II

103D CONGRESS

1ST SESSION S. 1617

To amend the Export Administration Act of 1979 with respect to exports

of computers, telecommunications equipment, and semiconductors.

IN THE SENATE OF THE UNITED STATES

NOVEMBER 3 (legislative day, NOVEMBER 2), 1993

Mr. GREGG introduced the following bill; which was read twice and referred

to the Committee on Banking, Housing, and Urban Affairs

A BILL

To amend the Export Administration Act of 1979 with respect to exports of computers, telecommunications equipment, and semiconductors.

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 ‘‘High Technology Ex5 port Reform Act’’.

6 SEC. 2. FINDINGS.

7 The Congress finds that—

8 (1) increased communications and exchange of

9 information through computer and telecommuni10 cations networks promotes the development of demo-
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1 cratic political institutions, free market reforms, and

2 economic modernization;

3 (2) computers, telecommunications, semiconduc4 tors, and related equipment, software, and tech5 nology account for more than 85 percent of the

6 value of exports controlled by the United States De7 partment of Commerce under the Export Adminis8 tration Act of 1979;

9 (3) the computer, telecommunications, and

10 semiconductor industries account for

11 $55,000,000,000 in exports and 12.3 percent of all

12 of the export trade of the United States, represent13 ing more than 850,000 jobs in the United States;

14 (4) the rapid pace of technological development

15 and the dramatic reductions in product innovation

16 cycles for these products have rendered any system

17 for controlling their export meaningless; and

18 (5) the availability of advanced computer, tele19 communications, and semiconductor products from

20 sources of supply other than the United States and

21 members of the Coordinating Committee for Multi22 lateral Export Countries (hereafter in this Act re23 ferred to as the ‘‘COCOM’’) exists, and the perpet24 uation of export controls on these products dis25 advantages United States exporters to the detriment
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1 of the domestic economy, United States innovation,

2 and employment of American workers in these 3 in3 dustries and in those United States industries which

4 are the suppliers and customers of such industries.

5 SEC. 3. REMOVAL OF EXPORT CONTROLS ON COMPUTERS

6 AND ELECTRONIC EQUIPMENT.

7 Section 4 of the Export Administration Act of 1979

8 (50 U.S.C. App. 2403) is amended by adding at the end

9 the following new subsection:

10 ‘‘(h) LICENSE AUTHORITY FOR COMPUTERS, TELE11 COMMUNICATIONS EQUIPMENT, AND SEMICONDUC12 TORS.—

13 ‘‘(1) IN GENERAL.—

14 ‘‘(A) LICENSE EXEMPTION.—No validated

15 license or reexport authorization may be re16 quired for the export or reexport (as the case

17 may be), for consumption or use in any country

18 other than a targeted country, of any product

19 or related software or technology that is or

20 would be classified under the following entries

21 of the control list as in effect on July 1, 1993,

22 except for any such product or related software

23 or technology to which missile technology con24 trols apply under the control list:
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1 ‘‘(i) Computers and related equipment

2 under Category 4, code letter A.

3 ‘‘(ii) Telecommunications and related

4 equipment under Category 5, Part I.

5 ‘‘(iii) Semiconductors, as follows:

6 ‘‘(I) Items 3A01A.a, 3A02A.h,

7 3A92F, and all integrated circuits or

8 their microelectronic devices classified

9 under 3A96G.

10 ‘‘(II) Items 3D01A related to

11 3A01A.a and 3A02A.h, 3D03A,

12 3D94F, and 3D96G related to inte13 grated circuits or other microelec14 tronic devices classified under 3A96G.

15 ‘‘(III) Items 3E01A related to

16 3A01A.a and 3A02A.h, 3E02A,

17 3E94F related to 3A92F, and 3E96G

18 related to integrated circuits or other

19 microelectronic devices classified

20 under 3A96G.

21 ‘‘(B) NO PROPOSALS FOR CERTAIN LIST

22 TRANSFERS.—The United States shall not pro23 pose (or ask any other government to propose)

24 to the COCOM the transfer of any item subject

25 to subparagraph (A) from the Industrial List of
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1 the COCOM to the International Munitions

2 List of the COCOM.

3 ‘‘(C) NO AGREEMENTS TO CERTAIN LIST

4 TRANSFERS.—The United States shall not

5 agree to any proposal to transfer any item sub6 ject to subparagraph (A) from the Industrial

7 List of the COCOM to the International Muni8 tions List of the COCOM.

9 ‘‘(2) OTHER AUTHORITIES.—No control on the

10 export or reexport of any good or technology for

11 which no license or authorization may be required

12 under paragraph (1)(A) may be imposed, directly or

13 indirectly, under the International Emergency Eco14 nomic Powers Act, the Trading with the Enemy Act,

15 or other provision of law, other than in connection

16 with a prohibition on all or substantially all exports

17 to a specific country, government, entity, or person.

18 ‘‘(3) EXCEPTIONS.—Nothing in this subsection

19 shall prohibit the Secretary from requiring a vali20 dated license for exports to—

21 ‘‘(A) a country against which the United

22 States maintains an embargo of all or substan23 tially all exports; or

24 ‘‘(B) a party lawfully denied export privi25 leges under this Act.
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1 ‘‘(4) DEFINITION.—For purposes of this sub2 section, the term ‘targeted country’ means any coun3 try—

4 ‘‘(A) the government of which the Sec5 retary of State has determined, under section

6 6(j), to be a government that has repeatedly

7 provided support for acts of international ter8 rorism; or

9 ‘‘(B) which is subject to an embargo—

10 ‘‘(i) which has been imposed by the

11 United Nations on all or substantially all

12 exports to that country; and

13 ‘‘(ii) in which the United States is

14 participating.

15 ‘‘(5) RELATIONSHIP TO OTHER PROVISIONS OF

16 THIS ACT.—The provisions of this subsection shall

17 apply notwithstanding any other provision of this

18 Act.’’.

19 SEC. 4. EFFECTIVE DATE.

20 (a) IN GENERAL.—The amendment made by section

21 3 shall become effective 6 months after the date of enact22 ment of this Act.

23 (b) INTERIM NEGOTIATIONS.—Upon the enactment

24 of this Act, the President shall undertake negotiations

25 with the COCOM and other relevant multilateral export
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1 control regimes for the purpose of attaining agreement

2 among the members of the COCOM and such other re3 gimes to apply export controls consistent with the amend4 ment made by section 3. Whether such agreement is at5 tained shall not affect the effective date set forth in sub6 section (a).

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