```

[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1902 Introduced in Senate (IS)]

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.

    Be it enacted by the Senate and House of Representatives 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            22
            business.
        (g) Technical advisory committees......................      22
        (h) Fees...............................................      25
Sec. 5. Nonproliferation, national security, and foreign policy      25
    control authorities.
        (a) Authority..........................................      25
        (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                37
                            compliance.
                        (C) Public understanding...............      38
                        (D) Effective implementation procedures      38
                        (E) Enhanced cooperation among regime        38
                            members.
                        (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          39
            regimes.
        (h) Seeking multilateral support for unilateral              40
            controls.
        (i) Regulation indicating nature of unilateral controls      41
        (j) Implementation.....................................      41
                (1) Nonproliferation...........................      41
                        (A) Countries participating in certain       41
                            agreements.
                        (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          52
                    controls.
                (6) Procedures.................................      53
                        (A) Notice of assessments..............      53
                        (B) Procedures for making                    53
                            determinations.
                        (C) Negotiations to eliminate foreign        56
                            availability.
                (7) Sharing of information.....................      57
                (8) Availability defined.......................      58
                (9) Congressional notification and reporting         58
                    requirements.
        (l) Unilateral controls prohibited.....................      59
        (m) International obligations..........................      60
        (n) Information sharing................................      61
        (o) Denied parties, sanctioned parties, specially            61
            designated nationals, and other parties presenting 
            unacceptable risks of diversion.
                (1) Denied parties, sanctioned parties,              61
                    specially designated nationals.
                (2) Other parties..............................      61
        (p) Freedom of Information Act exemption...............      61
 Sec. 6. Short supply controls.................................      62
        (a) Authority..........................................      62
        (b) Monitoring.........................................      63
        (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            76
            facilities.
 Sec. 7. Foreign boycotts......................................      76
        (a) Prohibitions and exceptions........................      76
        (b) Regulations........................................      82
        (c) Preemption.........................................      84
 Sec. 8. Procedures for processing export license applications;      84
    other inquiries.
        (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            93
                    assurances.
                (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               98
            sanctions.
        (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        122
                    information.
        (d) Public participation...............................     123
        (e) Control list development and review................     123
        (f) Authority for seminar and publications fund........     126
        (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     129
                    components.
                (2) Reexports of foreign-made items                 130
                    incorporating United States items.
        (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,      135
            review and use.
Sec. 12A. Sanctions for proliferation activity and the use of       137
    chemical and biological weapons and missiles.
        (a) Determinations.....................................     137
                (1) Determination of activity supporting the        137
                    proliferation of chemical and biological 
                    weapons and missiles.
                (2) Determination of use of chemical or             138
                    biological weapons.
        (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      141
                    biological weapons.
                        (A) Foreign assistance.................     141
                        (B) Arms sales.........................     141
                        (C) Arms sales financing...............     142
                        (D) Denial of United States Government      142
                            credit or other financial 
                            assistance.
                        (E) Exports of national security-           142
                            sensitive items.
                (4) Additional sanctions if certain conditions      142
                    not met.
                (5) Additional sanctions for use of chemical or     143
                    biological weapons.
                        (A) Multilateral Development Bank           144
                            assistance.
                        (B) Bank loans.........................     144
                        (C) Further export restrictions........     144
                        (D) Import restrictions................     144
                        (E) Diplomatic relations...............     145
                        (F) Presidential action regarding           145
                            aviation.
        (d) Deferral and limitation............................     147
        (e) Exceptions.........................................     149
        (f) Termination of sanctions for using chemical or          151
            biological weapons.
        (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       153
    chemical and biological weapons.
        ``Sec. 72. Sanctions against certain foreign persons        153
            and countries.
                ``(a) Determinations...........................     153
                        ``(1) Determination of activity             153
                            supporting the proliferation of 
                            chemical and biological weapons and 
                            missiles.
                        ``(2) Determination of use of chemical      155
                            or biological weapons.
                ``(b) Persons against which sanctions are to be     155
                    imposed.
                ``(c) Sanctions................................     155
                        ``(1) Mandatory sanctions..............     156
                        ``(2) Discretionary sanctions..........     156
                        ``(3) Mandatory sanctions for use of        157
                            chemical or biological weapons.
                            ``(A) Foreign assistance...........     157
                            ``(B) Arms sales...................     157
                            ``(C) Arms sales financing.........     158
                            ``(D) Denial of United States           158
                            Government credit or other 
                            financial assistance.
                            ``(E) Exports of national security-     158
                            sensitive items.
                        ``(4) Additional sanctions if certain       158
                            conditions not met.
                        ``(5) Additional sanctions for useof        159
                            chemical or biological weapons.
                            ``(A) Multilateral Development Bank     160
                            assistance.
                            ``(B) Bank loans...................     160
                            ``(C) Further export restrictions..     160
                            ``(D) Import restrictions..........     160
                            ``(E) Diplomatic relations.........     161
                            ``(F) Presidential action regarding     161
                            aviation.
                ``(d) Deferral and limitation..................     163
                ``(e) Exceptions...............................     165
                ``(f) Termination of sanctions for using            167
                    chemical or biological weapons.
                ``(g) Waiver...................................     168
                        ``(1) Criterion for waiver.............     168
                        ``(2) Notification of and report to         168
                            Congress.
                ``(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      180
            Powers Act.
        (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      190
            Act.
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

SECTION 1. TITLE.

    This Act may be cited as the ``Export Administration Act of 1994'' 
and shall hereafter be referred to as the Act.

SEC. 2. FINDINGS.

    The Congress makes the following findings:
            (1) Export controls shall be a part of a comprehensive 
        response to national security threats. United States exports 
        should be restricted only for significant national security, 
        nonproliferation, and foreign policy reasons.
            (2) The proliferation of weapons of mass destruction, their 
        delivery systems, and other significant military capabilities 
        has become one of the most serious threats to world peace and 
        to our national security.
            (3) Since growing exports are essential to future economic 
        growth, restrictions on exports must be evaluated in terms of 
        their effects on the United States economy. Economic interests 
        must play a key role in decisions on export controls and the 
        rigor of economic analysis and data available in the decision-
        making process must be enhanced.
            (4) Exports of certain commodities, technology, and 
        software may adversely affect the national security and foreign 
        policy of the United States, by making a significant 
        contribution to the military potential of individual countries 
        or by disseminating the capability to design, develop, test, 
        produce, stockpile, or use weapons of mass destruction, missile 
        delivery systems, and other significant military capabilities. 
        The administration of export controls should emphasize the 
        control of exports that could make a significant contribution 
        to the military potential of any country which would be 
        detrimental to the national security and foreign policy of the 
        United States and the control of items that could disseminate 
        the capability to produce and use weapons of mass destruction, 
        missile delivery systems, and other significant military 
        capabilities.
            (5) The acquisition of sensitive commodities, technology, 
        and software by those countries and end users whose actions or 
        policies run counter to United States national security or 
        foreign policy interests may enhance the military-industrial 
        capabilities of those countries, particularly their ability to 
        design, develop, test, produce, stockpile, use, and deliver 
        nuclear, chemical, and biological weapons, missile delivery 
        systems, and other significant military capabilities. This 
        enhancement threatens the security of the United States, its 
        allies, and other friendly nations, and places additional 
        demands on the defense budget of the United States. 
        Availability to certain countries and end users of items that 
        contribute to military capabilities or the proliferation of 
        weapons of mass destruction is a fundamental concern of the 
        United States and should be eliminated through negotiations and 
        other appropriate means whenever possible.
            (6) The national security of the United States depends not 
        only on wise foreign policies and a strong defense, but also a 
        vibrant national economy. To be truly effective, export 
        controls should be applied uniformly by all suppliers.
            (7) The United States export control system must not be 
        overly restrictive or bureaucratic, or undermine the 
        competitive position of American industry. The export control 
        system must be efficient, responsive, transparent, and 
        effective.
            (8) Export controls should be focused on those items that 
        materially contribute to a country's or end user's military or 
        proliferation potential. The United States must pursue the 
        maximum effectiveness of multilateral export control regimes, 
        including comprehensive enforcement measures. The United States 
        recognizes the important of comprehensive enforcement measures 
        to maximize the effectiveness of multilateral controls. 
        Therefore, the United States must level the playing field for 
        United States trade and enhance the effectiveness of controls 
        by pursuing multilateral controls and harmonizing their 
        implementation.
            (9) Except in the event the United States is the sole 
        source of critical supplies, unilateral export controls may not 
        be truly effective in influencing the behavior of other 
        governments and impeding access by target countries to 
        controlled items. Unilateral controls may therefore impede 
        access to United States sources of supply without affecting the 
        ability of target countries to obtain controlled items 
        elsewhere. Unilateral controls may therefore permit foreign 
        competitors to serve markets the United States Government 
        denies to American firms and workers and impair the reliability 
        of United States suppliers in comparison with their foreign 
        competitors.
            (10) While the United States may at times have to act 
        unilaterally, we should strive to avoid unilateral action if it 
        damages United States commercial interests without effectively 
        promoting our nonproliferation and other national security and 
        foreign policy objectives. At the same time, the need to lead 
        the international community or overriding national security or 
        foreign policy interests may justify unilateral controls in 
        specific cases.
            (11) The multilateral export control system, which helped 
        contain military threats posed by the former Soviet Bloc 
        countries, should be replaced by an effective and efficient 
        multilateral export control program furthering vital interests 
        of the United States in the post-Cold War era.
            (12) International treaties, such as the Chemical Weapons 
        Convention, and international agreements and arrangements 
        intended to control, lessen or eliminate weapons of mass 
        destruction should be fully implemented by, inter alia, 
        imposing restrictions on imports and exports of designated 
        items, establishing, monitoring and transmitting reports on the 
        production, processing, consumption, export and import of 
        designated items, and complying with verification regimes 
        mandated by such treaties, agreements, and arrangements.
            (13) Restrictions that negatively affect the United States 
        industrial base may ultimately weaken United States military 
        capabilities and lead to dependencies on foreign sources for 
        key components. The availability of certain items in the United 
        States and from abroad may affect the welfare of the domestic 
        economy.
            (14) It is important that the administration of export 
        controls imposed for foreign policy purposes give special 
        emphasis to the need to control exports of items and substances 
        hazardous to the public health and the environment which are 
        banned or severely restricted for use in the United States, and 
        which, if exported, could affect the international reputation 
        of the United States as a responsible trading partner.

SEC. 3. POLICY STATEMENT.

    It is the policy of the United States:
            (1) To minimize uncertainties in export control policy and 
        to encourage trade with all countries with which the United 
        States has diplomatic or trading relations, except those 
        countries with which such trade has been determined by the 
        President to be against the national interest.
            (2) That the United States should not restrict export trade 
        by its citizens except when necessary for significant national 
        security, non-proliferation, foreign policy, or short supply 
        objectives and such restrictions are administered consistent 
        with basic standards of fairness, and are implemented only 
        after full consideration of the impact on the economy of the 
        United States and only to the extent necessary--
                    (A) to stem the proliferation of weapons of mass 
                destruction and the means to deliver them by--
                            (i) leading international efforts to 
                        control the proliferation of chemical and 
                        biological weapons, nuclear explosive devices, 
                        missile delivery systems, and other significant 
                        military capabilities;
                            (ii) controlling involvement and 
                        contributions by United States persons to 
                        foreign programs intended to design, develop, 
                        test, produce, stockpile, or use chemical and 
                        biological weapons, nuclear explosive devices, 
                        missile delivery systems, and other significant 
                        military capabilities and the means to design, 
                        develop, test, produce, stockpile, or use them; 
                        and
                            (iii) implementing international agreements 
                        and arrangements that provide for controls on 
                        imports and exports of designated items, 
                        reports on the production, processing, 
                        consumption, exports and imports of such items, 
                        and compliance with verification programs;
                    (B) to restrict the export of items that would make 
                a significant contribution to the military potential of 
                countries that would prove detrimental to the national 
                security and foreign policy of the United States;
                    (C) to restrict the export of items where necessary 
                to significantly further the foreign policy of the 
                United States or to fulfill its declared international 
                commitments; and
                    (D) to restrict the export of items where necessary 
                to protect the domestic economy from the excessive 
                drain of scarce materials or to secure the removal by 
                foreign countries of restrictions on access to supplies 
                where such restrictions have or may have a serious 
                inflationary impact, have caused or may cause a serious 
                domestic shortage, or have been imposed for purposes of 
                influencing the foreign policy of the United States.
            (3) To further increase the reliance of the United States 
        upon multilateral coordination of controls through effective 
        control regimes that maintain lists of controlled items that 
        are truly critical to the control objectives, strive to 
        increase membership to include all relevant countries, maintain 
        common criteria and procedures for licensing, and harmonize 
        member countries' licensing practices. It is the policy of the 
        United States that multilateral controls are the best means of 
        achieving the objectives of the United States.
            (4) To encourage all countries that produce items that are 
        controlled by multilateral regimes to adhere to the guidelines 
        and controls of the regimes and to join the regime if they meet 
        the relevant criteria for membership.
            (5) To make every effort to achieve effective multilateral 
        export controls in all cases where the United States imposes 
        export controls.
            (6) To avoid unilateral export controls and policies except 
        when dictated by overriding national interests, to continue to 
        work with other supplier nations to make export controls 
        multilateral and to harmonize their implementation, and to 
        avoid unilateral action if it damages United States commercial 
        interests without effectively promoting our nonproliferation 
        and other national security and foreign policy objectives. The 
        United States will therefore impose unilateral export controls 
        only when the following conditions are met:
                    (A) Diplomatic efforts have failed or clearly would 
                be unsuccessful in establishing a multilateral regime.
                    (B) The national security, nonproliferation, or 
                foreign policy objectives expected to be achieved by 
                the unilateral control justify any expected loss of 
                sales, jobs, and reliability on the part of United 
                States exporters.
            (7) To eliminate unilateral dual-use export controls and 
        policies unless their continuation in force is essential to 
        United States national security, nonproliferation, or foreign 
        policy interests.
            (8) To eliminate unnecessary and ineffective export 
        controls.
            (9) To make all licensing decisions in a timely manner so 
        undue delays in the licensing process will not cause a United 
        States firm to lose an export sale.
            (10) To ensure that control lists are periodically updated 
        to reflect the changing proliferation threat, advances in 
        technology, and a realistic appraisal of what is beyond the 
        reach of effective control.
            (11) To maintain a presumption of approval of applications 
        for authority to export dual-use goods to civil end uses and 
        end users under this Act, absent sound reasons for denial based 
        on national security, nonproliferation and foreign policy 
        grounds, based upon the commitment of the United States to an 
        open international trading system and the need to ensure 
        American competitiveness.
            (12) To use export controls to encourage other countries to 
        take immediate steps to prevent the use of their territories or 
        resources to aid, encourage or give sanctuary to those persons 
        directing, supporting or participating in acts of international 
        terrorism. To achieve this objective, the President shall make 
        reasonable and prompt efforts to secure the removal or 
        reduction of such assistance to international terrorists 
        through international cooperation and agreement before imposing 
        export controls.
            (13) To sustain vigorous scientific enterprise. To do so 
        involves sustaining the ability of scientists and other 
        scholars freely to communicate research findings, in accordance 
        with the applicable provisions of law, by means of publication, 
        teaching, conferences, and other forms of scholarly exchange.
            (14)(A) To oppose restrictive trade practices or boycotts 
        fostered or imposed by foreign countries against other 
        countries friendly to the United States or against any United 
        States person; and
            (B) To encourage and, in specified cases, require United 
        States persons engaged in the export of commodities, software, 
        technology and other information to refuse to take actions, 
        including furnishing information or entering into or 
        implementing agreements, which have the effect of furthering or 
        supporting the restrictive trade practices or boycotts fostered 
        or imposed by any foreign country against a country friendly to 
        the United States or against any United States person.
            (15) To ensure that United States economic interests play a 
        key role in decisions on export controls and to take immediate 
        action to increase the rigor of economic analysis and data 
        available in the decisionmaking process.
            (16) To streamline export licensing functions and thereby 
        better serve the exporting public by reducing and eliminating 
        overlapping, conflicting, and inconsistent regulatory burdens; 
        and further, to create a more efficient, responsive, 
        transparent, and effective export control process.
            (17) To cooperate with other countries with which the 
        United States has defense treaty commitments or common 
        strategic objectives in restricting the export of goods and 
        technology which would make a significant contribution to the 
        military potential of any country or combination of countries 
        which would prove detrimental to the national security of the 
        United States and of those countries with which the United 
        States has defense treaty commitments or common strategic 
        objectives, and to encourage other friendly countries to 
        cooperate in restricting the sale of goods and technology that 
        can harm our mutual security.
            (18) To promote the national security of the United States 
        which requires that the Nation's economy shall flourish, its 
        geographic integrity is maintained, its political and foreign 
        policy views are respected, the freedom and well-being of its 
        citizens are assured, and that American values are preserved. 
        The United States as a world power must protect its national 
        security against direct and indirect threats through the 
        promotion of nonproliferation policies in all areas of the 
        world.
            (19) To implement export controls and diplomatic activity 
        needed to sustain multilateral and bilateral activities and 
        thereby complement and reinforce each other.
            (20) To enhance the national security and nonproliferation 
        interests of the United States. To this end and consistent with 
        the other policies of this section and the criteria of section 
        5(b) of this Act, the United States will use multilateral and 
        unilateral controls when necessary to ensure that access to 
        weapons of mass destruction, missile delivery systems, and 
        other significant military capabilities is restricted. While 
        the multilateral nonproliferation regimes will be the primary 
        instruments through which the United States will pursue its 
        nonproliferation goals, it will also engage in bilateral 
        agreements and, when consistent with the policies of this 
        section and the criteria of section 5(b), take unilateral 
        action.
            (21) To defer and punish acts of international terrorism 
        and to encourage other countries to take immediate steps to do 
        so, or to terminate their support for, encouragement of, or use 
        of their territories to aid or give sanctuary to, persons and 
        groups involved in international terrorism. To this end and 
        consistent with the policies of this section and the criteria 
        of section 5(b) of this Act, the United States should distance 
        itself from countries that have violated international norms of 
        behavior by repeatedly supporting acts of international 
        terrorism by restricting exports to those countries. The United 
        States may establish such controls on exports as may be 
        appropriate to induce such countries to change their 
        unacceptable policies.
            (22) To promote international peace, stability, and respect 
        of fundamental human rights. The United States may establish 
        controls on exports to countries that threaten regional 
        stability, abuse of fundamental rights of their citizens, or to 
        promote other important foreign policy objectives of the United 
        States consistent with the policies of this section and the 
        criteria of section 5(b) of this Act.
            (23) In developing changes to multilateral control lists, 
        to seek to focus controls on only that set of items that, if 
        taken together and if denied to target countries, would carry 
        out the policy of the United States to deny such countries the 
        ability to design, develop, test, produce, stockpile, or use 
        relevant conventional military capability, weapons of mass 
        destruction, their delivery systems, or other capabilities the 
        denial of which are the goals of United States export control 
        policy.

SEC. 4. GENERAL PROVISIONS.

    (a) Types of Licenses.--The Secretary may require any type of 
validated or general license under such terms and conditions as may be 
imposed by the Secretary for the effective and efficient implementation 
of this Act.
    (b) Control List.--In accordance with the procedures specified in 
sections 5 and 11 of this Act, the Secretary shall establish and 
maintain a list (hereinafter in this Act referred to as the ``Commerce 
Control List'' or ``Control List'') stating license requirements for 
exports of items under this Act.
    (c) Militarily Critical Technologies List.--The Secretary of 
Defense shall bear primary responsibility for establishing and 
maintaining the Militarily Critical Technologies List (hereinafter in 
the Act referred to as the ``MCTL'') identifying equipment and 
technologies critical to the design, development, test, production, 
stockpiling, or use of weapons of mass destruction and other 
significant military capabilities, including nuclear, biological and 
chemical weapons, and manned and unmanned vehicles capable of 
delivering such weapons.
    (d) Right of Export.--No authority or permission to export may be 
required under this Act, or under regulations issued under this Act, 
except to carry out the policies set forth in section 3 of this Act.
    (e) Delegation of Authority.--The President may delegate the power, 
authority, and discretion conferred upon him by this Act to such 
departments, agencies, or officials of the Government as he may 
consider appropriate, except that no authority under this Act may be 
delegated to, or exercised by, any official of any department or agency 
the head of which is not appointed by the President, by and with the 
advice and consent of the Senate.
    (f) Notification of the Public; Consultation With Business.--The 
Secretary shall keep the public fully apprised of changes in export 
control policy and procedures instituted in conformity with this Act 
with a view to encouraging trade. The Secretary shall meet regularly 
with representatives of a broad spectrum of enterprises, labor 
organizations, and citizens interested in or affected by export 
controls, in order to obtain their views on United States export 
control policy and the foreign availability of items subject to 
controls.
    (g) Technical Advisory Committees.--
            (1) Upon his or her own initiative or upon written request 
        by representatives of a substantial segment of any industry 
        which produces any items subject to export controls under this 
        Act or being considered for such controls, the Secretary shall 
        appoint technical advisory committees. Such technical advisory 
        committees shall advise the United States on all aspects of 
        controls imposed or proposed under this Act. Each such 
        committee shall consist of representatives of United States 
        industry and Government, including the Department of Commerce 
        and such other departments and urgencies as appropriate. The 
        Secretary shall permit the widest possible participation by the 
        business community on the technical advisory committees.
            (2) Technical advisory committees established under 
        paragraph (1) shall advise and assist the Secretary and any 
        other department, agency, or official of the Government of the 
        United States to which the President delegates authority under 
        this Act, on actions designed to carry out the policies of this 
        Act. Such committees, where they have expertise in such 
        matters, shall be consulted on questions involving (A) 
        technical matters, (B) worldwide availability and actual 
        utilization of production technology, (C) licensing procedures 
        which affect the level of export controls applicable to any 
        items, (D) revisions of the Control List (as provided in 
        subsection (b), including proposed revisions of multilateral 
        controls in which the United States participates), (E) the 
        issuance of regulations, (F) the impact and interpretation of 
        existing regulations, (G) processes and procedures for review 
        of licenses and policy, and (H) any other questions relating to 
        actions designed to carry out this Act. Nothing in this 
        subsection shall prevent the United States Government from 
        consulting, at any time, with any person representing industry 
        or the general public, regardless of whether such person is a 
        member of a technical advisory committee. Members of the public 
        shall be given a reasonable opportunity, pursuant to 
        regulations prescribed by the Secretary, to present evidence to 
        such committees.
            (3) Upon request of any member of any such committee, the 
        Secretary may, if the Secretary determines it appropriate, 
        reimburse such member for travel, subsistence, and other 
        necessary expenses incurred by such member in connection with 
        the duties of such member.
            (4) Each such committee shall elect a chairman, and shall 
        meet at least every 3 months at the call of the chairman, 
        unless the chairman determines, in consultation with the other 
        members of the committee, that such a meeting is not necessary 
        to achieve the purposes of this subsection. Each such committee 
        shall be terminated after a period of 2 years, unless extended 
        by the Secretary for additional periods of 2 years. The 
        Secretary shall consult each such committee on such termination 
        or extension of that committee.
            (5) To facilitate the work of the technical advisory 
        committees, the Secretary, in conjunction with other 
        departments and agencies participating in the administration of 
        this Act, shall disclose to each such committee adequate 
        information, consistent with national security, pertaining to 
        the reasons for the export controls which are in effect or 
        contemplated for the items or policies for which that committee 
        furnishes advice. Information provided by the technical 
        advisory committees shall not be subject to disclosure under 
        section 552 of title 5, United States Code, and such 
        information shall not be published or disclosed unless the 
        Secretary determines that the withholding thereof is contrary 
        to the national interest.
    (h) Fees.--No fee may be charged in connection with the submission 
or processing of an export license application.

SEC. 5. NONPROLIFERATION, NATIONAL SECURITY, AND FOREIGN POLICY CONTROL 
              AUTHORITIES.

    (a) Authority.--
            (1) In order to carry out the policies enumerated in 
        section 3 of this Act, the President may, in accordance with 
        the provisions of this section and section 15(e), prohibit or 
        curtail the export of any item subject to the jurisdiction of 
        the United States or exported by any person subject to the 
        jurisdiction of the United States. The President may regulate 
        domestic and foreign conduct, consistent with the policies of 
        this Act. Such authority shall include, but not be limited to, 
        the authority to prohibit activity such as financing, 
        contracting, servicing or employment, to deny access to items 
        in the United States and abroad, to conduct audits of records 
        and inspections of facilities, to compel reports, and to 
        implement international commitments of the United States with 
        respect to the control of exports.
            (2) Except as otherwise specified in this Act, the 
        authority contained in this Act shall be exercised by the 
        Secretary, in consultation with appropriate departments and 
        agencies.
            (3) As directed by the President, annual policy guidance 
        shall be issued to provide detailed implementing guidance to 
        licensing officials in all appropriate departments and 
        agencies.
            (4) To develop the annual policy guidance, export controls 
        and other regulations to implement policies contained in 
        section 3 shall be reviewed annually. This annual policy review 
        shall include an evaluation of benefits and costs, including 
        economic impact, of export controls. The review should 
        include--
                    (A) an assessment by the Secretary of Commerce at 
                least 30 days in advance of determinations to extend 
                controls describing the economic consequences of the 
                controls during the preceding 12 months, including 
                estimates of any lost United States exports and jobs;
                    (B) an assessment by the Secretary of State at 
                least 30 days in advance of determinations to extend 
                controls describing the objectives of the controls and 
                the extent to which the controls have attained those 
                objectives over the preceding 12 months;
                    (C) an assessment by the Secretary of Defense at 
                least 30 days in advance of determinations to extend 
                controls describing the impact export controls have had 
                in the preceding 12 months on the national security of 
                the United States;
                    (D) solicitation of public comments for submission 
                of such comments at least 60 days in advance of 
                determinations to extend controls; and
                    (E) a systematic review by the Secretary of the 
                above in consultation with appropriate departments and 
                agencies.
            (5) Based upon the review required by paragraph (4) above, 
        the Secretary, in consultation with appropriate departments and 
        agencies, shall determine at least annually whether the 
        national interest requires that he or she terminate unilateral 
        controls and regulations or maintain them for an additional 12 
        months. Unilateral controls imposed under (b)(1)(B) of this 
        section shall expire by operation of law after one year from 
        the most recent imposition or renewal of such controls unless 
        extended by the Secretary based upon his or her findings 
        consistent with the criteria and other requirements of this 
        Act. Such findings shall be provided to the Congress pursuant 
        to subsection (e)(2) of this section.
    (b) Criteria.--
            (1) Controls may be imposed, expanded or extended under 
        this section only if the President determines that--
                    (A) the control is essential to advancing the 
                nonproliferation, national security, or foreign 
                policies of the United States provided in section 3 
                above; and like-minded states have agreed with the 
                United States on the utility of such controls in 
                obtaining a shared objective and procedures for 
                implementing that objective; or
                    (B) the control is essential to advancing the 
                nonproliferation, national security, or foreign 
                policies of the United States provided in section 3 
                above; and the objective of the control is in the 
                overall national interest of the United States and 
                cannot be attained by means other than the control.
            (2) The President should make the determination described 
        in subparagraph (1)(B) above for the purpose of imposing or 
        expanding a unilateral control, only if--
                    (A) such controls are likely to make substantial 
                progress toward achieving the intended purpose of--
                            (i) changing, modifying or constraining the 
                        undesirable conduct or policies of the target 
                        country or countries;
                            (ii) denying access by the target country 
                        to controlled items for all sources;
                            (iii) establishing multilateral cooperation 
                        to deny the target country access to controlled 
                        items from all sources; or
                            (iv) denying exports or assistance that 
                        significantly and directly contribute to the 
                        proliferation of weapons of mass destruction, 
                        terrorism, human rights abuses, or regional 
                        instability;
                    (B) the proposed controls are compatible with the 
                foreign policy objectives of the United States and with 
                overall United States policy toward the target country;
                    (C) the reaction of other countries to the 
                imposition or expansion of such export controls by the 
                United States is not likely to render the controls 
                ineffective in achieving the intended purpose or to be 
                counter-productive to United States policy interests;
                    (D) the effect of the proposed controls on the 
                export performance of the United States, the 
                competitive position of the United States as a supplier 
                of items, or on the economic well-being of individual 
                United States companies and their employees and 
                communities does not exceed the benefit to the United 
                States foreign policy, nonproliferation, or national 
                security interests; and
                    (E) the United States has the ability to enforce 
                the proposed controls effectively.
            (3) The President should make the determination described 
        in subparagraph (1)(B) above for the purpose of extending a 
        control, only if--
                    (A) such controls are likely to continue to make 
                substantial progress toward achieving the intended 
                purpose of--
                            (i) changing, modifying or constraining the 
                        undesirable conduct or policies of the target 
                        country or countries;
                            (ii) denying access by the target country 
                        to controlled items from all sources;
                            (iii) establishing multilateral cooperation 
                        to deny the target country access to controlled 
                        items from all sources; or
                            (iv) denying exports or assistance that 
                        significantly and directly contribute to the 
                        proliferation of weapons of mass destruction, 
                        terrorism, human rights abuses, or regional 
                        instability;
                    (B) the impact of the controls has been compatible 
                with the foreign policy objectives of the United States 
                and with overall United States policy toward the target 
                country;
                    (C) the reaction of other countries to the 
                imposition or expansion of such export controls by the 
                United States has not rendered the controls ineffective 
                in achieving the intended purpose and have not been 
                counter-productive to United States policy interests;
                    (D) the effect of the proposed controls on the 
                export performance of the United States, the 
                competitive position of the United States as a supplier 
                of items, and the economic well-being of individual 
                United States companies and their employees and 
                communities has not exceeded the benefit to the United 
                States foreign policy, nonproliferation, or national 
                security interests; and
                    (E) the United States has enforced the controls 
                effectively.
    (c) Consultation With Industry.--The Secretary, in every possible 
instance, shall consult with and seek advice from affected United 
States public, industries, and technical advisory committees and seek 
public comment before the imposition, expansion, or extensions of any 
export control under this section. Such consultation shall include 
advice on the criteria set forth in subsection (b) and such other 
matters as the Secretary considers appropriate.
    (d) Consultation With Other Countries.--When imposing, expanding, 
or extending export controls under this section, the Secretary of State 
shall, in consultation with appropriate departments and agencies and at 
the earliest appropriate opportunity, consult with the countries with 
which the United States maintains export controls cooperatively and 
with such other countries as appropriate to advise them of the reasons 
for the action and to urge them to adopt similar controls.
    (e) Consultations With the Congress.--
            (1) The Secretary, in consultation with appropriate 
        departments and agencies, shall keep the Congress fully 
        apprised of changes in export control policy and procedures 
        pursuant to this Act. The Secretary or his designates, in 
        consultation with representatives of other appropriate 
        departments and agencies, shall consult with the Committee on 
        Foreign Affairs of the House of Representatives and the 
        Committee on Banking, Housing, and Urban Affairs of the Senate 
        on changes in export control policy, procedures, and other 
        developments related to this Act.
            (2) The Secretary may not impose, expand, or extend 
        unilateral export controls under this section until the 
        Secretary has submitted to the Congress a report--
                    (A) specifying the purpose of the controls;
                    (B) specifying the determinations of the Secretary 
                described in subsection (b), the bases for such 
                determinations (or considerations), and any possible 
                adverse foreign policy consequences of the controls;
                    (C) describing the nature, the subjects, and the 
                results of, or the plans for, the consultation with 
                industry and the interested public pursuant to 
                subsection (c) and with other countries pursuant to 
                subsection (d);
                    (D) specifying the nature and results of any 
                alternative means attempted to achieve the objective of 
                the control, or the reasons for imposing, expanding, or 
                extending the controls without attempting any such 
                alternative means; and
                    (E) describing the availability from other 
                countries of items comparable to the items subject to 
                the proposed export controls, and describing the nature 
                and results of the efforts made to secure the 
                cooperation of foreign governments in controlling the 
                foreign availability of such comparable goods or 
                technology.
        Such report shall also indicate how such controls will further 
        significantly the policies of the United States as set forth in 
        section 3 or will further its declared international 
        obligations.
            (3) To the extent necessary to further the effectiveness of 
        the export controls, portions of a report required by paragraph 
        (2) may be submitted to the Congress on a classified basis, and 
        shall be subject to the provisions of section 11(c) of this 
        Act. Each such report shall, at the same time it is submitted 
        to the Congress, also be submitted to the General Accounting 
        Office for the purpose of assessing the report's full 
        compliance with the intent of this subsection.
    (f) Multilateral Control Regimes.--
            (1) Policy.--In order to carry out the policies of section 
        3 and the criteria of section 5(b), the Secretary of State, in 
        consultation with appropriate departments and agencies, should 
        seek multilateral arrangements that are intended to secure 
        effective achievement of these policies and criteria and in so 
        doing also establish fairer and more predictable competitive 
        opportunities for United States exporters.
            (2) Standards for national systems.--In the establishment 
        and maintenance of multilateral regimes, the Secretary of 
        State, in consultation with appropriate departments and 
        agencies, shall take steps to attain the cooperation of members 
        in the effective implementation of export control systems. Such 
        systems should contain the following elements:
                    (A) National laws providing sufficient enforcement 
                authorities, civil and criminal penalties, and statutes 
                of limitations sufficient to deter potential violations 
                and punish violators.
                    (B) A program to evaluate export license 
                applications that includes sufficient technical 
                expertise to assess the licensing status of exports and 
                ensure the reliability of end users.
                    (C) An enforcement mechanism that provides 
                authority for trained enforcement officers to 
                investigate and prevent illegal exports.
                    (D) A system of export control documentation to 
                verify the movement of items.
                    (E) Procedures for the coordination and exchange of 
                information concerning licensing, end users, and 
                enforcement.
                    (F) Adequate national resources devoted to 
                subparagraphs (A) through (E) of this subsection.
            (3) Standards for multilateral regimes.--In the 
        establishment and maintenance of multilateral regimes, the 
        Secretary of State, in consultation with appropriate 
        departments and agencies, shall seek, consistent with the 
        policies of section 3 and the criteria of section 5(b), the 
        following features for the multilateral control regimes in 
        which the United States participates:
                    (A) Full membership.--Achieve membership of all 
                supplier countries whose policies and activities are 
                consistent with the objectives and membership criteria 
                of the multilateral arrangement.
                    (B) Effective enforcement and compliance.--Promote 
                enforcement and compliance with the rules and 
                guidelines of the members of the regime through 
                maintenance of an effective control list.
                    (C) Public understanding.--Enhance public 
                understanding of each regime's purpose and procedures.
                    (D) Effective implementation procedures.--Achieve 
                procedures for effective implementation of the regime 
                rules and guidelines through uniform and consistent 
                interpretations of export controls agreed to by the 
                governments participating in the regime.
                    (E) Enhanced cooperation among regime members.--
                Reach agreement to enhance cooperation among members of 
                the regime in obtaining the agreement of governments 
                outside the regime to restrict the export of items 
                controlled by the regime, to establish an ongoing 
                mechanism in the regime to coordinate planning and 
                implementation of export control measures related to 
                such agreements, and to remove items from the list if 
                the control of such items no longer serves the 
                objectives of the members of the regime.
                    (F) Periodic high-level meetings.--Conduct periodic 
                meetings of high-level representatives of participating 
                governments for the purpose of coordinating export 
                control policies and issuing policy guidance to the 
                regime members.
                    (G) Common list of controlled items.--Reach 
                agreement on a common list of items controlled by the 
                regime.
            (4) Incentives for partnership.--Consistent with the 
        policies of this Act and consistent with the objectives, rules 
        and guidelines of the individual regime--
                    (A) the Secretary, in consultation with appropriate 
                departments and agencies, may provide for exports free 
                of validated license requirements to and among members 
                of a multilateral regime for items subject to controls 
                under such a multilateral regime; and
                    (B) the Secretary, in consultation with appropriate 
                departments and agencies, may adjust licensing policies 
                for access to items controlled pursuant to this Act 
                depending on a country or other entity's degree of 
                adherence to the export control policies of section 5.
    (g) Publication of Elements of Multilateral Control Regimes.--
Consistent with arrangements in multilateral regimes, the United States 
shall publish the following information:
            (1) Purpose(s) of the control regime.
            (2) Member countries.
            (3) Licensing policy.
            (4) Items subject to controls together with all public 
        notes, understandings, and other aspects of such agreement and 
        all changes thereto.
            (5) Target countries or regions (if any), target end uses, 
        and target end users (including projects of concern).
            (6) Rules of interpretation.
            (7) Major policy actions.
            (8) The rules and procedures of the regime for establishing 
        and modifying the above elements of the regime and for 
        reviewing export license applications as provided for by the 
        regime.
Subject to commitments required by multilateral regimes, within 6 
months after the date of the enactment of this Act or thereafter within 
2 months of joining or organizing a new multilateral regime, the 
Secretary, in consultation with appropriate departments and agencies, 
shall publish the above information. In addition, the Secretary shall 
publish changes in the above information within 2 months of adoption of 
such changes by a regime.
    (h) Seeking Multilateral Support for Unilateral Controls.--For all 
unilateral controls, the Secretary of State, in consultation with 
appropriate departments and agencies, shall have a continuing duty to 
seek support for such controls by other countries and by effective 
multilateral control regimes.
    (i) Regulation Indicating Nature of Unilateral Controls.--
Regardless of the reason for control, all unilateral controls shall be 
indicated as such by regulation.
    (j) Implementation.--
            (1) Nonproliferation.--
                    (A) Countries participating in certain 
                agreements.--The Secretary of State, in consultation 
                with appropriate departments and agencies, shall be 
                responsible for conducting negotiations with those 
                countries participating in the groups known as the 
                Coordinating Committee, the Missile Technology Control 
                Regime (``MTCR''), the Australia Group, the Nuclear 
                Suppliers' Group, and other regimes that may be 
                established, regarding their cooperation in restricting 
                the export of items in order to carry out the policies 
                set forth in section 3.
        Such negotiations shall cover, among other issues, which items 
        should be subject to multilaterally agreed export restrictions, 
        and the implementation of the restrictions consistent with the 
        principles in this Act.
                    (B) Other countries.--The Secretary of State, in 
                consultation with appropriate departments and agencies, 
                shall be responsible for conducting negotiations with 
                countries and groups of countries not referred to in 
                subparagraph (A) regarding their cooperation in 
                restricting the export of items consistent with 
                purposes set forth in this Act.
            (2) Missile technology.--The Secretary, consistent with 
        section 3, section 5(b), section 5(f), and in consultation with 
        appropriate departments and agencies--
                    (A) shall, consistent with section 11(e), establish 
                and maintain, as part of the Control List, dual-use 
                items on the MTCR Annex;
                    (B) may include, as part of the Control List, items 
                that would provide a material contribution to the 
                design, development, test, production, stockpiling, or 
                use of missile delivery systems, which items are not 
                included in the MTCR Annex but which the United States 
                proposes to the other MTCR adherents for inclusion in 
                the MTCR Annex; and
                    (C) shall require an individual validated license, 
                consistent with MTCR arrangements, for--
                            (i) any export of items on the list 
                        referred to under paragraph (2) to any country, 
                        except as provided for in subsection (f)(4) of 
                        this section; and
                            (ii) any export of items that the exporter 
                        knows is destined for a project or facility for 
                        the design, development, or manufacture of a 
                        missile in a country that is not an MTCR 
                        adherent.
            (3) Chemical and biological weapons.--The Secretary, 
        consistent with section 3, section 5(b), section 5(f), and in 
        consultation with appropriate departments and agencies--
                    (A) shall, consistent with section 11(e), establish 
                and maintain, as part of the Control List, dual-use 
                items listed by the Australia Group or by the Chemical 
                Weapons Convention;
                    (B) may include, as part of the Control List, items 
                that would provide a material contribution to the 
                design, development, test, production, stockpiling, or 
                use of chemical or biological weapons, which items are 
                not listed by the Australia Group but which the United 
                States proposes to the other Australia Group adherents 
                for inclusion in its list of controlled items; and
                    (C) shall require an individual validated license, 
                consistent with the arrangements in the Australia Group 
                and the Chemical Weapons Convention, for--
                            (i) any export of items on the list 
                        referred to under paragraph (3) to any country, 
                        except as provided for in subsection (f)(4) of 
                        this section; and
                            (ii) any export of items that the exporter 
                        knows is destined for a project or facility for 
                        the design, development, or manufacture of a 
                        chemical or biological weapon.
            (4) International terrorism.--
                    (A) A validated license shall be required for the 
                export of items to a country if the Secretary of State 
                has made the following determinations:
                            (i) The government of such country has 
                        repeatedly provided support for acts of 
                        international terrorism.
                            (ii) The export of such items could make a 
                        significant contribution to the military 
                        potential of such country, including its 
                        military logistics capability, or could enhance 
                        the ability of such country to support acts of 
                        international terrorism.
                    (B) The Secretary and the Secretary of State shall 
                notify the Committee on Foreign Affairs of the House of 
                Representatives and the Committee on Banking, Housing, 
                and Urban Affairs and the Committee on Foreign 
                Relations of the Senate at least 30 days before issuing 
                any validated license required by paragraph (A).
                    (C) Each determination of the Secretary of State 
                under paragraph (A)(i), including each determination in 
                effect on the date of the enactment of the 
                Antiterrorism and Arms Export Amendments Act of 1989 
                (December 12, 1989), shall be published in the Federal 
                Register.
                    (D) A determination made by the Secretary of State 
                under paragraph (A)(i) may not be rescinded unless the 
                President submits to the Speaker of the House of 
                Representatives and the chairman of the Committee on 
                Banking, Housing, and Urban Affairs and the chairman of 
                the Committee on Foreign Relations of the Senate--
                            (i) before the proposed rescission would 
                        take effect, a report certifying that--
                                    (I) there has been a fundamental 
                                change in the leadership and policies 
                                of the government of the country 
                                concerned;
                                    (II) that government is not 
                                supporting acts of international 
                                terrorism; and
                                    (III) that government has provided 
                                assurances that it will not support 
                                acts of international terrorism in the 
                                future; or
                            (ii) at least 45 days before the proposed 
                        rescission would take effect, a report 
                        justifying the rescission and certifying that--
                                    (I) the government concerned has 
                                not provided any support for 
                                international terrorism during the 
                                preceding 6-month period; and
                                    (II) the government concerned has 
                                provided assurances that it will not 
                                support acts of international terrorism 
                                in the future.
            (5) Human rights and crime control.--
                    (A) Crime control and detection instruments and 
                equipment shall be approved for export by the Secretary 
                only pursuant to a validated export license. 
                Notwithstanding any other provision of the Act--
                            (i) any determination of the Secretary of 
                        what items shall be included on the Control 
                        List established pursuant to section 11(e) as a 
                        result of the export restriction imposed under 
                        this subsection shall be made with the 
                        concurrence of the Secretary of State; and
                            (ii) any determination of the Secretary to 
                        approve or deny an export license application 
                        to export crime control and detection 
                        instruments or equipment shall be made with the 
                        concurrence of the Secretary of State, except 
                        that, if the Secretary does not agree with the 
                        Secretary of State with respect to any 
                        determination under subparagraph (i) or (ii), 
                        the matter shall be referred to the President 
                        for resolution.
                    (B) The provisions of this subsection shall not 
                apply to exports to Canada, countries which are members 
                of the European Union, Norway, Iceland, Japan, 
                Australia, or New Zealand, or to such countries as the 
                President shall designate consistent with the purposes 
                of this subsection and section 502B of the Foreign 
                Assistance Act of 1961 (22 U.S.C. 2304).
    (k) Unfair Impact on United States Exporter.--
            (1) Policy.--It is the policy of the United States that no 
        United States exporter should be placed at a competitive 
        disadvantage vis-a-vis its commercial competitors because of 
        export control policies or practices unless relief from such 
        controls would create a significant risk to the foreign policy, 
        nonproliferation, or national security interests of the United 
        States.
            (2) Relief from export controls.--A person may petition the 
        Secretary for relief from current export control requirements 
        on any one or more of the following grounds and the Secretary 
        may conduct evaluations for relief on his or her own initiative 
        based upon any one or more of the following grounds:
                    (A) Foreign availability.--The controlled item is 
                available in fact in sufficient quantity and comparable 
                quality to the proposed countries of export or end 
                users from sources outside the United States so that 
                the requirement for a validated license is or would be 
                ineffective in achieving the purpose of the control.
                    (B) Ineffective controls.--The controlled items are 
                so widely available in the United States that the 
                Government cannot enforce the controls effectively, 
                unless the Secretary has reliable evidence that the 
                controls have been effective in denying such target 
                destination access to the controlled items originating 
                in the United States.
                    (C) Competitive disadvantage.--
                            (i) Differences between the export control 
                        policies or procedures of the United States and 
                        that of governments of foreign suppliers 
                        effectively has placed or will place the United 
                        States exporter at a near-term commercial 
                        disadvantage vis-a-vis its competitors abroad.
                            (ii) Changes to the domestic control lists 
                        of the United States and foreign governments 
                        result in similar items being controlled 
                        differently thus resulting in a competitive 
                        disadvantage.
            (3) Provisions for relief.--Consistent with multilateral 
        arrangements, the Secretary, in consultation with appropriate 
        departments and agencies, shall make determinations of facts 
        under paragraph (2) and, subject to paragraph 4, provide the 
        following relief to firms that meet the criteria in paragraph 
        (2):
                    (A) Change the control status of all or some of the 
                items in question so as to eliminate any significant 
                competitive disadvantage.
                    (B) Selectively approve the sale of controlled 
                goods so as to eliminate any significant competitive 
                disadvantage.
                    (C) Seek multilateral support to eliminate the 
                source of foreign availability or to enhance a control 
                to make it effective. If this relief is chosen and if 
                such efforts fail to achieve multilateral support to 
                eliminate the source of foreign availability or to make 
                the control effective, then not later than 330 days 
                from the date of the Secretary's initiation of an 
                assessment, the Secretary shall provide other relief 
                pursuant to (A) or (B) above or conclude pursuant to 
                paragraph (4) that the granting of such relief would 
                create a significant risk to United States 
                nonproliferation, foreign policy or national security 
                interests: Provided, however, If the Secretary of 
                State, in consultation with appropriate departments and 
                agencies, finds that substantial progress is being made 
                to achieve multilateral support to eliminate the source 
                of foreign availability or to make the control 
                effective, then the Secretary shall provide other 
                relief pursuant to (A) or (B) above or conclude 
                pursuant to paragraph (4) that the granting of such 
                relief would create a significant risk to United States 
                nonproliferation, foreign policy or national security 
                interests, and shall do so within an additional 180 
                days.
        Except as provided in paragraph (5), a determination that a 
        petitioner qualifies for relief under paragraph (2) above shall 
        not compel the United States to decontrol an item that remains 
        subject to control by a multilateral regime in which the United 
        States is a member or adherent.
            (4) Exceptions from relief.--The Secretary shall provide 
        relief to a petitioner who qualifies for relief under paragraph 
        (2) unless the Secretary concludes that the granting of such 
        relief would create a significant risk to United States 
        nonproliferation, foreign policy, or national security 
        interests. In the event the Secretary determines to grant such 
        relief, he or she may do so unless the President determines 
        that such relief would create a significant risk to the foreign 
        policy, nonproliferation, or national security interests of the 
        United States.
            (5) Relief from traditional east-west cocom controls.--
        Relief under paragraph (2) shall compel either the elimination 
        of the foreign availability or decontrol as provided in this 
        paragraph for an item controlled by the United States based 
        solely on its undertakings in the Coordinating Committee prior 
        to October of 1993 so long as the Coordinating Committee shall 
        continue in existence. For such an item, the Secretary may not, 
        after the determination is made under paragraph (2), require a 
        validated license for the export of such items during the 
        period that such determination remains in effect, unless the 
        President determines that the absence of export controls under 
        this section on the items would prove detrimental to the 
        national security of the United States.
            (6) Procedures.--In any case in which the President or the 
        Secretary determines that export controls under this section 
        must be maintained notwithstanding the existence of facts that 
        constitute a basis for granting relief, the Secretary shall 
        publish that determination, together with a concise statement 
        of its basis and the estimated economic impact of the decision.
                    (A) Notice of assessments.--Whenever the Secretary 
                undertakes an assessment under paragraph (2), the 
                Secretary shall publish notice of initiation of such 
                assessment in the Federal Register.
                    (B) Procedures for making determinations.--During 
                the conduct of an assessment under this subsection, the 
                Secretary shall consult with other appropriate 
                departments and agencies concerning the conduct of the 
                assessment. The Secretary shall make a determination as 
                to whether relief is required under paragraph (2) 
                within 120 days of the date of the Secretary's 
                initiation of an assessment and shall so notify the 
                applicant. If the Secretary has determined that relief 
                is appropriate, the Secretary shall, upon making such a 
                determination, submit the determination for review to 
                appropriate departments and agencies for consultations 
                regarding the findings and selected relief. The 
                Secretary's determination as to eligibility for relief 
                and the nature of the relief to be granted does not 
                require the concurrence or approval of any official, 
                department, or agency to which such a determination is 
                submitted. Not later than 150 days from the date of the 
                Secretary's initiation of an assessment, the Secretary 
                shall respond in writing to the petitioner and submit 
                for publication in the Federal Register, that--
                            (i) relief is required and--
                                    (I) the requirement of a validated 
                                license has been removed;
                                    (II) the control status of all or 
                                some of the items in question has been 
                                changed so as to eliminate any 
                                significant competitive disadvantage;
                                    (III) the sale of controlled items 
                                have been approved so as to eliminate 
                                any significant competitive 
                                disadvantage;
                                    (IV) pursuant to paragraph (5), 
                                export controls under this section must 
                                be maintained notwithstanding the 
                                finding under paragraph (2) and the 
                                applicable steps are being taken under 
                                subparagraph (C) this paragraph; or
                                    (V) the United States 
                                recommendation to remove the validated 
                                license requirement or change the 
                                control status will be submitted to a 
                                relevant multilateral regime for 
                                consideration for a period of not more 
                                than 180 days beginning on the date of 
                                the publication; or
                            (ii) a right to relief under paragraph (2) 
                        does not exist.
                In any case in which the submission for publication is 
                not made within 150 days of the date of the Secretary's 
                initiation of an assessment, the Secretary may not 
                thereafter require a license for the export of items 
                that are the subject of the allegation under paragraph 
                (2). In the case of a determination made under 
                subsection (k)(6)(B)(1)(e) to refer a proposed relief 
                to the relevant multilateral regime, no license for 
                such export may be required after 330 days from the 
                date of the Secretary's initiation of an assessment 
                unless the Secretary shall make a finding under 
                paragraph (4) or grant other relief under paragraph 
                (3).
                    (C) Negotiations to eliminate foreign 
                availability.--
                            (i) In any case in which export controls 
                        are maintained under this section pursuant to 
                        paragraph (4), the Secretary of State shall 
                        actively pursue negotiations with the 
                        governments of the appropriate foreign 
                        countries for the purpose of eliminating such 
                        foreign availability or competitive 
                        disadvantage. No later than the commencement of 
                        such negotiations, the Secretary of State shall 
                        notify in writing the Committee on Banking, 
                        Housing, and Urban Affairs of the Senate and 
                        the Committee on Foreign Affairs of the House 
                        of Representatives that he has begun such 
                        negotiations and why he believes it is 
                        important that export controls on the items 
                        involved be maintained to avoid a significant 
                        risk to the foreign policy, nonproliferation, 
                        or national security interests of the United 
                        States.
                            (ii) Whenever the Secretary of State has 
                        reason to believe that items subject to export 
                        controls by the United States may become 
                        available from other countries to target 
                        countries and that such availability can be 
                        prevented or eliminated by means of 
                        negotiations with such other countries, the 
                        Secretary of State shall promptly initiate 
                        negotiations with the governments of such other 
                        countries to prevent such foreign availability.
            (7) Sharing of information.--Each department or agency of 
        the United States, including any intelligence agency, and all 
        contractors with any such department or agency, shall, upon the 
        request of the Secretary and consistent with the protection of 
        intelligence sources and methods, furnish information to the 
        Commerce Department concerning foreign availability of items 
        subject to export controls under this section. Consistent with 
        the protection of intelligence sources and methods and 
        classification restrictions, each such department or agency 
        shall allow the Commerce Department access to such information 
        from a laboratory or other facility within such department or 
        agency.
            (8) Availability defined.--For the purposes of this 
        subsection, the term ``available in fact to target countries'' 
        includes production or availability of any item from any 
        country--
                    (A) where the item is not restricted for export to 
                any target country; or
                    (B) where the export restrictions are determined by 
                the Secretary to be ineffective.

        For purposes of subparagraph (B), the mere inclusion of items 
        on a list of items subject to multilateral export controls 
        shall not alone constitute credible evidence that a government 
        of a country provides an effective means of controlling the 
        export of such items to target countries.
            (9) Congressional notification and reporting 
        requirements.--The Secretary shall each year notify the 
        Committee on Foreign Affairs of the House of Representatives 
        and the Committee on Banking, Housing, and Urban Affairs of the 
        Senate of all petitions for relief and the status of all such 
        petitions.
    (l) Unilateral Controls Prohibited.--
            (1) Any export controls imposed unilaterally by the United 
        States for purposes adopted by the group known as the 
        Coordinating Committee shall expire 6 months after the date of 
        enactment of this paragraph, or 6 months after the export 
        control is imposed, whichever date is later, except that--
                    (A) any such export controls on those items for 
                which a determination of the Secretary that there is no 
                foreign availability has been made under this section 
                before the end of the applicable 6-month period and is 
                in effect may be renewed for periods of not more than 6 
                months each; and
                    (B) any such export controls on those items with 
                respect to which the President, by the end of the 
                applicable 6-month period, is actively pursuing 
                negotiations with other countries to achieve 
                multilateral export controls on those items may be 
                renewed for 2 periods of not more than 6 months each.
            (2) Export controls on items described in subparagraph (A) 
        or (B) of paragraph (1) above may be renewed only if, before 
        each renewal, the Secretary submits to the Congress a report 
        setting forth all the controls being renewed and stating the 
        specific reasons for such renewal.
    (m) International Obligations.--Notwithstanding other provisions of 
this Act containing limitations on authority to control imports and 
exports, pursuant to this paragraph and in order to fulfill obligations 
of the United States pursuant to resolutions of the United Nations, 
treaties, or other international agreements to which the United States 
is a party, the Secretary, in consultation with appropriate departments 
and agencies, may impose controls on exports and imports to and from a 
target country or region. The Secretary may regulate domestic and 
foreign conduct consistent with the policies of such United Nations 
resolutions, treaties, and international agreements. Such authority 
shall include, but not be limited to, the authority to prohibit 
activity such as financing, contracting, servicing or employment, to 
deny access to items in the United States and abroad, to conduct audits 
of records and inspections of facilities, to compel reports, and to 
curtail travel.
    (n) Information Sharing.--The Secretary and appropriate officials 
of the intelligence community, as determined by the Director of Central 
Intelligence, and other appropriate Government agencies shall establish 
a procedure for information sharing.
    (o) Denied Parties, Sanctioned Parties, Specially Designated 
Nationals, and Other Parties Presenting Unacceptable Risks of 
Diversion.--
            (1) Denied parties, sanctioned parties, specially 
        designated nationals.--The Secretary shall publish parties 
        denied export privileges under this Act, parties sanctioned for 
        prohibited proliferation activity under this Act or other 
        statutes, and specially designated nationals named under the 
        International Emergency Economic Powers Act, as amended, 50 
        U.S.C. 1701, et seq. (1988).
            (2) Other parties.--The Secretary shall maintain a list of 
        parties for whom licenses will be presumptively denied.
    (p) Freedom of Information Act Exemption.--The identity of parties 
maintained or disclosed pursuant to subsection (o)(2) is not subject to 
disclosure under section 552 of title 5, United States Code.

SEC. 6. SHORT SUPPLY CONTROLS.

    (a) Authority.--
            (1) In order to carry out the policy set forth in section 
        3(2)(D) of this Act, the President may prohibit or curtail the 
        export of any items subject to the jurisdiction of the United 
        States or exported by any person subject to the jurisdiction of 
        the United States. In curtailing exports to carry out the 
        policy set forth in section 3(2)(D) of this Act, the President 
        shall allocate a portion of export licenses on the basis of 
        factors other than a prior history of exportation. Such factors 
        shall include the extent to which a country engages in 
        equitable trade practices for United States items and treats 
        the United States equitably in times of short supply.
            (2) Upon imposing quantitative restrictions on exports of 
        any items to carry out the policy set forth in section 3(2)(D) 
        of this Act, the Secretary shall include in a notice published 
        in the Federal Register regarding such restrictions an 
        invitation to all interested parties to submit written comments 
        within 15 days from the date of publication on the impact of 
        such restrictions and the method of licensing used to implement 
        them.
            (3) Notwithstanding subsection 4(h) of this Act, in 
        imposing export controls under this section, the President's 
        authority shall include, but not be limited to, the imposition 
        of export license fees.
    (b) Monitoring.--
            (1) In order to carry out the policy set forth in section 
        3(2)(D) of this Act, the Secretary shall monitor exports, and 
        contracts for exports, of any good (other than a commodity 
        which is subject to the reporting requirements of section 182 
        of the Agricultural Act of 1970 (7 U.S.C. 612c-3)) when the 
        volume of such exports in relation to domestic supply 
        contributes, or may contribute, to an increase in domestic 
        prices or a domestic shortage, and such price increase or 
        shortage has, or may have, a serious adverse impact on the 
        economy or any sector thereof. Any such monitoring shall 
        commence at a time adequate to assure that the monitoring will 
        result in a data base sufficient to enable policies to be 
        developed, in accordance with section 3(2)(D) of this Act, to 
        mitigate a short supply situation or serious inflationary price 
        rise or, if export controls are needed, to permit imposition of 
        such controls in a timely manner. Information which the 
        Secretary requires to be furnished in effecting such monitoring 
        shall be confidential, except as provided in paragraph (2) of 
        this subsection.
            (2) The results of such monitoring shall, to the extent 
        practicable, be aggregated and included in weekly reports 
        setting forth, as to each item monitored, actual and 
        anticipated exports, the destination by country, and the 
        domestic and worldwide price, supply, and demand. Such reports 
        may be made monthly if the Secretary determines that there is 
        insufficient information to justify weekly reports.
    (c) Domestically-Produced Crude Oil.--
            (1) Notwithstanding any other provision of this Act and 
        notwithstanding subsection (u) of section 28 of the Mineral 
        Leasing Act of 1920 (30 U.S.C. 185), no domestically-produced 
        crude oil transported by pipeline over right-of-way granted 
        pursuant to section 203 of the TransAlaska Pipeline 
        Authorization Act (43 U.S.C. 1652) (except any such crude oil 
        which (A) is exported to an adjacent foreign country to be 
        refined and consumed therein in exchange for the same quantity 
        of crude oil being exported from that country to the United 
        States, which exchange must result, through convenience or 
        increased efficiency of transportation, in lower prices for 
        consumers of petroleum products in the United States as 
        described in paragraph (2)(A)(ii) of this subsection; (B) is 
        temporarily exported for convenience or increased efficiency of 
        transportation across parts of an adjacent foreign country and 
        reenters the United States; or (C) is transported to Canada, to 
        be consumed therein, in amounts not to exceed an annual average 
        of 50,000 barrels per day, in addition to exports under 
        subparagraphs (2)(A) and (2)(B), except that any ocean 
        transportation of such oil shall be by vessels documented under 
        section 12106 of title 46, United States Code) may be exported 
        from the United States, or any of its territories and 
        possessions, subject to paragraph (2) of this subsection.
            (2) Crude oil subject to the prohibition contained in 
        paragraph (1) may be exported only if--
                    (A) the President so recommends to the Congress 
                after making and publishing express findings that 
                exports of such crude oil, including exchanges--
                            (i) will not diminish the total quantity or 
                        quality of petroleum refined within, stored 
                        within, or legally committed to be transported 
                        to and sold within the United States;
                            (ii) will, within 3 months following the 
                        initiation of such exports or changes, result 
                        in (I) acquisition costs to the refiners which 
                        purchase the imported crude oil being lower 
                        than the acquisition costs such refiners would 
                        have to pay for the domestically-produced oil 
                        in the absence of such an export or exchange, 
                        and (II) not less than 75 percent of such 
                        savings in costs being reflected in wholesale 
                        and retail prices of products refined from such 
                        imported crude oil;
                            (iii) will be made only pursuant to 
                        contracts which may be terminated if the crude 
                        oil supplies of the United States are 
                        interrupted, threatened, or diminished;
                            (iv) are clearly necessary to protect the 
                        national interest; and
                            (v) are in accordance with the provisions 
                        of this Act; and
                    (B) the President includes such findings in his or 
                her recommendation to the Congress and the Congress, 
                within 60 days after receiving that recommendation, 
                agrees to a joint resolution which approves such 
                exports on the basis of those findings, and which is 
                thereafter enacted into law.
            (3) Notwithstanding any other provision of this section or 
        any other section or any other provision of law, including 
        subsection (u) of section 28 of the Mineral Leasing Act of 1920 
        (30 U.S.C. 185(u)), the President may export oil to any country 
        pursuant to a bilateral international oil supply agreement 
        entered into by the United States with such nation before June 
        25, 1979, or to any country pursuant to the International 
        Emergency Oil Sharing Plan of the International Energy Agency.
    (d) Agriculture commodities.--
            (1) The Authority conferred by this section shall not be 
        exercised for any agricultural commodity, including fats and 
        oils or animal hides or skins, without the approval of the 
        Secretary of Agriculture. The Secretary of Agriculture shall 
        not approve the exercise of such authority for any such 
        commodity during any period for which the supply of such 
        commodity is determined by the Secretary of Agriculture to be 
        in excess of the requirements of the domestic economy except to 
        the extent the President determines that such exercise of 
        authority is required to carry out the policies set forth in 
        subparagraph (B) or (C) of paragraph (2) of section 3 of this 
        Act. The Secretary of Agriculture shall, by exercising the 
        authority which the Secretary of Agriculture has under other 
        applicable provisions of law, collect data on export sales of 
        animal hides and skins.
            (2) Upon approval of the Secretary, in consultation with 
        the Secretary of Agriculture, agricultural commodities 
        purchased by or for use in a foreign country may remain in the 
        United States for export at a later date free from any 
        quantitative limitations on export which may be imposed to 
        carry out the policy set forth in section 3(2)(D) of this Act 
        subsequent to such approval. The Secretary may not grant such 
        approval unless the Secretary receives adequate assurance and, 
        in conjunction with the Secretary of Agriculture, finds (A) 
        that such commodities will eventually be exported, (B) that 
        neither the sale nor export thereof will result in an excessive 
        drain of scarce materials and have a serious domestic 
        inflationary impact, (C) that storage of such commodities in 
        the United States will not unduly limit the space available for 
        storage of domestically-owed commodities, and (D) that the 
        purpose of such storage is to establish a reserve of such 
        commodities for later use, not including resale to or use by 
        another country. The Secretary may issue such regulations as 
        may be necessary to implement this paragraph.
            (3)(A) If the President imposes export controls on any 
        agricultural commodity in order to carry out the policy set 
        forth in paragraph (2)(B), (2)(C), 2(D), or (12) of section 3 
        of this Act, the President shall immediately transmit a report 
        on such action to the Congress, setting forth the reasons for 
        the controls in detail and specifying the periods of time, 
        which may not exceed 1 year, that the controls are proposed to 
        be in effect. If the Congress, within 60 days after the date of 
        its receipt of the report, adopts a joint resolution pursuant 
        to paragraph (4) approving the imposition of the export 
        controls, then such controls shall remain in effect for the 
        period specified in the report, or until terminated by the 
        President, whichever occurs first. If the Congress, within 60 
        days after the date of its receipt of such report, fails to 
        adopt a joint resolution approving such controls, then such 
        controls shall cease to be effective upon the expiration of 
        that 60-day period.
            (B) The provisions of subparagraph (A) and paragraph (4) 
        shall not apply to export controls--
                    (i) which are extended under this Act if the 
                controls, when imposed, were approved by the Congress 
                under subparagraph (A) and paragraph (4); or
                    (ii) which are imposed on exports to a country as 
                part of the prohibition or curtailment of all exports 
                to that country.
            (4)(A) For purposes of this paragraph, the term ``joint 
        resolution'' means only a joint resolution the matter after the 
        resolving clause of which is as follows: ``That pursuant to 
        section 6(d)(3) of the Export Administration Act of 1979, the 
        President may impose export controls as specified in the report 
        submitted to the Congress on                 .'', with the 
        blank space being filled with the appropriate date.
            (B) On the day on which a report is submitted to the House 
        of Representatives and the Senate under paragraph (3), a joint 
        resolution on the export controls specified in such report 
        shall be introduced (by request) in the House by the chairman 
        of the Committee on Foreign Affairs, for himself and the 
        ranking minority member of the Committee, or by Members of the 
        House designated by the chairman and ranking minority member; 
        and shall be introduced (by request) in the Senate by the 
        majority leader of the Senate, for himself and the minority 
        leader of the Senate, or by Members of the Senate designated by 
        the majority leader and minority leader of the Senate. If 
        either House is not in session on the day on which such a 
        report is submitted, the joint resolution shall be introduced 
        in that House, as provided in the preceding sentence, on the 
        first day thereafter on which that House is in session.
            (C) All joint resolutions introduced in the House of 
        Representatives shall be referred to the appropriate committee 
        and all joint resolutions introduced in the Senate shall be 
        referred to the Committee on Banking, Housing, and Urban 
        Affairs.
            (D) If the committee of either House to which a joint 
        resolution has been referred has not reported the joint 
        resolution at the end of 30 days after its referral, the 
        committee shall be discharged from further consideration of the 
        resolution or of any other joint resolution introduced on the 
        same matter.
            (E) A joint resolution under this paragraph shall be 
        considered in the Senate in accordance with the provisions of 
        section 601(b)(4) of the International Security Assistance and 
        Arms Export Control Act of 1976 (22 U.S.C. 2151 et seq., Public 
        Law 94-329, June 30, 1976). For the purpose of expediting the 
        consideration and passage of joint resolutions reported or 
        discharged pursuant to the provisions of this paragraph, it 
        shall be in order for the Committee on Rules of the House of 
        Representatives to present for consideration a resolution of 
        the House of Representatives providing procedures for the 
        immediate consideration of a joint resolution under this 
        paragraph which may be similar, if applicable, to the 
        procedures set forth in section 601(b)(4) of the International 
        Security Assistance and Arms Export Control Act of 1976.
            (F) In the case of a joint resolution described in 
        subparagraph (A), if, before the passage by one House of a 
        joint resolution of that House, that House receives a 
        resolution on the same matter from the other House, then--
                    (i) the procedure in the House shall be the same as 
                if no joint resolution has been received from the other 
                House; but
                    (ii) the vote on final passage shall be on the 
                joint resolution of the other House.
            (5) In the computation of the period of 60 days referred to 
        in paragraph (3) and the period of 30 days referred to in 
        subparagraph (D) of paragraph (4), there shall be excluded the 
        days on which either House of Congress is not in session 
        because of an adjournment of more than 3 days to a day certain 
        or because of an adjournment of the Congress sine die.
    (e) Barter Agreements.--
            (1) The exportation pursuant to a barter agreement of any 
        items which may lawfully be exported from the United States, 
        for any items which may lawfully be imported into the United 
        States, may be exempted, in accordance with paragraph (2) of 
        this subsection, from any quantitative limitation on exports 
        (other than any reporting requirement) imposed to carry out the 
        policy set forth in section 3(2)(D) of this Act.
            (2) The Secretary shall grant an exemption under paragraph 
        (1) if the Secretary finds, after consultation with the 
        appropriate department or agency of the United States, that--
                    (A) for the period during which the barter 
                agreement is to be performed--
                            (i) the average annual quantity of the 
                        items to be exported pursuant to the barter 
                        agreement will not be required to satisfy the 
                        average amount of such items estimated to be 
                        required annually by the domestic economy and 
                        will be surplus thereto; and
                            (ii) the average annual quantity of the 
                        items to be imported will be less than the 
                        average amount of such items estimated to be 
                        required annually to supplement domestic 
                        production; and
                    (B) the parties to such barter agreement have 
                demonstrated adequately that they intend, and have the 
                capacity, to perform such barter agreement.
            (3) For purposes of this subsection, the term ``barter 
        agreement'' means any agreement which is made for the exchange, 
        without monetary consideration, of any items produced in the 
        United States for any items produced outside of the United 
        States.
            (4) This subsection shall apply only to barter agreements 
        entered into after September 30, 1979.
    (f) Unprocessed Red Cedar.--No unprocessed western red cedar logs 
(Thuja plicata) harvested from State or Federal lands may be exported 
from the United States.
            (1) Unprocessed western red cedar logs shall not be 
        considered to be an agricultural commodity for purposes of 
        subsection (d) of this section.
            (2) As used in this subsection, the term ``unprocessed 
        western red cedar'' means red cedar timber which has not been 
        processed into--
                    (A) lumber of American Lumber Standards Grades of 
                Number 3 dimension or better, or Pacific Lumber 
                Inspection Bureau Export R-List Grades of Number 3 
                common or better;
                    (B) chips, pulp, and pulp products;
                    (C) veneer and plywood;
                    (D) poles, posts, or pilings cut or treated with 
                preservative for use as such and not intended to be 
                further processed; or
                    (E) shakes and shingles.
            (3) The State of Alaska is exempt from the provisions of 
        this subsection (Public Law No. 96-126, 93 Stat. 954, section 
        308 (1979)).
    (g) Effect of Controls on Existing Contracts.--The export 
restrictions contained in subsection (f) of this section and any export 
controls imposed under this section shall not affect any contract to 
harvest unprocessed western red cedar from State lands which was 
entered into before October 1, 1979, and the performance of which would 
make the red cedar available for export. Any export controls imposed 
under this section on any agricultural commodity (including fats, oils, 
and animal hides and skins) or on any forest product or fishery 
product, shall not affect any contract to export entered into before 
the date on which such controls are imposed. For purposes of this 
subsection, the term ``contract to export'' includes, but is not 
limited to, an export sales agreement and an agreement to invest in an 
enterprise which involves the export of goods or technology.
    (h) Oil Exports for Use by United States Military Facilities.--For 
purposes of subsection (c) of this section, and for purposes of any 
export controls imposed under this Act, shipments of crude oil, refined 
petroleum products, or partially refined petroleum products from the 
United States for use by the Department of Defense or United States-
supported installations or facilities shall not be considered to be 
exports.

SEC. 7. FOREIGN BOYCOTTS.

    (a) Prohibitions and Exceptions.--
            (1) For the purpose of implementing the policies set forth 
        in subparagraph (A) and (B) of paragraph (14) of section 3 of 
        this Act, the President shall issue regulations prohibiting any 
        United States person, with respect to his or her activities in 
        the interstate or foreign commerce of the United States, from 
        taking or knowingly agreeing to take any of the following 
        actions with the intent to comply with, further, or support any 
        boycott fostered or imposed by a foreign country against a 
        country which is friendly to the United States and which is not 
        itself the object of any form of boycott pursuant to United 
        States law or regulation:
                    (A) Refusing, or requiring any other person to 
                refuse, to do business with or in the boycotted 
                country, with any business concern organized under the 
                laws of the boycotted country, with any national or 
                resident of the boycotted country, or with any other 
                person, pursuant to an agreement with, a requirement 
                of, or a request from or on behalf of the boycotting 
                country. The mere absence of a business relationship 
                with or in the boycotted country with any business 
                concern organized under the laws of the boycotted 
                country, with any national or resident of the boycotted 
                country, or with any other person, does not indicate 
                the existence of the intent required to establish a 
                violation of regulations issued to carry out this 
                subparagraph.
                    (B) Refusing, or requiring any other person to 
                refuse, to employ or otherwise discriminating against 
                any United States person on the basis of race, 
                religion, sex, or national origin of that person or of 
                any owner, officer, director, or employee of such 
                person.
                    (C) Furnishing information with respect to the 
                race, religion, sex, or national origin of any United 
                States person or of any owner, officer, director, or 
                employee of such person.
                    (D) Furnishing information about whether any person 
                has, has had, or proposes to have any business 
                relationship (including a relationship by way of sale, 
                purchase, legal, or commercial representation, shipping 
                or other transport, insurance, investment, or supply) 
                with or in the boycotted country, with any business 
                concern organized under the laws of the boycotted 
                country, with any national or resident of the boycotted 
                country, or with any other person known or believed to 
                be restricted from having any business relationship 
                with or in the boycotted country. Nothing in this 
                paragraph shall prohibit the furnishing of normal 
                business information in a commercial context as defined 
                by the Secretary.
                    (E) Furnishing information about whether any person 
                is a member of, has made contribution to, or is 
                otherwise associated with or involved in the activities 
                of any charitable or fraternal organization which 
                supports the boycotted country.
                    (F) Paying, honoring, confirming, or otherwise 
                implementing a letter of credit which contains any 
                condition or requirement compliance with which is 
                prohibited by regulations issued pursuant to this 
                paragraph, and no United States person shall, as a 
                result of the application of this paragraph, be 
                obligated to pay or otherwise honor or implement such 
                letter of credit.
            (2) Regulations issued pursuant to paragraph (1) shall 
        provide exceptions for--
                    (A) complying or agreeing to comply with 
                requirements (i) prohibiting the import of items or 
                services from the boycotted country or items produced 
                or services provided by any business concern organized 
                under the laws of the boycotted country or by nationals 
                or residents of the boycotted country, or (ii) 
                prohibiting the shipment of items to the boycotted 
                country on a carrier of the boycotted country, or by a 
                route other than that prescribed by the boycotting 
                country or the recipient of the shipment;
                    (B) complying or agreeing to comply with import and 
                shipping document requirements with respect to the 
                country of origin, the name of the carrier and route of 
                shipment, the name of the supplier of the shipment or 
                the name of the provider of other services, except that 
                no information knowingly furnished or conveyed in 
                response to such requirements may be stated in 
                negative, blacklisting, or similar exclusionary terms, 
                other than with respect to carriers or route of 
                shipment as may be permitted by such regulations in 
                order to comply with precautionary requirements 
                protecting against war risks and confiscation;
                    (C) complying or agreeing to comply in the normal 
                course of business with the unilateral and specific 
                selection by a boycotting country, or national or 
                resident thereof, of carriers, insurers, suppliers of 
                services to be performed within the boycotting country 
                or specific items which, in the normal course of 
                business, are identifiable by source when imported into 
                the boycotting country;
                    (D) complying or agreeing to comply with export 
                requirements of the boycotting country relating to 
                shipments or transshipment of exports to the boycotted 
                country, to any business concern of or organized under 
                the laws of the boycotted country, or to any national 
                or resident of the boycotted country;
                    (E) compliance by an individual or agreement by an 
                individual to comply with the immigration or passport 
                requirements of any country with respect to such 
                individual or any member of such individual's family or 
                with requests for information regarding requirements of 
                employment of such individual within the boycotting 
                country; and
                    (F) compliance by a United States person resident 
                in a foreign country or agreement by such person to 
                comply with the laws of the country with respect to his 
                or her activities exclusively therein, and such 
                regulations may contain exceptions for such resident 
                complying with the laws or regulations of the foreign 
                country governing imports into such country of 
                trademarked, trade named, or similarly specifically 
                identifiable products, or components of products for 
                his or her own use, including the performance of 
                contractual services within that country, as may be 
                defined by such regulations.
            (3) Regulations issued pursuant to paragraphs (2)(C) and 
        (2)(F) shall not provide exceptions from paragraphs (1)(B) and 
        (1)(C).
            (4) Nothing in this subsection may be construed to 
        supersede or limit the operation of the antitrust or civil 
        rights laws of the United States.
            (5) This section shall apply to any transaction or activity 
        undertaken, by or through a United States person or any other 
        person, with intent to evade the provisions of this section as 
        implemented by the regulations issued pursuant to this 
        subsection, and such regulations shall expressly provide that 
        the exceptions set forth in paragraph (2) shall not permit 
        activities or agreements (expressed or implied by a course of 
        conduct, including a pattern of responses) otherwise 
        prohibited, which are not within the intent of such exceptions.
    (b) Regulations.--
            (1) In addition to the regulations issued pursuant to 
        subsection (a) of this section, regulations issued under this 
        subsection of this Act shall implement the policies set forth 
        in section 3(14).
            (2) Such regulations shall require that any United States 
        person receiving a request for the furnishing of information, 
        the entering into or implementing of agreements, or the taking 
        of any other action referred to in section 3(14) shall report 
        that fact to the Secretary, together with such other 
        information concerning such request as the Secretary may 
        require for such action as the Secretary considers appropriate 
        for carrying out the policies of that section. Such person 
        shall also report to the Secretary whether such person intends 
        to comply and whether such person has complied with such 
        request. Any report filed pursuant to this paragraph shall be 
        made available promptly for public inspection and copying, 
        except that information regarding the quantity, description, 
        and value of any items to which such report relates may be kept 
        confidential if the Secretary determines that disclosure 
        thereof would place the United States person involved at a 
        competitive disadvantage. The Secretary shall periodically 
        transmit summaries of the information contained in such reports 
        to the Secretary of State for such action as the Secretary of 
        State, in consultation with the Secretary, considers 
        appropriate for carrying out the policies set forth in section 
        3(14) of this Act.
    (c) Preemption.--The provisions of this section and the regulations 
issued pursuant thereto shall preempt any law, rule, or regulation of 
any of the several States or the District of Columbia, or any of the 
territories or possessions of the United States, or of any governmental 
subdivision thereof, which law, rule, or regulation pertains to 
participation in, compliance with, implementation of, or the furnishing 
of information regarding restrictive trade practices or boycotts 
fostered or imposed by foreign countries against other countries.

SEC. 8. PROCEDURES FOR PROCESSING EXPORT LICENSE APPLICATIONS; OTHER 
              INQUIRIES.

    (a) Primary Responsibility of the Secretary.--
            (1) All export license applications required under this Act 
        shall be submitted by the applicant to the Secretary. All 
        determinations on any such applications shall be made by the 
        Secretary, subject to the procedures provided in this section.
            (2) To the extent necessary, the Secretary shall seek 
        information and recommendations from the Government departments 
        and agencies concerned with factors having an important bearing 
        on exports administered under this Act. Such departments and 
        agencies shall cooperate fully and promptly in rendering 
        information and recommendations.
            (3) In regulations that implement this section, the 
        Secretary shall describe the procedures required by this 
        section, the responsibilities of the Secretary and of other 
        departments and agencies in reviewing applications, the rights 
        of the applicant, and the extent of any multilateral review of 
        a given license application.
            (4) In calculating the processing times set forth in this 
        section, the Secretary shall use calendar days; provided that 
        if the final day for a required action falls on a weekend or 
        holiday, that action shall be taken no later than the following 
        business day.
            (5) In reviewing applications for validated export 
        licenses, the Secretary may in each case consider the 
        reliability of the parties to the proposed export. In making 
        such an evaluation, the Secretary may consider all sources of 
        information, including intelligence information. However, the 
        consideration of intelligence information in connection with 
        the evaluation of the reliability of parties shall not 
        authorize the direct or indirect disclosure of classified 
        information or sources and methods of gathering classified 
        information.
    (b) Initial Screening.--
            (1) Upon receipt of any export license application, the 
        Secretary shall include receipt and status information 
        regarding the application in the records of the Department.
            (2) Within 9 days of receipt of any license application, 
        the Secretary shall--
                    (A) contact the applicant if the application is 
                improperly completed or if additional information is 
                required, and hold the application for a reasonable 
                time while the applicant provides the necessary 
                corrections or information. Such time shall not be 
                counted in calculating the time periods prescribed in 
                this section;
                    (B) refer the application and all necessary 
                recommendations and analyses by the Secretary to all 
                other agencies, when such referral is requested, and 
                forward to the agencies any relevant information 
                submitted by the applicant that could not be reduced to 
                electronic form; and
                    (C) assure the stated classification on the 
                application is correct; return the application if a 
                validated license is not required; and, if referral to 
                other agencies is not requested, grant the application 
                or notify the applicant of the Secretary's intent to 
                deny the application.
    (c) Action by Other Departments and Agencies.--
            (1) At the direction of the President, the Secretary shall 
        refer license applications to appropriate departments and 
        agencies to make recommendations and provide information to the 
        Secretary.
            (2) Reviewing agencies shall organize their resources and 
        units to plan for the prompt and expeditious internal 
        dissemination of export license applications, if necessary, so 
        as to avoid delays in responding to the Secretary's request for 
        information and recommendations.
            (3) Each referral agency or department shall specify to the 
        Secretary any information that is not in the application that 
        would be required to make a determination, and the Secretary 
        shall promptly request such information from the applicant. The 
        time that may elapse between the date the information is 
        requested from the applicant and the date the information is 
        received by the Secretary shall not be counted in calculating 
        the time periods prescribed in this section.
            (4) Within 30 days of receipt of a referral, the agency or 
        department shall provide the Secretary with a recommendation 
        either to approve the license or to deny the license. As 
        appropriate, such recommendation shall be with the benefit of 
        consultation and discussions in interagency groups established 
        to provide expertise and coordinate interagency consultation. A 
        recommendation that the Secretary deny a validated license 
        shall include a statement of reasons that are consistent with 
        the provisions of this Act, and shall cite both the statutory 
        and the regulatory basis for the recommendation to deny. A 
        department or agency that fails to provide a recommendation 
        within thirty days with a statement of reasons and the 
        statutory and regulatory basis shall be deemed to have no 
        objection to the decision of the Secretary.
            (5) An interagency committee shall be established by and 
        the chairman selected by the Secretary to review initially all 
        license applications on which the reviewing agencies are not in 
        agreement. The chairman of such committee shall consider the 
        recommendations of the reviewing agencies and inform them of 
        his or her decision. Appeals from such decisions may be made in 
        writing by an official of such department or agency who is 
        appointed by the President by and with the advice and consent 
        of the Senate, or an officer properly acting in such capacity, 
        consistent with procedures established by the President in 
        accordance with subsection (d).
            (6) Upon receiving all comments from other departments and 
        agencies regarding an application upon which there is no 
        disagreement, or 49 days following receipt of a license 
        application upon which there has been disagreement, whichever 
        comes first, the Secretary shall either--
                    (A) approve the application and issue the license; 
                or
                    (B) notify the applicant of the intent to deny the 
                license; or
                    (C) notify the applicant the application has been 
                referred to a process established by the President to 
                resolve matters in dispute.
    (d) Interagency Resolution.--The President may establish a process 
for the review and determination of export license applications as to 
which a reviewing agency has objected pursuant to subsection (c). Any 
such process shall (1) be chaired by the Secretary or his designee; (2) 
insure that license applications are resolved or referred to the 
President no later than 90 days from the date of filing of the license 
application; and (3) provide that a department or agency that fails to 
take a timely position shall be deemed to have no objection to the 
pending decision.
    (e) Actions by the Secretary.--
            (1) When no referral to other departments or agencies is 
        required, the Secretary shall issue a license or notify the 
        applicant of the intent to deny within nine days of receipt of 
        the application.
            (2) In cases where the Secretary has determined that an 
        application should be denied, the applicant shall be informed 
        in writing of--
                    (A) the determination to deny;
                    (B) the statutory and regulatory basis for the 
                proposed denial;
                    (C) what, if any, modifications in or restrictions 
                on the items for which the license was sought would 
                allow such export to be compatible with export controls 
                imposed under this Act, and which officer or employee 
                of the Department of Commerce would be in a position to 
                discuss modifications or restrictions with the 
                applicant;
                    (D) to the extent consistent with the national 
                security and foreign policy of the United States, the 
                specific considerations that led to the determination 
                to deny the application; and
                    (E) the availability of appeal procedures.
        The Secretary shall allow the applicant 20 days to respond to 
        the determination before the license application is denied.
            (3) The Secretary and the applicant may, at any time, agree 
        mutually to suspend the time periods prescribed by this section 
        in order to negotiate modifications to the application and 
        obtain agreement to such modifications from the foreign parties 
        to the transaction.
    (f) Multilateral Controls.--When an application recommended for 
approval must be submitted to a multilateral review process, pursuant 
to a multilateral regime, formal or informal, to which the United 
States is a party, the application shall be referred to the 
multilateral regime within 5 days of the decision to approve. Any such 
application shall be considered in accordance with the review 
procedures established by the relevant multilateral export control 
regime, and the license shall be issued or a notice of intent to deny 
issued within 5 days of receipt of a decision by the multilateral 
regime.
    (g) Exceptions From Required Time Periods.--All license 
applications shall be resolved or referred to the President no later 
than 90 days from the date of filing of the license application. The 
following actions related to processing an application shall not be 
counted in calculating the time periods prescribed in this section:
            (1) Agreement of the applicant.--Delays in processing 
        required by unusually complex technical review or by need to 
        complete a high-level policy review, when the Secretary and the 
        applicant mutually agree to the delay.
            (2) Prelicense checks.--Prelicense checks through 
        government channels that may be required to establish the 
        identity and reliability of the recipient of items controlled 
        under this Act, provided--
                    (A) the need for such prelicense check is 
                established by the Secretary, or by another department 
                or agency, if the request for prelicense check is made 
                by such department or agency;
                    (B) the request for such prelicense check is sent 
                by the Secretary within 5 days for the determination 
                that the prelicense check is required; and
                    (C) the analysis of the response to the request for 
                prelicense check is completed by the Secretary within 5 
                days.
            (3) Requests for government-to-government assurances.--
        Requests for government-to-government assurances of suitable 
        end use of items approved for export, when failure to obtain 
        such assurances would result in rejection of the application, 
        provided that the request for such assurances is sent to the 
        Secretary of State within 5 days of the determination that the 
        assurances are required, provided the Secretary of State 
        initiates the request of the relevant government within 10 days 
        thereafter, and provided the license is issued within 5 days of 
        receipt by the Secretary of the requested assurances.
Whenever such prelicense checks and assurances are not requested within 
the time periods set forth above, they must be accomplished within the 
time periods established by this section.
            (4) Multilateral review.--Multilateral review of a license 
        application as provided for in subsection (f) so long as such 
        multilateral review is required by the relevant multilateral 
        regime.
            (5) Congressional notification.--Such time as required for 
        mandatory Congressional notifications under this Act.
    (h) Appeals.--
            (1) The Secretary shall establish appropriate procedures 
        for any applicant to appeal to the Secretary the denial or an 
        export license application or other administrative action.
            (2) In any case in which any action prescribed in this 
        section is not taken on the license application within the time 
        periods established by this section (except in the case of a 
        time period extended under subsection (g)(4) of which the 
        applicant is notified), the applicant may file a petition with 
        the Secretary requesting compliance with the requirements of 
        this section. When such petition is filed, the Secretary shall 
        take immediate steps to correct the situation giving rise to 
        the petition and shall immediately notify the applicant of such 
        steps.
            (3) If, within 20 days after a petition is filed under 
        paragraph (2), the processing of the application has not been 
        brought into conformity with the requirements of this section, 
        or the application has been brought into conformity with such 
        requirements but the Secretary has not so notified the 
        applicant, the applicant may bring an action in an appropriate 
        United States district court for an order requiring compliance 
        with the temporal requirements of this section. The United 
        States district courts shall have jurisdiction to provide such 
        relief, as appropriate.
    (i) Classification Requests and Other Inquiries.--
            (1) In any case in which the Secretary receives a written 
        request asking for the proper classification of an item on the 
        Control List, the Secretary shall, within 14 days after receipt 
        of the request, inform the person making the request of the 
        proper classification.
            (2) In any case in which the Secretary receives a written 
        request for information about the applicability of export 
        license requirements under this Act to a proposed export 
        transaction or series of transactions, the Secretary shall, 
        within 30 days after the receipt of the request, reply with 
        that information to the person making the request.

SEC. 9. VIOLATIONS.

    (a) Criminal Penalties.--
            (1) Violations by an individual.--Except as provided in 
        paragraph (3) below, any individual who knowingly violates or 
        conspires to or attempts to violate any provision of this Act 
        or any regulation, license, or order issued thereunder shall be 
        fined not more than 5 times the value of the exports involved 
        or $500,000 per violation, whichever is greater, or imprisoned 
        not more than 10 years, or both.
            (2) Violation by a person other than an individual.--Except 
        as provided in paragraph (3) below, any person other than an 
        individual who knowingly violates or conspires to or attempts 
        to violate any provision of this Act or any regulation, license 
        or order issued thereunder shall be fined not more than 10 
        times the value of the exports involved or $1,000,000 per 
        violation, whichever is greater.
            (3) Antiboycott violations.--Any individual who knowingly 
        violates or conspires to or attempts to violate any provision 
        of section 7 of this Act concerning foreign boycotts or any 
        regulation or order issued thereunder shall be fined not more 
        than 5 times the value of the exports involved or $250,000 per 
        violation, whichever is greater, or imprisoned not more than 10 
        years, or both. Any person other than an individual who 
        knowingly violates or conspires to or attempts to violate any 
        provision of section 7 of this Act or any regulation or order 
        issued thereunder shall be fined not more than 5 times the 
        value of the exports involved or $500,000 per violation, 
        whichever is greater.
    (b) Forfeiture of Property Interest and Proceeds.--
            (1) Any person who is convicted under subsection (a) (1) or 
        (2) shall, in addition to any other penalty, forfeit to the 
        United States--
                    (A) any of that person's interest in, security of, 
                claim against, or property or contractual rights of any 
                kind in the goods or tangible items that were the 
                subject of the violation;
                    (B) any of that person's interest in, security of, 
                claim against, or property or contractual rights of any 
                kind in tangible property that was used in the export 
                or attempt to export that was the subject of the 
                violation; and
                    (C) any of that person's property constituting, or 
                derived from, any proceeds obtained directly or 
                indirectly as a result of the violation.
            (2) The procedures in any forfeiture under this subsection, 
        and the duties and authority of the courts of the United States 
        and the Attorney General with respect to any forfeiture action 
        under this subsection or with respect to any property that may 
        be subject to forfeiture under this subsection, shall be 
        governed by the provisions of chapter 46 of title 18, United 
        States Code.
    (c) Civil Penalties; Administrative Sanctions.--
            (1) The Secretary may impose a civil penalty not to exceed 
        $250,000 for each violation of this Act or any regulation, 
        license or order issued under this Act, either in addition to 
        or in lieu of any other liability or penalty which may be 
        imposed, except that the civil penalty for each such violation 
        involving section 7 of this Act concerning foreign boycotts may 
        not exceed $50,000.
            (2) The Secretary may deny the export privileges of any 
        person, including suspending or revoking the authority of any 
        person to export or receive any item subject to this Act, for 
        any violation of the provisions of this Act or any regulation, 
        license or order issued under this Act.
    (d) Procedures Relating to Civil Penalties and Sanctions.--
            (1) Any administrative sanction imposed under subsection 
        (c) above may be imposed only after notice and opportunity for 
        an agency hearing on the record in accordance with sections 554 
        through 557 of title 5, United States Code. The imposition of 
        any such administrative sanction shall be subject to judicial 
        review in accordance with sections 701 through 706 of title 5, 
        United States Code.
            (2) Any charging letter or other document initiating 
        administrative proceedings for the imposition of sanctions for 
        violations of the regulations issued pursuant to section 7(a) 
        of this Act shall be made available for public inspection and 
        copying.
    (e) Payment of Civil Penalties.--The payment of any civil penalty 
imposed pursuant to subsection (c) may be made a condition, for a 
period not exceeding 1 year after the penalty has become due but has 
not been paid, to the granting, restoration, or continuing validity of 
any export license, permission, or privilege granted or to be granted 
to the person upon whom such penalty is imposed. In addition, the 
payment of any civil penalty imposed under subsection (c) may be 
deferred or suspended in whole or in part for a period of time no 
longer than any probation period (which may exceed 1 year) that may be 
imposed upon such person. Such deferral or suspension shall not operate 
as a bar to the collection of the penalty in the event that the 
conditions of the suspension, deferral, or probation are not fulfilled.
    (f) Refunds.--Any amount paid in satisfaction of any civil penalty 
imposed pursuant to subsection (c) shall be covered into the Treasury 
as a miscellaneous receipt. The head of the department or agency 
concerned may, in his discretion, refund any such civil penalty imposed 
pursuant to subsection (c), within 2 years after payment, on the ground 
of a material error of fact or law in the imposition of the penalty. 
Notwithstanding section 1346(a) of title 28, United States Code, no 
action for the refund of any such penalty may be maintained in any 
court.
    (g) Collection--If any person fails to pay a civil penalty imposed 
pursuant to subsection (c) of this Act, the Secretary may ask the 
Attorney General to bring a civil action in an appropriate district 
court to recover the amount imposed (plus interest at currently 
prevailing rates from the date of the final order). Any such action 
must be commenced within 5 years after the order imposing the civil 
penalty becomes final. In such an action, the validity, amount, and 
appropriateness of such penalty shall not be subject to review.
    (h) Prior Convictions.--
            (1) At the discretion of the Secretary, export privileges 
        under this Act may be denied for a period of up to 10 years 
        from the date of conviction to any person convicted of a 
        violation of this Act or its predecessor statute, the Export 
        Administration Act of 1979; the International Emergency 
        Economic Powers Act, title 50, United States Code, sections 
        1701-1706; sections 793, 794, 798, of title 18, United States 
        Code; section 4(b) of the Internal Security Act of 1950, title 
        50, United States Code, section 783(b); section 16 of the 
        Trading with the Enemy Act, title 50, United States Code 
        appendix, section 16; section 38 of the Arms Export Control 
        Act, title 22, United States Code, section 2778; any 
        regulation, license, or order issued under any of the above 
        statutes; or section 371 or 1001 of title 18, United States 
        Code, if the conviction arises out of an activity subject to 1 
        or more of the statutes enumerated above. The Secretary may 
        also revoke any export license under this Act in which such 
        person had an interest at the time of the conviction.
            (2) The Secretary may exercise the authority under 
        paragraph (1) with respect to any person related, through 
        affiliation, ownership, control, or position of responsibility, 
        to any person convicted of any violation of a law set forth in 
        paragraph (1), upon a showing of such relationship with the 
        convicted person, after providing notice and opportunity for 
        hearing.
    (i) Statute of Limitations.--Any case in which a civil penalty or 
other administrative sanction (other than a temporary denial order) is 
sought under section 9(c) of this Act must be instituted within 5 years 
of the date from the alleged violation, except that, in any case in 
which a criminal indictment alleging a violation of this Act is 
returned within the time limits prescribed by law for the institution 
of such action, the statute of limitations for bringing a proceeding to 
impose a civil penalty or other administrative sanction under this Act 
shall, upon the return of the criminal indictment, be tolled against 
all persons named as a defendant. The tolling of the statute of 
limitations shall continue for a period of not more than 6 months from 
the date a conviction is entered or the indictment is dismissed.
    (j) Imposition of Temporary Denial Orders.--
            (1) In any case in which there is reasonable cause to 
        believe that a person is engaged in or is about to engage in 
        any act or practices which constitutes or would constitute a 
        violation of the Act, or any regulation, order, or license 
        issued under the Act, or in any case in which a criminal 
        indictment has been returned against a person alleging a 
        violation of the Act or any of the statutes listed in section 
        9(h) of the Act, the Secretary may, without a hearing, issue an 
        offer temporarily denying that person's United States export 
        privileges (hereinafter in this subsection referred to as a 
        ``temporary denial order''). A temporary denial order may be 
        effective for no longer than 180 days, but may be renewed by 
        the Secretary, following notice and an opportunity for a 
        hearing, for additional 180-day periods.
            (2) The person or persons subject to the issuance or 
        renewal of a temporary denial order may appeal the issuance or 
        renewal of the temporary denial order, supported by briefs and 
        other material, to an administrative law judge who shall, 
        within 15 working days after the appeal is filed, issue a 
        decision affirming, modifying, or vacating the temporary denial 
        order. The temporary denial order shall be affirmed if it is 
        shown that there is reasonable cause to believe that the person 
        subject to the order is engaged in or is about to engage in any 
        act or practice which constitutes or would constitute a 
        violation of the Act, or any regulation, order, or license 
        issued under the Act, or if it is shown that a criminal 
        indictment has been returned against the person subject to the 
        order alleging a violation of the Act or any of the statutes 
        listed in section 9(h) of the Act. The decision of the 
        administrative law judge shall be final unless, within 10 
        working days from the date of the administrative law judge's 
        decision, an appeal is filed with the Secretary. On appeal, the 
        Secretary shall either affirm, modify, reverse, or vacate the 
        decision of the administrative law judge by written order 
        within 10 working days after receiving the appeal. The written 
        order of the Secretary shall be final and is not subject to 
        judicial review except as provided in paragraph (3). The 
        materials submitted to the administrative law judge and the 
        Secretary shall constitute the administrative record for 
        purposes of review by the court.
            (3) An order of the Secretary affirming, in whole or in 
        part, the issuance or renewal of a temporary denial order may, 
        within 15 days after the order is issued, be appealed by a 
        person subject to the order to the United States Court of 
        Appeals for the District of Columbia Circuit, which shall have 
        jurisdiction of the appeal. The court may review only those 
        issues necessary to determine whether the issuance of the 
        temporary denial order was based on reasonable cause to believe 
        that the person subject to the order was engaged in or was 
        about to engage in any act or practice which constitutes or 
        would constitute a violation of the Act, or any regulation, 
        order or license issued under the Act, or if a criminal 
        indictment has been returned against the person subject to the 
        order alleging a violation of the Act or any of the statutes 
        listed in section 9(h) of the Act. The court shall vacate the 
        Secretary's order if the court finds that the Secretary's order 
        is arbitrary, capricious, an abuse of discretion, or otherwise 
        not in accordance with law.
    (k) Violations Defined by Regulation.--Nothing in this section 
shall limit the power of the Secretary to define by regulation 
violations under this Act.
    (l) Other Authorities.--Nothing in subsection (c), (e), (f), (g), 
or (i) limits--
            (1) the availability of other administrative or judicial 
        remedies with respect to violations of this Act, or any 
        regulation, order, or license issued under this Act;
            (2) the authority to compromise and settle administrative 
        proceedings brought with respect to violations of this Act, or 
        any regulation, order, or license issued under this Act; or
            (3) the authority to compromise, remit, or mitigate 
        seizures and forfeitures pursuant to section 1(b) of title VI 
        of the Act of June 15, 1917, title 22, United States Code, 
        section 401(b).

SEC. 10. ENFORCEMENT.

    (a) General Authority and Designation.--
            (1) The Secretary, in consultation with the Secretary of 
        Treasury and the heads of other appropriate departments and 
        agencies, shall be responsible for providing policy guidance on 
        the enforcement of this Act.
            (2) To the extent necessary or appropriate to the 
        enforcement of this Act or to the imposition of any penalty, 
        forfeiture, or liability arising under the Export 
        Administration Act of 1979, as amended, officers or employees 
        of the Department of Commerce designated by the Secretary and 
        officers and employees of the United States Customs Service 
        designated by the Commissioner may exercise the enforcement 
        authorities described in paragraph (3). In carrying out these 
        enforcement authorities--
                    (A) the Commissioner of Customs, and employees of 
                the United States Customs Service designated by the 
                Commissioner, may make investigations within or outside 
                the United States and at those ports of entry or exit 
                from the United States where officers of the United 
                States Customs Service are authorized by law to carry 
                out such enforcement responsibilities. Subject to 
                paragraph (3), the United States Customs Service is 
                authorized in the enforcement of this Act, to search, 
                detain (after search), and seize goods or technology at 
                those ports of entry or exit from the United States 
                where officers of the Customs Service are authorized by 
                law to conduct such searches, detentions, and seizures, 
                and at those places outside the United States where the 
                Customs Service, pursuant to agreements or other 
                arrangements with other countries, is authorized to 
                perform enforcement activities;
                    (B) the Secretary, and officers and employees of 
                the Department of Commerce designated by the Secretary, 
                may make investigations within the United States, and 
                shall conduct, outside the United States, pre-license 
                and post-shipment verifications of items licensed for 
                export and investigations in the enforcement of section 
                7 of this Act. The Secretary, and officers and 
                employees of the Department of Commerce designated by 
                the Secretary, are authorized to search, detain (after 
                search), and seize items at those places within the 
                United States other than those ports and borders 
                specified in paragraph (2)(A) above. The search, 
                detention (after search), or seizure of items at those 
                ports and borders specified in paragraph (2)(A) may 
                only be conducted by officers and employees of the 
                Department of Commerce with the concurrence of the 
                Commissioner of Customs or a person designated by the 
                Commissioner; and
                    (C) the Secretary and the Commissioner of Customs 
                may enter into agreements and arrangements for the 
                enforcement of this Act, including foreign 
                investigations and information exchange.
            (3) Any officer or employee designated in accordance with 
        paragraph (2) may do the following in carrying out the 
        enforcement authority under this Act, except that the 
        authorities enumerated in subparagraphs (F) and (G) below may 
        be carried out only by officers and employees of the United 
        States Customs Service designated by the Commissioner:
                    (A) Make investigations of, obtain information 
                from, make inspection of any books, records, or 
                reports, as well as any writings required to be kept by 
                the Secretary, premises, or property of, and take the 
                sworn testimony of, any person.
                    (B) Administer oaths or affirmations, and by 
                subpoena require any person to appear and testify or to 
                appear and produce books, records, and other writings, 
                or both. In the case of contumacy by, or refusal to 
                obey a subpoena issued to, any such person, a district 
                court of the United States, after notice to any such 
                person and hearing, shall have jurisdiction to issue an 
                order requiring such person to appear and give 
                testimony or to appear and produce books, records, and 
                other writings, or both, and any failure to obey such 
                order of the court may be punished by such court as a 
                contempt thereof.
                    (C) Execute any warrant or other process issued by 
                a court or officer of competent jurisdiction with 
                respect to the enforcement of the provisions of this 
                Act.
                    (D) Make arrests without warrant for any violation 
                of this Act committed in his or her presence or view, 
                or if the officer or employee has probable cause to 
                believe that the person to be arrested has committed, 
                is committing, or is about to commit such a violation.
                    (E) Carry firearms.
                    (F) Stop, search, and examine a vehicle, vessel, 
                aircraft, or person on which or whom the officer or 
                employee has reasonable cause to suspect there is any 
                item that has been, is being, or is about to be 
                exported from or transited through the United States in 
                violation of this Act.
                    (G) Detain and search any package or container in 
                which the officer or employee has reasonable cause to 
                suspect there is any item that has been, is being, or 
                is about to be exported from or transited through the 
                United States in violation of this Act.
                    (H) Detain (after search) or seize any item, for 
                purposes of securing for trial or forfeiture to the 
                United States, on or about such vehicle, vessel, 
                aircraft, or person, or in such package or container, 
                if the officer or employee has probable cause to 
                believe the item has been, is being, or is about to be 
                exported from or transited through the United States in 
                violation of this Act.
                    (I) The authorities conferred by this section are 
                in addition to any authorities conferred under other 
                laws.
    (b) Forfeiture.--All goods or tangible items lawfully seized under 
subsection (a) of this section by designated officers or employees 
shall be forfeited to the United States. Those provisions of law 
relating to--
            (1) the seizure, summary and judicial forfeiture, and 
        condemnation of property for violations of the customs laws;
            (2) the disposition of such property or the proceeds from 
        the sale thereof;
            (3) the remission or mitigation of such forfeitures; and
            (4) the compromise of claims;

shall apply to seizures and forfeitures incurred, or alleged to have 
been incurred, under the provisions of this subsection, insofar as 
applicable and not inconsistent with this Act, except that such duties 
as are imposed upon the customs officer or any other person with 
respect to the seizure and forfeiture of property under the customs 
laws may be performed with respect to seizures and forfeitures of 
property under this subparagraph by the Secretary or such officers or 
employees of the Department of Commerce as may be authorized or 
designated for that purpose by the Secretary, or, upon the request of 
the Secretary, by any other agency that has authority to manage and 
dispose of seized property.
    (c) Undercover Investigative Operations.--
            (1) With respect to any undercover investigative operation 
        conducted by the Office of Export Enforcement of the Department 
        of Commerce (hereinafter in this subsection referred to as 
        ``OEE'') necessary for the detection and prosecution of 
        violations of this Act--
                    (A) funds made available for export enforcement 
                under this Act may be used to purchase property, 
                buildings, and other facilities, and to lease space 
                within the United States, without regard to sections 
                1341 and 3324 of title 31, United States Code, the 
                third undesignated paragraph under the heading 
                ``miscellaneous'' of the Act of March 3, 1877, title 
                40, United States Code, section 34, sections 3732(a) 
                and 3741 of the Revised Statutes of the United States, 
                title 41, United States Code, sections 11(a) and 22, 
                and subsections (a) and (c) of section 304, and section 
                305, of the Federal Property and Administrative 
                Services act of 1949 and title 41, United States Code, 
                sections 254 (a) and (c) and 255;
                    (B) funds made available for export enforcement 
                under this Act may be used to establish or to acquire 
                proprietary corporations or business entities as part 
                of an OEE undercover operation, and to operate such 
                corporations or business entities on a commercial 
                basis, without regard to section 9102 of title 31, 
                United States Code;
                    (C) funds made available for export enforcement 
                under this Act and the proceeds from OEE undercover 
                operations may be deposited in banks or other financial 
                institutions without regard to the provisions of 
                section 648 of title 18, United States Code, and 
                section 3302 of title 31, United States Code; and
                    (D) the proceeds from OEE undercover operations may 
                be used to offset necessary and reasonable expenses 
                incurred in such operations without regard to the 
                provisions of section 3302 of title 31, United States 
                Code; if the Director of OEE (or an officer or employee 
                designated by the Director) certifies, in writing, that 
                any action authorized by clause (A), (B), (C), or (D) 
                is necessary for the conduct of the undercover 
                operation.
            (2) If a corporation or business entity established or 
        acquired as part of an OEE undercover operation with a net 
        value of more than $50,000 is to be liquidated, sold, or 
        otherwise disposed of, OEE shall report the circumstances to 
        the Secretary and the Comptroller General, as much in advance 
        of such disposition as the Director of OEE or his or her 
        designee determines is practicable. The proceeds of the 
        liquidation, sale, or other disposition, after obligations 
        incurred by the corporation or business enterprise are met, 
        shall be deposited in the Treasury of the United States as 
        miscellaneous receipts.
            (3) As soon as the proceeds from an undercover 
        investigative operation with respect to which an action is 
        authorized and carried out under this paragraph are no longer 
        necessary for the conduct of such operation, such proceeds or 
        the balance of such proceeds remaining at the time shall be 
        deposited into the Treasury of the United States as 
        miscellaneous receipts.
            (4) Audit and report.--
                    (A) The Director of OEE shall conduct a detailed 
                financial audit of each undercover investigative 
                operation which is closed and shall submit the results 
                of the audit in writing to the Secretary. Not later 
                than 180 days after an OEE undercover operation is 
                closed, the Secretary shall submit to the Congress a 
                report on the results of the audit.
                    (B) The Secretary shall submit a report annually to 
                the Congress, which report may be included in the 
                annual report under section 13, specifying the 
                following information:
                            (i) The number of OEE undercover 
                        investigative operations pending as of the end 
                        of the period for which such report is 
                        submitted.
                            (ii) The number of OEE undercover 
                        investigative operations commenced in the 1-
                        year period preceding the period for which such 
                        report is submitted.
                            (iii) The number of OEE undercover 
                        investigative operations closed in the 1-year 
                        period preceding the period for which such 
                        report is submitted and, with respect to each 
                        such closed undercover operation, the results 
                        obtained and any civil claims made with respect 
                        thereto.
            (5) For purposes of subparagraph (4)--
                    (A) the term ``closed'' refers to the earliest 
                point in time at which all criminal proceedings (other 
                than appeals) are concluded, or covert activities are 
                concluded, whichever occurs later; and
                    (B) the terms ``undercover investigative 
                operation'' and ``undercover operation'' mean any 
                undercover investigative operation conducted by OEE--
                            (i) in which the gross receipts (excluding 
                        interest earned) exceed $25,000, or 
                        expenditures (other than expenditures for 
                        salaries of employees) exceed $75,000; and
                            (ii) which is exempt from section 3302 or 
                        9102 of title 31, United States Code, except 
                        that clauses (i) and (ii) shall not apply with 
                        respect to the report to the Congress required 
                        by paragraph (B) of subparagraph (4); and
                            (iii) the term ``employees'' means 
                        employees, as defined in section 2105 of title 
                        5, United States Code, of the Department of 
                        Commerce.
    (d) Reference to Enforcement.--For purposes of this section, a 
reference to the enforcement of this Act or to a violation of this Act 
includes a reference to the enforcement or a violation of any 
regulation, license, or order issued under this Act.

SEC. 11. AUTHORITY AND PROCEDURES.

    (a) Under Secretary of Commerce.--The President shall appoint, by 
and with the advice and consent of the Senate, an Under Secretary of 
Commerce for Export Administration who shall carry out all functions of 
the Secretary under this Act, under other statutes that relate to 
national security, and under such other statutes as the Secretary may 
delegate. The President shall appoint, by and with the advice and 
consent of the Senate, two Assistant Secretaries of Commerce to assist 
the Under Secretary in carrying out such functions.
    (b) Regulations.--The Secretary may issue such regulations as are 
necessary to carry out the provisions of this Act, and amend or revise 
them as necessary. Such regulations may apply to financing, 
transporting, or other servicing of exports subject to this Act and the 
participation therein by any person. The Secretary shall consult with 
the appropriate technical advisory committees authorized under this Act 
in formulating or amending regulations issued under this Act. Any 
regulations to carry out the provisions of section 5 may be issued only 
after the regulations are submitted for review to such departments or 
agencies as the Secretary considers appropriate. The requirement for 
prior agency review does not confer the right of concurrence or 
approval by any official, department, or agency to which such 
regulations are submitted.
    (c) Confidentiality of Information.--
            (1) Exemptions from disclosure.--
                    (A) Except as otherwise provided by the third 
                sentence of section 7(b)(2) of this Act, information 
                obtained under the Export Administration Act of 1979 
                and its predecessor statutes on or before June 30, 
                1980, which is deemed confidential, including Shipper's 
                Export Declarations, or with reference to which a 
                request for confidential treatment is made by the 
                person furnishing such information, shall not be 
                subject to disclosure under section 552 of title 5, 
                United States Code, and such information shall not be 
                published or disclosed unless the Secretary determines 
                that the withholding thereof is contrary to the 
                national interest.
                    (B) Except as otherwise provided by the third 
                sentence of section 7(b)(2) of this Act, information 
                obtained under this Act, under the Export 
                Administration Act of 1979 after June 30, 1980, or 
                under the Export Administration Regulations as 
                maintained and amended under the authority of the 
                International Emergency Economic Powers Act (50 U.S.C. 
                1706) may be withheld only to the extent permitted by 
                statute, except that information submitted, obtained or 
                considered in connection with an application for an 
                export license or other export authorization, including 
                the export license or other export authorization 
                itself, classification requests, information obtained 
                during the course of a foreign availability assessment, 
                information or evidence obtained in the course of any 
                investigation, and information obtained or furnished in 
                connection with multilateral agreements, treaties, or 
                obligations under this Act, under the Export 
                Administration Act of 1979 after June 30, 1980, or 
                under the Export Administration Regulations as 
                maintained and amended under the authority of the 
                International Emergency Economic Powers Act (50 U.S.C. 
                1706) shall not be subject to disclosure under section 
                552 of title 5, United States Code, and such 
                information shall not be published or disclosed unless 
                the Secretary determines that the withholding thereof 
                is contrary to the national interest.
            (2) Information to congress and gao.--
                    (A) In general.--Nothing in this Act shall be 
                construed as authorizing the withholding of information 
                from the Congress or from the General Accounting 
                Office.
                    (B) Availability to the congress.--
                            (i) In general.--All information obtained 
                        at any time under this Act or previous Acts 
                        regarding the control of exports, including any 
                        report or license application required under 
                        this Act, shall upon request be made available 
                        to the Committee on Foreign Affairs and the 
                        Subcommittee on International Economic Policy 
                        and Trade of the House of Representatives and 
                        the Committee on Banking, Housing, and Urban 
                        Affairs and the Subcommittee on International 
                        Finance and Monetary Policy of the Senate. Each 
                        of the above designated committees and 
                        subcommittees may provide other members of 
                        Congress information obtained under this 
                        authority provided that such information may 
                        not be further disclosed except upon a finding 
                        made under the following subparagraph.
                            (ii) Prohibition on further disclosure.--No 
                        such committee or subcommittee, or member 
                        thereof, and no other committee, subcommittee, 
                        or member of Congress shall disclose any 
                        information obtained under this Act or previous 
                        Acts regarding the control of exports which is 
                        submitted pursuant to this subsection unless 
                        one of the above-described full committees 
                        determines that the withholding of that 
                        information is contrary to the national 
                        interest.
                    (C) Availability to the gao.--
                            (i) In general.--Notwithstanding paragraph 
                        (1), information referred to in subparagraph 
                        (B) shall, consistent with the protection of 
                        intelligence, counterintelligence, and law 
                        enforcement sources, methods, and activities, 
                        as determined by the agency that originally 
                        obtained the information, and consistent with 
                        the provisions of section 313 of the Budget and 
                        Accounting Act of 1921, be made available only 
                        by the agency, upon request, to the Comptroller 
                        General of the United States or to any officer 
                        or employee of the General Accounting Office 
                        authorized by the Comptroller General to have 
                        access to such information.
                            (ii) Prohibition on further disclosures.--
                        No officer or employee of the General 
                        Accounting Office shall disclose, except to the 
                        Congress in accordance with this paragraph, any 
                        such information which is submitted on a 
                        confidential basis and from which any 
                        individual can be identified.
            (3) Commerce/customs information exchange.--Notwithstanding 
        the provisions of section 11(c)(1), the Secretary and the 
        Commissioner of Customs shall exchange any licensing and 
        enforcement information with each other which is necessary to 
        facilitate enforcement efforts and effective license decisions.
            (4) Penalties for disclosure of confidential information.--
        Any officer or employee of the Untied States, or any department 
        or agency thereof, who publishes, divulges, discloses, or makes 
        known in any manner or to any extent not authorized by law any 
        information coming to him in the course of his or her 
        employment or official duties or by reason of any examination 
        or investigation made by, report or record made to or filed 
        with, such department or agency, or officer or employee 
        thereof, which information is exempt from disclosure under this 
        subsection, shall be fined not more than $1,000, or imprisoned 
        not more than 1 year, or both, and may be removed from office 
        or employment and shall be subject to an administrative fine of 
        not more than $1,000 to be enforced under the authorities and 
        procedures of section 10 of this Act.
    (d) Public Participation.--It is the intent of the Congress that, 
to the extent practicable, all regulations imposing controls on exports 
under this Act be issued in proposed form with meaningful opportunity 
for public comment before taking effect. In cases where a regulation 
imposing controls under this Act is issued with immediate effect, it is 
the intent of the Congress that meaningful opportunity for public 
comment also be provided and that the regulation be reissued in final 
form after public comments have been fully considered.
    (e) Control List Development and Review.--
            (1) In general.--The Secretary shall establish and maintain 
        a Control List comprising all items requiring a validated 
        license for export to designated countries under this Act. The 
        Control List and other implementing regulations shall clearly 
        identify the specific items controlled to each country. The 
        Secretary shall establish validated license requirements on the 
        Control List.
            (2) Development and review of the control list.--The 
        Secretary shall consult with appropriate departments and 
        agencies regarding the addition, deletion, or maintenance of a 
        license requirement for a given item. The Secretary of State, 
        in consultation with appropriate departments and agencies, 
        shall be responsible for conducting negotiations and developing 
        negotiating positions with other countries regarding 
        multilateral arrangements for restricting the export of items 
        to carry out the policies of this Act. All appropriate 
        departments and agencies shall consult to develop initial 
        technical parameters and item definitions in connection with 
        the development of proposals within the United States 
        Government to be made to multilateral regimes in consultation 
        with the Technical Advisory Committees as provided in paragraph 
        (3) below.
            For items controlled by a multilateral regime, the 
        Secretary shall conduct periodic reviews scheduled sufficiently 
        in advance of regime deliberations to permit the United States 
        to present appropriate proposals after consultation with United 
        States industry and the technical advisory committees. The 
        Secretary shall seek the advice of United States industry and 
        appropriate technical advisory committees as to the control of 
        items subject to this Act. This review shall serve as a basis 
        for United States proposals for revision of items subject to 
        multilateral regimes. The Secretary of State shall seek to 
        ensure that each multilateral regime in which the United States 
        is a member shall review each item on its list of controlled 
        items at least once every 2 years. In any case when such a 
        multilateral regime fails to review an entry on its list of 
        controlled items within 2 years of the prior review, the 
        Secretary of State shall propose a review by the relevant 
        multilateral regime of such an entry. Regardless of the 
        frequency of list reviews by a given regime, the Secretary 
        shall review each item controlled in cooperation with a 
        multilateral regime at least once every 2 years.
            (3) Technical advisory committees and the public.--The 
        appropriate technical advisory committee appointed under 
        section 4(g) shall be consulted by the Secretary with respect 
        to changes in the Control List established pursuant to this 
        subsection, and such technical advisory committee may submit 
        recommendations to the Secretary with respect to such changes. 
        The Secretary shall consider the recommendations of the 
        technical advisory committee and shall inform the committee of 
        the disposition of its recommendations. The Secretary shall 
        also seek comments and recommendations from the public in 
        connection with changes in the Control List established 
        pursuant to this subsection. To the maximum extent practicable 
        and consistent with the conduct of international negotiations, 
        in every possible instance, such comments and recommendations 
        shall be taken into consideration in the development of United 
        States Government proposals for all list revisions and 
        positions to be taken in multilateral regimes.
    (f) Authority for Seminar and Publications Fund.--The Secretary is 
authorized to cooperate with public agencies, other governments, 
international organizations, private individuals, private associations, 
and other groups in connection with seminars, publications, and related 
activities to carry out export activities, including educating the 
public or government officials in the application of this Act and the 
regulations issued under this Act. The Secretary is further authorized 
to accept contributions of funds, property, or services in connection 
with such activities to recover the cost of such programs and 
activities over time. Contributions shall include payments for 
materials or services provided as part of these activities. The 
contributions collected may be retained for use in covering the costs 
of these activities, and for supporting all outreach functions of the 
Department in connection with this Act and other export control 
programs of the United States and other governments.
    (g) Support of Other Countries' Export Control Program.--The 
Secretary may participate in the education and training of officials of 
other countries on the principles and procedures for the implementation 
of effective export controls.
    (h) Applicability of Administrative Procedures Act.--
            (1) Exemption.--Except as provided in subsection (d) of 
        section 9, the functions exercised under this Act are excluded 
        from the operation of sections 551, 553 through 559, and 701 
        through 706 of title 5, United States Code.
            (2) Judicial review.--Except as provided by subsections 
        (d), (g), and (j) of section 9, a final agency action under 
        this Act may be reviewed by appeal to the United States Court 
        of Appeals for the District of Columbia Circuit, to the extent 
        provided in this paragraph. The court's review in any such 
        appeal shall be limited to determining whether--
                    (A) a regulation--
                            (i) fails to take an action compelled by 
                        this Act;
                            (ii) takes an action prohibited by this 
                        Act; or
                            (iii) otherwise violates this Act;
                    (B) an agency action violates this Act;
                    (C) an agency action violates an agency regulation 
                establishing time requirements or other procedural 
                requirements of a non-discretionary nature;
                    (D) the issuance of regulations compelled by this 
                Act complies with time restrictions imposed by this 
                Act;
                    (E) license decisions are made and appeals thereof 
                are concluded in compliance with time restrictions 
                imposed by this Act;
                    (F) classifications and advisory opinions are 
                issued in compliance with time restrictions imposed by 
                this Act;
                    (G) unfair impact determinations are in compliance 
                with time restrictions imposed by this Act; or
                    (H) the United States has complied with the 
                requirements of section 5(k) after an unfair impact 
                determination has been rendered.
    (i) Incorporated Commodities, Technology, and Software.--
            (1) Commodities containing controlled parts and 
        components.--Export licenses may not be required under this Act 
        or any other provision of law for a commodity solely because 
        the commodity contains parts or components subject to export 
        control under this Act if such parts or components--
                    (A) are essential to the functioning of the good;
                    (B) are customarily included in sales of the item 
                in countries other than target countries; and
                    (C) comprise 25 percent or less of the total value 
                of the good, unless the good itself, if exported, would 
                by virtue of the functional characteristics of the good 
                as a whole make a significant contribution to the 
                military or proliferation potential of a target country 
                or end user which would prove detrimental to the 
                national security of the United States.
            (2) Reexports of foreign-made items incorporating united 
        states items.--Except for countries embargoed under this Act, 
        the International Emergency Economic Powers Act or the Trading 
        with the Enemy Act, and except for countries named as 
        terrorist-supporting countries under section 5(j)(4), no 
        authority or permission may be required under this Act to--
                    (A) reexport a foreign-made commodity incorporating 
                United States origin commodities valued at 25 percent 
                or less of the total value of the foreign-made 
                commodity;
                    (B) reexport foreign-made software incorporating 
                United States origin software valued at 25 percent or 
                less of the total value of the foreign-made software; 
                or
                    (C) reexport foreign technology commingled with or 
                drawn from United States origin technology valued at 25 
                percent or less of the total value of the foreign 
                technology.

        For countries embargoed under this Act, the International 
        Emergency Economic Powers Act or the Trading with the Enemy 
        Act, and except for countries named as terrorist-supporting 
        countries under section 5(j)(4), no authority or permission may 
        be required under this Act to--
                    (D) reexport a foreign-made commodity incorporating 
                United States origin commodities valued at 10 percent 
                or less of the total value of the foreign-made 
                commodity;
                    (E) reexport foreign-made software incorporating 
                United States origin software valued at 10 percent or 
                less of the total value of the foreign-made software; 
                or
                    (F) reexport foreign technology commingled with or 
                drawn from United States origin technology valued at 10 
                percent or less of the total value of the foreign 
                technology.
        For purposes of this subsection, technology and source code 
        used to design or produce foreign-made commodities or software 
        are not incorporated into such foreign-made commodities or 
        software. Notwithstanding the above provisions, the Secretary 
        may require firms to report to the Department of Commerce their 
        proposed calculations and underlying data sufficient for the 
        Department of Commerce to evaluate the adequacy of those 
        calculations and data related to commodities, technology, and 
        software before a reexporter may rely upon this exclusion from 
        controls.
    (j) Exceptions for Medical and Humanitarian Purposes.--This Act 
does not authorize controls on--
            (1) medical instruments and equipment subject to the 
        provisions of subsection (j)(1) of this section;
            (2) medicine or medical supplies; or
            (3) donations of items that are intended to meet basic 
        human needs including food, educational materials, seeds, hand 
        tools, water resources equipment, clothing and shelter 
        materials, and basic household supplies.
    (k) Sanctity of Existing Contracts and Licenses.--
            (1) In general.--Under a unilateral control imposed under 
        section 5 of this Act, the President may not prohibit the 
        export or reexport of items--
                    (A) in performance of a contract, agreement, or 
                other contractual commitment entered into before the 
                effective date of any export controls mandated by this 
                law, or the date on which the President reports to the 
                Congress the President's intention to impose controls 
                on the export or reexport of such items; or
                    (B) under a validated license issued under this Act 
                before the effective date of any export controls 
                mandated by this law, or the date on which the 
                President reports to the Congress the President's 
                intention to impose controls on the export or reexport 
                of such items.
            (2) Exception.--The prohibition in paragraph (1) shall not 
        apply if the President determines and certifies to the Congress 
        that--
                    (A) a breach of the peace poses a serious and 
                direct threat to the strategic interest of the United 
                States;
                    (B) the prohibition or curtailment of each such 
                contract, agreement, commitment, license, or 
                authorization to be controlled will be directly 
                instrumental in remedying the situation posing the 
                direct threat; and
                    (C) the emergency controls will continue only so 
                long as the direct threat persists.
            (3) The determination authority provided to the President 
        in this subparagraph (2) may not be delegated.
    (l) Fact-Finding Authority.--
            (1) To the extent necessary or appropriate to the 
        administration of this Act or any multilateral regime in which 
        the United States participates pursuant to this Act, the 
        Secretary (and officers or employees of the Department of 
        Commerce designated by the Secretary), the Commissioner of 
        Customs, or the head of any other department or agency 
        designated by the Secretary may exercise the authorities 
        described in paragraph (2).
            (2) Any officer or employee designated by the Secretary may 
        do the following in carrying out the authority of this Act:
                    (A) Make investigations of, obtain information 
                from, require reports or the keeping of such records 
                by, make inspection of the books, records, and other 
                writings, premises, or property of, and take the sworn 
                testimony of, any person.
                    (B) Administer oaths or affirmations, and by 
                subpoena require any person to appear and testify or to 
                appear and produce books, records, and other writings, 
                or both. In the case of contumacy by, or refusal to 
                obey a subpoena issued to, any such person, a district 
                court of the United States, after notice to any such 
                person and hearing, shall have jurisdiction to issue an 
                order requiring such person to appear and give 
                testimony or to appear and produce books, records, and 
                other writings, or both, and any failure to obey such 
                order of the court may be punished by such court as a 
                contempt thereof.
    (m) Military Critical Technologies List Development, Review and 
Use.--
            (1) In developing the Military Critical Technologies List 
        (MCTL), established pursuant to subsection 4(c) of this Act, 
        primary emphasis shall be given to--
                    (A) development and production technology;
                    (B) test, inspection, and production equipment;
                    (C) advanced materials, chemicals, and biological 
                agents;
                    (D) unique software; and
                    (E) systems, subsystems, assemblies and components.
            (2) The list referred to in paragraph (1) shall be 
        sufficiently specific to guide the determinations of any 
        official exercising export licensing responsibilities under 
        this Act. For purposes of completeness and cross-reference, the 
        MCTL shall include both dual-use items controlled by this Act 
        and other militarily critical items that may be controlled 
        under other authorities, including the Arms Export Control Act 
        (22 U.S.C. 2770 et seq.)
            (3) Consistent with the policies of section 3 and the 
        criteria of section 5, the Secretary and the Secretary of 
        Defense shall propose integration of items on the list of 
        militarily critical technologies into the Control List in 
        accordance with the requirements of paragraph (1) of this 
        subsection. Any disagreement between the Secretary and the 
        Secretary of Defense regarding the integration of an item on 
        the list of militarily critical technologies into the Control 
        List shall be resolved by the President.
            (4) The Secretary of Defense shall establish a procedure 
        for reviewing the MCTL on an ongoing basis for the purpose of 
        removing from the MCTL any items that are no longer militarily 
        critical. The Secretary of Defense may add to the MCTL any item 
        that the Secretary of Defense determines is militarily 
        critical, consistent with the provisions of paragraph (1) of 
        this subsection. If the Secretary and the Secretary of Defense 
        disagree as to whether any change in the MCTL by the addition 
        or removal of an item should also be made in the Control List, 
        the President shall resolve the disagreement.
            (5) The establishment of adequate export controls for 
        militarily critical technology, equipment, and materials shall 
        be accompanied by suitable reductions in the controls on the 
        products of that technology, equipment, and materials.

SEC. 12A. SANCTIONS FOR PROLIFERATION ACTIVITY AND THE USE OF CHEMICAL 
              AND BIOLOGICAL WEAPONS AND MISSILES.

    (a) Determinations.--
            (1) Determination of activity supporting the proliferation 
        of chemical and biological weapons and missiles.--The President 
        shall determine whether any foreign person has, on or after the 
        date of the enactment of this section, knowingly or with reason 
        to know contributed materially to the efforts of any 
        government, group, entity, or project to use, design, develop, 
        produce, stockpile, or otherwise acquire chemical or biological 
        weapons or missiles--
                    (A) through the export or transfer of--
                            (i) any item on the MTCR Annex whether or 
                        not of United States-origin; or
                            (ii) any chemicals, biological agents, or 
                        equipment which may contribute to a chemical or 
                        biological weapons program such as those listed 
                        by the Australia Group, whether or not of 
                        United States-origin;
                    (B) by participating in any financial transaction 
                related to the activity described in paragraphs (1)(A) 
                or (1)(B); or
                    (C) by facilitating the activity described in 
                paragraphs (1)(A) or (1)(B);
                    (D) This subsection does not apply--
                            (i) under (a)(1)(A)(i) to an export or 
                        transfer that is authorized by the government 
                        of a country that is an adherent to the MTCR or 
                        is to a country that is an adherent to the 
                        MTCR; or
                            (ii) under (a)(1)(A)(ii) for an export or 
                        transfer that is to a country that is both 
                        authorized by a country that is an adherent to 
                        the Australia Group or a signatory to the 
                        Chemical Weapons Convention and is to a country 
                        that is an adherent to the Australia Group or a 
                        signatory to the Chemical Weapons Convention.
            (2) Determination of use of chemical or biological 
        weapons.--Whenever persuasive information becomes available to 
        the executive branch indicating the substantial possibility 
        that, on or after the date of enactment of this Act, the 
        government of a foreign country has made substantial 
        preparation to use chemical or biological weapons, the 
        President shall, within 60 days after the receipt of such 
        information by the executive branch, determine whether that 
        government, on or after such date of enactment, has used 
        chemical or biological weapons in violation of international 
        law or has used lethal chemical or biological weapons against 
        its own nationals.
    (b) Persons Against Which Sanctions Are To Be Imposed.--In the 
event of an affirmative determination under subsection (a)(1)(A)(i) or 
(a)(1)(A)(ii), the President shall impose sanctions described under 
subsection (c) on the foreign person that engaged in, facilitated, or 
solicited the conduct that is the subject of the determination, on 
other persons as the President determines should be subject to 
sanctions because they are related to that person, and on any successor 
of a sanctioned person.
    (c) Sanctions.--
            (1) Mandatory sanctions.--The following sanctions shall be 
        imposed for a minimum of 2 years in the event the President 
        makes a determination under subsections (a)(1)(A)(i) or 
        (a)(1)(A)(ii):
                    (A) If the determination is for activity related to 
                missile proliferation, validated licenses for items on 
                the MTCR annex shall be denied under this Act and the 
                Arms Export Control Act and imports of such items from 
                such entities shall be prohibited.
                    (B) If the determination is for activity related to 
                chemical or biological weapons proliferation, validated 
                licenses for items listed by the Australia Group shall 
                be denied under this Act and the Arms Export Control 
                Act and imports of such items from such entities shall 
                be prohibited.
                    (C) The United States Government shall not procure, 
                or enter into any contract for the procurement of, any 
                services, commodities, software, and technology, or 
                other products from or produced by any entity described 
                in subsection (a)(2).
            (2) Discretionary sanctions.--In addition to the sanctions 
        described in paragraph (1), the President may also take any of 
        the actions listed in paragraphs (3) and (5), if the President 
        determines that such additional measures would further the 
        objectives of this section. Such additional sanctions shall be 
        proportionate to the harm the sanctioned behavior has caused or 
        will cause the national security or nonproliferation interests 
        of the United States.
            (3) Mandatory sanctions for use of chemical or biological 
        weapons.--The following sanctions shall be imposed in the event 
        the President makes a determination under subsection (a)(2):
                    (A) Foreign assistance.--The United States 
                Government shall terminate assistance to that country 
                under the Foreign Assistance Act of 1961, except for 
                urgent humanitarian assistance and food or other 
                agricultural commodities or products.
                    (B) Arms sales.--The United States Government shall 
                terminate--
                            (i) sales to that country under the Arms 
                        Export Control Act of any defense articles, 
                        defense services, or design and construction 
                        services; and
                            (ii) licenses for the export to that 
                        country of any item on the United States 
                        Munitions List.
                    (C) Arms sales financing.--The United States 
                Government shall terminate all foreign military 
                financing for that country under the Arms Export 
                Control Act.
                    (D) Denial of united states government credit or 
                other financial assistance.--The United States 
                Government shall deny to that country any credit, 
                credit guarantees, or other financial assistance by any 
                department, agency, or instrumentality of the United 
                States Government, including the Export-Import Bank of 
                the United States.
                    (E) Exports of national security-sensitive items.--
                The authorities of this Act shall be used to prohibit 
                the export to that country of any items controlled for 
                non-proliferation, regional stability, or national 
                security reasons.
            (4) Additional sanctions if certain conditions not met.--
        Unless, within 3 months after making a determination pursuant 
        to subsection (a)(2) with respect to a foreign government, the 
        President determines and certifies, in writing, to the Congress 
        that--
                    (A) the government is no longer using chemicals or 
                biological weapons in violation of international law or 
                using lethal chemicals or biological weapons against 
                its own nationals;
                    (B) the government has provided reliable assurances 
                that it will not, in the future, engage in any such 
                activities; and
                    (C) the government is willing to allow on-site 
                inspections by United Nations observers or other 
                internationally-recognized, impartial observers, or 
                other reliable means exist, to ensure that government 
                is not using chemical or biological weapons in 
                violation of international law and is not using lethal 
                chemical or biological weapons against its own 
                nationals, then the President, after consultation with 
                the Congress, shall impose on that country the 
                sanctions set forth in at least 3 of subparagraphs (A) 
                through (F) of paragraph (5).
            (5) Additional sanctions for use of chemical or biological 
        weapons.--The sanctions referred to in paragraph (4) are the 
        following:
                    (A) Multilateral development bank assistance.--The 
                United States Government shall oppose, in accordance 
                with section 701 of the International Financial 
                Institutions Act (22 U.S.C. 262d), the extension of any 
                loan or financial or technical assistance to that 
                country by international financial institutions.
                    (B) Bank loans.--The United States Government shall 
                prohibit any United States bank from making any loan or 
                providing any credit to the government of that country, 
                except for loans or credits for the purpose of 
                purchasing food or other agricultural commodities or 
                products.
                    (C) Further export restrictions.--The authorities 
                of this Act may be used to prohibit exports to the 
                country of all other items (excluding food and other 
                agricultural commodities and products).
                    (D) Import restrictions.--Restriction shall be 
                imposed on the importation into the United States of 
                articles (which may include petroleum or any petroleum 
                product) that are the growth, product, or manufacture 
                of that country.
                    (E) Diplomatic relations.--The President shall use 
                constitutional authorities to downgrade or suspend 
                diplomatic relations between the United States and the 
                government of that country.
                    (F) Presidential action regarding aviation.--
                            (i)(I) The President is authorized to 
                        notify the government of a country with respect 
                        to which the President has made a 
                        determination, pursuant to subsection 12(a), 
                        regarding intention to suspend the authority of 
                        foreign air carriers owned or controlled by the 
                        government of that country to engage in foreign 
                        air transportation to or from the United 
                        States.
                            (II) Within 10 days after the date of 
                        notification of a government under subclause 
                        (I), the Secretary of Transportation shall take 
                        all steps necessary to suspend at the earliest 
                        possible date the authority of any foreign air 
                        carrier owned or controlled, directly or 
                        indirectly, by that government to engage in 
                        foreign air transportation to or from the 
                        United States, notwithstanding any agreement 
                        relating to air services.
                            (ii)(I) The President may direct the 
                        Secretary of State to terminate any air service 
                        agreement between the United States and a 
                        country with respect to which the President has 
                        made a determination pursuant to subsection 
                        (a), in accordance with the provisions of that 
                        agreement.
                            (II) Upon termination of an agreement under 
                        this clause, the Secretary of Transportation 
                        shall take such steps as may be necessary to 
                        revoke at the earliest possible date the right 
                        of any foreign air carrier owned, or 
                        controlled, directly or indirectly, by the 
                        government of that country to engage in foreign 
                        air transportation to or from the United 
                        States.
                            (iii) The Secretary of Transportation may 
                        provide for such exceptions from clauses (i) 
                        and (ii) as the Secretary considers necessary 
                        to provide for emergencies in which the safety 
                        of an aircraft or its crew or passengers is 
                        threatened.
                            (iv) For purposes of this subparagraph, the 
                        terms ``air transportation'', ``air carrier'', 
                        ``foreign air carrier'', and ``foreign air 
                        transportation'' have the meanings such terms 
                        have under section 101 of the Federal Aviation 
                        of 1958 (49 U.S.C. App. 1301).
    (d) Deferral and Limitation.--
            (1) The President may delay the making of a determination 
        under subsection (a) or the imposition of sanctions in order to 
        protect--
                    (A) ongoing criminal investigations; or
                    (B) sensitive intelligence sources and methods 
                which are being used to acquire further information on 
                the proliferation of weapons of mass destruction, their 
                delivery systems, or advanced conventional weapons.
        The President shall exercise this authority only when the 
        President determines that nonproliferation objectives do not 
        outweigh the need to delay the imposition of sanctions to avoid 
        compromising the criminal investigation or intelligence sources 
        and methods involved. The President shall proceed when the 
        basis for the delay no longer exists.
            (2) The President may delay the imposition of sanctions for 
        up to 180 days if the United States is engaged in diplomatic 
        efforts and consultations with the objective of--
                    (A) curtailing the policies and conduct of the 
                government or person in the country of weapons activity 
                determined to have engaged in the sanctioned conduct; 
                or
                    (B) obtaining from the government with effective 
                jurisdiction over the sanctioned person appropriate 
                sanctions against such person or the initiation of 
                legal process to impose such sanctions.
        If such diplomatic efforts and consultations succeed (i) in 
        curtailing the conduct of the government or person engaged in 
        the sanctioned conduct, or (ii) in obtaining enforcement action 
        in accordance with subparagraph (B), the President shall not be 
        required to apply or maintain sanctions under this section.
            (3) The President should seek multilateral support for 
        sanctions against activity covered by this section. If 
        multilateral sanctions are achieved that the President 
        determines will be more effective than unilateral sanctions in 
        furthering the national security or nonproliferation objectives 
        of the United States, the President shall not be required to 
        exercise the authority in this section in a manner inconsistent 
        with such multilateral sanctions.
    (e) Exceptions.--The President shall not be required to apply or 
maintain sanctions under this section--
            (1) in the case of procurement of defense articles or 
        defense services--
                    (A) under existing contracts or subcontracts, 
                including the exercise of options for production 
                quantities to satisfy United States operational 
                military requirements;
                    (B) if the President determines that the person to 
                which the sanctions would otherwise be applied is a 
                sole source supplier of the defense articles or 
                services, that the defense articles or services are 
                essential, and that alternative sources are not readily 
                or reasonably available; or
                    (C) if the President determines that such articles 
                or services are essential to the national security 
                under defense coproduction agreements;
            (2) to the import of--
                    (A) products or services provided under contracts 
                entered into before the data on which the President 
                publishes notice of intention to impose sanctions; or
                    (B)(i) spare parts;
                    (ii) component parts, but not finished products, 
                essential to United States products or production;
                    (iii) information and technology essential to 
                United States products or production; or
                    (iv) routine servicing and maintenance of products, 
                to the extent that alternative sources are not readily 
                or reasonably available;
            (3) to medical or other humanitarian items; or
            (4) to any transaction subject to the reporting 
        requirements of title V of the National Security Act of 1947;
            (5) when the President determines, categorically or on a 
        case-by-case basis, that the application of sanctions to bar 
        performance of a contract or agreement entered into before the 
        date of the imposition of sanctions is not necessary to achieve 
        the national security or nonproliferation objectives of the 
        United States and would be contrary to the national interest.
    (f) Termination of Sanctions for Using Chemical or Biological 
Weapons.--During the minimum 2 years period of the mandatory sanctions 
imposed pursuant to a determination under subsection (a)(2), such 
sanctions may be removed if the President determines and so certifies 
to the Congress that--
            (1) the government of that country has provided reliable 
        assurances that it will not use chemical or biological weapons 
        in violation of international law and will not use lethal 
        chemical or biological weapons against its own nationals;
            (2) that government is not making preparations to use 
        chemical or biological weapons in violation of international 
        law or to use lethal chemical or biological weapons against its 
        own nationals;
            (3) that government is willing to allow on-site inspections 
        by United Nations observers or other internationally-
        recognized, impartial observers to verify that it is not making 
        preparations to use chemical or biological weapons in violation 
        of international law or to use lethal chemical or biological 
        weapons against its own nationals, or other reliable means 
        exist to verify that it is not making such preparations; and
            (4) that government is making restitution to those affected 
        by any use of chemical or biological weapons in violation of 
        international law or by any use of lethal chemical or 
        biological weapons against its own nationals.
    (g) Waiver.--
            (1) Criterion for waiver.--The President may waive or 
        partially waive the application of any sanction imposed on any 
        entity pursuant to this section, if the President determines 
        and certifies to Congress that such waiver is important to the 
        national interests of the United States.
            (2) Notification of and report to congress.--If the 
        President decides to exercise the waiver authority provided in 
        paragraph (1), the President shall so notify the Congress not 
        less than 20 days before the waiver takes effect. Such 
        notification shall include a report stating the reasons for 
        exercise of the waiver authority.
    (h) Regulatory Implementation of Sanctions.--For items subject to 
the jurisdiction of the Secretary under this Act, sanctions shall be 
implemented in regulations issued by the Secretary and shall specify 
the scope of products and entities. For items subject to the 
jurisdiction of the Secretary of State under the Arms Export Control 
Act, sanctions shall be implemented in regulations issued by the 
Secretary of State and shall specify the scope of products and 
entities.

SEC. 12B. SANCTIONS FOR PROLIFERATION ACTIVITY AND THE USE OF CHEMICAL 
              AND BIOLOGICAL WEAPONS.

    Section 72 of the Arms Export Control Act is amended to read as 
follows:

``SEC. 72. SANCTIONS AGAINST CERTAIN FOREIGN PERSONS AND COUNTRIES.

    ``(a) Determinations.--
            ``(1) Determination of activity supporting the 
        proliferation of chemical and biological weapons and 
        missiles.--The President shall determine whether any foreign 
        person has, on or after the date of the enactment of this 
        section, knowingly or with reason to know contributed 
        materially to the efforts of any government, group, entity, or 
        project to use, design, develop, produce, stockpile, or 
        otherwise acquire chemical or biological weapons or missiles--
                    ``(A) through the export or transfer of--
                            ``(i) any item on the MTCR Annex whether or 
                        not of United States-origin; and
                            ``(ii) any chemicals, biological agents, or 
                        equipment which may contribute to a chemical or 
                        biological weapons program such as those listed 
                        by the Australia Group, whether or not of 
                        United States-origin;
                    ``(B) by participating in any financial transaction 
                related to the activity described in paragraphs (1)(A) 
                or (1)(B); or
                    ``(C) by facilitating or soliciting the activity 
                described in paragraphs (1)(A) or (1)(B);
                    ``(D) This subsection does not apply--
                            ``(i) under (a)(1)(A)(i) to an export or 
                        transfer that is authorized by the government 
                        of a country that is an adherent to the MTCR or 
                        is to a country that is an adherent to the 
                        MTCR; or
                            ``(ii) under (a)(1)(A)(ii) for an export or 
                        transfer that is to a country that is both 
                        authorized by a country that is an adherent to 
                        the Australia Group or a signatory to the 
                        Chemical Weapons Convention and is to a country 
                        that is an adherent to the Australia Group or a 
                        signatory to the Chemical Weapons Convention.
            ``(2) Determination of use of chemical or biological 
        weapons.--Whenever persuasive information becomes available to 
        the executive branch indicating the substantial possibility 
        that, on or after the date of enactment of this Act, the 
        government of a foreign country has made substantial 
        preparation to use chemical or biological weapons, the 
        President shall, within 60 days after the receipt of such 
        information by the executive branch, determine whether that 
        government, on or after such date of enactment, has used 
        chemical or biological weapons in violation of international 
        law or has used lethal chemical or biological weapons against 
        its own nationals.
    ``(b) Persons Against Which Sanctions Are To Be Imposed.--In the 
event of an affirmative determination under subsection (a)(1)(A)(i) or 
(a)(1)(A)(ii), the President shall impose sanctions described under 
subsection (c) on the foreign person that engaged in, facilitated, or 
solicited the conduct that is the subject of the determination, on 
other persons as the President determines should be subject to 
sanctions because they are related to that person, and on any successor 
of a sanctioned person.
    ``(c) Sanctions.--
            ``(1) Mandatory sanctions.--The following sanctions shall 
        be imposed for a minimum of 2 years in the event the President 
        makes a determination under subsections (a)(1)(A)(i) or 
        (a)(1)(A)(ii):
                    ``(A) If the determination is for activity related 
                to missile proliferation, validated licenses for items 
                on the MTCR annex shall be denied under this Act and 
                the Export Administration Act and imports of such items 
                for such entities shall be prohibited.
                    ``(B) If the determination is for activity related 
                to chemical or biological weapons proliferation, 
                validated licenses for items listed by the Australia 
                Group shall be denied under this Act and the Export 
                Administration Act and imports of such items for such 
                entities shall be prohibited.
                    ``(C) The United States Government shall not 
                procure, or enter into any contract for the procurement 
                of, any services, commodities, software, and 
                technology, or other products from or produced by any 
                entity described in subsection (a)(2).
            ``(2) Discretionary sanctions.--In addition to the 
        sanctions described in paragraph (1), the President may also 
        take any of the actions listed in paragraphs (3) and (5), if 
        the President determines that such additional measures would 
        further the objectives of this section. Such additional 
        sanctions shall be proportionate to the harm the sanctioned 
        behavior has caused or will cause the national security or 
        nonproliferation interests of the United States.
            ``(3) Mandatory sanctions for use of chemical or biological 
        weapons.--The following sanctions shall be imposed in the event 
        the President makes a determination under subsection (a)(2):
                    ``(A) Foreign assistance.--The United States 
                Government shall terminate assistance to that country 
                under the Foreign Assistance Act of 1961, except for 
                urgent humanitarian assistance and food or other 
                agricultural commodities or products.
                    ``(B) Arms sales.--The United States Government 
                shall terminate--
                            ``(i) sales to that country under this Act 
                        of any defense articles, defense services, or 
                        design and construction services; and
                            ``(ii) licenses for the export to that 
                        country of any item on the United States 
                        Munitions List.
                    ``(C) Arms sales financing.--The United States 
                Government shall terminate all foreign military 
                financing for that country under this Act.
                    ``(D) Denial of united states government credit or 
                other financial assistance.--The United States 
                Government shall deny to that country any credit, 
                credit guarantees, or other financial assistance by any 
                department, agency, or instrumentality of the United 
                States Government, including the Export-Import Bank of 
                the United States.
                    ``(E) Exports of national security-sensitive 
                items.--The authorities of this Act shall be used to 
                prohibit the export to that country of any items 
                controlled for nonproliferation, regional stability, or 
                national security reasons.
            ``(4) Additional sanctions if certain conditions not met.--
        Unless, within 3 months after making a determination pursuant 
        to subsection (a)(2) with respect to a foreign government, the 
        President determines and certifies, in writing, to the Congress 
        that--
                    ``(A) the government is no longer using chemicals 
                or biological weapons in violation of international law 
                or using lethal chemicals or biological weapons against 
                its own nationals;
                    ``(B) the government has provided reliable 
                assurances that it will not, in the future, engage in 
                any such activities; and
                    ``(C) the government is willing to allow on-site 
                inspections by United Nations observers or other 
                internationally-recognized, impartial observers, or 
                other reliable means exist, to ensure that government 
                is not using chemicals or biological weapons in 
                violation of international law and is not using lethal 
                chemical or biological weapons against its own 
                nationals, then the President, after consultation with 
                the Congress, shall impose on that country the 
                sanctions set forth in at least 3 of subparagraphs (A) 
                through (F) of paragraph (5).
            ``(5) Additional sanctions for use of chemical or 
        biological weapons.--The sanctions referred to in paragraph (4) 
        are the following:
                    ``(A) Multilateral development bank assistance.--
                The United States Government shall oppose, in 
                accordance with section 701 of the International 
                Financial Institutions Act (22 U.S.C. 262d), the 
                extension of any loan or financial or technical 
                assistance to that country by international financial 
                institutions.
                    ``(B) Bank loans.--The United States Government 
                shall prohibit any United States bank from making any 
                loan or providing any credit to the government of that 
                country, except for loans or credits for the purpose of 
                purchasing food or other agricultural commodities or 
                products.
                    ``(C) Further export restrictions.--The authorities 
                of this Act may be used to prohibit exports to the 
                country of all other items (excluding food and other 
                agricultural commodities and products).
                    ``(D) Import restrictions.--Restriction shall be 
                imposed on the importation into the United States of 
                articles (which may include petroleum or any petroleum 
                product) that are the growth, product, or manufacture 
                of that country.
                    ``(E) Diplomatic relations.--The President shall 
                use constitutional authorities to downgrade or suspend 
                diplomatic relations between the United States and the 
                government of that country.
                    ``(F) Presidential action regarding aviation.--
                            ``(i)(I) The President is authorized to 
                        notify the government of a country with respect 
                        to which the President has made a 
                        determination, pursuant to subsection 12(a), 
                        regarding intention to suspend the authority of 
                        foreign air carriers owned or controlled by the 
                        government of that country to engage in foreign 
                        air transportation to or from the United 
                        States.
                            ``(II) Within 10 days after the date of 
                        notification of a government under subclause 
                        (I), the Secretary of Transportation shall take 
                        all steps necessary to suspend at the earliest 
                        possible date the authority of any foreign air 
                        carrier owned or controlled, directly or 
                        indirectly, by that government to engage in 
                        foreign air transportation to or from the 
                        United States, notwithstanding any agreement 
                        relating to air services.
                            ``(ii)(I) The President may direct the 
                        Secretary of State to terminate any air service 
                        agreement between the United States and a 
                        country with respect to which the President has 
                        made a determination pursuant to subsection 
                        (a), in accordance with the provisions of that 
                        agreement.
                            ``(II) Upon termination of an agreement 
                        under this clause, the Secretary of 
                        Transportation shall take such steps as may be 
                        necessary to revoke at the earliest possible 
                        date the right of any foreign air carrier 
                        owned, or controlled, directly or indirectly, 
                        by the government of that country to engage in 
                        foreign air transportation to or from the 
                        United States.
                            ``(iii) The Secretary of Transportation may 
                        provide for such exceptions from clauses (i) 
                        and (ii) as the Secretary considers necessary 
                        to provide for emergencies in which the safety 
                        of an aircraft or its crew or passengers is 
                        threatened.
                            ``(iv) for purposes of this subparagraph, 
                        the terms `air transportation', `air carrier', 
                        `foreign air carrier', and `foreign air 
                        transportation' have the meanings such terms 
                        have under section 101 of the Federal Aviation 
                        Act of 1958 (49 U.S.C. App. 1301).
    ``(d) Deferral and Limitation.--
            ``(1) The President may delay the making of a determination 
        under subsection (a) or the imposition of sanctions in order to 
        protect--
                    ``(A) ongoing criminal investigations; or
                    ``(B) sensitive intelligence sources and methods 
                which are being used to acquire further information on 
                the proliferation of weapons of mass destruction, their 
                delivery systems, or advanced conventional weapons.
        The President shall exercise this authority only when the 
        President determines that nonproliferation objectives do not 
        outweigh the need to delay the imposition of sanctions to avoid 
        compromising the criminal investigation or intelligence sources 
        and methods involved. The President shall proceed when the 
        basis for the delay no longer exists.
            ``(2) The President may delay the imposition of sanctions 
        for up to 180 days if the United States is engaged in 
        diplomatic efforts and consultations with the objective of--
                    ``(A) curtailing the policies and conduct of the 
                government or person in the country of weapons activity 
                determined to have engaged in the sanctioned conduct; 
                or
                    ``(B) obtaining from the government with effective 
                jurisdiction over the sanctioned person appropriate 
                sanctions against such person or the initiation of 
                legal process to impose such sanctions.

        If such diplomatic efforts and consultations succeed (i) in 
        curtailing the conduct of the government or person engaged in 
        the sanctioned conduct, or (ii) in obtaining enforcement action 
        in accordance with subparagraph (B), the President shall not be 
        required to apply or maintain sanctions under this section.
            ``(3) The President should seek multilateral support for 
        sanctions against activity covered by this section. If 
        multilateral sanctions are achieved that the President 
        determines will be more effective than unilateral sanctions in 
        furthering the national security or nonproliferation objectives 
        of the United States, the President shall not be required to 
        exercise the authority in this section in a manner inconsistent 
        with such multilateral sanctions.
    ``(e) Exceptions.--The President shall not be required to apply or 
maintain sanctions under this section--
            ``(1) in the case of procurement of defense articles or 
        defense services--
                    ``(A) under existing contracts or subcontracts, 
                including the exercise of options for production 
                quantities to satisfy United States operational 
                military requirements;
                    ``(B) if the President determines that the person 
                to which the sanctions would otherwise be applied is a 
                sole source supplier of the defense articles or 
                services, that the defense articles or services are 
                essential, and that alternative sources are not readily 
                or reasonably available; or
                    ``(C) if the President determines that such 
                articles or services are essential to the national 
                security under defense coproduction agreements;
            ``(2) to the import of--
                    ``(A) products or services provided under contracts 
                entered into before the date on which the President 
                publishes notice of intention to impose sanctions; or
                    ``(B)(i) spare parts;
                    ``(ii) component parts, but not finished products, 
                essential to United States products or production;
                    ``(iii) information and technology essential to 
                United States products or production;
                    ``(iv) routine servicing and maintenance of 
                products, to the extent that alternative sources are 
                not readily or reasonably available;
            ``(3) to medical or other humanitarian items;
            ``(4) to any transaction subject to the reporting 
        requirements of title V of the National Security Act of 1947; 
        or
            ``(5) when the President determines, categorically or on a 
        case-by-case basis, that the application of sanctions to bar 
        performance of a contract or agreement entered into before the 
        date of the imposition of sanctions is not necessary to achieve 
        the national security or nonproliferation objectives of the 
        United States and would be contrary to the national interest.
    ``(f) Termination of Sanctions for Using Chemical or Biological 
Weapons.--During the minimum 2 years period of the mandatory sanctions 
imposed pursuant to a determination under subsection (a)(2), such 
sanctions may be removed if the President determines and so certifies 
to the Congress that--
            ``(1) the government of that country has provided reliable 
        assurances that it will not use chemical or biological weapons 
        in violation of international law and will not use lethal 
        chemical or biological weapons against its own nationals;
            ``(2) that government is not making preparations to use 
        chemical or biological weapons in violation of international 
        law or to use lethal chemical or biological weapons against its 
        own nationals;
            ``(3) that government is willing to allow on-site 
        inspections by United Nations observers or other 
        internationally-recognized, impartial observers to verify that 
        it is not making preparations to use chemical or biological 
        weapons in violation of international law or to use lethal 
        chemical or biological weapons against its own nationals, or 
        other reliable means exist to verify that it is not making such 
        preparations; and
            ``(4) that government is making restitution to those 
        affected by any use of chemical or biological weapons in 
        violation of international law or by any use of lethal chemical 
        or biological weapons against its own nationals.
    ``(g) Waiver.--
            ``(1) Criterion for waiver.--The President may waive or 
        partially waive the application of any sanction imposed on any 
        entity pursuant to this section, if the President determines 
        and certifies to Congress that such waiver is important to the 
        national interests of the United States.
            ``(2) Notification of and report to congress.--If the 
        President decides to exercise the waiver authority provided in 
        paragraph (1), the President shall so notify the Congress not 
        less than 20 days before the waiver takes effect. Such 
        notification shall include a report stating the reasons for 
        exercise of the waiver authority.
    ``(h) Regulatory Implementation of Sanctions.--For items subject to 
the jurisdiction of the Secretary of Commerce under the Export 
Administration Act, sanctions shall be implemented in regulations 
issued by the Secretary and shall specify the scope of products and 
entities. For items subject to the jurisdiction of the Secretary of 
State under this Act, sanctions shall be implemented in regulations 
issued by the Secretary of State and shall specify the scope of 
products and entities.''.

SEC. 13. ANNUAL REPORT.

    (a) Contents.--Not later than March 1 of each year, the Secretary 
shall submit to the Congress a report on the administration of this Act 
during the preceding calendar year. All agencies shall cooperate fully 
with the Secretary in providing information for such report. Such 
report shall include detailed information on--
            (1) the implementation of the policies set forth in section 
        3, including delegations of authority by the President as 
        provided in section 4(e), consultations with the technical 
        advisory committees established pursuant to section 4(g), and 
        any changes in the exercise of the authorities contained in 
        sections 5(a), 6(a), and 7(a);
            (2) adjustments to multilateral export controls; activities 
        involving the license free zones authorized by section 5(f)(4), 
        and determinations under section 5(1), the criteria used to 
        make such determinations, the removal of any export controls 
        under such section, and any evidence demonstrating a need to 
        maintain export controls notwithstanding foreign availability;
            (3) the effectiveness of unilateral export controls imposed 
        under section 5, and any adjustments thereto; and embargoes 
        imposed, maintained, or removed in accordance with section 5, 
        including descriptions of each embargo and the rationale for 
        imposing, maintaining, or removing such embargoes;
            (4) short supply controls and monitoring in accordance with 
        section 6;
            (5) organizational and procedural changes undertaken in 
        furtherance of the policies set forth in this Act, including 
        changes to increase the efficiency of the export licensing 
        process and to fulfill the requirements of section 8, including 
        an accounting of appeals received, and actions taken pursuant 
        thereto under section 8(h);
            (6) violations under section 9, enforcement activities 
        under section 10, and any reviews undertaken in furtherance of 
        the policies of this Act;
            (7) the issuance of regulations under the authority of this 
        Act;
            (8) the results, in as much detail as may be included 
        consistent with multilateral arrangements and the need to 
        maintain the confidentiality of proprietary information and 
        classified information, of the reviews of the Commerce Control 
        List, and any revisions to the Commerce Control List resulting 
        from such reviews, required by section 11; and
            (9) the imposition or removal of sanctions against certain 
        entities and foreign countries in accordance with section 12.
    (b) Report on Certain Export Controls.--To the extent that the 
President determines that the policies set forth in section 3 require 
the control of the export of items other than those subject to 
multilateral controls, or require more stringent controls than the 
multilateral regimes, the President shall include in each annual report 
the reasons for the need to impose, or to continue to impose, such 
controls and the estimated domestic economic impact on the various 
industries affected by such controls.

SEC. 14. DEFINITIONS.

    As used in this Act:
            (1) Affiliates.--The term ``affiliates'' includes both 
        governmental entities and commercial entities that are 
        controlled in fact by target countries.
            (2) Australia group (``ag'').--The term ``Australia Group'' 
        or ``AG'' means the multilateral arrangement in which the 
        United States participates that seeks to prevent the 
        proliferation of chemical and biological weapons.
            (3) Biological weapons convention.--The term ``Biological 
        Weapons Convention'' refers to the ``Convention on the 
        Prohibition of the Development, Production and Stockpiling of 
        Bacteriological (Biological) and Toxin Weapons and on Their 
        Destruction of 1972''.
            (4) Chemical weapons convention.--The term ``Chemical 
        Weapons Convention'' refers to the Convention on the 
        Prohibition of the Development, Production, Stockpiling and Use 
        of Chemical Weapons and on Their Destruction of 1992.
            (5) Commodity.--The term ``commodity'' means any article, 
        natural or manmade substance, material, supply or manufactured 
        product, including inspection of test equipment, and excluding 
        technical data.
            (6) Coordinating committee (``cocom'').--The term 
        ``Coordinating Committee'' or ``COCOM'' means the multilateral 
        organization in which the United States participates that 
        cooperates in restricting transfers of strategic items to 
        certain countries.
            (7) Export.--The term ``export'' means--
                    (A) an actual shipment, transfer, or transmission 
                of items out of the United States;
                    (B) a transfer to any person of items either within 
                the United States or outside of the United States or to 
                an end user, end use, or destination with the knowledge 
                or intent that the items will be shipped, transferred, 
                or transmitted outside the United States; or
                    (C) unless otherwise clear from the context, the 
                term ``export'' includes the term ``reexport'':
Provided, That the Secretary may further define the term by regulation 
to include, among other concepts, that a transfer of items in the 
United States to an embassy or affiliate of a country is an export to 
the country, that disclosure of technology to a foreign national is a 
deemed export to his or her home country, and that transfer of 
effective control from one country to another over a satellite above 
the earth is an export from one country to another.
            (8) Facilitating the activity.--The term ``facilitating the 
        activity'' includes but is not limited to, acting as a freight 
        forwarder, shipper, designated export or import agent, 
        consignee, purchasing agent, marketing agent, manufacturer, 
        assembler, designer, financier, or end user with respect to the 
        services or items to be exported, transferred, or provided.
            (9) Financial transactions.--The term ``financial 
        transactions'' means any transactions involving the exchange, 
        transfer, crediting, debiting, deposit, withdrawal, or payment 
        of currency, securities, debt, credit, checks, other monetary 
        instruments, precious metals or minerals, or other items of 
        value whether physically or by electronic means. The term is 
        intended to be interpreted broadly to include such transactions 
        as the opening or drawing down of letters of credit, the 
        extension of a loan, the receipt of payment, or the use of 
        credit cards.
            (10) Item.--The term ``item'' means any commodity, 
        technology, or software.
            (11) Missile.--The term ``missile'' means any missile 
        system or component listed in category I of the MTCR Annex, and 
        any other unmanned delivery system or component of similar 
        capability, as well as the specially designed production 
        facilities for these systems.
            (12) Missile technology control regime (``mtcr'').--The 
        term ``Missile Technology Control Regime'' or ``MTCR'' means 
        the policy statement and Guidelines between the United States, 
        the United Kingdom, the Federal Republic of Germany, France, 
        Italy, Canada, and Japan, announced on April 16, 1987, to 
        restrict sensitive missile-related transfers based on the MTCR 
        Annex, and any amendments to the Annex or Guidelines.
                    (A) MTCR adherent.--The term ``MTCR adherent'' 
                means a country that is a member of the MTCR or that, 
                pursuant to an international understanding to which the 
                United States is a party, controls MTCR equipment or 
                technology in accordance with the criteria and 
                standards set forth in the MTCR.
                    (B) MTCR annex.--The term ``MTCR Annex'' means the 
                Equipment and Technology Annex of the MTCR and any 
                amendments thereto.
            (13) Multilateral control.--The term ``multilateral 
        control'' means a licensing requirement exercised by the United 
        States and at least one other nation.
            (14) Nuclear suppliers' group (``nsg'').--The term 
        ``Nuclear Suppliers' Group'' or ``NSG'' means the multilateral 
        arrangement in which the United States participates whose 
        purpose is to restrict the transfers of items with relevance to 
        the nuclear fuel cycle and/or nuclear explosive applications.
            (15) Person.--The term ``person'' includes--
                    (A) the single and plural of any individual, 
                corporation, partnership, business association, 
                society, trust, organization, or other group created or 
                organized under the laws of a country; or
                    (B) any government, governmental body, corporation, 
                trust, agency, department, division, or group operating 
                as a business enterprise.
            (16) Protocol on biological warfare.--The term ``Protocol 
        on Biological Warfare'' refers to the Protocol for the 
        Prohibition of the Use in War of Asphyxiating, Poisonous or 
        Other Gases, and of Bacteriological Methods of Warfare of 1925.
            (17) Regime, multilateral export control regime, 
        multilateral regime.--The terms ``regime'' and ``multilateral 
        export control regime'' and ``multilateral regime'' each means 
        an arrangement of two or more countries to which the United 
        States is a party or which the United States would seek to 
        create or join and brought together for the purpose of 
        curtailing access to controlled items by target countries by 
        means of cooperative export controls.
            (18) Reexport.--The term ``reexport'' means the shipment, 
        transfer, transhipment, or diversion of items from one foreign 
        country to another.
            (19) Secretary.--The term ``Secretary'' means the Secretary 
        of Commerce.
            (20) Target country.--The term ``target country'' means a 
        country for which it is the objective under this Act to deny or 
        attempt to deny access to controlled items or a country from 
        which the United States distances itself by means of a 
        unilateral export control adopted under this Act.
            (21) Techology.--The term ``technology'' means specific 
        information required for the ``development'', ``production'', 
        or ``use'' of a product. The information takes the form of 
        ``technical data'' or ``technical assistance''. Controlled 
        ``technology'' is defined in the General Technology Note and in 
        the Commerce Control List.
            (22) Unilateral control.--The term ``unilateral control'' 
        means a license requirement that is not multilaterally agreed 
        to by two or more countries.
            (23) United states.--The term ``United States'' means the 
        States of the United States, the District of Columbia, and any 
        commonwealth, territory, dependency, or possession of the 
        United States, and includes the Outer Continental Shelf, as 
        defined in Section 2(a) of the Outer Continental Shelf Lands 
        Act (43 U.S.C. 1331(a)).
            (24) United states person.--The term ``United States 
        person'' means any United States citizen, resident, national 
        (other than an individual resident outside the United States 
        and employed by other than a United States person), or person 
        within the United States, any domestic concern (including any 
        permanent domestic establishment of any foreign concern) and 
        any foreign subsidiary or affiliate (including any permanent 
        foreign establishment) of any domestic concern which is 
        controlled in fact by such domestic concern, as determined 
        under regulations of the President.
            (25) Weapons of mass destruction.--The term ``weapons of 
        mass destruction'' means any chemical or biological weapons or 
        nuclear explosive devices.

SEC. 15. EFFECTS ON OTHER ACTS.

    (a) Commodity Jurisdiction.--
            (1) Coordination of controls.--The authority granted under 
        this Act and under section 38 of the Arms Export Control Act 
        (22 U.S.C. 2778) shall be exercised by each licensing authority 
        in such a manner as to achieve effective coordination between 
        the dual use and munitions licensing systems and share 
        information regarding the trustworthiness of parties.
            (2) Elimination of overlapping controls.--No item may be 
        included on both the Commerce Control List and the United 
        States Munitions List after the effective date of this Act.
            (3) Commodity jurisdiction dispute resolution.--Under 
        procedures to be established by the President, disputes 
        regarding conflicting claims of jurisdiction between the 
        Commerce Control List and the United States Munitions List 
        shall be resolved in a timely fashion by the Department of 
        State, in consultation with other agencies. Consultations shall 
        be carried out through committees chaired by representatives of 
        the Department of State at the Assistant Secretary or Under 
        Secretary level. The procedures of the committees shall allow 
        the initiation of matters by either the States Department or 
        other agencies including in response to requests to the 
        Departments of State and Commerce. Consultation procedures 
        within the committees shall provide for interagency meetings to 
        permit the free exchange of views regarding jurisdictional 
        issues. Disputes that cannot be resolved may be referred to the 
        President by the Secretary of State, the Secretary of Defense, 
        or the Secretary of Commerce.
    (b) In General.--Except as otherwise provided in this Act, nothing 
contained in this Act shall be construed to modify, repeal, supersede, 
or otherwise affect the provisions of any other laws authorizing 
control over exports of any commodity.
    (c) Amendments to the International Emergency Economic Powers 
Act.--
            (1) The International Emergency Economic Powers Act (50 
        U.S.C. 1707) is amended by adding after the last section the 
        following section 208:

``SEC. 208. CONFIDENTIALITY OF INFORMATION.

    ``(a) Exemptions from Disclosure.--Information obtained under this 
Act may be withheld only to the extent permitted by statute, except 
that information submitted, obtained or considered in connection with 
an application for an export license or other export authorization 
under this Act, including the export license or other export 
authorization itself, classification requests, information obtained 
during the course of a foreign availability assessment, information or 
evidence obtained in the course of any investigation, and information 
obtained or furnished in connection with multilateral agreements, 
treaties, or obligations under this Act shall not be subject to 
disclosure under section 552 of title 5, United States Code, and shall 
be withheld from public disclosure unless the release of such 
information is determined by the Secretary to be in the national 
interest.
    ``(b) Information to Congress and GAO.--
            ``(1) In general.--Nothing in this Act shall be construed 
        as authorizing the withholding of information from the Congress 
        or from the General Accounting Office.
            ``(2) Availability to the congress.--
                    ``(A) In general.--All information obtained at any 
                time under this Act regarding the control of exports, 
                including any report or license application required 
                under this Act, shall upon request be made available to 
                the Committee on Foreign Affairs and the Subcommittee 
                on International Economic Policy and Trade of the House 
                of Representatives and the Committee on Banking, 
                Housing, and Urban Affairs and the Subcommittee on 
                International Finance and Monetary Policy of the 
                Senate. Each of the above designated committees and 
                subcommittees may provide other members of Congress 
                information obtained under this authority provided that 
                such information may not be further disclosed except 
                upon a finding made under the following subparagraph.
                    ``(B) Prohibition on further disclosure.--No such 
                committee or subcommittee, or member thereof, and no 
                other committee, subcommittee, or member of Congress 
                shall disclose any information obtained under this Act 
                or previous Acts regarding the control of exports which 
                is submitted pursuant to this subsection unless one of 
                the above described full committees determines that the 
                withholding of that information is contrary to the 
                national interest.
            ``(3) Availability to the gao.--
                    ``(A) In general.--Notwithstanding paragraph (1), 
                information referred to in subparagraph (B) shall, 
                consistent with the protection of intelligence, 
                counterintelligence, and law enforcement sources, 
                methods, and activities, as determined by the agency 
                that originally obtained the information, and 
                consistent with the provisions of section 313 of the 
                Budget and Accounting Act of 1921, be made available 
                only by the Agency, upon request, to the Comptroller 
                General of the United States or to any officer or 
                employee of the General Accounting Office authorized by 
                the Controller General to have access to such 
                information.
                    ``(B) Prohibition on further disclosures.--No 
                officer or employee of the General Accounting Office 
                shall disclose, except to the Congress in accordance 
                with this paragraph, any such information which is 
                submitted on a confidential basis and from which any 
                individual can be identified.
    ``(c) Penalties for Disclosure of Confidential Information.--Any 
officer or employee of the United States, or any department or agency 
thereof, who publishes, divulges, discloses, or makes known in any 
manner or to any extent not authorized by law any information coming to 
him in the course of his or her employment or official duties or by 
reason of any examination or investigation made by, report or record 
made to or filed with, such department or agency, or officer or 
employee thereof, which information is exempt from disclosure under 
this subsection, shall be fined not more than $1,000, or imprisoned not 
more than one year, or both, and may be removed from office or 
employment and shall be subject to a civil penalty of not more than 
$1,000.''.
            (2) Section 206 of the International Emergency Economic 
        Powers Act (50 U.S.C. 1705) is amended by inserting ``or 
        attempts to violate,'' after ``violates'' in subsection (a); 
        and by inserting ``or willfully attempts to violate,'' after 
        ``violates'' in subsection (b).
    (d) Civil Aircraft Equipment.--Except as necessary to comply with 
international obligations under the International Emergency Economic 
Powers Act (Public Law 95-223) (50 U.S.C. 1701 et seq.) or the United 
Nations Participation Act of 1945, as amended (Public Law 79-264 (22 
U.S.C. 287 et seq.), notwithstanding any other provision of law, any 
product (1) which is standard equipment, certified by the Federal 
Aviation Administration, in civil aircraft and is an integral part of 
such aircraft, and (2) which is to be exported to a country other than 
a controlled country, shall be subject to export controls exclusively 
under this Act. Any such product shall not be subject to controls under 
section 38(b)(2) of the Arms Export Control Act (22 U.S.C. 2778(b)(2)).
    (e) Nuclear Nonproliferation Controls.--
            (1) Nothing in section 5 of this Act shall be construed to 
        supersede the procedures published by the President pursuant to 
        section 309(c) of the Nuclear Non-Proliferation Act of 1978 (42 
        U.S.C. 2139a(c)).
            (2) The procedures published by the President pursuant to 
        section 309(c) of the Nuclear Non-Proliferation act of 1978 (42 
        U.S.C. 2139a(c)) shall be superseded to the extent they are 
        inconsistent with the provisions of section 8 of this Act.
    (f) Conforming Amendment to the Arms Export Control Act.--
            (1) Section 73 of the Arms Export Control Act (Public Law 
        90-626), as amended by section 1703 of the National Defense 
        Authorization Act of 1991 (Public Law 101-510) (U.S.C. 2797B), 
        is hereby repealed.
            (2) Section 81 of the Arms Export Control Act (Public Law 
        90-626), as amended by section 305 of the Miscellaneous Foreign 
        Affairs Act of 1991 (Public Law 102-182) (22 U.S.C. 2798), is 
        hereby repealed.
            (3) Sections 306, 307, 308, and 309(b) of the Chemical and 
        Biological Weapons Control and Warfare Elimination Act of 1991 
        (Public Law 102-182) (22 U.S.C. 5604, 5605, and 5606) are 
        hereby repealed.
            (4) Section 74 of the Arms Export Control Act (Public Law 
        90-626), as amended by section 1703 of the National Defense 
        Authorization Act for Fiscal Year 1991 (Public Law 101-510) (22 
        U.S.C. 2794c) is amended by redesignating ``Section 74'' as 
        ``Section 73''. It is further amended to read as follows:

``SEC. 73. DEFINITIONS.

    ``For purposes of this chapter--
            ``(1) Australia group (`ag').--The term `Australia Group' 
        or `AG' means the multilateral arrangement in which the United 
        States participates that seeks to prevent the proliferation of 
        chemical and biological weapons;
            ``(2) Biological weapons convention.--The term `Biological 
        Weapons Convention' refers to the Convention on the Prohibition 
        of the Development, Production and Stockpiling of 
        Bacteriological (Biological) and Toxin Weapons and on Their 
        Destruction of 1972'';
            ``(3) Chemical weapons convention.--The term `Chemical 
        Weapons Convention' refers to the Convention on the Prohibition 
        of the Development, Production, Stockpiling and Use of Chemical 
        Weapons and on Their Destruction of 1992;
            ``(4) Facilitating the activity.--The term `facilitating 
        the activity' includes but is not limited to, acting as a 
        freight forwarder, shipper, designated export or import agent, 
        consignee, purchasing agent, marketing agent, manufacturer, 
        assembler, designer, financier, or end use with respect to the 
        services or items to be exported, transferred, or provided;
            ``(5) Financial transactions.--The term `financial 
        transactions' means any transactions involving the exchange, 
        transfer, crediting, debiting, deposit, withdrawal, or payment 
        of currency, securities, debt, credit, checks, other monetary 
        instruments, precious metals or minerals, or other items of 
        value whether physically or by electronic means. The term is 
        intended to be interpreted broadly to include such transactions 
        as the opening or drawing down of letters of credit, the 
        extension of a loan, the receipt of payment, or the use of 
        credit cards;
            ``(6) Item.--The term `item' means any commodity, 
        technology, or software;
            ``(7) Missile.--The term `missile' means any missile system 
        or component listed in category I of the MTCR Annex, and any 
        other unmanned delivery system or component of similar 
        capability, as well as the specially designed production 
        facilities for these systems;
            ``(8) Missile technology control regime (`mtcr').--The term 
        `Missile Technology Control Regime' or `MTCR' means the policy 
        statement and guidelines between the United States, the United 
        Kingdom, the Federal Republic of Germany, France, Italy, 
        Canada, and Japan, announced on April 16, 1987, to restrict 
        sensitive missile-related transfers based on the MTCR Annex, 
        and any amendments to the Annex or Regime;
                    ``(A) MTCR adherent.--The term `MTCR adherent' 
                means a country that is a member of the MTCR or that, 
                pursuant to an international understanding to which the 
                United States is a party, controls MTCR equipment or 
                technology in accordance with the criteria and 
                standards set forth in the MTCR;
                    ``(B) MTCR annex.--The term `MTCR Annex' means the 
                Equipment and Technology Annex of the MTCR and any 
                amendments thereto;
            ``(9) Nuclear suppliers' group (`nsg').--The term `Nuclear 
        Suppliers' Group' or `NSG' means the multilateral arrangement 
        in which the United States participates whose purpose is to 
        restrict transfers of items with sensitive nuclear 
        applications;
            ``(10) Person.--The term `person' includes--
                    ``(A) the single and plural of any individual, 
                corporation, partnership, business association, 
                society, trust, organization, or other group created or 
                organized under the laws of a country; or
                    ``(B) any government, governmental body, 
                corporation, trust, agency, department, division, or 
                group operating as a business enterprise;
            ``(11) Protocol on biological warfare.--The term `Protocol 
        on Biological Warfare' refers to the Protocol for the 
        Prohibition of the Use in War of Asphyxiating, Poisonous or 
        Other Gases, and of Bacteriological Methods of Warfare of 1925; 
        and
            ``(12) Weapons of mass destruction.--The term `weapons of 
        mass destruction' means any chemical or biological weapons or 
        nuclear explosive devices.''.
            (5) Section 323 of the Foreign Relations Authorization Act 
        for Fiscal Years 1992-93 (Public Law 102-138) is hereby 
        repealed.
    (g) Effect on Section 38(e) of the Arms Export Control Act.--This 
Act modifies provisions of the Export Administration Act of 1979, as 
amended, which are incorporated by reference in section 38(e) of the 
Arms Export Control Act (22 U.S.C. 2778(e)). The changes made to such 
provisions shall have no effect on the administration and enforcement 
of section 38(e) of the Arms Export Control Act. The relevant 
provisions of the Export Administration Act of 1979, as amended, shall 
continue to have full force and effect for purposes of that Act.
    (Add conforming amendments for the approximately 60 statutory 
references to the EAA in other Federal statutes.)

SEC. 16. AUTHORIZATION OF APPROPRIATIONS.

    Authorization.--There are authorized to be appropriated to the 
Department of Commerce to carry out the purposes of this Act--
            (1) $43,372,000 for fiscal year 1995, and such amounts as 
        may be necessary for fiscal year 1996; and
            (2) such additional amounts for each of the fiscal years 
        1995 and 1996 as may be necessary for increases in salary, pay, 
        retirement, other employee benefits authorized by law, and 
        other non-discretionary costs.

SEC. 17. EFFECTIVE DATE.

    This Act shall take effect upon the expiration of the Export 
Administration Act of 1979.

SEC. 18. SAVINGS PROVISION.

    (a) In General.--All delegations, rules, regulations, orders, 
determinations, licenses, sanctions, or other forms of administrative 
action which have been made, issued, conducted, or allowed to become 
effective under the Export Control Act of 1949, the Export 
Administration Act of 1969, the Export Administration Act of 1979, or 
the Arms Export Control Act and which are in effect at the time this 
Act or the Arms Export Control Act takes effect, shall continue in 
effect according to their terms until modified, superseded, set aside, 
or revoked under this Act or the Arms Export Control Act.
    (b) Repeal.--Title XVII of the National Defense Authorization Act 
for Fiscal Year 1991 (Public Law 101-510) and sections 301-308 and 
309(b) of the Chemical and Biological Weapons Control and Warfare 
Elimination Act of 1991 (Public Law 102-182) and amendments to these 
Acts are hereby repealed.
    (c) Administrative Proceedings.--This Act shall not apply to any 
administrative proceedings commenced or any application for a license 
made, under the Export Administration Act of 1979, which is pending at 
the time this Act takes effect.

                                 <all>

S 1902 IS----2
S 1902 IS----3
S 1902 IS----4
S 1902 IS----5
S 1902 IS----6
S 1902 IS----7
S 1902 IS----8
S 1902 IS----9
S 1902 IS----10
S 1902 IS----11
S 1902 IS----12
S 1902 IS----13
```