II

103D CONGRESS

2D SESSION S. 1902

To improve the administration of export controls, and for other purposes.

IN THE SENATE OF THE UNITED STATES

MARCH 8 (legislative day, FEBRUARY 22), 1994

Mr. RIEGLE (for himself and Mr. SASSER (by request)) introduced the following bill; which was read twice and referred to the Committee on Banking,

Housing, and Urban Affairs

A BILL

To improve the administration of export controls, 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,

TABLE OF CONTENTS

Page

Sec. 1. Title ............................................................................................... 6

Sec. 2. Findings ......................................................................................... 6

Sec. 3. Policy statement ............................................................................ 11

Sec. 4. General provisions ......................................................................... 21

(a) Types of licenses .......................................................................... 21

(b) Control list ................................................................................... 21

(c) Militarily critical technologies list ................................................ 21

(d) Right of export ............................................................................. 21

(e) Delegation of authority ................................................................ 22

(f) Notification of the public; consultation with business .................. 22

(g) Technical advisory committees ..................................................... 22

(h) Fees .............................................................................................. 25

Sec. 5. Nonproliferation, national security, and foreign policy control authorities .................................................................................................. 25

(a) Authority ...................................................................................... 25
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(b) Criteria ......................................................................................... 28

(c) Consultation with industry ........................................................... 32

(d) Consultation with other countries ................................................ 33

(e) Consultations with the Congress .................................................. 33

(f) Multilateral control regimes ......................................................... 35

(1) Policy .................................................................................... 35

(2) Standards for national systems ............................................ 36

(3) Standards for multilateral regimes ...................................... 37

(A) Full membership .......................................................... 37

(B) Effective enforcement and compliance ........................ 37

(C) Public understanding ................................................... 38

(D) Effective implementation procedures ........................... 38

(E) Enhanced cooperation among regime members ........... 38

(F) Periodic high-level meetings ......................................... 38

(G) Common list of controlled items .................................. 39

(4) Incentives for partnership .................................................... 39

(g) Publication of elements of multilateral control regimes .............. 39

(h) Seeking multilateral support for unilateral controls .................... 40

(i) Regulation indicating nature of unilateral controls ...................... 41

(j) Implementation ............................................................................. 41

(1) Nonproliferation ................................................................... 41

(A) Countries participating in certain agreements ............ 41

(B) Other countries ............................................................ 42

(2) Missile technology ................................................................ 42

(3) Chemical and biological weapons ......................................... 43

(4) International terrorism ........................................................ 44

(5) Human rights and crime control .......................................... 47

(k) Unfair impact on United States exporter .................................... 48

(1) Policy .................................................................................... 48

(2) Relief from export controls .................................................. 48

(A) Foreign availability ...................................................... 49

(B) Ineffective controls ....................................................... 49

(C) Competitive disadvantage ............................................. 49

(3) Provisions for relief .............................................................. 50

(4) Exceptions from relief .......................................................... 52

(5) Relief from traditional East-West COCOM controls ........... 52

(6) Procedures ............................................................................ 53

(A) Notice of assessments .................................................. 53

(B) Procedures for making determinations ........................ 53

(C) Negotiations to eliminate foreign availability .............. 56

(7) Sharing of information ......................................................... 57

(8) Availability defined ............................................................... 58

(9) Congressional notification and reporting requirements ....... 58

(l) Unilateral controls prohibited ....................................................... 59

(m) International obligations ............................................................. 60

(n) Information sharing ..................................................................... 61

(o) Denied parties, sanctioned parties, specially designated nationals, and other parties presenting unacceptable risks of diversion 61

(1) Denied parties, sanctioned parties, specially designated nationals ..................................................................................... 61

(2) Other parties ........................................................................ 61

(p) Freedom of Information Act exemption ...................................... 61

Sec. 6. Short supply controls ..................................................................... 62

(a) Authority ...................................................................................... 62

(b) Monitoring .................................................................................... 63
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(c) Domestically-produced crude oil ................................................... 64

(d) Agricultural commodities ............................................................. 67

(e) Barter agreements ........................................................................ 73

(f) Unprocessed red cedar .................................................................. 74

(g) Effect of controls on existing contracts ....................................... 75

(h) Oil exports for use by United States military facilities ............... 76

Sec. 7. Foreign boycotts ............................................................................ 76

(a) Prohibitions and exceptions ......................................................... 76

(b) Regulations .................................................................................. 82

(c) Preemption ................................................................................... 84

Sec. 8. Procedures for processing export license applications; other inquiries .................................................................................................... 84

(a) Primary responsibility of the Secretary ....................................... 84

(b) Initial screening ........................................................................... 86

(c) Action by other departments and agencies .................................. 87

(d) Interagency resolution .................................................................. 89

(e) Actions by the Secretary .............................................................. 90

(f) Multilateral controls ..................................................................... 91

(g) Exceptions from required time periods ........................................ 92

(1) Agreement of the applicant .................................................. 92

(2) Prelicense checks .................................................................. 92

(3) Requests for government-to-government assurances ........... 93

(4) Multilateral review ............................................................... 93

(5) Congressional notification .................................................... 94

(h) Appeals ......................................................................................... 94

(i) Classification requests and other inquiries ................................... 95

Sec. 9. Violations ....................................................................................... 95

(a) Criminal penalties ........................................................................ 95

(b) Forfeiture of property interest and proceeds ............................... 97

(c) Civil penalties; administrative sanctions ...................................... 98

(d) Procedures relating to civil penalties and sanctions .................... 98

(e) Payment of civil penalties ............................................................ 99

(f) Refunds ......................................................................................... 100

(g) Collection ...................................................................................... 100

(h) Prior convictions .......................................................................... 100

(i) Statute of limitations .................................................................... 102

(j) Imposition of temporary denial orders ......................................... 102

(k) Violations defined by regulation .................................................. 105

(l) Other authorities ........................................................................... 105

Sec. 10. Enforcement ................................................................................ 106

(a) General authority and designation ............................................... 106

(b) Forfeiture ..................................................................................... 111

(c) Undercover investigative operations ............................................. 112

(d) Reference to enforcement ............................................................. 116

Sec. 11. Authority and procedures ............................................................ 117

(a) Under Secretary of Commerce ..................................................... 117

(b) Regulations .................................................................................. 117

(c) Confidentiality of information ...................................................... 118

(1) Exemptions from disclosure ................................................. 118

(2) Information to Congress and GAO ...................................... 119

(3) Commerce/customs information exchange ............................ 122

(4) Penalties for disclosure of confidential information ............ 122

(d) Public participation ...................................................................... 123

(e) Control list development and review ............................................ 123

(f) Authority for seminar and publications fund ............................... 126
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(g) Support of other countries’ Export Control Program ................. 127

(h) Applicability of Administrative Procedures Act ........................... 127

(1) Exemption ............................................................................ 127

(2) Judicial review ...................................................................... 127

(i) Incorporated commodities, technology, and software ................... 129

(1) Commodities containing controlled parts and components 129

(2) Reexports of foreign-made items incorporating United

States items ............................................................................ 130

(j) Exceptions for medical and humanitarian purposes ..................... 132

(k) Sanctity of existing contracts and licenses .................................. 132

(l) Fact-finding authority .................................................................. 133

(m) Militarily critical technologies list development, review and use 135

Sec. 12A. Sanctions for proliferation activity and the use of chemical

and biological weapons and missiles ...................................................... 137

(a) Determinations ............................................................................. 137

(1) Determination of activity supporting the proliferation of

chemical and biological weapons and missiles ........................ 137

(2) Determination of use of chemical or biological weapons ..... 138

(b) Persons against which sanctions are to be imposed .................... 139

(c) Sanctions ...................................................................................... 139

(1) Mandatory sanctions ............................................................ 139

(2) Discretionary sanctions ........................................................ 140

(3) Mandatory sanctions for use of chemical or biological

weapons .................................................................................. 141

(A) Foreign assistance ....................................................... 141

(B) Arms sales .................................................................... 141

(C) Arms sales financing .................................................... 142

(D) Denial of United States Government credit or other

financial assistance ......................................................... 142

(E) Exports of national security-sensitive items ................ 142

(4) Additional sanctions if certain conditions not met .............. 142

(5) Additional sanctions for use of chemical or biological weapons .......................................................................................... 143

(A) Multilateral Development Bank assistance .................. 144

(B) Bank loans ................................................................... 144

(C) Further export restrictions .......................................... 144

(D) Import restrictions ....................................................... 144

(E) Diplomatic relations ..................................................... 145

(F) Presidential action regarding aviation ......................... 145

(d) Deferral and limitation ................................................................ 147

(e) Exceptions .................................................................................... 149

(f) Termination of sanctions for using chemical or biological weapons .................................................................................................. 151

(g) Waiver .......................................................................................... 152

(1) Criterion for waiver .............................................................. 152

(2) Notification of and report to Congress ................................ 152

(h) Regulatory implementation of sanctions ...................................... 152

Sec. 12B. Sanctions for proliferation activity and the use of chemical

and biological weapons ........................................................................... 153

‘‘Sec. 72. Sanctions against certain foreign persons and countries 153

‘‘(a) Determinations ................................................................... 153

‘‘(1) Determination of activity supporting the proliferation of chemical and biological weapons and missiles .... 153

‘‘(2) Determination of use of chemical or biological weapons .................................................................................. 155
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‘‘(b) Persons against which sanctions are to be imposed .......... 155

‘‘(c) Sanctions ............................................................................ 155

‘‘(1) Mandatory sanctions .................................................. 156

‘‘(2) Discretionary sanctions .............................................. 156

‘‘(3) Mandatory sanctions for use of chemical or biological

weapons ........................................................................... 157

‘‘(A) Foreign assistance .............................................. 157

‘‘(B) Arms sales .......................................................... 157

‘‘(C) Arms sales financing .......................................... 158

‘‘(D) Denial of United States Government credit or

other financial assistance ................................................ 158

‘‘(E) Exports of national security-sensitive items ...... 158

‘‘(4) Additional sanctions if certain conditions not met ..... 158

‘‘(5) Additional sanctions for useof chemical or biological

weapons ........................................................................... 159

‘‘(A) Multilateral Development Bank assistance ........ 160

‘‘(B) Bank loans ......................................................... 160

‘‘(C) Further export restrictions ................................. 160

‘‘(D) Import restrictions ............................................. 160

‘‘(E) Diplomatic relations ........................................... 161

‘‘(F) Presidential action regarding aviation ............... 161

‘‘(d) Deferral and limitation ...................................................... 163

‘‘(e) Exceptions .......................................................................... 165

‘‘(f) Termination of sanctions for using chemical or biological

weapons .................................................................................. 167

‘‘(g) Waiver ................................................................................ 168

‘‘(1) Criterion for waiver .................................................... 168

‘‘(2) Notification of and report to Congress ...................... 168

‘‘(h) Regulatory implementation of sanctions ............................ 168

Sec. 13. Annual Report ............................................................................. 169

Sec. 14. Definitions ................................................................................... 171

Sec. 15. Effects on Other Acts .................................................................. 178

(a) Commodity jurisdiction ................................................................ 178

(1) Coordination of controls ....................................................... 178

(2) Elimination of overlapping controls ..................................... 179

(3) Commodity jurisdiction dispute resolution ........................... 179

(b) In general ..................................................................................... 180

(c) Amendments to the International Emergency Economic Powers

Act .................................................................................................. 180

(d) Civil aircraft equipment ............................................................... 184

(e) Nuclear nonproliferation controls ................................................. 184

(f) Conforming amendment to the Arms Export Control Act ........... 185

(g) Effect on section 38(e) of the Arms Export Control Act ............ 190

Sec. 16. Authorization of appropriations .................................................. 190

Sec. 17. Effective date ............................................................................... 191

Sec. 18. Savings provision ......................................................................... 191

(a) In general ..................................................................................... 191

(b) Repeal .......................................................................................... 191

(c) Administrative proceedings .......................................................... 191
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1 SECTION 1. TITLE.

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

3 Act of 1994’’ and shall hereafter be referred to as the Act.

4 SEC. 2. FINDINGS.

5 The Congress makes the following findings:

6 (1) Export controls shall be a part of a com7 prehensive response to national security threats.

8 United States exports should be restricted only for

9 significant national security, nonproliferation, and

10 foreign policy reasons.

11 (2) The proliferation of weapons of mass de12 struction, their delivery systems, and other signifi13 cant military capabilities has become one of the most

14 serious threats to world peace and to our national

15 security.

16 (3) Since growing exports are essential to fu17 ture economic growth, restrictions on exports must

18 be evaluated in terms of their effects on the United

19 States economy. Economic interests must play a key

20 role in decisions on export controls and the rigor of

21 economic analysis and data available in the decision22 making process must be enhanced.

23 (4) Exports of certain commodities, technology,

24 and software may adversely affect the national secu25 rity and foreign policy of the United States, by mak26 ing a significant contribution to the military poten-
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1 tial of individual countries or by disseminating the

2 capability to design, develop, test, produce, stockpile,

3 or use weapons of mass destruction, missile delivery

4 systems, and other significant military capabilities.

5 The administration of export controls should empha6 size the control of exports that could make a signifi7 cant contribution to the military potential of any

8 country which would be detrimental to the national

9 security and foreign policy of the United States and

10 the control of items that could disseminate the capa11 bility to produce and use weapons of mass destruc12 tion, missile delivery systems, and other significant

13 military capabilities.

14 (5) The acquisition of sensitive commodities,

15 technology, and software by those countries and end

16 users whose actions or policies run counter to

17 United States national security or foreign policy in18 terests may enhance the military-industrial capabili19 ties of those countries, particularly their ability to

20 design, develop, test, produce, stockpile, use, and de21 liver nuclear, chemical, and biological weapons, mis22 sile delivery systems, and other significant military

23 capabilities. This enhancement threatens the secu24 rity of the United States, its allies, and other friend25 ly nations, and places additional demands on the de-
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1 fense budget of the United States. Availability to

2 certain countries and end users of items that con3 tribute to military capabilities or the proliferation of

4 weapons of mass destruction is a fundamental con5 cern of the United States and should be eliminated

6 through negotiations and other appropriate means

7 whenever possible.

8 (6) The national security of the United States

9 depends not only on wise foreign policies and a

10 strong defense, but also a vibrant national economy.

11 To be truly effective, export controls should be ap12 plied uniformly by all suppliers.

13 (7) The United States export control system

14 must not be overly restrictive or bureaucratic, or un15 dermine the competitive position of American indus16 try. The export control system must be efficient, re17 sponsive, transparent, and effective.

18 (8) Export controls should be focused on those

19 items that materially contribute to a country’s or

20 end user’s military or proliferation potential. The

21 United States must pursue the maximum effective22 ness of multilateral export control regimes, including

23 comprehensive enforcement measures. The United

24 States recognizes the important of comprehensive

25 enforcement measures to maximize the effectiveness
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1 of multilateral controls. Therefore, the United States

2 must level the playing field for United States trade

3 and enhance the effectiveness of controls by pursu4 ing multilateral controls and harmonizing their im5 plementation.

6 (9) Except in the event the United States is the

7 sole source of critical supplies, unilateral export con8 trols may not be truly effective in influencing the be9 havior of other governments and impeding access by

10 target countries to controlled items. Unilateral con11 trols may therefore impede access to United States

12 sources of supply without affecting the ability of tar13 get countries to obtain controlled items elsewhere.

14 Unilateral controls may therefore permit foreign

15 competitors to serve markets the United States Gov16 ernment denies to American firms and workers and

17 impair the reliability of United States suppliers in

18 comparison with their foreign competitors.

19 (10) While the United States may at times have

20 to act unilaterally, we should strive to avoid unilat21 eral action if it damages United States commercial

22 interests without effectively promoting our non23 proliferation and other national security and foreign

24 policy objectives. At the same time, the need to lead

25 the international community or overriding national
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1 security or foreign policy interests may justify uni2 lateral controls in specific cases.

3 (11) The multilateral export control system,

4 which helped contain military threats posed by the

5 former Soviet Bloc countries, should be replaced by

6 an effective and efficient multilateral export control

7 program furthering vital interests of the United

8 States in the post-Cold War era.

9 (12) International treaties, such as the Chemi10 cal Weapons Convention, and international agree11 ments and arrangements intended to control, lessen

12 or eliminate weapons of mass destruction should be

13 fully implemented by, inter alia, imposing restric14 tions on imports and exports of designated items, es15 tablishing, monitoring and transmitting reports on

16 the production, processing, consumption, export and

17 import of designated items, and complying with ver18 ification regimes mandated by such treaties, agree19 ments, and arrangements.

20 (13) Restrictions that negatively affect the

21 United States industrial base may ultimately weaken

22 United States military capabilities and lead to de23 pendencies on foreign sources for key components.

24 The availability of certain items in the United States
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1 and from abroad may affect the welfare of the do2 mestic economy.

3 (14) It is important that the administration of

4 export controls imposed for foreign policy purposes

5 give special emphasis to the need to control exports

6 of items and substances hazardous to the public

7 health and the environment which are banned or se8 verely restricted for use in the United States, and

9 which, if exported, could affect the international rep10 utation of the United States as a responsible trading

11 partner.

12 SEC. 3. POLICY STATEMENT.

13 It is the policy of the United States:

14 (1) To minimize uncertainties in export control

15 policy and to encourage trade with all countries with

16 which the United States has diplomatic or trading

17 relations, except those countries with which such

18 trade has been determined by the President to be

19 against the national interest.

20 (2) That the United States should not restrict

21 export trade by its citizens except when necessary

22 for significant national security, non-proliferation,

23 foreign policy, or short supply objectives and such

24 restrictions are administered consistent with basic

25 standards of fairness, and are implemented only
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1 after full consideration of the impact on the economy

2 of the United States and only to the extent nec3 essary—

4 (A) to stem the proliferation of weapons of

5 mass destruction and the means to deliver them

6 by—

7 (i) leading international efforts to con8 trol the proliferation of chemical and bio9 logical weapons, nuclear explosive devices,

10 missile delivery systems, and other signifi11 cant military capabilities;

12 (ii) controlling involvement and con13 tributions by United States persons to for14 eign programs intended to design, develop,

15 test, produce, stockpile, or use chemical

16 and biological weapons, nuclear explosive

17 devices, missile delivery systems, and other

18 significant military capabilities and the

19 means to design, develop, test, produce,

20 stockpile, or use them; and

21 (iii) implementing international agree22 ments and arrangements that provide for

23 controls on imports and exports of des24 ignated items, reports on the production,

25 processing, consumption, exports and im-
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1 ports of such items, and compliance with

2 verification programs;

3 (B) to restrict the export of items that

4 would make a significant contribution to the

5 military potential of countries that would prove

6 detrimental to the national security and foreign

7 policy of the United States;

8 (C) to restrict the export of items where

9 necessary to significantly further the foreign

10 policy of the United States or to fulfill its de11 clared international commitments; and

12 (D) to restrict the export of items where

13 necessary to protect the domestic economy from

14 the excessive drain of scarce materials or to se15 cure the removal by foreign countries of restric16 tions on access to supplies where such restric17 tions have or may have a serious inflationary

18 impact, have caused or may cause a serious do19 mestic shortage, or have been imposed for pur20 poses of influencing the foreign policy of the

21 United States.

22 (3) To further increase the reliance of the

23 United States upon multilateral coordination of con24 trols through effective control regimes that maintain

25 lists of controlled items that are truly critical to the
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1 control objectives, strive to increase membership to

2 include all relevant countries, maintain common cri3 teria and procedures for licensing, and harmonize

4 member countries’ licensing practices. It is the pol5 icy of the United States that multilateral controls

6 are the best means of achieving the objectives of the

7 United States.

8 (4) To encourage all countries that produce

9 items that are controlled by multilateral regimes to

10 adhere to the guidelines and controls of the regimes

11 and to join the regime if they meet the relevant cri12 teria for membership.

13 (5) To make every effort to achieve effective

14 multilateral export controls in all cases where the

15 United States imposes export controls.

16 (6) To avoid unilateral export controls and poli17 cies except when dictated by overriding national in18 terests, to continue to work with other supplier na19 tions to make export controls multilateral and to

20 harmonize their implementation, and to avoid unilat21 eral action if it damages United States commercial

22 interests without effectively promoting our non23 proliferation and other national security and foreign

24 policy objectives. The United States will therefore
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1 impose unilateral export controls only when the fol2 lowing conditions are met:

3 (A) Diplomatic efforts have failed or clear4 ly would be unsuccessful in establishing a multi5 lateral regime.

6 (B) The national security, nonproliferation,

7 or foreign policy objectives expected to be

8 achieved by the unilateral control justify any

9 expected loss of sales, jobs, and reliability on

10 the part of United States exporters.

11 (7) To eliminate unilateral dual-use export con12 trols and policies unless their continuation in force

13 is essential to United States national security, non14 proliferation, or foreign policy interests.

15 (8) To eliminate unnecessary and ineffective ex16 port controls.

17 (9) To make all licensing decisions in a timely

18 manner so undue delays in the licensing process will

19 not cause a United States firm to lose an export

20 sale.

21 (10) To ensure that control lists are periodically

22 updated to reflect the changing proliferation threat,

23 advances in technology, and a realistic appraisal of

24 what is beyond the reach of effective control.
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1 (11) To maintain a presumption of approval of

2 applications for authority to export dual-use goods

3 to civil end uses and end users under this Act, ab4 sent sound reasons for denial based on national se5 curity, nonproliferation and foreign policy grounds,

6 based upon the commitment of the United States to

7 an open international trading system and the need

8 to ensure American competitiveness.

9 (12) To use export controls to encourage other

10 countries to take immediate steps to prevent the use

11 of their territories or resources to aid, encourage or

12 give sanctuary to those persons directing, supporting

13 or participating in acts of international terrorism.

14 To achieve this objective, the President shall make

15 reasonable and prompt efforts to secure the removal

16 or reduction of such assistance to international ter17 rorists through international cooperation and agree18 ment before imposing export controls.

19 (13) To sustain vigorous scientific enterprise.

20 To do so involves sustaining the ability of scientists

21 and other scholars freely to communicate research

22 findings, in accordance with the applicable provisions

23 of law, by means of publication, teaching, con24 ferences, and other forms of scholarly exchange.
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1 (14)(A) To oppose restrictive trade practices or

2 boycotts fostered or imposed by foreign countries

3 against other countries friendly to the United States

4 or against any United States person; and

5 (B) To encourage and, in specified cases, re6 quire United States persons engaged in the export of

7 commodities, software, technology and other infor8 mation to refuse to take actions, including furnish9 ing information or entering into or implementing

10 agreements, which have the effect of furthering or

11 supporting the restrictive trade practices or boycotts

12 fostered or imposed by any foreign country against

13 a country friendly to the United States or against

14 any United States person.

15 (15) To ensure that United States economic in16 terests play a key role in decisions on export controls

17 and to take immediate action to increase the rigor

18 of economic analysis and data available in the deci19 sionmaking process.

20 (16) To streamline export licensing functions

21 and thereby better serve the exporting public by re22 ducing and eliminating overlapping, conflicting, and

23 inconsistent regulatory burdens; and further, to cre24 ate a more efficient, responsive, transparent, and ef25 fective export control process.
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1 (17) To cooperate with other countries with

2 which the United States has defense treaty commit3 ments or common strategic objectives in restricting

4 the export of goods and technology which would

5 make a significant contribution to the military po6 tential of any country or combination of countries

7 which would prove detrimental to the national secu8 rity of the United States and of those countries with

9 which the United States has defense treaty commit10 ments or common strategic objectives, and to en11 courage other friendly countries to cooperate in re12 stricting the sale of goods and technology that can

13 harm our mutual security.

14 (18) To promote the national security of the

15 United States which requires that the Nation’s econ16 omy shall flourish, its geographic integrity is main17 tained, its political and foreign policy views are re18 spected, the freedom and well-being of its citizens

19 are assured, and that American values are pre20 served. The United States as a world power must

21 protect its national security against direct and indi22 rect threats through the promotion of nonprolifera23 tion policies in all areas of the world.

24 (19) To implement export controls and diplo25 matic activity needed to sustain multilateral and bi-
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1 lateral activities and thereby complement and rein2 force each other.

3 (20) To enhance the national security and non4 proliferation interests of the United States. To this

5 end and consistent with the other policies of this sec6 tion and the criteria of section 5(b) of this Act, the

7 United States will use multilateral and unilateral

8 controls when necessary to ensure that access to

9 weapons of mass destruction, missile delivery sys10 tems, and other significant military capabilities is re11 stricted. While the multilateral nonproliferation re12 gimes will be the primary instruments through which

13 the United States will pursue its nonproliferation

14 goals, it will also engage in bilateral agreements and,

15 when consistent with the policies of this section and

16 the criteria of section 5(b), take unilateral action.

17 (21) To defer and punish acts of international

18 terrorism and to encourage other countries to take

19 immediate steps to do so, or to terminate their sup20 port for, encouragement of, or use of their territories

21 to aid or give sanctuary to, persons and groups in22 volved in international terrorism. To this end and

23 consistent with the policies of this section and the

24 criteria of section 5(b) of this Act, the United States

25 should distance itself from countries that have vio-
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1 lated international norms of behavior by repeatedly

2 supporting acts of international terrorism by re3 stricting exports to those countries. The United

4 States may establish such controls on exports as

5 may be appropriate to induce such countries to

6 change their unacceptable policies.

7 (22) To promote international peace, stability,

8 and respect of fundamental human rights. The

9 United States may establish controls on exports to

10 countries that threaten regional stability, abuse of

11 fundamental rights of their citizens, or to promote

12 other important foreign policy objectives of the

13 United States consistent with the policies of this sec14 tion and the criteria of section 5(b) of this Act.

15 (23) In developing changes to multilateral con16 trol lists, to seek to focus controls on only that set

17 of items that, if taken together and if denied to tar18 get countries, would carry out the policy of the

19 United States to deny such countries the ability to

20 design, develop, test, produce, stockpile, or use rel21 evant conventional military capability, weapons of

22 mass destruction, their delivery systems, or other ca23 pabilities the denial of which are the goals of United

24 States export control policy.
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1 SEC. 4. GENERAL PROVISIONS.

2 (a) TYPES OF LICENSES.—The Secretary may re3 quire any type of validated or general license under such

4 terms and conditions as may be imposed by the Secretary

5 for the effective and efficient implementation of this Act.

6 (b) CONTROL LIST.—In accordance with the proce7 dures specified in sections 5 and 11 of this Act, the Sec8 retary shall establish and maintain a list (hereinafter in

9 this Act referred to as the ‘‘Commerce Control List’’ or

10 ‘‘Control List’’) stating license requirements for exports

11 of items under this Act.

12 (c) MILITARILY CRITICAL TECHNOLOGIES LIST.—

13 The Secretary of Defense shall bear primary responsibility

14 for establishing and maintaining the Militarily Critical

15 Technologies List (hereinafter in the Act referred to as

16 the ‘‘MCTL’’) identifying equipment and technologies crit17 ical to the design, development, test, production, stock18 piling, or use of weapons of mass destruction and other

19 significant military capabilities, including nuclear, biologi20 cal and chemical weapons, and manned and unmanned ve21 hicles capable of delivering such weapons.

22 (d) RIGHT OF EXPORT.—No authority or permission

23 to export may be required under this Act, or under regula24 tions issued under this Act, except to carry out the policies

25 set forth in section 3 of this Act.
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1 (e) DELEGATION OF AUTHORITY.—The President

2 may delegate the power, authority, and discretion con3 ferred upon him by this Act to such departments, agen4 cies, or officials of the Government as he may consider

5 appropriate, except that no authority under this Act may

6 be delegated to, or exercised by, any official of any depart7 ment or agency the head of which is not appointed by the

8 President, by and with the advice and consent of the

9 Senate.

10 (f) NOTIFICATION OF THE PUBLIC; CONSULTATION

11 WITH BUSINESS.—The Secretary shall keep the public

12 fully apprised of changes in export control policy and pro13 cedures instituted in conformity with this Act with a view

14 to encouraging trade. The Secretary shall meet regularly

15 with representatives of a broad spectrum of enterprises,

16 labor organizations, and citizens interested in or affected

17 by export controls, in order to obtain their views on United

18 States export control policy and the foreign availability of

19 items subject to controls.

20 (g) TECHNICAL ADVISORY COMMITTEES.—

21 (1) Upon his or her own initiative or upon writ22 ten request by representatives of a substantial seg23 ment of any industry which produces any items sub24 ject to export controls under this Act or being con25 sidered for such controls, the Secretary shall appoint
23

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1 technical advisory committees. Such technical advi2 sory committees shall advise the United States on all

3 aspects of controls imposed or proposed under this

4 Act. Each such committee shall consist of represent5 atives of United States industry and Government,

6 including the Department of Commerce and such

7 other departments and urgencies as appropriate.

8 The Secretary shall permit the widest possible par9 ticipation by the business community on the tech10 nical advisory committees.

11 (2) Technical advisory committees established

12 under paragraph (1) shall advise and assist the Sec13 retary and any other department, agency, or official

14 of the Government of the United States to which the

15 President delegates authority under this Act, on ac16 tions designed to carry out the policies of this Act.

17 Such committees, where they have expertise in such

18 matters, shall be consulted on questions involving

19 (A) technical matters, (B) worldwide availability and

20 actual utilization of production technology, (C) li21 censing procedures which affect the level of export

22 controls applicable to any items, (D) revisions of the

23 Control List (as provided in subsection (b), including

24 proposed revisions of multilateral controls in which

25 the United States participates), (E) the issuance of
24

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1 regulations, (F) the impact and interpretation of ex2 isting regulations, (G) processes and procedures for

3 review of licenses and policy, and (H) any other

4 questions relating to actions designed to carry out

5 this Act. Nothing in this subsection shall prevent the

6 United States Government from consulting, at any

7 time, with any person representing industry or the

8 general public, regardless of whether such person is

9 a member of a technical advisory committee. Mem10 bers of the public shall be given a reasonable oppor11 tunity, pursuant to regulations prescribed by the

12 Secretary, to present evidence to such committees.

13 (3) Upon request of any member of any such

14 committee, the Secretary may, if the Secretary de15 termines it appropriate, reimburse such member for

16 travel, subsistence, and other necessary expenses in17 curred by such member in connection with the duties

18 of such member.

19 (4) Each such committee shall elect a chair20 man, and shall meet at least every 3 months at the

21 call of the chairman, unless the chairman deter22 mines, in consultation with the other members of the

23 committee, that such a meeting is not necessary to

24 achieve the purposes of this subsection. Each such

25 committee shall be terminated after a period of 2
25

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1 years, unless extended by the Secretary for addi2 tional periods of 2 years. The Secretary shall consult

3 each such committee on such termination or exten4 sion of that committee.

5 (5) To facilitate the work of the technical advi6 sory committees, the Secretary, in conjunction with

7 other departments and agencies participating in the

8 administration of this Act, shall disclose to each

9 such committee adequate information, consistent

10 with national security, pertaining to the reasons for

11 the export controls which are in effect or con12 templated for the items or policies for which that

13 committee furnishes advice. Information provided by

14 the technical advisory committees shall not be sub15 ject to disclosure under section 552 of title 5, United

16 States Code, and such information shall not be pub17 lished or disclosed unless the Secretary determines

18 that the withholding thereof is contrary to the na19 tional interest.

20 (h) FEES.—No fee may be charged in connection

21 with the submission or processing of an export license

22 application.

23 SEC. 5. NONPROLIFERATION, NATIONAL SECURITY, AND

24 FOREIGN POLICY CONTROL AUTHORITIES.

25 (a) AUTHORITY.—
26

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1 (1) In order to carry out the policies enumer2 ated in section 3 of this Act, the President may, in

3 accordance with the provisions of this section and

4 section 15(e), prohibit or curtail the export of any

5 item subject to the jurisdiction of the United States

6 or exported by any person subject to the jurisdiction

7 of the United States. The President may regulate

8 domestic and foreign conduct, consistent with the

9 policies of this Act. Such authority shall include, but

10 not be limited to, the authority to prohibit activity

11 such as financing, contracting, servicing or employ12 ment, to deny access to items in the United States

13 and abroad, to conduct audits of records and inspec14 tions of facilities, to compel reports, and to imple15 ment international commitments of the United

16 States with respect to the control of exports.

17 (2) Except as otherwise specified in this Act,

18 the authority contained in this Act shall be exercised

19 by the Secretary, in consultation with appropriate

20 departments and agencies.

21 (3) As directed by the President, annual policy

22 guidance shall be issued to provide detailed imple23 menting guidance to licensing officials in all appro24 priate departments and agencies.
27

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1 (4) To develop the annual policy guidance, ex2 port controls and other regulations to implement

3 policies contained in section 3 shall be reviewed an4 nually. This annual policy review shall include an

5 evaluation of benefits and costs, including economic

6 impact, of export controls. The review should in7 clude—

8 (A) an assessment by the Secretary of

9 Commerce at least 30 days in advance of deter10 minations to extend controls describing the eco11 nomic consequences of the controls during the

12 preceding 12 months, including estimates of

13 any lost United States exports and jobs;

14 (B) an assessment by the Secretary of

15 State at least 30 days in advance of determina16 tions to extend controls describing the objec17 tives of the controls and the extent to which the

18 controls have attained those objectives over the

19 preceding 12 months;

20 (C) an assessment by the Secretary of De21 fense at least 30 days in advance of determina22 tions to extend controls describing the impact

23 export controls have had in the preceding 12

24 months on the national security of the United

25 States;
28

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1 (D) solicitation of public comments for

2 submission of such comments at least 60 days

3 in advance of determinations to extend controls;

4 and

5 (E) a systematic review by the Secretary of

6 the above in consultation with appropriate de7 partments and agencies.

8 (5) Based upon the review required by para9 graph (4) above, the Secretary, in consultation with

10 appropriate departments and agencies, shall deter11 mine at least annually whether the national interest

12 requires that he or she terminate unilateral controls

13 and regulations or maintain them for an additional

14 12 months. Unilateral controls imposed under

15 (b)(1)(B) of this section shall expire by operation of

16 law after one year from the most recent imposition

17 or renewal of such controls unless extended by the

18 Secretary based upon his or her findings consistent

19 with the criteria and other requirements of this Act.

20 Such findings shall be provided to the Congress pur21 suant to subsection (e)(2) of this section.

22 (b) CRITERIA.—

23 (1) Controls may be imposed, expanded or ex24 tended under this section only if the President deter25 mines that—
29

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1 (A) the control is essential to advancing

2 the nonproliferation, national security, or for3 eign policies of the United States provided in

4 section 3 above; and like-minded states have

5 agreed with the United States on the utility of

6 such controls in obtaining a shared objective

7 and procedures for implementing that objective;

8 or

9 (B) the control is essential to advancing

10 the nonproliferation, national security, or for11 eign policies of the United States provided in

12 section 3 above; and the objective of the control

13 is in the overall national interest of the United

14 States and cannot be attained by means other

15 than the control.

16 (2) The President should make the determina17 tion described in subparagraph (1)(B) above for the

18 purpose of imposing or expanding a unilateral con19 trol, only if—

20 (A) such controls are likely to make sub21 stantial progress toward achieving the intended

22 purpose of—

23 (i) changing, modifying or constrain24 ing the undesirable conduct or policies of

25 the target country or countries;
30

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1 (ii) denying access by the target coun2 try to controlled items for all sources;

3 (iii) establishing multilateral coopera4 tion to deny the target country access to

5 controlled items from all sources; or

6 (iv) denying exports or assistance that

7 significantly and directly contribute to the

8 proliferation of weapons of mass destruc9 tion, terrorism, human rights abuses, or

10 regional instability;

11 (B) the proposed controls are compatible

12 with the foreign policy objectives of the United

13 States and with overall United States policy to14 ward the target country;

15 (C) the reaction of other countries to the

16 imposition or expansion of such export controls

17 by the United States is not likely to render the

18 controls ineffective in achieving the intended

19 purpose or to be counter-productive to United

20 States policy interests;

21 (D) the effect of the proposed controls on

22 the export performance of the United States,

23 the competitive position of the United States as

24 a supplier of items, or on the economic well25 being of individual United States companies
31

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1 and their employees and communities does not

2 exceed the benefit to the United States foreign

3 policy, nonproliferation, or national security in4 terests; and

5 (E) the United States has the ability to en6 force the proposed controls effectively.

7 (3) The President should make the determina8 tion described in subparagraph (1)(B) above for the

9 purpose of extending a control, only if—

10 (A) such controls are likely to continue to

11 make substantial progress toward achieving the

12 intended purpose of—

13 (i) changing, modifying or constrain14 ing the undesirable conduct or policies of

15 the target country or countries;

16 (ii) denying access by the target coun17 try to controlled items from all sources;

18 (iii) establishing multilateral coopera19 tion to deny the target country access to

20 controlled items from all sources; or

21 (iv) denying exports or assistance that

22 significantly and directly contribute to the

23 proliferation of weapons of mass destruc24 tion, terrorism, human rights abuses, or

25 regional instability;
32

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1 (B) the impact of the controls has been

2 compatible with the foreign policy objectives of

3 the United States and with overall United

4 States policy toward the target country;

5 (C) the reaction of other countries to the

6 imposition or expansion of such export controls

7 by the United States has not rendered the con8 trols ineffective in achieving the intended pur9 pose and have not been counter-productive to

10 United States policy interests;

11 (D) the effect of the proposed controls on

12 the export performance of the United States,

13 the competitive position of the United States as

14 a supplier of items, and the economic well-being

15 of individual United States companies and their

16 employees and communities has not exceeded

17 the benefit to the United States foreign policy,

18 nonproliferation, or national security interests;

19 and

20 (E) the United States has enforced the

21 controls effectively.

22 (c) CONSULTATION WITH INDUSTRY.—The Sec23 retary, in every possible instance, shall consult with and

24 seek advice from affected United States public, industries,

25 and technical advisory committees and seek public com-
33

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1 ment before the imposition, expansion, or extensions of

2 any export control under this section. Such consultation

3 shall include advice on the criteria set forth in subsection

4 (b) and such other matters as the Secretary considers ap5 propriate.

6 (d) CONSULTATION WITH OTHER COUNTRIES.—

7 When imposing, expanding, or extending export controls

8 under this section, the Secretary of State shall, in con9 sultation with appropriate departments and agencies and

10 at the earliest appropriate opportunity, consult with the

11 countries with which the United States maintains export

12 controls cooperatively and with such other countries as ap13 propriate to advise them of the reasons for the action and

14 to urge them to adopt similar controls.

15 (e) CONSULTATIONS WITH THE CONGRESS.—

16 (1) The Secretary, in consultation with appro17 priate departments and agencies, shall keep the Con18 gress fully apprised of changes in export control pol19 icy and procedures pursuant to this Act. The Sec20 retary or his designates, in consultation with rep21 resentatives of other appropriate departments and

22 agencies, shall consult with the Committee on For23 eign Affairs of the House of Representatives and the

24 Committee on Banking, Housing, and Urban Affairs

25 of the Senate on changes in export control policy,
34

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1 procedures, and other developments related to this

2 Act.

3 (2) The Secretary may not impose, expand, or

4 extend unilateral export controls under this section

5 until the Secretary has submitted to the Congress a

6 report—

7 (A) specifying the purpose of the controls;

8 (B) specifying the determinations of the

9 Secretary described in subsection (b), the bases

10 for such determinations (or considerations), and

11 any possible adverse foreign policy consequences

12 of the controls;

13 (C) describing the nature, the subjects,

14 and the results of, or the plans for, the con15 sultation with industry and the interested pub16 lic pursuant to subsection (c) and with other

17 countries pursuant to subsection (d);

18 (D) specifying the nature and results of

19 any alternative means attempted to achieve the

20 objective of the control, or the reasons for im21 posing, expanding, or extending the controls

22 without attempting any such alternative means;

23 and

24 (E) describing the availability from other

25 countries of items comparable to the items sub-
35

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1 ject to the proposed export controls, and de2 scribing the nature and results of the efforts

3 made to secure the cooperation of foreign gov4 ernments in controlling the foreign availability

5 of such comparable goods or technology.

6 Such report shall also indicate how such controls will

7 further significantly the policies of the United States

8 as set forth in section 3 or will further its declared

9 international obligations.

10 (3) To the extent necessary to further the effec11 tiveness of the export controls, portions of a report

12 required by paragraph (2) may be submitted to the

13 Congress on a classified basis, and shall be subject

14 to the provisions of section 11(c) of this Act. Each

15 such report shall, at the same time it is submitted

16 to the Congress, also be submitted to the General

17 Accounting Office for the purpose of assessing the

18 report’s full compliance with the intent of this sub19 section.

20 (f) MULTILATERAL CONTROL REGIMES.—

21 (1) POLICY.—In order to carry out the policies

22 of section 3 and the criteria of section 5(b), the Sec23 retary of State, in consultation with appropriate de24 partments and agencies, should seek multilateral ar25 rangements that are intended to secure effective
36

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1 achievement of these policies and criteria and in so

2 doing also establish fairer and more predictable com3 petitive opportunities for United States exporters.

4 (2) STANDARDS FOR NATIONAL SYSTEMS.—In

5 the establishment and maintenance of multilateral

6 regimes, the Secretary of State, in consultation with

7 appropriate departments and agencies, shall take

8 steps to attain the cooperation of members in the ef9 fective implementation of export control systems.

10 Such systems should contain the following elements:

11 (A) National laws providing sufficient en12 forcement authorities, civil and criminal pen13 alties, and statutes of limitations sufficient to

14 deter potential violations and punish violators.

15 (B) A program to evaluate export license

16 applications that includes sufficient technical

17 expertise to assess the licensing status of ex18 ports and ensure the reliability of end users.

19 (C) An enforcement mechanism that pro20 vides authority for trained enforcement officers

21 to investigate and prevent illegal exports.

22 (D) A system of export control documenta23 tion to verify the movement of items.
37

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1 (E) Procedures for the coordination and

2 exchange of information concerning licensing,

3 end users, and enforcement.

4 (F) Adequate national resources devoted to

5 subparagraphs (A) through (E) of this sub6 section.

7 (3) STANDARDS FOR MULTILATERAL RE8 GIMES.—In the establishment and maintenance of

9 multilateral regimes, the Secretary of State, in con10 sultation with appropriate departments and agen11 cies, shall seek, consistent with the policies of section

12 3 and the criteria of section 5(b), the following fea13 tures for the multilateral control regimes in which

14 the United States participates:

15 (A) FULL MEMBERSHIP.—Achieve mem16 bership of all supplier countries whose policies

17 and activities are consistent with the objectives

18 and membership criteria of the multilateral ar19 rangement.

20 (B) EFFECTIVE ENFORCEMENT AND COM21 PLIANCE.—Promote enforcement and compli22 ance with the rules and guidelines of the mem23 bers of the regime through maintenance of an

24 effective control list.
38

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1 (C) PUBLIC UNDERSTANDING.—Enhance

2 public understanding of each regime’s purpose

3 and procedures.

4 (D) EFFECTIVE IMPLEMENTATION PROCE5 DURES.—Achieve procedures for effective imple6 mentation of the regime rules and guidelines

7 through uniform and consistent interpretations

8 of export controls agreed to by the governments

9 participating in the regime.

10 (E) ENHANCED COOPERATION AMONG RE11 GIME MEMBERS.—Reach agreement to enhance

12 cooperation among members of the regime in

13 obtaining the agreement of governments outside

14 the regime to restrict the export of items con15 trolled by the regime, to establish an ongoing

16 mechanism in the regime to coordinate planning

17 and implementation of export control measures

18 related to such agreements, and to remove

19 items from the list if the control of such items

20 no longer serves the objectives of the members

21 of the regime.

22 (F) PERIODIC HIGH-LEVEL MEETINGS.—

23 Conduct periodic meetings of high-level rep24 resentatives of participating governments for

25 the purpose of coordinating export control poli-
39

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1 cies and issuing policy guidance to the regime

2 members.

3 (G) COMMON LIST OF CONTROLLED

4 ITEMS.—Reach agreement on a common list of

5 items controlled by the regime.

6 (4) INCENTIVES FOR PARTNERSHIP.—Consist7 ent with the policies of this Act and consistent with

8 the objectives, rules and guidelines of the individual

9 regime—

10 (A) the Secretary, in consultation with ap11 propriate departments and agencies, may pro12 vide for exports free of validated license require13 ments to and among members of a multilateral

14 regime for items subject to controls under such

15 a multilateral regime; and

16 (B) the Secretary, in consultation with ap17 propriate departments and agencies, may adjust

18 licensing policies for access to items controlled

19 pursuant to this Act depending on a country or

20 other entity’s degree of adherence to the export

21 control policies of section 5.

22 (g) PUBLICATION OF ELEMENTS OF MULTILATERAL

23 CONTROL REGIMES.—Consistent with arrangements in

24 multilateral regimes, the United States shall publish the

25 following information:
40

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1 (1) Purpose(s) of the control regime.

2 (2) Member countries.

3 (3) Licensing policy.

4 (4) Items subject to controls together with all

5 public notes, understandings, and other aspects of

6 such agreement and all changes thereto.

7 (5) Target countries or regions (if any), target

8 end uses, and target end users (including projects of

9 concern).

10 (6) Rules of interpretation.

11 (7) Major policy actions.

12 (8) The rules and procedures of the regime for

13 establishing and modifying the above elements of the

14 regime and for reviewing export license applications

15 as provided for by the regime.

16 Subject to commitments required by multilateral regimes,

17 within 6 months after the date of the enactment of this

18 Act or thereafter within 2 months of joining or organizing

19 a new multilateral regime, the Secretary, in consultation

20 with appropriate departments and agencies, shall publish

21 the above information. In addition, the Secretary shall

22 publish changes in the above information within 2 months

23 of adoption of such changes by a regime.

24 (h) SEEKING MULTILATERAL SUPPORT FOR UNILAT25 ERAL CONTROLS.—For all unilateral controls, the Sec-
41

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1 retary of State, in consultation with appropriate depart2 ments and agencies, shall have a continuing duty to seek

3 support for such controls by other countries and by effec4 tive multilateral control regimes.

5 (i) REGULATION INDICATING NATURE OF UNILAT6 ERAL CONTROLS.—Regardless of the reason for control,

7 all unilateral controls shall be indicated as such by regula8 tion.

9 (j) IMPLEMENTATION.—

10 (1) NONPROLIFERATION.—

11 (A) COUNTRIES PARTICIPATING IN CER12 TAIN AGREEMENTS.—The Secretary of State, in

13 consultation with appropriate departments and

14 agencies, shall be responsible for conducting ne15 gotiations with those countries participating in

16 the groups known as the Coordinating Commit17 tee, the Missile Technology Control Regime

18 (‘‘MTCR’’), the Australia Group, the Nuclear

19 Suppliers’ Group, and other regimes that may

20 be established, regarding their cooperation in

21 restricting the export of items in order to carry

22 out the policies set forth in section 3.

23 Such negotiations shall cover, among other issues,

24 which items should be subject to multilaterally

25 agreed export restrictions, and the implementation
42

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1 of the restrictions consistent with the principles in

2 this Act.

3 (B) OTHER COUNTRIES.—The Secretary of

4 State, in consultation with appropriate depart5 ments and agencies, shall be responsible for

6 conducting negotiations with countries and

7 groups of countries not referred to in subpara8 graph (A) regarding their cooperation in re9 stricting the export of items consistent with

10 purposes set forth in this Act.

11 (2) MISSILE TECHNOLOGY.—The Secretary,

12 consistent with section 3, section 5(b), section 5(f),

13 and in consultation with appropriate departments

14 and agencies—

15 (A) shall, consistent with section 11(e), es16 tablish and maintain, as part of the Control

17 List, dual-use items on the MTCR Annex;

18 (B) may include, as part of the Control

19 List, items that would provide a material con20 tribution to the design, development, test, pro21 duction, stockpiling, or use of missile delivery

22 systems, which items are not included in the

23 MTCR Annex but which the United States pro24 poses to the other MTCR adherents for inclu25 sion in the MTCR Annex; and
43

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1 (C) shall require an individual validated li2 cense, consistent with MTCR arrangements,

3 for—

4 (i) any export of items on the list re5 ferred to under paragraph (2) to any coun6 try, except as provided for in subsection

7 (f)(4) of this section; and

8 (ii) any export of items that the ex9 porter knows is destined for a project or

10 facility for the design, development, or

11 manufacture of a missile in a country that

12 is not an MTCR adherent.

13 (3) CHEMICAL AND BIOLOGICAL WEAPONS.—

14 The Secretary, consistent with section 3, section

15 5(b), section 5(f), and in consultation with appro16 priate departments and agencies—

17 (A) shall, consistent with section 11(e), es18 tablish and maintain, as part of the Control

19 List, dual-use items listed by the Australia

20 Group or by the Chemical Weapons Convention;

21 (B) may include, as part of the Control

22 List, items that would provide a material con23 tribution to the design, development, test, pro24 duction, stockpiling, or use of chemical or bio25 logical weapons, which items are not listed by
44

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1 the Australia Group but which the United

2 States proposes to the other Australia Group

3 adherents for inclusion in its list of controlled

4 items; and

5 (C) shall require an individual validated li6 cense, consistent with the arrangements in the

7 Australia Group and the Chemical Weapons

8 Convention, for—

9 (i) any export of items on the list re10 ferred to under paragraph (3) to any coun11 try, except as provided for in subsection

12 (f)(4) of this section; and

13 (ii) any export of items that the ex14 porter knows is destined for a project or

15 facility for the design, development, or

16 manufacture of a chemical or biological

17 weapon.

18 (4) INTERNATIONAL TERRORISM.—

19 (A) A validated license shall be required

20 for the export of items to a country if the Sec21 retary of State has made the following deter22 minations:

23 (i) The government of such country

24 has repeatedly provided support for acts of

25 international terrorism.
45

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1 (ii) The export of such items could

2 make a significant contribution to the mili3 tary potential of such country, including its

4 military logistics capability, or could en5 hance the ability of such country to sup6 port acts of international terrorism.

7 (B) The Secretary and the Secretary of

8 State shall notify the Committee on Foreign Af9 fairs of the House of Representatives and the

10 Committee on Banking, Housing, and Urban

11 Affairs and the Committee on Foreign Rela12 tions of the Senate at least 30 days before issu13 ing any validated license required by paragraph

14 (A).

15 (C) Each determination of the Secretary of

16 State under paragraph (A)(i), including each

17 determination in effect on the date of the enact18 ment of the Antiterrorism and Arms Export

19 Amendments Act of 1989 (December 12,

20 1989), shall be published in the Federal Reg21 ister.

22 (D) A determination made by the Sec23 retary of State under paragraph (A)(i) may not

24 be rescinded unless the President submits to

25 the Speaker of the House of Representatives
46

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1 and the chairman of the Committee on Bank2 ing, Housing, and Urban Affairs and the chair3 man of the Committee on Foreign Relations of

4 the Senate—

5 (i) before the proposed rescission

6 would take effect, a report certifying

7 that—

8 (I) there has been a fundamental

9 change in the leadership and policies

10 of the government of the country con11 cerned;

12 (II) that government is not sup13 porting acts of international terror14 ism; and

15 (III) that government has pro16 vided assurances that it will not sup17 port acts of international terrorism in

18 the future; or

19 (ii) at least 45 days before the pro20 posed rescission would take effect, a report

21 justifying the rescission and certifying

22 that—

23 (I) the government concerned has

24 not provided any support for inter-
47

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1 national terrorism during the preced2 ing 6-month period; and

3 (II) the government concerned

4 has provided assurances that it will

5 not support acts of international ter6 rorism in the future.

7 (5) HUMAN RIGHTS AND CRIME CONTROL.—

8 (A) Crime control and detection instru9 ments and equipment shall be approved for ex10 port by the Secretary only pursuant to a vali11 dated export license. Notwithstanding any other

12 provision of the Act—

13 (i) any determination of the Secretary

14 of what items shall be included on the Con15 trol List established pursuant to section

16 11(e) as a result of the export restriction

17 imposed under this subsection shall be

18 made with the concurrence of the Sec19 retary of State; and

20 (ii) any determination of the Sec21 retary to approve or deny an export license

22 application to export crime control and de23 tection instruments or equipment shall be

24 made with the concurrence of the Sec25 retary of State, except that, if the Sec-
48

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1 retary does not agree with the Secretary of

2 State with respect to any determination

3 under subparagraph (i) or (ii), the matter

4 shall be referred to the President for reso5 lution.

6 (B) The provisions of this subsection shall

7 not apply to exports to Canada, countries which

8 are members of the European Union, Norway,

9 Iceland, Japan, Australia, or New Zealand, or

10 to such countries as the President shall des11 ignate consistent with the purposes of this sub12 section and section 502B of the Foreign Assist13 ance Act of 1961 (22 U.S.C. 2304).

14 (k) UNFAIR IMPACT ON UNITED STATES EX15 PORTER.—

16 (1) POLICY.—It is the policy of the United

17 States that no United States exporter should be

18 placed at a competitive disadvantage vis-a-vis its

19 commercial competitors because of export control

20 policies or practices unless relief from such controls

21 would create a significant risk to the foreign policy,

22 nonproliferation, or national security interests of the

23 United States.

24 (2) RELIEF FROM EXPORT CONTROLS.—A per25 son may petition the Secretary for relief from cur-
49

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1 rent export control requirements on any one or more

2 of the following grounds and the Secretary may con3 duct evaluations for relief on his or her own initia4 tive based upon any one or more of the following

5 grounds:

6 (A) FOREIGN AVAILABILITY.—The con7 trolled item is available in fact in sufficient

8 quantity and comparable quality to the pro9 posed countries of export or end users from

10 sources outside the United States so that the

11 requirement for a validated license is or would

12 be ineffective in achieving the purpose of the

13 control.

14 (B) INEFFECTIVE CONTROLS.—The con15 trolled items are so widely available in the

16 United States that the Government cannot en17 force the controls effectively, unless the Sec18 retary has reliable evidence that the controls

19 have been effective in denying such target des20 tination access to the controlled items originat21 ing in the United States.

22 (C) COMPETITIVE DISADVANTAGE.—

23 (i) Differences between the export

24 control policies or procedures of the United

25 States and that of governments of foreign
50

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1 suppliers effectively has placed or will place

2 the United States exporter at a near-term

3 commercial disadvantage vis-a-vis its com4 petitors abroad.

5 (ii) Changes to the domestic control

6 lists of the United States and foreign gov7 ernments result in similar items being con8 trolled differently thus resulting in a com9 petitive disadvantage.

10 (3) PROVISIONS FOR RELIEF.—Consistent with

11 multilateral arrangements, the Secretary, in con12 sultation with appropriate departments and agen13 cies, shall make determinations of facts under para14 graph (2) and, subject to paragraph 4, provide the

15 following relief to firms that meet the criteria in

16 paragraph (2):

17 (A) Change the control status of all or

18 some of the items in question so as to eliminate

19 any significant competitive disadvantage.

20 (B) Selectively approve the sale of con21 trolled goods so as to eliminate any significant

22 competitive disadvantage.

23 (C) Seek multilateral support to eliminate

24 the source of foreign availability or to enhance

25 a control to make it effective. If this relief is
51

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1 chosen and if such efforts fail to achieve multi2 lateral support to eliminate the source of for3 eign availability or to make the control effec4 tive, then not later than 330 days from the date

5 of the Secretary’s initiation of an assessment,

6 the Secretary shall provide other relief pursuant

7 to (A) or (B) above or conclude pursuant to

8 paragraph (4) that the granting of such relief

9 would create a significant risk to United States

10 nonproliferation, foreign policy or national secu11 rity interests: Provided, however, If the Sec12 retary of State, in consultation with appropriate

13 departments and agencies, finds that substan14 tial progress is being made to achieve multilat15 eral support to eliminate the source of foreign

16 availability or to make the control effective,

17 then the Secretary shall provide other relief

18 pursuant to (A) or (B) above or conclude pur19 suant to paragraph (4) that the granting of

20 such relief would create a significant risk to

21 United States nonproliferation, foreign policy or

22 national security interests, and shall do so with23 in an additional 180 days.

24 Except as provided in paragraph (5), a determina25 tion that a petitioner qualifies for relief under para-
52

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1 graph (2) above shall not compel the United States

2 to decontrol an item that remains subject to control

3 by a multilateral regime in which the United States

4 is a member or adherent.

5 (4) EXCEPTIONS FROM RELIEF.—The Secretary

6 shall provide relief to a petitioner who qualifies for

7 relief under paragraph (2) unless the Secretary con8 cludes that the granting of such relief would create

9 a significant risk to United States nonproliferation,

10 foreign policy, or national security interests. In the

11 event the Secretary determines to grant such relief,

12 he or she may do so unless the President determines

13 that such relief would create a significant risk to the

14 foreign policy, nonproliferation, or national security

15 interests of the United States.

16 (5) RELIEF FROM TRADITIONAL EAST-WEST

17 COCOM CONTROLS.—Relief under paragraph (2)

18 shall compel either the elimination of the foreign

19 availability or decontrol as provided in this para20 graph for an item controlled by the United States

21 based solely on its undertakings in the Coordinating

22 Committee prior to October of 1993 so long as the

23 Coordinating Committee shall continue in existence.

24 For such an item, the Secretary may not, after the

25 determination is made under paragraph (2), require
53

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1 a validated license for the export of such items dur2 ing the period that such determination remains in

3 effect, unless the President determines that the ab4 sence of export controls under this section on the

5 items would prove detrimental to the national secu6 rity of the United States.

7 (6) PROCEDURES.—In any case in which the

8 President or the Secretary determines that export

9 controls under this section must be maintained not10 withstanding the existence of facts that constitute a

11 basis for granting relief, the Secretary shall publish

12 that determination, together with a concise state13 ment of its basis and the estimated economic impact

14 of the decision.

15 (A) NOTICE OF ASSESSMENTS.—Whenever

16 the Secretary undertakes an assessment under

17 paragraph (2), the Secretary shall publish no18 tice of initiation of such assessment in the Fed19 eral Register.

20 (B) PROCEDURES FOR MAKING DETER21 MINATIONS.—During the conduct of an assess22 ment under this subsection, the Secretary shall

23 consult with other appropriate departments and

24 agencies concerning the conduct of the assess25 ment. The Secretary shall make a determina-
54

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1 tion as to whether relief is required under para2 graph (2) within 120 days of the date of the

3 Secretary’s initiation of an assessment and shall

4 so notify the applicant. If the Secretary has de5 termined that relief is appropriate, the Sec6 retary shall, upon making such a determination,

7 submit the determination for review to appro8 priate departments and agencies for consulta9 tions regarding the findings and selected relief.

10 The Secretary’s determination as to eligibility

11 for relief and the nature of the relief to be

12 granted does not require the concurrence or ap13 proval of any official, department, or agency to

14 which such a determination is submitted. Not

15 later than 150 days from the date of the Sec16 retary’s initiation of an assessment, the Sec17 retary shall respond in writing to the petitioner

18 and submit for publication in the Federal Reg19 ister, that—

20 (i) relief is required and—

21 (I) the requirement of a validated

22 license has been removed;

23 (II) the control status of all or

24 some of the items in question has
55

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1 been changed so as to eliminate any

2 significant competitive disadvantage;

3 (III) the sale of controlled items

4 have been approved so as to eliminate

5 any significant competitive disadvan6 tage;

7 (IV) pursuant to paragraph (5),

8 export controls under this section

9 must be maintained notwithstanding

10 the finding under paragraph (2) and

11 the applicable steps are being taken

12 under subparagraph (C) this para13 graph; or

14 (V) the United States rec15 ommendation to remove the validated

16 license requirement or change the con17 trol status will be submitted to a rel18 evant multilateral regime for consider19 ation for a period of not more than

20 180 days beginning on the date of the

21 publication; or

22 (ii) a right to relief under paragraph

23 (2) does not exist.

24 In any case in which the submission for publi25 cation is not made within 150 days of the date
56

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1 of the Secretary’s initiation of an assessment,

2 the Secretary may not thereafter require a li3 cense for the export of items that are the sub4 ject of the allegation under paragraph (2). In

5 the case of a determination made under sub6 section (k)(6)(B)(1)(e) to refer a proposed relief

7 to the relevant multilateral regime, no license

8 for such export may be required after 330 days

9 from the date of the Secretary’s initiation of an

10 assessment unless the Secretary shall make a

11 finding under paragraph (4) or grant other re12 lief under paragraph (3).

13 (C) NEGOTIATIONS TO ELIMINATE FOR14 EIGN AVAILABILITY.—

15 (i) In any case in which export con16 trols are maintained under this section

17 pursuant to paragraph (4), the Secretary

18 of State shall actively pursue negotiations

19 with the governments of the appropriate

20 foreign countries for the purpose of elimi21 nating such foreign availability or competi22 tive disadvantage. No later than the com23 mencement of such negotiations, the Sec24 retary of State shall notify in writing the

25 Committee on Banking, Housing, and
57

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1 Urban Affairs of the Senate and the Com2 mittee on Foreign Affairs of the House of

3 Representatives that he has begun such ne4 gotiations and why he believes it is impor5 tant that export controls on the items in6 volved be maintained to avoid a significant

7 risk to the foreign policy, nonproliferation,

8 or national security interests of the United

9 States.

10 (ii) Whenever the Secretary of State

11 has reason to believe that items subject to

12 export controls by the United States may

13 become available from other countries to

14 target countries and that such availability

15 can be prevented or eliminated by means

16 of negotiations with such other countries,

17 the Secretary of State shall promptly initi18 ate negotiations with the governments of

19 such other countries to prevent such for20 eign availability.

21 (7) SHARING OF INFORMATION.—Each depart22 ment or agency of the United States, including any

23 intelligence agency, and all contractors with any

24 such department or agency, shall, upon the request

25 of the Secretary and consistent with the protection
58

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1 of intelligence sources and methods, furnish informa2 tion to the Commerce Department concerning for3 eign availability of items subject to export controls

4 under this section. Consistent with the protection of

5 intelligence sources and methods and classification

6 restrictions, each such department or agency shall

7 allow the Commerce Department access to such in8 formation from a laboratory or other facility within

9 such department or agency.

10 (8) AVAILABILITY DEFINED.—For the purposes

11 of this subsection, the term ‘‘available in fact to tar12 get countries’’ includes production or availability of

13 any item from any country—

14 (A) where the item is not restricted for ex15 port to any target country; or

16 (B) where the export restrictions are deter17 mined by the Secretary to be ineffective.

18 For purposes of subparagraph (B), the mere inclu19 sion of items on a list of items subject to multilat20 eral export controls shall not alone constitute credi21 ble evidence that a government of a country provides

22 an effective means of controlling the export of such

23 items to target countries.

24 (9) CONGRESSIONAL NOTIFICATION AND RE25 PORTING REQUIREMENTS.—The Secretary shall each
59

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1 year notify the Committee on Foreign Affairs of the

2 House of Representatives and the Committee on

3 Banking, Housing, and Urban Affairs of the Senate

4 of all petitions for relief and the status of all such

5 petitions.

6 (l) UNILATERAL CONTROLS PROHIBITED.—

7 (1) Any export controls imposed unilaterally by

8 the United States for purposes adopted by the group

9 known as the Coordinating Committee shall expire 6

10 months after the date of enactment of this para11 graph, or 6 months after the export control is im12 posed, whichever date is later, except that—

13 (A) any such export controls on those

14 items for which a determination of the Sec15 retary that there is no foreign availability has

16 been made under this section before the end of

17 the applicable 6-month period and is in effect

18 may be renewed for periods of not more than

19 6 months each; and

20 (B) any such export controls on those

21 items with respect to which the President, by

22 the end of the applicable 6-month period, is ac23 tively pursuing negotiations with other coun24 tries to achieve multilateral export controls on
60

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1 those items may be renewed for 2 periods of not

2 more than 6 months each.

3 (2) Export controls on items described in sub4 paragraph (A) or (B) of paragraph (1) above may

5 be renewed only if, before each renewal, the Sec6 retary submits to the Congress a report setting forth

7 all the controls being renewed and stating the spe8 cific reasons for such renewal.

9 (m) INTERNATIONAL OBLIGATIONS.—Notwithstand10 ing other provisions of this Act containing limitations on

11 authority to control imports and exports, pursuant to this

12 paragraph and in order to fulfill obligations of the United

13 States pursuant to resolutions of the United Nations, trea14 ties, or other international agreements to which the

15 United States is a party, the Secretary, in consultation

16 with appropriate departments and agencies, may impose

17 controls on exports and imports to and from a target coun18 try or region. The Secretary may regulate domestic and

19 foreign conduct consistent with the policies of such United

20 Nations resolutions, treaties, and international agree21 ments. Such authority shall include, but not be limited to,

22 the authority to prohibit activity such as financing, con23 tracting, servicing or employment, to deny access to items

24 in the United States and abroad, to conduct audits of
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1 records and inspections of facilities, to compel reports, and

2 to curtail travel.

3 (n) INFORMATION SHARING.—The Secretary and ap4 propriate officials of the intelligence community, as deter5 mined by the Director of Central Intelligence, and other

6 appropriate Government agencies shall establish a proce7 dure for information sharing.

8 (o) DENIED PARTIES, SANCTIONED PARTIES, SPE9 CIALLY DESIGNATED NATIONALS, AND OTHER PARTIES

10 PRESENTING UNACCEPTABLE RISKS OF DIVERSION.—

11 (1) DENIED PARTIES, SANCTIONED PARTIES,

12 SPECIALLY DESIGNATED NATIONALS.—The Sec13 retary shall publish parties denied export privileges

14 under this Act, parties sanctioned for prohibited pro15 liferation activity under this Act or other statutes,

16 and specially designated nationals named under the

17 International Emergency Economic Powers Act, as

18 amended, 50 U.S.C. 1701, et seq. (1988).

19 (2) OTHER PARTIES.—The Secretary shall

20 maintain a list of parties for whom licenses will be

21 presumptively denied.

22 (p) FREEDOM OF INFORMATION ACT EXEMPTION.—

23 The identity of parties maintained or disclosed pursuant

24 to subsection (o)(2) is not subject to disclosure under sec25 tion 552 of title 5, United States Code.
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1 SEC. 6. SHORT SUPPLY CONTROLS.

2 (a) AUTHORITY.—

3 (1) In order to carry out the policy set forth in

4 section 3(2)(D) of this Act, the President may pro5 hibit or curtail the export of any items subject to the

6 jurisdiction of the United States or exported by any

7 person subject to the jurisdiction of the United

8 States. In curtailing exports to carry out the policy

9 set forth in section 3(2)(D) of this Act, the Presi10 dent shall allocate a portion of export licenses on the

11 basis of factors other than a prior history of expor12 tation. Such factors shall include the extent to which

13 a country engages in equitable trade practices for

14 United States items and treats the United States eq15 uitably in times of short supply.

16 (2) Upon imposing quantitative restrictions on

17 exports of any items to carry out the policy set forth

18 in section 3(2)(D) of this Act, the Secretary shall in19 clude in a notice published in the Federal Register

20 regarding such restrictions an invitation to all inter21 ested parties to submit written comments within 15

22 days from the date of publication on the impact of

23 such restrictions and the method of licensing used to

24 implement them.

25 (3) Notwithstanding subsection 4(h) of this

26 Act, in imposing export controls under this section,
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1 the President’s authority shall include, but not be

2 limited to, the imposition of export license fees.

3 (b) MONITORING.—

4 (1) In order to carry out the policy set forth in

5 section 3(2)(D) of this Act, the Secretary shall mon6 itor exports, and contracts for exports, of any good

7 (other than a commodity which is subject to the re8 porting requirements of section 182 of the Agricul9 tural Act of 1970 (7 U.S.C. 612c–3)) when the vol10 ume of such exports in relation to domestic supply

11 contributes, or may contribute, to an increase in do12 mestic prices or a domestic shortage, and such price

13 increase or shortage has, or may have, a serious ad14 verse impact on the economy or any sector thereof.

15 Any such monitoring shall commence at a time ade16 quate to assure that the monitoring will result in a

17 data base sufficient to enable policies to be devel18 oped, in accordance with section 3(2)(D) of this Act,

19 to mitigate a short supply situation or serious infla20 tionary price rise or, if export controls are needed,

21 to permit imposition of such controls in a timely

22 manner. Information which the Secretary requires to

23 be furnished in effecting such monitoring shall be

24 confidential, except as provided in paragraph (2) of

25 this subsection.
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1 (2) The results of such monitoring shall, to the

2 extent practicable, be aggregated and included in

3 weekly reports setting forth, as to each item mon4 itored, actual and anticipated exports, the destina5 tion by country, and the domestic and worldwide

6 price, supply, and demand. Such reports may be

7 made monthly if the Secretary determines that there

8 is insufficient information to justify weekly reports.

9 (c) DOMESTICALLY-PRODUCED CRUDE OIL.—

10 (1) Notwithstanding any other provision of this

11 Act and notwithstanding subsection (u) of section 28

12 of the Mineral Leasing Act of 1920 (30 U.S.C. 185),

13 no domestically-produced crude oil transported by

14 pipeline over right-of-way granted pursuant to sec15 tion 203 of the TransAlaska Pipeline Authorization

16 Act (43 U.S.C. 1652) (except any such crude oil

17 which (A) is exported to an adjacent foreign country

18 to be refined and consumed therein in exchange for

19 the same quantity of crude oil being exported from

20 that country to the United States, which exchange

21 must result, through convenience or increased effi22 ciency of transportation, in lower prices for consum23 ers of petroleum products in the United States as

24 described in paragraph (2)(A)(ii) of this subsection;

25 (B) is temporarily exported for convenience or in-
65

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1 creased efficiency of transportation across parts of

2 an adjacent foreign country and reenters the United

3 States; or (C) is transported to Canada, to be

4 consumed therein, in amounts not to exceed an an5 nual average of 50,000 barrels per day, in addition

6 to exports under subparagraphs (2)(A) and (2)(B),

7 except that any ocean transportation of such oil

8 shall be by vessels documented under section 12106

9 of title 46, United States Code) may be exported

10 from the United States, or any of its territories and

11 possessions, subject to paragraph (2) of this sub12 section.

13 (2) Crude oil subject to the prohibition con14 tained in paragraph (1) may be exported only if—

15 (A) the President so recommends to the

16 Congress after making and publishing express

17 findings that exports of such crude oil, includ18 ing exchanges—

19 (i) will not diminish the total quantity

20 or quality of petroleum refined within,

21 stored within, or legally committed to be

22 transported to and sold within the United

23 States;

24 (ii) will, within 3 months following the

25 initiation of such exports or changes, result
66

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1 in (I) acquisition costs to the refiners

2 which purchase the imported crude oil

3 being lower than the acquisition costs such

4 refiners would have to pay for the domesti5 cally-produced oil in the absence of such

6 an export or exchange, and (II) not less

7 than 75 percent of such savings in costs

8 being reflected in wholesale and retail

9 prices of products refined from such im10 ported crude oil;

11 (iii) will be made only pursuant to

12 contracts which may be terminated if the

13 crude oil supplies of the United States are

14 interrupted, threatened, or diminished;

15 (iv) are clearly necessary to protect

16 the national interest; and

17 (v) are in accordance with the provi18 sions of this Act; and

19 (B) the President includes such findings in

20 his or her recommendation to the Congress and

21 the Congress, within 60 days after receiving

22 that recommendation, agrees to a joint resolu23 tion which approves such exports on the basis

24 of those findings, and which is thereafter en25 acted into law.
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1 (3) Notwithstanding any other provision of this

2 section or any other section or any other provision

3 of law, including subsection (u) of section 28 of the

4 Mineral Leasing Act of 1920 (30 U.S.C. 185(u)),

5 the President may export oil to any country pursu6 ant to a bilateral international oil supply agreement

7 entered into by the United States with such nation

8 before June 25, 1979, or to any country pursuant

9 to the International Emergency Oil Sharing Plan of

10 the International Energy Agency.

11 (d) AGRICULTURE COMMODITIES.—

12 (1) The Authority conferred by this section

13 shall not be exercised for any agricultural commod14 ity, including fats and oils or animal hides or skins,

15 without the approval of the Secretary of Agriculture.

16 The Secretary of Agriculture shall not approve the

17 exercise of such authority for any such commodity

18 during any period for which the supply of such com19 modity is determined by the Secretary of Agriculture

20 to be in excess of the requirements of the domestic

21 economy except to the extent the President deter22 mines that such exercise of authority is required to

23 carry out the policies set forth in subparagraph (B)

24 or (C) of paragraph (2) of section 3 of this Act. The

25 Secretary of Agriculture shall, by exercising the au-
68

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1 thority which the Secretary of Agriculture has under

2 other applicable provisions of law, collect data on ex3 port sales of animal hides and skins.

4 (2) Upon approval of the Secretary, in consulta5 tion with the Secretary of Agriculture, agricultural

6 commodities purchased by or for use in a foreign

7 country may remain in the United States for export

8 at a later date free from any quantitative limitations

9 on export which may be imposed to carry out the

10 policy set forth in section 3(2)(D) of this Act subse11 quent to such approval. The Secretary may not

12 grant such approval unless the Secretary receives

13 adequate assurance and, in conjunction with the

14 Secretary of Agriculture, finds (A) that such com15 modities will eventually be exported, (B) that neither

16 the sale nor export thereof will result in an excessive

17 drain of scarce materials and have a serious domes18 tic inflationary impact, (C) that storage of such

19 commodities in the United States will not unduly

20 limit the space available for storage of domestically21 owed commodities, and (D) that the purpose of such

22 storage is to establish a reserve of such commodities

23 for later use, not including resale to or use by an24 other country. The Secretary may issue such regula-
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1 tions as may be necessary to implement this para2 graph.

3 (3)(A) If the President imposes export controls

4 on any agricultural commodity in order to carry out

5 the policy set forth in paragraph (2)(B), (2)(C),

6 2(D), or (12) of section 3 of this Act, the President

7 shall immediately transmit a report on such action

8 to the Congress, setting forth the reasons for the

9 controls in detail and specifying the periods of time,

10 which may not exceed 1 year, that the controls are

11 proposed to be in effect. If the Congress, within 60

12 days after the date of its receipt of the report,

13 adopts a joint resolution pursuant to paragraph (4)

14 approving the imposition of the export controls, then

15 such controls shall remain in effect for the period

16 specified in the report, or until terminated by the

17 President, whichever occurs first. If the Congress,

18 within 60 days after the date of its receipt of such

19 report, fails to adopt a joint resolution approving

20 such controls, then such controls shall cease to be ef21 fective upon the expiration of that 60-day period.

22 (B) The provisions of subparagraph (A) and

23 paragraph (4) shall not apply to export controls—

24 (i) which are extended under this Act if

25 the controls, when imposed, were approved by
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1 the Congress under subparagraph (A) and

2 paragraph (4); or

3 (ii) which are imposed on exports to a

4 country as part of the prohibition or curtail5 ment of all exports to that country.

6 (4)(A) For purposes of this paragraph, the

7 term ‘‘joint resolution’’ means only a joint resolution

8 the matter after the resolving clause of which is as

9 follows: ‘‘That pursuant to section 6(d)(3) of the

10 Export Administration Act of 1979, the President

11 may impose export controls as specified in the report

12 submitted to the Congress on .’’,

13 with the blank space being filled with the appro14 priate date.

15 (B) On the day on which a report is submitted

16 to the House of Representatives and the Senate

17 under paragraph (3), a joint resolution on the export

18 controls specified in such report shall be introduced

19 (by request) in the House by the chairman of the

20 Committee on Foreign Affairs, for himself and the

21 ranking minority member of the Committee, or by

22 Members of the House designated by the chairman

23 and ranking minority member; and shall be intro24 duced (by request) in the Senate by the majority

25 leader of the Senate, for himself and the minority
71

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1 leader of the Senate, or by Members of the Senate

2 designated by the majority leader and minority lead3 er of the Senate. If either House is not in session

4 on the day on which such a report is submitted, the

5 joint resolution shall be introduced in that House, as

6 provided in the preceding sentence, on the first day

7 thereafter on which that House is in session.

8 (C) All joint resolutions introduced in the

9 House of Representatives shall be referred to the ap10 propriate committee and all joint resolutions intro11 duced in the Senate shall be referred to the Commit12 tee on Banking, Housing, and Urban Affairs.

13 (D) If the committee of either House to which

14 a joint resolution has been referred has not reported

15 the joint resolution at the end of 30 days after its

16 referral, the committee shall be discharged from fur17 ther consideration of the resolution or of any other

18 joint resolution introduced on the same matter.

19 (E) A joint resolution under this paragraph

20 shall be considered in the Senate in accordance with

21 the provisions of section 601(b)(4) of the Inter22 national Security Assistance and Arms Export Con23 trol Act of 1976 (22 U.S.C. 2151 et seq., Public

24 Law 94–329, June 30, 1976). For the purpose of

25 expediting the consideration and passage of joint
72

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1 resolutions reported or discharged pursuant to the

2 provisions of this paragraph, it shall be in order for

3 the Committee on Rules of the House of Representa4 tives to present for consideration a resolution of the

5 House of Representatives providing procedures for

6 the immediate consideration of a joint resolution

7 under this paragraph which may be similar, if appli8 cable, to the procedures set forth in section

9 601(b)(4) of the International Security Assistance

10 and Arms Export Control Act of 1976.

11 (F) In the case of a joint resolution described

12 in subparagraph (A), if, before the passage by one

13 House of a joint resolution of that House, that

14 House receives a resolution on the same matter from

15 the other House, then—

16 (i) the procedure in the House shall be the

17 same as if no joint resolution has been received

18 from the other House; but

19 (ii) the vote on final passage shall be on

20 the joint resolution of the other House.

21 (5) In the computation of the period of 60 days

22 referred to in paragraph (3) and the period of 30

23 days referred to in subparagraph (D) of paragraph

24 (4), there shall be excluded the days on which either

25 House of Congress is not in session because of an
73

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1 adjournment of more than 3 days to a day certain

2 or because of an adjournment of the Congress sine

3 die.

4 (e) BARTER AGREEMENTS.—

5 (1) The exportation pursuant to a barter agree6 ment of any items which may lawfully be exported

7 from the United States, for any items which may

8 lawfully be imported into the United States, may be

9 exempted, in accordance with paragraph (2) of this

10 subsection, from any quantitative limitation on ex11 ports (other than any reporting requirement) im12 posed to carry out the policy set forth in section

13 3(2)(D) of this Act.

14 (2) The Secretary shall grant an exemption

15 under paragraph (1) if the Secretary finds, after

16 consultation with the appropriate department or

17 agency of the United States, that—

18 (A) for the period during which the barter

19 agreement is to be performed—

20 (i) the average annual quantity of the

21 items to be exported pursuant to the bar22 ter agreement will not be required to sat23 isfy the average amount of such items esti24 mated to be required annually by the do-
74

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1 mestic economy and will be surplus there2 to; and

3 (ii) the average annual quantity of the

4 items to be imported will be less than the

5 average amount of such items estimated to

6 be required annually to supplement domes7 tic production; and

8 (B) the parties to such barter agreement

9 have demonstrated adequately that they intend,

10 and have the capacity, to perform such barter

11 agreement.

12 (3) For purposes of this subsection, the term

13 ‘‘barter agreement’’ means any agreement which is

14 made for the exchange, without monetary consider15 ation, of any items produced in the United States

16 for any items produced outside of the United States.

17 (4) This subsection shall apply only to barter

18 agreements entered into after September 30, 1979.

19 (f) UNPROCESSED RED CEDAR.—No unprocessed

20 western red cedar logs (Thuja plicata) harvested from

21 State or Federal lands may be exported from the United

22 States.

23 (1) Unprocessed western red cedar logs shall

24 not be considered to be an agricultural commodity

25 for purposes of subsection (d) of this section.
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1 (2) As used in this subsection, the term ‘‘un2 processed western red cedar’’ means red cedar tim3 ber which has not been processed into—

4 (A) lumber of American Lumber Stand5 ards Grades of Number 3 dimension or better,

6 or Pacific Lumber Inspection Bureau Export

7 R-List Grades of Number 3 common or better;

8 (B) chips, pulp, and pulp products;

9 (C) veneer and plywood;

10 (D) poles, posts, or pilings cut or treated

11 with preservative for use as such and not in12 tended to be further processed; or

13 (E) shakes and shingles.

14 (3) The State of Alaska is exempt from the pro15 visions of this subsection (Public Law No. 96–126,

16 93 Stat. 954, section 308 (1979)).

17 (g) EFFECT OF CONTROLS ON EXISTING CON18 TRACTS.—The export restrictions contained in subsection

19 (f) of this section and any export controls imposed under

20 this section shall not affect any contract to harvest un21 processed western red cedar from State lands which was

22 entered into before October 1, 1979, and the performance

23 of which would make the red cedar available for export.

24 Any export controls imposed under this section on any ag25 ricultural commodity (including fats, oils, and animal
76

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1 hides and skins) or on any forest product or fishery prod2 uct, shall not affect any contract to export entered into

3 before the date on which such controls are imposed. For

4 purposes of this subsection, the term ‘‘contract to export’’

5 includes, but is not limited to, an export sales agreement

6 and an agreement to invest in an enterprise which involves

7 the export of goods or technology.

8 (h) OIL EXPORTS FOR USE BY UNITED STATES

9 MILITARY FACILITIES.—For purposes of subsection (c) of

10 this section, and for purposes of any export controls im11 posed under this Act, shipments of crude oil, refined petro12 leum products, or partially refined petroleum products

13 from the United States for use by the Department of De14 fense or United States-supported installations or facilities

15 shall not be considered to be exports.

16 SEC. 7. FOREIGN BOYCOTTS.

17 (a) PROHIBITIONS AND EXCEPTIONS.—

18 (1) For the purpose of implementing the poli19 cies set forth in subparagraph (A) and (B) of para20 graph (14) of section 3 of this Act, the President

21 shall issue regulations prohibiting any United States

22 person, with respect to his or her activities in the

23 interstate or foreign commerce of the United States,

24 from taking or knowingly agreeing to take any of

25 the following actions with the intent to comply with,
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1 further, or support any boycott fostered or imposed

2 by a foreign country against a country which is

3 friendly to the United States and which is not itself

4 the object of any form of boycott pursuant to United

5 States law or regulation:

6 (A) Refusing, or requiring any other per7 son to refuse, to do business with or in the boy8 cotted country, with any business concern orga9 nized under the laws of the boycotted country,

10 with any national or resident of the boycotted

11 country, or with any other person, pursuant to

12 an agreement with, a requirement of, or a re13 quest from or on behalf of the boycotting coun14 try. The mere absence of a business relationship

15 with or in the boycotted country with any busi16 ness concern organized under the laws of the

17 boycotted country, with any national or resident

18 of the boycotted country, or with any other per19 son, does not indicate the existence of the in20 tent required to establish a violation of regula21 tions issued to carry out this subparagraph.

22 (B) Refusing, or requiring any other per23 son to refuse, to employ or otherwise discrimi24 nating against any United States person on the

25 basis of race, religion, sex, or national origin of
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1 that person or of any owner, officer, director, or

2 employee of such person.

3 (C) Furnishing information with respect to

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

5 United States person or of any owner, officer,

6 director, or employee of such person.

7 (D) Furnishing information about whether

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

9 any business relationship (including a relation10 ship by way of sale, purchase, legal, or commer11 cial representation, shipping or other transport,

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

13 boycotted country, with any business concern

14 organized under the laws of the boycotted coun15 try, with any national or resident of the boy16 cotted country, or with any other person known

17 or believed to be restricted from having any

18 business relationship with or in the boycotted

19 country. Nothing in this paragraph shall pro20 hibit the furnishing of normal business informa21 tion in a commercial context as defined by the

22 Secretary.

23 (E) Furnishing information about whether

24 any person is a member of, has made contribu25 tion to, or is otherwise associated with or in-
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1 volved in the activities of any charitable or fra2 ternal organization which supports the boy3 cotted country.

4 (F) Paying, honoring, confirming, or other5 wise implementing a letter of credit which con6 tains any condition or requirement compliance

7 with which is prohibited by regulations issued

8 pursuant to this paragraph, and no United

9 States person shall, as a result of the applica10 tion of this paragraph, be obligated to pay or

11 otherwise honor or implement such letter of

12 credit.

13 (2) Regulations issued pursuant to paragraph

14 (1) shall provide exceptions for—

15 (A) complying or agreeing to comply with

16 requirements (i) prohibiting the import of items

17 or services from the boycotted country or items

18 produced or services provided by any business

19 concern organized under the laws of the boy20 cotted country or by nationals or residents of

21 the boycotted country, or (ii) prohibiting the

22 shipment of items to the boycotted country on

23 a carrier of the boycotted country, or by a route

24 other than that prescribed by the boycotting

25 country or the recipient of the shipment;
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1 (B) complying or agreeing to comply with

2 import and shipping document requirements

3 with respect to the country of origin, the name

4 of the carrier and route of shipment, the name

5 of the supplier of the shipment or the name of

6 the provider of other services, except that no in7 formation knowingly furnished or conveyed in

8 response to such requirements may be stated in

9 negative, blacklisting, or similar exclusionary

10 terms, other than with respect to carriers or

11 route of shipment as may be permitted by such

12 regulations in order to comply with precaution13 ary requirements protecting against war risks

14 and confiscation;

15 (C) complying or agreeing to comply in the

16 normal course of business with the unilateral

17 and specific selection by a boycotting country,

18 or national or resident thereof, of carriers, in19 surers, suppliers of services to be performed

20 within the boycotting country or specific items

21 which, in the normal course of business, are

22 identifiable by source when imported into the

23 boycotting country;

24 (D) complying or agreeing to comply with

25 export requirements of the boycotting country
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1 relating to shipments or transshipment of ex2 ports to the boycotted country, to any business

3 concern of or organized under the laws of the

4 boycotted country, or to any national or resi5 dent of the boycotted country;

6 (E) compliance by an individual or agree7 ment by an individual to comply with the immi8 gration or passport requirements of any country

9 with respect to such individual or any member

10 of such individual’s family or with requests for

11 information regarding requirements of employ12 ment of such individual within the boycotting

13 country; and

14 (F) compliance by a United States person

15 resident in a foreign country or agreement by

16 such person to comply with the laws of the

17 country with respect to his or her activities ex18 clusively therein, and such regulations may con19 tain exceptions for such resident complying with

20 the laws or regulations of the foreign country

21 governing imports into such country of

22 trademarked, trade named, or similarly specifi23 cally identifiable products, or components of

24 products for his or her own use, including the
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1 performance of contractual services within that

2 country, as may be defined by such regulations.

3 (3) Regulations issued pursuant to paragraphs

4 (2)(C) and (2)(F) shall not provide exceptions from

5 paragraphs (1)(B) and (1)(C).

6 (4) Nothing in this subsection may be con7 strued to supersede or limit the operation of the

8 antitrust or civil rights laws of the United States.

9 (5) This section shall apply to any transaction

10 or activity undertaken, by or through a United

11 States person or any other person, with intent to

12 evade the provisions of this section as implemented

13 by the regulations issued pursuant to this sub14 section, and such regulations shall expressly provide

15 that the exceptions set forth in paragraph (2) shall

16 not permit activities or agreements (expressed or im17 plied by a course of conduct, including a pattern of

18 responses) otherwise prohibited, which are not with19 in the intent of such exceptions.

20 (b) REGULATIONS.—

21 (1) In addition to the regulations issued pursu22 ant to subsection (a) of this section, regulations is23 sued under this subsection of this Act shall imple24 ment the policies set forth in section 3(14).
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1 (2) Such regulations shall require that any

2 United States person receiving a request for the fur3 nishing of information, the entering into or imple4 menting of agreements, or the taking of any other

5 action referred to in section 3(14) shall report that

6 fact to the Secretary, together with such other infor7 mation concerning such request as the Secretary

8 may require for such action as the Secretary consid9 ers appropriate for carrying out the policies of that

10 section. Such person shall also report to the Sec11 retary whether such person intends to comply and

12 whether such person has complied with such request.

13 Any report filed pursuant to this paragraph shall be

14 made available promptly for public inspection and

15 copying, except that information regarding the quan16 tity, description, and value of any items to which

17 such report relates may be kept confidential if the

18 Secretary determines that disclosure thereof would

19 place the United States person involved at a com20 petitive disadvantage. The Secretary shall periodi21 cally transmit summaries of the information con22 tained in such reports to the Secretary of State for

23 such action as the Secretary of State, in consultation

24 with the Secretary, considers appropriate for carry-
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1 ing out the policies set forth in section 3(14) of this

2 Act.

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

4 the regulations issued pursuant thereto shall preempt any

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

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

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

12 against other countries.

13 SEC. 8. PROCEDURES FOR PROCESSING EXPORT LICENSE

14 APPLICATIONS; OTHER INQUIRIES.

15 (a) PRIMARY RESPONSIBILITY OF THE SEC16 RETARY.—

17 (1) All export license applications required

18 under this Act shall be submitted by the applicant

19 to the Secretary. All determinations on any such ap20 plications shall be made by the Secretary, subject to

21 the procedures provided in this section.

22 (2) To the extent necessary, the Secretary shall

23 seek information and recommendations from the

24 Government departments and agencies concerned

25 with factors having an important bearing on exports
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1 administered under this Act. Such departments and

2 agencies shall cooperate fully and promptly in ren3 dering information and recommendations.

4 (3) In regulations that implement this section,

5 the Secretary shall describe the procedures required

6 by this section, the responsibilities of the Secretary

7 and of other departments and agencies in reviewing

8 applications, the rights of the applicant, and the ex9 tent of any multilateral review of a given license

10 application.

11 (4) In calculating the processing times set forth

12 in this section, the Secretary shall use calendar days;

13 provided that if the final day for a required action

14 falls on a weekend or holiday, that action shall be

15 taken no later than the following business day.

16 (5) In reviewing applications for validated ex17 port licenses, the Secretary may in each case con18 sider the reliability of the parties to the proposed ex19 port. In making such an evaluation, the Secretary

20 may consider all sources of information, including

21 intelligence information. However, the consideration

22 of intelligence information in connection with the

23 evaluation of the reliability of parties shall not au24 thorize the direct or indirect disclosure of classified
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1 information or sources and methods of gathering

2 classified information.

3 (b) INITIAL SCREENING.—

4 (1) Upon receipt of any export license applica5 tion, the Secretary shall include receipt and status

6 information regarding the application in the records

7 of the Department.

8 (2) Within 9 days of receipt of any license ap9 plication, the Secretary shall—

10 (A) contact the applicant if the application

11 is improperly completed or if additional infor12 mation is required, and hold the application for

13 a reasonable time while the applicant provides

14 the necessary corrections or information. Such

15 time shall not be counted in calculating the

16 time periods prescribed in this section;

17 (B) refer the application and all necessary

18 recommendations and analyses by the Secretary

19 to all other agencies, when such referral is re20 quested, and forward to the agencies any rel21 evant information submitted by the applicant

22 that could not be reduced to electronic form;

23 and

24 (C) assure the stated classification on the

25 application is correct; return the application if
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1 a validated license is not required; and, if refer2 ral to other agencies is not requested, grant the

3 application or notify the applicant of the Sec4 retary’s intent to deny the application.

5 (c) ACTION BY OTHER DEPARTMENTS AND AGEN6 CIES.—

7 (1) At the direction of the President, the Sec8 retary shall refer license applications to appropriate

9 departments and agencies to make recommendations

10 and provide information to the Secretary.

11 (2) Reviewing agencies shall organize their re12 sources and units to plan for the prompt and expedi13 tious internal dissemination of export license appli14 cations, if necessary, so as to avoid delays in re15 sponding to the Secretary’s request for information

16 and recommendations.

17 (3) Each referral agency or department shall

18 specify to the Secretary any information that is not

19 in the application that would be required to make a

20 determination, and the Secretary shall promptly re21 quest such information from the applicant. The time

22 that may elapse between the date the information is

23 requested from the applicant and the date the infor24 mation is received by the Secretary shall not be
88

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1 counted in calculating the time periods prescribed in

2 this section.

3 (4) Within 30 days of receipt of a referral, the

4 agency or department shall provide the Secretary

5 with a recommendation either to approve the license

6 or to deny the license. As appropriate, such rec7 ommendation shall be with the benefit of consulta8 tion and discussions in interagency groups estab9 lished to provide expertise and coordinate inter10 agency consultation. A recommendation that the

11 Secretary deny a validated license shall include a

12 statement of reasons that are consistent with the

13 provisions of this Act, and shall cite both the statu14 tory and the regulatory basis for the recommenda15 tion to deny. A department or agency that fails to

16 provide a recommendation within thirty days with a

17 statement of reasons and the statutory and regu18 latory basis shall be deemed to have no objection to

19 the decision of the Secretary.

20 (5) An interagency committee shall be estab21 lished by and the chairman selected by the Secretary

22 to review initially all license applications on which

23 the reviewing agencies are not in agreement. The

24 chairman of such committee shall consider the rec25 ommendations of the reviewing agencies and inform
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1 them of his or her decision. Appeals from such deci2 sions may be made in writing by an official of such

3 department or agency who is appointed by the Presi4 dent by and with the advice and consent of the Sen5 ate, or an officer properly acting in such capacity,

6 consistent with procedures established by the Presi7 dent in accordance with subsection (d).

8 (6) Upon receiving all comments from other de9 partments and agencies regarding an application

10 upon which there is no disagreement, or 49 days fol11 lowing receipt of a license application upon which

12 there has been disagreement, whichever comes first,

13 the Secretary shall either—

14 (A) approve the application and issue the

15 license; or

16 (B) notify the applicant of the intent to

17 deny the license; or

18 (C) notify the applicant the application has

19 been referred to a process established by the

20 President to resolve matters in dispute.

21 (d) INTERAGENCY RESOLUTION.—The President

22 may establish a process for the review and determination

23 of export license applications as to which a reviewing agen24 cy has objected pursuant to subsection (c). Any such proc25 ess shall (1) be chaired by the Secretary or his designee;
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1 (2) insure that license applications are resolved or referred

2 to the President no later than 90 days from the date of

3 filing of the license application; and (3) provide that a de4 partment or agency that fails to take a timely position

5 shall be deemed to have no objection to the pending deci6 sion.

7 (e) ACTIONS BY THE SECRETARY.—

8 (1) When no referral to other departments or

9 agencies is required, the Secretary shall issue a li10 cense or notify the applicant of the intent to deny

11 within nine days of receipt of the application.

12 (2) In cases where the Secretary has deter13 mined that an application should be denied, the ap14 plicant shall be informed in writing of—

15 (A) the determination to deny;

16 (B) the statutory and regulatory basis for

17 the proposed denial;

18 (C) what, if any, modifications in or re19 strictions on the items for which the license was

20 sought would allow such export to be compat21 ible with export controls imposed under this

22 Act, and which officer or employee of the De23 partment of Commerce would be in a position

24 to discuss modifications or restrictions with the

25 applicant;
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1 (D) to the extent consistent with the na2 tional security and foreign policy of the United

3 States, the specific considerations that led to

4 the determination to deny the application; and

5 (E) the availability of appeal procedures.

6 The Secretary shall allow the applicant 20 days to

7 respond to the determination before the license ap8 plication is denied.

9 (3) The Secretary and the applicant may, at

10 any time, agree mutually to suspend the time peri11 ods prescribed by this section in order to negotiate

12 modifications to the application and obtain agree13 ment to such modifications from the foreign parties

14 to the transaction.

15 (f) MULTILATERAL CONTROLS.—When an applica16 tion recommended for approval must be submitted to a

17 multilateral review process, pursuant to a multilateral re18 gime, formal or informal, to which the United States is

19 a party, the application shall be referred to the multilat20 eral regime within 5 days of the decision to approve. Any

21 such application shall be considered in accordance with the

22 review procedures established by the relevant multilateral

23 export control regime, and the license shall be issued or

24 a notice of intent to deny issued within 5 days of receipt

25 of a decision by the multilateral regime.
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1 (g) EXCEPTIONS FROM REQUIRED TIME PERIODS.—

2 All license applications shall be resolved or referred to the

3 President no later than 90 days from the date of filing

4 of the license application. The following actions related to

5 processing an application shall not be counted in calculat6 ing the time periods prescribed in this section:

7 (1) AGREEMENT OF THE APPLICANT.—Delays

8 in processing required by unusually complex tech9 nical review or by need to complete a high-level pol10 icy review, when the Secretary and the applicant

11 mutually agree to the delay.

12 (2) PRELICENSE CHECKS.—Prelicense checks

13 through government channels that may be required

14 to establish the identity and reliability of the recipi15 ent of items controlled under this Act, provided—

16 (A) the need for such prelicense check is

17 established by the Secretary, or by another de18 partment or agency, if the request for

19 prelicense check is made by such department or

20 agency;

21 (B) the request for such prelicense check is

22 sent by the Secretary within 5 days for the de23 termination that the prelicense check is re24 quired; and
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1 (C) the analysis of the response to the re2 quest for prelicense check is completed by the

3 Secretary within 5 days.

4 (3) REQUESTS FOR GOVERNMENT-TO-GOVERN5 MENT ASSURANCES.—Requests for government-to6 government assurances of suitable end use of items

7 approved for export, when failure to obtain such as8 surances would result in rejection of the application,

9 provided that the request for such assurances is sent

10 to the Secretary of State within 5 days of the deter11 mination that the assurances are required, provided

12 the Secretary of State initiates the request of the

13 relevant government within 10 days thereafter, and

14 provided the license is issued within 5 days of re15 ceipt by the Secretary of the requested assurances.

16 Whenever such prelicense checks and assurances are not

17 requested within the time periods set forth above, they

18 must be accomplished within the time periods established

19 by this section.

20 (4) MULTILATERAL REVIEW.—Multilateral re21 view of a license application as provided for in sub22 section (f) so long as such multilateral review is re23 quired by the relevant multilateral regime.
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1 (5) CONGRESSIONAL NOTIFICATION.—Such

2 time as required for mandatory Congressional notifi3 cations under this Act.

4 (h) APPEALS.—

5 (1) The Secretary shall establish appropriate

6 procedures for any applicant to appeal to the Sec7 retary the denial or an export license application or

8 other administrative action.

9 (2) In any case in which any action prescribed

10 in this section is not taken on the license application

11 within the time periods established by this section

12 (except in the case of a time period extended under

13 subsection (g)(4) of which the applicant is notified),

14 the applicant may file a petition with the Secretary

15 requesting compliance with the requirements of this

16 section. When such petition is filed, the Secretary

17 shall take immediate steps to correct the situation

18 giving rise to the petition and shall immediately no19 tify the applicant of such steps.

20 (3) If, within 20 days after a petition is filed

21 under paragraph (2), the processing of the applica22 tion has not been brought into conformity with the

23 requirements of this section, or the application has

24 been brought into conformity with such require25 ments but the Secretary has not so notified the ap-
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1 plicant, the applicant may bring an action in an ap2 propriate United States district court for an order

3 requiring compliance with the temporal requirements

4 of this section. The United States district courts

5 shall have jurisdiction to provide such relief, as ap6 propriate.

7 (i) CLASSIFICATION REQUESTS AND OTHER INQUIR8 IES.—

9 (1) In any case in which the Secretary receives

10 a written request asking for the proper classification

11 of an item on the Control List, the Secretary shall,

12 within 14 days after receipt of the request, inform

13 the person making the request of the proper classi14 fication.

15 (2) In any case in which the Secretary receives

16 a written request for information about the applica17 bility of export license requirements under this Act

18 to a proposed export transaction or series of trans19 actions, the Secretary shall, within 30 days after the

20 receipt of the request, reply with that information to

21 the person making the request.

22 SEC. 9. VIOLATIONS.

23 (a) CRIMINAL PENALTIES.—

24 (1) VIOLATIONS BY AN INDIVIDUAL.—Except as

25 provided in paragraph (3) below, any individual who
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1 knowingly violates or conspires to or attempts to vio2 late any provision of this Act or any regulation, li3 cense, or order issued thereunder shall be fined not

4 more than 5 times the value of the exports involved

5 or $500,000 per violation, whichever is greater, or

6 imprisoned not more than 10 years, or both.

7 (2) VIOLATION BY A PERSON OTHER THAN AN

8 INDIVIDUAL.—Except as provided in paragraph (3)

9 below, any person other than an individual who

10 knowingly violates or conspires to or attempts to vio11 late any provision of this Act or any regulation, li12 cense or order issued thereunder shall be fined not

13 more than 10 times the value of the exports involved

14 or $1,000,000 per violation, whichever is greater.

15 (3) ANTIBOYCOTT VIOLATIONS.—Any individual

16 who knowingly violates or conspires to or attempts

17 to violate any provision of section 7 of this Act con18 cerning foreign boycotts or any regulation or order

19 issued thereunder shall be fined not more than 5

20 times the value of the exports involved or $250,000

21 per violation, whichever is greater, or imprisoned not

22 more than 10 years, or both. Any person other than

23 an individual who knowingly violates or conspires to

24 or attempts to violate any provision of section 7 of

25 this Act or any regulation or order issued there-
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1 under shall be fined not more than 5 times the value

2 of the exports involved or $500,000 per violation,

3 whichever is greater.

4 (b) FORFEITURE OF PROPERTY INTEREST AND PRO5 CEEDS.—

6 (1) Any person who is convicted under sub7 section (a) (1) or (2) shall, in addition to any other

8 penalty, forfeit to the United States—

9 (A) any of that person’s interest in, secu10 rity of, claim against, or property or contractual

11 rights of any kind in the goods or tangible

12 items that were the subject of the violation;

13 (B) any of that person’s interest in, secu14 rity of, claim against, or property or contractual

15 rights of any kind in tangible property that was

16 used in the export or attempt to export that

17 was the subject of the violation; and

18 (C) any of that person’s property con19 stituting, or derived from, any proceeds ob20 tained directly or indirectly as a result of the

21 violation.

22 (2) The procedures in any forfeiture under this

23 subsection, and the duties and authority of the

24 courts of the United States and the Attorney Gen25 eral with respect to any forfeiture action under this
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1 subsection or with respect to any property that may

2 be subject to forfeiture under this subsection, shall

3 be governed by the provisions of chapter 46 of title

4 18, United States Code.

5 (c) CIVIL PENALTIES; ADMINISTRATIVE SANC6 TIONS.—

7 (1) The Secretary may impose a civil penalty

8 not to exceed $250,000 for each violation of this Act

9 or any regulation, license or order issued under this

10 Act, either in addition to or in lieu of any other li11 ability or penalty which may be imposed, except that

12 the civil penalty for each such violation involving

13 section 7 of this Act concerning foreign boycotts

14 may not exceed $50,000.

15 (2) The Secretary may deny the export privi16 leges of any person, including suspending or revok17 ing the authority of any person to export or receive

18 any item subject to this Act, for any violation of the

19 provisions of this Act or any regulation, license or

20 order issued under this Act.

21 (d) PROCEDURES RELATING TO CIVIL PENALTIES

22 AND SANCTIONS.—

23 (1) Any administrative sanction imposed under

24 subsection (c) above may be imposed only after no25 tice and opportunity for an agency hearing on the
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1 record in accordance with sections 554 through 557

2 of title 5, United States Code. The imposition of any

3 such administrative sanction shall be subject to judi4 cial review in accordance with sections 701 through

5 706 of title 5, United States Code.

6 (2) Any charging letter or other document initi7 ating administrative proceedings for the imposition

8 of sanctions for violations of the regulations issued

9 pursuant to section 7(a) of this Act shall be made

10 available for public inspection and copying.

11 (e) PAYMENT OF CIVIL PENALTIES.—The payment

12 of any civil penalty imposed pursuant to subsection (c)

13 may be made a condition, for a period not exceeding 1

14 year after the penalty has become due but has not been

15 paid, to the granting, restoration, or continuing validity

16 of any export license, permission, or privilege granted or

17 to be granted to the person upon whom such penalty is

18 imposed. In addition, the payment of any civil penalty im19 posed under subsection (c) may be deferred or suspended

20 in whole or in part for a period of time no longer than

21 any probation period (which may exceed 1 year) that may

22 be imposed upon such person. Such deferral or suspension

23 shall not operate as a bar to the collection of the penalty

24 in the event that the conditions of the suspension, deferral,

25 or probation are not fulfilled.
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1 (f) REFUNDS.—Any amount paid in satisfaction of

2 any civil penalty imposed pursuant to subsection (c) shall

3 be covered into the Treasury as a miscellaneous receipt.

4 The head of the department or agency concerned may, in

5 his discretion, refund any such civil penalty imposed pur6 suant to subsection (c), within 2 years after payment, on

7 the ground of a material error of fact or law in the imposi8 tion of the penalty. Notwithstanding section 1346(a) of

9 title 28, United States Code, no action for the refund of

10 any such penalty may be maintained in any court.

11 (g) COLLECTION—If any person fails to pay a civil

12 penalty imposed pursuant to subsection (c) of this Act,

13 the Secretary may ask the Attorney General to bring a

14 civil action in an appropriate district court to recover the

15 amount imposed (plus interest at currently prevailing

16 rates from the date of the final order). Any such action

17 must be commenced within 5 years after the order impos18 ing the civil penalty becomes final. In such an action, the

19 validity, amount, and appropriateness of such penalty

20 shall not be subject to review.

21 (h) PRIOR CONVICTIONS.—

22 (1) At the discretion of the Secretary, export

23 privileges under this Act may be denied for a period

24 of up to 10 years from the date of conviction to any

25 person convicted of a violation of this Act or its
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1 predecessor statute, the Export Administration Act

2 of 1979; the International Emergency Economic

3 Powers Act, title 50, United States Code, sections

4 1701–1706; sections 793, 794, 798, of title 18,

5 United States Code; section 4(b) of the Internal Se6 curity Act of 1950, title 50, United States Code, sec7 tion 783(b); section 16 of the Trading with the

8 Enemy Act, title 50, United States Code appendix,

9 section 16; section 38 of the Arms Export Control

10 Act, title 22, United States Code, section 2778; any

11 regulation, license, or order issued under any of the

12 above statutes; or section 371 or 1001 of title 18,

13 United States Code, if the conviction arises out of

14 an activity subject to 1 or more of the statutes enu15 merated above. The Secretary may also revoke any

16 export license under this Act in which such person

17 had an interest at the time of the conviction.

18 (2) The Secretary may exercise the authority

19 under paragraph (1) with respect to any person re20 lated, through affiliation, ownership, control, or posi21 tion of responsibility, to any person convicted of any

22 violation of a law set forth in paragraph (1), upon

23 a showing of such relationship with the convicted

24 person, after providing notice and opportunity for

25 hearing.
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1 (i) STATUTE OF LIMITATIONS.—Any case in which

2 a civil penalty or other administrative sanction (other than

3 a temporary denial order) is sought under section 9(c) of

4 this Act must be instituted within 5 years of the date from

5 the alleged violation, except that, in any case in which a

6 criminal indictment alleging a violation of this Act is re7 turned within the time limits prescribed by law for the

8 institution of such action, the statute of limitations for

9 bringing a proceeding to impose a civil penalty or other

10 administrative sanction under this Act shall, upon the re11 turn of the criminal indictment, be tolled against all per12 sons named as a defendant. The tolling of the statute of

13 limitations shall continue for a period of not more than

14 6 months from the date a conviction is entered or the in15 dictment is dismissed.

16 (j) IMPOSITION OF TEMPORARY DENIAL ORDERS.—

17 (1) In any case in which there is reasonable

18 cause to believe that a person is engaged in or is

19 about to engage in any act or practices which con20 stitutes or would constitute a violation of the Act, or

21 any regulation, order, or license issued under the

22 Act, or in any case in which a criminal indictment

23 has been returned against a person alleging a viola24 tion of the Act or any of the statutes listed in sec25 tion 9(h) of the Act, the Secretary may, without a
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1 hearing, issue an offer temporarily denying that per2 son’s United States export privileges (hereinafter in

3 this subsection referred to as a ‘‘temporary denial

4 order’’). A temporary denial order may be effective

5 for no longer than 180 days, but may be renewed by

6 the Secretary, following notice and an opportunity

7 for a hearing, for additional 180-day periods.

8 (2) The person or persons subject to the issu9 ance or renewal of a temporary denial order may ap10 peal the issuance or renewal of the temporary denial

11 order, supported by briefs and other material, to an

12 administrative law judge who shall, within 15 work13 ing days after the appeal is filed, issue a decision af14 firming, modifying, or vacating the temporary denial

15 order. The temporary denial order shall be affirmed

16 if it is shown that there is reasonable cause to be17 lieve that the person subject to the order is engaged

18 in or is about to engage in any act or practice which

19 constitutes or would constitute a violation of the

20 Act, or any regulation, order, or license issued under

21 the Act, or if it is shown that a criminal indictment

22 has been returned against the person subject to the

23 order alleging a violation of the Act or any of the

24 statutes listed in section 9(h) of the Act. The deci25 sion of the administrative law judge shall be final
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1 unless, within 10 working days from the date of the

2 administrative law judge’s decision, an appeal is

3 filed with the Secretary. On appeal, the Secretary

4 shall either affirm, modify, reverse, or vacate the de5 cision of the administrative law judge by written

6 order within 10 working days after receiving the ap7 peal. The written order of the Secretary shall be

8 final and is not subject to judicial review except as

9 provided in paragraph (3). The materials submitted

10 to the administrative law judge and the Secretary

11 shall constitute the administrative record for pur12 poses of review by the court.

13 (3) An order of the Secretary affirming, in

14 whole or in part, the issuance or renewal of a tem15 porary denial order may, within 15 days after the

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

17 the order to the United States Court of Appeals for

18 the District of Columbia Circuit, which shall have

19 jurisdiction of the appeal. The court may review only

20 those issues necessary to determine whether the is21 suance of the temporary denial order was based on

22 reasonable cause to believe that the person subject

23 to the order was engaged in or was about to engage

24 in any act or practice which constitutes or would

25 constitute a violation of the Act, or any regulation,
105

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1 order or license issued under the Act, or if a crimi2 nal indictment has been returned against the person

3 subject to the order alleging a violation of the Act

4 or any of the statutes listed in section 9(h) of the

5 Act. The court shall vacate the Secretary’s order if

6 the court finds that the Secretary’s order is arbi7 trary, capricious, an abuse of discretion, or other8 wise not in accordance with law.

9 (k) VIOLATIONS DEFINED BY REGULATION.—Noth10 ing in this section shall limit the power of the Secretary

11 to define by regulation violations under this Act.

12 (l) OTHER AUTHORITIES.—Nothing in subsection

13 (c), (e), (f), (g), or (i) limits—

14 (1) the availability of other administrative or

15 judicial remedies with respect to violations of this

16 Act, or any regulation, order, or license issued under

17 this Act;

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

25 22, United States Code, section 401(b).
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1 SEC. 10. ENFORCEMENT.

2 (a) GENERAL AUTHORITY AND DESIGNATION.—

3 (1) The Secretary, in consultation with the Sec4 retary of Treasury and the heads of other appro5 priate departments and agencies, shall be responsible

6 for providing policy guidance on the enforcement of

7 this Act.

8 (2) To the extent necessary or appropriate to

9 the enforcement of this Act or to the imposition of

10 any penalty, forfeiture, or liability arising under the

11 Export Administration Act of 1979, as amended, of12 ficers or employees of the Department of Commerce

13 designated by the Secretary and officers and employ14 ees of the United States Customs Service designated

15 by the Commissioner may exercise the enforcement

16 authorities described in paragraph (3). In carrying

17 out these enforcement authorities—

18 (A) the Commissioner of Customs, and em19 ployees of the United States Customs Service

20 designated by the Commissioner, may make in21 vestigations within or outside the United States

22 and at those ports of entry or exit from the

23 United States where officers of the United

24 States Customs Service are authorized by law

25 to carry out such enforcement responsibilities.

26 Subject to paragraph (3), the United States
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1 Customs Service is authorized in the enforce2 ment of this Act, to search, detain (after

3 search), and seize goods or technology at those

4 ports of entry or exit from the United States

5 where officers of the Customs Service are au6 thorized by law to conduct such searches, deten7 tions, and seizures, and at those places outside

8 the United States where the Customs Service,

9 pursuant to agreements or other arrangements

10 with other countries, is authorized to perform

11 enforcement activities;

12 (B) the Secretary, and officers and em13 ployees of the Department of Commerce des14 ignated by the Secretary, may make investiga15 tions within the United States, and shall con16 duct, outside the United States, pre-license and

17 post-shipment verifications of items licensed for

18 export and investigations in the enforcement of

19 section 7 of this Act. The Secretary, and offi20 cers and employees of the Department of Com21 merce designated by the Secretary, are author22 ized to search, detain (after search), and seize

23 items at those places within the United States

24 other than those ports and borders specified in

25 paragraph (2)(A) above. The search, detention
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1 (after search), or seizure of items at those ports

2 and borders specified in paragraph (2)(A) may

3 only be conducted by officers and employees of

4 the Department of Commerce with the concur5 rence of the Commissioner of Customs or a per6 son designated by the Commissioner; and

7 (C) the Secretary and the Commissioner of

8 Customs may enter into agreements and ar9 rangements for the enforcement of this Act, in10 cluding foreign investigations and information

11 exchange.

12 (3) Any officer or employee designated in ac13 cordance with paragraph (2) may do the following in

14 carrying out the enforcement authority under this

15 Act, except that the authorities enumerated in sub16 paragraphs (F) and (G) below may be carried out

17 only by officers and employees of the United States

18 Customs Service designated by the Commissioner:

19 (A) Make investigations of, obtain informa20 tion from, make inspection of any books,

21 records, or reports, as well as any writings re22 quired to be kept by the Secretary, premises, or

23 property of, and take the sworn testimony of,

24 any person.
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1 (B) Administer oaths or affirmations, and

2 by subpoena require any person to appear and

3 testify or to appear and produce books, records,

4 and other writings, or both. In the case of con5 tumacy by, or refusal to obey a subpoena issued

6 to, any such person, a district court of the

7 United States, after notice to any such person

8 and hearing, shall have jurisdiction to issue an

9 order requiring such person to appear and give

10 testimony or to appear and produce books,

11 records, and other writings, or both, and any

12 failure to obey such order of the court may be

13 punished by such court as a contempt thereof.

14 (C) Execute any warrant or other process

15 issued by a court or officer of competent juris16 diction with respect to the enforcement of the

17 provisions of this Act.

18 (D) Make arrests without warrant for any

19 violation of this Act committed in his or her

20 presence or view, or if the officer or employee

21 has probable cause to believe that the person to

22 be arrested has committed, is committing, or is

23 about to commit such a violation.

24 (E) Carry firearms.
110

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1 (F) Stop, search, and examine a vehicle,

2 vessel, aircraft, or person on which or whom the

3 officer or employee has reasonable cause to sus4 pect there is any item that has been, is being,

5 or is about to be exported from or transited

6 through the United States in violation of this

7 Act.

8 (G) Detain and search any package or con9 tainer in which the officer or employee has rea10 sonable cause to suspect there is any item that

11 has been, is being, or is about to be exported

12 from or transited through the United States in

13 violation of this Act.

14 (H) Detain (after search) or seize any

15 item, for purposes of securing for trial or for16 feiture to the United States, on or about such

17 vehicle, vessel, aircraft, or person, or in such

18 package or container, if the officer or employee

19 has probable cause to believe the item has been,

20 is being, or is about to be exported from or

21 transited through the United States in violation

22 of this Act.

23 (I) The authorities conferred by this sec24 tion are in addition to any authorities conferred

25 under other laws.
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1 (b) FORFEITURE.—All goods or tangible items law2 fully seized under subsection (a) of this section by des3 ignated officers or employees shall be forfeited to the

4 United States. Those provisions of law relating to—

5 (1) the seizure, summary and judicial forfeiture,

6 and condemnation of property for violations of the

7 customs laws;

8 (2) the disposition of such property or the pro9 ceeds from the sale thereof;

10 (3) the remission or mitigation of such forfeit11 ures; and

12 (4) the compromise of claims;

13 shall apply to seizures and forfeitures incurred, or alleged

14 to have been incurred, under the provisions of this sub15 section, insofar as applicable and not inconsistent with

16 this Act, except that such duties as are imposed upon the

17 customs officer or any other person with respect to the

18 seizure and forfeiture of property under the customs laws

19 may be performed with respect to seizures and forfeitures

20 of property under this subparagraph by the Secretary or

21 such officers or employees of the Department of Com22 merce as may be authorized or designated for that purpose

23 by the Secretary, or, upon the request of the Secretary,

24 by any other agency that has authority to manage and

25 dispose of seized property.
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1 (c) UNDERCOVER INVESTIGATIVE OPERATIONS.—

2 (1) With respect to any undercover investigative

3 operation conducted by the Office of Export En4 forcement of the Department of Commerce (herein5 after in this subsection referred to as ‘‘OEE’’) nec6 essary for the detection and prosecution of violations

7 of this Act—

8 (A) funds made available for export en9 forcement under this Act may be used to pur10 chase property, buildings, and other facilities,

11 and to lease space within the United States,

12 without regard to sections 1341 and 3324 of

13 title 31, United States Code, the third undesig14 nated paragraph under the heading ‘‘MIS15 CELLANEOUS’’ of the Act of March 3, 1877,

16 title 40, United States Code, section 34, sec17 tions 3732(a) and 3741 of the Revised Statutes

18 of the United States, title 41, United States

19 Code, sections 11(a) and 22, and subsections

20 (a) and (c) of section 304, and section 305, of

21 the Federal Property and Administrative Serv22 ices act of 1949 and title 41, United States

23 Code, sections 254 (a) and (c) and 255;

24 (B) funds made available for export en25 forcement under this Act may be used to estab-
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1 lish or to acquire proprietary corporations or

2 business entities as part of an OEE undercover

3 operation, and to operate such corporations or

4 business entities on a commercial basis, without

5 regard to section 9102 of title 31, United

6 States Code;

7 (C) funds made available for export en8 forcement under this Act and the proceeds from

9 OEE undercover operations may be deposited

10 in banks or other financial institutions without

11 regard to the provisions of section 648 of title

12 18, United States Code, and section 3302 of

13 title 31, United States Code; and

14 (D) the proceeds from OEE undercover

15 operations may be used to offset necessary and

16 reasonable expenses incurred in such operations

17 without regard to the provisions of section 3302

18 of title 31, United States Code; if the Director

19 of OEE (or an officer or employee designated

20 by the Director) certifies, in writing, that any

21 action authorized by clause (A), (B), (C), or

22 (D) is necessary for the conduct of the under23 cover operation.

24 (2) If a corporation or business entity estab25 lished or acquired as part of an OEE undercover op-
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1 eration with a net value of more than $50,000 is to

2 be liquidated, sold, or otherwise disposed of, OEE

3 shall report the circumstances to the Secretary and

4 the Comptroller General, as much in advance of

5 such disposition as the Director of OEE or his or

6 her designee determines is practicable. The proceeds

7 of the liquidation, sale, or other disposition, after ob8 ligations incurred by the corporation or business en9 terprise are met, shall be deposited in the Treasury

10 of the United States as miscellaneous receipts.

11 (3) As soon as the proceeds from an undercover

12 investigative operation with respect to which an ac13 tion is authorized and carried out under this para14 graph are no longer necessary for the conduct of

15 such operation, such proceeds or the balance of such

16 proceeds remaining at the time shall be deposited

17 into the Treasury of the United States as mis18 cellaneous receipts.

19 (4) AUDIT AND REPORT.—

20 (A) The Director of OEE shall conduct a

21 detailed financial audit of each undercover in22 vestigative operation which is closed and shall

23 submit the results of the audit in writing to the

24 Secretary. Not later than 180 days after an

25 OEE undercover operation is closed, the Sec-
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1 retary shall submit to the Congress a report on

2 the results of the audit.

3 (B) The Secretary shall submit a report

4 annually to the Congress, which report may be

5 included in the annual report under section 13,

6 specifying the following information:

7 (i) The number of OEE undercover

8 investigative operations pending as of the

9 end of the period for which such report is

10 submitted.

11 (ii) The number of OEE undercover

12 investigative operations commenced in the

13 1-year period preceding the period for

14 which such report is submitted.

15 (iii) The number of OEE undercover

16 investigative operations closed in the 1-

17 year period preceding the period for which

18 such report is submitted and, with respect

19 to each such closed undercover operation,

20 the results obtained and any civil claims

21 made with respect thereto.

22 (5) For purposes of subparagraph (4)—

23 (A) the term ‘‘closed’’ refers to the earliest

24 point in time at which all criminal proceedings

25 (other than appeals) are concluded, or covert
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1 activities are concluded, whichever occurs later;

2 and

3 (B) the terms ‘‘undercover investigative

4 operation’’ and ‘‘undercover operation’’ mean

5 any undercover investigative operation con6 ducted by OEE—

7 (i) in which the gross receipts (exclud8 ing interest earned) exceed $25,000, or ex9 penditures (other than expenditures for

10 salaries of employees) exceed $75,000; and

11 (ii) which is exempt from section 3302

12 or 9102 of title 31, United States Code,

13 except that clauses (i) and (ii) shall not

14 apply with respect to the report to the

15 Congress required by paragraph (B) of

16 subparagraph (4); and

17 (iii) the term ‘‘employees’’ means em18 ployees, as defined in section 2105 of title

19 5, United States Code, of the Department

20 of Commerce.

21 (d) REFERENCE TO ENFORCEMENT.—For purposes

22 of this section, a reference to the enforcement of this Act

23 or to a violation of this Act includes a reference to the

24 enforcement or a violation of any regulation, license, or

25 order issued under this Act.
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1 SEC. 11. AUTHORITY AND PROCEDURES.

2 (a) UNDER SECRETARY OF COMMERCE.—The Presi3 dent shall appoint, by and with the advice and consent

4 of the Senate, an Under Secretary of Commerce for Ex5 port Administration who shall carry out all functions of

6 the Secretary under this Act, under other statutes that

7 relate to national security, and under such other statutes

8 as the Secretary may delegate. The President shall ap9 point, by and with the advice and consent of the Senate,

10 two Assistant Secretaries of Commerce to assist the Under

11 Secretary in carrying out such functions.

12 (b) REGULATIONS.—The Secretary may issue such

13 regulations as are necessary to carry out the provisions

14 of this Act, and amend or revise them as necessary. Such

15 regulations may apply to financing, transporting, or other

16 servicing of exports subject to this Act and the participa17 tion therein by any person. The Secretary shall consult

18 with the appropriate technical advisory committees au19 thorized under this Act in formulating or amending regu20 lations issued under this Act. Any regulations to carry out

21 the provisions of section 5 may be issued only after the

22 regulations are submitted for review to such departments

23 or agencies as the Secretary considers appropriate. The

24 requirement for prior agency review does not confer the

25 right of concurrence or approval by any official, depart26 ment, or agency to which such regulations are submitted.
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1 (c) CONFIDENTIALITY OF INFORMATION.—

2 (1) EXEMPTIONS FROM DISCLOSURE.—

3 (A) Except as otherwise provided by the

4 third sentence of section 7(b)(2) of this Act, in5 formation obtained under the Export Adminis6 tration Act of 1979 and its predecessor statutes

7 on or before June 30, 1980, which is deemed

8 confidential, including Shipper’s Export Dec9 larations, or with reference to which a request

10 for confidential treatment is made by the per11 son furnishing such information, shall not be

12 subject to disclosure under section 552 of title

13 5, United States Code, and such information

14 shall not be published or disclosed unless the

15 Secretary determines that the withholding

16 thereof is contrary to the national interest.

17 (B) Except as otherwise provided by the

18 third sentence of section 7(b)(2) of this Act, in19 formation obtained under this Act, under the

20 Export Administration Act of 1979 after June

21 30, 1980, or under the Export Administration

22 Regulations as maintained and amended under

23 the authority of the International Emergency

24 Economic Powers Act (50 U.S.C. 1706) may be

25 withheld only to the extent permitted by stat-
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1 ute, except that information submitted, ob2 tained or considered in connection with an ap3 plication for an export license or other export

4 authorization, including the export license or

5 other export authorization itself, classification

6 requests, information obtained during the

7 course of a foreign availability assessment, in8 formation or evidence obtained in the course of

9 any investigation, and information obtained or

10 furnished in connection with multilateral agree11 ments, treaties, or obligations under this Act,

12 under the Export Administration Act of 1979

13 after June 30, 1980, or under the Export Ad14 ministration Regulations as maintained and

15 amended under the authority of the Inter16 national Emergency Economic Powers Act (50

17 U.S.C. 1706) shall not be subject to disclosure

18 under section 552 of title 5, United States

19 Code, and such information shall not be pub20 lished or disclosed unless the Secretary deter21 mines that the withholding thereof is contrary

22 to the national interest.

23 (2) INFORMATION TO CONGRESS AND GAO.—

24 (A) IN GENERAL.—Nothing in this Act

25 shall be construed as authorizing the withhold-
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1 ing of information from the Congress or from

2 the General Accounting Office.

3 (B) AVAILABILITY TO THE CONGRESS.—

4 (i) IN GENERAL.—All information ob5 tained at any time under this Act or pre6 vious Acts regarding the control of exports,

7 including any report or license application

8 required under this Act, shall upon request

9 be made available to the Committee on

10 Foreign Affairs and the Subcommittee on

11 International Economic Policy and Trade

12 of the House of Representatives and the

13 Committee on Banking, Housing, and

14 Urban Affairs and the Subcommittee on

15 International Finance and Monetary Policy

16 of the Senate. Each of the above des17 ignated committees and subcommittees

18 may provide other members of Congress

19 information obtained under this authority

20 provided that such information may not be

21 further disclosed except upon a finding

22 made under the following subparagraph.

23 (ii) PROHIBITION ON FURTHER DIS24 CLOSURE.—No such committee or sub25 committee, or member thereof, and no
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1 other committee, subcommittee, or member

2 of Congress shall disclose any information

3 obtained under this Act or previous Acts

4 regarding the control of exports which is

5 submitted pursuant to this subsection un6 less one of the above-described full commit7 tees determines that the withholding of

8 that information is contrary to the national

9 interest.

10 (C) AVAILABILITY TO THE GAO.—

11 (i) IN GENERAL.—Notwithstanding

12 paragraph (1), information referred to in

13 subparagraph (B) shall, consistent with

14 the protection of intelligence, counterintel15 ligence, and law enforcement sources,

16 methods, and activities, as determined by

17 the agency that originally obtained the in18 formation, and consistent with the provi19 sions of section 313 of the Budget and Ac20 counting Act of 1921, be made available

21 only by the agency, upon request, to the

22 Comptroller General of the United States

23 or to any officer or employee of the Gen24 eral Accounting Office authorized by the
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1 Comptroller General to have access to such

2 information.

3 (ii) PROHIBITION ON FURTHER DIS4 CLOSURES.—No officer or employee of the

5 General Accounting Office shall disclose,

6 except to the Congress in accordance with

7 this paragraph, any such information

8 which is submitted on a confidential basis

9 and from which any individual can be iden10 tified.

11 (3) COMMERCE/CUSTOMS INFORMATION EX12 CHANGE.—Notwithstanding the provisions of section

13 11(c)(1), the Secretary and the Commissioner of

14 Customs shall exchange any licensing and enforce15 ment information with each other which is necessary

16 to facilitate enforcement efforts and effective license

17 decisions.

18 (4) PENALTIES FOR DISCLOSURE OF CON19 FIDENTIAL INFORMATION.—Any officer or employee

20 of the Untied States, or any department or agency

21 thereof, who publishes, divulges, discloses, or makes

22 known in any manner or to any extent not author23 ized by law any information coming to him in the

24 course of his or her employment or official duties or

25 by reason of any examination or investigation made
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1 by, report or record made to or filed with, such de2 partment or agency, or officer or employee thereof,

3 which information is exempt from disclosure under

4 this subsection, shall be fined not more than $1,000,

5 or imprisoned not more than 1 year, or both, and

6 may be removed from office or employment and shall

7 be subject to an administrative fine of not more than

8 $1,000 to be enforced under the authorities and pro9 cedures of section 10 of this Act.

10 (d) PUBLIC PARTICIPATION.—It is the intent of the

11 Congress that, to the extent practicable, all regulations

12 imposing controls on exports under this Act be issued in

13 proposed form with meaningful opportunity for public

14 comment before taking effect. In cases where a regulation

15 imposing controls under this Act is issued with immediate

16 effect, it is the intent of the Congress that meaningful op17 portunity for public comment also be provided and that

18 the regulation be reissued in final form after public com19 ments have been fully considered.

20 (e) CONTROL LIST DEVELOPMENT AND REVIEW.—

21 (1) IN GENERAL.—The Secretary shall establish

22 and maintain a Control List comprising all items re23 quiring a validated license for export to designated

24 countries under this Act. The Control List and other

25 implementing regulations shall clearly identify the
124

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1 specific items controlled to each country. The Sec2 retary shall establish validated license requirements

3 on the Control List.

4 (2) DEVELOPMENT AND REVIEW OF THE CON5 TROL LIST.—The Secretary shall consult with appro6 priate departments and agencies regarding the addi7 tion, deletion, or maintenance of a license require8 ment for a given item. The Secretary of State, in

9 consultation with appropriate departments and agen10 cies, shall be responsible for conducting negotiations

11 and developing negotiating positions with other

12 countries regarding multilateral arrangements for

13 restricting the export of items to carry out the poli14 cies of this Act. All appropriate departments and

15 agencies shall consult to develop initial technical pa16 rameters and item definitions in connection with the

17 development of proposals within the United States

18 Government to be made to multilateral regimes in

19 consultation with the Technical Advisory Committees

20 as provided in paragraph (3) below.

21 For items controlled by a multilateral regime,

22 the Secretary shall conduct periodic reviews sched23 uled sufficiently in advance of regime deliberations

24 to permit the United States to present appropriate

25 proposals after consultation with United States in-
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1 dustry and the technical advisory committees. The

2 Secretary shall seek the advice of United States in3 dustry and appropriate technical advisory commit4 tees as to the control of items subject to this Act.

5 This review shall serve as a basis for United States

6 proposals for revision of items subject to multilateral

7 regimes. The Secretary of State shall seek to ensure

8 that each multilateral regime in which the United

9 States is a member shall review each item on its list

10 of controlled items at least once every 2 years. In

11 any case when such a multilateral regime fails to re12 view an entry on its list of controlled items within

13 2 years of the prior review, the Secretary of State

14 shall propose a review by the relevant multilateral

15 regime of such an entry. Regardless of the frequency

16 of list reviews by a given regime, the Secretary shall

17 review each item controlled in cooperation with a

18 multilateral regime at least once every 2 years.

19 (3) TECHNICAL ADVISORY COMMITTEES AND

20 THE PUBLIC.—The appropriate technical advisory

21 committee appointed under section 4(g) shall be con22 sulted by the Secretary with respect to changes in

23 the Control List established pursuant to this sub24 section, and such technical advisory committee may

25 submit recommendations to the Secretary with re-
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1 spect to such changes. The Secretary shall consider

2 the recommendations of the technical advisory com3 mittee and shall inform the committee of the disposi4 tion of its recommendations. The Secretary shall

5 also seek comments and recommendations from the

6 public in connection with changes in the Control List

7 established pursuant to this subsection. To the maxi8 mum extent practicable and consistent with the con9 duct of international negotiations, in every possible

10 instance, such comments and recommendations shall

11 be taken into consideration in the development of

12 United States Government proposals for all list revi13 sions and positions to be taken in multilateral re14 gimes.

15 (f) AUTHORITY FOR SEMINAR AND PUBLICATIONS

16 FUND.—The Secretary is authorized to cooperate with

17 public agencies, other governments, international organi18 zations, private individuals, private associations, and other

19 groups in connection with seminars, publications, and re20 lated activities to carry out export activities, including

21 educating the public or government officials in the applica22 tion of this Act and the regulations issued under this Act.

23 The Secretary is further authorized to accept contribu24 tions of funds, property, or services in connection with

25 such activities to recover the cost of such programs and
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1 activities over time. Contributions shall include payments

2 for materials or services provided as part of these activi3 ties. The contributions collected may be retained for use

4 in covering the costs of these activities, and for supporting

5 all outreach functions of the Department in connection

6 with this Act and other export control programs of the

7 United States and other governments.

8 (g) SUPPORT OF OTHER COUNTRIES’ EXPORT CON9 TROL PROGRAM.—The Secretary may participate in the

10 education and training of officials of other countries on

11 the principles and procedures for the implementation of

12 effective export controls.

13 (h) APPLICABILITY OF ADMINISTRATIVE PROCE14 DURES ACT.—

15 (1) EXEMPTION.—Except as provided in sub16 section (d) of section 9, the functions exercised

17 under this Act are excluded from the operation of

18 sections 551, 553 through 559, and 701 through

19 706 of title 5, United States Code.

20 (2) JUDICIAL REVIEW.—Except as provided by

21 subsections (d), (g), and (j) of section 9, a final

22 agency action under this Act may be reviewed by ap23 peal to the United States Court of Appeals for the

24 District of Columbia Circuit, to the extent provided
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1 in this paragraph. The court’s review in any such

2 appeal shall be limited to determining whether—

3 (A) a regulation—

4 (i) fails to take an action compelled by

5 this Act;

6 (ii) takes an action prohibited by this

7 Act; or

8 (iii) otherwise violates this Act;

9 (B) an agency action violates this Act;

10 (C) an agency action violates an agency

11 regulation establishing time requirements or

12 other procedural requirements of a non-discre13 tionary nature;

14 (D) the issuance of regulations compelled

15 by this Act complies with time restrictions im16 posed by this Act;

17 (E) license decisions are made and appeals

18 thereof are concluded in compliance with time

19 restrictions imposed by this Act;

20 (F) classifications and advisory opinions

21 are issued in compliance with time restrictions

22 imposed by this Act;

23 (G) unfair impact determinations are in

24 compliance with time restrictions imposed by

25 this Act; or
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1 (H) the United States has complied with

2 the requirements of section 5(k) after an unfair

3 impact determination has been rendered.

4 (i) INCORPORATED COMMODITIES, TECHNOLOGY,

5 AND SOFTWARE.—

6 (1) COMMODITIES CONTAINING CONTROLLED

7 PARTS AND COMPONENTS.—Export licenses may not

8 be required under this Act or any other provision of

9 law for a commodity solely because the commodity

10 contains parts or components subject to export con11 trol under this Act if such parts or components—

12 (A) are essential to the functioning of the

13 good;

14 (B) are customarily included in sales of the

15 item in countries other than target countries;

16 and

17 (C) comprise 25 percent or less of the total

18 value of the good, unless the good itself, if ex19 ported, would by virtue of the functional char20 acteristics of the good as a whole make a sig21 nificant contribution to the military or pro22 liferation potential of a target country or end

23 user which would prove detrimental to the na24 tional security of the United States.
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1 (2) REEXPORTS OF FOREIGN-MADE ITEMS IN2 CORPORATING UNITED STATES ITEMS.—Except for

3 countries embargoed under this Act, the Inter4 national Emergency Economic Powers Act or the

5 Trading with the Enemy Act, and except for coun6 tries named as terrorist-supporting countries under

7 section 5(j)(4), no authority or permission may be

8 required under this Act to—

9 (A) reexport a foreign-made commodity in10 corporating United States origin commodities

11 valued at 25 percent or less of the total value

12 of the foreign-made commodity;

13 (B) reexport foreign-made software incor14 porating United States origin software valued

15 at 25 percent or less of the total value of the

16 foreign-made software; or

17 (C) reexport foreign technology commin18 gled with or drawn from United States origin

19 technology valued at 25 percent or less of the

20 total value of the foreign technology.

21 For countries embargoed under this Act, the Inter22 national Emergency Economic Powers Act or the

23 Trading with the Enemy Act, and except for coun24 tries named as terrorist-supporting countries under
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1 section 5(j)(4), no authority or permission may be

2 required under this Act to—

3 (D) reexport a foreign-made commodity in4 corporating United States origin commodities

5 valued at 10 percent or less of the total value

6 of the foreign-made commodity;

7 (E) reexport foreign-made software incor8 porating United States origin software valued

9 at 10 percent or less of the total value of the

10 foreign-made software; or

11 (F) reexport foreign technology commin12 gled with or drawn from United States origin

13 technology valued at 10 percent or less of the

14 total value of the foreign technology.

15 For purposes of this subsection, technology and

16 source code used to design or produce foreign-made

17 commodities or software are not incorporated into

18 such foreign-made commodities or software. Not19 withstanding the above provisions, the Secretary

20 may require firms to report to the Department of

21 Commerce their proposed calculations and underly22 ing data sufficient for the Department of Commerce

23 to evaluate the adequacy of those calculations and

24 data related to commodities, technology, and soft-
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1 ware before a reexporter may rely upon this exclu2 sion from controls.

3 (j) EXCEPTIONS FOR MEDICAL AND HUMANITARIAN

4 PURPOSES.—This Act does not authorize controls on—

5 (1) medical instruments and equipment subject

6 to the provisions of subsection (j)(1) of this section;

7 (2) medicine or medical supplies; or

8 (3) donations of items that are intended to

9 meet basic human needs including food, educational

10 materials, seeds, hand tools, water resources equip11 ment, clothing and shelter materials, and basic

12 household supplies.

13 (k) SANCTITY OF EXISTING CONTRACTS AND LI14 CENSES.—

15 (1) IN GENERAL.—Under a unilateral control

16 imposed under section 5 of this Act, the President

17 may not prohibit the export or reexport of items—

18 (A) in performance of a contract, agree19 ment, or other contractual commitment entered

20 into before the effective date of any export con21 trols mandated by this law, or the date on

22 which the President reports to the Congress the

23 President’s intention to impose controls on the

24 export or reexport of such items; or
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1 (B) under a validated license issued under

2 this Act before the effective date of any export

3 controls mandated by this law, or the date on

4 which the President reports to the Congress the

5 President’s intention to impose controls on the

6 export or reexport of such items.

7 (2) EXCEPTION.—The prohibition in paragraph

8 (1) shall not apply if the President determines and

9 certifies to the Congress that—

10 (A) a breach of the peace poses a serious

11 and direct threat to the strategic interest of the

12 United States;

13 (B) the prohibition or curtailment of each

14 such contract, agreement, commitment, license,

15 or authorization to be controlled will be directly

16 instrumental in remedying the situation posing

17 the direct threat; and

18 (C) the emergency controls will continue

19 only so long as the direct threat persists.

20 (3) The determination authority provided to the

21 President in this subparagraph (2) may not be dele22 gated.

23 (l) FACT-FINDING AUTHORITY.—

24 (1) To the extent necessary or appropriate to

25 the administration of this Act or any multilateral re-
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1 gime in which the United States participates pursu2 ant to this Act, the Secretary (and officers or em3 ployees of the Department of Commerce designated

4 by the Secretary), the Commissioner of Customs, or

5 the head of any other department or agency des6 ignated by the Secretary may exercise the authori7 ties described in paragraph (2).

8 (2) Any officer or employee designated by the

9 Secretary may do the following in carrying out the

10 authority of this Act:

11 (A) Make investigations of, obtain informa12 tion from, require reports or the keeping of

13 such records by, make inspection of the books,

14 records, and other writings, premises, or prop15 erty of, and take the sworn testimony of, any

16 person.

17 (B) Administer oaths or affirmations, and

18 by subpoena require any person to appear and

19 testify or to appear and produce books, records,

20 and other writings, or both. In the case of con21 tumacy by, or refusal to obey a subpoena issued

22 to, any such person, a district court of the

23 United States, after notice to any such person

24 and hearing, shall have jurisdiction to issue an

25 order requiring such person to appear and give
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1 testimony or to appear and produce books,

2 records, and other writings, or both, and any

3 failure to obey such order of the court may be

4 punished by such court as a contempt thereof.

5 (m) MILITARY CRITICAL TECHNOLOGIES LIST DE6 VELOPMENT, REVIEW AND USE.—

7 (1) In developing the Military Critical Tech8 nologies List (MCTL), established pursuant to sub9 section 4(c) of this Act, primary emphasis shall be

10 given to—

11 (A) development and production tech12 nology;

13 (B) test, inspection, and production equip14 ment;

15 (C) advanced materials, chemicals, and bi16 ological agents;

17 (D) unique software; and

18 (E) systems, subsystems, assemblies and

19 components.

20 (2) The list referred to in paragraph (1) shall

21 be sufficiently specific to guide the determinations of

22 any official exercising export licensing responsibil23 ities under this Act. For purposes of completeness

24 and cross-reference, the MCTL shall include both

25 dual-use items controlled by this Act and other mili-
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1 tarily critical items that may be controlled under

2 other authorities, including the Arms Export Control

3 Act (22 U.S.C. 2770 et seq.)

4 (3) Consistent with the policies of section 3 and

5 the criteria of section 5, the Secretary and the Sec6 retary of Defense shall propose integration of items

7 on the list of militarily critical technologies into the

8 Control List in accordance with the requirements of

9 paragraph (1) of this subsection. Any disagreement

10 between the Secretary and the Secretary of Defense

11 regarding the integration of an item on the list of

12 militarily critical technologies into the Control List

13 shall be resolved by the President.

14 (4) The Secretary of Defense shall establish a

15 procedure for reviewing the MCTL on an ongoing

16 basis for the purpose of removing from the MCTL

17 any items that are no longer militarily critical. The

18 Secretary of Defense may add to the MCTL any

19 item that the Secretary of Defense determines is

20 militarily critical, consistent with the provisions of

21 paragraph (1) of this subsection. If the Secretary

22 and the Secretary of Defense disagree as to whether

23 any change in the MCTL by the addition or removal

24 of an item should also be made in the Control List,

25 the President shall resolve the disagreement.
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1 (5) The establishment of adequate export con2 trols for militarily critical technology, equipment,

3 and materials shall be accompanied by suitable re4 ductions in the controls on the products of that tech5 nology, equipment, and materials.

6 SEC. 12A. SANCTIONS FOR PROLIFERATION ACTIVITY AND

7 THE USE OF CHEMICAL AND BIOLOGICAL

8 WEAPONS AND MISSILES.

9 (a) DETERMINATIONS.—

10 (1) DETERMINATION OF ACTIVITY SUPPORTING

11 THE PROLIFERATION OF CHEMICAL AND BIOLOGICAL

12 WEAPONS AND MISSILES.—The President shall de13 termine whether any foreign person has, on or after

14 the date of the enactment of this section, knowingly

15 or with reason to know contributed materially to the

16 efforts of any government, group, entity, or project

17 to use, design, develop, produce, stockpile, or other18 wise acquire chemical or biological weapons or mis19 siles—

20 (A) through the export or transfer of—

21 (i) any item on the MTCR Annex

22 whether or not of United States-origin; or

23 (ii) any chemicals, biological agents,

24 or equipment which may contribute to a

25 chemical or biological weapons program
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1 such as those listed by the Australia

2 Group, whether or not of United States-or3 igin;

4 (B) by participating in any financial trans5 action related to the activity described in para6 graphs (1)(A) or (1)(B); or

7 (C) by facilitating the activity described in

8 paragraphs (1)(A) or (1)(B);

9 (D) This subsection does not apply—

10 (i) under (a)(1)(A)(i) to an export or

11 transfer that is authorized by the govern12 ment of a country that is an adherent to

13 the MTCR or is to a country that is an ad14 herent to the MTCR; or

15 (ii) under (a)(1)(A)(ii) for an export

16 or transfer that is to a country that is both

17 authorized by a country that is an adher18 ent to the Australia Group or a signatory

19 to the Chemical Weapons Convention and

20 is to a country that is an adherent to the

21 Australia Group or a signatory to the

22 Chemical Weapons Convention.

23 (2) DETERMINATION OF USE OF CHEMICAL OR

24 BIOLOGICAL WEAPONS.—Whenever persuasive infor25 mation becomes available to the executive branch in-
139

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1 dicating the substantial possibility that, on or after

2 the date of enactment of this Act, the government

3 of a foreign country has made substantial prepara4 tion to use chemical or biological weapons, the Presi5 dent shall, within 60 days after the receipt of such

6 information by the executive branch, determine

7 whether that government, on or after such date of

8 enactment, has used chemical or biological weapons

9 in violation of international law or has used lethal

10 chemical or biological weapons against its own na11 tionals.

12 (b) PERSONS AGAINST WHICH SANCTIONS ARE TO

13 BE IMPOSED.—In the event of an affirmative determina14 tion under subsection (a)(1)(A)(i) or (a)(1)(A)(ii), the

15 President shall impose sanctions described under sub16 section (c) on the foreign person that engaged in, facili17 tated, or solicited the conduct that is the subject of the

18 determination, on other persons as the President deter19 mines should be subject to sanctions because they are re20 lated to that person, and on any successor of a sanctioned

21 person.

22 (c) SANCTIONS.—

23 (1) MANDATORY SANCTIONS.—The following

24 sanctions shall be imposed for a minimum of 2 years
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1 in the event the President makes a determination

2 under subsections (a)(1)(A)(i) or (a)(1)(A)(ii):

3 (A) If the determination is for activity re4 lated to missile proliferation, validated licenses

5 for items on the MTCR annex shall be denied

6 under this Act and the Arms Export Control

7 Act and imports of such items from such enti8 ties shall be prohibited.

9 (B) If the determination is for activity re10 lated to chemical or biological weapons pro11 liferation, validated licenses for items listed by

12 the Australia Group shall be denied under this

13 Act and the Arms Export Control Act and im14 ports of such items from such entities shall be

15 prohibited.

16 (C) The United States Government shall

17 not procure, or enter into any contract for the

18 procurement of, any services, commodities, soft19 ware, and technology, or other products from or

20 produced by any entity described in subsection

21 (a)(2).

22 (2) DISCRETIONARY SANCTIONS.—In addition

23 to the sanctions described in paragraph (1), the

24 President may also take any of the actions listed in

25 paragraphs (3) and (5), if the President determines
141

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1 that such additional measures would further the ob2 jectives of this section. Such additional sanctions

3 shall be proportionate to the harm the sanctioned

4 behavior has caused or will cause the national secu5 rity or nonproliferation interests of the United

6 States.

7 (3) MANDATORY SANCTIONS FOR USE OF

8 CHEMICAL OR BIOLOGICAL WEAPONS.—The follow9 ing sanctions shall be imposed in the event the

10 President makes a determination under subsection

11 (a)(2):

12 (A) FOREIGN ASSISTANCE.—The United

13 States Government shall terminate assistance to

14 that country under the Foreign Assistance Act

15 of 1961, except for urgent humanitarian assist16 ance and food or other agricultural commodities

17 or products.

18 (B) ARMS SALES.—The United States

19 Government shall terminate—

20 (i) sales to that country under the

21 Arms Export Control Act of any defense

22 articles, defense services, or design and

23 construction services; and
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1 (ii) licenses for the export to that

2 country of any item on the United States

3 Munitions List.

4 (C) ARMS SALES FINANCING.—The United

5 States Government shall terminate all foreign

6 military financing for that country under the

7 Arms Export Control Act.

8 (D) DENIAL OF UNITED STATES GOVERN9 MENT CREDIT OR OTHER FINANCIAL ASSIST10 ANCE.—The United States Government shall

11 deny to that country any credit, credit guaran12 tees, or other financial assistance by any de13 partment, agency, or instrumentality of the

14 United States Government, including the Ex15 port-Import Bank of the United States.

16 (E) EXPORTS OF NATIONAL SECURITY17 SENSITIVE ITEMS.—The authorities of this Act

18 shall be used to prohibit the export to that

19 country of any items controlled for non-pro20 liferation, regional stability, or national security

21 reasons.

22 (4) ADDITIONAL SANCTIONS IF CERTAIN CONDI23 TIONS NOT MET.—Unless, within 3 months after

24 making a determination pursuant to subsection

25 (a)(2) with respect to a foreign government, the
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1 President determines and certifies, in writing, to the

2 Congress that—

3 (A) the government is no longer using

4 chemicals or biological weapons in violation of

5 international law or using lethal chemicals or

6 biological weapons against its own nationals;

7 (B) the government has provided reliable

8 assurances that it will not, in the future, en9 gage in any such activities; and

10 (C) the government is willing to allow on11 site inspections by United Nations observers or

12 other internationally-recognized, impartial ob13 servers, or other reliable means exist, to ensure

14 that government is not using chemical or bio15 logical weapons in violation of international law

16 and is not using lethal chemical or biological

17 weapons against its own nationals, then the

18 President, after consultation with the Congress,

19 shall impose on that country the sanctions set

20 forth in at least 3 of subparagraphs (A)

21 through (F) of paragraph (5).

22 (5) ADDITIONAL SANCTIONS FOR USE OF

23 CHEMICAL OR BIOLOGICAL WEAPONS.—The sanc24 tions referred to in paragraph (4) are the following:
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1 (A) MULTILATERAL DEVELOPMENT BANK

2 ASSISTANCE.—The United States Government

3 shall oppose, in accordance with section 701 of

4 the International Financial Institutions Act (22

5 U.S.C. 262d), the extension of any loan or fi6 nancial or technical assistance to that country

7 by international financial institutions.

8 (B) BANK LOANS.—The United States

9 Government shall prohibit any United States

10 bank from making any loan or providing any

11 credit to the government of that country, except

12 for loans or credits for the purpose of purchas13 ing food or other agricultural commodities or

14 products.

15 (C) FURTHER EXPORT RESTRICTIONS.—

16 The authorities of this Act may be used to pro17 hibit exports to the country of all other items

18 (excluding food and other agricultural commod19 ities and products).

20 (D) IMPORT RESTRICTIONS.—Restriction

21 shall be imposed on the importation into the

22 United States of articles (which may include pe23 troleum or any petroleum product) that are the

24 growth, product, or manufacture of that coun25 try.
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1 (E) DIPLOMATIC RELATIONS.—The Presi2 dent shall use constitutional authorities to

3 downgrade or suspend diplomatic relations be4 tween the United States and the government of

5 that country.

6 (F) PRESIDENTIAL ACTION REGARDING

7 AVIATION.—

8 (i)(I) The President is authorized to

9 notify the government of a country with re10 spect to which the President has made a

11 determination, pursuant to subsection

12 12(a), regarding intention to suspend the

13 authority of foreign air carriers owned or

14 controlled by the government of that coun15 try to engage in foreign air transportation

16 to or from the United States.

17 (II) Within 10 days after the date of

18 notification of a government under

19 subclause (I), the Secretary of Transpor20 tation shall take all steps necessary to sus21 pend at the earliest possible date the au22 thority of any foreign air carrier owned or

23 controlled, directly or indirectly, by that

24 government to engage in foreign air trans25 portation to or from the United States,
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1 notwithstanding any agreement relating to

2 air services.

3 (ii)(I) The President may direct the

4 Secretary of State to terminate any air

5 service agreement between the United

6 States and a country with respect to which

7 the President has made a determination

8 pursuant to subsection (a), in accordance

9 with the provisions of that agreement.

10 (II) Upon termination of an agree11 ment under this clause, the Secretary of

12 Transportation shall take such steps as

13 may be necessary to revoke at the earliest

14 possible date the right of any foreign air

15 carrier owned, or controlled, directly or in16 directly, by the government of that country

17 to engage in foreign air transportation to

18 or from the United States.

19 (iii) The Secretary of Transportation

20 may provide for such exceptions from

21 clauses (i) and (ii) as the Secretary consid22 ers necessary to provide for emergencies in

23 which the safety of an aircraft or its crew

24 or passengers is threatened.
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1 (iv) For purposes of this subpara2 graph, the terms ‘‘air transportation’’, ‘‘air

3 carrier’’, ‘‘foreign air carrier’’, and ‘‘for4 eign air transportation’’ have the meanings

5 such terms have under section 101 of the

6 Federal Aviation of 1958 (49 U.S.C. App.

7 1301).

8 (d) DEFERRAL AND LIMITATION.—

9 (1) The President may delay the making of a

10 determination under subsection (a) or the imposition

11 of sanctions in order to protect—

12 (A) ongoing criminal investigations; or

13 (B) sensitive intelligence sources and meth14 ods which are being used to acquire further in15 formation on the proliferation of weapons of

16 mass destruction, their delivery systems, or ad17 vanced conventional weapons.

18 The President shall exercise this authority only when

19 the President determines that nonproliferation objec20 tives do not outweigh the need to delay the imposi21 tion of sanctions to avoid compromising the criminal

22 investigation or intelligence sources and methods in23 volved. The President shall proceed when the basis

24 for the delay no longer exists.
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1 (2) The President may delay the imposition of

2 sanctions for up to 180 days if the United States is

3 engaged in diplomatic efforts and consultations with

4 the objective of—

5 (A) curtailing the policies and conduct of

6 the government or person in the country of

7 weapons activity determined to have engaged in

8 the sanctioned conduct; or

9 (B) obtaining from the government with

10 effective jurisdiction over the sanctioned person

11 appropriate sanctions against such person or

12 the initiation of legal process to impose such

13 sanctions.

14 If such diplomatic efforts and consultations succeed

15 (i) in curtailing the conduct of the government or

16 person engaged in the sanctioned conduct, or (ii) in

17 obtaining enforcement action in accordance with

18 subparagraph (B), the President shall not be re19 quired to apply or maintain sanctions under this sec20 tion.

21 (3) The President should seek multilateral sup22 port for sanctions against activity covered by this

23 section. If multilateral sanctions are achieved that

24 the President determines will be more effective than

25 unilateral sanctions in furthering the national secu-
149

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1 rity or nonproliferation objectives of the United

2 States, the President shall not be required to exer3 cise the authority in this section in a manner incon4 sistent with such multilateral sanctions.

5 (e) EXCEPTIONS.—The President shall not be re6 quired to apply or maintain sanctions under this section—

7 (1) in the case of procurement of defense arti8 cles or defense services—

9 (A) under existing contracts or sub10 contracts, including the exercise of options for

11 production quantities to satisfy United States

12 operational military requirements;

13 (B) if the President determines that the

14 person to which the sanctions would otherwise

15 be applied is a sole source supplier of the de16 fense articles or services, that the defense arti17 cles or services are essential, and that alter18 native sources are not readily or reasonably

19 available; or

20 (C) if the President determines that such

21 articles or services are essential to the national

22 security under defense coproduction agree23 ments;

24 (2) to the import of—
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1 (A) products or services provided under

2 contracts entered into before the data on which

3 the President publishes notice of intention to

4 impose sanctions; or

5 (B)(i) spare parts;

6 (ii) component parts, but not finished

7 products, essential to United States products or

8 production;

9 (iii) information and technology essential

10 to United States products or production; or

11 (iv) routine servicing and maintenance of

12 products, to the extent that alternative sources

13 are not readily or reasonably available;

14 (3) to medical or other humanitarian items; or

15 (4) to any transaction subject to the reporting

16 requirements of title V of the National Security Act

17 of 1947;

18 (5) when the President determines, categori19 cally or on a case-by-case basis, that the application

20 of sanctions to bar performance of a contract or

21 agreement entered into before the date of the impo22 sition of sanctions is not necessary to achieve the

23 national security or nonproliferation objectives of the

24 United States and would be contrary to the national

25 interest.
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1 (f) TERMINATION OF SANCTIONS FOR USING CHEMI2 CAL OR BIOLOGICAL WEAPONS.—During the minimum 2

3 years period of the mandatory sanctions imposed pursuant

4 to a determination under subsection (a)(2), such sanctions

5 may be removed if the President determines and so cer6 tifies to the Congress that—

7 (1) the government of that country has pro8 vided reliable assurances that it will not use chemi9 cal or biological weapons in violation of international

10 law and will not use lethal chemical or biological

11 weapons against its own nationals;

12 (2) that government is not making preparations

13 to use chemical or biological weapons in violation of

14 international law or to use lethal chemical or biologi15 cal weapons against its own nationals;

16 (3) that government is willing to allow on-site

17 inspections by United Nations observers or other

18 internationally-recognized, impartial observers to

19 verify that it is not making preparations to use

20 chemical or biological weapons in violation of inter21 national law or to use lethal chemical or biological

22 weapons against its own nationals, or other reliable

23 means exist to verify that it is not making such

24 preparations; and
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1 (4) that government is making restitution to

2 those affected by any use of chemical or biological

3 weapons in violation of international law or by any

4 use of lethal chemical or biological weapons against

5 its own nationals.

6 (g) WAIVER.—

7 (1) CRITERION FOR WAIVER.—The President

8 may waive or partially waive the application of any

9 sanction imposed on any entity pursuant to this sec10 tion, if the President determines and certifies to

11 Congress that such waiver is important to the na12 tional interests of the United States.

13 (2) NOTIFICATION OF AND REPORT TO CON14 GRESS.—If the President decides to exercise the

15 waiver authority provided in paragraph (1), the

16 President shall so notify the Congress not less than

17 20 days before the waiver takes effect. Such notifica18 tion shall include a report stating the reasons for ex19 ercise of the waiver authority.

20 (h) REGULATORY IMPLEMENTATION OF SANC21 TIONS.—For items subject to the jurisdiction of the Sec22 retary under this Act, sanctions shall be implemented in

23 regulations issued by the Secretary and shall specify the

24 scope of products and entities. For items subject to the

25 jurisdiction of the Secretary of State under the Arms Ex-
153

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1 port Control Act, sanctions shall be implemented in regu2 lations issued by the Secretary of State and shall specify

3 the scope of products and entities.

4 SEC. 12B. SANCTIONS FOR PROLIFERATION ACTIVITY AND

5 THE USE OF CHEMICAL AND BIOLOGICAL

6 WEAPONS.

7 Section 72 of the Arms Export Control Act is amend8 ed to read as follows:

9 ‘‘SEC. 72. SANCTIONS AGAINST CERTAIN FOREIGN PER10 SONS AND COUNTRIES.

11 ‘‘(a) DETERMINATIONS.—

12 ‘‘(1) DETERMINATION OF ACTIVITY SUPPORT13 ING THE PROLIFERATION OF CHEMICAL AND BIO14 LOGICAL WEAPONS AND MISSILES.—The President

15 shall determine whether any foreign person has, on

16 or after the date of the enactment of this section,

17 knowingly or with reason to know contributed mate18 rially to the efforts of any government, group, entity,

19 or project to use, design, develop, produce, stockpile,

20 or otherwise acquire chemical or biological weapons

21 or missiles—

22 ‘‘(A) through the export or transfer of—

23 ‘‘(i) any item on the MTCR Annex

24 whether or not of United States-origin;

25 and
154

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1 ‘‘(ii) any chemicals, biological agents,

2 or equipment which may contribute to a

3 chemical or biological weapons program

4 such as those listed by the Australia

5 Group, whether or not of United States-or6 igin;

7 ‘‘(B) by participating in any financial

8 transaction related to the activity described in

9 paragraphs (1)(A) or (1)(B); or

10 ‘‘(C) by facilitating or soliciting the activ11 ity described in paragraphs (1)(A) or (1)(B);

12 ‘‘(D) This subsection does not apply—

13 ‘‘(i) under (a)(1)(A)(i) to an export or

14 transfer that is authorized by the govern15 ment of a country that is an adherent to

16 the MTCR or is to a country that is an ad17 herent to the MTCR; or

18 ‘‘(ii) under (a)(1)(A)(ii) for an export

19 or transfer that is to a country that is both

20 authorized by a country that is an adher21 ent to the Australia Group or a signatory

22 to the Chemical Weapons Convention and

23 is to a country that is an adherent to the

24 Australia Group or a signatory to the

25 Chemical Weapons Convention.
155

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1 ‘‘(2) DETERMINATION OF USE OF CHEMICAL OR

2 BIOLOGICAL WEAPONS.—Whenever persuasive infor3 mation becomes available to the executive branch in4 dicating the substantial possibility that, on or after

5 the date of enactment of this Act, the government

6 of a foreign country has made substantial prepara7 tion to use chemical or biological weapons, the Presi8 dent shall, within 60 days after the receipt of such

9 information by the executive branch, determine

10 whether that government, on or after such date of

11 enactment, has used chemical or biological weapons

12 in violation of international law or has used lethal

13 chemical or biological weapons against its own na14 tionals.

15 ‘‘(b) PERSONS AGAINST WHICH SANCTIONS ARE TO

16 BE IMPOSED.—In the event of an affirmative determina17 tion under subsection (a)(1)(A)(i) or (a)(1)(A)(ii), the

18 President shall impose sanctions described under sub19 section (c) on the foreign person that engaged in, facili20 tated, or solicited the conduct that is the subject of the

21 determination, on other persons as the President deter22 mines should be subject to sanctions because they are re23 lated to that person, and on any successor of a sanctioned

24 person.

25 ‘‘(c) SANCTIONS.—
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1 ‘‘(1) MANDATORY SANCTIONS.—The following

2 sanctions shall be imposed for a minimum of 2 years

3 in the event the President makes a determination

4 under subsections (a)(1)(A)(i) or (a)(1)(A)(ii):

5 ‘‘(A) If the determination is for activity re6 lated to missile proliferation, validated licenses

7 for items on the MTCR annex shall be denied

8 under this Act and the Export Administration

9 Act and imports of such items for such entities

10 shall be prohibited.

11 ‘‘(B) If the determination is for activity re12 lated to chemical or biological weapons pro13 liferation, validated licenses for items listed by

14 the Australia Group shall be denied under this

15 Act and the Export Administration Act and im16 ports of such items for such entities shall be

17 prohibited.

18 ‘‘(C) The United States Government shall

19 not procure, or enter into any contract for the

20 procurement of, any services, commodities, soft21 ware, and technology, or other products from or

22 produced by any entity described in subsection

23 (a)(2).

24 ‘‘(2) DISCRETIONARY SANCTIONS.—In addition

25 to the sanctions described in paragraph (1), the
157

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1 President may also take any of the actions listed in

2 paragraphs (3) and (5), if the President determines

3 that such additional measures would further the ob4 jectives of this section. Such additional sanctions

5 shall be proportionate to the harm the sanctioned

6 behavior has caused or will cause the national secu7 rity or nonproliferation interests of the United

8 States.

9 ‘‘(3) MANDATORY SANCTIONS FOR USE OF

10 CHEMICAL OR BIOLOGICAL WEAPONS.—The follow11 ing sanctions shall be imposed in the event the

12 President makes a determination under subsection

13 (a)(2):

14 ‘‘(A) FOREIGN ASSISTANCE.—The United

15 States Government shall terminate assistance to

16 that country under the Foreign Assistance Act

17 of 1961, except for urgent humanitarian assist18 ance and food or other agricultural commodities

19 or products.

20 ‘‘(B) ARMS SALES.—The United States

21 Government shall terminate—

22 ‘‘(i) sales to that country under this

23 Act of any defense articles, defense serv24 ices, or design and construction services;

25 and
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1 ‘‘(ii) licenses for the export to that

2 country of any item on the United States

3 Munitions List.

4 ‘‘(C) ARMS SALES FINANCING.—The

5 United States Government shall terminate all

6 foreign military financing for that country

7 under this Act.

8 ‘‘(D) DENIAL OF UNITED STATES GOVERN9 MENT CREDIT OR OTHER FINANCIAL ASSIST10 ANCE.—The United States Government shall

11 deny to that country any credit, credit guaran12 tees, or other financial assistance by any de13 partment, agency, or instrumentality of the

14 United States Government, including the Ex15 port-Import Bank of the United States.

16 ‘‘(E) EXPORTS OF NATIONAL SECURITY17 SENSITIVE ITEMS.—The authorities of this Act

18 shall be used to prohibit the export to that

19 country of any items controlled for non20 proliferation, regional stability, or national se21 curity reasons.

22 ‘‘(4) ADDITIONAL SANCTIONS IF CERTAIN CON23 DITIONS NOT MET.—Unless, within 3 months after

24 making a determination pursuant to subsection

25 (a)(2) with respect to a foreign government, the
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1 President determines and certifies, in writing, to the

2 Congress that—

3 ‘‘(A) the government is no longer using

4 chemicals or biological weapons in violation of

5 international law or using lethal chemicals or

6 biological weapons against its own nationals;

7 ‘‘(B) the government has provided reliable

8 assurances that it will not, in the future, en9 gage in any such activities; and

10 ‘‘(C) the government is willing to allow on11 site inspections by United Nations observers or

12 other internationally-recognized, impartial ob13 servers, or other reliable means exist, to ensure

14 that government is not using chemicals or bio15 logical weapons in violation of international law

16 and is not using lethal chemical or biological

17 weapons against its own nationals, then the

18 President, after consultation with the Congress,

19 shall impose on that country the sanctions set

20 forth in at least 3 of subparagraphs (A)

21 through (F) of paragraph (5).

22 ‘‘(5) ADDITIONAL SANCTIONS FOR USE OF

23 CHEMICAL OR BIOLOGICAL WEAPONS.—The sanc24 tions referred to in paragraph (4) are the following:
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1 ‘‘(A) MULTILATERAL DEVELOPMENT BANK

2 ASSISTANCE.—The United States Government

3 shall oppose, in accordance with section 701 of

4 the International Financial Institutions Act (22

5 U.S.C. 262d), the extension of any loan or fi6 nancial or technical assistance to that country

7 by international financial institutions.

8 ‘‘(B) BANK LOANS.—The United States

9 Government shall prohibit any United States

10 bank from making any loan or providing any

11 credit to the government of that country, except

12 for loans or credits for the purpose of purchas13 ing food or other agricultural commodities or

14 products.

15 ‘‘(C) FURTHER EXPORT RESTRICTIONS.—

16 The authorities of this Act may be used to pro17 hibit exports to the country of all other items

18 (excluding food and other agricultural commod19 ities and products).

20 ‘‘(D) IMPORT RESTRICTIONS.—Restriction

21 shall be imposed on the importation into the

22 United States of articles (which may include pe23 troleum or any petroleum product) that are the

24 growth, product, or manufacture of that coun25 try.
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1 ‘‘(E) DIPLOMATIC RELATIONS.—The

2 President shall use constitutional authorities to

3 downgrade or suspend diplomatic relations be4 tween the United States and the government of

5 that country.

6 ‘‘(F) PRESIDENTIAL ACTION REGARDING

7 AVIATION.—

8 ‘‘(i)(I) The President is authorized to

9 notify the government of a country with re10 spect to which the President has made a

11 determination, pursuant to subsection

12 12(a), regarding intention to suspend the

13 authority of foreign air carriers owned or

14 controlled by the government of that coun15 try to engage in foreign air transportation

16 to or from the United States.

17 ‘‘(II) Within 10 days after the date of

18 notification of a government under

19 subclause (I), the Secretary of Transpor20 tation shall take all steps necessary to sus21 pend at the earliest possible date the au22 thority of any foreign air carrier owned or

23 controlled, directly or indirectly, by that

24 government to engage in foreign air trans25 portation to or from the United States,
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1 notwithstanding any agreement relating to

2 air services.

3 ‘‘(ii)(I) The President may direct the

4 Secretary of State to terminate any air

5 service agreement between the United

6 States and a country with respect to which

7 the President has made a determination

8 pursuant to subsection (a), in accordance

9 with the provisions of that agreement.

10 ‘‘(II) Upon termination of an agree11 ment under this clause, the Secretary of

12 Transportation shall take such steps as

13 may be necessary to revoke at the earliest

14 possible date the right of any foreign air

15 carrier owned, or controlled, directly or in16 directly, by the government of that country

17 to engage in foreign air transportation to

18 or from the United States.

19 ‘‘(iii) The Secretary of Transportation

20 may provide for such exceptions from

21 clauses (i) and (ii) as the Secretary consid22 ers necessary to provide for emergencies in

23 which the safety of an aircraft or its crew

24 or passengers is threatened.
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1 ‘‘(iv) for purposes of this subpara2 graph, the terms ‘air transportation’, ‘air

3 carrier’, ‘foreign air carrier’, and ‘foreign

4 air transportation’ have the meanings such

5 terms have under section 101 of the Fed6 eral Aviation Act of 1958 (49 U.S.C. App.

7 1301).

8 ‘‘(d) DEFERRAL AND LIMITATION.—

9 ‘‘(1) The President may delay the making of a

10 determination under subsection (a) or the imposition

11 of sanctions in order to protect—

12 ‘‘(A) ongoing criminal investigations; or

13 ‘‘(B) sensitive intelligence sources and

14 methods which are being used to acquire fur15 ther information on the proliferation of weapons

16 of mass destruction, their delivery systems, or

17 advanced conventional weapons.

18 The President shall exercise this authority only when

19 the President determines that nonproliferation objec20 tives do not outweigh the need to delay the imposi21 tion of sanctions to avoid compromising the criminal

22 investigation or intelligence sources and methods in23 volved. The President shall proceed when the basis

24 for the delay no longer exists.
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1 ‘‘(2) The President may delay the imposition of

2 sanctions for up to 180 days if the United States is

3 engaged in diplomatic efforts and consultations with

4 the objective of—

5 ‘‘(A) curtailing the policies and conduct of

6 the government or person in the country of

7 weapons activity determined to have engaged in

8 the sanctioned conduct; or

9 ‘‘(B) obtaining from the government with

10 effective jurisdiction over the sanctioned person

11 appropriate sanctions against such person or

12 the initiation of legal process to impose such

13 sanctions.

14 If such diplomatic efforts and consultations succeed

15 (i) in curtailing the conduct of the government or

16 person engaged in the sanctioned conduct, or (ii) in

17 obtaining enforcement action in accordance with

18 subparagraph (B), the President shall not be re19 quired to apply or maintain sanctions under this sec20 tion.

21 ‘‘(3) The President should seek multilateral

22 support for sanctions against activity covered by this

23 section. If multilateral sanctions are achieved that

24 the President determines will be more effective than

25 unilateral sanctions in furthering the national secu-
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1 rity or nonproliferation objectives of the United

2 States, the President shall not be required to exer3 cise the authority in this section in a manner incon4 sistent with such multilateral sanctions.

5 ‘‘(e) EXCEPTIONS.—The President shall not be re6 quired to apply or maintain sanctions under this section—

7 ‘‘(1) in the case of procurement of defense arti8 cles or defense services—

9 ‘‘(A) under existing contracts or sub10 contracts, including the exercise of options for

11 production quantities to satisfy United States

12 operational military requirements;

13 ‘‘(B) if the President determines that the

14 person to which the sanctions would otherwise

15 be applied is a sole source supplier of the de16 fense articles or services, that the defense arti17 cles or services are essential, and that alter18 native sources are not readily or reasonably

19 available; or

20 ‘‘(C) if the President determines that such

21 articles or services are essential to the national

22 security under defense coproduction agree23 ments;

24 ‘‘(2) to the import of—
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1 ‘‘(A) products or services provided under

2 contracts entered into before the date on which

3 the President publishes notice of intention to

4 impose sanctions; or

5 ‘‘(B)(i) spare parts;

6 ‘‘(ii) component parts, but not finished

7 products, essential to United States products or

8 production;

9 ‘‘(iii) information and technology essential

10 to United States products or production;

11 ‘‘(iv) routine servicing and maintenance of

12 products, to the extent that alternative sources

13 are not readily or reasonably available;

14 ‘‘(3) to medical or other humanitarian items;

15 ‘‘(4) to any transaction subject to the reporting

16 requirements of title V of the National Security Act

17 of 1947; or

18 ‘‘(5) when the President determines, categori19 cally or on a case-by-case basis, that the application

20 of sanctions to bar performance of a contract or

21 agreement entered into before the date of the impo22 sition of sanctions is not necessary to achieve the

23 national security or nonproliferation objectives of the

24 United States and would be contrary to the national

25 interest.
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1 ‘‘(f) TERMINATION OF SANCTIONS FOR USING CHEM2 ICAL OR BIOLOGICAL WEAPONS.—During the minimum 2

3 years period of the mandatory sanctions imposed pursuant

4 to a determination under subsection (a)(2), such sanctions

5 may be removed if the President determines and so cer6 tifies to the Congress that—

7 ‘‘(1) the government of that country has pro8 vided reliable assurances that it will not use chemi9 cal or biological weapons in violation of international

10 law and will not use lethal chemical or biological

11 weapons against its own nationals;

12 ‘‘(2) that government is not making prepara13 tions to use chemical or biological weapons in viola14 tion of international law or to use lethal chemical or

15 biological weapons against its own nationals;

16 ‘‘(3) that government is willing to allow on-site

17 inspections by United Nations observers or other

18 internationally-recognized, impartial observers to

19 verify that it is not making preparations to use

20 chemical or biological weapons in violation of inter21 national law or to use lethal chemical or biological

22 weapons against its own nationals, or other reliable

23 means exist to verify that it is not making such

24 preparations; and
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1 ‘‘(4) that government is making restitution to

2 those affected by any use of chemical or biological

3 weapons in violation of international law or by any

4 use of lethal chemical or biological weapons against

5 its own nationals.

6 ‘‘(g) WAIVER.—

7 ‘‘(1) CRITERION FOR WAIVER.—The President

8 may waive or partially waive the application of any

9 sanction imposed on any entity pursuant to this sec10 tion, if the President determines and certifies to

11 Congress that such waiver is important to the na12 tional interests of the United States.

13 ‘‘(2) NOTIFICATION OF AND REPORT TO CON14 GRESS.—If the President decides to exercise the

15 waiver authority provided in paragraph (1), the

16 President shall so notify the Congress not less than

17 20 days before the waiver takes effect. Such notifica18 tion shall include a report stating the reasons for ex19 ercise of the waiver authority.

20 ‘‘(h) REGULATORY IMPLEMENTATION OF SANC21 TIONS.—For items subject to the jurisdiction of the Sec22 retary of Commerce under the Export Administration Act,

23 sanctions shall be implemented in regulations issued by

24 the Secretary and shall specify the scope of products and

25 entities. For items subject to the jurisdiction of the Sec-
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1 retary of State under this Act, sanctions shall be imple2 mented in regulations issued by the Secretary of State and

3 shall specify the scope of products and entities.’’.

4 SEC. 13. ANNUAL REPORT.

5 (a) CONTENTS.—Not later than March 1 of each

6 year, the Secretary shall submit to the Congress a report

7 on the administration of this Act during the preceding cal8 endar year. All agencies shall cooperate fully with the Sec9 retary in providing information for such report. Such re10 port shall include detailed information on—

11 (1) the implementation of the policies set forth

12 in section 3, including delegations of authority by

13 the President as provided in section 4(e), consulta14 tions with the technical advisory committees estab15 lished pursuant to section 4(g), and any changes in

16 the exercise of the authorities contained in sections

17 5(a), 6(a), and 7(a);

18 (2) adjustments to multilateral export controls;

19 activities involving the license free zones authorized

20 by section 5(f)(4), and determinations under section

21 5(1), the criteria used to make such determinations,

22 the removal of any export controls under such sec23 tion, and any evidence demonstrating a need to

24 maintain export controls notwithstanding foreign

25 availability;
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1 (3) the effectiveness of unilateral export con2 trols imposed under section 5, and any adjustments

3 thereto; and embargoes imposed, maintained, or re4 moved in accordance with section 5, including de5 scriptions of each embargo and the rationale for im6 posing, maintaining, or removing such embargoes;

7 (4) short supply controls and monitoring in ac8 cordance with section 6;

9 (5) organizational and procedural changes un10 dertaken in furtherance of the policies set forth in

11 this Act, including changes to increase the efficiency

12 of the export licensing process and to fulfill the re13 quirements of section 8, including an accounting of

14 appeals received, and actions taken pursuant thereto

15 under section 8(h);

16 (6) violations under section 9, enforcement ac17 tivities under section 10, and any reviews under18 taken in furtherance of the policies of this Act;

19 (7) the issuance of regulations under the au20 thority of this Act;

21 (8) the results, in as much detail as may be in22 cluded consistent with multilateral arrangements

23 and the need to maintain the confidentiality of pro24 prietary information and classified information, of

25 the reviews of the Commerce Control List, and any
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1 revisions to the Commerce Control List resulting

2 from such reviews, required by section 11; and

3 (9) the imposition or removal of sanctions

4 against certain entities and foreign countries in ac5 cordance with section 12.

6 (b) REPORT ON CERTAIN EXPORT CONTROLS.—To

7 the extent that the President determines that the policies

8 set forth in section 3 require the control of the export of

9 items other than those subject to multilateral controls, or

10 require more stringent controls than the multilateral re11 gimes, the President shall include in each annual report

12 the reasons for the need to impose, or to continue to im13 pose, such controls and the estimated domestic economic

14 impact on the various industries affected by such controls.

15 SEC. 14. DEFINITIONS.

16 As used in this Act:

17 (1) AFFILIATES.—The term ‘‘affiliates’’ in18 cludes both governmental entities and commercial

19 entities that are controlled in fact by target coun20 tries.

21 (2) AUSTRALIA GROUP (‘‘AG’’).—The term

22 ‘‘Australia Group’’ or ‘‘AG’’ means the multilateral

23 arrangement in which the United States participates

24 that seeks to prevent the proliferation of chemical

25 and biological weapons.
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1 (3) BIOLOGICAL WEAPONS CONVENTION.—The

2 term ‘‘Biological Weapons Convention’’ refers to the

3 ‘‘Convention on the Prohibition of the Development,

4 Production and Stockpiling of Bacteriological (Bio5 logical) and Toxin Weapons and on Their Destruc6 tion of 1972’’.

7 (4) CHEMICAL WEAPONS CONVENTION.—The

8 term ‘‘Chemical Weapons Convention’’ refers to the

9 Convention on the Prohibition of the Development,

10 Production, Stockpiling and Use of Chemical Weap11 ons and on Their Destruction of 1992.

12 (5) COMMODITY.—The term ‘‘commodity’’

13 means any article, natural or manmade substance,

14 material, supply or manufactured product, including

15 inspection of test equipment, and excluding technical

16 data.

17 (6) COORDINATING COMMITTEE (‘‘COCOM’’).—

18 The term ‘‘Coordinating Committee’’ or ‘‘COCOM’’

19 means the multilateral organization in which the

20 United States participates that cooperates in re21 stricting transfers of strategic items to certain coun22 tries.

23 (7) EXPORT.—The term ‘‘export’’ means—

24 (A) an actual shipment, transfer, or trans25 mission of items out of the United States;
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1 (B) a transfer to any person of items ei2 ther within the United States or outside of the

3 United States or to an end user, end use, or

4 destination with the knowledge or intent that

5 the items will be shipped, transferred, or trans6 mitted outside the United States; or

7 (C) unless otherwise clear from the con8 text, the term ‘‘export’’ includes the term ‘‘reex9 port’’:

10 Provided, That the Secretary may further define the term

11 by regulation to include, among other concepts, that a

12 transfer of items in the United States to an embassy or

13 affiliate of a country is an export to the country, that dis14 closure of technology to a foreign national is a deemed

15 export to his or her home country, and that transfer of

16 effective control from one country to another over a sat17 ellite above the earth is an export from one country to

18 another.

19 (8) FACILITATING THE ACTIVITY.—The term

20 ‘‘facilitating the activity’’ includes but is not limited

21 to, acting as a freight forwarder, shipper, designated

22 export or import agent, consignee, purchasing agent,

23 marketing agent, manufacturer, assembler, designer,

24 financier, or end user with respect to the services or

25 items to be exported, transferred, or provided.
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1 (9) FINANCIAL TRANSACTIONS.—The term ‘‘fi2 nancial transactions’’ means any transactions involv3 ing the exchange, transfer, crediting, debiting, de4 posit, withdrawal, or payment of currency, securities,

5 debt, credit, checks, other monetary instruments,

6 precious metals or minerals, or other items of value

7 whether physically or by electronic means. The term

8 is intended to be interpreted broadly to include such

9 transactions as the opening or drawing down of let10 ters of credit, the extension of a loan, the receipt of

11 payment, or the use of credit cards.

12 (10) ITEM.—The term ‘‘item’’ means any com13 modity, technology, or software.

14 (11) MISSILE.—The term ‘‘missile’’ means any

15 missile system or component listed in category I of

16 the MTCR Annex, and any other unmanned delivery

17 system or component of similar capability, as well as

18 the specially designed production facilities for these

19 systems.

20 (12) MISSILE TECHNOLOGY CONTROL REGIME

21 (‘‘MTCR’’).—The term ‘‘Missile Technology Control

22 Regime’’ or ‘‘MTCR’’ means the policy statement

23 and Guidelines between the United States, the

24 United Kingdom, the Federal Republic of Germany,

25 France, Italy, Canada, and Japan, announced on
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1 April 16, 1987, to restrict sensitive missile-related

2 transfers based on the MTCR Annex, and any

3 amendments to the Annex or Guidelines.

4 (A) MTCR ADHERENT.—The term

5 ‘‘MTCR adherent’’ means a country that is a

6 member of the MTCR or that, pursuant to an

7 international understanding to which the Unit8 ed States is a party, controls MTCR equipment

9 or technology in accordance with the criteria

10 and standards set forth in the MTCR.

11 (B) MTCR ANNEX.—The term ‘‘MTCR

12 Annex’’ means the Equipment and Technology

13 Annex of the MTCR and any amendments

14 thereto.

15 (13) MULTILATERAL CONTROL.—The term

16 ‘‘multilateral control’’ means a licensing requirement

17 exercised by the United States and at least one

18 other nation.

19 (14) NUCLEAR SUPPLIERS’ GROUP (‘‘NSG’’).—

20 The term ‘‘Nuclear Suppliers’ Group’’ or ‘‘NSG’’

21 means the multilateral arrangement in which the

22 United States participates whose purpose is to re23 strict the transfers of items with relevance to the

24 nuclear fuel cycle and/or nuclear explosive applica25 tions.
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1 (15) PERSON.—The term ‘‘person’’ includes—

2 (A) the single and plural of any individual,

3 corporation, partnership, business association,

4 society, trust, organization, or other group cre5 ated or organized under the laws of a country;

6 or

7 (B) any government, governmental body,

8 corporation, trust, agency, department, division,

9 or group operating as a business enterprise.

10 (16) PROTOCOL ON BIOLOGICAL WARFARE.—

11 The term ‘‘Protocol on Biological Warfare’’ refers to

12 the Protocol for the Prohibition of the Use in War

13 of Asphyxiating, Poisonous or Other Gases, and of

14 Bacteriological Methods of Warfare of 1925.

15 (17) REGIME, MULTILATERAL EXPORT CON16 TROL REGIME, MULTILATERAL REGIME.—The terms

17 ‘‘regime’’ and ‘‘multilateral export control regime’’

18 and ‘‘multilateral regime’’ each means an arrange19 ment of two or more countries to which the United

20 States is a party or which the United States would

21 seek to create or join and brought together for the

22 purpose of curtailing access to controlled items by

23 target countries by means of cooperative export con24 trols.
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1 (18) REEXPORT.—The term ‘‘reexport’’ means

2 the shipment, transfer, transhipment, or diversion of

3 items from one foreign country to another.

4 (19) SECRETARY.—The term ‘‘Secretary’’

5 means the Secretary of Commerce.

6 (20) TARGET COUNTRY.—The term ‘‘target

7 country’’ means a country for which it is the objec8 tive under this Act to deny or attempt to deny ac9 cess to controlled items or a country from which the

10 United States distances itself by means of a unilat11 eral export control adopted under this Act.

12 (21) TECHOLOGY.—The term ‘‘technology’’

13 means specific information required for the ‘‘devel14 opment’’, ‘‘production’’, or ‘‘use’’ of a product. The

15 information takes the form of ‘‘technical data’’ or

16 ‘‘technical assistance’’. Controlled ‘‘technology’’ is

17 defined in the General Technology Note and in the

18 Commerce Control List.

19 (22) UNILATERAL CONTROL.—The term ‘‘uni20 lateral control’’ means a license requirement that is

21 not multilaterally agreed to by two or more coun22 tries.

23 (23) UNITED STATES.—The term ‘‘United

24 States’’ means the States of the United States, the

25 District of Columbia, and any commonwealth, terri-
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1 tory, dependency, or possession of the United States,

2 and includes the Outer Continental Shelf, as defined

3 in Section 2(a) of the Outer Continental Shelf

4 Lands Act (43 U.S.C. 1331(a)).

5 (24) UNITED STATES PERSON.—The term

6 ‘‘United States person’’ means any United States

7 citizen, resident, national (other than an individual

8 resident outside the United States and employed by

9 other than a United States person), or person within

10 the United States, any domestic concern (including

11 any permanent domestic establishment of any for12 eign concern) and any foreign subsidiary or affiliate

13 (including any permanent foreign establishment) of

14 any domestic concern which is controlled in fact by

15 such domestic concern, as determined under regula16 tions of the President.

17 (25) WEAPONS OF MASS DESTRUCTION.—The

18 term ‘‘weapons of mass destruction’’ means any

19 chemical or biological weapons or nuclear explosive

20 devices.

21 SEC. 15. EFFECTS ON OTHER ACTS.

22 (a) COMMODITY JURISDICTION.—

23 (1) COORDINATION OF CONTROLS.—The au24 thority granted under this Act and under section 38

25 of the Arms Export Control Act (22 U.S.C. 2778)
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1 shall be exercised by each licensing authority in such

2 a manner as to achieve effective coordination be3 tween the dual use and munitions licensing systems

4 and share information regarding the trustworthiness

5 of parties.

6 (2) ELIMINATION OF OVERLAPPING CON7 TROLS.—No item may be included on both the Com8 merce Control List and the United States Munitions

9 List after the effective date of this Act.

10 (3) COMMODITY JURISDICTION DISPUTE RESO11 LUTION.—Under procedures to be established by the

12 President, disputes regarding conflicting claims of

13 jurisdiction between the Commerce Control List and

14 the United States Munitions List shall be resolved in

15 a timely fashion by the Department of State, in con16 sultation with other agencies. Consultations shall be

17 carried out through committees chaired by rep18 resentatives of the Department of State at the As19 sistant Secretary or Under Secretary level. The pro20 cedures of the committees shall allow the initiation

21 of matters by either the States Department or other

22 agencies including in response to requests to the De23 partments of State and Commerce. Consultation

24 procedures within the committees shall provide for

25 interagency meetings to permit the free exchange of
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1 views regarding jurisdictional issues. Disputes that

2 cannot be resolved may be referred to the President

3 by the Secretary of State, the Secretary of Defense,

4 or the Secretary of Commerce.

5 (b) IN GENERAL.—Except as otherwise provided in

6 this Act, nothing contained in this Act shall be construed

7 to modify, repeal, supersede, or otherwise affect the provi8 sions of any other laws authorizing control over exports

9 of any commodity.

10 (c) AMENDMENTS TO THE INTERNATIONAL EMER11 GENCY ECONOMIC POWERS ACT.—

12 (1) The International Emergency Economic

13 Powers Act (50 U.S.C. 1707) is amended by adding

14 after the last section the following section 208:

15 ‘‘SEC. 208. CONFIDENTIALITY OF INFORMATION.

16 ‘‘(a) EXEMPTIONS FROM DISCLOSURE.—Information

17 obtained under this Act may be withheld only to the extent

18 permitted by statute, except that information submitted,

19 obtained or considered in connection with an application

20 for an export license or other export authorization under

21 this Act, including the export license or other export au22 thorization itself, classification requests, information ob23 tained during the course of a foreign availability assess24 ment, information or evidence obtained in the course of

25 any investigation, and information obtained or furnished
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1 in connection with multilateral agreements, treaties, or ob2 ligations under this Act shall not be subject to disclosure

3 under section 552 of title 5, United States Code, and shall

4 be withheld from public disclosure unless the release of

5 such information is determined by the Secretary to be in

6 the national interest.

7 ‘‘(b) INFORMATION TO CONGRESS AND GAO.—

8 ‘‘(1) IN GENERAL.—Nothing in this Act shall

9 be construed as authorizing the withholding of infor10 mation from the Congress or from the General Ac11 counting Office.

12 ‘‘(2) AVAILABILITY TO THE CONGRESS.—

13 ‘‘(A) IN GENERAL.—All information ob14 tained at any time under this Act regarding the

15 control of exports, including any report or li16 cense application required under this Act, shall

17 upon request be made available to the Commit18 tee on Foreign Affairs and the Subcommittee

19 on International Economic Policy and Trade of

20 the House of Representatives and the Commit21 tee on Banking, Housing, and Urban Affairs

22 and the Subcommittee on International Finance

23 and Monetary Policy of the Senate. Each of the

24 above designated committees and subcommit25 tees may provide other members of Congress in-
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1 formation obtained under this authority pro2 vided that such information may not be further

3 disclosed except upon a finding made under the

4 following subparagraph.

5 ‘‘(B) PROHIBITION ON FURTHER DISCLO6 SURE.—No such committee or subcommittee, or

7 member thereof, and no other committee, sub8 committee, or member of Congress shall dis9 close any information obtained under this Act

10 or previous Acts regarding the control of ex11 ports which is submitted pursuant to this sub12 section unless one of the above described full

13 committees determines that the withholding of

14 that information is contrary to the national

15 interest.

16 ‘‘(3) AVAILABILITY TO THE GAO.—

17 ‘‘(A) IN GENERAL.—Notwithstanding para18 graph (1), information referred to in subpara19 graph (B) shall, consistent with the protection

20 of intelligence, counterintelligence, and law en21 forcement sources, methods, and activities, as

22 determined by the agency that originally ob23 tained the information, and consistent with the

24 provisions of section 313 of the Budget and Ac25 counting Act of 1921, be made available only by
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1 the Agency, upon request, to the Comptroller

2 General of the United States or to any officer

3 or employee of the General Accounting Office

4 authorized by the Controller General to have

5 access to such information.

6 ‘‘(B) PROHIBITION ON FURTHER DISCLO7 SURES.—No officer or employee of the General

8 Accounting Office shall disclose, except to the

9 Congress in accordance with this paragraph,

10 any such information which is submitted on a

11 confidential basis and from which any individ12 ual can be identified.

13 ‘‘(c) PENALTIES FOR DISCLOSURE OF CONFIDEN14 TIAL INFORMATION.—Any officer or employee of the Unit15 ed States, or any department or agency thereof, who pub16 lishes, divulges, discloses, or makes known in any manner

17 or to any extent not authorized by law any information

18 coming to him in the course of his or her employment or

19 official duties or by reason of any examination or inves20 tigation made by, report or record made to or filed with,

21 such department or agency, or officer or employee thereof,

22 which information is exempt from disclosure under this

23 subsection, shall be fined not more than $1,000, or impris24 oned not more than one year, or both, and may be removed
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1 from office or employment and shall be subject to a civil

2 penalty of not more than $1,000.’’.

3 (2) Section 206 of the International Emergency

4 Economic Powers Act (50 U.S.C. 1705) is amended

5 by inserting ‘‘or attempts to violate,’’ after ‘‘vio6 lates’’ in subsection (a); and by inserting ‘‘or will7 fully attempts to violate,’’ after ‘‘violates’’ in sub8 section (b).

9 (d) CIVIL AIRCRAFT EQUIPMENT.—Except as nec10 essary to comply with international obligations under the

11 International Emergency Economic Powers Act (Public

12 Law 95–223) (50 U.S.C. 1701 et seq.) or the United Na13 tions Participation Act of 1945, as amended (Public Law

14 79–264 (22 U.S.C. 287 et seq.), notwithstanding any

15 other provision of law, any product (1) which is standard

16 equipment, certified by the Federal Aviation Administra17 tion, in civil aircraft and is an integral part of such air18 craft, and (2) which is to be exported to a country other

19 than a controlled country, shall be subject to export con20 trols exclusively under this Act. Any such product shall

21 not be subject to controls under section 38(b)(2) of the

22 Arms Export Control Act (22 U.S.C. 2778(b)(2)).

23 (e) NUCLEAR NONPROLIFERATION CONTROLS.—

24 (1) Nothing in section 5 of this Act shall be

25 construed to supersede the procedures published by
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1 the President pursuant to section 309(c) of the Nu2 clear Non-Proliferation Act of 1978 (42 U.S.C.

3 2139a(c)).

4 (2) The procedures published by the President

5 pursuant to section 309(c) of the Nuclear Non-Pro6 liferation act of 1978 (42 U.S.C. 2139a(c)) shall be

7 superseded to the extent they are inconsistent with

8 the provisions of section 8 of this Act.

9 (f) CONFORMING AMENDMENT TO THE ARMS EX10 PORT CONTROL ACT.—

11 (1) Section 73 of the Arms Export Control Act

12 (Public Law 90–626), as amended by section 1703

13 of the National Defense Authorization Act of 1991

14 (Public Law 101–510) (U.S.C. 2797B), is hereby re15 pealed.

16 (2) Section 81 of the Arms Export Control Act

17 (Public Law 90–626), as amended by section 305 of

18 the Miscellaneous Foreign Affairs Act of 1991 (Pub19 lic Law 102–182) (22 U.S.C. 2798), is hereby re20 pealed.

21 (3) Sections 306, 307, 308, and 309(b) of the

22 Chemical and Biological Weapons Control and War23 fare Elimination Act of 1991 (Public Law 102–182)

24 (22 U.S.C. 5604, 5605, and 5606) are hereby re25 pealed.
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1 (4) Section 74 of the Arms Export Control Act

2 (Public Law 90–626), as amended by section 1703

3 of the National Defense Authorization Act for Fiscal

4 Year 1991 (Public Law 101–510) (22 U.S.C. 2794c)

5 is amended by redesignating ‘‘Section 74’’ as ‘‘Sec6 tion 73’’. It is further amended to read as follows:

7 ‘‘SEC. 73. DEFINITIONS.

8 ‘‘For purposes of this chapter—

9 ‘‘(1) AUSTRALIA GROUP (‘AG’).—The term ‘Aus10 tralia Group’ or ‘AG’ means the multilateral ar11 rangement in which the United States participates

12 that seeks to prevent the proliferation of chemical

13 and biological weapons;

14 ‘‘(2) BIOLOGICAL WEAPONS CONVENTION.—The

15 term ‘Biological Weapons Convention’ refers to the

16 Convention on the Prohibition of the Development,

17 Production and Stockpiling of Bacteriological (Bio18 logical) and Toxin Weapons and on Their Destruc19 tion of 1972’’;

20 ‘‘(3) CHEMICAL WEAPONS CONVENTION.—The

21 term ‘Chemical Weapons Convention’ refers to the

22 Convention on the Prohibition of the Development,

23 Production, Stockpiling and Use of Chemical Weap24 ons and on Their Destruction of 1992;
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1 ‘‘(4) FACILITATING THE ACTIVITY.—The term

2 ‘facilitating the activity’ includes but is not limited

3 to, acting as a freight forwarder, shipper, designated

4 export or import agent, consignee, purchasing agent,

5 marketing agent, manufacturer, assembler, designer,

6 financier, or end use with respect to the services or

7 items to be exported, transferred, or provided;

8 ‘‘(5) FINANCIAL TRANSACTIONS.—The term ‘fi9 nancial transactions’ means any transactions involv10 ing the exchange, transfer, crediting, debiting, de11 posit, withdrawal, or payment of currency, securities,

12 debt, credit, checks, other monetary instruments,

13 precious metals or minerals, or other items of value

14 whether physically or by electronic means. The term

15 is intended to be interpreted broadly to include such

16 transactions as the opening or drawing down of let17 ters of credit, the extension of a loan, the receipt of

18 payment, or the use of credit cards;

19 ‘‘(6) ITEM.—The term ‘item’ means any com20 modity, technology, or software;

21 ‘‘(7) MISSILE.—The term ‘missile’ means any

22 missile system or component listed in category I of

23 the MTCR Annex, and any other unmanned delivery

24 system or component of similar capability, as well as
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1 the specially designed production facilities for these

2 systems;

3 ‘‘(8) MISSILE TECHNOLOGY CONTROL REGIME

4 (‘MTCR’).—The term ‘Missile Technology Control Re5 gime’ or ‘MTCR’ means the policy statement and

6 guidelines between the United States, the

7 United Kingdom, the Federal Republic of Germany,

8 France, Italy, Canada, and Japan, announced on

9 April 16, 1987, to restrict sensitive missile-related

10 transfers based on the MTCR Annex, and any

11 amendments to the Annex or Regime;

12 ‘‘(A) MTCR ADHERENT.—The term

13 ‘MTCR adherent’ means a country that is a

14 member of the MTCR or that, pursuant to an

15 international understanding to which the Unit16 ed States is a party, controls MTCR equipment

17 or technology in accordance with the criteria

18 and standards set forth in the MTCR;

19 ‘‘(B) MTCR ANNEX.—The term ‘MTCR

20 Annex’ means the Equipment and Technology

21 Annex of the MTCR and any amendments

22 thereto;

23 ‘‘(9) NUCLEAR SUPPLIERS’ GROUP (‘NSG’).—

24 The term ‘Nuclear Suppliers’ Group’ or ‘NSG’

25 means the multilateral arrangement in which the
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1 United States participates whose purpose is to re2 strict transfers of items with sensitive nuclear appli3 cations;

4 ‘‘(10) PERSON.—The term ‘person’ includes—

5 ‘‘(A) the single and plural of any individ6 ual, corporation, partnership, business associa7 tion, society, trust, organization, or other group

8 created or organized under the laws of a coun9 try; or

10 ‘‘(B) any government, governmental body,

11 corporation, trust, agency, department, division,

12 or group operating as a business enterprise;

13 ‘‘(11) PROTOCOL ON BIOLOGICAL WARFARE.—

14 The term ‘Protocol on Biological Warfare’ refers to

15 the Protocol for the Prohibition of the Use in War

16 of Asphyxiating, Poisonous or Other Gases, and of

17 Bacteriological Methods of Warfare of 1925; and

18 ‘‘(12) WEAPONS OF MASS DESTRUCTION.—The

19 term ‘weapons of mass destruction’ means any

20 chemical or biological weapons or nuclear explosive

21 devices.’’.

22 (5) Section 323 of the Foreign Relations Au23 thorization Act for Fiscal Years 1992–93 (Public

24 Law 102–138) is hereby repealed.
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1 (g) EFFECT ON SECTION 38(e) OF THE ARMS EX2 PORT CONTROL ACT.—This Act modifies provisions of the

3 Export Administration Act of 1979, as amended, which

4 are incorporated by reference in section 38(e) of the Arms

5 Export Control Act (22 U.S.C. 2778(e)). The changes

6 made to such provisions shall have no effect on the admin7 istration and enforcement of section 38(e) of the Arms Ex8 port Control Act. The relevant provisions of the Export

9 Administration Act of 1979, as amended, shall continue

10 to have full force and effect for purposes of that Act.

11 (Add conforming amendments for the approximately

12 60 statutory references to the EAA in other

13 Federal statutes.)

14 SEC. 16. AUTHORIZATION OF APPROPRIATIONS.

15 AUTHORIZATION.—There are authorized to be appro16 priated to the Department of Commerce to carry out the

17 purposes of this Act—

18 (1) $43,372,000 for fiscal year 1995, and such

19 amounts as may be necessary for fiscal year 1996;

20 and

21 (2) such additional amounts for each of the fis22 cal years 1995 and 1996 as may be necessary for in23 creases in salary, pay, retirement, other employee

24 benefits authorized by law, and other non-discre25 tionary costs.
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1 SEC. 17. EFFECTIVE DATE.

2 This Act shall take effect upon the expiration of the

3 Export Administration Act of 1979.

4 SEC. 18. SAVINGS PROVISION.

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

6 orders, determinations, licenses, sanctions, or other forms

7 of administrative action which have been made, issued,

8 conducted, or allowed to become effective under the Ex9 port Control Act of 1949, the Export Administration Act

10 of 1969, the Export Administration Act of 1979, or the

11 Arms Export Control Act and which are in effect at the

12 time this Act or the Arms Export Control Act takes effect,

13 shall continue in effect according to their terms until

14 modified, superseded, set aside, or revoked under this Act

15 or the Arms Export Control Act.

16 (b) REPEAL.—Title XVII of the National Defense

17 Authorization Act for Fiscal Year 1991 (Public Law 101–

18 510) and sections 301–308 and 309(b) of the Chemical

19 and Biological Weapons Control and Warfare Elimination

20 Act of 1991 (Public Law 102–182) and amendments to

21 these Acts are hereby repealed.

22 (c) ADMINISTRATIVE PROCEEDINGS.—This Act shall

23 not apply to any administrative proceedings commenced

24 or any application for a license made, under the Export

25 Administration Act of 1979, which is pending at the time

26 this Act takes effect.
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