e) ANNUAL REPORT.—Section 14(a)(15) of the Ex4 port Administration Act of 1979 (50 U.S.C. App. 

5 2413(a)(15)) is amended by striking ‘‘the export licensing 

6 process and’’ and inserting export licensing, an assessment 

7 of the impact of licensing exemptions on licensing case8 loads, numbers of licensing officers, and the budget of the 

9 Bureau of Industry and Security, and efforts. 

10 SEC. 108. REPORTS BY COMPTROLLER GENERAL ON EX11 PORT CONTROL VULNERABILITIES. 

12 (a) IN GENERAL.—Not later than the date that is 

13 1 year, 2 years, and 3 years after the date of the enact14 ment of this Act, the Comptroller General of the United 

15 States shall submit to the appropriate congressional com16 mittees a report assessing any progress made in resolving 

17 export control issues identified by the Government Ac18 countability Office in— 

19 (1) its report (GAO–09–767T) entitled ‘‘Export 

20 Controls: Fundamental Reexamination of System Is 

21 Needed to Help Protect Critical Technologies’’, 

22 dated June 4, 2009; and 

23 (2) its report (GAO–11–278) entitled ‘‘High24 Risk Series: An Update’’, dated February 16, 2011. 


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1 (b) APPROPRIATE CONGRESSIONAL COMMITTEES.— 

2 For purposes of subsection (a), the term ‘‘appropriate con3 gressional committees’’ means— 

4 (1) the Committee on Foreign Affairs and the 

5 Committee on Armed Services of the House of Rep6 resentatives; and 

7 (2) the Committee on Banking, Housing, and 

8 Urban Affairs, the Committee on Armed Services, 

9 and the Committee on Foreign Relations of the Sen10 ate. 

11 SEC. 109. EFFECTIVE DATE. 

12 Subject to sections 101(f) and 102(b), this title and 

13 the amendments made by this title shall take effect on 

14 the date of the enactment of this Act. 

15 TITLE II—CONTROL OF GENERIC 

16 PARTS AND COMPONENTS 

17 SEC. 201. TREATMENT OF GENERIC COMPONENTS OR 

18 PARTS. 

19 Section 38(a)(1) of the Arms Export Control Act (22 

20 U.S.C. 2778(a)(1)) is amended by adding at the end the 

21 following: ‘‘Nothing in this section shall be construed to 

22 require the President to include as a defense article any 

23 component, accessory, attachment, or part associated with 

24 any end-item included on the United States Munitions 

25 List, if such component, attachment, or part does not have 


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1 specialized or unique military or intelligence capability or 

2 significance such that control under the Arms Export Con3 trol Act is warranted.’’. 

4 SEC. 202. INTERAGENCY PROCESS FOR SUBSEQUENT CON5 TROL OF ITEMS REMOVED FROM U.S. MUNI6 TIONS LIST. 

7 (a) LEVEL OF EXPORT CONTROLS ON ITEMS RE8 MOVED FROM UNITED STATES MUNITIONS LIST.—If an 

9 item is removed from the United States Munitions List 

10 under section 38(f) of the Arms Export Control Act (22 

11 U.S.C. 2778(f)), the item may not be made subject to ex12 port controls that are less restrictive than the export con13 trols that are imposed on the item at the time it is re14 moved from the Munitions List, unless the President— 

15 (1) determines that such less restrictive controls 

16 are appropriate and in the national security and eco17 nomic interests of the United States; and 

18 (2) complies with the 30-day notification re19 quirement set forth in section 15(b)(2) of the Export 

20 Administration Act of 1979 with respect to the pro21 posed controls, together with a description of, and 

22 justification for, the less restrictive controls. 

23 (b) CONSENSUS OF DEPARTMENT HEADS.—The 

24 President shall ensure, through interagency procedures or 

25 regulation, that when an item that is removed from the 


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1 United States Munitions List under section 38(f) of the 

2 Arms Export Control Act is subject to controls under the 

3 Export Administration Act of 1979, the Secretaries of 

4 State, Defense, and Commerce concur on all subsequent 

5 modifications to the export controls on the item. 

6 SEC. 203. EXPORTS TO CERTAIN COUNTRIES. 

7 (a) EXPORTS TO CHINA.— 

8 (1) PRESUMPTION OF DENIAL.—There shall be 

9 a presumption of denial of any application for a li10 cense or other approval to export to the People’s Re11 public of China any item that is removed from the 

12 United States Munitions List under section 38 of 

13 the Arms Export Control Act and is listed on the 

14 ‘‘Very Sensitive List’’ or ‘‘Sensitive List’ ’’ of the 

15 Wassenaar Arrangement on Export Controls for 

16 Conventional Arms and Dual-Use Goods and Tech17 nologies. 

18 (2) WAIVER.—The President may waive the ap19 plication of paragraph (1) on a case-by-case basis if 

20 the President— 

21 (A) determines that the waiver is in the 

22 national security and economic interest of the 

23 United States; and 

24 (B) at least 15 days before the waiver is 

25 to take effect, the President submits to the 


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1 Committee on Foreign Affairs of the House of 

2 Representatives and the Committees on Bank3 ing, Finance, and Urban Affairs and on For4 eign Relations of the Senate a report describing 

5 the reasons for the waiver. 

6 (b) EXPORTS TO CERTAIN COUNTRIES.—An applica7 tion for a license or other approval to export any item that 

8 is removed from the United States Munitions List under 

9 section 38 of the Arms Export Control Act for export to 

10 any country or end-user that is subject to section 126.1 

11 of title 22, Code of Federal Regulations (and any suc12 cessor regulations), or to a multilateral arms embargo 

13 under the United Nations Security Council shall be de14 nied. 

15 SEC. 204. EFFECTIVE DATE. 

16 (a) SECTION 201.—Section 201 shall take effect on 

17 the date of the enactment of this Act. 

18 (b) SECTION 202.—Section 202 shall apply with re19 spect to any item removed from the United States Muni20 tions List on or after the date of the enactment of this 

21 Act. 

22 (c) SECTION 203.—Section 203 shall apply to any ap23 plication for a license or other approval to export that is 

24 made on or after the date of the enactment of this Act. 

Æ 


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