II

Calendar No. 474

103D CONGRESS

2D SESSION S. 2203

[Report No. 103–288]

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

IN THE SENATE OF THE UNITED STATES

JUNE 16 (legislative day, JUNE 7), 1994

Mr. RIEGLE, from the Committee on Banking, Housing, and Urban Affairs,

reported the following original bill; which was read twice and placed on

the calendar

A BILL

To improve the administration of export controls, and for

other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Export Administration and Enhancement Act of 1994’’.

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

7 this Act is as follows:

Sec. 1. Short title; table of contents.
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TITLE I—EXPORT CONTROLS

Sec. 101. Short title

Sec. 102. Findings and policies.

Sec. 103. Definitions.

Sec. 104. General provisions.

Sec. 105. National security, nonproliferation, and foreign policy control authorities.

Sec. 106. Short supply controls.

Sec. 107. Foreign boycotts.

Sec. 108. Procedures for processing export license applications; other inquiries.

Sec. 109. Violations.

Sec. 110. Enforcement.

Sec. 111. Authority and procedures.

Sec. 112. Missile proliferation control violations.

Sec. 113. Chemical and biological weapons proliferation sanctions.

Sec. 114. Annual report.

Sec. 115. Effects on other Acts.

Sec. 116. Authorization of appropriations.

Sec. 117. Effective date.

Sec. 118. Savings provisions.

Sec. 119. Conforming amendments.

TITLE II—ENVIRONMENTAL EXPORT PROMOTION ACT OF 1994

Sec. 201. Short title.

Sec. 202. Promotion of United States environmental exports.

1 TITLE I—EXPORT CONTROLS

2 SEC. 101. SHORT TITLE.

3 This title may be cited as the ‘‘Export Administration

4 Act of 1994’’.

5 SEC. 102. FINDINGS AND POLICIES.

6 (a) FINDINGS.—The Congress finds that—

7 (1) export controls are a part of a comprehen8 sive response to national security threats and United

9 States exports should be restricted only for signifi10 cant national security, nonproliferation, foreign pol11 icy, and short supply reasons;

12 (2) the proliferation of weapons of mass de13 struction, their delivery systems, and other signifi-
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1 cant military capabilities has become one of the most

2 serious threats to world peace and to United States

3 national security;

4 (3) exports of certain commodities, technology,

5 and software may adversely affect the national secu6 rity and foreign policy of the United States by mak7 ing a significant contribution to the military poten8 tial of individual countries or by disseminating the

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

10 or use weapons of mass destruction, missile delivery

11 systems, and other significant military capabilities;

12 (4) the national security of the United States

13 depends on a strong national defense and is ground14 ed in a strong national economy;

15 (5) since exports are essential to economic

16 strength in an increasingly global economy, economic

17 interests must play a key role in export control deci18 sions, and, therefore, the rigor of economic analysis

19 and data available in the decisionmaking process

20 must be enhanced;

21 (6) export restrictions that negatively affect the

22 United States industrial base may ultimately weaken

23 United States military capabilities and lead to de24 pendencies on foreign sources for key components;
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1 (7) multilateral export controls are the most ef2 fective export controls, and consistent implementa3 tion and comprehensive enforcement measures to

4 maximize the effectiveness of multilateral controls

5 are of great importance;

6 (8) the multilateral export control system,

7 which helped contain military threats posed by the

8 former Soviet Bloc countries, should be replaced by

9 an effective and efficient multilateral export control

10 program furthering vital interests of the United

11 States in the post-Cold War era;

12 (9) except in the event that the United States

13 is the sole source of critical supplies, unilateral ex14 port controls may not be effective in influencing the

15 behavior of other governments and impeding access

16 by target countries to controlled items, and, there17 fore, unilateral controls may—

18 (A) impede access to United States sources

19 of supply without affecting the ability of target

20 countries to obtain controlled items elsewhere;

21 (B) permit foreign competitors to serve

22 markets that the United States denies to Amer23 ican firms and workers; and
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1 (C) impair the reliability of United States

2 suppliers in comparison with their foreign com3 petitors;

4 (10) the United States export control system

5 should—

6 (A) not be overly restrictive or bureau7 cratic, or unnecessarily undermine the competi8 tive position of American industry; and

9 (B) be efficient, responsive, transparent,

10 and effective; and

11 (11) minimization of restrictions on exports of

12 agricultural commodities and products is of critical

13 importance to—

14 (A) the maintenance of a sound agricul15 tural sector;

16 (B) a positive contribution to the balance

17 of payments;

18 (C) reducing the level of Federal expendi19 tures for agricultural support programs; and

20 (D) United States cooperation in efforts to

21 eliminate malnutrition and world hunger.

22 (b) POLICY.—It is the policy of the United States—

23 (1) after fully weighing the impact on the econ24 omy of the United States, and only to the extent

25 necessary—
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1 (A) to restrict the export of items that

2 would make a significant contribution to the

3 military potential of countries that would prove

4 detrimental to the national security of the

5 United States;

6 (B) to stem the proliferation of weapons of

7 mass destruction and the means to deliver such

8 weapons by controlling involvement and con9 tributions by United States persons to foreign

10 programs intended to design, develop, test,

11 produce, stockpile, or use chemical or biological

12 weapons, nuclear explosive devices, missile deliv13 ery systems, and other significant military ca14 pabilities and the means to design, develop,

15 test, produce, stockpile, or use such capabilities;

16 (C) to restrict the export of items where

17 necessary to significantly further the foreign

18 policy of the United States, including export

19 controls imposed on countries that threaten re20 gional stability or abuse the fundamental

21 human rights of their citizens;

22 (D) to use export controls as part of a

23 comprehensive effort to encourage other coun24 tries to take immediate steps to prevent the use

25 of their territories or resources to aid, encour-
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1 age, or give sanctuary to those persons direct2 ing, supporting, or participating in acts of

3 international terrorism; and

4 (E) to restrict the export of items where

5 necessary to protect the domestic economy from

6 the excessive drain of scarce materials and to

7 secure the removal by foreign countries of re8 strictions on access to supplies where such re9 strictions—

10 (i) have or may have a serious infla11 tionary impact and have caused or may

12 cause a serious domestic shortage; or

13 (ii) have been imposed for purposes of

14 influencing the foreign policy of the United

15 States;

16 (2) to rely increasingly on the multilateral co17 ordination of controls through effective export con18 trol regimes;

19 (3) to lead international efforts to control the

20 proliferation of chemical and biological weapons, nu21 clear explosive devices, missile delivery systems, and

22 other significant military capabilities;

23 (4) to avoid unilateral action if it would damage

24 United States commercial interests without effec-
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1 tively promoting United States national security,

2 nonproliferation, and foreign policy interests;

3 (5) to make every effort to achieve effective

4 multilateral export controls in all cases where the

5 United States imposes unilateral export controls;

6 (6) to streamline export licensing functions and

7 thereby better serve the exporting public by reducing

8 and eliminating overlapping, conflicting, and incon9 sistent regulatory burdens and create a more effi10 cient, responsive, transparent, and effective export

11 control process;

12 (7) to make all licensing decisions in a timely

13 manner to prevent placing United States exporters

14 at a competitive disadvantage;

15 (8) to ensure that control lists are periodically

16 updated to reflect the changing proliferation threat,

17 advances in technology, and a realistic appraisal of

18 what is beyond the reach of effective control and to

19 focus such control lists only on items that, if taken

20 together and if denied to target countries, would

21 carry out the policy of the United States to deny

22 such countries the ability to design, develop, test,

23 produce, stockpile, or use relevant conventional mili24 tary capability, weapons of mass destruction, their

25 delivery systems, or other capabilities the denial of
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1 which are among the goals of United States export

2 control policy;

3 (9) to oppose restrictive trade practices or boy4 cotts fostered or imposed by foreign countries

5 against other countries that are friendly to the Unit6 ed States or against any United States person;

7 (10) to encourage and, in specific cases, require

8 United States persons engaged in the export of com9 modities, software, technology, and other informa10 tion to refuse to take actions, including furnishing

11 information or entering into or implementing agree12 ments, which have the effect of furthering or sup13 porting restrictive trade practices or boycotts fos14 tered or imposed by any foreign country against a

15 country friendly to the United States or against any

16 United States person; and

17 (11) to minimize restrictions on the export of

18 agricultural commodities and products.

19 SEC. 103. DEFINITIONS.

20 For purposes of this title, the following definitions

21 shall apply:

22 (1) AFFILIATES.—The term ‘‘affiliates’’ in23 cludes both governmental entities and commercial

24 entities that are controlled in fact by target coun25 tries.
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1 (2) AUSTRALIA GROUP.—The terms ‘‘Australia

2 Group’’ and ‘‘AG’’ refer to the multilateral arrange3 ment in which the United States participates that

4 seeks to prevent the proliferation of chemical and bi5 ological weapons.

6 (3) BIOLOGICAL WEAPONS CONVENTION.—The

7 term ‘‘Biological Weapons Convention’’ refers to the

8 Convention on the Prohibition of the Development,

9 Production and Stockpiling of Bacteriological (Bio10 logical) and Toxin Weapons and on Their Destruc11 tion of 1972.

12 (4) CHEMICAL WEAPONS CONVENTION.—The

13 term ‘‘Chemical Weapons Convention’’ refers to the

14 Convention on the Prohibition of the Development,

15 Production, Stockpiling and Use of Chemical Weap16 ons and on Their Destruction of 1992.

17 (5) COMMODITY.—The term ‘‘commodity’’

18 means any article, natural or manmade substance,

19 material, supply, or manufactured product, including

20 inspection and test equipment, and excluding tech21 nical data.

22 (6) CONTROL LIST.—The terms ‘‘Control List’’

23 and ‘‘Commerce Control List’’ mean the list estab24 lished by the Secretary in accordance with section

25 104(f).
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1 (7) COORDINATING COMMITTEE.—The terms

2 ‘‘Coordinating Committee’’ or ‘‘COCOM’’ refer to

3 the multilateral organization—

4 (A) in which the United States partici5 pated;

6 (B) that cooperated in restricting transfers

7 of strategic items to certain countries; and

8 (C) that existed until March 31, 1994.

9 (8) DEPARTMENT.—The term ‘‘Department’’

10 means the Department of Commerce.

11 (9) EXPORT.—

12 (A) IN GENERAL.—The term ‘‘export’’—

13 (i) means—

14 (I) an actual shipment, transfer,

15 or transmission of items out of the

16 United States; or

17 (II) a transfer to any person of

18 items either within the United States

19 or outside of the United States or to

20 an end user, end use, or destination

21 with the knowledge or intent that the

22 items will be shipped, transferred, or

23 transmitted outside the United States;

24 and
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1 (ii) unless otherwise clear from the

2 context, includes the term ‘‘reexport’’.

3 (B) SECRETARY’S AUTHORITY TO FUR4 THER DEFINE.—The Secretary may further de5 fine the term ‘‘export’’ by regulation to in6 clude—

7 (i) the transfer of an item in the

8 United States to an embassy or affiliate of

9 a country;

10 (ii) the disclosure of technology to a

11 foreign national to his or her home coun12 try;

13 (iii) a transfer of effective control

14 from one country to another over a sat15 ellite above the earth; and

16 (iv) such other shipments, transfers,

17 or transmissions as the Secretary deter18 mines appropriate.

19 (10) FACILITATION OF AN ACTIVITY.—The

20 term ‘‘facilitation of an activity’’ includes acting as

21 a freight forwarder, shipper, designated export or

22 import agent, consignee, purchasing agent, market23 ing agent, manufacturer, assembler, designer, fin24 ancier, or end user with respect to services or items

25 to be exported, transferred, or provided.
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1 (11) FINANCIAL TRANSACTION.—The term ‘‘fi2 nancial transaction’’ means any transaction involv3 ing the exchange, transfer, crediting, debiting, de4 posit, withdrawal, or payment of currency, securities,

5 debt, credit, checks, other monetary instruments,

6 precious metals or minerals, or other items of value,

7 whether physically or by electronic means. The term

8 includes such transactions as the opening or drawing

9 down of letters of credit, the extension of a loan, the

10 receipt of payment, or the use of credit cards.

11 (12) FOREIGN PERSON.—The term ‘‘foreign

12 person’’ means any person other than a United

13 States person.

14 (13) GENERAL LICENSE.—The term ‘‘general

15 license’’ means a license established by the Secretary

16 for which no application is required and for which

17 no document is granted or issued, authorizing ex18 port.

19 (14) ITEM.—The term ‘‘item’’ means any com20 modity, technology, or software.

21 (15) MILITARILY CRITICAL TECHNOLOGIES

22 LIST.—The terms ‘‘Militarily Critical Technologies

23 List’’ and ‘‘MCTL’’ refer to the list established

24 under section 104(i).
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1 (16) MISSILE.—The term ‘‘missile’’ means any

2 missile system or component listed in category I of

3 the MTCR Annex, and any other unmanned delivery

4 system or component of similar capability, including

5 specially designed production facilities for such sys6 tems.

7 (17) MISSILE TECHNOLOGY CONTROL RE8 GIME.—The terms ‘‘Missile Technology Control Re9 gime’’ and ‘‘MTCR’’ refer to the policy statement

10 and Guidelines between the United States, the

11 United Kingdom, the Federal Republic of Germany,

12 France, Italy, Canada, and Japan, announced on

13 April 16, 1987, to restrict sensitive missile-related

14 transfers based on the MTCR Annex, and any

15 amendments to the MTCR Annex or Guidelines.

16 (18) MTCR ADHERENT.—The term ‘‘MTCR

17 adherent’’ means a country that is a member of the

18 MTCR or that, pursuant to an international under19 standing to which the United States is a party, con20 trols MTCR equipment or technology in accordance

21 with the criteria and standards set forth in the

22 MTCR.

23 (19) MTCR ANNEX.—The term ‘‘MTCR

24 Annex’’ means the Equipment and Technology
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1 Annex of the MTCR and any amendments or succes2 sors thereto.

3 (20) MTCR EQUIPMENT OR TECHNOLOGY.—

4 The terms ‘‘missile equipment or technology’’ and

5 ‘‘MTCR equipment or technology’’ mean those items

6 listed in category I or category II of the MTCR

7 Annex.

8 (21) MULTILATERAL CONTROL.—The term

9 ‘‘multilateral control’’ means an export control im10 posed by the United States and a country or coun11 tries representing a significant number of suppliers.

12 (22) NUCLEAR SUPPLIERS’ GROUP.—The terms

13 ‘‘Nuclear Suppliers’ Group’’ and ‘‘NSG’’ refer to the

14 multilateral arrangement in which the United States

15 participates, the purpose of which is to restrict the

16 transfer of items related to the nuclear fuel cycle,

17 nuclear explosive applications, or both.

18 (23) OTHERWISE ENGAGED IN THE TRADE

19 OF.—The term ‘‘otherwise engaged in the trade of’’

20 means, with respect to a particular export or trans21 fer, to be a freight forwarder or designated export22 ing agent, or a consignee or end user of the item to

23 be exported or transferred.

24 (24) PERSON.—The term ‘‘person’’ includes—
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1 (A) the single and plural of any individual,

2 corporation, partnership, business association,

3 society, trust, organization, or other group cre4 ated or organized under the laws of a country;

5 or

6 (B) any government, governmental body,

7 corporation, trust, agency, department, division,

8 or group operating as a business enterprise.

9 (25) PROTOCOL ON BIOLOGICAL WARFARE.—

10 The term ‘‘Protocol on Biological Warfare’’ refers to

11 the Protocol for the Prohibition of the Use in War

12 of Asphyxiating, Poisonous or Other Gases, and of

13 Bacteriological Methods of Warfare of 1925.

14 (26) REGIME, MULTILATERAL EXPORT CON15 TROL REGIME, MULTILATERAL REGIME.—The terms

16 ‘‘regime’’, ‘‘multilateral export control regime’’, and

17 ‘‘multilateral regime’’ refer to an arrangement of 2

18 or more countries to which the United States is a

19 party, or which the United States would seek to cre20 ate or join, brought together for the purpose of cur21 tailing access to controlled items by target countries

22 by means of cooperative export controls.

23 (27) REEXPORT.—The term ‘‘reexport’’ means

24 the shipment, transfer, transhipment, or diversion of
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1 items that originated in the United States from one

2 foreign country to another.

3 (28) SECRETARY.—The term ‘‘Secretary’’

4 means the Secretary of Commerce.

5 (29) SOFTWARE.—The term ‘‘software’’ means

6 a collection of one or more programs or

7 microprograms fixed in any tangible medium of ex8 pression.

9 (30) TARGET COUNTRY.—The term ‘‘target

10 country’’ means a country for which it is the objec11 tive under this title to deny or attempt to deny ac12 cess to items controlled under this title.

13 (31) TECHNOLOGY.—The term ‘‘technology’’

14 means specific information necessary for the devel15 opment, production, or use of a product. The infor16 mation may take the form of technical data, includ17 ing blueprints, plans, diagrams, models, formulae,

18 tables, engineering designs and specifications, manu19 als, and instructions written or recorded on other

20 media or devices such as disk, tape, or read-only

21 memories, or the form of technical assistance, and

22 includes instruction, skills training, working knowl23 edge, or consulting services.

24 (32) TECHNICAL ADVISORY COMMITTEE.—The

25 term ‘‘technical advisory committee’’ means any
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1 committee established in accordance with section

2 104(j).

3 (33) UNILATERAL CONTROL.—The term ‘‘uni4 lateral control’’ means a control that is not multilat5 eral.

6 (34) UNITED STATES.—The term ‘‘United

7 States’’ means the States of the United States, the

8 District of Columbia, and any commonwealth, terri9 tory, dependency, or possession of the United States,

10 and includes the outer Continental Shelf, as defined

11 in section 2(a) of the Outer Continental Shelf Lands

12 Act.

13 (35) UNITED STATES PERSON.—The term

14 ‘‘United States person’’ means, as determined under

15 regulations of the Secretary—

16 (A) any United States citizen, resident, na17 tional (other than an individual resident outside

18 of the United States and employed by other

19 than a United States person), or person within

20 the United States;

21 (B) any domestic concern (including any

22 permanent domestic establishment of any for23 eign concern); and

24 (C) any foreign subsidiary or affiliate (in25 cluding any permanent foreign establishment)
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1 of any domestic concern that is controlled in

2 fact by such domestic concern.

3 (36) VALIDATED LICENSE.—The term ‘‘vali4 dated license’’ means a document issued by or under

5 the authority of the Secretary authorizing export.

6 (37) WEAPON OF MASS DESTRUCTION.—The

7 term ‘‘weapon of mass destruction’’ means any

8 chemical or biological weapon or nuclear explosive

9 device.

10 SEC. 104. GENERAL PROVISIONS.

11 (a) TYPES OF LICENSES.—The Secretary may re12 quire any type of validated or general license under such

13 terms and conditions as may be imposed by the Secretary

14 for the effective and efficient implementation of this title.

15 (b) RIGHT OF EXPORT.—No authority or permission

16 to export may be required under this title, or under regula17 tions issued under this title, except to carry out the poli18 cies set forth in section 102(b).

19 (c) AUTHORITY.—

20 (1) CONSULTATION REQUIRED.—Except as oth21 erwise specified in this title, the authority contained

22 in this title shall be exercised by the Secretary in

23 consultation with appropriate departments and agen24 cies.
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1 (2) APPEARANCE BEFORE CONGRESS.—The

2 Secretary, Secretary of State, Secretary of Defense,

3 or the Secretary or head of any other department or

4 agency responsible for or assisting with the imple5 mentation of this title, shall appear in person to tes6 tify concerning any matter arising under this title

7 before the Committee on Foreign Affairs of the

8 House of Representatives and the Committee on

9 Banking, Housing, and Urban Affairs of the Senate,

10 at the request of the chair of any such committee.

11 (d) DELEGATION OF AUTHORITY.—The President

12 may delegate the power, authority, and discretion con13 ferred upon the President by this title to such depart14 ments, agencies, or officials of the Government as the

15 President may consider appropriate, except that no au16 thority under this title may be delegated to, or exercised

17 by, any official of any department or agency the head of

18 which is not appointed by the President, by and with the

19 advice and consent of the Senate. The President may not

20 delegate or transfer the President’s power, authority, or

21 discretion to overrule or modify any recommendation or

22 decision made by the Secretary, the Secretary of Defense,

23 or the Secretary of State pursuant to this title.

24 (e) ANNUAL REVIEW.—
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1 (1) REQUIREMENT; PURPOSES.—The President

2 shall direct the appropriate departments and agen3 cies to annually review the impact of export control

4 policies. Such review shall be used as the basis for

5 the President’s annual determination on the imposi6 tion, expansion, or extension of unilateral controls

7 under section 105(c) and for review of the Control

8 List, including United States proposals for revisions

9 of multilateral control lists.

10 (2) CONTENTS.—The review required under

11 paragraph (1) shall include—

12 (A) an economic impact assessment, for

13 each Control List category, describing the eco14 nomic consequences of export controls during

15 the preceding 12-month period, including esti16 mates of any lost United States exports and

17 jobs;

18 (B) a national security and nonprolifera19 tion impact assessment that—

20 (i) describes the impact that export

21 controls have had on advancing United

22 States objectives during the preceding 12-

23 month period;
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1 (ii) analyzes the extent to which

2 United States unilateral controls are being

3 undermined by foreign suppliers; and

4 (iii) evaluates the effectiveness of mul5 tilateral regimes, as required under section

6 105(b)(7); and

7 (C) a foreign policy impact assessment de8 scribing the impact that export controls have

9 had on advancing United States foreign policy

10 objectives during the preceding 12-month period

11 and analyzing the extent to which United

12 States unilateral controls are being undermined

13 by foreign suppliers.

14 (3) TIME REQUIREMENT.—The annual review

15 required under this subsection shall be completed

16 not later than December 31 of each year.

17 (f) CONTROL LIST.—

18 (1) ESTABLISHMENT.—In accordance with the

19 procedures specified in section 105, the Secretary

20 shall establish, publish, and maintain the Control

21 List. The Control list shall—

22 (A) consist of dual-use goods and tech23 nology on which export and reexport controls

24 are imposed under this title;
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1 (B) specify the performance and other

2 identifying characteristics of the controlled

3 items;

4 (C) identify the countries and, consistent

5 with intelligence requirements, end-users within

6 countries to which exports and reexports are

7 controlled;

8 (D) specify validated license requirements;

9 (E) be sufficiently specific and clear to

10 guide exporters and licensing officers in deter11 minations of licensing requirements under this

12 title; and

13 (F) specify whether the control is unilat14 eral or multilateral, and, if multilateral, indicate

15 the regime under which the item is controlled.

16 (2) ANNUAL REVIEW OF CONTROL LIST.—

17 (A) ACTION BY THE SECRETARY.—The

18 Secretary shall, in consultation with appropriate

19 departments and agencies, annually review all

20 items on the Control List—

21 (i) to ensure that requirements for

22 validated licenses are periodically removed

23 as goods and technology become obsolete

24 with respect to the objectives of the con25 trol; and
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1 (ii) to add items to the lists, pursuant

2 to the procedures specified in section 105,

3 consistent with United States national se4 curity, nonproliferation, and foreign policy

5 interests.

6 (B) REVIEW ELEMENTS.—In conducting

7 each review under subparagraph (A), and based

8 on the most recent annual review required

9 under subsection (e), the Secretary shall, for

10 the 12-month period following the completion of

11 that review—

12 (i) identify the specific objectives of

13 the export controls for each country or

14 group of countries for which a validated li15 cense is required;

16 (ii) review the quantity and perform17 ance levels of controlled goods and tech18 nology and determine whether controls on

19 those goods and technology satisfy the ob20 jectives identified under clause (i);

21 (iii) evaluate the availability-in-fact of

22 controlled items in sufficient quantity and

23 comparable quality to target countries; and
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1 (iv) identify items that should be tar2 geted to enhance efforts to combat pro3 liferation and other national security risks.

4 (C) CHANGES IN CONTROLS.—Pursuant to

5 section 105, after completing each review under

6 this paragraph, the Secretary shall, if war7 ranted by the findings of the review and after

8 consultation with appropriate departments and

9 agencies—

10 (i) remove, add, or maintain license

11 requirements;

12 (ii) modify license requirements, in13 cluding making such good or technology el14 igible for delivery under a distribution li15 cense or other license authorization for

16 multiple exports, or a general license;

17 (iii) eliminate, modify, or add a per18 formance threshold or other characteristic

19 upon which the requirement for a validated

20 license for such a good or technology is

21 based; and

22 (iv) modify the Control List in any

23 other appropriate way in accordance with

24 the results of each review.

25 (D) APPEAL TO PRESIDENT.—
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1 (i) IN GENERAL.—The Secretary shall

2 inform appropriate departments and agen3 cies of changes to the Control List. If any

4 agency or department disagrees with a pro5 posed change to the Control List, the dis6 senting agency may appeal the decision to

7 the President not later than 20 days after

8 being informed of such change.

9 (ii) DETERMINATION.—Not later than

10 20 days after receipt of an appeal under

11 clause (i), the President shall notify the

12 Secretary of the President’s determination

13 with respect to the inclusion of such item

14 on the Control List.

15 (E) TIME REQUIREMENT.—The annual re16 view required under this paragraph shall be

17 completed not later than January 31 of each

18 year.

19 (F) HEARINGS.—The Secretary shall con20 duct a public hearing, not less frequently than

21 annually, to solicit information from all inter22 ested parties on all matters to be addressed in

23 each review conducted under this paragraph.

24 (3) MULTILATERAL LIST REVIEW.—
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1 (A) PROPOSALS.—Based upon the annual

2 review required under paragraph (2), the Sec3 retary, in consultation with appropriate depart4 ments and agencies, shall develop United States

5 proposals to revise multilateral regime control

6 lists.

7 (B) NEGOTIATIONS.—The Secretary of

8 State, in consultation with appropriate depart9 ments and agencies, shall conduct negotiations

10 and develop negotiating positions with foreign

11 countries regarding multilateral arrangements

12 for restricting the export of items to carry out

13 this title.

14 (C) FREQUENCY.—The Secretary of State

15 shall seek to ensure that each multilateral re16 gime of which the United States is a member

17 shall review each item on its list of controlled

18 items not less than once every 2 years. If a

19 multilateral regime fails to review an entry on

20 its list of controlled items within 2 years of the

21 prior review, the Secretary of State shall pro22 pose a review by the relevant multilateral re23 gime of such an entry.

24 (g) CONSULTATIONS WITH THE CONGRESS.—The

25 President shall consult with and fully apprise the Con-
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1 gress, including the Committee on Foreign Affairs of the

2 House of Representatives and the Committee on Banking,

3 Housing, and Urban Affairs of the Senate, on changes to

4 the Control List, export control policy, procedures, and

5 other developments related to this title.

6 (h) NOTIFICATION OF THE PUBLIC; CONSULTATION

7 WITH BUSINESS.—

8 (1) PUBLIC PARTICIPATION.—The Secretary

9 shall seek comments and recommendations from the

10 public concerning changes to the Control List and

11 shall keep the public fully apprised of changes in ex12 port control policy and procedures instituted in con13 formity with this title with a view to encouraging

14 trade.

15 (2) BUSINESS PARTICIPATION.—The Secretary

16 shall meet regularly with representatives of a broad

17 spectrum of enterprises, labor organizations, and

18 citizens interested in or affected by export controls,

19 in order to obtain their views on United States ex20 port control policy and the foreign availability of

21 items subject to controls.

22 (i) MILITARILY CRITICAL TECHNOLOGIES LIST.—

23 (1) ESTABLISHMENT.—The Secretary of De24 fense shall be primarily responsible for establishing

25 and maintaining the Militarily Critical Technologies
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1 List. Such list shall identify equipment and tech2 nologies critical to the design, development, test,

3 production, stockpiling, or use of weapons of mass

4 destruction and other significant military capabili5 ties, including nuclear, biological, and chemical

6 weapons, and manned, and unmanned vehicles capa7 ble of delivering such weapons.

8 (2) CONSIDERATIONS.—In developing the

9 MCTL, primary emphasis shall be given to—

10 (A) development and production tech11 nology;

12 (B) test, inspection, and production equip13 ment;

14 (C) advanced materials, chemicals, and bi15 ological agents;

16 (D) unique software; and

17 (E) systems, subsystems, assemblies and

18 components.

19 (3) SPECIFICITY.—The MCTL shall be suffi20 ciently specific to guide the determinations of any

21 official exercising export licensing responsibilities

22 under this title. For purposes of completeness and

23 cross-reference, the MCTL shall include both dual24 use items controlled by this title and other militarily
30

•S 2203 PCS

1 critical items that may be controlled under other au2 thorities.

3 (4) INCLUSION ON CONTROL LIST.—Consistent

4 with the policies set forth in section 102(b) and with

5 the criteria stated in section 105, the Secretary and

6 the Secretary of Defense shall propose integration of

7 items on the MCTL into the Control List.

8 (5) DISAGREEMENTS RESOLVED BY THE PRESI9 DENT.—If the Secretary and the Secretary of De10 fense disagree as to whether any integration, dele11 tion, or other change to the MCTL should also be

12 reflected in the Control List, the President shall re13 solve the disagreement.

14 (6) REVIEW OF MCTL.—The Secretary of De15 fense shall establish a procedure for reviewing the

16 MCTL on an ongoing basis for the purpose of re17 moving items that are no longer militarily critical.

18 The Secretary of Defense may add to the MCTL

19 any item that the Secretary of Defense determines

20 is militarily critical, consistent with paragraph (1).

21 (7) CONTROLS OFFSET.—The establishment of

22 adequate export controls for militarily critical tech23 nology, equipment, and materials shall be accom24 panied by suitable reductions in the controls on the
31

•S 2203 PCS

1 products that incorporate that technology, equip2 ment, and material.

3 (j) TECHNICAL ADVISORY COMMITTEES.—

4 (1) APPOINTMENT.—

5 (A) IN GENERAL.—The Secretary may es6 tablish technical advisory committees on the

7 Secretary’s own initiative or upon written re8 quest by representatives of a substantial seg9 ment of any industry that produces any item

10 subject to export controls under this title, or

11 being considered for such controls.

12 (B) MEMBERSHIP.—Each technical advi13 sory committee shall consist of representatives

14 of United States industry, individuals with tech15 nical expertise on national security and non16 proliferation matters, the Department, and such

17 other Government departments and agencies as

18 may be appropriate. The Secretary shall permit

19 the widest possible participation by the business

20 community on technical advisory committees es21 tablished under this subsection.

22 (2) AUTHORITIES AND RESPONSIBILITIES.—

23 Technical advisory committees established under

24 paragraph (1) shall advise and assist the Secretary

25 and any other Government department, agency, or
32

•S 2203 PCS

1 official to which the President delegates authority

2 under this title, on all aspects of controls imposed or

3 proposed under this title. Such committees, if they

4 have expertise in such matters, shall be consulted on

5 issues involving—

6 (A) revisions of the Control List, as pro7 vided in subsection (f), including United States

8 proposals for revisions to multilateral control

9 lists;

10 (B) the imposition, expansion, or extension

11 of any export controls;

12 (C) foreign availability of items controlled

13 under this title;

14 (D) technical matters;

15 (E) worldwide availability and actual utili16 zation of production technology;

17 (F) licensing procedures that affect the

18 level of export controls applicable to any item;

19 (G) the issuance of regulations;

20 (H) the impact and interpretation of exist21 ing regulations;

22 (I) processes and procedures for review of

23 licenses and policy; and

24 (J) any other issues relating to actions de25 signed to carry out this title.
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1 (3) OTHER CONSULTATION PERMITTED.—Noth2 ing in this subsection shall prevent any agency of

3 the United States from consulting, at any time, with

4 any person representing industry or the general pub5 lic, regardless of whether such person is a member

6 of a technical advisory committee. Members of the

7 public shall be given a reasonable opportunity, pur8 suant to regulations prescribed by the Secretary, to

9 present evidence to such committees.

10 (4) REIMBURSEMENT.—Upon request of any

11 member of any technical advisory committee, the

12 Secretary may reimburse such member for travel,

13 subsistence, and other necessary expenses incurred

14 by the member in connection with the member’s du15 ties on the technical advisory committee, as the Sec16 retary determines to be appropriate.

17 (5) ADMINISTRATIVE PROVISIONS.—Each tech18 nical advisory committee shall elect a chairperson,

19 and shall meet at least every 3 months at the call

20 of the chairperson, unless the chairperson deter21 mines, in consultation with the other members of the

22 committee, that a meeting is not necessary to

23 achieve the purposes of this subsection. Each tech24 nical advisory committee shall be terminated not

25 later than 2 years after the date of its appointment,
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•S 2203 PCS

1 unless extended by the Secretary for additional 2-

2 year periods. The Secretary shall consult each tech3 nical advisory committee on termination or extension

4 of that committee.

5 (6) DISCLOSURES TO COMMITTEES.—

6 (A) CONSISTENT WITH NATIONAL SECU7 RITY.—To facilitate the work of the technical

8 advisory committees, the Secretary, in conjunc9 tion with other departments and agencies par10 ticipating in the administration of this title,

11 shall disclose to each appropriate committee

12 adequate information, consistent with national

13 security, pertaining to the reasons for the ex14 port controls that are in effect or contemplated

15 for the items or policies for which that commit16 tee furnishes advice.

17 (B) FREEDOM OF INFORMATION ACT EX18 EMPTION.—Information provided by and to the

19 technical advisory committees shall not be sub20 ject to disclosure under section 552 of title 5,

21 United States Code, and such information shall

22 not be published or disclosed unless the Sec23 retary determines that withholding such infor24 mation is contrary to the national interest.
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1 (k) FEES.—No fee may be charged in connection

2 with the submission or processing of an export license

3 application.

4 SEC. 105. NATIONAL SECURITY, NONPROLIFERATION, AND

5 FOREIGN POLICY CONTROL AUTHORITIES.

6 (a) AUTHORITY.—

7 (1) IN GENERAL.—To carry out the policies

8 stated in section 102(b), the President may—

9 (A) prohibit or curtail the export of any

10 item subject to the jurisdiction of the United

11 States or exported by any person subject to the

12 jurisdiction of the United States; and

13 (B) restrict the financing, transporting, or

14 other servicing or facilitation of such transfer.

15 (2) ADDITIONAL AUTHORITY.—In accordance

16 with paragraph (1), the President may prohibit or

17 curtail the transfer of goods or technology within the

18 United States to embassies and affiliates of target

19 countries. For purposes of this paragraph, the term

20 ‘‘affiliates’’ includes both governmental entities and

21 commercial entities that are controlled in fact by

22 target countries.

23 (b) MULTILATERAL CONTROLS.—

24 (1) IN GENERAL.—The President shall seek

25 United States membership in multilateral arrange-
36

•S 2203 PCS

1 ments that are intended to secure effective achieve2 ment of the policies set forth in section 102(b).

3 (2) CRITERIA.—Export controls may be im4 posed, expanded, or extended under this section only

5 if—

6 (A) the President determines that the ex7 port controls are essential to advancing the na8 tional security, nonproliferation, or foreign poli9 cies of the United States, as stated in section

10 102(b); and

11 (B) like-minded countries have agreed with

12 the United States on the utility of such export

13 controls in obtaining a shared objective and

14 procedures for implementing that objective.

15 (3) NEGOTIATIONS.—

16 (A) COUNTRIES PARTICIPATING IN CER17 TAIN AGREEMENTS.—The Secretary of State, in

18 consultation with appropriate departments and

19 agencies, shall conduct negotiations with those

20 countries participating in the MTCR, the Aus21 tralia Group, the Nuclear Suppliers’ Group, and

22 other similar regimes that may be established,

23 regarding their cooperation in restricting the

24 export of items in order to carry out the policies

25 stated in section 102(b). Such negotiations shall
37

•S 2203 PCS

1 address, among other issues, which items

2 should be subject to multilaterally agreed upon

3 export restrictions, and the implementation of

4 the restrictions consistent with this title.

5 (B) OTHER COUNTRIES.—The Secretary of

6 State, in consultation with appropriate depart7 ments and agencies, shall be responsible for

8 conducting negotiations with any country or

9 groups of countries not referred to in subpara10 graph (A) regarding cooperation in restricting

11 the export of items consistent with this title.

12 (4) OBJECTIVES FOR MULTILATERAL EXPORT

13 CONTROL REGIMES.—For purposes of creating effec14 tive multilateral export controls and strengthening

15 the controls imposed by export control regimes, the

16 Secretary of State shall, with respect to each export

17 control regime, pursue negotiations with other mem18 bers of such regime to accomplish the following ob19 jectives:

20 (A) ESTABLISHMENT OF VERIFIABLE EX21 PORT CONTROLS.—Establishment of verifiable,

22 effective export control systems by regime mem23 bers that result in comparable implementation,

24 enforcement, sanctions, and statutes of limita25 tions sufficient to deter potential violations.
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•S 2203 PCS

1 (B) ADMINISTRATION OF MULTILATERAL

2 REGIMES.—

3 (i) SECRETARIATS.—Agreement to

4 create secretariats for each nonprolifera5 tion regime, which would hold regular

6 meetings of the regime members so that

7 such regime members can establish regime

8 rules, and establish procedures for the use

9 of databases and the sharing of informa10 tion about the licensing systems and items

11 licensed by each national authority that is

12 a member of the regime.

13 (ii) PERIODIC MEETINGS.—Periodic

14 meetings of high-level representatives of

15 governments participating in the regime

16 for the purpose of coordinating national

17 export control policies and issuing policy

18 guidance.

19 (iii) REGULAR CONSULTATION.—Es20 tablishment of procedures for regular con21 sultation among members of the regime on

22 proposed export license applications to as23 sess the licensing status of exports and to

24 ensure the reliability of end users.
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•S 2203 PCS

1 (iv) ENFORCEMENT PROCEDURES.—

2 Development of effective procedures for en3 forcing the export controls agreed upon by

4 the regime, including adequate training

5 and authority for enforcement officers to

6 investigate and prevent illegal exports.

7 (C) DEVELOPMENT OF LISTS AND VER8 IFICATION PROCESS.—

9 (i) COMMON LIST.—Development of a

10 common list of commodities and technology

11 to which export controls are applied, and a

12 common list of countries and end users,

13 where applicable, to which exports are con14 trolled by members of the regime.

15 (ii) DOCUMENTATION PROCEDURES.—

16 Development of a common system of ex17 port control documentation to verify the

18 proposed movement of commodities and

19 technology.

20 (iii) VIOLATIONS INFORMATION EX21 CHANGE.—Establishment of procedures for

22 the coordination and exchange of informa23 tion concerning violations of controls

24 agreed to by the regime members.
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•S 2203 PCS

1 (iv) INTELLIGENCE INFORMATION EX2 CHANGE.—Establishment of procedures for

3 the coordination and sharing of intelligence

4 information on target countries and con5 trolled end users.

6 (5) OBJECTIVES FOR NATIONAL SYSTEMS.—

7 The Secretary of State, in consultation with appro8 priate departments and agencies, shall take steps to

9 attain the cooperation of multilateral regime mem10 bers in the effective implementation of export control

11 systems and in the establishment and maintenance

12 of such multilateral regimes. The Secretary of State

13 shall seek the inclusion in the national export control

14 systems of regime members of—

15 (A) national laws providing sufficient en16 forcement authorities, civil and criminal pen17 alties, and statutes of limitations sufficient to

18 deter potential violations and punish violators;

19 (B) a program to evaluate export license

20 applications that includes sufficient technical

21 expertise to assess the licensing status of ex22 ports and ensure the reliability of end users;

23 (C) an enforcement mechanism that pro24 vides authority for trained enforcement officers

25 to investigate and prevent prohibited exports;
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•S 2203 PCS

1 (D) a system of export control documenta2 tion to verify the movement of items;

3 (E) procedures for the coordination and

4 exchange of information concerning licensing,

5 end users, and enforcement; and

6 (F) adequate national resources devoted to

7 carrying out subparagraphs (A) through (E).

8 (6) PUBLICATION OF ELEMENTS OF MULTILAT9 ERAL CONTROL REGIMES.—Consistent with arrange10 ments in, and commitments required by, multilateral

11 regimes of which the United States is a member, not

12 later than 6 months after the date of enactment of

13 this Act and not later than 2 months after joining

14 or organizing a new multilateral regime, the Sec15 retary, in consultation with appropriate departments

16 and agencies, shall publish in the Federal Register—

17 (A) the purposes of the export control re18 gime;

19 (B) a list of member countries;

20 (C) the licensing policy of the regime;

21 (D) a list of items subject to controls, to22 gether with all public notes, understandings,

23 and other aspects of such agreement and all

24 changes thereto;
42

•S 2203 PCS

1 (E) a list of any target countries or re2 gions, target end uses, and target end users (in3 cluding any projects of concern);

4 (F) rules of interpretation;

5 (G) major policy actions; and

6 (H) the rules and procedures of the regime

7 for establishing and modifying information re8 ferred to in this paragraph and for reviewing

9 export license applications, as provided for by

10 the regime.

11 The Secretary shall publish any changes in the in12 formation referred to in this paragraph not later

13 than 2 months after adoption of such changes by a

14 multilateral regime of which the United States is a

15 member.

16 (7) ANNUAL EVALUATION OF EFFECTIVENESS

17 OF MULTILATERAL CONTROL REGIMES.—Not less

18 frequently than annually, the Secretary shall evalu19 ate the effectiveness of each multilateral export con20 trol regime of which the United States is a member.

21 The evaluations shall—

22 (A) examine the extent to which each mul23 tilateral regime and its members, including the

24 United States, meet the objectives described in

25 paragraphs (4) and (5); and
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•S 2203 PCS

1 (B) identify—

2 (i) countries, members and

3 nonmembers, that are sources of foreign

4 availability for each item controlled by the

5 regime;

6 (ii) countries that pose risks for di7 verting controlled items to target countries,

8 target end uses, or target end users; and

9 (iii) items not controlled by the regime

10 that the United States believes should be

11 controlled if the multilateral regime is to

12 achieve its objectives.

13 (8) INCENTIVES FOR PARTNERSHIP.—Consist14 ent with the policies stated in section 102(b) and the

15 objectives, rules, and guidelines of an individual mul16 tilateral control regime, the Secretary, in consulta17 tion with appropriate departments and agencies, and

18 based upon the evaluation required under paragraph

19 (7)—

20 (A) may provide for exports free of vali21 dated license requirements to and among mem22 bers of the multilateral regime for items subject

23 to controls under such a multilateral regime, if

24 the members have met the objectives described

25 in paragraph (5); and
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1 (B) may adjust licensing policies for access

2 to items controlled pursuant to this title de3 pending on the degree of adherence to the ob4 jectives described in paragraph (5) of a country

5 or other entity to the export control policies of

6 this section.

7 (9) SUPPORT OF OTHER COUNTRIES’ EXPORT

8 CONTROL PROGRAMS.—The Secretary may partici9 pate in the education and training of officials of

10 other countries on the principles and procedures for

11 the implementation of effective export controls.

12 (10) SUCCESSOR REGIME TO COCOM.—

13 (A) SPECIAL INTERIM LICENSING PROCE14 DURE FOR SECRETARY OF DEFENSE.—

15 (i) RIGHT OF REVIEW.—In addition to

16 any authority provided under section 108,

17 and until the President makes a certifi18 cation under subparagraph (C), the Sec19 retary of Defense—

20 (I) may review any proposed ex21 port of any good or technology to any

22 country to which exports are con23 trolled for national security purposes;

24 and
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•S 2203 PCS

1 (II) if the Secretary of Defense

2 determines that the export of such

3 good or technology would make a sig4 nificant contribution to the military

5 potential of any such country that

6 would prove detrimental to the na7 tional security of the United States,

8 shall recommend to the President that

9 such export be disapproved.

10 (ii) DIFFERING RECOMMENDA11 TIONS.—If the Secretary of Defense makes

12 a recommendation to the President pursu13 ant to clause (i), the Secretary shall sub14 mit his or her recommendation to the

15 President on the request to export if the

16 recommendation of the Secretary differs

17 from that of the Secretary of Defense.

18 (iii) NOTIFICATION.—If the President

19 notifies the Secretary, not later than 20

20 days after receiving a recommendation

21 from the Secretary of Defense under clause

22 (i), that the President disapproves such ex23 port, no license or other authority may be

24 issued for the export of such good or tech-
46

•S 2203 PCS

1 nology to a country referred to in clause

2 (i).

3 (iv) SECRETARY’S DISCRETION.—If

4 the Secretary of Defense fails to make a

5 recommendation to the President within 21

6 days of receipt of an export license applica7 tion for review, or the President, not later

8 than 20 days after receiving a rec9 ommendation from the Secretary of De10 fense with respect to an export, fails to no11 tify the Secretary that the President ap12 proves or disapproves the export, the Sec13 retary shall approve or deny the request

14 for a license to export without regard to

15 such recommendation.

16 (B) SENSE OF THE CONGRESS REGARDING

17 NEGOTIATING OBJECTIVES.—It is the sense of

18 the Congress that the Secretary of State should

19 seek—

20 (i) to prevent arms and other sensitive

21 exports to Iran, Iraq, North Korea, Libya,

22 and any other nation certified by the Sec23 retary of State pursuant to subsection

24 (d)(3)(A) as providing State support for

25 acts of international terrorism, that are
47

•S 2203 PCS

1 contributing to tensions in the Middle East

2 and elsewhere, and to encourage other re3 gime members and prospective members to

4 do the same;

5 (ii) to further the process of engaging

6 countries formerly proscribed by the

7 COCOM in the establishment of effective

8 export control systems and in combating

9 the global proliferation of weapons and

10 sensitive dual-use technology; and

11 (iii) to close gaps in existing non12 proliferation regimes and improve the abil13 ity of the United States to enhance re14 gional stability through transparency and

15 multilateral coordination of national con16 trols on weapons and sensitive dual-use

17 items in a global and regional context.

18 (C) CERTIFICATION OF COCOM SUCCES19 SOR.—If the President determines that a suc20 cessor regime to the COCOM has been estab21 lished that serves the national security interests

22 of the United States, the President shall, imme23 diately upon such establishment, certify such

24 establishment to the Congress.
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•S 2203 PCS

1 (D) APPEARANCE BEFORE CONGRESS.—

2 Not later than 30 days after the date of enact3 ment of this Act and once during every 6-month

4 period thereafter until a certification is made

5 under subparagraph (C), the Secretary and the

6 Secretaries of State and Defense shall transmit

7 a report to the Congress and appear in person

8 to testify before the Committee on Foreign Af9 fairs of the House of Representatives and the

10 Committee on Banking, Housing, and Urban

11 Affairs of the Senate on their progress toward

12 the establishment of a successor regime to the

13 COCOM.

14 (c) UNILATERAL CONTROLS.—

15 (1) DETERMINATION AND CRITERIA.—Based

16 upon the review required by section 104(e), the

17 President shall determine, not less frequently than

18 annually, whether the national interest requires that

19 the President terminate unilateral controls and regu20 lations or maintain them for an additional 12-month

21 period.

22 (2) JUSTIFICATION FOR IMPOSITION, EXPAN23 SION, OR EXTENSION OF UNILATERAL CONTROLS.—

24 Unilateral export controls may be imposed, expanded
49

•S 2203 PCS

1 (or extended) only if the President determines

2 that—

3 (A) such action is essential to advancing

4 the national security, nonproliferation, or for5 eign policies of the United States, as stated in

6 section 102(b), and the objective of the export

7 control is in the overall national interest of the

8 United States and cannot be attained by means

9 other than that export control;

10 (B) the export control would likely make

11 (and has made, as appropriate) substantial

12 progress toward achieving the intended purpose

13 of—

14 (i) changing, modifying, or constrain15 ing the undesirable conduct or policies of

16 the target country or countries;

17 (ii) denying access by the target coun18 try or countries to controlled items from

19 all sources; or

20 (iii) establishing multilateral coopera21 tion to deny the target country or coun22 tries access to controlled items from all

23 sources;

24 (C) the export control would be (and has

25 been, as appropriate) compatible with the for-
50

•S 2203 PCS

1 eign policy objectives of the United States and

2 with overall United States policy toward the

3 target country;

4 (D) the reaction of other countries to the

5 export control is not likely to render the control

6 ineffective (and has not rendered the control in7 effective, as appropriate) in achieving the in8 tended purpose or would be counter-productive

9 to United States policy interests;

10 (E) the adverse effect of the export control

11 on—

12 (i) the export performance of the

13 United States;

14 (ii) the competitive position of the

15 United States as a supplier of items; or

16 (iii) the economic well-being of indi17 vidual United States companies and their

18 employees and communities;

19 will not (and has not, as appropriate) exceed

20 the benefit from such control to the United

21 States national security, nonproliferation, or

22 foreign policy interests; and

23 (F) the United States has the ability to ef24 fectively enforce (and has effectively enforced,

25 as appropriate) the control.
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1 (3) DURATION OF CONTROLS.—Any unilateral

2 control imposed under paragraph (2) shall expire by

3 operation of law on January 31 of each year.

4 (4) REPORT TO CONGRESS.—

5 (A) IN GENERAL.—A unilateral export con6 trol may not be imposed, expanded, or extended

7 under this subsection until the Secretary has

8 submitted to the Congress a report—

9 (i) specifying the purpose of the con10 trol;

11 (ii) specifying the determinations of

12 the President described in paragraph (2),

13 the basis for such determinations, and any

14 possible adverse foreign policy con15 sequences of the control;

16 (iii) describing the nature, the sub17 jects, and the results of, or the plans for

18 the consultation with, industry, the inter19 ested public, and other countries pursuant

20 to paragraph (6);

21 (iv) specifying the nature and results

22 of any alternative means attempted to

23 achieve the objective of the control, or the

24 reasons for imposing, expanding, or ex-
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•S 2203 PCS

1 tending the control without attempting any

2 such alternative means;

3 (v) describing the availability from

4 other countries of items comparable to the

5 items subject to the export control, and de6 scribing the nature and results of the ef7 forts made to secure the cooperation of

8 foreign governments in controlling the for9 eign availability of such comparable goods

10 or technology;

11 (vi) describing how such control would

12 significantly further the policies of the

13 United States stated in section 102(b) or

14 would further its declared international ob15 ligations; and

16 (vii) assessing the economic con17 sequences of each such control, including

18 estimates of any loss of United States ex19 ports and jobs.

20 (B) CLASSIFIED PORTIONS.—To the extent

21 necessary to ensure the effectiveness of unilat22 eral export controls, portions of a report re23 quired by subparagraph (A) may be submitted

24 to the Congress on a classified basis, and shall

25 be subject to the provisions of section 111(d).
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•S 2203 PCS

1 Each such report shall, at the time it is submit2 ted to the Congress, also be submitted to the

3 General Accounting Office for the purpose of

4 assessing the report’s full compliance with this

5 subsection.

6 (5) SEEKING MULTILATERAL SUPPORT FOR

7 UNILATERAL CONTROLS.—The Secretary of State, in

8 consultation with appropriate departments and agen9 cies, shall continually seek support for unilateral ex10 port controls by other countries and by effective

11 multilateral control regimes.

12 (6) CONSULTATIONS.—

13 (A) WITH OTHER COUNTRIES.—When im14 posing, expanding, or extending unilateral ex15 port controls under this subsection, the Presi16 dent shall, at the earliest appropriate oppor17 tunity, consult with the countries with which

18 the United States maintains export controls co19 operatively and with such other countries as ap20 propriate to advise them of the reasons for the

21 unilateral action and to urge them to adopt

22 similar controls.

23 (B) WITH INDUSTRY AND OTHERS.—The

24 Secretary, in every possible instance, shall con25 sult with, and seek advice from, affected United
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•S 2203 PCS

1 States public, industries, and technical advisory

2 committees and seek public comment before the

3 imposition, expansion, or extension of any uni4 lateral export control under this subsection, and

5 on such other matters as the Secretary consid6 ers appropriate.

7 (7) REGULATION INDICATING NATURE OF UNI8 LATERAL CONTROLS.—All unilateral controls im9 posed, expanded, or extended under this subsection

10 shall be indicated as such by regulation.

11 (d) IMPLEMENTATION.—

12 (1) MISSILE TECHNOLOGY.—The Secretary,

13 consistent with section 102(b) and subsections (b)

14 and (c) of this section, and in consultation with ap15 propriate departments and agencies—

16 (A) shall establish and maintain, as part of

17 the Control List, dual-use items on the MTCR

18 Annex;

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

20 List, items that would provide a material con21 tribution to the design, development, test, pro22 duction, stockpiling, or use of missile delivery

23 systems which are not included in the MTCR

24 Annex, but which the United States proposes to
55

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1 the other MTCR adherents for inclusion in the

2 MTCR Annex;

3 (C) shall require an individual validated li4 cense, consistent with MTCR arrangements,

5 for—

6 (i) any export of items on the list re7 ferred to under subparagraphs (A) and (B)

8 to any country; and

9 (ii) any export of items that the ex10 porter knows is destined for a project or

11 facility for the design, development, or

12 manufacture of a missile in a country that

13 is not an MTCR adherent;

14 (D) should, in general, deny licenses de15 scribed in subparagraph (C) if the ultimate con16 signee of the goods or technology is a facility in

17 a country that is not an adherent to the MCTR

18 and the facility is designed to develop or build

19 missiles; and

20 (E) should, in general, approve licenses de21 scribed in subparagraph (C) for the export of

22 items to a country that is an MTCR member or

23 adherent.

24 (2) CHEMICAL AND BIOLOGICAL WEAPONS.—

25 The Secretary, consistent with section 102(b) and
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•S 2203 PCS

1 subsections (b) and (c) of this section, and in con2 sultation with appropriate departments and agen3 cies—

4 (A) shall establish and maintain, as part of

5 the Control List, dual-use items listed by the

6 Australia Group or by the Chemical Weapons

7 Convention;

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

9 List, items that would provide a material con10 tribution to the design, development, test, pro11 duction, stockpiling, or use of chemical or bio12 logical weapons which are not listed by the Aus13 tralia Group, but which the United States pro14 poses to the other Australia Group adherents

15 for inclusion in its list of controlled items; and

16 (C) shall require an individual validated li17 cense, consistent with the arrangements in the

18 Australia Group and the Chemical Weapons

19 Convention, for—

20 (i) any export of items on the lists re21 ferred to in subparagraphs (A) and (B) to

22 any country, except as provided in sub23 section (b)(8); and

24 (ii) any export of items that the ex25 porter knows is destined for a project or
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1 facility for the design, development, or

2 manufacture of a chemical or biological

3 weapon.

4 (3) INTERNATIONAL TERRORISM.—

5 (A) DETERMINATION BY SECRETARY OF

6 STATE.—The Secretary of State shall identify

7 those countries that have repeatedly provided

8 support for acts of international terrorism.

9 (B) PROHIBITION ON EXPORT AND REEX10 PORT.—Notwithstanding subsection (c)(2), ex11 ports and reexports of goods or technologies

12 controlled for national security and non13 proliferation reasons are prohibited to countries

14 identified under subparagraph (A).

15 (C) VALIDATED LICENSE REQUIREMENT.—

16 Notwithstanding subsection (c)(2), a validated

17 license shall be required, and applications shall

18 be subject to a general policy of denial, for ex19 ports and reexports to countries identified

20 under subparagraph (A) of goods and tech21 nologies that are not included under subpara22 graph (B), but that the Secretary of State de23 termines could—
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•S 2203 PCS

1 (i) make a significant contribution to

2 the military potential of any such country,

3 including its military logistics capability; or

4 (ii) enhance the ability of any such

5 country to support acts of international

6 terrorism.

7 (D) NOTIFICATION TO CONGRESS.—The

8 Secretary and the Secretary of State shall no9 tify the Committee on Foreign Affairs of the

10 House of Representatives and the Committee

11 on Banking, Housing, and Urban Affairs and

12 the Committee on Foreign Relations of the Sen13 ate not less than 30 days before issuing any

14 validated license for exports and reexports to a

15 country identified under subparagraph (A).

16 (E) PUBLICATION.—Each identification by

17 the Secretary of State under subparagraph (A),

18 including each determination in effect on the

19 date of enactment of the Anti-terrorism and

20 Arms Export Amendments Act of 1989, shall

21 be published in the Federal Register.

22 (F) RESCISSION.—An identification made

23 by the Secretary of State under subparagraph

24 (A) may not be rescinded unless the President

25 submits to the Speaker of the House of Rep-
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•S 2203 PCS

1 resentatives and the chairman of the Committee

2 on Banking, Housing, and Urban Affairs and

3 the chairman of the Committee on Foreign Re4 lations of the Senate—

5 (i) before the proposed rescission

6 would take effect, a report certifying

7 that—

8 (I) there has been a fundamental

9 change in the leadership and policies

10 of the government of the country con11 cerned;

12 (II) the government of the coun13 try concerned is not supporting acts

14 of international terrorism; and

15 (III) the government of the coun16 try concerned has provided assurances

17 that it will not support acts of inter18 national terrorism in the future; or

19 (ii) not less than 45 days before the

20 proposed rescission would take effect, a re21 port justifying the rescission and certifying

22 that—

23 (I) the government of the country

24 concerned has not provided any sup-
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•S 2203 PCS

1 port for international terrorism during

2 the preceding 6-month period; and

3 (II) the government of the coun4 try concerned has provided assurances

5 that it will not support acts of inter6 national terrorism in the future.

7 (4) HUMAN RIGHTS AND CRIME CONTROL.—

8 (A) APPROVAL OF CRIME CONTROL AND

9 DETECTION EXPORTS.—Crime control and de10 tection instruments and equipment shall be ap11 proved for export by the Secretary only pursu12 ant to a validated export license. Notwithstand13 ing any other provision of this title—

14 (i) any determination of the Secretary

15 of what items shall be included on the Con16 trol List as a result of the export restric17 tion imposed under this paragraph shall be

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

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

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

24 made with the concurrence of the Sec25 retary of State; and
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•S 2203 PCS

1 (iii) if the Secretary does not agree

2 with the Secretary of State with respect to

3 any determination under clause (i) or (ii),

4 the matter shall be referred to the Presi5 dent for resolution.

6 (B) EXCEPTIONS.—This paragraph does

7 not apply to exports to—

8 (i) Canada;

9 (ii) any country which is a member of

10 the European Union;

11 (iii) Norway;

12 (iv) Iceland;

13 (v) Japan;

14 (vi) Australia;

15 (vii) New Zealand; or

16 (viii) such other countries as the

17 President shall designate, consistent with

18 the purposes of this paragraph and section

19 502B of the Foreign Assistance Act of

20 1961.

21 (e) UNFAIR IMPACT ON UNITED STATES EXPORT22 ERS.—

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

24 States that no United States exporter should be

25 placed at a competitive disadvantage to its commer-
62

•S 2203 PCS

1 cial competitors because of differences between other

2 countries and the United States in export control

3 policies or practices unless relief from such controls

4 would create an inimical risk to the national secu5 rity, nonproliferation, or foreign policy interests of

6 the United States.

7 (2) RELIEF FROM EXPORT CONTROLS.—

8 (A) IN GENERAL.—The Secretary, upon

9 the Secretary’s own initiative or upon petition

10 by any person, may grant relief from export

11 control requirements.

12 (B) FINDINGS REQUIRED.—Relief from ex13 port controls shall be granted in accordance

14 with paragraphs (3) and (4) if the Secretary

15 finds, after conducting an evaluation, that there

16 is evidence of any of the following:

17 (i) FOREIGN AVAILABILITY.—The

18 controlled item is available in fact, or the

19 Secretary anticipates it will be available in

20 the near term, following completion of the

21 evaluation, in sufficient quantity and com22 parable quality to the proposed countries

23 of export or end users from sources outside

24 of the United States, so that the require25 ment for a validated license is or would be
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•S 2203 PCS

1 ineffective in achieving the purpose of the

2 control.

3 (ii) INEFFECTIVE CONTROLS.—The

4 controlled items are so widely available in

5 the United States that the Government

6 cannot enforce the controls effectively, un7 less the Secretary has reliable evidence

8 that the controls have been effective in de9 nying such target destination access to the

10 controlled items originating in the United

11 States.

12 (iii) INCONSISTENT CONTROLS.—In13 consistencies between the export control

14 policies, control lists, or procedures of gov15 ernments of foreign suppliers and the

16 United States effectively have placed or

17 would place the United States exporter at

18 a significant near-term commercial dis19 advantage to its competitors abroad.

20 (C) TIMING.—The Secretary shall initiate

21 an evaluation of a petition for relief under this

22 paragraph not later than 30 days after receipt

23 of such petition.

24 (3) DETERMINATION AND RESPONSE.—The

25 Secretary, in consultation with appropriate depart-
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•S 2203 PCS

1 ments and agencies, shall make determinations of

2 facts and, if there are grounds for relief as provided

3 in paragraph (2), shall—

4 (A) consistent with multilateral regimes of

5 which the United States is a member or adher6 ent—

7 (i) change the controlled status of all

8 or some of the items in question so as to

9 eliminate any significant competitive dis10 advantage; or

11 (ii) selectively approve the sale of con12 trolled goods so as to eliminate any signifi13 cant competitive disadvantage; or

14 (B) seek multilateral support to eliminate

15 the source of foreign availability or to enhance

16 an export control to make it effective, except

17 that if such efforts fail to achieve multilateral

18 support to eliminate the source of foreign avail19 ability or to make the control effective, then,

20 not later than 300 days after the date of the

21 initiation of the Secretary’s evaluation, the Sec22 retary shall—

23 (i) provide relief pursuant to subpara24 graph (A);
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•S 2203 PCS

1 (ii) if the Secretary of State, in con2 sultation with appropriate departments

3 and agencies, finds that substantial

4 progress is being made to achieve multilat5 eral support to eliminate the source of for6 eign availability or to make the control ef7 fective—

8 (I) provide not more than 180

9 additional days to continue efforts to

10 secure multilateral agreement; and

11 (II) if efforts to secure multilat12 eral agreement under subclause (I)

13 fail, continue to seek multilateral sup14 port under the options set forth in

15 this subparagraph;

16 (iii) take actions against sources of

17 foreign availability pursuant to paragraph

18 (5); or

19 (iv) deny relief pursuant to paragraph

20 (4).

21 (4) LIMITATION ON RELIEF.—The Secretary

22 may not provide relief to a petitioner under para23 graph (2) if the Secretary or the President deter24 mines that the granting of such relief would create
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•S 2203 PCS

1 an inimical risk to United States national security,

2 nonproliferation, or foreign policy interests.

3 (5) ACTIONS AGAINST SOURCES OF FOREIGN

4 AVAILABILITY.—

5 (A) IN GENERAL.—If the President deter6 mines that any sources of foreign availability

7 that are undermining United States unilateral

8 or multilateral controls pose a significant threat

9 to the national security or nonproliferation in10 terests of the United States, and if sections 112

11 and 113 do not otherwise apply, the President

12 may impose the following prohibitions on the

13 foreign suppliers that are the sources of the for14 eign availability for a period of not more than

15 5 years, and may remove such restrictions and

16 sanctions at any time during such 5-year

17 period:

18 (i) LICENSE DENIAL.—Denial of vali19 dated licenses for items controlled for na20 tional security and nonproliferation rea21 sons.

22 (ii) CONTRACT PROHIBITION.—Prohi23 bition on contracting with, and procure24 ment of products and services from, a

25 sanctioned person, by any department,
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•S 2203 PCS

1 agency, or instrumentality of the United

2 States.

3 (iii) IMPORT PROHIBITION.—Prohibi4 tion on imports into the United States of

5 any or all of the products produced by a

6 sanctioned person.

7 (B) RELIEF FOR CERTAIN DEFENSE-RE8 LATED ITEMS.—The Secretary may not impose

9 import restrictions under subparagraph (A)

10 that are related—

11 (i) to the procurement of defense arti12 cles or defense services—

13 (I) under existing contracts or

14 subcontracts, including the exercise of

15 options for production quantities to

16 satisfy United States operational mili17 tary requirements;

18 (II) if the Secretary determines

19 that the foreign person or other entity

20 to which the controls would otherwise

21 be applied is a sole source supplier of

22 essential defense articles or services

23 and no alternative supplier can be

24 identified; or
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•S 2203 PCS

1 (III) if the Secretary determines

2 that such articles or services are es3 sential to the national security under

4 defense coproduction agreements; or

5 (ii) to—

6 (I) products or services provided

7 under contracts or other binding

8 agreements (as such terms are defined

9 by the Secretary in regulations) en10 tered into before the date on which

11 the Secretary notifies the Congress of

12 the intention to impose the sanctions;

13 (II) spare parts;

14 (III) component parts, but not

15 finished products, essential to United

16 States products or production;

17 (IV) routine servicing and main18 tenance of products; or

19 (V) information and technology.

20 (6) NOTICE PROCEDURES.—

21 (A) DETERMINATIONS THAT CONTROLS

22 ARE NECESSARY.—In any case in which the

23 President or the Secretary determines that ex24 port controls under this subsection must be

25 maintained notwithstanding the existence of
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•S 2203 PCS

1 facts that constitute a basis for granting relief,

2 the Secretary shall publish that determination,

3 together with a statement of its basis and the

4 estimated economic impact of the decision.

5 (B) NOTICE OF EVALUATIONS.—Whenever

6 the Secretary undertakes an evaluation under

7 paragraph (2), the Secretary shall publish no8 tice of the initiation of such evaluation in the

9 Federal Register.

10 (7) PROCEDURES FOR MAKING DETERMINA11 TIONS.—

12 (A) CONSULTATION.—During the conduct

13 of an evaluation under this subsection, the Sec14 retary shall consult with—

15 (i) the appropriate technical advisory

16 committees on the near term foreign avail17 ability of the item, based on the product

18 life cycle of the item; and

19 (ii) other appropriate departments

20 and agencies concerning the conduct of the

21 evaluation.

22 (B) TIMING.—The Secretary shall make a

23 determination as to whether relief is required

24 under paragraph (2) not later than 90 days

25 after the date on which the Secretary’s evalua-
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•S 2203 PCS

1 tion is commenced, and shall so notify the ap2 plicant.

3 (C) REVIEW.—If the Secretary has deter4 mined that relief from export controls under

5 this subsection is appropriate, the Secretary

6 shall, upon making such a determination, sub7 mit the determination for review to appropriate

8 departments and agencies for consultation re9 garding the findings and selected relief. The

10 Secretary’s determination as to eligibility for re11 lief and the nature of the relief to be granted

12 does not require the concurrence or approval of

13 any official, department, or agency to which

14 such a determination is submitted.

15 (D) PUBLICATION.—Not later than 120

16 days from the date on which the Secretary initi17 ates an evaluation under this subsection, the

18 Secretary shall respond in writing to the peti19 tioner and shall publish in the Federal Register,

20 that—

21 (i) in any case in which the Secretary

22 determines that relief should be granted,

23 as applicable—

24 (I) the requirement of a validated

25 license has been removed;
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•S 2203 PCS

1 (II) the control status of all or

2 some of the items in question has

3 been changed so as to eliminate any

4 significant competitive disadvantage;

5 (III) the sale of controlled items

6 has been approved so as to eliminate

7 any significant competitive disadvan8 tage;

9 (IV) pursuant to paragraph (4),

10 export controls under this section will

11 be maintained notwithstanding any

12 finding under paragraph (2), and ne13 gotiations are being undertaken in ac14 cordance with subparagraph (F); or

15 (V) the United States rec16 ommendation to remove the validated

17 license requirement or change the con18 trol status will be submitted to a rel19 evant multilateral regime for consider20 ation for a period of not more than

21 180 days, beginning on the date of

22 the publication; or

23 (ii) a right to relief under paragraph

24 (2) has been determined not to exist.
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1 (E) TIMELINESS.—The Secretary may not

2 require a license for the export of items that

3 are the subject of a petition under paragraph

4 (2) more than 120 days after the initiation of

5 the Secretary’s evaluation under paragraph (2)

6 unless the Secretary has submitted a response

7 for publication as required under subparagraph

8 (D). In the case of a determination made under

9 paragraph (3) to refer a proposed export con10 trol relief to the relevant multilateral regime, no

11 license for such export may be required more

12 than 300 days after the date of the initiation of

13 the Secretary’s evaluation under paragraph (2)

14 unless the Secretary or the President makes a

15 finding under paragraph (4) or other relief is

16 granted under paragraph (3).

17 (F) NEGOTIATIONS TO ELIMINATE FOR18 EIGN AVAILABILITY.—

19 (i) IN GENERAL.—In any case in

20 which export controls are maintained

21 under this section pursuant to paragraph

22 (4), the Secretary of State shall actively

23 pursue negotiations with the governments

24 of the appropriate foreign countries for the

25 purpose of eliminating such foreign avail-
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•S 2203 PCS

1 ability or competitive disadvantage. Not

2 later than the commencement of such ne3 gotiations, the Secretary of State shall no4 tify in writing the Committee on Banking,

5 Housing, and Urban Affairs of the Senate

6 and the Committee on Foreign Affairs of

7 the House of Representatives that such ne8 gotiations have begun and why the Sec9 retary believes it is important that export

10 controls on the items involved be main11 tained to avoid a significant risk to the na12 tional security, nonproliferation, or foreign

13 policy interests of the United States.

14 (ii) AUTHORITY OF SECRETARY OF

15 STATE.—If the Secretary of State has rea16 son to believe that items subject to export

17 controls by the United States may become

18 available from other countries to target

19 countries and that such availability can be

20 prevented or eliminated by means of nego21 tiations with such other countries, the Sec22 retary of State shall promptly initiate ne23 gotiations with the governments of such

24 other countries to prevent such foreign

25 availability.
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•S 2203 PCS

1 (8) SHARING OF INFORMATION.—Each depart2 ment or agency of the United States, including any

3 intelligence agency, and all contractors with any

4 such department or agency, shall, upon the request

5 of the Secretary and consistent with the protection

6 of intelligence sources and methods, furnish informa7 tion to the Department concerning foreign availabil8 ity of items subject to export controls under this sec9 tion. Consistent with the protection of intelligence

10 sources and methods and classification restrictions,

11 each such department or agency shall allow the De12 partment access to such information from a labora13 tory or other facility within such department or

14 agency.

15 (9) AVAILABILITY DEFINED.—

16 (A) IN GENERAL.—For purposes of this

17 subsection, the term ‘‘available in fact to target

18 countries’’ includes production or availability of

19 any item from any country—

20 (i) where the item is not restricted for

21 export to any target country; or

22 (ii) where the export restrictions are

23 determined by the Secretary to be ineffec24 tive.
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•S 2203 PCS

1 (B) EXCEPTION.—For purposes of sub2 paragraph (A)(ii), the mere inclusion of items

3 on a list of items subject to multilateral export

4 controls shall not alone constitute credible evi5 dence of the effectiveness of export restrictions.

6 (10) CONGRESSIONAL NOTIFICATION AND RE7 PORTING REQUIREMENTS.—The Secretary shall an8 nually notify the Committee on Foreign Affairs of

9 the House of Representatives and the Committee on

10 Banking, Housing, and Urban Affairs of the Senate

11 of all petitions for relief made under this subsection,

12 the status of all such petitions, and the rationale for

13 all decisions related to such petitions.

14 (f) INTERNATIONAL OBLIGATIONS.—Notwithstand15 ing any other provision of this title containing limitations

16 on authority to control imports and exports, in order to

17 fulfill obligations of the United States pursuant to resolu18 tions of the United Nations, treaties, or other inter19 national agreements to which the United States is a party,

20 the Secretary, in consultation with appropriate depart21 ments and agencies, may impose controls on exports and

22 imports to and from a target country or region.

23 (g) INFORMATION SHARING.—The Secretary and ap24 propriate officials of the intelligence community, as deter25 mined by the Director of Central Intelligence, and other
76

•S 2203 PCS

1 appropriate Government agencies, shall establish a proce2 dure for information sharing.

3 (h) DENIED PARTIES, SANCTIONED PARTIES, SPE4 CIALLY DESIGNATED NATIONALS, AND OTHER PARTIES

5 PRESENTING UNACCEPTABLE RISKS OF DIVERSION.—

6 (1) DENIED PARTIES, SANCTIONED PARTIES,

7 SPECIALLY DESIGNATED NATIONALS.—The Sec8 retary shall maintain and publish a list of—

9 (A) parties denied export privileges under

10 this title;

11 (B) parties sanctioned for prohibited pro12 liferation activity under this title or other stat13 utes; and

14 (C) specially designated nationals named

15 under the International Emergency Economic

16 Powers Act.

17 (2) OTHER PARTIES.—The Secretary shall

18 maintain a list of parties for whom licenses will be

19 presumptively denied.

20 (i) FREEDOM OF INFORMATION ACT EXEMPTION.—

21 The identity of parties maintained or disclosed pursuant

22 to subsection (h)(2) is not subject to disclosure under sec23 tion 552 of title 5, United States Code.

24 (j) NO EFFECT ON NUCLEAR NON-PROLIFERATION

25 ACT OF 1978.—Nothing in this section shall be construed
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•S 2203 PCS

1 to supersede the procedures published by the President

2 pursuant to section 309(c) of the Nuclear Non-Prolifera3 tion Act of 1978.

4 (k) EXCEPTION FOR HUMANITARIAN PURPOSES.—

5 This title does not authorize the imposition of export con6 trols on donations of items that are intended to meet basic

7 human needs, including food, educational materials, seeds,

8 hand tools, water resources equipment, clothing and shel9 ter materials, and basic household supplies.

10 (l) SPARE PARTS.—

11 (1) IN GENERAL.—An individual validated ex12 port license shall not be required for replacement

13 parts that are exported to replace, on a one-for-one

14 basis, parts that were in a good that was lawfully

15 exported from the United States.

16 (2) EXCEPTION.—Concurrent with the imposi17 tion or expansion of export controls under this sec18 tion, the President may determine that such export

19 controls will apply to replacement parts for parts in

20 goods subject to such export controls.

21 (m) ASSESSMENT OF ENCRYPTION SOFTWARE MAR22 KET.—

23 (1) PRESIDENTIAL REPORT REQUIRED.—Not

24 later than 150 days after the date of enactment of

25 this Act, the President shall submit a report to the
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1 Committee on Banking, Housing, and Urban Affairs

2 of the Senate and the Committee on Foreign Affairs

3 of the House of Representatives.

4 (2) CONTENTS OF REPORT.—The report re5 quired by paragraph (1) shall—

6 (A) assess the current and future inter7 national market for computer software with

8 encryption;

9 (B) assess the impact of United States

10 encryption export controls on the international

11 competitiveness of the United States computer

12 software industry and their economic con13 sequences, including the impact on exports and

14 jobs in the United States computer software in15 dustry; and

16 (C) review the types, quality and market

17 penetration of foreign produced encryption soft18 ware products and any controls that influence

19 the international marketability of encryption

20 software products.

21 (3) CONSULTATION.—In preparing the report

22 required under paragraph (1), the President shall

23 consult with representatives of the United States

24 computer software industry. Confidential business

25 information provided by United States industry in
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•S 2203 PCS

1 the course of preparing the report shall not be dis2 closed, except with the permission of the submitter

3 or when aggregated so that the source of the infor4 mation cannot be identified.

5 SEC. 106. SHORT SUPPLY CONTROLS.

6 (a) AUTHORITY.—

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

8 policy stated in section 102(b)(1)(E), the President

9 may prohibit or curtail the export of any item sub10 ject to the jurisdiction of the United States, or ex11 ported by any person subject to the jurisdiction of

12 the United States. In curtailing exports to carry out

13 the policy stated in section 102(b)(1)(E), the Presi14 dent shall allocate a portion of export licenses on the

15 basis of factors other than a prior history of expor16 tation. Such factors shall include—

17 (A) the extent to which a country engages

18 in equitable trade practices for United States

19 items; and

20 (B) treats the United States equitably in

21 times of short supply.

22 (2) PUBLICATION OF RESTRICTIONS.—The Sec23 retary shall publish in the Federal Register notice of

24 the imposition of quantitative restrictions on the ex25 port of any item to carry out the policy set forth in
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•S 2203 PCS

1 section 102(b)(1)(E). Such notice shall invite all in2 terested parties to submit written comments during

3 the 15-day period beginning on the date of publica4 tion of the notice regarding the impact of such re5 strictions, and the method of licensing used to imple6 ment them.

7 (3) EXPORT LICENSE FEES.—Notwithstanding

8 section 104(k), in imposing export controls under

9 this section, the President’s authority shall include

10 the imposition of export license fees.

11 (b) MONITORING.—

12 (1) IMPACT ON THE ECONOMY.—In order to

13 carry out the policy stated in section 102(b)(1)(E),

14 the Secretary shall monitor exports and contracts

15 for exports, of any good (other than a commodity

16 subject to the reporting requirements of section 602

17 of the Agricultural Trade Act of 1978), if—

18 (A) the volume of such exports in relation

19 to domestic supply contributes, or may contrib20 ute, to an increase in domestic prices or a do21 mestic shortage; and

22 (B) such price increase or shortage has, or

23 may have, a serious adverse impact on any part

24 of the United States economy.
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1 (2) TIMELINESS.—Any monitoring undertaken

2 in accordance with paragraph (1) shall commence at

3 a time adequate to assure that it will result in a

4 data base sufficient to enable policies to be devel5 oped, in accordance with the policy stated in section

6 102(b)(1)(E)—

7 (A) to mitigate a short supply situation or

8 serious inflationary price rise; or

9 (B) if export controls are needed, to permit

10 imposition of such controls in a timely manner.

11 (3) CONFIDENTIALITY.— Except as provided in

12 paragraph (4), information required to be furnished

13 to the Secretary in effecting monitoring in accord14 ance with paragraph (1) shall be confidential.

15 (4) REPORTS.—

16 (A) IN GENERAL.—The results of monitor17 ing undertaken in accordance with paragraph

18 (1) shall, to the extent practicable, be aggre19 gated and included in weekly reports setting

20 forth, for each item monitored—

21 (i) actual and anticipated exports;

22 (ii) the destination by country of such

23 item; and

24 (iii) the domestic and worldwide price,

25 supply, and demand.
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•S 2203 PCS

1 (B) ALTERNATIVE TIMING.—Reports re2 quired under subparagraph (A) may be made

3 monthly if the Secretary determines that there

4 is insufficient information to justify weekly re5 ports.

6 (c) DOMESTICALLY PRODUCED CRUDE OIL.—

7 (1) GENERAL LIMITATION ON EXPORTS.—Not8 withstanding any other provision of this title and

9 section 28(u) of the Mineral Leasing Act, no domes10 tically produced crude oil transported by pipeline

11 over right-of-way granted pursuant to section 203 of

12 the Trans-Alaska Pipeline Authorization Act may be

13 exported from the United States, or from any of its

14 territories and possessions, except as provided in

15 paragraph (2).

16 (2) EXPORTS PERMITTED.—Crude oil subject to

17 the prohibition contained in paragraph (1) may be

18 exported only if—

19 (A) the President recommends such per20 mission to the Congress after making and pub21 lishing express findings that exports of such

22 crude oil, including exchanges—

23 (i) will not diminish the total quantity

24 or quality of petroleum refined within,

25 stored within, or legally committed to be
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•S 2203 PCS

1 transported to and sold within the United

2 States;

3 (ii) will, not later than 3 months after

4 the initiation of such exports or changes,

5 result in—

6 (I) acquisition costs to the refin7 ers that purchase the imported crude

8 oil that are lower than the acquisition

9 costs such refiners would have to pay

10 for the domestically produced oil in

11 the absence of such an export or ex12 change; and

13 (II) not less than 75 percent of

14 such savings in costs being reflected

15 in wholesale and retail prices of prod16 ucts refined from such imported crude

17 oil;

18 (iii) will be made only pursuant to

19 contracts that may be terminated if the

20 crude oil supplies of the United States are

21 interrupted, threatened, or diminished;

22 (iv) are clearly necessary to protect

23 the national interests; and

24 (v) are in accordance with the provi25 sions of this title; and
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•S 2203 PCS

1 (B) the President includes the findings

2 made under subparagraph (A) in the Presi3 dent’s recommendation to the Congress and the

4 Congress, not later than 60 days after receiving

5 that recommendation, adopts a joint resolution

6 that approves such exports on the basis of those

7 findings.

8 (3) OIL SUPPLY AGREEMENT EXCEPTION.—

9 Notwithstanding any other provision of this section,

10 or any other provision of law, the President may ex11 port oil to any country pursuant to a bilateral inter12 national oil supply agreement entered into by the

13 United States with such country before June 25,

14 1979, or to any country pursuant to the Inter15 national Emergency Oil Sharing Plan of the Inter16 national Energy Agency.

17 (4) OCEAN TRANSPORTATION REQUIREMENT.—

18 Any ocean transportation of domestically produced

19 crude oil transported by pipeline over right-of-way

20 granted pursuant to section 203 of the Trans-Alaska

21 Pipeline Authorization Act shall be by vessels docu22 mented under section 12106 of title 46, United

23 States Code, if such crude oil—

24 (A) is exported to an adjacent foreign

25 country to be refined and consumed therein in
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1 exchange for the same quantity of crude oil

2 being exported from that country to the United

3 States, and which exchange will result, through

4 convenience or increased efficiency of transpor5 tation, in lower prices for consumers of petro6 leum products in the United States, as de7 scribed in paragraph (2)(A)(ii);

8 (B) is temporarily exported for convenience

9 or increased efficiency of transportation across

10 parts of an adjacent foreign country and reen11 ters the United States; or

12 (C) is transported to Canada, to be

13 consumed therein, in amounts not to exceed an

14 annual average of 50,000 barrels per day (in

15 addition to exports under paragraph (2)).

16 (5) OIL EXPORTS FOR USE BY UNITED STATES

17 MILITARY FACILITIES.—For purposes of this sub18 section and of any other export controls imposed

19 under this title, shipments of crude oil, refined pe20 troleum products, or partially refined petroleum

21 products from the United States for use by the De22 partment of Defense or United States-supported in23 stallations or facilities shall not be considered to be

24 exports.

25 (d) AGRICULTURAL COMMODITIES.—
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1 (1) APPROVAL BY SECRETARY OF AGRI2 CULTURE.—

3 (A) IN GENERAL.—The authority con4 ferred by this section shall not be exercised for

5 any agricultural commodity, including fats, oils,

6 animal hides, or skins, without the approval of

7 the Secretary of Agriculture. The Secretary of

8 Agriculture shall not approve the exercise of

9 such authority for any such commodity during

10 any period for which the supply of such com11 modity is determined by the Secretary of Agri12 culture to be in excess of the requirements of

13 the domestic economy, except to the extent that

14 the President determines that such exercise of

15 authority is required to carry out the policies

16 stated in subparagraph (A) or (C) of section

17 102(b)(1).

18 (B) COLLECTION OF DATA.—The Sec19 retary of Agriculture shall, by exercising the au20 thority which the Secretary of Agriculture has

21 under other applicable provisions of law, collect

22 data on export sales of animal hides and skins.

23 (2) AGRICULTURAL COMMODITIES PURCHASED

24 OR USED BY A FOREIGN COUNTRY.—Upon approval

25 of the Secretary, in consultation with the Secretary
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1 of Agriculture, agricultural commodities purchased

2 by or for use in a foreign country may remain in the

3 United States for export at a later date free from

4 any quantitative limitations on export which may be

5 imposed to carry out the policy stated in section

6 102(b)(1)(E) subsequent to such approval. The Sec7 retary may not grant such approval unless the Sec8 retary receives adequate assurance and, in conjunc9 tion with the Secretary of Agriculture, finds that—

10 (A) such commodities will eventually be ex11 ported;

12 (B) neither the sale nor export thereof will

13 result in an excessive drain of scarce materials

14 and have a serious domestic inflationary im15 pact;

16 (C) storage of such commodities in the

17 United States will not unduly limit the space

18 available for storage of domestically owned com19 modities; and

20 (D) the purpose of such storage is to es21 tablish a reserve of such commodities for later

22 use, not including resale to or use by another

23 country.

24 (3) CONGRESSIONAL APPROVAL OF CON25 TROLS.—
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1 (A) REPORT REQUIRED.—If the President

2 imposes export controls on any agricultural

3 commodity in order to carry out the policy stat4 ed in subparagraph (A), (C), (D), or (E) of sec5 tion 102(b)(1), the President shall immediately

6 transmit a report on such action to the Con7 gress, setting forth the reasons for the controls

8 in detail and specifying the periods of time, not

9 to exceed 1 year, that the controls are proposed

10 to be in effect. If the Congress, not later than

11 60 days after the date after receipt of the re12 port, adopts a joint resolution pursuant to

13 paragraph (4) approving the imposition of the

14 export controls, such controls shall remain in

15 effect for the period specified in the report, or

16 until terminated by the President, whichever oc17 curs first. If the Congress, within 60 days after

18 the date of receipt of such report, fails to adopt

19 a joint resolution approving such controls, then

20 such controls shall cease to be effective upon

21 the expiration of that 60-day period.

22 (B) EXCEPTIONS.—The provisions of sub23 paragraph (A) and paragraph (4) do not apply

24 to export controls that—
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1 (i) are extended under this title if the

2 controls, when imposed, were approved by

3 the Congress under subparagraph (A), or

4 paragraph (4); or

5 (ii) are imposed on exports to a coun6 try as part of the prohibition or curtail7 ment of all exports to that country.

8 (4) APPROVAL BY JOINT RESOLUTION.—

9 (A) DEFINITION.—For purposes of this

10 paragraph, the term ‘‘joint resolution’’ means

11 only a joint resolution the matter after the re12 solving clause of which is as follows: ‘‘That pur13 suant to section 106(d)(3) of the Export Ad14 ministration Act of 1994, the President may

15 impose export controls as specified in the report

16 submitted to the Congress on llllll.’’,

17 with the blank space being filled with the ap18 propriate date.

19 (B) INTRODUCTION.—On the day on which

20 a report is submitted to the House of Rep21 resentatives and the Senate under paragraph

22 (3), a joint resolution on the export controls

23 specified in such report shall be introduced (by

24 request) in the House by the chairman of the

25 Committee on Foreign Affairs, for himself and
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1 the ranking minority member of the Committee,

2 or by Members of the House designated by the

3 chairman and ranking minority member; and

4 shall be introduced (by request) in the Senate

5 by the majority leader of the Senate, for himself

6 and the minority leader of the Senate, or by

7 Members of the Senate designated by the ma8 jority leader and minority leader of the Senate.

9 If either House is not in session on the day on

10 which such a report is submitted, the joint reso11 lution shall be introduced in that House, as

12 provided in the preceding sentence, on the first

13 day thereafter on which that House is in ses14 sion.

15 (C) REFERRAL.—All joint resolutions in16 troduced in the House of Representatives shall

17 be referred to the appropriate committee and

18 all joint resolutions introduced in the Senate

19 shall be referred to the Committee on Banking,

20 Housing, and Urban Affairs.

21 (D) DISCHARGE FROM COMMITTEE.—If

22 the committee of either House to which a joint

23 resolution has been referred has not reported

24 the joint resolution at the end of 30 days after

25 its referral, the committee shall be discharged
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1 from further consideration of the resolution or

2 of any other joint resolution introduced on the

3 same matter.

4 (E) CONSIDERATION PROCEDURES.—

5 (i) SENATE.—A joint resolution under

6 this paragraph shall be considered in the

7 Senate in accordance with the provisions of

8 section 601(b)(4) of the International Se9 curity Assistance and Arms Export Control

10 Act of 1976.

11 (ii) HOUSE OF REPRESENTATIVES.—

12 It shall be in order for the Committee on

13 Rules of the House of Representatives to

14 present for consideration a resolution of

15 the House of Representatives providing

16 procedures for the immediate consideration

17 of a joint resolution under this paragraph

18 which may be similar, if applicable, to the

19 procedures set forth in section 601(b)(4) of

20 the International Security Assistance and

21 Arms Export Control Act of 1976.

22 (F) CONSIDERATION AFTER PASSAGE BY

23 ONE HOUSE.—In the case of a joint resolution

24 described in subparagraph (A), if, before the

25 passage by one House of a joint resolution of
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1 that House, that House receives a resolution on

2 the same matter from the other House, then—

3 (i) the procedure in the House shall

4 be the same as if no joint resolution has

5 been received from the other House; but

6 (ii) the vote on final passage shall be

7 on the joint resolution of the other House.

8 (5) COMPUTATION OF TIME.—In the computa9 tion of the period of 60 days referred to in para10 graph (3) and the period of 30 days referred to in

11 paragraph (4)(D), there shall be excluded the days

12 on which either House of Congress is not in session

13 because of an adjournment of more than 3 days to

14 a day certain or because of an adjournment of the

15 Congress sine die.

16 (6) EFFECT ON CONTRACTS TO EXPORT.—Any

17 export controls imposed under this section on any

18 agricultural commodity (including fats, oils, animal

19 hides, and skins) or on any forest product or fishery

20 product, shall not affect any contract to export en21 tered into before the date on which such controls are

22 imposed. For purposes of this paragraph, the term

23 ‘‘contract to export’’ includes an export sales agree24 ment and an agreement to invest in an enterprise

25 which involves the export of goods or technology.
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1 (e) BARTER AGREEMENTS.—

2 (1) EXEMPTION AUTHORIZED.—The expor3 tation pursuant to a barter agreement of any item

4 that may be lawfully exported from the United

5 States, or for any item which may be lawfully im6 ported into the United States, shall be exempted, in

7 accordance with paragraph (2), from any quan8 titative limitation on exports (other than any report9 ing requirement) imposed to carry out the policy set

10 forth in section 102(b)(1)(E).

11 (2) FINDINGS REQUIRED.—The Secretary shall

12 grant an exemption under paragraph (1) if the Sec13 retary finds, after consultation with the appropriate

14 department or agency of the United States, that—

15 (A) for the period during which the barter

16 agreement is to be performed—

17 (i) the average annual quantity of the

18 item to be exported pursuant to the barter

19 agreement will not be required to satisfy

20 the average amount of such item estimated

21 to be required annually by the domestic

22 economy and will be surplus thereto; and

23 (ii) the average annual quantity of the

24 item to be imported will be less than the

25 average amount of such item estimated to
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•S 2203 PCS

1 be required annually to supplement domes2 tic production; and

3 (B) the parties to such barter agreement

4 have demonstrated adequately that they intend,

5 and have the capacity, to perform such barter

6 agreement.

7 (3) DEFINITION.—For purposes of this sub8 section, the term ‘‘barter agreement’’ means any

9 agreement which is made for the exchange, without

10 monetary consideration, of any item produced in the

11 United States for any item produced outside of the

12 United States.

13 (4) APPLICABILITY.—This subsection shall

14 apply only to barter agreements entered into after

15 September 30, 1979.

16 (f) UNPROCESSED RED CEDAR.—

17 (1) EXPORT PROHIBITION.—No unprocessed

18 western red cedar logs (also referred to as ‘‘Thuja

19 plicata’’) harvested from Federal or State lands may

20 be exported from the United States.

21 (2) EXCLUSION.—Unprocessed western red

22 cedar logs shall not be considered to be an agricul23 tural commodity for purposes of subsection (d).

24 (3) DEFINITION.—For purposes of this sub25 section, the term ‘‘unprocessed western red cedar’’
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•S 2203 PCS

1 means red cedar timber which has not been proc2 essed into—

3 (A) lumber of American Lumber Stand4 ards Grades of Number 3 dimension or better,

5 or Pacific Lumber Inspection Bureau Export

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

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

8 (C) veneer and plywood;

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

10 with preservative for use as such and not in11 tended to be further processed; or

12 (E) shakes and shingles.

13 (4) EXEMPTION.—Unprocessed western red

14 cedar logs harvested from land located in Alaska are

15 exempt from this subsection.

16 (5) EFFECT ON EXISTING CONTRACTS.—The

17 export restrictions contained in this subsection, and

18 any other export controls imposed under this section

19 shall not affect any contract to harvest unprocessed

20 western red cedar from State lands which was en21 tered into before October 1, 1979, and the perform22 ance of which would make the red cedar available

23 for export.

24 SEC. 107. FOREIGN BOYCOTTS.

25 (a) PROHIBITIONS AND EXCEPTIONS.—
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1 (1) REGULATIONS.—For the purpose of imple2 menting the policies stated in paragraphs (9) and

3 (10) of section 102(b), the President shall issue reg4 ulations prohibiting any United States person, with

5 respect to his or her activities in the interstate or

6 foreign commerce of the United States, from taking

7 or knowingly agreeing to take any of the following

8 actions with the intent to comply with, further, or

9 support any boycott fostered or imposed by a foreign

10 country against a country which is friendly to the

11 United States and which is not itself the object of

12 any form of boycott pursuant to United States law

13 or regulation:

14 (A) BUSINESS RELATIONS.—Refusing or

15 requiring any other person to refuse to do busi16 ness—

17 (i) with or in the boycotted country;

18 (ii) with any business concern orga19 nized under the laws of the boycotted

20 country;

21 (iii) with any national or resident of

22 the boycotted country; or

23 (iv) with any other person;

24 pursuant to an agreement with, a requirement

25 of, or a request from or on behalf of the boy-
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1 cotting country. The mere absence of a business

2 relationship with or in the boycotted country

3 with any business concern organized under the

4 laws of the boycotted country, with any national

5 or resident of the boycotted country, or with

6 any other person, does not indicate the exist7 ence of the intent required to establish a viola8 tion of regulations issued to carry out this sub9 paragraph.

10 (B) EMPLOYMENT.—Refusing, or requiring

11 any other person to refuse to employ or other12 wise discriminate against any United States

13 person on the basis of race, religion, sex, or na14 tional origin of that person, or of any owner, of15 ficer, director, or employee of such person.

16 (C) DEMOGRAPHIC INFORMATION.—Fur17 nishing information with respect to the race, re18 ligion, sex, or national origin of any United

19 States person, or of any owner, officer, director,

20 or employee of such person.

21 (D) BUSINESS INFORMATION.—Furnishing

22 information about whether any person has, has

23 had, or proposes to have any business relation24 ship (including a relationship by way of sale,

25 purchase, or legal or commercial representation,
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1 shipping or other transport, insurance, invest2 ment, or supply) with or in the boycotted coun3 try, with any business concern organized under

4 the laws of the boycotted country, with any na5 tional or resident of the boycotted country, or

6 with any other person known or believed to be

7 restricted from having any business relationship

8 with or in the boycotting country. Nothing in

9 this subparagraph shall prohibit the furnishing

10 of normal business information in a commercial

11 context, as defined by the Secretary.

12 (E) INFORMATION ON ASSOCIATIONS.—

13 Furnishing information about whether any per14 son is a member of, has contributed to, or is

15 otherwise associated with or involved in the ac16 tivities of any charitable or fraternal organiza17 tion which supports the boycotting country.

18 (F) FINANCIAL INCENTIVES.—Paying,

19 honoring, confirming, or otherwise implement20 ing a letter of credit which contains any condi21 tion or requirement compliance with which is

22 prohibited by regulations issued pursuant to

23 this paragraph. No United States person shall,

24 as a result of the application of this subpara-
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1 graph, be obligated to pay or otherwise honor

2 or implement such letter of credit.

3 (2) EXCEPTIONS.—Regulations issued pursuant

4 to paragraph (1) shall provide exceptions for—

5 (A) complying or agreeing to comply with

6 requirements—

7 (i) prohibiting the import of items or

8 services from the boycotted country or

9 items produced or services provided by any

10 business concern organized under the laws

11 of the boycotted country or by nationals or

12 residents of the boycotted country; or

13 (ii) prohibiting the shipment of items

14 to the boycotted country on a carrier of the

15 boycotted country, or by a route other than

16 that prescribed by the boycotting country

17 or the recipient of the shipment;

18 (B) complying or agreeing to comply with

19 import and shipping document requirements

20 with respect to the country of origin, the name

21 of the carrier and route of shipment, the name

22 of the supplier of the shipment or the name of

23 the provider of other services, except that no in24 formation knowingly furnished or conveyed in

25 response to such requirements may be stated in
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•S 2203 PCS

1 negative, blacklisting, or similar exclusionary

2 terms, other than with respect to carriers or

3 route of shipment as may be permitted by such

4 regulations in order to comply with precaution5 ary requirements protecting against war risks

6 and confiscation;

7 (C) complying or agreeing to comply in the

8 normal course of business with the unilateral

9 and specific selection by a boycotting country,

10 or national or resident thereof, of carriers, in11 surers, suppliers of services to be performed

12 within the boycotting country or specific items

13 which, in the normal course of business, are

14 identifiable by source when imported into the

15 boycotting country;

16 (D) complying or agreeing to comply with

17 export requirements of the boycotting country

18 relating to shipments or transshipment of ex19 ports to the boycotted country, to any business

20 concern of, or organized under the laws of, the

21 boycotted country, or to any national or resi22 dent of the boycotted country;

23 (E) compliance by an individual or agree24 ment by an individual to comply with the immi25 gration or passport requirements of any country
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1 with respect to such individual or any member

2 of such individual’s family or with requests for

3 information regarding requirements of employ4 ment of such individual within the boycotting

5 country; and

6 (F) compliance by a United States person

7 resident in a foreign country or agreement by

8 such person to comply with the laws of the

9 country with respect to his or her activities ex10 clusively therein.

11 (3) EXCEPTION FOR COMPLIANCE WITH FOR12 EIGN LAWS.—Regulations issued pursuant to para13 graph (2)(F) may contain exceptions for a United

14 States person resident in a foreign country comply15 ing with the laws or regulations of the foreign coun16 try governing imports into such country of

17 trademarked, trade named, or similarly specifically

18 identifiable products, or components of products for

19 the use of such person, including the performance of

20 contractual services within that country, as may be

21 defined by such regulations.

22 (4) LIMITATION.—Regulations issued pursuant

23 to subparagraphs (C) and (F) of paragraph (2) shall

24 not provide exceptions from subparagraphs (B) and

25 (C) of paragraph (1).
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1 (5) NO EFFECT ON ANTITRUST OR CIVIL

2 RIGHTS LAWS.—Nothing in this subsection may be

3 construed to supersede or limit the operation of the

4 antitrust or civil rights laws of the United States.

5 (b) REPORTING OF CERTAIN TRADE PRACTICES.—

6 (1) REPORT TO SECRETARY.—The President

7 shall issue regulations requiring that any United

8 States person receiving a request for the furnishing

9 of information, the entering into or implementing of

10 agreements, or the taking of any other action re11 ferred to in paragraphs (9) and (10) of section

12 102(b) shall—

13 (A) report that fact to the Secretary, to14 gether with such other information concerning

15 the request as the Secretary may require in

16 order to take appropriate action to carry out

17 the policies set forth in those paragraphs; and

18 (B) report to the Secretary whether such

19 person intends to comply and whether such per20 son has complied with the request.

21 (2) PUBLIC INSPECTION.—Any report filed pur22 suant to paragraph (1) shall be made available

23 promptly for public inspection and copying, except

24 that information regarding the quantity, description,

25 and value of any items to which such report relates
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1 may be kept confidential if the Secretary determines

2 that disclosure thereof would place the United States

3 person involved at a competitive disadvantage.

4 (3) TRANSMITTAL TO SECRETARY OF STATE.—

5 The Secretary shall periodically transmit summaries

6 of the information contained in reports made to the

7 Secretary of State under paragraph (1) as the Sec8 retary of State, in consultation with the Secretary,

9 considers appropriate for carrying out the policies

10 stated in paragraphs (9) and (10) of section 102(b).

11 (c) PREEMPTION.—This section and the regulations

12 issued pursuant to this section shall preempt any law, rule,

13 or regulation of any of the several States, or the District

14 of Columbia, or any of the territories or possessions of

15 the United States, or of any governmental subdivision

16 thereof, which pertains to participation in, compliance

17 with, implementation of, or the furnishing of information

18 regarding restrictive trade practices, or boycotts fostered

19 or imposed by foreign countries against other countries.

20 (d) GENERAL APPLICATION.—This section shall

21 apply to any transaction or activity undertaken by or

22 through a United States person or any other person with

23 intent to evade the provisions of this section and regula24 tions issued pursuant to this section. Regulations issued

25 pursuant to this section shall expressly provide that the
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1 exceptions set forth in subsection (a)(2) do not permit ac2 tivities or agreements (expressed or implied by a course

3 of conduct, including a pattern of responses) that are oth4 erwise prohibited and which are not within the intent of

5 such exceptions.

6 SEC. 108. PROCEDURES FOR PROCESSING EXPORT LI7 CENSE APPLICATIONS; OTHER INQUIRIES.

8 (a) PRIMARY RESPONSIBILITY OF THE SEC9 RETARY.—

10 (1) DETERMINATION BY SECRETARY.—All ex11 port license applications required under this title

12 shall be submitted by the applicant to the Secretary.

13 All determinations on any such applications shall be

14 made by the Secretary, subject to the procedures

15 provided in this section.

16 (2) REVIEW BY OTHER DEPARTMENTS AND

17 AGENCIES.—The Departments of State, Defense,

18 and Energy, and the Arms Control and Disar19 mament Agency are authorized to review any export

20 license application required under this title. Such de21 partments and agency shall notify the Department

22 as to what types of applications they are to review,

23 and the Department shall refer all such applications

24 to the department or agency providing such notice.

25 The department and agency shall fully participate in
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1 the interagency review and escalation process. As

2 part of any review, the department or agency shall—

3 (A) consult with the interagency groups es4 tablished to provide expertise and coordinate

5 interagency review and consultation;

6 (B) complete the review within the period

7 of time established by this title; and

8 (C) make recommendations to the Sec9 retary.

10 (3) REGULATIONS.—In promulgating regula11 tions to implement this section, the Secretary shall

12 describe—

13 (A) the procedures required by this sec14 tion;

15 (B) the responsibilities of the Secretary

16 and of other departments and agencies in re17 viewing applications;

18 (C) the rights of the applicant; and

19 (D) the extent of any multilateral review of

20 a given license application.

21 (4) COMPUTATION OF TIME.—In calculating the

22 processing times set forth in this section, the Sec23 retary shall use calendar days, provided that if the

24 final day for a required action falls on a weekend or
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1 holiday, that action shall be taken not later than the

2 following business day.

3 (5) FACTORS TO BE CONSIDERED.—In review4 ing applications for validated export licenses, the

5 Secretary shall consider the reliability of the parties

6 to the proposed export. In making such evaluation,

7 the Secretary may consider all sources of informa8 tion, including intelligence information. However, the

9 consideration of intelligence information in connec10 tion with the evaluation of the reliability of parties

11 shall not authorize the direct or indirect disclosure

12 of classified information or sources and methods of

13 gathering classified information.

14 (b) COMMITTEE ON EXPORT CONTROL POLICY.—

15 (1) ESTABLISHMENT.—There is established an

16 advisory committee to be known as the Committee

17 on Export Control Policy (hereafter in this section

18 referred to as the ‘‘Committee’’).

19 (2) MEMBERSHIP.—The Committee shall con20 sist of—

21 (A) the Under Secretary for Export Ad22 ministration of the Department who shall chair

23 the Committee; and

24 (B) appropriate representatives from—

25 (i) the Department of State;
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1 (ii) the Department of Defense;

2 (iii) the Department of Energy; and

3 (iv) the Arms Control and Disar4 mament Agency.

5 (3) CONSULTATION.—The Committee may con6 sult with representatives of—

7 (A) the Chairman of the Joint Chiefs of

8 Staff;

9 (B) the Director of Central Intelligence;

10 and

11 (C) other Government departments and

12 agencies designated at the discretion of the

13 President.

14 (4) DUTIES.—The Committee shall formulate

15 export control policy and shall provide detailed guid16 ance concerning implementation of such policy to li17 censing officials in the departments and agencies re18 sponsible for the administration of export control

19 policy.

20 (c) INITIAL SCREENING.—

21 (1) RECEIPT AND STATUS INFORMATION.—

22 Upon receipt of any export license application, the

23 Secretary shall include receipt and status informa24 tion regarding the application in the records of the

25 Department.
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1 (2) ACTION ON APPLICATIONS.—Not later than

2 7 days after receipt of any export license application,

3 the Secretary shall—

4 (A) contact the applicant if the application

5 is improperly completed or if additional infor6 mation is required, and hold the application for

7 not more than 20 days while the applicant pro8 vides the necessary corrections or information

9 (and such 20-day time period shall not be

10 counted in calculating the time periods pre11 scribed in this section), and if the applicant

12 does not provide the required information dur13 ing that 20-day period, return the application

14 without action;

15 (B) refer the application and all necessary

16 recommendations and analyses by the Secretary

17 to all other agencies, when such referral is re18 quested, and forward to the agencies any rel19 evant information submitted by the applicant,

20 including information that could not be reduced

21 to electronic form; or

22 (C) assure the stated classification on the

23 application is correct, return the application if

24 a validated license is not required, and, if refer25 ral to other agencies is not requested, grant the
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1 application or notify the applicant of the pro2 posed denial of the application.

3 (d) ACTION BY OTHER DEPARTMENTS AND AGEN4 CIES.—

5 (1) ACTION ON REFERRAL.—Not later than 5

6 days after receipt of a referral of an export license

7 application, an agency or department shall specify to

8 the Secretary any information that is not in the ap9 plication that it requires to make a determination,

10 and the Secretary shall promptly request such infor11 mation from the applicant. The time that may elapse

12 between the date the information is requested from

13 the applicant and the date the information is re14 ceived by the Secretary shall not be counted in cal15 culating the time periods prescribed in this section.

16 (2) RECOMMENDATION TO SECRETARY.—Not

17 later than 21 days after receipt of a referral and any

18 necessary information regarding such referral, the

19 agency or department shall provide the Secretary

20 with a recommendation either to approve or deny

21 the license. As appropriate, such recommendation

22 shall reflect consultation and discussions in inter23 agency groups established to provide expertise and

24 coordinate interagency consultation. A recommenda25 tion that the Secretary deny a validated license shall
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1 include a statement of reasons for the recommended

2 denial that are consistent with the purposes of this

3 title, and shall cite both the statutory and regulatory

4 basis for such recommendation. A department or

5 agency that fails to provide a recommendation with6 in 21 days with a statement of reasons and the stat7 utory and regulatory basis shall be deemed to have

8 no objection to the decision of the Secretary.

9 (3) REVIEW BY INTERAGENCY COMMITTEE.—

10 (A) IN GENERAL.—The Secretary shall es11 tablish an interagency committee to conduct an

12 initial review of any license applications on

13 which the reviewing agencies are not in agree14 ment.

15 (B) SELECTION AND DUTIES OF CHAIR16 PERSON.—The Secretary shall select a chair17 person of the interagency committee. The chair18 person shall consider the recommendations of

19 the reviewing agencies and inform them of the

20 decision of the chairperson on the license appli21 cation.

22 (C) APPEAL.—Any appeal from the deci23 sion of the chairperson shall be submitted in

24 writing by an official of the department or

25 agency appealing the decision who is appointed
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1 by the President, by and with the advice and

2 consent of the Senate, or by an officer properly

3 acting in such capacity consistent with proce4 dures established by the President in accord5 ance with subsection (e).

6 (4) DETERMINATION BY SECRETARY.—Upon

7 receiving all comments from other departments and

8 agencies regarding an application upon which there

9 is no disagreement, or 35 days following receipt of

10 a license application upon which there has been dis11 agreement, whichever is earlier, the Secretary

12 shall—

13 (A) approve the application and issue the

14 license;

15 (B) notify the applicant of the proposed

16 denial of the license application; or

17 (C) notify the applicant that the applica18 tion is disputed by reviewing agencies and has

19 been referred for resolution pursuant to proce20 dures established by the President under sub21 section (e).

22 (e) INTERAGENCY RESOLUTION.—The President

23 shall establish an interagency committee process for the

24 review and determination of export license applications as
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1 to which a reviewing agency has objected pursuant to sub2 section (d)(3)(C). Any such process shall—

3 (1) be chaired by the Secretary or the Sec4 retary’s designee;

5 (2) make determinations based on majority vote

6 of such committee;

7 (3) provide that a department or agency that

8 fails to make a timely appeal shall be deemed to

9 have no objection to the pending decision;

10 (4) provide for appeal by a dissenting agency to

11 the President for final determination; and

12 (5) ensure that license applications are resolved

13 not later than 60 days after the date of receipt of

14 the license application by the Secretary.

15 (f) OTHER ACTIONS BY THE SECRETARY.—

16 (1) DETERMINATION BY SECRETARY.—When

17 no referral to other departments or agencies is re18 quired, the Secretary shall issue a license or notify

19 the applicant of the proposed denial of the applica20 tion not later than 7 days after receipt of the appli21 cation.

22 (2) NOTICE OF DENIAL.—In cases where the

23 Secretary has determined that an application should

24 be denied, the applicant shall be informed in writing

25 of—
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1 (A) the determination to deny;

2 (B) the statutory and regulatory basis for

3 the proposed denial;

4 (C) what, if any, modifications in or re5 strictions on the items for which the license was

6 sought would allow such export to be compat7 ible with export controls imposed under this

8 title, and which officer or employee of the De9 partment would be in a position to discuss

10 modifications or restrictions with the applicant;

11 (D) to the extent consistent with the na12 tional security and foreign policy of the United

13 States, the specific considerations that led to

14 the determination to deny the application; and

15 (E) the availability of appeal procedures.

16 (3) RESPONSE TIME.—The Secretary shall

17 allow the applicant not more than 20 days to re18 spond to the determination to deny an application

19 before the license application is denied.

20 (4) SUSPENSION OF TIME PERIODS.—The Sec21 retary and the applicant may, at any time, agree to

22 suspend the time periods prescribed by this section

23 in order to negotiate modifications to the application

24 and, if necessary, obtain agreement to such modi25 fications from the foreign parties to the transaction,
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1 if the Secretary notifies the Committee on Banking,

2 Housing, and Urban Affairs of the Senate and the

3 Committee on Foreign Affairs of the House of Rep4 resentatives of such agreement.

5 (g) MULTILATERAL CONTROLS.—When an applica6 tion recommended for approval must be submitted to a

7 multilateral review process, pursuant to a multilateral re8 gime, formal or informal, of which the United States is

9 a member or an adherent, the application shall be referred

10 to the multilateral regime not later than 5 days after the

11 decision to approve is made. Any such application shall

12 be considered in accordance with the review procedures es13 tablished by the relevant multilateral export control re14 gime, and the license shall be issued or a notice of pro15 posed denial of the application shall be issued not later

16 than 5 days after receipt of a decision by the multilateral

17 regime.

18 (h) TIME PERIODS.—

19 (1) IN GENERAL.—All license applications shall

20 be resolved not later than 60 days after the date of

21 filing of the license application.

22 (2) EXCEPTIONS.—The following actions relat23 ed to processing an application shall not be counted

24 in calculating the time periods prescribed in this sec25 tion:
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1 (A) PRELICENSE CHECKS.—Prelicense

2 checks through government channels that may

3 be required to establish the identity and reli4 ability of the recipient of items controlled under

5 this title, if—

6 (i) the need for such prelicense check

7 is established by the Secretary, or by an8 other department or agency if the request

9 for prelicense check is made by such de10 partment or agency;

11 (ii) the request for such prelicense

12 check is sent by the Secretary not later

13 than 5 days after receipt of an application

14 for the determination that the prelicense

15 check is required;

16 (iii) the analysis of the response to

17 the request for a prelicense check is com18 pleted by the Secretary not later than 5

19 days after receipt of the response; and

20 (iv) the prelicense checks are com21 pleted not later than 45 days after receipt

22 of a license application.

23 (B) REQUESTS FOR GOVERNMENT-TO-GOV24 ERNMENT ASSURANCES.—When failure to ob25 tain government-to-government assurances of
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1 suitable end use of items approved for export

2 would result in denial of a license application,

3 a request for such assurances shall be transmit4 ted to the Secretary of State not later than 5

5 days after the determination that such assur6 ances are required. The Secretary of State shall

7 initiate the request of the relevant government

8 not later than 10 days after receiving the re9 quest for assurances. An export license shall be

10 issued not later than 5 days after receipt by the

11 Secretary of the requested assurances.

12 (C) MULTILATERAL REVIEW.—Multilateral

13 review of a license application shall be under14 taken as provided for in subsection (g), if such

15 multilateral review is required by the relevant

16 multilateral regime.

17 (D) CONGRESSIONAL NOTIFICATION.—

18 Mandatory congressional notifications under

19 this title shall be undertaken in such time as

20 may be required.

21 (3) OTHER TIME PERIODS.—If prelicense

22 checks and assurances are not requested within the

23 time periods set forth in subparagraph (A) or (B) of

24 paragraph (2), they shall be accomplished within the

25 time periods established by this section.
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1 (i) APPEALS.—

2 (1) ESTABLISHMENT OF PROCEDURES.—The

3 Secretary shall establish appropriate procedures for

4 any applicant to appeal to the Secretary by petition

5 the denial of an export license application or other

6 administrative action taken under this title.

7 (2) REQUEST FOR COMPLIANCE WITH TIME PE8 RIODS.—In any case in which any action prescribed

9 in this section is not taken on the license application

10 within the time periods established by this section

11 (except in the case of a time period extended under

12 subsection (h)(2)(C), of which the applicant is noti13 fied), the applicant may file a petition with the Sec14 retary requesting compliance with the requirements

15 of this section. When such petition is filed, the Sec16 retary shall take immediate steps to correct the situ17 ation giving rise to the petition and shall imme18 diately notify the applicant of such steps.

19 (3) ADJUDICATION.—If, not later than 20 days

20 after a petition is filed under paragraph (2), the

21 processing of the application has not been brought

22 into conformity with the requirements of this sec23 tion, or the application has been brought into con24 formity with such requirements, but the Secretary

25 has not so notified the applicant, the applicant may
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1 bring an action in an appropriate United States dis2 trict court for an order requiring compliance with

3 the temporal requirements of this section. The Unit4 ed States district courts shall have jurisdiction to

5 provide appropriate relief.

6 (j) CLASSIFICATION REQUESTS AND OTHER INQUIR7 IES.—

8 (1) CLASSIFICATION.—In any case in which the

9 Secretary receives a written request asking for the

10 proper classification of an item on the Control List,

11 the Secretary shall, not later than 14 days after re12 ceipt of the request, inform the person making the

13 request of the proper classification.

14 (2) OTHER INFORMATION.—In any case in

15 which the Secretary receives a written request for in16 formation about the applicability of export license

17 requirements under this title to a proposed export

18 transaction or series of transactions, the Secretary

19 shall, not later than 30 days after the receipt of the

20 request, provide such information to the requester.

21 (k) EFFECT ON NUCLEAR NON-PROLIFERATION ACT

22 OF 1978.—The procedures published by the President

23 pursuant to section 309(c) of the Nuclear Non-Prolifera24 tion Act of 1978 shall be superseded to the extent that

25 such procedures are inconsistent with this section.
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1 (l) STRATEGIC PLAN REQUIRED FOR PRELICENSE

2 CHECKS.—

3 (1) AUTHORITY.—Not later than 90 days after

4 the date of enactment of this Act, and annually

5 thereafter, the Secretary, in consultation with appro6 priate departments and agencies, shall develop a

7 strategic plan for prelicense checks. Such a plan

8 shall be consistent with United States national secu9 rity, nonproliferation, and foreign policy interests,

10 and shall include overall objectives, priorities, and

11 targeted areas.

12 (2) EXEMPTION FROM DISCLOSURE.—A strate13 gic plan developed under paragraph (1) shall not be

14 subject to disclosure under section 552 of title 5,

15 United States Code.

16 (m) ELECTRONIC LICENSING INFORMATION.—Not

17 later than 6 months after the date of enactment of this

18 Act, the Departments of State, Defense, and Energy, the

19 Central Intelligence Agency, and the Arms Control and

20 Disarmament Agency shall develop a means for receiving

21 and analyzing the electronic transmission of licensing in22 formation from the Department, which the Secretary shall

23 provide, consistent with the provisions of this section.

24 SEC. 109. VIOLATIONS.

25 (a) CRIMINAL PENALTIES.—
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1 (1) VIOLATIONS BY AN INDIVIDUAL.—Except as

2 provided in paragraph (3), any individual who know3 ingly violates, or conspires or attempts to violate any

4 provision of this title, or any regulation, license, or

5 order issued under this title, shall be fined not more

6 than 10 times the value of the exports involved, or

7 $500,000 per violation, whichever is greater, or im8 prisoned for not more than 10 years, or both.

9 (2) VIOLATION BY A PERSON OTHER THAN AN

10 INDIVIDUAL.—Except as provided in paragraph (3),

11 any person other than an individual who knowingly

12 violates, or conspires or attempts to violate any pro13 vision of this title, or any regulation, license or order

14 issued under this title, shall be fined not more than

15 10 times the value of the exports involved, or

16 $2,000,000 per violation, whichever is greater.

17 (3) ANTIBOYCOTT VIOLATIONS.—

18 (A) VIOLATION BY AN INDIVIDUAL.—Any

19 individual who knowingly violates, or conspires

20 or attempts to violate any provision of section

21 107 concerning foreign boycotts, or any regula22 tion, or order issued under section 107, shall be

23 fined not more than 5 times the value of the ex24 ports involved, or $250,000 per violation,
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1 whichever is greater, or imprisoned for not

2 more than 10 years, or both.

3 (B) VIOLATION BY A PERSON OTHER THAN

4 AN INDIVIDUAL.—Any person other than an in5 dividual who knowingly violates, or conspires or

6 attempts to violate any provision of section 107,

7 or any regulation, or order issued under section

8 107, shall be fined not more than 5 times the

9 value of the exports involved, or $500,000 per

10 violation, whichever is greater.

11 (b) FORFEITURE OF PROPERTY INTEREST AND PRO12 CEEDS.—

13 (1) CONVICTION OTHER THAN FOR AN

14 ANTIBOYCOTT VIOLATION.—Any person who is con15 victed under paragraph (1) or (2) of subsection (a),

16 shall, in addition to any other penalty, forfeit to the

17 United States—

18 (A) any of that person’s interest in, secu19 rity of, claim against, or property or contractual

20 rights of any kind, in the goods or tangible

21 items that were the subject of the violation;

22 (B) any of that person’s interest in, secu23 rity of, claim against, or property or contractual

24 rights of any kind, in tangible property that
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•S 2203 PCS

1 was used in the export or attempt to export

2 that was the subject of the violation; and

3 (C) any of that person’s property con4 stituting, or derived from, any proceeds ob5 tained directly or indirectly as a result of the

6 violation.

7 (2) PROCEDURES.—The procedures for any for8 feiture under this subsection, and the duties and au9 thority of the courts of the United States and the

10 Attorney General with respect to any forfeiture ac11 tion under this subsection, or with respect to any

12 property that may be subject to forfeiture under this

13 subsection, shall be governed by the provisions of

14 chapter 46 of title 18, United States Code.

15 (c) CIVIL PENALTIES; ADMINISTRATIVE SANC16 TIONS.—

17 (1) IN GENERAL.—The Secretary may impose a

18 civil penalty of not more than $250,000 for each vio19 lation of this title, or any regulation, license, or

20 order issued under this title, either in addition to or

21 in lieu of any other liability or penalty which may

22 be imposed, except that the civil penalty for each

23 violation involving section 107 may not exceed

24 $50,000.
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1 (2) DENIAL OF EXPORT PRIVILEGES.—The Sec2 retary may deny, suspend, or revoke the authority of

3 any person to export or receive any item subject to

4 this title, for any violation of the provisions of this

5 title, or of any regulation, license, or order issued

6 under this title.

7 (d) PROCEDURES RELATING TO CIVIL PENALTIES

8 AND SANCTIONS.—

9 (1) NOTICE AND HEARING.—Any administrative

10 sanction or civil penalty imposed under subsection

11 (c) may be imposed only after notice and oppor12 tunity for an agency hearing on the record in ac13 cordance with sections 554 through 557 of title 5,

14 United States Code. The imposition of any such ad15 ministrative sanction shall be subject to judicial re16 view in accordance with sections 701 through 706 of

17 title 5, United States Code.

18 (2) PUBLIC INSPECTION.—Any charging letter

19 or other document initiating administrative proceed20 ings for the imposition of sanctions or penalties for

21 violations of regulations issued pursuant to section

22 107(a) shall be made available for public inspection

23 and copying.

24 (3) PENALTY REGULATIONS.—The President

25 may provide, by regulation, standards for establish-
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1 ing levels of the civil penalties provided in subsection

2 (c) based on the seriousness of the violation, the cul3 pability of the violator, and the violator’s record of

4 cooperation with the Government in disclosing the

5 violation.

6 (e) PAYMENT OF CIVIL PENALTIES.—

7 (1) CONDITIONAL.—The payment of any civil

8 penalty imposed pursuant to subsection (c) may be

9 conditioned, for a period of not longer than 1 year,

10 beginning on the date on which the penalty is due,

11 to the granting, restoring, or continuing validity of

12 any export license, permission, or privilege granted

13 or to be granted to the person upon whom such pen14 alty is imposed.

15 (2) SUSPENSION OR DEFERRAL.—The payment

16 of any civil penalty imposed under subsection (c)

17 may be deferred or suspended in whole or in part for

18 a period of time not longer than any probation pe19 riod that may be imposed upon such person. Such

20 deferral or suspension shall not operate as a bar to

21 the collection of the penalty in the event that the

22 conditions of the suspension, deferral, or probation

23 are not fulfilled.

24 (f) REFUNDS.—Any amount paid in satisfaction of

25 any civil penalty imposed pursuant to subsection (c) shall
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1 be received into the Treasury of the United States as a

2 miscellaneous receipt. At the discretion of the head of any

3 department or agency concerned, any civil penalty imposed

4 pursuant to subsection (c) may be refunded, not later than

5 2 years after payment, on the ground of a material error

6 of fact or law in the imposition of the penalty. Notwith7 standing section 1346(a) of title 28, United States Code,

8 no action for the refund of any such penalty may be main9 tained in any court.

10 (g) COLLECTION.—

11 (1) AUTHORITY.—If any person fails to pay a

12 civil penalty imposed pursuant to subsection (c), the

13 Secretary may ask the Attorney General of the Unit14 ed States to bring a civil action in an appropriate

15 district court to recover the amount imposed (plus

16 interest at currently prevailing rates from the date

17 of the final order). In such an action, the validity,

18 amount, and appropriateness of such penalty shall

19 not be subject to review.

20 (2) COMMENCEMENT.—An action described in

21 paragraph (1) shall be commenced not later than 5

22 years after the date on which the order imposing the

23 civil penalty becomes final. Any suspension or defer24 ral of the payment of such penalty under subsection
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1 (e)(2) shall not be counted in calculating the 5-year

2 period imposed under this subsection.

3 (h) PRIOR CONVICTIONS.—

4 (1) IN GENERAL.—At the discretion of the Sec5 retary, export privileges under this title may be de6 nied for a period of not more than 10 years, begin7 ning on the date of conviction, and any export li8 cense in which such person had an interest at the

9 time of conviction may be revoked for conviction of

10 a violation of—

11 (A) this title;

12 (B) the Export Administration Act of

13 1979;

14 (C) the International Emergency Economic

15 Powers Act;

16 (D) sections 793, 794, and 798, of title 18,

17 United States Code;

18 (E) section 4(a) of the Internal Security

19 Act of 1950;

20 (F) section 16 of the Trading with the

21 Enemy Act;

22 (G) section 38 of the Arms Export Control

23 Act;
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1 (H) any regulation, license, or order issued

2 under any of the laws described in subpara3 graphs (A) through (G); or

4 (I) section 371 or 1001 of title 18, United

5 States Code, if the conviction arises out of an

6 activity subject to 1 or more of the provisions

7 of law listed in subparagraphs (A) through (H).

8 (2) OTHER PERSONS.—The Secretary may ex9 ercise the authority under paragraph (1) with re10 spect to any person related, through affiliation, own11 ership, control, or position of responsibility, to any

12 person convicted of any violation of a provision of

13 law set forth in paragraph (1), upon a showing of

14 such relationship with the convicted person and after

15 providing notice and opportunity for hearing.

16 (i) STATUTE OF LIMITATIONS.—

17 (1) IN GENERAL.—Any case in which a civil

18 penalty or other administrative sanction is sought

19 under subsection (c) shall be instituted not later

20 than 5 years after the date on which the alleged vio21 lation for which such penalty or sanction is sought

22 occurred.

23 (2) EXCEPTION.—If a criminal indictment al24 leging a violation of this title is returned within the

25 time limits prescribed by law for the institution of
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•S 2203 PCS

1 such an action, the statute of limitations for bring2 ing a proceeding to impose a civil penalty or other

3 administrative sanction under this title shall, upon

4 the return of the criminal indictment, be tolled

5 against all persons named as a defendant, and toll6 ing shall continue for a period of not more than 6

7 months beginning on the date on which a conviction

8 is entered or the indictment is dismissed.

9 (j) IMPOSITION OF TEMPORARY DENIAL ORDERS.—

10 (1) IN GENERAL.—In any case in which there

11 is reasonable cause to believe that a person is en12 gaged in or is about to engage in any act or practice

13 that constitutes or would constitute a violation of

14 this title, or any regulation, order, or license issued

15 under this title, or in any case in which a criminal

16 indictment has been returned against a person alleg17 ing a violation of this title, or any of the laws set

18 forth in subsection (h), the Secretary may, without

19 a hearing, issue an order temporarily denying the

20 United States exporting privileges of that person

21 (hereafter in this subsection referred to as a ‘‘tem22 porary denial order’’). A temporary denial order may

23 be effective for not longer than 180 days, but may

24 be renewed by the Secretary, following notice and an
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1 opportunity for a hearing, for additional 180-day

2 periods.

3 (2) APPEAL.—

4 (A) APPEAL TO ADMINISTRATIVE LAW

5 JUDGE.—The person subject to the issuance or

6 renewal of a temporary denial order may appeal

7 the issuance or renewal of the temporary denial

8 order, supported by briefs and other material,

9 to an administrative law judge who shall, not

10 later than 15 business days after the appeal is

11 filed, issue a decision affirming, modifying, or

12 vacating the temporary denial order.

13 (B) AFFIRMATION CRITERIA.—The tem14 porary denial order shall be affirmed if it is

15 shown that there is reasonable cause to believe

16 that the person subject to the order is engaged

17 in or is about to engage in any act or practice

18 which constitutes or would constitute a violation

19 of this title, or any regulation, order, or license

20 issued under this title, or if it is shown that a

21 criminal indictment has been returned against

22 the person subject to the order alleging a viola23 tion of this title, or any of the laws set forth

24 in subsection (h).
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1 (C) APPEAL TO SECRETARY.—The decision

2 of the administrative law judge under subpara3 graph (A) shall be final unless, not later than

4 10 business days after the date of the adminis5 trative law judge’s decision, an appeal is filed

6 with the Secretary. On appeal, the Secretary

7 shall either affirm, modify, reverse, or vacate

8 the decision of the administrative law judge by

9 written order not later than 10 business days

10 after receiving the appeal. The written order of

11 the Secretary shall be final, and is not subject

12 to judicial review, except as provided in para13 graph (3).

14 (D) ADMINISTRATIVE RECORD.—The ma15 terials submitted to the administrative law

16 judge and the Secretary under this paragraph

17 shall constitute the administrative record for

18 purposes of review by the court.

19 (3) JUDICIAL REVIEW.—An order of the Sec20 retary affirming, in whole or in part, the issuance or

21 renewal of a temporary denial order may, not later

22 than 15 days after the order is issued, be appealed

23 by a person subject to the order of the United States

24 Court of Appeals for the District of Columbia Cir25 cuit, which shall have jurisdiction over the appeal.
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1 The court may review only those issues necessary to

2 determine whether the issuance of the temporary de3 nial order was based on reasonable cause to believe

4 that the person subject to the order was engaged in

5 or was about to engage in any act or practice that

6 constitutes or would constitute a violation of this

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

8 under this title, or that a criminal indictment had

9 been returned against the person subject to the

10 order which alleged a violation of this title or any of

11 the laws set forth in subsection (h). The court shall

12 vacate the Secretary’s order if the court finds that

13 the Secretary’s order is arbitrary, capricious, an

14 abuse of discretion, or otherwise not in accordance

15 with law.

16 (k) VIOLATIONS DEFINED BY REGULATION.—Noth17 ing in this section shall be construed to limit the power

18 of the Secretary to define by regulation violations under

19 this title.

20 (l) OTHER AUTHORITIES.—Nothing in subsection

21 (c), (e), (f), (g), (h), or (i) limits—

22 (1) the availability of other administrative or

23 judicial remedies with respect to violations of this

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

25 under this title;
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1 (2) the authority to compromise and settle ad2 ministrative proceedings brought with respect to vio3 lations of this title, or any regulation, order, or li4 cense issued under this title; or

5 (3) the authority to compromise, remit, or miti6 gate seizures and forfeitures pursuant to section

7 1(b) of title VI of the Act of June 15, 1917 (67

8 Stat. 577, chapter 434; 22 U.S.C. 401(b)).

9 SEC. 110. ENFORCEMENT.

10 (a) GENERAL AUTHORITY AND DESIGNATION.—

11 (1) IN GENERAL.—The Secretary, in consulta12 tion with the Secretary of the Treasury, and the

13 heads of other appropriate departments and agen14 cies, shall be responsible for providing policy guid15 ance on the enforcement of this title.

16 (2) EXERCISE OF AUTHORITY.—To the extent

17 necessary or appropriate to the enforcement of this

18 title, or to the imposition of any penalty, forfeiture,

19 or liability arising under the Export Administration

20 Act of 1979, officers or employees of the Depart21 ment designated by the Secretary, and officers and

22 employees of the United States Customs Service

23 (hereafter in this section referred to as the ‘‘Cus24 toms Service’’) designated by the Commissioner of

25 the Customs Service may exercise the enforcement
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•S 2203 PCS

1 authorities described in paragraphs (3) and (4). In

2 carrying out such enforcement authorities—

3 (A) the Commissioner and officers and em4 ployees of the Customs Service designated by

5 the Commissioner—

6 (i) may investigate within or outside

7 of the United States and at those ports of

8 entry or exit from the United States where

9 officers of the Customs Service are author10 ized by law to carry out such enforcement

11 responsibilities; and

12 (ii) subject to paragraph (3), may, in

13 the enforcement of this title, search, detain

14 (after search), and seize goods or tech15 nology at those ports of entry or exit from

16 the United States where officers of the

17 Customs Service are authorized by law to

18 conduct such searches, detentions, and sei19 zures, and at those places outside of the

20 United States where the Customs Service,

21 pursuant to agreements or other arrange22 ments with other countries, is authorized

23 to perform enforcement activities;
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1 (B) the Secretary, and officers and em2 ployees of the Department designated by the

3 Secretary—

4 (i) may investigate within the United

5 States;

6 (ii) shall conduct, outside of the Unit7 ed States, pre-license and post-shipment

8 verifications of items licensed for export,

9 and investigations in the enforcement of

10 section 107;

11 (iii) may search, detain (after search),

12 and seize items at those places within the

13 United States other than those ports and

14 borders specified in subparagraph (A); and

15 (iv) may, only with the concurrence of

16 the Commissioner of the Customs Service,

17 or a person designated by the Commis18 sioner, search, detain (after search), and

19 seize items at those ports and borders

20 specified in subparagraph (A); and

21 (C) the Secretary and the Commissioner

22 may enter into agreements and arrangements

23 for the enforcement of this title, including for24 eign investigations and information exchange.
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1 (3) AUTHORITIES.—Any officer or employee

2 designated by the Secretary or the Commissioner

3 under paragraph (2) may—

4 (A) investigate and obtain information;

5 (B) require reports or records, or the keep6 ing of reports or records;

7 (C) inspect books, reports, records, other

8 writings, premises, or property of any person;

9 (D) take the sworn testimony of any per10 son;

11 (E) administer oaths or affirmations;

12 (F) execute any warrant or other process

13 issued by a court or officer of competent juris14 diction with respect to the enforcement of this

15 title;

16 (G) require, by subpoena, any person to

17 appear and testify, or to appear and produce

18 books, records, and other writings, or both;

19 (H) in the case of contumacy by, or refusal

20 to obey a subpoena issued to any such person,

21 petition a district court of the United States to

22 exercise jurisdiction to issue, after notice and

23 hearing, an order requiring such person to ap24 pear and testify or to appear and produce

25 books, records, and other writings, or both, and
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•S 2203 PCS

1 any failure to obey such order of the court may

2 be punished by such court as a contempt there3 of;

4 (I) arrest any person without warrant for

5 any violation of this title committed in the pres6 ence or view of the officer or employee, or if the

7 officer or employee has probable cause to be8 lieve that the person to be arrested has commit9 ted or is committing such a violation;

10 (J) carry firearms; and

11 (K) detain (after search) or seize, for pur12 poses of securing for trial or forfeiture to the

13 United States, any item in or on any vehicle,

14 vessel, aircraft, or person, or in a package or

15 container on a vehicle, vessel, aircraft, or per16 son, if the officer or employee has probable

17 cause to believe the item has been, is being, or

18 is about to be exported from or transited

19 through the United States in violation of this

20 title.

21 (4) CUSTOMS SERVICE AUTHORITY.—In addi22 tion to the authorities in paragraph (3), officers and

23 employees of the Customs Service designated by the

24 Commissioner may—
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•S 2203 PCS

1 (A) stop, search, and examine a vehicle,

2 vessel, aircraft, or person on which or on whom

3 the officer or employee has reasonable cause to

4 suspect there is any item that has been, is

5 being, or is about to be exported from or

6 transited through the United States in violation

7 of this title; and

8 (B) detain and search any package or con9 tainer in which the officer or employee has rea10 sonable cause to suspect there is any item that

11 has been, is being, or is about to be exported

12 from or transited through the United States in

13 violation of this title.

14 (5) ADDITIONAL AUTHORITY.—The authorities

15 conferred by this subsection are in addition to any

16 authorities conferred under other laws.

17 (b) FORFEITURE.—

18 (1) IN GENERAL.—All goods or tangible items

19 lawfully seized under subsection (a) by designated

20 officers or employees shall be forfeited to the United

21 States. Those provisions of law relating to—

22 (A) the seizure, summary and judicial for23 feiture, and condemnation of property for viola24 tions of the customs laws;
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•S 2203 PCS

1 (B) the disposition of such property or the

2 proceeds from the sale thereof;

3 (C) the remission or mitigation of such for4 feitures; and

5 (D) the compromise of claims;

6 shall apply to seizures and forfeitures incurred, or

7 alleged to have been incurred, under the provisions

8 of this subsection, to the extent that they are appli9 cable and not inconsistent with this title.

10 (2) PERFORMANCE OF DUTIES.—Such duties as

11 are imposed upon the customs officers, employees, or

12 any other person with respect to the seizure and for13 feiture of property under the customs laws may be

14 performed with respect to seizures and forfeitures of

15 property under this subsection by the Secretary or

16 such officers or employees of the Department as are

17 authorized or designated by the Secretary for that

18 purpose, or, upon the request of the Secretary, by

19 any other agency that has authority to manage and

20 dispose of seized property.

21 (c) UNDERCOVER INVESTIGATIVE OPERATIONS.—

22 (1) GENERAL AUTHORITY.—With respect to

23 any undercover investigative operation conducted by

24 the Office of Export Enforcement of the Department

25 (hereafter in this subsection referred to as ‘‘OEE’’)
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1 necessary for the detection and prosecution of viola2 tions of this title—

3 (A) funds made available for export en4 forcement under this title may—

5 (i) be used to purchase property,

6 buildings, and other facilities, and to lease

7 space within the United States, without re8 gard to—

9 (I) sections 1341 and 3324 of

10 title 31, United States Code;

11 (II) the third undesignated para12 graph under the heading ‘‘MIS13 CELLANEOUS’’ of the Act of March 3,

14 1877 (19 Stat. 370, chapter 106; 40

15 U.S.C. 34);

16 (III) sections 3732(a) and 3741

17 of the Revised Statutes (41 U.S.C.

18 11(a), 22); or

19 (IV) sections 304 and 305 of the

20 Federal Property and Administrative

21 Services Act of 1949 (41 U.S.C. 254,

22 255);

23 (ii) be used to establish or to acquire

24 proprietary corporations or business enti25 ties as part of an OEE undercover oper-
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1 ation, and to operate such corporations or

2 business entities on a commercial basis,

3 without regard to section 9102 of title 31,

4 United States Code; and

5 (iii) be deposited in banks or other fi6 nancial institutions without regard to sec7 tion 648 of title 18, United States Code,

8 and section 3302 of title 31, United States

9 Code; and

10 (B) the proceeds from OEE undercover op11 erations may—

12 (i) be deposited in banks or other fi13 nancial institutions without regard to sec14 tion 648 of title 18, United States Code,

15 and section 3302 of title 31, United States

16 Code; and

17 (ii) be used to offset necessary and

18 reasonable expenses incurred in such oper19 ations, without regard to section 3302 of

20 title 31, United States Code, if the Direc21 tor of OEE certifies, in writing, that any

22 action authorized by this paragraph is nec23 essary for the conduct of the undercover

24 operation.
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1 (2) PROCEEDS OF UNDERCOVER ENTITIES.—If

2 a corporation or business entity that is established

3 or acquired as part of an OEE undercover operation

4 and that has a net value of more than $50,000 is

5 to be liquidated, sold, or otherwise disposed of, OEE

6 shall report the circumstances to the Secretary and

7 the Comptroller General of the United States, as far

8 in advance of such disposition as the Director of

9 OEE determines is practicable. The proceeds of the

10 liquidation, sale, or other disposition, after obliga11 tions incurred by the corporation or business enter12 prise are met, shall be deposited into the Treasury

13 of the United States as miscellaneous receipts.

14 (3) REMAINING PROCEEDS.—As soon as the

15 proceeds from an undercover investigative operation

16 are no longer necessary for the conduct of such op17 eration, such proceeds, or the balance of such pro18 ceeds remaining at that time, shall be deposited into

19 the Treasury of the United States as miscellaneous

20 receipts.

21 (4) AUDIT AND REPORT OF UNDERCOVER OP22 ERATIONS.—

23 (A) FINANCIAL AUDITS.—The Director of

24 OEE shall conduct a detailed financial audit of

25 each undercover investigative operation that is
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1 closed and shall submit the results of the audit

2 in writing to the Secretary.

3 (B) REPORT.—Not later than 180 days

4 after an OEE undercover operation is closed,

5 the Secretary shall submit to the Congress a re6 port on the results of the audit under subpara7 graph (A).

8 (C) CONTENTS OF REPORT.—The report

9 required under subparagraph (B) may be in10 cluded in the annual report required under sec11 tion 114, and shall include—

12 (i) the number of OEE undercover in13 vestigative operations pending as of the

14 end of the 1-year period for which such re15 port is submitted;

16 (ii) the number of OEE undercover

17 investigative operations commenced in the

18 1-year period preceding the period for

19 which such report is submitted; and

20 (iii) the number of OEE undercover

21 investigative operations closed in the 1-

22 year period preceding the period for which

23 such report is submitted and, with respect

24 to each such closed undercover operation,
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1 the results obtained and any civil claims

2 made with respect thereto.

3 (5) DEFINITIONS.—

4 (A) IN GENERAL.—For purposes of para5 graph (4)—

6 (i) an OEE undercover operation shall

7 be deemed to be ‘‘closed’’ at the earliest

8 point in time at which all criminal proceed9 ings (other than appeals) are concluded, or

10 covert activities are concluded, whichever

11 occurs later;

12 (ii) the term ‘‘employees’’ means em13 ployees, as defined in section 2105 of title

14 5, United States Code, of the Department;

15 and

16 (iii) the terms ‘‘undercover investiga17 tive operation’’ and ‘‘undercover oper18 ation’’ mean any undercover investigative

19 operation conducted by OEE—

20 (I) in which the gross receipts

21 (excluding interest earned) exceed

22 $25,000, or expenditures (other than

23 expenditures for salaries of employees)

24 exceed $75,000; and
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1 (II) that is exempt from section

2 3302 or 9102 of title 31, United

3 States Code.

4 (B) EXCEPTION.—Clause (iii) of subpara5 graph (A) shall not apply with respect to the in6 formation required in the report to the Con7 gress under paragraph (4)(C).

8 (d) REFERENCE TO ENFORCEMENT.—For purposes

9 of this section, a reference to the enforcement of this title

10 or to a violation of this title includes enforcement of or

11 a violation of any regulation, license, or order issued under

12 this title.

13 SEC. 111. AUTHORITY AND PROCEDURES.

14 (a) UNDER SECRETARY OF COMMERCE.—The Presi15 dent shall appoint, by and with the advice and consent

16 of the Senate, an Under Secretary of Commerce for Ex17 port Administration who shall carry out all functions of

18 the Secretary under this title, under other statutes that

19 relate to national security, and under such other statutes

20 as the Secretary may delegate. The President shall ap21 point, by and with the advice and consent of the Senate,

22 two Assistant Secretaries of Commerce to assist the Under

23 Secretary in carrying out such functions.

24 (b) REGULATIONS.—
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1 (1) IN GENERAL.—The Secretary may promul2 gate such regulations as are necessary to carry out

3 this title, and amend or revise them as necessary.

4 Such regulations may apply to financing, transport5 ing, or other servicing of exports subject to this title.

6 (2) REVIEW OF CERTAIN REGULATIONS.—Reg7 ulations to carry out section 105 may only be pro8 mulgated after the regulations are submitted for re9 view to such departments or agencies as the Presi10 dent considers appropriate. The requirement for

11 prior agency review does not confer the right of con12 currence or approval by any official, department, or

13 agency to which such regulations are submitted.

14 (c) PUBLIC PARTICIPATION.—

15 (1) IN GENERAL.—To the extent practicable, all

16 regulations imposing controls on exports under this

17 title shall be issued in proposed form, with oppor18 tunity for public comment, before taking effect.

19 (2) REISSUANCE BASED ON PUBLIC COM20 MENTS.—When a regulation imposing controls under

21 this title is issued with immediate effect, opportunity

22 for public comment shall be provided and that regu23 lation shall be reissued in final form after public

24 comments have been fully considered.

25 (d) CONFIDENTIALITY OF INFORMATION.—
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1 (1) EXEMPTIONS FROM DISCLOSURE.—

2 (A) INFORMATION OBTAINED BEFORE

3 JUNE 30, 1980.—Except as otherwise provided

4 in sections 107(b)(3) and 109(d)(2), informa5 tion obtained under the Export Administration

6 Act of 1979 and its predecessor statutes on or

7 before June 30, 1980, which is deemed con8 fidential, including Shipper’s Export Declara9 tions, or which has been requested by the per10 son furnishing such information to be treated

11 confidentially, shall not be subject to disclosure

12 under section 552 of title 5, United States

13 Code, and such information shall not be pub14 lished or disclosed unless the Secretary deter15 mines that the withholding thereof is contrary

16 to the national interest.

17 (B) INFORMATION OBTAINED AFTER JUNE

18 30, 1980.—Except as otherwise provided in sec19 tions 107(b)(3) and 109(d)(2), and subpara20 graph (C), information obtained under this

21 title, the Export Administration Act of 1979

22 after June 30, 1980, or the Export Administra23 tion Regulations issued under the International

24 Emergency Economic Powers Act, may be with25 held only to the extent permitted by law.
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•S 2203 PCS

1 (C) OTHER INFORMATION.—Information

2 submitted, obtained or considered in connection

3 with an application for an export license or

4 other export authorization, including the export

5 license or other export authorization itself, clas6 sification requests, information obtained during

7 the course of a foreign availability assessment,

8 information or evidence obtained in the course

9 of any investigation, and information obtained

10 or furnished in connection with multilateral

11 agreements, treaties, or obligations under this

12 title, the Export Administration Act of 1979

13 after June 30, 1980, or the Export Administra14 tion Regulations issued under the International

15 Emergency Economic Powers Act, shall not be

16 subject to disclosure under section 552 of title

17 5, United States Code, and such information

18 shall not be published or disclosed unless the

19 Secretary determines that the withholding

20 thereof is contrary to the national interest.

21 (2) INFORMATION TO CONGRESS AND GAO.—

22 (A) IN GENERAL.—Nothing in this title

23 shall be construed as authorizing the withhold24 ing of information from the Congress or the

25 General Accounting Office.
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1 (B) AVAILABILITY TO THE CONGRESS.—

2 (i) IN GENERAL.—All information ob3 tained at any time under this title or pred4 ecessor Acts regarding the control of ex5 ports, including any report or license appli6 cation required under this title, shall be

7 made available upon request to the Com8 mittee on Foreign Affairs and the Sub9 committee on International Economic Pol10 icy and Trade of the House of Representa11 tives, and to the Committee on Banking,

12 Housing, and Urban Affairs and the Sub13 committee on International Finance and

14 Monetary Policy of the Senate. Each such

15 committee or subcommittee may provide to

16 other Members of Congress information

17 obtained under this clause, but such infor18 mation may not be further disclosed except

19 upon a finding made under clause (ii).

20 (ii) PROHIBITION ON FURTHER DIS21 CLOSURE.—No committee or subcommittee

22 described in clause (i), or member thereof,

23 and no other committee, subcommittee, or

24 Member of Congress, shall disclose any in25 formation obtained under this title, or
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•S 2203 PCS

1 predecessor Acts regarding the control of

2 exports that is submitted pursuant to this

3 subsection unless 1 of the full committees

4 described in clause (i) determines that the

5 withholding of that information is contrary

6 to the national interest.

7 (C) AVAILABILITY TO THE GAO.—

8 (i) IN GENERAL.—Information re9 ferred to in subparagraph (B) shall, con10 sistent with the protection of intelligence,

11 counterintelligence, and law enforcement

12 sources, methods, and activities, as deter13 mined by the agency that originally ob14 tained the information, and consistent with

15 the provisions of section 716 of title 31,

16 United States Code, be made available only

17 by the agency, upon request, to the Comp18 troller General of the United States or to

19 any officer or employee of the General Ac20 counting Office authorized by the Comp21 troller General of the United States to

22 have access to such information.

23 (ii) PROHIBITION ON FURTHER DIS24 CLOSURES.—No officer or employee of the

25 General Accounting Office shall disclose,
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•S 2203 PCS

1 except to the Congress in accordance with

2 this paragraph, any information made

3 available under clause (i) that is submitted

4 on a confidential basis and from which any

5 individual can be identified.

6 (3) COMMERCE-CUSTOMS INFORMATION EX7 CHANGE.—The Secretary and the Commissioner of

8 the United States Customs Service shall exchange

9 any licensing and enforcement information that is

10 necessary to facilitate enforcement efforts and effec11 tive license decisions.

12 (4) INFORMATION EXCHANGE BETWEEN COM13 MERCE AND OTHER AGENCIES.—The Secretary and

14 the head of any other Government department or

15 agency shall exchange any licensing information de16 scribed in subsection (d)(1)(C) that such department

17 or agency requests to facilitate effective licensing de18 cisions and analysis.

19 (5) PENALTIES FOR DISCLOSURE OF CON20 FIDENTIAL INFORMATION.—Any officer or employee

21 of the United States, or any department or agency

22 thereof, who publishes, divulges, discloses, or makes

23 known in any manner to any extent not authorized

24 by law, any information obtained in the course of

25 such officer’s or employee’s employment or official
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•S 2203 PCS

1 duties, or by reason of any examination or investiga2 tion, report, record, or filing, of such department,

3 agency, or officer or employee thereof, which infor4 mation may not be disclosed under this subsection—

5 (A) shall be fined not more than $10,000,

6 or imprisoned not more than 1 year, or both;

7 (B) may be removed from office or employ8 ment (in the case of an officer or employee);

9 and

10 (C) shall be subject to an administrative

11 fine of not more than $10,000, in accordance

12 with section 109.

13 (e) AUTHORITY FOR SEMINAR AND PUBLICATIONS

14 FUND.—The Secretary may—

15 (1) cooperate with public agencies, other gov16 ernments, international organizations, private indi17 viduals, private associations, and other groups in

18 connection with seminars, publications, and related

19 activities to carry out export activities, including

20 educating the public or government officials on the

21 application of this title and the regulations issued

22 under this title; and

23 (2) accept contributions of funds, property, or

24 services in connection with such activities to recover

25 the cost of such activities, and may retain such con-
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•S 2203 PCS

1 tributions for use in supporting all outreach func2 tions of the Department in connection with this title,

3 and with other export control programs of the

4 United States and other countries.

5 (f) APPLICABILITY OF ADMINISTRATIVE PROCE6 DURES ACT.—

7 (1) EXEMPTION.—Except as provided in section

8 109(d), the functions exercised under this title are

9 not subject to sections 551, 553 through 559, and

10 701 through 706 of title 5, United States Code.

11 (2) JUDICIAL REVIEW.—Except as provided by

12 subsections (d), (g), and (j) of section 109, a final

13 agency action under this title may be reviewed by

14 appeal to the United States Court of Appeals for the

15 District of Columbia Circuit. The court’s review in

16 any such appeal shall be limited to determining

17 whether—

18 (A) a regulation—

19 (i) fails to take an action compelled by

20 this title;

21 (ii) takes an action prohibited by this

22 title; or

23 (iii) otherwise violates this title;

24 (B) an agency action violates this title;
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1 (C) an agency action violates an agency

2 regulation establishing time requirements or

3 other procedural requirements of a non4 discretionary nature;

5 (D) the issuance of regulations compelled

6 by this title complies with time restrictions im7 posed by this title;

8 (E) license decisions are made and appeals

9 thereof are concluded in compliance with time

10 restrictions imposed by this title;

11 (F) classifications and advisory opinions

12 are issued in compliance with time restrictions

13 imposed by this title;

14 (G) unfair impact determinations are in

15 compliance with time restrictions imposed by

16 this title; or

17 (H) the United States has complied with

18 the requirements of section 105(e) after an un19 fair impact determination has been rendered.

20 (g) INCORPORATED COMMODITIES, TECHNOLOGY,

21 AND SOFTWARE.—

22 (1) COMMODITIES CONTAINING CONTROLLED

23 PARTS AND COMPONENTS.—Export licenses may not

24 be required under this title or any other provision of

25 law for a commodity solely because the commodity
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•S 2203 PCS

1 contains parts or components subject to export con2 trols under this title if such parts or components—

3 (A) are essential to the functioning of the

4 good;

5 (B) are customarily included in sales of the

6 item to countries other than target countries;

7 and

8 (C) comprise not more than 25 percent of

9 the total value of the good, unless the good it10 self, if exported, would by virtue of the func11 tional characteristics of the good as a whole

12 make a significant contribution to the military

13 or proliferation potential of a target country or

14 end user that would prove detrimental to the

15 national security of the United States.

16 (2) REEXPORTS OF FOREIGN-MADE ITEMS IN17 CORPORATING UNITED STATES ITEMS.—Except as

18 provided in paragraph (3), and except for countries

19 named as terrorist-supporting countries under sec20 tion 105(d)(3), no authority or permission may be

21 required—

22 (A) to reexport a foreign-made commodity

23 incorporating United States origin commodities

24 valued at not more than 25 percent of the total

25 value of the foreign-made commodity;
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•S 2203 PCS

1 (B) to reexport foreign-made software in2 corporating United States origin software val3 ued at not more than 25 percent of the total

4 value of the foreign-made software; or

5 (C) to reexport foreign technology commin6 gled with or drawn from United States origin

7 technology valued at not more than 25 percent

8 of the total value of the foreign technology.

9 (3) REEXPORTS TO OTHER COUNTRIES.—For

10 countries that are subject to an embargo imposed

11 under this title, the International Emergency Eco12 nomic Powers Act, or the Trading with the Enemy

13 Act, and for countries named as terrorist-supporting

14 countries under section 105(d)(3), no authority or

15 permission may be required—

16 (A) to reexport a foreign-made commodity

17 incorporating United States origin commodities

18 valued at not more than 10 percent of the total

19 value of the foreign-made commodity;

20 (B) to reexport foreign-made software in21 corporating United States origin software val22 ued at not more than 10 percent of the total

23 value of the foreign-made software; or

24 (C) to reexport foreign technology commin25 gled with or drawn from United States origin
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•S 2203 PCS

1 technology valued at not more than 10 percent

2 of the total value of the foreign technology.

3 (4) INCORPORATION STANDARD.—For purposes

4 of this subsection, technology and source code used

5 to design or produce foreign-made commodities or

6 software shall not be considered to be incorporated

7 into such foreign-made commodities or software.

8 Notwithstanding the preceding sentence, the Sec9 retary may require firms to report their proposed

10 calculations and underlying data sufficient for the

11 Department to evaluate the adequacy of those cal12 culations and data related to commodities, tech13 nology, and software before a reexporter may rely

14 upon the exceptions from export controls under this

15 subsection.

16 (h) SANCTITY OF EXISTING CONTRACTS AND LI17 CENSES.—

18 (1) IN GENERAL.—As part of a unilateral ex19 port control imposed under section 105, the Presi20 dent may not prohibit the export or reexport of

21 items—

22 (A) in performance of a contract, agree23 ment, or other contractual commitment entered

24 into before the effective date of any export con25 trols mandated by this title, or before the date
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•S 2203 PCS

1 on which the President reports to the Congress

2 the President’s intention to impose controls on

3 the export or reexport of such items; or

4 (B) under a validated license issued under

5 this title before the effective date of any export

6 controls mandated by this title, or before the

7 date on which the President reports to the Con8 gress the President’s intention to impose con9 trols on the export or reexport of such items.

10 (2) EXCEPTION.—The prohibition in paragraph

11 (1) shall not apply if the President determines and

12 certifies to the Congress that—

13 (A) a breach of the peace poses a serious

14 and direct threat to the strategic interest of the

15 United States;

16 (B) the prohibition or curtailment of each

17 such contract, agreement, commitment, license,

18 or authorization to be controlled will be directly

19 instrumental in remedying the situation posing

20 the direct threat; and

21 (C) the emergency controls will continue

22 only for so long as the direct threat persists.

23 (3) NO DELEGATION.—The determination au24 thority provided to the President in paragraph (2)

25 may not be delegated.
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1 (i) TRANSPARENCY AND ACCOUNTABILITY IN LI2 CENSING.—

3 (1) INFORMATION TO BE PROVIDED.—The Sec4 retary and the Secretary of Defense shall semiannu5 ally compile and make available to any committee or

6 subcommittee of Congress of appropriate jurisdic7 tion, a record showing the disposition of each appli8 cation received for an individual validated license to

9 export a dual use commodity. Each such record shall

10 contain—

11 (A) a case number;

12 (B) the date on which the application was

13 received;

14 (C) the name of the applicant;

15 (D) the name of the consignee;

16 (E) the date on which the application was

17 finally approved or denied;

18 (F) a description of the final action taken

19 on the application;

20 (G) the value of the commodity that is the

21 subject of the application;

22 (H) the license type applied for;

23 (I) the end use of the commodity that is

24 the subject of the application;
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1 (J) the relevant commodity information;

2 and

3 (K) a record of all interagency positions.

4 (2) TIMING.—The Secretary and the Secretary

5 of Defense shall begin to compile records as required

6 under paragraph (1) on the first business day of the

7 January following the date of enactment of this Act.

8 (3) CERTIFICATION OF APPROVED LICENSES.—

9 The Secretary and the Secretary of Defense shall

10 semiannually certify to the Congress that no license

11 to export a dual use commodity approved during the

12 preceding 6-month period poses a threat to the na13 tional security or nonproliferation interests of the

14 United States.

15 (4) OTHER INFORMATION.—The Secretary and

16 the Secretary of Defense shall make available to any

17 committee or subcommittee of Congress of appro18 priate jurisdiction, upon request of the chairperson

19 or the ranking minority member of such committee

20 or subcommittee, all documents, including the appli21 cation contained in the file, related to any case

22 record compiled in accordance with this subsection.

23 SEC. 112. MISSILE PROLIFERATION CONTROL VIOLATIONS.

24 (a) VIOLATIONS BY UNITED STATES PERSONS.—

25 (1) NONDISCRETIONARY SANCTIONS.—
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1 (A) DETERMINATION BY THE PRESI2 DENT.—The President shall impose the applica3 ble sanctions described in subparagraph (B), if

4 the President determines that a United States

5 person knowingly—

6 (i) exports, transfers, or otherwise en7 gages in the trade of any item on the

8 MTCR Annex, in violation of the provi9 sions of section 38 or chapter 7 of the

10 Arms Export Control Act, section 105 of

11 this title, or any regulations or orders is12 sued under any such provisions;

13 (ii) conspires or attempts to engage in

14 such export, transfer, or trade; or

15 (iii) facilitates such export, transfer,

16 or trade by any other person.

17 (B) SANCTIONS APPLICABLE.—The sanc18 tions that apply to a United States person

19 under subparagraph (A) are as follows:

20 (i) CATEGORY II ITEMS.—If the item

21 on the MTCR Annex involved in the ex22 port, transfer, or trade is missile equip23 ment or technology within category II of

24 the MTCR Annex, the President shall deny

25 to such United States person, for a period
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•S 2203 PCS

1 of 2 years, licenses for the transfer of mis2 sile equipment or technology controlled

3 under this title.

4 (ii) CATEGORY I ITEMS.—If the item

5 on the MTCR Annex involved in the ex6 port, transfer, or trade is missile equip7 ment or technology within category I of the

8 MTCR Annex, the President shall deny to

9 such United States person, for a period of

10 not less than 2 years, all export licenses

11 for items controlled under this title.

12 (2) DISCRETIONARY SANCTIONS.—In the case

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

14 the President may pursue any other appropriate

15 penalties under this section.

16 (3) WAIVER.—The President may waive the im17 position of sanctions under paragraph (1) on a Unit18 ed States person with respect to a product or service

19 if the President certifies to the Congress that—

20 (A) the product or service is essential to

21 the national security of the United States; and

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

23 the product or service, the product or service is

24 not available from any alternative reliable sup25 plier, and the need for the product or service
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•S 2203 PCS

1 cannot be met in a timely manner by improved

2 manufacturing processes or technological devel3 opments.

4 (b) VIOLATIONS BY FOREIGN PERSONS.—

5 (1) NONDISCRETIONARY SANCTIONS.—

6 (A) DETERMINATION BY THE PRESI7 DENT.—Subject to paragraphs (3) through (7),

8 the President shall impose on a foreign person

9 the applicable sanctions under subparagraph

10 (B) if the President has made a determination

11 with respect to that foreign person under sec12 tion 73(a) of the Arms Export Control Act, or

13 if a foreign person, after the date of enactment

14 of this Act, knowingly—

15 (i) exports, transfers, or otherwise en16 gages in the trade of any MTCR equip17 ment or technology that contributes to the

18 design, development, or production of mis19 siles in a country that is not an MTCR ad20 herent and would be, if it were United

21 States-origin equipment or technology,

22 subject to the jurisdiction of the United

23 States under this title;

24 (ii) conspires to or attempts to engage

25 in such export, transfer, or trade; or
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•S 2203 PCS

1 (iii) facilitates such export, transfer,

2 or trade by any other person.

3 (B) SANCTIONS APPLICABLE.—The sanc4 tions that apply to a foreign person under sub5 paragraph (A) are as follows:

6 (i) CATEGORY II ITEMS.—If the item

7 involved in the export, transfer, or trade is

8 within category II of the MTCR Annex,

9 then the President shall deny, for a period

10 of 2 years, licenses for the transfer to such

11 foreign person of missile equipment or

12 technology controlled under this title.

13 (ii) CATEGORY I ITEMS.—If the item

14 involved in the export, transfer, or trade is

15 within category I of the MTCR Annex,

16 then the President shall deny, for a period

17 of not less than 2 years, licenses for the

18 transfer to such foreign person of items

19 controlled under this title.

20 (iii) ADDITIONAL AUTHORITY.—If, in

21 addition to actions taken under clause (i)

22 or (ii), the President determines that the

23 export, transfer, or trade has substantially

24 contributed to the design, development, or

25 production of missiles in a country that is
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1 not an MTCR adherent, the President

2 shall prohibit, for a period of not less than

3 2 years, the importation into the United

4 States of products produced by that for5 eign person.

6 (2) INAPPLICABILITY WITH RESPECT TO MTCR

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

8 respect to—

9 (A) any export, transfer, or trading activ10 ity that is authorized by the laws of an MTCR

11 adherent, if such authorization is not obtained

12 by misrepresentation or fraud; or

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

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

15 MTCR adherent.

16 (3) EFFECT OF ENFORCEMENT ACTIONS BY

17 MTCR ADHERENTS.—If an MTCR adherent is taking

18 judicial or other enforcement action against a person

19 with respect to acts described in paragraph (1), or

20 that person has been found by the government of an

21 MTCR adherent to be innocent of wrongdoing with

22 respect to such acts, sanctions may not be imposed

23 under paragraph (1) on that person with respect to

24 those acts or, if such sanctions are in effect against
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1 a person due to such acts, such sanctions shall be

2 terminated.

3 (4) ADVISORY OPINIONS.—The Secretary, in

4 consultation with the Secretary of State and the

5 Secretary of Defense, may, upon the request of any

6 person, issue an advisory opinion to that person as

7 to whether a proposed activity would subject that

8 person to sanctions under this subsection. Any per9 son who relies in good faith on an advisory opinion

10 that states that a proposed activity would not sub11 ject a person to sanctions under this subsection, and

12 any person who thereafter engages in such activity,

13 may not be made subject to such sanctions due to

14 such activity.

15 (5) WAIVER AND REPORT TO CONGRESS.—

16 (A) IN GENERAL.—In any case, other than

17 one in which an advisory opinion has been is18 sued under paragraph (4) stating that a pro19 posed activity would not subject a person to

20 sanctions under this subsection, the President

21 may waive the imposition of sanctions under

22 paragraph (1) on a person with respect to a

23 product or service if the President—
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1 (i) certifies to the Congress that the

2 product or service is essential to the na3 tional security of the United States and—

4 (I) such person is a sole source

5 supplier of the product or service;

6 (II) the product or service is not

7 available from any alternative reliable

8 supplier; and

9 (III) the need for the product or

10 service cannot be met in a timely

11 manner by improved manufacturing

12 processes or technological develop13 ments; or

14 (ii) determines that such waiver is es15 sential to the national security of the Unit16 ed States.

17 (B) NOTIFICATION.—In the event that the

18 President intends to waive sanctions in accord19 ance with subparagraph (A), the President shall

20 notify the Congress of the intended waiver not

21 less than 20 business days before issuing the

22 waiver. Such notification shall include a report

23 fully articulating the rationale and cir24 cumstances in support of the waiver.
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1 (6) WAIVER FOR CERTAIN ITEMS.—The Presi2 dent shall not apply the sanction under this sub3 section prohibiting the importation of the products

4 of a foreign person—

5 (A) in the case of procurement of defense

6 articles or defense services—

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

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

11 the United States;

12 (ii) if the President determines that—

13 (I) the person to which the sanc14 tions would be applied is a sole source

15 supplier of the defense articles and

16 services;

17 (II) the defense articles or serv18 ices are essential to the national secu19 rity of the United States; and

20 (III) alternative sources are not

21 readily or reasonably available; or

22 (iii) if the President determines that

23 such articles or services are essential to the

24 national security of the United States
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1 under defense coproduction agreements or

2 NATO Programs of Cooperation;

3 (B) to products or services provided under

4 contracts entered into before the date on which

5 the President publishes the intention to impose

6 the sanctions; or

7 (C) to—

8 (i) spare parts;

9 (ii) component parts, but not finished

10 products, essential to United States prod11 ucts or production;

12 (iii) routine services and maintenance

13 of products, to the extent that alternative

14 sources are not readily or reasonably avail15 able; or

16 (iv) information and technology essen17 tial to United States products or produc18 tion.

19 (7) DEFINITION OF PERSON.—For purposes of

20 this subsection, if it is impossible to identify a spe21 cific foreign person or foreign governmental entity,

22 this subsection shall apply to—

23 (A) all activities of the foreign government

24 relating to the development or production of

25 any missile equipment or technology; and
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1 (B) all activities of that foreign govern2 ment affecting the development or production of

3 aircraft, electronics, and space systems or

4 equipment.

5 SEC. 113. CHEMICAL AND BIOLOGICAL WEAPONS PRO6 LIFERATION SANCTIONS.

7 (a) IMPOSITION OF SANCTIONS.—

8 (1) DETERMINATION BY THE PRESIDENT.—Ex9 cept as provided in subsection (b)(2), the President

10 shall impose both of the sanctions described in sub11 section (c)(1) if the President determines that a for12 eign person, on or after the date of enactment of

13 this Act, has knowingly and materially contributed

14 to the efforts by any foreign country, project, or en15 tity described in paragraph (2) to use, develop,

16 produce, stockpile, or otherwise acquire chemical or

17 biological weapons—

18 (A) through the export from the United

19 States of any goods or technology that are sub20 ject to the jurisdiction of the United States

21 under this title; or

22 (B) through the export from any other

23 country of any goods or technology that would

24 be, if they were United States goods or tech-
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1 nology, subject to the jurisdiction of the United

2 States under this title.

3 (2) COUNTRIES, PROJECTS, OR ENTITIES RE4 CEIVING ASSISTANCE.—Paragraph (1) applies in the

5 case of—

6 (A) any foreign country that the President

7 determines has, at any time after January 1,

8 1980—

9 (i) used chemical or biological weap10 ons in violation of international law;

11 (ii) used lethal chemical or biological

12 weapons against its own nationals; or

13 (iii) made substantial preparations to

14 engage in the activities described in clause

15 (i) or (ii);

16 (B) any foreign country, the government of

17 which is determined for purposes of section

18 105(d)(3), to be a government that has repeat19 edly provided support for acts of international

20 terrorism; or

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

22 entity designated by the President for purposes

23 of this section.

24 (3) PERSONS AGAINST WHICH SANCTIONS ARE

25 TO BE IMPOSED.—Sanctions shall be imposed on—
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1 (A) the foreign person with respect to

2 which the President makes the determination

3 described in paragraph (1);

4 (B) any successor entity to that foreign

5 person;

6 (C) any foreign person that is a parent

7 company or subsidiary of that foreign person if

8 that parent company or subsidiary knowingly

9 assisted in the activities that were the basis of

10 that determination; and

11 (D) any foreign person that is an affiliate

12 of that foreign person if that affiliate knowingly

13 assisted in the activities that were the basis of

14 that determination and if that affiliate is con15 trolled in fact by that foreign person.

16 (b) CONSULTATIONS WITH AND ACTIONS BY FOR17 EIGN GOVERNMENT OF JURISDICTION.—

18 (1) CONSULTATIONS.—If the President makes

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

20 with respect to a foreign person, the President

21 should initiate consultations immediately with the

22 government with primary jurisdiction over that for23 eign person with respect to the imposition of sanc24 tions pursuant to this section.
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1 (2) ACTIONS BY GOVERNMENT OF JURISDIC2 TION.—In order to pursue such consultations with

3 the government referral to in paragraph (1), the

4 President may delay imposition of sanctions pursu5 ant to this section for a period of not more than 90

6 days. Following such consultations, the President

7 shall impose sanctions, unless the President deter8 mines and certifies to the Congress that that govern9 ment has taken specific and effective actions, includ10 ing appropriate penalties, to terminate the involve11 ment of the foreign person in the activities described

12 in subsection (a)(1). The President may delay impo13 sition of sanctions for an additional period of not

14 more than 90 days if the President determines and

15 certifies to the Congress that that government is in

16 the process of taking the actions described in the

17 preceding sentence.

18 (3) REPORT TO CONGRESS.—The President

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

20 after making a determination under subsection

21 (a)(1), on the status of consultations with the appro22 priate government under this subsection, and the

23 basis for any determination under paragraph (2)

24 that such government has taken specific corrective

25 actions.
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1 (c) SANCTIONS.—

2 (1) DESCRIPTION OF SANCTIONS.—The sanc3 tions to be imposed pursuant to subsection (a)(1)

4 are, except as provided in paragraph (2), as follows:

5 (A) PROCUREMENT SANCTION.—The Unit6 ed States shall not procure, or enter into any

7 contract for the procurement of, any goods or

8 services from any person described in sub9 section (a)(3).

10 (B) IMPORT SANCTIONS.—The importation

11 into the United States of products produced by

12 any person described in subsection (a)(3) shall

13 be prohibited.

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

15 required to apply or maintain sanctions under this

16 section—

17 (A) in the case of procurement of defense

18 articles or defense services—

19 (i) under existing contracts or sub20 contracts, including the exercise of options

21 for production quantities to satisfy United

22 States operational military requirements;

23 (ii) if the President determines that

24 the person or other entity to which the

25 sanctions would otherwise be applied is a
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•S 2203 PCS

1 sole source supplier of the defense articles

2 or services, that the defense articles or

3 services are essential, and that alternative

4 sources are not readily or reasonably avail5 able; or

6 (iii) if the President determines that

7 such articles or services are essential to the

8 national security under defense

9 coproduction agreements;

10 (B) to products or services provided under

11 contracts entered into before the date on which

12 the President publishes the intention to impose

13 sanctions;

14 (C) to—

15 (i) spare parts;

16 (ii) component parts, but not finished

17 products, essential to United States prod18 ucts or production; or

19 (iii) routine servicing and mainte20 nance of products, to the extent that alter21 native sources are not readily or reason22 ably available;

23 (D) to information and technology essen24 tial to United States products or production; or

25 (E) to other humanitarian items.
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1 (d) TERMINATION OF SANCTIONS.—The sanctions

2 imposed pursuant to this section shall apply for a period

3 of not less than 12 months following the date of imposition

4 of sanctions, and shall cease to apply thereafter only if

5 the President determines and certifies to the Congress

6 that reliable information indicates that the foreign person

7 with respect to which the determination was made under

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

9 government, project, or entity in its efforts to acquire

10 chemical or biological weapons capability, as described in

11 that subsection.

12 (e) WAIVER OF SANCTIONS.—

13 (1) CRITERION FOR WAIVER.—The President

14 may waive the application of any sanction imposed

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

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

17 which that sanction was imposed, if the President

18 determines and certifies to the Congress that such

19 waiver is important to the national security interests

20 of the United States.

21 (2) NOTIFICATION OF AND REPORT TO CON22 GRESS.—If the President waives sanctions in accord23 ance with paragraph (1), the President shall so no24 tify the Congress not less than 20 days before the

25 waiver takes effect. Such notification shall include a
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1 report fully articulating the rationale and cir2 cumstances that led the President to exercise the

3 waiver authority.

4 SEC. 114. ANNUAL REPORT.

5 (a) CONTENTS.—Not later than March 1 of each

6 year, the Secretary shall submit to the Congress a report

7 on the administration of this title during the preceding

8 calendar year. All agencies shall cooperate with the Sec9 retary in providing information for such report. Such re10 port shall include detailed information on—

11 (1) the implementation of the policies set forth

12 in section 102(b), including—

13 (A) delegations of authority by the Presi14 dent, as provided in section 104(d);

15 (B) consultations with the technical advi16 sory committees;

17 (C) any changes in the exercise of the au18 thorities contained in sections 105, 106, and

19 107; and

20 (D) any action taken by the President and

21 the Secretary to carry out the antiboycott poli22 cies set forth in paragraphs (9) and (10) of sec23 tion 102(b);

24 (2) adjustments to multilateral export controls,

25 activities involving the license free zones authorized
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1 by section 105(b)(8), and determinations under sec2 tion 105(b)(7), the criteria used to make such deter3 minations, the removal of any export controls under

4 paragraphs (7) and (8) of section 105(b), and any

5 evidence demonstrating a need to maintain export

6 controls notwithstanding foreign availability;

7 (3) determinations made under section 105(e)

8 and the rationale for such determinations;

9 (4) the effectiveness of unilateral export con10 trols imposed under section 105, and any adjust11 ments, thereto and embargoes imposed, maintained,

12 or removed in accordance with section 105, including

13 descriptions of each embargo and the rationale for

14 imposing, maintaining, or removing such embargoes;

15 (5) short supply controls and monitoring in ac16 cordance with section 106;

17 (6) organizational and procedural changes un18 dertaken in furtherance of the policies set forth in

19 this title, including changes to increase the efficiency

20 of the export licensing process and to fulfill the re21 quirements of section 108, including an accounting

22 of appeals received, and actions taken pursuant

23 thereto under section 108(i);
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1 (7) violations under section 109, enforcement

2 activities under section 110, and any reviews under3 taken in furtherance of the policies of this title;

4 (8) the issuance and revision of regulations

5 under this title, including an explanation of each

6 case in which regulations were not issued in accord7 ance with section 111(c)(1);

8 (9) the results, in as much detail as may be in9 cluded, consistent with multilateral arrangements

10 and the need to maintain the confidentiality of pro11 prietary information and classified information, of

12 the reviews of the Control List, and any revisions to

13 the Control List resulting from such reviews con14 ducted under section 104(f), including all elements

15 specified in section 104(f)(2)(B);

16 (10) any action taken to carry out section

17 104(i);

18 (11) the imposition or removal of sanctions

19 against certain entities and foreign countries in ac20 cordance with sections 112 and 113;

21 (12) any efforts to keep United States industry

22 informed with respect to procedures adopted under

23 this title; and

24 (13) the assessments required under section

25 105 of the effectiveness of multilateral regimes, por-
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1 tions of which may be provided on a confidential

2 basis, as necessary.

3 (b) REPORT ON CERTAIN EXPORT CONTROLS.—To

4 the extent that the President determines that the policies

5 set forth in section 102(b) require the control of the export

6 of items other than those subject to multilateral controls,

7 or require more stringent controls than those imposed by

8 the relevant multilateral regime, the President shall in9 clude in each annual report the reasons for the need to

10 impose, or to continue to impose, such controls and the

11 estimated domestic economic impact on the various indus12 tries affected by such controls.

13 SEC. 115. EFFECTS ON OTHER ACTS.

14 (a) COMMODITY JURISDICTION.—

15 (1) INCLUSION AND CONTROL.—Notwithstand16 ing any other provision of law, no item may be in17 cluded on both the Control List and the United

18 States Munitions List, after the publication of the

19 lists required under paragraph (4) and the resolu20 tion of any dispute with respect to such lists under

21 paragraph (5).

22 (2) ELIMINATION OF OVERLAPPING CON23 TROLS.—Notwithstanding any other provision of

24 law—
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1 (A) an item that is specifically designed,

2 developed, configured, adapted, or modified for

3 military or intelligence application shall be sub4 ject to control under the Arms Export Control

5 Act and not under this title; and

6 (B) except as provided in paragraph (3),

7 an item that is not specifically designed, devel8 oped, configured, adapted, or modified for mili9 tary or intelligence application shall be subject

10 to control under this title and not under the

11 Arms Export Control Act.

12 (3) DETERMINATION BY THE PRESIDENT.—An

13 item that is not specifically designed, developed, con14 figured, adapted, or modified for military or intel15 ligence application may be subject to control under

16 the Arms Export Control Act only if the President—

17 (A) determines that extraordinary cir18 cumstances exist affecting the national security

19 of the United States, which require that the

20 item be controlled under the Arms Export Con21 trol Act; and

22 (B) not later than 10 days after making

23 the determination under subparagraph (A),

24 submits a report to the Speaker of the House

25 of Representatives and the President pro tem-
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•S 2203 PCS

1 pore of the Senate, describing in detail the rea2 sons for the determination, in appropriate clas3 sified form, as necessary.

4 (4) PUBLICATION OF LISTS.—

5 (A) IN GENERAL.—

6 (i) TIME OF PUBLICATION.—Not later

7 than 3 months after the date of enactment

8 of this subsection, the Secretary shall pub9 lish the Control List and the Secretary of

10 State shall publish the United States Mu11 nitions List, with all revisions that have

12 been made in accordance with this sub13 section.

14 (ii) ITEMS CONTROLLED UNDER THE

15 ARMS EXPORT CONTROL ACT.—Not later

16 than 3 months after the date of enactment

17 of this Act, the Secretary of State shall

18 publish in a separate list, those items re19 maining subject to control under the Arms

20 Export Control Act under paragraphs (2)

21 and (3).

22 (B) REMOVAL OF ITEM NOT PUBLISHED.—

23 If either the Secretary or the Secretary of State

24 fails to publish a revised list in accordance with

25 subparagraph (A)(i), there shall be excluded
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1 from the list of the Secretary that did not so

2 publish a revised list, any item included on the

3 list of the Secretary that did so publish a re4 vised list.

5 (5) DISPUTE RESOLUTION.—

6 (A) REFERRAL.—The Secretary or the

7 Secretary of State (as the case may be) shall

8 refer the matter and any relevant information

9 to the other Secretary if—

10 (i) the Secretary or the Secretary of

11 State receives a request to determine

12 whether an item is subject to control under

13 this title or the Arms Export Control Act;

14 (ii) either Secretary finds that an item

15 is included on both the Control List and

16 the United States Munitions List;

17 (iii) an item appearing on the list of

18 one Secretary under paragraph (4)(A)(i) is

19 considered by the other Secretary to be

20 under the jurisdiction of that other Sec21 retary; or

22 (iv) the Secretary disagrees with the

23 inclusion of an item on the list published

24 under paragraph (4)(A)(ii).
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1 (B) INITIAL PERIOD TO RESOLVE DIS2 PUTE.—The Secretary and the Secretary of

3 State shall have a period of 15 days beginning

4 on the date of the referral of a matter under

5 subparagraph (A) to resolve any differences

6 with respect to the matter involved.

7 (C) FINAL DECISION BY THE PRESI8 DENT.—If the Secretary and the Secretary of

9 State fail to resolve such differences within the

10 15-day period specified in subparagraph (B), ei11 ther Secretary may refer the matter to the

12 President who, not later than 15 days after re13 ceiving the referral, shall notify the two Sec14 retaries of the President’s determination on the

15 matter in dispute.

16 (D) WAIVER OF DISPUTE.—In the event

17 that either the Secretary or the Secretary of

18 State does not respond to a referral under sub19 paragraph (A) by the other Secretary, the Sec20 retary that did not so respond shall be deemed

21 to concur with the other Secretary on the mat22 ter involved.

23 (b) RULE OF CONSTRUCTION.—Except as otherwise

24 provided in this title, nothing contained in this title shall

25 be construed to modify, repeal, supersede, or otherwise af-
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1 fect the provisions of any other laws authorizing control

2 over exports of any commodity.

3 (c) AMENDMENTS TO THE INTERNATIONAL EMER4 GENCY ECONOMIC POWERS ACT.—

5 (1) EXPIRED LEGISLATIVE AUTHORITY.—Sec6 tion 207 of the International Emergency Economic

7 Powers Act (50 U.S.C. 1706) is amended—

8 (A) by redesignating subsections (c) and

9 (d) as subsections (d) and (e), respectively; and

10 (B) by inserting after subsection (b) the

11 following new subsection:

12 ‘‘(c) EXPIRED LEGISLATIVE AUTHORITY.—

13 ‘‘(1) IN GENERAL.—The President may use the

14 authority of this Act to extend or reinstate an ex15 pired provision of law for only one period of not

16 more than 180 days after the date of such expira17 tion, unless the President submits a declaration of

18 emergency requiring such extension or reinstatement

19 for more than 180 days to the Congress and the

20 Congress approves such use of authority, as provided

21 in paragraph (3).

22 ‘‘(2) INTRODUCTION OF AUTHORIZING LEGISLA23 TION.—

24 ‘‘(A) IN GENERAL.—In any case in which

25 the President has invoked the authority of this
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1 Act to extend or reinstate an expired provision

2 of law, a bill providing a simple extension of the

3 expired legislative authority for a period of not

4 less than 180 days shall be introduced in each

5 House of Congress as follows:

6 ‘‘(i) HOUSE OF REPRESENTATIVES.—

7 In the House of Representatives, the bill

8 shall be introduced by the chairman of the

9 appropriate committee of jurisdiction, for

10 the chairman and the ranking minority

11 member of the committee, or by the Mem12 bers of the House designated by the chair13 man and ranking minority member.

14 ‘‘(ii) SENATE.—In the Senate, the bill

15 shall be introduced by the Majority Leader

16 of the Senate, for the Majority Leader and

17 the Minority Leader of the Senate, or by

18 Members of the Senate designated by the

19 Majority Leader and the Minority Leader

20 of the Senate.

21 ‘‘(iii) TIMING.—The bills shall be in22 troduced not later than 10 calender days

23 after the President’s action under para24 graph (1) or, if either House is not in ses25 sion at the end of such period, on the first
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1 day thereafter on which that House is in

2 session.

3 ‘‘(B) PROCEDURES FOR INTRODUCTION

4 AND COMMITTEE CONSIDERATION.—

5 ‘‘(i) BILL PROVIDING A SIMPLE EX6 TENSION OF AUTHORITY DEFINED.—For

7 purposes of this subsection, the term ‘a bill

8 providing a simple extension of expired leg9 islative authority’ means a bill that pro10 vides exclusively for the termination of

11 statutory authority, not less than 180 days

12 following the date of enactment of such

13 legislation.

14 ‘‘(ii) REFERRAL TO COMMITTEE.—

15 Any bill described in this subparagraph

16 that is introduced in the House of Rep17 resentatives or the Senate shall be referred

18 to the appropriate committees of jurisdic19 tion in that House.

20 ‘‘(iii) DISCHARGE FROM COMMIT21 TEE.—If the committee of either House to

22 which a bill described in this paragraph

23 has been referred has not reported such

24 bill, or any other bill on the same matter,

25 at the end of 60 days after the bill’s refer-
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1 ral, the committee shall be discharged from

2 further consideration of the original bill.

3 ‘‘(C) NO EFFECT ON PRESIDENTIAL AU4 THORITY.—The failure of either or both Houses

5 to pass any bill described in this paragraph

6 shall have no effect on any extension or rein7 statement of an expired provision of law by the

8 President under paragraph (1).

9 ‘‘(3) PROCEDURE FOR EXTENDING EMERGENCY

10 AUTHORITY.—

11 ‘‘(A) PROPOSAL REQUIRED.—If the Presi12 dent determines that extension of an expiring

13 provision of law beyond the 180 days provided

14 in paragraph (1) is necessary to the national se15 curity, foreign policy, or economy of the United

16 States, the President shall, not later than 120

17 days after the date on which the President ex18 tends or reinstates a provision of law under

19 paragraph (1) or, if on that date the Congress

20 has recessed, adjourned to a date certain, or

21 adjourned sine die, then not later than 5 days

22 after the Congress comes back into session,

23 submit to the Congress—

24 ‘‘(i) a declaration of emergency ex25 plaining any unusual and extraordinary
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1 threat, which has its source in whole or

2 substantial part outside of the United

3 States, to the national security, foreign

4 policy, or economy of the United States

5 that justifies extension of any expiring

6 statutory authority; and

7 ‘‘(ii) a proposal to extend the expiring

8 authority for not more than 1 year.

9 ‘‘(B) REQUIREMENT FOR CONGRESSIONAL

10 APPROVAL.—The proposed extension of author11 ity shall not take effect unless the Congress,

12 not later than 60 calendar days after receiving

13 the report, enacts a joint resolution approving

14 the extension.

15 ‘‘(C) PROCEDURES FOR INTRODUCTION

16 AND COMMITTEE CONSIDERATION.—

17 ‘‘(i) JOINT RESOLUTION DEFINED.—

18 For purposes of this paragraph, the term

19 ‘joint resolution’ means only a joint resolu20 tion the matter after the resolving clause

21 of which is as follows: ‘That the President

22 is authorized to continue to exercise the

23 authority of the lllllllll, for

24 a period of ll days, as proposed in the

25 submission of the President of
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•S 2203 PCS

1 lllllllll’, with the blank

2 spaces being filled with the appropriate ci3 tations of lapsed legislative authority, time

4 period, and date of the submission of the

5 proposal.

6 ‘‘(ii) INTRODUCTION.—On the day on

7 which a proposal is submitted to the House

8 of Representatives and the Senate under

9 subparagraph (A), a joint resolution with

10 respect to the proposed extension shall be

11 introduced—

12 ‘‘(I) in the House of Representa13 tives (by request) by the chairman of

14 the appropriate committee of jurisdic15 tion, for the chairman and the rank16 ing minority member of the commit17 tee, or by the Members of the House

18 designated by the chairman and rank19 ing minority member; and

20 ‘‘(II) in the Senate (by request)

21 by the Majority Leader of the Senate,

22 for the Majority Leader and the Mi23 nority Leader of the Senate, or Mem24 bers of the Senate designated by the
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•S 2203 PCS

1 Majority Leader and the Minority

2 Leader of the Senate.

3 ‘‘(iii) SUBMISSION WHILE NOT IN SES4 SION.—If the other House is not in session

5 on the day on which the proposal is sub6 mitted, the joint resolution shall be intro7 duced on the first day thereafter on which

8 that House is in session.

9 ‘‘(iv) REFERRAL TO COMMITTEE.—

10 Any joint resolution introduced under this

11 paragraph in the House of Representatives

12 or the Senate shall be referred to the ap13 propriate committee of jurisdiction.

14 ‘‘(v) DISCHARGE FROM COMMITTEE.—

15 If the committee of either House to which

16 a joint resolution has been referred under

17 this paragraph has not reported the joint

18 resolution at the end of 30 days after its

19 referral, the committee shall be discharged

20 from further consideration of the joint res21 olution and of any other joint resolution

22 introduced with respect to the same mat23 ter.

24 ‘‘(D) CONGRESSIONAL ACTION NOT RE25 QUIRED.—If the legislative authority extended
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•S 2203 PCS

1 or reinstated under the authority of this sub2 section is extended or reinstated by legislation

3 passed in accordance with paragraph (2) or any

4 other provision of law for a period longer than

5 that proposed by the President under subpara6 graph (A)(ii) prior to the expiration of the 60-

7 day period described in subparagraph (B), then

8 no further action on any joint resolution de9 scribed in this paragraph is required, and the

10 procedures of subparagraph (C) are waived.

11 ‘‘(4) FLOOR CONSIDERATION OF BILLS AND

12 JOINT RESOLUTIONS.—

13 ‘‘(A) PROCEDURES.—Any bill or joint reso14 lution described in subparagraph (B) shall be

15 considered in the Senate in accordance with

16 section 601(b) of the International Security As17 sistance and Arms Export Control Act of 1976.

18 For the purpose of expediting the consideration

19 and enactment of such bill or joint resolution

20 under this subsection, a motion to proceed to

21 the consideration of any such bill or joint reso22 lution after it has been reported by the appro23 priate committee shall be treated as highly priv24 ileged in the House of Representatives.
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•S 2203 PCS

1 ‘‘(B) AFFECTED BILLS AND JOINT RESO2 LUTIONS.—

3 ‘‘(i) IN GENERAL.—The procedures in

4 subparagraph (A) shall apply to—

5 ‘‘(I) any bill in the form de6 scribed in paragraph (2)(B)(i) and

7 discharged from committee as pro8 vided in paragraph (2)(B)(iii); and

9 ‘‘(II) any joint resolution de10 scribed in paragraph (3)(C)(i) or any

11 other joint resolution with respect to

12 the same matter discharged from

13 committee as provided in paragraph

14 (3)(C)(v).

15 ‘‘(ii) EXCEPTION.—Any bill on the

16 same matter as a bill described in para17 graph (2)(B)(i) that is reported from com18 mittee in a form other than as described in

19 that paragraph shall be considered in the

20 House of Representatives and the Senate

21 under normal legislative procedures.

22 ‘‘(C) BILL OR JOINT RESOLUTION RE23 CEIVED FROM OTHER HOUSE.—In the case of a

24 bill in the form described in paragraph

25 (2)(B)(i) or a joint resolution described in para-
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1 graph (3)(C)(i), if, before the passage by 1

2 House of such a bill or joint resolution of that

3 House, that House receives such a bill or joint

4 resolution with respect to the same matter from

5 the other House, then—

6 ‘‘(i) the procedure in that House shall

7 be the same as if no bill or joint resolution

8 had been received from the other House;

9 but

10 ‘‘(ii) the vote on final passage shall be

11 on the bill or joint resolution of the other

12 House.

13 ‘‘(D) COMPUTING TIME PERIODS.—In com14 puting the time periods referred to in para15 graphs (2)(B)(iii), (3)(B), and (3)(C)(v), there

16 shall be excluded the days on which either

17 House of Congress is not in session because of

18 an adjournment of more than 3 days to a day

19 certain or because of an adjournment of the

20 Congress sine die.’’.

21 (2) CONFIDENTIALITY OF INFORMATION.—The

22 International Emergency Economic Powers Act (50

23 U.S.C. 1701 et seq.) is amended by adding at the

24 end the following new section:
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1 ‘‘SEC. 209. CONFIDENTIALITY OF INFORMATION.

2 ‘‘(a) EXEMPTIONS FROM DISCLOSURE.—Information

3 obtained under this Act may be withheld only to the extent

4 permitted by statute, except that information submitted,

5 obtained or considered in connection with an application

6 for an export license or other export authorization under

7 this Act, including the export license or other export au8 thorization itself, classification requests, information ob9 tained during the course of a foreign availability assess10 ment, information or evidence obtained in the course of

11 any investigation, and information obtained or furnished

12 in connection with multilateral agreements, treaties, or ob13 ligations under this Act shall not be subject to disclosure

14 under section 552 of title 5, United States Code, and shall

15 be withheld from public disclosure unless the release of

16 such information is determined by the Secretary to be in

17 the national interest.

18 ‘‘(b) INFORMATION TO CONGRESS AND GAO.—

19 ‘‘(1) IN GENERAL.—Nothing in this Act shall

20 be construed as authorizing the withholding of infor21 mation from the Congress or from the General Ac22 counting Office.

23 ‘‘(2) AVAILABILITY TO THE CONGRESS.—

24 ‘‘(A) IN GENERAL.—All information ob25 tained at any time under this Act regarding the

26 control of exports, including any report or li-
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1 cense application required under this Act, shall

2 upon request be made available to the Commit3 tee on Foreign Affairs and the Subcommittee

4 on International Economic Policy and Trade of

5 the House of Representatives and the Commit6 tee on Banking, Housing, and Urban Affairs

7 and the Subcommittee on International Finance

8 and Monetary Policy of the Senate. The com9 mittees and subcommittees referred to in the

10 preceding sentence may not provide other Mem11 bers of Congress information obtained under

12 this paragraph except upon a finding under

13 subparagraph (B) that such information may be

14 disclosed.

15 ‘‘(B) PROHIBITION ON FURTHER DISCLO16 SURE.—No committee or subcommittee de17 scribed in subparagraph (A), or member there18 of, and no other committee, subcommittee, or

19 Member of Congress shall disclose any informa20 tion obtained under this Act or previous Acts

21 regarding the control of exports that is submit22 ted pursuant to this subsection unless one of

23 the full committees listed in subparagraph (A)

24 determines that the withholding of that infor25 mation is contrary to the national interest.
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1 ‘‘(3) AVAILABILITY TO THE GAO.—

2 ‘‘(A) IN GENERAL.—Notwithstanding para3 graph (1), information referred to in subpara4 graph (B) shall, consistent with the protection

5 of intelligence, counterintelligence, and law en6 forcement sources, methods, and activities, as

7 determined by the agency that originally ob8 tained the information, and consistent with the

9 provisions of section 716 of title 31, United

10 States Code, be made available only by the

11 agency that originally obtained the information,

12 upon request, to the Comptroller General of the

13 United States or to any officer or employee of

14 the General Accounting Office authorized by

15 the Comptroller General of the United States to

16 have access to such information.

17 ‘‘(B) PROHIBITION ON FURTHER DISCLO18 SURES.—No officer or employee of the General

19 Accounting Office shall disclose, except to the

20 Congress in accordance with this subsection,

21 any information that is submitted on a con22 fidential basis and from which any individual

23 can be identified.

24 ‘‘(c) PENALTIES FOR DISCLOSURE OF CONFIDEN25 TIAL INFORMATION.—Any officer or employee of the
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1 United States, or any department or agency thereof, who

2 publishes, divulges, discloses, or makes known in any man3 ner, or to any extent not authorized by law, any informa4 tion coming to such officer, employee, department, or

5 agency, in the course of employment or official duties, or

6 by reason of any examination, investigation, report,

7 record, or file of such officer, employee, department, or

8 agency, which is exempt from disclosure under this sub9 section, shall—

10 ‘‘(1) be fined not more than $10,000, or impris11 oned not more than one year, or both;

12 ‘‘(2) may be removed from office or employment

13 (in the case of an officer or employee); and

14 ‘‘(3) shall be subject to a civil penalty of not

15 more than $10,000.’’.

16 (3) ADDITIONAL AMENDMENTS.—Section 206

17 of the International Emergency Economic Powers

18 Act (50 U.S.C. 1705) is amended—

19 (A) in subsection (a), by inserting ‘‘, or at20 tempts to violate,’’ after ‘‘violates’’; and

21 (B) in subsection (b), by inserting ‘‘, or

22 willfully attempts to violate,’’ after ‘‘violates’’.

23 (d) CIVIL AIRCRAFT EQUIPMENT.—Except as nec24 essary to comply with international obligations under the

25 International Emergency Economic Powers Act or the
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1 United Nations Participation Act of 1945, and notwith2 standing any other provision of law, a product shall be

3 subject to export controls exclusively under this title if it

4 is a product that—

5 (1) is certified by the Federal Aviation Admin6 istration, to be standard equipment in civil aircraft

7 and is an integral part of such aircraft; and

8 (2) is to be exported to a country, other than

9 a target country.

10 (e) EFFECT ON SECTION 38(e) OF THE ARMS EX11 PORT CONTROL ACT.—This title modifies provisions of the

12 Export Administration Act of 1979, which are incor13 porated by reference in section 38(e) of the Arms Export

14 Control Act (22 U.S.C. 2778(e)). The amendments made

15 to such provisions shall have no effect on the administra16 tion and enforcement of section 38(e) of the Arms Export

17 Control Act. The relevant provisions of the Export Admin18 istration Act of 1979, shall continue to have the same

19 force and effect as they had on the day before the expira20 tion of the Export Administration Act of 1979 for pur21 poses of the Arms Export Control Act.

22 SEC. 116. AUTHORIZATION OF APPROPRIATIONS.

23 (a) IN GENERAL.—There are authorized to be appro24 priated to the Department to carry out this title—

25 (1) $43,372,000 for fiscal year 1995;
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1 (2) such amounts as may be necessary for fiscal

2 year 1996; and

3 (3) such additional amounts for each of fiscal

4 years 1995 and 1996 as may be necessary for in5 creases in salary, pay, retirement, other employee

6 benefits authorized by law, and other non-discre7 tionary costs.

8 (b) FUNDING FOR ELECTRONIC INFORMATION SYS9 TEM.—There are authorized to be appropriated to the De10 partment to carry out subsection (m) of section 108—

11 (1) $2,000,000 for fiscal year 1995; and

12 (2) such sums as may be necessary for each of

13 fiscal years 1996 and 1997.

14 SEC. 117. EFFECTIVE DATE.

15 (a) IN GENERAL.—This title shall become effective

16 upon the expiration of the Export Administration Act of

17 1979, and shall remain in effect until January 1, 1999.

18 (b) REPEAL OF 1979 ACT.—Upon the effective date

19 of this title, the Export Administration Act of 1979 is re20 pealed.

21 SEC. 118. SAVINGS PROVISIONS.

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

23 orders, determinations, licenses, sanctions, or other forms

24 of administrative action that have been made, issued, con25 ducted, or allowed to become effective under the Export
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1 Control Act of 1949, the Export Administration Act of

2 1969, the Export Administration Act of 1979, or the Arms

3 Export Control Act, and which are in effect on the date

4 on which this title becomes effective, shall continue in ef5 fect according to their terms until modified, superseded,

6 set aside, or revoked under this title or the Arms Export

7 Control Act.

8 (b) ADMINISTRATIVE PROCEEDINGS.—This title shall

9 not apply to any administrative proceedings commenced

10 or any application for a license made, under the Export

11 Administration Act of 1979, which is pending on the effec12 tive date of this title.

13 SEC. 119. CONFORMING AMENDMENTS.

14 (a) AGRICULTURAL REFERENCES.—

15 (1) AGRICULTURAL COMMODITIES.—Section

16 1133(a)(3) of the Food Security Act of 1985 (7

17 U.S.C. 1736y(3)) is amended by inserting ‘‘of 1994’’

18 after ‘‘Export Administration Act’’.

19 (2) TRADE SUSPENSION RESERVES.—Section

20 208(a) of the Agricultural Act of 1980 (7 U.S.C.

21 4001(a)) is amended by striking ‘‘Export Adminis22 tration Act of 1979’’ and inserting ‘‘Export Admin23 istration Act of 1994’’.

24 (3) AGRICULTURAL EMBARGO PROTECTION.—

25 Section 411(a)(1) of the Agricultural Trade Act of
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1 1978 (7 U.S.C. 5671(a)(1)) is amended by striking

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

3 App. 2401 et seq.)’’ and inserting ‘‘Export Adminis4 tration Act of 1994’’.

5 (b) DEFENSE REFERENCES.—

6 (1) PUBLIC DISCLOSURE OF CERTAIN TECH7 NICAL DATA.—Section 130(a) of title 10, United

8 States Code, is amended by striking ‘‘Export Admin9 istration Act of 1979 (50 U.S.C. App. 2401–2420)’’

10 and inserting ‘‘Export Administration Act of 1994’’.

11 (2) DEFENSE CONTRACTS.—

12 (A) CONSIDERATION OF NATIONAL SECU13 RITY OBJECTIVES.—Section 2327 of title 10,

14 United States Code, is amended—

15 (i) in subsection (a), by striking ‘‘sec16 tion 6(j)(1)(A) of the Export Administra17 tion Act of 1979 (50 U.S.C. App.

18 2405(j)(1)(A))’’ and inserting ‘‘section

19 105(d)(3)(A) of the Export Administration

20 Act of 1994’’; and

21 (ii) in subsection (b)(2), by striking

22 ‘‘section 6(j)(1)(A) of the Export Adminis23 tration Act of 1979 (50 U.S.C. App.

24 2405(j)(1)(A))’’ and inserting ‘‘section
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1 105(d)(3)(A) of the Export Administration

2 Act of 1994’’.

3 (B) PROHIBITION ON CERTAIN CON4 TRACTS.—Section 2410i(a) of title 10, United

5 States Code, is amended by striking ‘‘section

6 3(5)(A) of the Export Administration Act of

7 1979 (50 U.S.C. App. 2402(5)(A))’’ and insert8 ing ‘‘section 102(b)(9) of the Export Adminis9 tration Act of 1994’’.

10 (C) DISPOSITION OF PRODUCTS.—Section

11 7430(e) of title 10, United States Code, is

12 amended—

13 (i) by striking ‘‘Export Administration

14 Act of 1979 (50 U.S.C. App. 2401 et

15 seq.)’’ and inserting ‘‘Export Administra16 tion Act of 1994’’; and

17 (ii) by striking ‘‘Export Administra18 tion Act of 1979’’ each place it appears

19 and inserting ‘‘Export Administration Act

20 of 1994’’.

21 (c) EXPORT OF SEMICONDUCTOR MANUFACTUR22 ING.—Section 275 of the National Defense Authorization

23 Act for Fiscal Years 1988 and 1989 (15 U.S.C. 4605)

24 is amended by striking ‘‘Export Administration Act of
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1 1979 (50 U.S.C. App. 2401 et seq.)’’ and inserting ‘‘Ex2 port Administration Act of 1994’’.

3 (d) EXPORT OF UNPROCESSED TIMBER.—Section

4 499 of the Forest Resources Conservation and Shortage

5 Relief Act of 1990 (16 U.S.C. 620j) is amended—

6 (1) in the section heading, by striking ‘‘OF

7 1979’’ and inserting ‘‘OF 1994’’; and

8 (2) by striking ‘‘section 7 of the Export Admin9 istration Act of 1979’’ and inserting ‘‘section 106 of

10 the Export Administration Act of 1994’’.

11 (e) CRIMINAL VIOLATIONS.—

12 (1) AGENTS OF FOREIGN GOVERNMENTS.—Sec13 tion 951(e)(2)(B) of title 18, United States Code, is

14 amended by striking ‘‘section 11 of the Export Ad15 ministration Act of 1979’’ and inserting ‘‘section

16 109 of the Export Administration Act of 1994’’.

17 (2) LAUNDERING OF MONETARY INSTRU18 MENTS.—Section 1956(c)(7)(D) of title 18, United

19 States Code, is amended by striking ‘‘section 11 (re20 lating to violations) of the Export Administration

21 Act of 1979’’ and inserting ‘‘section 109 (relating to

22 violations) of the Export Administration Act of

23 1994’’.

24 (f) FOREIGN RELATIONS.—
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1 (1) RELATIONS WITH THE PEOPLE’S REPUBLIC

2 OF CHINA.—Section 902(a) of the Foreign Relations

3 Authorization Act, Fiscal Years 1990 and 1991 (22

4 U.S.C. 2151 note) is amended—

5 (A) in paragraph (4), by striking ‘‘section

6 6(k) of the Export Administration Act of 1979’’

7 and inserting ‘‘section 105(d) of the Export Ad8 ministration Act of 1994’’;

9 (B) in paragraph (6)(A)(i), by striking

10 ‘‘Export Administration Act of 1979’’ and in11 serting ‘‘Export Administration Act of 1994’’;

12 and

13 (C) in paragraph (7)(A), by striking ‘‘Ex14 port Administration Act of 1979’’ and inserting

15 ‘‘Export Administration Act of 1994’’.

16 (2) HUMAN RIGHTS AND SECURITY ASSIST17 ANCE.—Section 502B(a)(2) of the Foreign Assist18 ance Act of 1961 (22 U.S.C. 2304(a)(2)) is amend19 ed—

20 (A) by striking ‘‘Export Administration

21 Act of 1979 for’’ and inserting ‘‘Export Admin22 istration Act of 1994 for’’; and

23 (B) by striking ‘‘Export Administration

24 Act of 1979).’’ and inserting ‘‘Export Adminis25 tration Act of 1994)’’.
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1 (3) TORTURE BY FOREIGN GOVERNMENTS.—

2 Section 2(c) of the Joint Resolution entitled ‘‘Joint

3 Resolution regarding the implementation of the pol4 icy of the United States Government in opposition to

5 the practice of torture by any foreign government’’,

6 approved October 4, 1984 (22 U.S.C. 2656 note) is

7 amended by striking ‘‘Export Administration Act of

8 1979’’ and inserting ‘‘Export Administration Act of

9 1994’’.

10 (4) ANNUAL REPORT ON THE PROLIFERATION

11 OF MISSILES AND ESSENTIAL COMPONENTS OF NU12 CLEAR, BIOLOGICAL, AND CHEMICAL WEAPONS.—

13 Section 1097(c)(7) of the National Defense Author14 ization Act for Fiscal Years 1992 and 1993 (22

15 U.S.C. 2751 note) is amended by striking ‘‘section

16 11B(b)(4) of the Export Administration Act of 1979

17 (50 U.S.C. App. 2401b(b)(4))’’ and inserting ‘‘sec18 tion 112(b)(4) of the Export Administration Act of

19 1994’’.

20 (5) CONTROL OF ARMS EXPORTS AND IM21 PORTS.—Section 38 of chapter 3 of the Foreign

22 Military Sales Act (22 U.S.C. 2778) is amended—

23 (A) in subsection (e)—

24 (i) in the first sentence, by striking

25 ‘‘subsections (c), (d), (e), and (g) of sec-
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1 tion 11’’ and all that follows through ‘‘of

2 such Act,’’ and inserting the following:

3 ‘‘subsections (b), (c), (e), and (f) of section

4 109 of the Export Administration Act of

5 1994, and by sections 110(a) and 111(d)

6 of that Act,’’; and

7 (ii) in the third sentence, by striking

8 ‘‘section 11(c) of the Export Administra9 tion Act of 1979’’ and inserting ‘‘section

10 109(c) of the Export Administration Act of

11 1994’’;

12 (B) in subsection (f), by striking ‘‘Export

13 Administration Act of 1979’’ and inserting

14 ‘‘Export Administration Act of 1994’’; and

15 (C) by striking subsection (g)(1)(A)(ii) and

16 inserting the following:

17 ‘‘(ii) section 109 of the Export Ad18 ministration Act of 1994,’’.

19 (6) EXPORTATION OF URANIUM DEPLETED IN

20 THE ISOTOPE 235.—Section 110 of the International

21 Security and Development Cooperation Act of 1980

22 (22 U.S.C. 2778a) is amended by striking ‘‘Export

23 Administration Act of 1979’’ and inserting ‘‘Export

24 Administration Act of 1994’’.

25 (7) ARMS EXPORT CONTROL ACT.—
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1 (A) TRANSACTIONS WITH COUNTRIES SUP2 PORTING ACTS OF INTERNATIONAL TERROR3 ISM.—Section 40(k) of chapter 3 of the Arms

4 Export Control Act (22 U.S.C. 2780(k)) is

5 amended—

6 (i) by striking ‘‘sections 11(c), 11(e),

7 11(g), and 12(a) of the Export Adminis8 tration Act of 1979’’ and inserting ‘‘sec9 tions 109(b), 109(c), 109(f), and 110(a) of

10 the Export Administration Act of 1994’’;

11 and

12 (ii) by striking ‘‘notwithstanding sec13 tion 11(c)’’ and inserting ‘‘notwithstanding

14 section 109(c)’’.

15 (B) CONTROL OF MISSILES AND MISSILE

16 EQUIPMENT OR TECHNOLOGY.—Chapter 7 of

17 the Arms Export Control Act (22 U.S.C. 2797

18 et seq.) is amended—

19 (i) in section 72(a)(1)(A), by striking

20 ‘‘section 5 or 6 of the Export Administra21 tion Act of 1979 (50 U.S.C. App. 2404,

22 2405)’’ and inserting ‘‘section 105 of the

23 Export Administration Act of 1994’’; and

24 (ii) in section 74(6), by striking ‘‘sec25 tion 16(2) of the Export Administration
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1 Act of 1979 (50 U.S.C. App. 2415(2))’’

2 and inserting ‘‘section 103 of the Export

3 Administration Act of 1994’’.

4 (C) CHEMICAL OR BIOLOGICAL WEAPONS

5 PROLIFERATION.—Section 81(a)(1)(C) of chap6 ter 8 of the Arms Export Control Act (22

7 U.S.C. 2798(a)(1)(C)) is amended by striking

8 ‘‘Export Administration Act of 1979’’ and in9 serting ‘‘Export Administration Act of 1994’’.

10 (8) REPORT ON CONFIDENCE BUILDING MEAS11 URES BY POLAND AND HUNGARY.—Section 702(2)

12 of the Support for East European Democracy

13 (SEED) Act of 1989 (22 U.S.C. 5472(2)) is amend14 ed by striking ‘‘Export Administration Act of 1979’’

15 and inserting ‘‘Export Administration Act of 1994’’.

16 (9) UNITED STATES EXPORT CONTROLS.—Sec17 tion 304(a)(2) of the Chemical and Biological Weap18 ons Control and Warfare Elimination Act of 1991

19 (22 U.S.C. 5603(2)) is amended by striking ‘‘Export

20 Administration Act of 1979’’ and inserting ‘‘Export

21 Administration Act of 1994’’.

22 (10) SUPPORT FOR THE CUBAN PEOPLE.—Sec23 tion 1705(a) of the Cuban Democracy Act of 1992

24 (22 U.S.C. 6004(a)) is amended by striking ‘‘Export
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1 Administration Act of 1979’’ and inserting ‘‘Export

2 Administration Act of 1994’’.

3 (g) INTERNAL REVENUE CODE OF REFERENCES.—

4 (1) SECTION 901.—Section 901(j)(2)(A)(iv) of

5 the Internal Revenue Code of 1986 is amended by

6 striking ‘‘section 6(j) of the Export Administration

7 Act of 1979’’ and inserting ‘‘section 105(d)(3) of the

8 Export Administration Act of 1994’’.

9 (2) SECTION 927.—Section 927(a)(2)(D) of the

10 Internal Revenue Code of 1986 is amended by strik11 ing ‘‘paragraph (2)(C) of section 3 of the Export

12 Administration Act of 1979’’ and inserting ‘‘section

13 102(b)(1)(E) of the Export Administration Act of

14 1994’’.

15 (3) SECTION 993.—Section 993(c)(2)(D) of the

16 Internal Revenue Code of 1986 is amended by strik17 ing ‘‘section 7(a) of the Export Administration Act

18 of 1979 to effectuate the policy set forth in para19 graph (2)(C) of section 3 of such Act’’ and inserting

20 ‘‘section 106(a) of the Export Administration Act of

21 1994 to effectuate the policy set forth in section

22 102(b)(1)(E) of that Act’’.

23 (h) RIGHTS-OF-WAY FOR PIPELINES THROUGH

24 FEDERAL LANDS.—Section 28(u) of the Mineral Leasing

25 Act (30 U.S.C. 185(u)) is amended—
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1 (1) by striking ‘‘Export Administration Act of

2 1979 (50 U.S.C. App. 2401 and following)’’ and in3 serting ‘‘Export Administration Act of 1994’’; and

4 (2) by striking ‘‘Export Administration Act of

5 1979’’ each place it appears and inserting ‘‘Export

6 Administration Act of 1994’’.

7 (i) ENERGY CONSERVATION.—

8 (1) DOMESTIC USE OF ENERGY SUPPLIES AND

9 RELATED MATERIALS AND EQUIPMENT.—Section

10 103 of the Energy Policy and Conservation Act (42

11 U.S.C. 6212) is amended—

12 (A) in subsection (c)—

13 (i) by striking ‘‘Export Administration

14 Act of 1979’’ and inserting ‘‘Export Ad15 ministration Act of 1994’’; and

16 (ii) by striking ‘‘section 3(2)(C)’’ and

17 inserting ‘‘section 102(b)(1)(E)’’; and

18 (B) in subsection (e)(3), by striking ‘‘Ex19 port Administration Act of 1969’’ and inserting

20 ‘‘Export Administration Act of 1994’’.

21 (2) EXCHANGE OF INFORMATION.—Section

22 254(e) of the Energy Policy and Conservation Act

23 (42 U.S.C. 6274(e)) is amended by striking para24 graph (3) and inserting the following:
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1 ‘‘(3) section 110 of the Export Administration

2 Act of 1994;’’.

3 (j) IRAQ SANCTIONS.—Section 586G of the Iraq

4 Sanctions Act of 1990 (50 U.S.C. 1701 note) is amend5 ed—

6 (1) by striking subsection (a)(3) and inserting

7 the following:

8 ‘‘(3) EXPORTS OF CERTAIN GOODS AND TECH9 NOLOGY.—The authorities of section 105 of the Ex10 port Administration Act of 1994 shall be used to

11 prohibit the export to Iraq of any goods or tech12 nology listed pursuant to that section on the control

13 lists established under subsections (f) and (i) of sec14 tion 104 of that Act.’’; and

15 (2) in subsection (b), by striking ‘‘subsection

16 (m)(1) of section 6 of the Export Administration Act

17 of 1979’’ and inserting ‘‘section 111(h)(1) of the

18 Export Administration Act of 1994’’.

19 TITLE II—ENVIRONMENTAL EX20 PORT PROMOTION ACT OF

21 1994

22 SEC. 201. SHORT TITLE.

23 This title may be cited as the ‘‘Environmental Export

24 Promotion Act of 1994’’.
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1 SEC. 202. PROMOTION OF UNITED STATES ENVIRON2 MENTAL EXPORTS.

3 (a) ENVIRONMENTAL TECHNOLOGIES TRADE ADVI4 SORY COMMITTEE.—Section 2313 of the Export Enhance5 ment Act of 1988 (15 U.S.C. 4728) is amended—

6 (1) by striking subsection (d);

7 (2) by redesignating subsection (c) as sub8 section (e); and

9 (3) by inserting after subsection (b) the follow10 ing:

11 ‘‘(c) ENVIRONMENTAL TECHNOLOGIES TRADE ADVI12 SORY COMMITTEE.—

13 ‘‘(1) ESTABLISHMENT AND PURPOSE.—The

14 Secretary, in carrying out the duties of the chair15 person of the TPCC, shall establish the Environ16 mental Technologies Trade Advisory Committee

17 (hereafter in this section referred to as the ‘Commit18 tee’). The purpose of the Committee shall be to pro19 vide advice and guidance to the Working Group in

20 the development and administration of programs to

21 expand United States exports of environmental tech22 nologies, goods, and services.

23 ‘‘(2) MEMBERSHIP.—The members of the Com24 mittee shall be drawn from representatives of—

25 ‘‘(A) environmental businesses, including

26 small businesses;
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1 ‘‘(B) trade associations in the environ2 mental sector;

3 ‘‘(C) private sector organizations involved

4 in the promotion of environmental exports;

5 ‘‘(D) States (as defined in section

6 2301(i)(5)) and associations representing the

7 States; and

8 ‘‘(E) other appropriate interested members

9 of the public.

10 The Secretary shall appoint as members of the Committee

11 at least 1 individual under each of subparagraphs (A)

12 through (E).

13 ‘‘(d) EXPORT PLANS FOR PRIORITY COUNTRIES.—

14 ‘‘(1) PRIORITY COUNTRY IDENTIFICATION.—

15 The Working Group, in consultation with the Com16 mittee, shall annually assess which foreign countries

17 have markets with the greatest potential for the ex18 port of United States environmental technologies,

19 goods, and services. Of these countries the Working

20 Group shall select as priority countries 5 with the

21 greatest potential for the application of United

22 States Government export promotion resources relat23 ed to environmental exports.

24 ‘‘(2) EXPORT PLANS.—The Working Group, in

25 consultation with the Committee, shall annually cre-
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1 ate a plan for each priority country selected under

2 paragraph (1), setting forth in detail ways to in3 crease United States environmental exports to such

4 country. Each such plan shall—

5 ‘‘(A) identify the primary public and pri6 vate sector opportunities for United States ex7 porters of environmental technologies, goods,

8 and services in the priority country;

9 ‘‘(B) analyze the financing and other re10 quirements for major projects in the priority

11 country which will use environmental tech12 nologies, goods, and services, and analyze

13 whether such projects are dependent upon fi14 nancial assistance from foreign countries or

15 multilateral institutions; and

16 ‘‘(C) list specific actions to be taken by the

17 member agencies of the Working Group to in18 crease United States exports to the priority

19 country.’’.

20 (b) ADDITIONAL MECHANISMS TO PROMOTE ENVI21 RONMENTAL EXPORTS.—Section 2313 of the Export En22 hancement Act of 1988 (15 U.S.C. 4728) is amended by

23 adding at the end the following new subsection:
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1 ‘‘(f) ENVIRONMENTAL TECHNOLOGIES SPECIALISTS

2 IN THE UNITED STATES AND FOREIGN COMMERCIAL

3 SERVICE.—

4 ‘‘(1) ASSIGNMENT OF ENVIRONMENTAL TECH5 NOLOGIES SPECIALISTS.—The Secretary shall assign

6 a specialist in environmental technologies to the of7 fice of the United States and Foreign Commercial

8 Service in each of the 5 priority countries selected

9 under subsection (d)(1), and the Secretary is author10 ized to assign such a specialist to the office of the

11 United States and Foreign Commercial Service in

12 any country that is a promising market for United

13 States exports of environmental technologies, goods,

14 and services. Such specialist may be an employee of

15 the Department, an employee of any relevant United

16 States Government department or agency assigned

17 on a temporary or limited term basis to the Com18 merce Department, or a representative of the private

19 sector assigned to the Department of Commerce.

20 ‘‘(2) DUTIES OF ENVIRONMENTAL TECH21 NOLOGIES SPECIALISTS.—Each specialist assigned

22 under paragraph (1) shall provide export promotion

23 assistance to United States environmental busi24 nesses, including, but not limited to—
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1 ‘‘(A) identifying factors in the country to

2 which the specialist is assigned that affect the

3 United States share of the domestic market for

4 environmental technologies, goods, and services,

5 including market barriers, standards-setting ac6 tivities, and financing issues;

7 ‘‘(B) providing assessments of assistance

8 by foreign governments that is provided to pro9 ducers of environmental technologies, goods,

10 and services in such countries in order to en11 hance exports to the country to which the spe12 cialist is assigned, the effectiveness of such as13 sistance on the competitiveness of United

14 States products, and whether comparable Unit15 ed States assistance exists;

16 ‘‘(C) training Foreign Commercial Service

17 Officers in the country to which the specialist

18 is assigned, other countries in the region, and

19 United States and Foreign Commercial Service

20 offices in the United States, in environmental

21 technologies and the international environ22 mental market;

23 ‘‘(D) providing assistance in identifying

24 potential customers and market opportunities in

25 the country to which the specialist is assigned;
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1 ‘‘(E) providing assistance in obtaining nec2 essary business services in the country to which

3 the specialist is assigned;

4 ‘‘(F) providing information on environ5 mental standards and regulations in the coun6 try to which the specialist is assigned; and

7 ‘‘(G) providing information on all United

8 States Government programs that could assist

9 the promotion, financing, and sale of United

10 States environmental technologies, goods, and

11 services in the country to which the specialist is

12 assigned.

13 ‘‘(g) ENVIRONMENTAL TRAINING IN ONE-STOP

14 SHOPS.—In addition to the training provided under sub15 section (f)(2)(C), the Secretary shall establish a mecha16 nism to train—

17 ‘‘(1) Commercial Service Officers assigned to

18 the one-stop shops provided for in section

19 2301(b)(8), and

20 ‘‘(2) Commercial Service Officers assigned to

21 district offices in districts having large numbers of

22 environmental businesses,

23 in environmental technologies and in the international en24 vironmental marketplace, and ensure that such officers re25 ceive appropriate training under such mechanism. Such
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1 training may be provided by officers or employees of the

2 Department of Commerce, and other United States Gov3 ernment departments and agencies, with appropriate ex4 pertise in environmental technologies and the international

5 environmental workplace, and by appropriate representa6 tives of the private sector.

7 ‘‘(h) ENVIRONMENTAL TECHNOLOGIES PROJECT AD8 VOCACY CALENDAR AND INFORMATION DISSEMINATION

9 PROGRAM.—The Working Group shall—

10 ‘‘(1) maintain a calendar, updated at the end of

11 each calendar quarter, of significant opportunities

12 for United States environmental businesses in for13 eign markets and trade promotion events, which

14 shall—

15 ‘‘(A) be made available to the public;

16 ‘‘(B) identify the 50 to 100 environmental

17 infrastructure and procurement projects in for18 eign markets that have the greatest potential in

19 the calendar quarter for United States exports

20 of environmental technologies, goods, and serv21 ices; and

22 ‘‘(C) include trade promotion events, such

23 as trade missions and trade fairs, in the envi24 ronmental sector; and
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1 ‘‘(2) provide, through the National Trade Data

2 Bank and other information dissemination channels,

3 information on opportunities for environmental busi4 nesses in foreign markets and information on Fed5 eral export promotion programs.

6 ‘‘(i) ENVIRONMENTAL TECHNOLOGY EXPORT ALLI7 ANCES.—Subject to the availability of appropriations for

8 such purpose, the Secretary shall explore the use of the

9 Market Development Cooperator Program to support the

10 creation of private sector, nonprofit organizations, and

11 university alliances that support the export of environ12 mental technologies.

13 ‘‘(j) DEFINITION.—For purposes of this section, the

14 term ‘environmental business’ means a business that pro15 duces environmental technologies, goods, or services.’’.

S 2203 PCS——2

S 2203 PCS——3

S 2203 PCS——4

S 2203 PCS——5

S 2203 PCS——6

S 2203 PCS——7

S 2203 PCS——8

S 2203 PCS——9

S 2203 PCS——10

S 2203 PCS——11
220

•S 2203 PCS

S 2203 PCS——12

S 2203 PCS——13

S 2203 PCS——14

S 2203 PCS——15
Calendar No. 474

103D CONGRESS

2D SESSION S. 2203

[Report No. 103–288]

A BILL

To improve the administration of export controls,

and for other purposes.

JUNE 16 (legislative day, JUNE 7), 1994

Placed on the calendar