I 

115TH CONGRESS 

2D SESSION H. R. 5841 

To modernize and strengthen the Committee on Foreign Investment in the 

United States to more effectively guard against the risk to the national 

security of the United States posed by certain types of foreign investment, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 16, 2018 

Mr. PITTENGER introduced the following bill; which was referred to the Committee on Foreign Affairs, and in addition to the Committees on Financial Services, Energy and Commerce, Intelligence (Permanent Select), 

and Oversight and Government Reform, for a period to be subsequently 

determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To modernize and strengthen the Committee on Foreign 

Investment in the United States to more effectively 

guard against the risk to the national security of the 

United States posed by certain types of foreign investment, 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, 


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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

3 ‘‘Foreign Investment Risk Review Modernization Act of 

4 2018’’. 

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

6 this Act is as follows: 

Sec. 1. Short title; table of contents. 

TITLE I—FINDINGS AND SENSE OF CONGRESS 

Sec. 101. Findings and sense of Congress. 

TITLE II—DEFINITIONS 

Sec. 201. Definitions. 

TITLE III—IMPROVEMENTS TO THE OPERATIONS OF THE 

COMMITTEE ON FOREIGN INVESTMENT IN THE UNITED STATES 

Sec. 301. Inclusion of partnership and side agreements in notice. 

Sec. 302. Declarations relating to certain covered transactions. 

Sec. 303. Timing for reviews and investigations. 

Sec. 304. Submission of certifications to Congress. 

Sec. 305. Analysis by Director of National Intelligence. 

Sec. 306. Information sharing. 

Sec. 307. Action by the President. 

Sec. 308. Factors to be considered. 

Sec. 309. Mitigation and other actions by the Committee to address national 

security risks. 

Sec. 310. Certification of notices and information. 

TITLE IV—MODIFICATION OF ANNUAL REPORT 

Sec. 401. Modification of annual report. 

TITLE V—RESOURCES, SPECIAL HIRING AUTHORITY, AND 

OUTREACH 

Sec. 501. Centralization of certain Committee functions. 

Sec. 502. CFIUS resource needs. 

Sec. 503. CFIUS outreach. 

TITLE VI—MISCELLANEOUS FIRRMA PROVISIONS 

Sec. 601. Conforming amendment. 

Sec. 602. Regulatory certainty for United States businesses. 

TITLE VII—COMMON SENSE CREDIT UNION CAPITAL RELIEF 

Sec. 701. Delay in effective date. 

TITLE VIII—EXPORT CONTROL REFORM 


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Sec. 801. Short title. 

Sec. 802. Definitions. 

Subtitle A—Authority and Administration of Controls 

Sec. 811. Short title. 

Sec. 812. Statement of policy. 

Sec. 813. Authority of the President. 

Sec. 814. Additional authorities. 

Sec. 815. Administration of export controls. 

Sec. 816. Control lists. 

Sec. 817. Licensing. 

Sec. 818. Compliance assistance. 

Sec. 819. Requirements to identify and control emerging, foundational, and 

other critical technologies in export control regulations. 

Sec. 820. Review relating to countries subject to comprehensive United States 

arms embargo. 

Sec. 821. Penalties. 

Sec. 822. Enforcement. 

Sec. 823. Administrative procedure. 

Sec. 824. Annual report to Congress. 

Sec. 825. Repeal. 

Sec. 826. Effect on other Acts. 

Sec. 827. Transition provisions. 

Subtitle B—Anti-Boycott Act of 2018 

Sec. 831. Short title. 

Sec. 832. Statement of policy. 

Sec. 833. Foreign boycotts. 

Sec. 834. Enforcement. 

Subtitle C—Sanctions Regarding Missile Proliferation and Chemical and 

Biological Weapons Proliferation 

Sec. 841. Missile proliferation control violations. 

Sec. 842. Chemical and biological weapons proliferation sanctions. 

Subtitle D—Administrative Authorities 

Sec. 851. Under Secretary of Commerce for Industry and Security. 

1 TITLE I—FINDINGS AND SENSE 

2 OF CONGRESS 

3 SEC. 101. FINDINGS AND SENSE OF CONGRESS. 

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

5 (1) According to a February 2016 report by the 

6 Department of Commerce’s International Trade Ad7 ministration, 12 million United States workers, 


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1 equivalent to 8.5 percent of the labor force, have 

2 jobs resulting from foreign investment, including 3.5 

3 million jobs in the manufacturing sector alone. 

4 (2) In 2016, new foreign direct investment in 

5 U.S. manufacturing totaled $129.4 billion. 

6 (3) The Department of Commerce’s Bureau of 

7 Economic Analysis concluded that in 2015, foreign8 owned affiliates in the United States— 

9 (A) Contributed $894.5 billion in value 

10 added to the U.S. economy; 

11 (B) exported goods valued at $352.8 bil12 lion, accounting for nearly a quarter of total 

13 U.S. goods exports; 

14 (C) undertook $56.7 billion in research 

15 and development; and 

16 (D) the seven largest investing countries, 

17 all of which are United States allies—the 

18 United Kingdom, Japan, Germany, France, 

19 Canada, Switzerland, and the Netherlands—ac20 counted for 72.1 percent of U.S. affiliate value 

21 added and over 80 percent of affiliates’ R&D 

22 expenditures. 

23 (4) According to the Government Accountability 

24 Office (GAO), from 2011 to 2016, the number of 

25 transactions reviewed by the Committee on Foreign 


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1 Investment in the United States (CFIUS) grew by 

2 55 percent, while agency staff assigned to the re3 views increased by 11 percent. 

4 (5) In light of staffing constraints at CFIUS, 

5 GAO has cautioned against expanding CFIUS’s au6 thorities precipitously. According to a February 

7 2018 report (GAO–18–249), GAO noted: ‘‘Officials 

8 from Treasury and other member agencies are aware 

9 of pressures on their CFIUS staff given the current 

10 workload and have expressed concerns about possible 

11 workload increases.’’. GAO concluded: ‘‘Without at12 taining an understanding of the staffing levels need13 ed to address the current and future CFIUS work14 load, particularly if legislative changes to CFIUS’s 

15 authorities further expand its workload, CFIUS may 

16 be limited in its ability to fulfill its objectives and 

17 address threats to the national security of the 

18 United States.’’. 

19 (6) On March 30, 1954, Dwight David Eisen20 hower—five-star general, Supreme Allied Com21 mander, and 34th President of the United States— 

22 in his ‘‘Special Message to the Congress on Foreign 

23 Economic Policy’’, counseled: ‘‘Great mutual advan24 tages to buyer and seller, to producer and consumer, 

25 to investor and to the community where investment 


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1 is made, accrue from high levels of trade and invest2 ment.’’. He continued: ‘‘The internal strength of the 

3 American economy has evolved from such a system 

4 of mutual advantage. In the press of other problems 

5 and in the haste to meet emergencies, this nation— 

6 and many other nations of the free world—have all 

7 too often lost sight of this central fact.’’. President 

8 Eisenhower concluded: ‘‘If we fail in our trade pol9 icy, we may fail in all. Our domestic employment, 

10 our standard of living, our security, and the soli11 darity of the free world—all are involved.’’. 

12 (b) SENSE OF CONGRESS.—It is the sense of Con13 gress that— 

14 (1) foreign investment provides substantial ben15 efits to the United States, including the promotion 

16 of economic growth, productivity, innovation, com17 petitiveness, and job creation, thereby enhancing 

18 U.S. national security; 

19 (2) maintaining the commitment of the United 

20 States to an open investment policy encourages 

21 other countries to act similarly and helps expand 

22 foreign markets for U.S. businesses; 

23 (3) the Committee on Foreign Investment in 

24 the United States, as a complement to domestic and 

25 multilateral export control regimes, plays a critical 


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1 role in protecting the national security of the United 

2 States; 

3 (4) in order to maintain the Committee’s effec4 tiveness and guard against mission creep, CFIUS 

5 should remain narrowly focused on confronting risks 

6 related to national security; 

7 (5) it is essential that the member agencies of 

8 the Committee are adequately resourced and able to 

9 hire appropriately qualified individuals in a timely 

10 manner so that CFIUS may promptly complete 

11 transaction reviews, identify and respond to evolving 

12 national security risks, and enforce mitigation agree13 ments effectively; 

14 (6) the President should carry out international 

15 outreach to promote the benefits of foreign invest16 ment for global economic growth, while also assisting 

17 United States partners to address national security 

18 risks; and 

19 (7) it is the policy of the United States to en20 thusiastically welcome and support foreign invest21 ment, consistent with national security consider22 ations. 


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1 TITLE II—DEFINITIONS 

2 SEC. 201. DEFINITIONS. 

3 Section 721(a) of the Defense Production Act of 

4 1950 (50 U.S.C. 4565(a)) is amended— 

5 (1) by striking paragraphs (2), (3), and (4) and 

6 inserting the following: 

7 ‘‘(2) CONTROL.—The term ‘control’ means the 

8 power, direct or indirect, whether or not exercised, 

9 to determine, direct, or decide important matters af10 fecting an entity, subject to regulations prescribed 

11 by the Committee. 

12 ‘‘(3) COVERED TRANSACTION.— 

13 ‘‘(A) IN GENERAL.—The term ‘covered 

14 transaction’ means any transaction described in 

15 subparagraph (B) or (C) that is proposed, 

16 pending, or completed on or after the date of 

17 the enactment of the Foreign Investment Risk 

18 Review Modernization Act of 2018. 

19 ‘‘(B) TRANSACTIONS DESCRIBED.—A 

20 transaction described in this subparagraph is 

21 any of the following: 

22 ‘‘(i) Any merger, acquisition, takeover, 

23 or joint venture that is proposed or pend24 ing after August 23, 1988, by or with any 


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1 foreign person that could result in foreign 

2 control of any United States business. 

3 ‘‘(ii) The purchase or lease by, or con4 cession to, a foreign person of private or 

5 public real estate that— 

6 ‘‘(I) is— 

7 ‘‘(aa) located in the United 

8 States and is, or is in close prox9 imity to, a United States military 

10 installation; or 

11 ‘‘(bb) itself, or is located at 

12 and will function as part of, an 

13 air or sea port; 

14 ‘‘(II) is not a single housing unit, 

15 as defined by the Bureau of the Cen16 sus; 

17 ‘‘(III) is not in an urbanized 

18 area, as set forth by the Bureau of 

19 the Census in its most recent census, 

20 except as otherwise prescribed by the 

21 Committee in regulations in consulta22 tion with the Secretary of Defense; 

23 and 


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1 ‘‘(IV) meets such other criteria 

2 as the Committee prescribes by regu3 lation. 

4 ‘‘(iii) Any change in the rights that a 

5 foreign person has with respect to a United 

6 States business in which the foreign person 

7 has an investment, if that change is likely 

8 to result in foreign control of the United 

9 States business. 

10 ‘‘(iv) Any transaction or other device 

11 entered into or employed for the purpose of 

12 evading this section, subject to regulations 

13 prescribed by the Committee. 

14 ‘‘(C) SENSITIVE TRANSACTIONS INVOLVING

15 COUNTRIES OF SPECIAL CONCERN.— 

16 ‘‘(i) IN GENERAL.—A transaction de17 scribed in this subparagraph is any invest18 ment in an unaffiliated United States busi19 ness by a foreign person that— 

20 ‘‘(I) is— 

21 ‘‘(aa) a national or a govern22 ment of, or a foreign entity orga23 nized under the laws of, a coun24 try of special concern; or 

25 ‘‘(bb) a foreign entity— 


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1 ‘‘(AA) over which con2 trol is exercised or exer3 cisable by a national or a 

4 government of, or by a for5 eign entity organized under 

6 the laws of, a country of 

7 special concern; or 

8 ‘‘(BB) in which the 

9 government of a country of 

10 special concern has a sub11 stantial interest; and 

12 ‘‘(II) as a result of the trans13 action, could obtain–— 

14 ‘‘(aa) sensitive personal 

15 data, as defined by regulations 

16 prescribed by the Committee, of 

17 United States citizens, if such 

18 data may be exploited in a man19 ner that threatens national secu20 rity; or 

21 ‘‘(bb) influence over sub22 stantive decisionmaking of the 

23 United States business regarding 

24 the use, development, acquisition, 

25 or release of— 


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1 ‘‘(AA) sensitive per2 sonal data of United States 

3 citizens, as described in item 

4 (aa); or 

5 ‘‘(BB) critical tech6 nologies. 

7 ‘‘(III) COUNTRIES OF SPECIAL

8 CONCERN.—For the purposes of this 

9 subparagraph, the term ‘countries of 

10 special concern’ means— 

11 ‘‘(aa) any foreign country 

12 that is subject to export restric13 tions pursuant to section 744.21 

14 of title 15, Code of Federal Reg15 ulations; 

16 ‘‘(bb) any country deter17 mined by the Secretary of State 

18 to be a state sponsor of ter19 rorism; and 

20 ‘‘(cc) any country that— 

21 ‘‘(AA) is subject to a 

22 United States arms embar23 go, as specified in list D:5 of 

24 Country Group D in Supple25 ment No. 1 to part 740 of 


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1 title 15, Code of Federal 

2 Regulations; and 

3 ‘‘(BB) is identified as a 

4 country of special concern in 

5 regulations prescribed by the 

6 Committee. 

7 ‘‘(ii) INVESTMENT DEFINED.—For the 

8 purposes of this subparagraph, the term 

9 ‘investment’ means the acquisition of an 

10 equity interest, including contingent equity 

11 interest, as further defined in regulations 

12 prescribed by the Committee. 

13 ‘‘(iii) UNAFFILIATED UNITED STATES

14 BUSINESS DEFINED.—For the purposes of 

15 this subparagraph, with respect to an in16 vestment described under clause (i), and as 

17 further defined in regulations prescribed by 

18 the Committee, the term ‘unaffiliated 

19 United States business’ means a United 

20 States business that is not subject to the 

21 same ultimate ownership of the foreign 

22 person undertaking the investment. 

23 ‘‘(iv) WAIVER.—The President may 

24 waive any requirement of this subpara25 graph upon reporting to the Committees 


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1 on Financial Services and Foreign Affairs 

2 of the House and the Committees on 

3 Banking, Housing, and Urban Affairs and 

4 Foreign Relations of the Senate that the 

5 waiver is important to the national interest 

6 of the United States, with a detailed expla7 nation of the reasons therefor. 

8 ‘‘(D) TRANSFERS OF CERTAIN ASSETS

9 PURSUANT TO BANKRUPTCY PROCEEDINGS OR

10 OTHER DEFAULTS.—The Committee shall pre11 scribe regulations to clarify that the term ‘cov12 ered transaction’ includes any transaction de13 scribed in subparagraphs (B) or (C) that arises 

14 pursuant to a bankruptcy proceeding or other 

15 form of default on debt. 

16 ‘‘(4) FOREIGN GOVERNMENT-CONTROLLED

17 TRANSACTION.—The term ‘foreign government-con18 trolled transaction’ means any covered transaction 

19 that could result in control of a United States busi20 ness by a foreign government or a person controlled 

21 by or acting on behalf of a foreign government.’’; 

22 (2) by amending paragraph (7) to read as fol23 lows: 

24 ‘‘(7) CRITICAL TECHNOLOGIES.—The term 

25 ‘critical technologies’ means— 


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1 ‘‘(A) defense articles or defense services 

2 covered by the United States Munitions List 

3 (USML), which is set forth in the International 

4 Traffic in Arms Regulations (ITAR) (22 C.F.R. 

5 parts 120–130); 

6 ‘‘(B) those items specified on the Com7 merce Control List (CCL) set forth in Supple8 ment No. 1 to part 774 of the Export Adminis9 tration Regulations (EAR) (15 C.F.R. parts 

10 730–774) that are controlled pursuant to multi11 lateral regimes (i.e. for reasons of national se12 curity, chemical and biological weapons pro13 liferation, nuclear nonproliferation, or missile 

14 technology), as well as those that are controlled 

15 for reasons of regional stability or surreptitious 

16 listening; 

17 ‘‘(C) specially designed and prepared nu18 clear equipment, parts and components, mate19 rials, software, and technology specified in the 

20 Assistance to Foreign Atomic Energy Activities 

21 regulations (10 C.F.R. part 810), and nuclear 

22 facilities, equipment, and material specified in 

23 the Export and Import of Nuclear Equipment 

24 and Material regulations (10 C.F.R. part 110); 


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1 ‘‘(D) select agents and toxins specified in 

2 the Select Agents and Toxins regulations (7 

3 C.F.R. part 331, 9 C.F.R. part 121, and 42 

4 C.F.R. part 73); and 

5 ‘‘(E) emerging, foundational, or other crit6 ical technologies that are controlled pursuant to 

7 section 819 of the Foreign Investment Risk Re8 view Modernization Act of 2018.’’; and 

9 (3) by adding at the end the following: 

10 ‘‘(9) FOREIGN PERSON.—The term ‘foreign per11 son’ means— 

12 ‘‘(A) any foreign national, foreign govern13 ment, or foreign entity; or 

14 ‘‘(B) any entity over which control is exer15 cised or exercisable by a foreign national, for16 eign government, or foreign entity. 

17 ‘‘(10) SUBSTANTIAL INTEREST.—The term 

18 ‘substantial interest’ has the meaning given to such 

19 term in regulations prescribed by the Committee, 

20 but does not include a voting interest of less than 

21 ten percent or ownership interests held or acquired 

22 solely for the purpose of passive investment. 

23 ‘‘(11) UNITED STATES BUSINESS.—The term 

24 ‘United States business’ means any entity, irrespec25 tive of the nationality of the persons that control it, 


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1 engaged in interstate commerce in the United 

2 States, but only to the extent of its activities in 

3 interstate commerce.’’. 

4 TITLE III—IMPROVEMENTS TO 

5 THE OPERATIONS OF THE 

6 COMMITTEE ON FOREIGN IN7 VESTMENT IN THE UNITED 

8 STATES 

9 SEC. 301. INCLUSION OF PARTNERSHIP AND SIDE AGREE10 MENTS IN NOTICE. 

11 Section 721(b)(1)(C) of the Defense Production Act 

12 of 1950 (50 U.S.C. 4565(b)(1)(C)) is amended by adding 

13 at the end the following: 

14 ‘‘(iv) INCLUSION OF PARTNERSHIP

15 AND SIDE AGREEMENTS.—Subject to regu16 lations prescribed by the Committee, the 

17 Committee may require a written notice 

18 submitted under clause (i) by a party to a 

19 covered transaction to include a copy of 

20 any partnership agreements, integration 

21 agreements, or other side agreements relat22 ing to the transaction, as specified in regu23 lations prescribed by the Committee.’’. 


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1 SEC. 302. DECLARATIONS RELATING TO CERTAIN COVERED 

2 TRANSACTIONS. 

3 (a) IN GENERAL.—Section 721(b)(1)(C) of the De4 fense Production Act of 1950 (50 U.S.C. 4565(b)(1)(C)), 

5 as amended by section 301, is further amended by adding 

6 at the end the following: 

7 ‘‘(v) DECLARATIONS WITH RESPECT

8 TO CERTAIN COVERED TRANSACTIONS.— 

9 ‘‘(I) VOLUNTARY DECLARA10 TIONS.—For the purpose of expe11 diting the review of certain covered 

12 transactions that the Committee de13 termines are likely to pose limited 

14 risk, the Committee may prescribe 

15 regulations to permit parties to the 

16 transaction to submit a declaration 

17 with basic information regarding the 

18 transaction, unless the parties submit 

19 a written notice under clause (i). 

20 ‘‘(II) MANDATORY DECLARA21 TIONS.— 

22 ‘‘(aa) IN GENERAL.—The 

23 Committee may prescribe regula24 tions to require the parties to a 

25 covered transaction to submit a 

26 declaration described in subVerDate Sep 11 2014 22:24 May 18, 2018 Jkt 079200 PO 00000 Frm 00018 Fmt 6652 Sfmt 6201 E:\BILLS\H5841.IH H5841

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1 clause (I) with respect to the 

2 transaction if the transaction in3 volves an investment that results 

4 in the acquisition, directly or in5 directly, of a substantial interest 

6 in a United States business by a 

7 foreign person in which a foreign 

8 government has, directly or indi9 rectly, a substantial interest. 

10 ‘‘(bb) SUBMISSION OF WRIT11 TEN NOTICE AS AN ALTER12 NATIVE.—Parties to a covered 

13 transaction for which a declara14 tion is required under this clause 

15 may instead elect to submit a 

16 written notice under clause (i). 

17 ‘‘(cc) TIMING OF SUBMIS18 SION.—With respect to the regu19 lations described under subclause 

20 (I), the Committee may not re21 quire a declaration to be sub22 mitted more than 30 days in ad23 vance of the completion of the 

24 transaction. 


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1 ‘‘(III) PENALTIES.—The Com2 mittee may impose a penalty pursuant 

3 to subsection (h)(3)(A) with respect to 

4 a party that fails to comply with this 

5 clause. 

6 ‘‘(IV) COMMITTEE RESPONSE TO

7 DECLARATION.— 

8 ‘‘(aa) IN GENERAL.—Upon 

9 receiving a declaration under this 

10 clause with respect to a trans11 action, the Committee may, at its 

12 discretion— 

13 ‘‘(AA) request that the 

14 parties to the transaction 

15 file a written notice under 

16 clause (i), provided that the 

17 Committee includes an ex18 planation of the reasons for 

19 the request; 

20 ‘‘(BB) inform the par21 ties to the transaction that 

22 the Committee is not able to 

23 complete action under this 

24 section with respect to the 

25 transaction on the basis of 


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1 the declaration and that the 

2 parties may file a written 

3 notice under clause (i) to 

4 seek written notification 

5 from the Committee that the 

6 Committee has completed all 

7 action under this section 

8 with respect to the trans9 action; 

10 ‘‘(CC) initiate a unilat11 eral review of the trans12 action under subparagraph 

13 (D); or 

14 ‘‘(DD) notify the par15 ties in writing that the Com16 mittee has completed all ac17 tion under this section with 

18 respect to the transaction. 

19 ‘‘(bb) TIMING.—The Com20 mittee shall take action under 

21 item (aa) within 15 days of re22 ceiving a declaration under this 

23 clause. 

24 ‘‘(cc) REFILING OF DEC25 LARATION.—The Committee may 


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1 not request or recommend that a 

2 declaration be withdrawn and 

3 refiled, except to permit parties 

4 to a transaction to correct mate5 rial errors or omissions. 

6 ‘‘(V) REGULATIONS.—In pre7 scribing regulations establishing re8 quirements for declarations submitted 

9 under this clause, the Committee shall 

10 ensure that such declarations are sub11 mitted as abbreviated notifications 

12 that do not generally exceed 5 pages 

13 in length. 

14 ‘‘(VI) INVESTMENT DEFINED.— 

15 For the purposes of this clause, the 

16 term ‘investment’ means the acquisi17 tion of an equity interest, including 

18 contingent equity interest, as further 

19 defined in regulations prescribed by 

20 the Committee.’’. 

21 (b) STIPULATIONS REGARDING TRANSACTIONS.— 

22 Section 721(b)(1)(C) of the Defense Production Act of 

23 1950 (50 U.S.C. 4565(b)(1)(C)), as amended by this sec24 tion, is further amended by adding at the end the fol25 lowing: 


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1 ‘‘(viii) STIPULATIONS REGARDING

2 TRANSACTIONS.— 

3 ‘‘(I) IN GENERAL.—In a written 

4 notice submitted under clause (i) or a 

5 declaration submitted under clause (v) 

6 with respect to a transaction, a party 

7 to the transaction may— 

8 ‘‘(aa) stipulate that the 

9 transaction is a covered trans10 action; and 

11 ‘‘(bb) if the party stipulates 

12 that the transaction is a covered 

13 transaction under item (aa), stip14 ulate that the transaction is a 

15 foreign government-controlled 

16 transaction. 

17 ‘‘(II) BASIS FOR STIPULATION.— 

18 A written notice submitted under 

19 clause (i) or a declaration submitted 

20 under clause (v) that includes a stipu21 lation under subclause (I) shall in22 clude a description of the basis for the 

23 stipulation.’’. 


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1 SEC. 303. TIMING FOR REVIEWS AND INVESTIGATIONS. 

2 Section 721(b) of the Defense Production Act of 

3 1950 (50 U.S.C. 4565(b)) is amended— 

4 (1) in paragraph (2), by striking subparagraph 

5 (C) and inserting the following: 

6 ‘‘(C) TIMING.— 

7 ‘‘(i) IN GENERAL.—Except as pro8 vided in clause (ii), any investigation under 

9 subparagraph (A) shall be completed be10 fore the end of the 45-day period begin11 ning on the date on which the investigation 

12 commenced. 

13 ‘‘(ii) EXTENSION FOR EXTRAOR14 DINARY CIRCUMSTANCES.— 

15 ‘‘(I) IN GENERAL.—In extraor16 dinary circumstances (as defined by 

17 the Committee in regulations), the 

18 chairperson may, at the request of the 

19 head of the lead agency, extend an in20 vestigation under subparagraph (A) 

21 for not more than one 15-day period. 

22 ‘‘(II) NONDELEGATION.—The 

23 authority of the chairperson and the 

24 head of the lead agency referred to in 

25 subclause (I) may not be delegated to 

26 any person other than the Deputy 


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1 Secretary of the Treasury or the dep2 uty head (or equivalent thereof) of the 

3 lead agency, as the case may be. 

4 ‘‘(III) NOTIFICATION TO PAR5 TIES.—If the Committee extends the 

6 deadline under subclause (I) with re7 spect to a covered transaction, the 

8 Committee shall notify the parties to 

9 the transaction of the extension.’’; and 

10 (2) by adding at the end the following: 

11 ‘‘(8) TOLLING OF DEADLINES DURING LAPSE IN

12 APPROPRIATIONS.—Any deadline or time limitation 

13 under this subsection shall be tolled during a lapse 

14 in appropriations.’’. 

15 SEC. 304. SUBMISSION OF CERTIFICATIONS TO CONGRESS. 

16 Section 721(b)(3)(C) of the Defense Production Act 

17 of 1950 (50 U.S.C. 4565(b)(3)(C)) is amended— 

18 (1) in clause (i), by amending subclause (II) to 

19 read as follows: 

20 ‘‘(II) a certification that all rel21 evant national security factors, includ22 ing factors enumerated in subsection 

23 (f), have received full consideration.’’; 

24 and 

25 (2) by adding at the end the following: 


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1 ‘‘(v) AUTHORITY TO CONSOLIDATE

2 DOCUMENTS.—Instead of transmitting a 

3 separate certified notice or certified report 

4 under subparagraph (A) or (B) with re5 spect to each covered transaction, the 

6 Committee may, on a monthly basis, trans7 mit such notices and reports in a consoli8 dated document to the Members of Con9 gress specified in clause (iii).’’. 

10 SEC. 305. ANALYSIS BY DIRECTOR OF NATIONAL INTEL11 LIGENCE. 

12 Section 721(b)(4) of the Defense Production Act of 

13 1950 (50 U.S.C. 4565(b)(4)) is amended— 

14 (1) by striking subparagraph (A) and inserting 

15 the following: 

16 ‘‘(A) ANALYSIS REQUIRED.— 

17 ‘‘(i) IN GENERAL.—The Director of 

18 National Intelligence shall expeditiously 

19 carry out a thorough analysis of any threat 

20 to the national security of the United 

21 States posed by any covered transaction, 

22 which shall include the identification of 

23 any recognized gaps in the collection of in24 telligence relevant to the analysis. 


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1 ‘‘(ii) VIEWS OF INTELLIGENCE AGEN2 CIES.—The Director shall seek and incor3 porate into the analysis required by clause 

4 (i) the views of all affected or appropriate 

5 intelligence agencies with respect to the 

6 transaction. 

7 ‘‘(iii) UPDATES.—At the request of 

8 the lead agency, the Director shall update 

9 the analysis conducted under clause (i) 

10 with respect to a covered transaction with 

11 respect to which an agreement was entered 

12 into under subsection (l)(3)(A). 

13 ‘‘(iv) INDEPENDENCE AND OBJEC14 TIVITY.—The Committee shall ensure that 

15 its processes under this section preserve 

16 the ability of the Director to conduct an 

17 analysis under clause (i) that is inde18 pendent, objective, and consistent with all 

19 applicable directives, policies, and analytic 

20 tradecraft standards of the intelligence 

21 community.’’; 

22 (2) by redesignating subparagraphs (B), (C), 

23 and (D) as subparagraphs (C), (D), and (E), respec24 tively; 


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1 (3) by inserting after subparagraph (A) the fol2 lowing: 

3 ‘‘(B) BASIC THREAT INFORMATION.— 

4 ‘‘(i) IN GENERAL.—The Director of 

5 National Intelligence may provide the 

6 Committee with basic information regard7 ing any threat to the national security of 

8 the United States posed by a covered 

9 transaction described in clause (ii) instead 

10 of conducting the analysis required by sub11 paragraph (A). 

12 ‘‘(ii) COVERED TRANSACTION DE13 SCRIBED.—A covered transaction is de14 scribed in this clause if— 

15 ‘‘(I) the transaction is described 

16 in subsection (a)(3)(B)(ii); 

17 ‘‘(II) the Director of National In18 telligence has completed an analysis 

19 pursuant to subparagraph (A) involv20 ing each foreign person that is a party 

21 to the transaction during the 12 

22 months preceding the review or inves23 tigation of the transaction under this 

24 section; or 


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1 ‘‘(III) the transaction otherwise 

2 meets criteria agreed upon by the 

3 Committee and the Director of Na4 tional Intelligence for purposes of this 

5 subparagraph.’’; and 

6 (4) by adding at the end the following: 

7 ‘‘(F) ASSESSMENT OF OPERATIONAL IM8 PACT.—The Director may provide to the Com9 mittee an assessment, separate from the anal10 yses under subparagraphs (A) and (B), of any 

11 operational impact of a covered transaction on 

12 the intelligence community and a description of 

13 any actions that have been or will be taken to 

14 mitigate any such impact. 

15 ‘‘(G) SUBMISSION TO CONGRESS.—The 

16 Committee shall include the analysis required 

17 by subparagraph (A) with respect to a covered 

18 transaction in the report required under sub19 section (m)(1), subject to the requirements of 

20 subsection (m)(5).’’. 

21 SEC. 306. INFORMATION SHARING. 

22 Section 721(c) of the Defense Production Act of 1950 

23 (50 U.S.C. 4565(c)) is amended— 

24 (1) by striking ‘‘Any information’’ and inserting 

25 the following: 


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1 ‘‘(1) IN GENERAL.—Any information’’; and 

2 (2) by adding at the end the following: 

3 ‘‘(2) EXCEPTION.—Paragraph (1) shall not pro4 hibit the disclosure of information or documentary 

5 material that the party filing such information or 

6 material consented to be disclosed to third parties.’’. 

7 SEC. 307. ACTION BY THE PRESIDENT. 

8 (a) IN GENERAL.—Section 721(d)(2) of the Defense 

9 Production Act of 1950 (50 U.S.C. 4565(d)(2)) is amend10 ed by striking ‘‘not later than 15 days’’ and all that fol11 lows and inserting the following: ‘‘with respect to a cov12 ered transaction not later than 15 days after the earlier 

13 of— 

14 ‘‘(A) the date on which the investigation of 

15 the transaction under subsection (b) is com16 pleted; or 

17 ‘‘(B) the date on which the Committee oth18 erwise refers the transaction to the President 

19 under subsection (l)(4).’’. 

20 (b) CIVIL PENALTIES.—Section 721(h)(3)(A) of the 

21 Defense Production Act of 1950 (50 U.S.C. 

22 4565(h)(3)(A)) is amended by striking ‘‘including any 

23 mitigation’’ and all that follows through ‘‘subsection (l)’’ 

24 and inserting ‘‘including any mitigation agreement entered 


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1 into, conditions imposed, or order issued pursuant to this 

2 section’’. 

3 SEC. 308. FACTORS TO BE CONSIDERED. 

4 Section 721(f) of the Defense Production Act of 1950 

5 (50 U.S.C. 4565(f)) is amended— 

6 (1) in paragraph (4), by striking ‘‘proposed or 

7 pending’’; 

8 (2) by striking paragraph (5); 

9 (3) by redesignating paragraphs (6), (7), (8), 

10 (9), (10), and (11) as paragraphs (5), (6), (7), (8), 

11 (9), and (16), respectively; 

12 (4) in paragraph (9), as so redesignated, by 

13 striking ‘‘and’’ at the end; and 

14 (5) by inserting after paragraph (9), as so re15 designated, the following: 

16 ‘‘(10) the degree to which the covered trans17 action is likely to threaten the ability of the United 

18 States Government to acquire or maintain the equip19 ment and systems that are necessary for defense, in20 telligence, or other national security functions; 

21 ‘‘(11) the potential national security-related ef22 fects of the cumulative control of any one type of 

23 critical infrastructure, energy asset, material, or 

24 critical technology by a foreign person; 


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1 ‘‘(12) whether any foreign person that would 

2 acquire control of a United States business as a re3 sult of the covered transaction has a history of— 

4 ‘‘(A) complying with United States laws 

5 and regulations and prior adherence, if applica6 ble, to any agreement or condition, as described 

7 under (l)(1)(A); and 

8 ‘‘(B) adhering to contracts or other agree9 ments with entities of the United States Gov10 ernment; 

11 ‘‘(13) the extent to which the covered trans12 action is likely to release, either directly or indi13 rectly, sensitive personal data of United States citi14 zens to a foreign person that may exploit that infor15 mation in a manner that threatens national security; 

16 ‘‘(14) whether the covered transaction is likely 

17 to exacerbate cybersecurity vulnerabilities or is likely 

18 to result in a foreign government gaining a signifi19 cant new capability to engage in malicious cyber-en20 abled activities against the United States, including 

21 such activities designed to affect the outcome of any 

22 election for Federal office; 

23 ‘‘(15) whether the covered transaction is likely 

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1 erations of a Federal law enforcement agency with 

2 national security responsibilities to a foreign person 

3 not authorized to receive that information; and’’. 

4 SEC. 309. MITIGATION AND OTHER ACTIONS BY THE COM5 MITTEE TO ADDRESS NATIONAL SECURITY 

6 RISKS. 

7 Section 721(l) of the Defense Production Act of 1950 

8 (50 U.S.C. 4565(l)) is amended— 

9 (1) in paragraph (1)— 

10 (A) in subparagraph (A)— 

11 (i) in the heading, by striking ‘‘IN

12 GENERAL’’ and inserting ‘‘AGREEMENTS

13 AND CONDITIONS’’; 

14 (ii) by striking ‘‘The Committee’’ and 

15 inserting the following: 

16 ‘‘(i) IN GENERAL.—The Committee’’; 

17 and 

18 (iii) by adding at the end the fol19 lowing: 

20 ‘‘(ii) ABANDONMENT OF TRANS21 ACTIONS.—If a party to a covered trans22 action has voluntarily chosen to abandon 

23 the transaction, the Committee or lead 

24 agency, as the case may be, may negotiate, 

25 enter into or impose, and enforce any 


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1 agreement or condition with any party to 

2 the covered transaction for purposes of ef3 fectuating such abandonment and miti4 gating any threat to the national security 

5 of the United States that arises as a result 

6 of the covered transaction. 

7 ‘‘(iii) AGREEMENTS AND CONDITIONS

8 RELATING TO COMPLETED TRANS9 ACTIONS.—The Committee or lead agency, 

10 as the case may be, may negotiate, enter 

11 into or impose, and enforce any agreement 

12 or condition with any party to a completed 

13 covered transaction in order to mitigate 

14 any interim threat to the national security 

15 of the United States that may arise as a 

16 result of the covered transaction until such 

17 time that the Committee has completed ac18 tion pursuant to subsection (b) or the 

19 President has taken action pursuant to 

20 subsection (d) with respect to the trans21 action.’’; 

22 (B) by amending subparagraph (B) to read 

23 as follows: 

24 ‘‘(B) TREATMENT OF OUTDATED AGREE25 MENTS OR CONDITIONS.—The chairperson and 


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1 the head of any applicable lead agency shall pe2 riodically review the appropriateness of an 

3 agreement or condition described under sub4 paragraph (A) and terminate, phase out, or 

5 otherwise amend any agreement or condition if 

6 a threat no longer requires mitigation through 

7 the agreement or condition.’’; and 

8 (C) by adding at the end the following: 

9 ‘‘(C) LIMITATIONS.—An agreement may 

10 not be entered into or condition imposed under 

11 subparagraph (A) with respect to a covered 

12 transaction unless the Committee determines 

13 that the agreement or condition resolves the na14 tional security concerns posed by the trans15 action, taking into consideration whether the 

16 agreement or condition is reasonably calculated 

17 to— 

18 ‘‘(i) be effective; 

19 ‘‘(ii) allow for compliance with the 

20 terms of the agreement or condition in an 

21 appropriately verifiable way; and 

22 ‘‘(iii) enable effective monitoring of 

23 compliance with and enforcement of the 

24 terms of the agreement or condition. 


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1 ‘‘(D) JURISDICTION.—The provisions of 

2 section 706(b) shall apply to any mitigation 

3 agreement entered into or condition imposed 

4 under subparagraph (A).’’; and 

5 (2) by adding at the end the following: 

6 ‘‘(4) REFERRAL TO PRESIDENT.—The Com7 mittee may, at any time during the review or inves8 tigation of a covered transaction under subsection 

9 (b), complete the action of the Committee with re10 spect to the transaction and refer the transaction to 

11 the President for action pursuant to subsection (d). 

12 ‘‘(5) RISK-BASED ANALYSIS REQUIRED.— 

13 ‘‘(A) IN GENERAL.—Any determination of 

14 the Committee to refer a covered transaction to 

15 the President under paragraph (4), or to nego16 tiate, enter into, impose, or enforce any agree17 ment or condition under paragraph (1)(A) with 

18 respect to a covered transaction, shall be based 

19 on a risk-based analysis, conducted by the Com20 mittee, of the effects on the national security of 

21 the United States of the covered transaction, 

22 which shall include— 

23 ‘‘(i) an assessment of the threat, 

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1 action, as these terms are defined or clari2 fied in guidance and regulations issued by 

3 the Committee; and 

4 ‘‘(ii) an identification of each relevant 

5 factor described in subsection (f) that the 

6 transaction may substantially implicate. 

7 ‘‘(B) COMPLIANCE PLANS.— 

8 ‘‘(i) IN GENERAL.—In the case of a 

9 covered transaction with respect to which 

10 an agreement or condition is entered into 

11 under paragraph (1)(A), the Committee or 

12 lead agency, as the case may be, shall for13 mulate, adhere to, and keep updated a 

14 plan for monitoring compliance with the 

15 agreement or condition. 

16 ‘‘(ii) ELEMENTS.—Each plan required 

17 by clause (i) with respect to an agreement 

18 or condition entered into under paragraph 

19 (1)(A) shall include an explanation of— 

20 ‘‘(I) which member of the Com21 mittee will have primary responsibility 

22 for monitoring compliance with the 

23 agreement or condition; 


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1 ‘‘(II) how compliance with the 

2 agreement or condition will be mon3 itored; 

4 ‘‘(III) how frequently compliance 

5 reviews will be conducted; 

6 ‘‘(IV) whether an independent 

7 entity will be utilized under subpara8 graph (D) to conduct compliance re9 views; and 

10 ‘‘(V) what actions will be taken if 

11 the parties fail to cooperate regarding 

12 monitoring compliance with the agree13 ment or condition. 

14 ‘‘(C) EFFECT OF LACK OF COMPLIANCE.— 

15 If, at any time after a mitigation agreement or 

16 condition is entered into or imposed under 

17 paragraph (1)(A), the Committee or lead agen18 cy, as the case may be, determines that a party 

19 or parties to the agreement or condition are not 

20 in compliance with the terms of the agreement 

21 or condition, the Committee or lead agency 

22 may, in addition to the authority of the Com23 mittee to impose penalties pursuant to sub24 section (h)(3)(A) and to unilaterally initiate a 


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1 review of any covered transaction under sub2 section (b)(1)(D)(iii)(I)— 

3 ‘‘(i) negotiate a plan of action for the 

4 party or parties to remediate the lack of 

5 compliance, with failure to abide by the 

6 plan or otherwise remediate the lack of 

7 compliance serving as the basis for the 

8 Committee to find a material breach of the 

9 agreement or condition; 

10 ‘‘(ii) require that the party or parties 

11 submit any covered transaction initiated 

12 after the date of the determination of non13 compliance and before the date that is 5 

14 years after the date of the determination 

15 to the Committee for review under sub16 section (b); or 

17 ‘‘(iii) seek injunctive relief. 

18 ‘‘(D) USE OF INDEPENDENT ENTITIES TO

19 MONITOR COMPLIANCE.—If the parties to an 

20 agreement or condition entered into under para21 graph (1)(A) enter into a contract with an inde22 pendent entity from outside the United States 

23 Government for the purpose of monitoring com24 pliance with the agreement or condition, the 

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1 essary to prevent any significant conflict of in2 terest from arising with respect to the entity 

3 and the parties to the transaction. 

4 ‘‘(E) SUCCESSORS AND ASSIGNS.—Any 

5 agreement or condition entered or imposed 

6 under paragraph (1)(A) shall be considered 

7 binding on all successors and assigns, unless 

8 and until the agreement or condition terminates 

9 on its own terms or is otherwise terminated by 

10 the Committee in the Committee’s sole discre11 tion. 

12 ‘‘(F) ADDITIONAL COMPLIANCE MEAS13 URES.—Subject to subparagraphs (A) through 

14 (D), the Committee shall develop and agree 

15 upon methods for evaluating compliance with 

16 any agreement entered into or condition im17 posed with respect to a covered transaction that 

18 will allow the Committee to adequately ensure 

19 compliance without unnecessarily diverting 

20 Committee resources from assessing any new 

21 covered transaction for which a written notice 

22 under clause (i) of subsection (b)(1)(C) has 

23 been filed, and if necessary, reaching a mitiga24 tion agreement with or imposing a condition on 

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1 ered transaction for which a review has been re2 opened for any reason.’’. 

3 SEC. 310. CERTIFICATION OF NOTICES AND INFORMATION. 

4 Section 721(n) of the Defense Production Act of 

5 1950 (50 U.S.C. 4565(n)) is amended— 

6 (1) by redesignating paragraphs (1) and (2) as 

7 subparagraphs (A) and (B), respectively, and by 

8 moving such subparagraphs, as so redesignated, 2 

9 ems to the right; 

10 (2) by striking ‘‘Each notice’’ and inserting the 

11 following: 

12 ‘‘(1) IN GENERAL.—Each notice’’; and 

13 (3) by adding at the end the following: 

14 ‘‘(2) EFFECT OF FAILURE TO SUBMIT.—The 

15 Committee may not complete a review under this 

16 section of a covered transaction and may recommend 

17 to the President that the President suspend or pro18 hibit the transaction or require divestment under 

19 subsection (d) if the Committee determines that a 

20 party to the transaction has— 

21 ‘‘(A) failed to submit a statement required 

22 by paragraph (1); or 

23 ‘‘(B) included false or misleading informa24 tion in a notice or information described in 


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1 paragraph (1) or omitted material information 

2 from such notice or information. 

3 ‘‘(3) APPLICABILITY OF LAW ON FRAUD AND

4 FALSE STATEMENTS.—The Committee shall pre5 scribe regulations expressly providing for the appli6 cation of section 1001 of title 18, United States 

7 Code, to all information provided to the Committee 

8 under this section by any party to a covered trans9 action.’’. 

10 TITLE IV—MODIFICATION OF 

11 ANNUAL REPORT 

12 SEC. 401. MODIFICATION OF ANNUAL REPORT. 

13 Section 721(m) of the Defense Production Act of 

14 1950 (50 U.S.C. 4565(m)) is amended— 

15 (1) in paragraph (2), by amending subpara16 graph (A) to read as follows: 

17 ‘‘(A) A list of all notices filed and all re18 views or investigations of covered transactions 

19 completed during the period, with— 

20 ‘‘(i) a description of the outcome of 

21 each review or investigation, including 

22 whether an agreement was entered into or 

23 condition was imposed under subsection 

24 (l)(3)(A) with respect to the transaction 

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1 er the President took any action under this 

2 section with respect to that transaction; 

3 ‘‘(ii) the nature of the business activi4 ties or products of the United States busi5 ness with which the transaction was en6 tered into or intended to be entered into; 

7 and 

8 ‘‘(iii) information about any with9 drawal from the process.’’; 

10 (2) in paragraph (3)— 

11 (A) by striking ‘‘CRITICAL TECHNOLOGIES’’ 

12 and all that follows through ‘‘In order to as13 sist’’ and inserting ‘‘CRITICAL TECH14 NOLOGIES.—In order to assist’’; 

15 (B) by striking subparagraph (B); and 

16 (C) by redesignating clauses (i) and (ii) as 

17 subparagraphs (A) and (B), respectively, and 

18 by moving such subparagraphs, as so redesig19 nated, 2 ems to the left; and 

20 (3) by adding at the end the following: 

21 ‘‘(4) ADDITIONAL CONTENTS OF REPORT.— 

22 ‘‘(A) Statistics on compliance reviews con23 ducted and actions taken by the Committee 

24 under subsection (l)(6), including subparagraph 

25 (D) of that subsection (l)(6), during that period 


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1 and a description of any actions taken by the 

2 Committee to impose penalties or initiate a uni3 lateral review pursuant to subsection 

4 (b)(1)(D)(iii)(I). 

5 ‘‘(B) Cumulative and trend information on 

6 the number of declarations filed under sub7 section (b)(1)(C)(v), the actions taken by the 

8 Committee in response to declarations, the busi9 ness sectors involved in the declarations which 

10 have been made, and the countries involved in 

11 such declarations. 

12 ‘‘(C) The number of new hires made since 

13 the preceding report through the authorities de14 scribed under subsection (q), along with sum15 mary statistics, position titles, and associated 

16 pay grades for such hires and a summary of 

17 such hires’ responsibilities in administering this 

18 section. 

19 ‘‘(5) CLASSIFICATION; AVAILABILITY OF RE20 PORT.— 

21 ‘‘(A) CLASSIFICATION.—All appropriate 

22 portions of the annual report required by para23 graph (1) may be classified. 

24 ‘‘(B) PUBLIC AVAILABILITY OF UNCLASSI25 FIED VERSION.—An unclassified version of the 


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1 report required by paragraph (1), as appro2 priate and consistent with safeguarding na3 tional security and privacy, shall be made avail4 able to the public. Information regarding trade 

5 secrets or business confidential information may 

6 be included in the classified version and may 

7 not be made available to the public in the un8 classified version. 

9 ‘‘(C) EXCEPTIONS TO FREEDOM OF INFOR10 MATION ACT.—The exceptions to subsection (a) 

11 of section 552 of title 5, United States Code, 

12 provided for under subsection (b) of that sec13 tion shall apply with respect to the report re14 quired by paragraph (1).’’. 

15 TITLE V—RESOURCES, SPECIAL 

16 HIRING AUTHORITY, AND 

17 OUTREACH 

18 SEC. 501. CENTRALIZATION OF CERTAIN COMMITTEE 

19 FUNCTIONS. 

20 Section 721 of the Defense Production Act of 1950 

21 (50 U.S.C. 4565) is amended by adding at the end the 

22 following: 

23 ‘‘(o) CENTRALIZATION OF CERTAIN COMMITTEE

24 FUNCTIONS.— 


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1 ‘‘(1) IN GENERAL.—The chairperson, in con2 sultation with the Committee, may centralize certain 

3 functions of the Committee within the Department 

4 of the Treasury for the purpose of enhancing inter5 agency coordination and collaboration in carrying 

6 out the functions of the Committee under this sec7 tion. 

8 ‘‘(2) RULE OF CONSTRUCTION.—Nothing in 

9 this subsection shall be construed as limiting the au10 thority of any department or agency represented on 

11 the Committee to represent its own interests before 

12 the Committee.’’. 

13 SEC. 502. CFIUS RESOURCE NEEDS. 

14 (a) UNIFIED BUDGET REQUEST.—Section 721 of the 

15 Defense Production Act of 1950 (50 U.S.C. 4565), as 

16 amended by section 501, is further amended by adding 

17 at the end the following: 

18 ‘‘(p) UNIFIED BUDGET REQUEST.— 

19 ‘‘(1) IN GENERAL.—The President may include, 

20 in the budget of the Department of the Treasury for 

21 a fiscal year (as submitted to Congress with the 

22 budget of the President under section 1105(a) of 

23 title 31, United States Code), a unified request for 

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1 ducted by all of the departments and agencies rep2 resented on the Committee. 

3 ‘‘(2) FORM OF BUDGET REQUEST.—A unified 

4 request under paragraph (1) shall be detailed and 

5 include the amounts and staffing levels requested for 

6 each department or agency represented on the Com7 mittee to carry out the functions of that department 

8 or agency under this section.’’. 

9 (b) ANNUAL SPENDING PLAN.—Not later than 90 

10 days following the date of enactment of this Act, and an11 nually thereafter, the chairperson of the Committee on 

12 Foreign Investment in the United States shall transmit 

13 to the Committees on Appropriations and Financial Serv14 ices of the House of Representatives and the Committees 

15 on Appropriations and Banking, Housing, and Urban Af16 fairs of the Senate a detailed spending plan to expedi17 tiously meet the requirements of subsections (b), (l), and 

18 (m) of section 721 of the Defense Production Act of 1950, 

19 as amended by this Act, including estimated expenditures 

20 and staffing levels required by operations of the Com21 mittee for not less than the following fiscal year at each 

22 of the Committee’s member agencies. 

23 (c) WAIVER.—The chairperson may waive the report24 ing requirement under subsection (b) with respect to a fis25 cal year for which a unified budget request described 


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1 under section 721(p) of the Defense Production Act of 

2 1950 has been submitted. 

3 (d) SPECIAL HIRING AUTHORITY.—Section 721 of 

4 the Defense Production Act of 1950 (50 U.S.C. 4565), 

5 as amended by subsection (a), is further amended by add6 ing at the end the following: 

7 ‘‘(q) SPECIAL HIRING AUTHORITY.—The heads of 

8 the departments and agencies represented on the Com9 mittee may appoint, without regard to the provisions of 

10 sections 3309 through 3318 of title 5, United States Code, 

11 candidates directly to positions in the competitive service 

12 (as defined in section 2102 of that title) in their respective 

13 departments and agencies to administer this section.’’. 

14 (e) TESTIMONY REQUIRED.—Section 721 of the De15 fense Production Act of 1950 (50 U.S.C. 4565), as 

16 amended by subsection (d), is further amended by adding 

17 at the end the following: 

18 ‘‘(r) TESTIMONY.— 

19 ‘‘(1) IN GENERAL.—After submitting the uni20 fied budget request described under subsection (p), 

21 or the spending plan described under section 502 of 

22 the Foreign Investment Risk Review Modernization 

23 Act of 2018, as the case may be, but not later than 

24 March 31 of each year, the chairperson, or the 

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1 mittee on Financial Services of the House of Rep2 resentatives and present testimony on— 

3 ‘‘(A) anticipated resources necessary for 

4 operations of the Committee in the following 

5 fiscal year at each of the Committee’s member 

6 agencies; 

7 ‘‘(B) the adequacy of appropriations for 

8 the Committee in the current and the previous 

9 fiscal year to— 

10 ‘‘(i) ensure that thorough reviews and 

11 investigations are completed as expedi12 tiously as possible; 

13 ‘‘(ii) monitor and enforce mitigation 

14 agreements; and 

15 ‘‘(iii) identify covered transactions for 

16 which a notice under clause (i) of sub17 section (b)(1)(C) or a declaration under 

18 clause (v) of subsection (b)(1)(C) was not 

19 submitted to the Committee; and 

20 ‘‘(C) management efforts to strengthen the 

21 ability of the Committee to meet the require22 ments of this section. 

23 ‘‘(2) SUNSET.—This subsection shall have no 

24 force or effect on the date that is five years following 


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1 the date of enactment of the Foreign Investment 

2 Risk Review Modernization Act of 2018.’’. 

3 SEC. 503. CFIUS OUTREACH. 

4 Not later than 180 days after the date of enactment 

5 of this Act, and every year thereafter for five years, the 

6 chairperson of the Committee on Foreign Investment in 

7 the United States (‘‘CFIUS’’), or the chairperson’s des8 ignee, shall brief the Committee on Financial Services of 

9 the House of Representatives and the Committee on 

10 Banking, Housing, and Urban Affairs of the Senate on 

11 activities of CFIUS undertaken in order to— 

12 (1) educate the business community, with a 

13 particular focus on the technology sector and other 

14 sectors of importance to national security, on the 

15 goals and operations of CFIUS; and 

16 (2) disseminate to the governments of United 

17 States allies best practices of CFIUS that— 

18 (A) strengthen national security reviews of 

19 relevant investment transactions; 

20 (B) expedite such reviews when appro21 priate; and 

22 (C) promote openness to foreign invest23 ment, consistent with national security consid24 erations. 


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1 TITLE VI—MISCELLANEOUS 

2 FIRRMA PROVISIONS 

3 SEC. 601. CONFORMING AMENDMENT. 

4 Section 721(d)(4)(A) of the Defense Production Act 

5 of 1950 (50 U.S.C. 4565(d)(4)(A)) is amended by striking 

6 ‘‘the foreign interest exercising control’’ and inserting ‘‘a 

7 foreign person that would acquire an interest in a United 

8 States business or its assets as a result of the covered 

9 transaction’’. 

10 SEC. 602. REGULATORY CERTAINTY FOR UNITED STATES 

11 BUSINESSES. 

12 Section 721 of the Defense Production Act of 1950 

13 (50 U.S.C. 4565), as amended by section 502, is further 

14 amended by adding at the end the following: 

15 ‘‘(s) REGULATORY CERTAINTY FOR UNITED STATES

16 BUSINESSES.—With respect to mitigating a national secu17 rity risk that results from a foreign person’s investment 

18 in, or joint venture with, a United States business, a mem19 ber agency of the Committee may not prescribe or imple20 ment regulations to require divestment by, or of, the 

21 United States business, unless— 

22 ‘‘(1) the regulations are prescribed under this 

23 section or pursuant to authorities of the President 

24 under the International Emergency Economic Pow25 ers Act; or 


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1 ‘‘(2) the President reports to Congress in writ2 ing that the regulations— 

3 ‘‘(A) are, wherever applicable, consistent 

4 with regulations prescribed under this section, 

5 including any such regulations pertaining to— 

6 ‘‘(i) foreign control or influence over a 

7 United States business; 

8 ‘‘(ii) the identification of emerging, 

9 foundational, or other critical technologies; 

10 and 

11 ‘‘(iii) confidentiality requirements with 

12 respect to information and documentary 

13 material regarding United States busi14 nesses; and 

15 ‘‘(B) in the case of regulations prescribed 

16 or finalized following the effective date of this 

17 subsection, were prescribed in consultation with 

18 the chairperson of the Committee and with the 

19 head of any member agency determined by the 

20 President to be affected by the regulations.’’. 

21 TITLE VII—COMMON SENSE 

22 CREDIT UNION CAPITAL RELIEF 

23 SEC. 701. DELAY IN EFFECTIVE DATE. 

24 Notwithstanding any effective date set forth in the 

25 rule issued by the National Credit Union Administration 


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1 titled ‘‘Risk-Based Capital’’ (published at 80 Fed. Reg. 

2 66626 (October 29, 2015)), such final rule shall take ef3 fect on January 1, 2021. 

4 TITLE VIII—EXPORT CONTROL 

5 REFORM 

6 SEC. 801. SHORT TITLE. 

7 This title may be cited as the ‘‘Export Control Re8 form Act of 2018’’. 

9 SEC. 802. DEFINITIONS. 

10 In this title: 

11 (1) CONTROLLED.—The term ‘‘controlled’’ 

12 means the export, reexport, or transfer of an item 

13 subject to the jurisdiction of the United States 

14 under subtitle A. 

15 (2) DUAL-USE.—The term ‘‘dual-use’’, with re16 spect to an item, means the item has civilian appli17 cations and military, terrorism, weapons of mass de18 struction, or law-enforcement-related applications. 

19 (3) EXPORT.—The term ‘‘export’’, with respect 

20 to an item subject to controls under subtitle A, in21 cludes— 

22 (A) the shipment or transmission of the 

23 item out of the United States, including the 

24 sending or taking of the item out of the United 

25 States, in any manner; and 


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1 (B) the release or transfer of technology or 

2 source code relating to the item to a foreign 

3 person in the United States. 

4 (4) EXPORT ADMINISTRATION REGULATIONS.— 

5 The term ‘‘Export Administration Regulations’’ 

6 means— 

7 (A) the Export Administration Regulations 

8 as promulgated, maintained, and amended 

9 under the authority of the International Emer10 gency Economic Powers Act and codified, as of 

11 the date of the enactment of this Act, in sub12 chapter C of chapter VII of title 15, Code of 

13 Federal Regulations; or 

14 (B) regulations that are promulgated, 

15 maintained, and amended under the authority 

16 of subtitle A on or after the date of the enact17 ment of this Act. 

18 (5) FOREIGN PERSON.—The term ‘‘foreign per19 son’’ means a person that is not a United States 

20 person. 

21 (6) ITEM.—The term ‘‘item’’ means a com22 modity, software, or technology. 

23 (7) PERSON.—The term ‘‘person’’ means— 

24 (A) a natural person; 


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1 (B) a corporation, business association, 

2 partnership, society, trust, financial institution, 

3 insurer, underwriter, guarantor, and any other 

4 business organization, any other nongovern5 mental entity, organization, or group, or any 

6 government or agency thereof; and 

7 (C) any successor to any entity described 

8 in subparagraph (B). 

9 (8) REEXPORT.—The term ‘‘reexport’’, with re10 spect to an item subject to controls under subtitle A, 

11 includes— 

12 (A) the shipment or transmission of the 

13 item from a foreign country to another foreign 

14 country, including the sending or taking of the 

15 item from the foreign country to the other for16 eign country, in any manner; and 

17 (B) the release or transfer of technology or 

18 source code relating to the item to a foreign 

19 person outside the United States. 

20 (9) SECRETARY.—Except as otherwise provided, 

21 the term ‘‘Secretary’’ means the Secretary of Com22 merce. 

23 (10) TECHNOLOGY.—The term ‘‘technology’’ 

24 includes foundational information and information 

25 and know-how necessary for the development (at all 


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1 stages prior to serial production), production, use, 

2 operation, installation, maintenance, repair, overhaul 

3 or refurbishing of an item. 

4 (11) TRANSFER.—The term ‘‘transfer’’, with 

5 respect to an item subject to controls under title I, 

6 means a change in the end-use or end user of the 

7 item within the same foreign country. 

8 (12) UNITED STATES.—The term ‘‘United 

9 States’’ means the several States, the District of Co10 lumbia, the Commonwealth of Puerto Rico, the Com11 monwealth of the Northern Mariana Islands, Amer12 ican Samoa, Guam, the United States Virgin Is13 lands, and any other territory or possession of the 

14 United States. 

15 (13) UNITED STATES PERSON.—The term 

16 ‘‘United States person’’ means— 

17 (A) for purposes of subtitles A and C— 

18 (i) any individual who is a citizen or 

19 national of the United States or who is an 

20 individual described in subparagraph (B) 

21 of section 274B(a)(3) of the Immigration 

22 and Nationality Act (8 U.S.C. 

23 1324b(a)(3)); 

24 (ii) a corporation or other legal entity 

25 which is organized under the laws of the 


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1 United States, any State or territory there2 of, or the District of Columbia; and 

3 (iii) any person in the United States; 

4 and 

5 (B) for purposes of subtitle B, any United 

6 States resident or national (other than an indi7 vidual resident outside the United States and 

8 employed by other than a United States per9 son), any domestic concern (including any per10 manent domestic establishment of any foreign 

11 concern) and any foreign subsidiary or affiliate 

12 (including any permanent foreign establish13 ment) of any domestic concern which is con14 trolled in fact by such domestic concern, as de15 termined under regulations by the Secretary. 

16 (14) WEAPONS OF MASS DESTRUCTION.—The 

17 term ‘‘weapons of mass destruction’’ means nuclear, 

18 radiological, chemical, and biological weapons and 

19 delivery systems for such weapons. 

20 Subtitle A—Authority and 

21 Administration of Controls 

22 SEC. 811. SHORT TITLE. 

23 This subtitle may be cited as the ‘‘Export Controls 

24 Act of 2018’’. 


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1 SEC. 812. STATEMENT OF POLICY. 

2 The following is the policy of the United States: 

3 (1) The national security and foreign policy of 

4 the United States require that the export, reexport, 

5 and transfer of items, and specific activities of 

6 United States persons, wherever located, be con7 trolled for the following purposes: 

8 (A) To control the release of items for use 

9 in— 

10 (i) the proliferation of weapons of 

11 mass destruction or of conventional weap12 ons; 

13 (ii) the acquisition of destabilizing 

14 numbers or types of conventional weapons; 

15 (iii) acts of terrorism; 

16 (iv) military programs that could pose 

17 a threat to the security of the United 

18 States or its allies; or 

19 (v) activities undertaken specifically to 

20 cause significant interference with or dis21 ruption of critical infrastructure. 

22 (B) To preserve the qualitative military su23 periority of the United States. 

24 (C) To strengthen the United States in25 dustrial base. 


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1 (D) To carry out the foreign policy of the 

2 United States, including the protection of 

3 human rights and the promotion of democracy. 

4 (E) To carry out obligations and commit5 ments under international agreements and ar6 rangements, including multilateral export con7 trol regimes. 

8 (F) To facilitate military interoperability 

9 between the United States and its North Atlan10 tic Treaty Organization (NATO) and other 

11 close allies. 

12 (G) To ensure national security controls 

13 are tailored to focus on those core technologies 

14 and other items that are capable of being used 

15 to pose a serious national security threat to the 

16 United States. 

17 (2) The national security of the United States 

18 requires that the United States maintain its leader19 ship in the science, technology, engineering, and 

20 manufacturing sectors, including foundational tech21 nology that is essential to innovation. Such leader22 ship requires that United States persons are com23 petitive in global markets. The impact of the imple24 mentation of this subtitle on such leadership and 

25 competitiveness must be evaluated on an ongoing 


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1 basis and applied in imposing controls under sec2 tions 813 and 814 to avoid negatively affecting such 

3 leadership. 

4 (3) The national security and foreign policy of 

5 the United States require that the United States 

6 participate in multilateral organizations and agree7 ments regarding export controls on items that are 

8 consistent with the policy of the United States, and 

9 take all the necessary steps to secure the adoption 

10 and consistent enforcement, by the governments of 

11 such countries, of export controls on items that are 

12 consistent with such policy. 

13 (4) Export controls should be fully coordinated 

14 with the multilateral export control regimes. Export 

15 controls that are multilateral are most effective, and 

16 should be tailored to focus on those core technologies 

17 and other items that are capable of being used to 

18 pose a serious national security threat to the United 

19 States and its allies. 

20 (5) Export controls applied unilaterally to items 

21 widely available from foreign sources generally are 

22 less effective in preventing end-users from acquiring 

23 those items. 

24 (6) The effective administration of export con25 trols requires a clear understanding both inside and 


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1 outside the United States Government of which tech2 nologies and other items are controlled and an effi3 cient process should be created to update the con4 trols, such as by removing and adding technologies 

5 and other items. 

6 (7) The export control system must ensure that 

7 it is transparent, predictable, and timely, has the 

8 flexibility to be adapted to address new threats in 

9 the future, and allows seamless access to and shar10 ing of export control information among all relevant 

11 United States national security and foreign policy 

12 agencies. 

13 (8) Implementation and enforcement of United 

14 States export controls require robust capabilities in 

15 monitoring, intelligence, and investigation, appro16 priate penalties for violations, and the ability to 

17 swiftly interdict unapproved transfers. 

18 (9) Export controls should be balanced with 

19 United States counterterrorism, information secu20 rity, and cyber-security policies to ensure the ability 

21 to export, reexport, and transfer technology and 

22 other items in support of counterterrorism, critical 

23 infrastructure, and other homeland security prior24 ities, while effectively preventing malicious cyber ter25 rorists from obtaining items that threaten the 


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1 United States and its interests, including the protec2 tion of and safety of United States citizens abroad. 

3 (10) Export controls complement and are a 

4 critical element of the national security policies un5 derlying the laws and regulations governing foreign 

6 direct investment in the United States, including 

7 controlling the transfer of critical technologies to 

8 certain foreign persons. Thus, the President, in close 

9 coordination with the Department of Commerce, the 

10 Department of Defense, the Department of State, 

11 the Department of Energy, and other agencies re12 sponsible for export controls, should have a regular 

13 and robust process to identify the emerging and 

14 other types of critical technologies of concern and 

15 regulate their release to foreign persons as war16 ranted regardless of the nature of the underlying 

17 transaction. Such identification efforts should draw 

18 upon the resources and expertise of all relevant 

19 parts of the United States Government, industry, 

20 and academia. These efforts should be in addition to 

21 traditional efforts to modernize and update the lists 

22 of controlled items under the multilateral export con23 trol regimes. 


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1 (11) The authority under this subtitle may be 

2 exercised only in furtherance of all of the objectives 

3 set forth in paragraphs (1) through (10). 

4 SEC. 813. AUTHORITY OF THE PRESIDENT. 

5 (a) AUTHORITY.—In order to carry out the policy set 

6 forth in paragraphs (1) through (10) of section 812, the 

7 President shall control— 

8 (1) the export, reexport, and transfer of items 

9 subject to the jurisdiction of the United States, 

10 whether by United States persons or by foreign per11 sons; and 

12 (2) the activities of United States persons, 

13 wherever located, relating to specific— 

14 (A) nuclear explosive devices; 

15 (B) missiles; 

16 (C) chemical or biological weapons; 

17 (D) whole plants for chemical weapons pre18 cursors; 

19 (E) foreign maritime nuclear projects; and 

20 (F) foreign military intelligence services. 

21 (b) REQUIREMENTS.—In exercising authority under 

22 this subtitle, the President shall impose controls to achieve 

23 the following objectives: 


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1 (1) To regulate the export, reexport, and trans2 fer of items described in subsection (a)(1) of United 

3 States persons or foreign persons. 

4 (2) To regulate the activities described in sub5 section (a)(2) of United States persons, wherever lo6 cated. 

7 (3) To secure the cooperation of other govern8 ments and multilateral organizations to impose con9 trol systems that are consistent, to the extent pos10 sible, with the controls imposed under subsection 

11 (a). 

12 (4) To maintain the leadership of the United 

13 States in science, engineering, technology research 

14 and development, manufacturing, and foundational 

15 technology that is essential to innovation. 

16 (5) To protect United States technological ad17 vances by prohibiting unauthorized technology trans18 fers to foreign persons in the United States or out19 side the United States, particularly with respect to 

20 countries that may pose a significant threat to the 

21 national security of the United States. 

22 (6) To enhance the viability of commercial 

23 firms, academic institutions, and research establish24 ments, and maintain the skilled workforce of such 

25 firms, institutions, and establishments, that are necVerDate Sep 11 2014 22:24 May 18, 2018 Jkt 079200 PO 00000 Frm 00064 Fmt 6652 Sfmt 6201 E:\BILLS\H5841.IH H5841

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1 essary to preserving the leadership of the United 

2 States described in paragraph (4). 

3 (7) To strengthen the United States industrial 

4 base, both with respect to current and future de5 fense requirements. 

6 (8) To enforce the controls through means such 

7 as regulations, requirements for compliance, lists of 

8 controlled items, lists of foreign persons who threat9 en the national security or foreign policy of the 

10 United States, and guidance in a form that facili11 tates compliance by United States persons and for12 eign persons, in particular academic institutions, sci13 entific and research establishments, and small- and 

14 medium-sized businesses. 

15 (c) APPLICATION OF CONTROLS.—The President 

16 shall impose controls over the export, reexport, or transfer 

17 of items for purposes of the objectives described in sub18 sections (b)(1) or (b)(2) without regard to the nature of 

19 the underlying transaction or any circumstances per20 taining to the activity, including whether such export, re21 export, or transfer occurs pursuant to a purchase order 

22 or other contract requirement, voluntary decision, inter23 company arrangement, marketing effort, or during a joint 

24 venture, joint development agreement, or similar collabo25 rative agreement. 


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1 SEC. 814. ADDITIONAL AUTHORITIES. 

2 (a) IN GENERAL.—In carrying out this subtitle, the 

3 President shall— 

4 (1) establish and maintain lists published by 

5 the Secretary of items that are controlled under this 

6 subtitle; 

7 (2) establish and maintain lists published by 

8 the Secretary of foreign persons and end-uses that 

9 are determined to be a threat to the national secu10 rity and foreign policy of the United States pursuant 

11 to the policy set forth in section 812(1)(A); 

12 (3) prohibit unauthorized exports, reexports, 

13 and transfers of controlled items, including to for14 eign persons in the United States or outside the 

15 United States; 

16 (4) restrict exports, reexports, and transfers of 

17 any controlled items to any foreign person or end18 use listed under paragraph (2); 

19 (5) require licenses or other authorizations, as 

20 appropriate, for exports, reexports, and transfers of 

21 controlled items, including imposing conditions or re22 strictions on United States persons and foreign per23 sons with respect to such licenses or other authoriza24 tions; 

25 (6) establish a process by which a license appli26 cant may request an assessment to determine whethVerDate Sep 11 2014 22:24 May 18, 2018 Jkt 079200 PO 00000 Frm 00066 Fmt 6652 Sfmt 6201 E:\BILLS\H5841.IH H5841

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1 er a foreign item is comparable in quality to an item 

2 controlled under this subtitle, and is available in suf3 ficient quantities to render the United States export 

4 control of that item or the denial of a license ineffec5 tive, including a mechanism to address that dis6 parity; 

7 (7) require measures for compliance with the 

8 export controls established under this subtitle; 

9 (8) require and obtain such information from 

10 United States persons and foreign persons as is nec11 essary to carry out this subtitle; 

12 (9) require, as appropriate, advance notice be13 fore an item is exported, reexported, or transferred, 

14 as an alternative to requiring a license; 

15 (10) require, to the extent feasible, identifica16 tion of items subject to controls under this subtitle 

17 in order to facilitate the enforcement of such con18 trols; 

19 (11) inspect, search, detain, seize, or impose 

20 temporary denial orders with respect to items, in 

21 any form, that are subject to controls under this 

22 subtitle, or conveyances on which it is believed that 

23 there are items that have been, are being, or are 

24 about to be exported, reexported, or transferred in 

25 violation of this subtitle; 


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1 (12) monitor shipments, or other means of 

2 transfer; 

3 (13) keep the public fully apprised of changes 

4 in policy, regulations, and procedures established 

5 under this subtitle; 

6 (14) appoint technical advisory committees in 

7 accordance with the Federal Advisory Committee 

8 Act; 

9 (15) create, as warranted, exceptions to licens10 ing requirements in order to further the objectives of 

11 this subtitle; 

12 (16) establish and maintain processes to inform 

13 persons, either individually by specific notice or 

14 through amendment to any regulation or order 

15 issued under this subtitle, that a license from the 

16 Bureau of Industry and Security of the Department 

17 of Commerce is required to export; and 

18 (17) undertake any other action as is necessary 

19 to carry out this subtitle that is not otherwise pro20 hibited by law. 

21 (b) RELATIONSHIP TO IEEPA.—The authority under 

22 this subtitle may not be used to regulate or prohibit under 

23 this subtitle the export, reexport, or transfer of any item 

24 that may not be regulated or prohibited under section 

25 203(b) of the International Emergency Economic Powers 


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1 Act (50 U.S.C. 1702(b)), except to the extent the Presi2 dent has made a determination necessary to impose con3 trols under subparagraph (A), (B), or (C) of paragraph 

4 (2) of such section. 

5 (c) COUNTRIES SUPPORTING INTERNATIONAL TER6 RORISM.— 

7 (1) LICENSE REQUIREMENT.— 

8 (A) IN GENERAL.—A license shall be re9 quired for the export, reexport, or transfer of 

10 items to a country if the Secretary of State has 

11 made the following determinations: 

12 (i) The government of such country 

13 has repeatedly provided support for acts of 

14 international terrorism. 

15 (ii) The export, reexport, or transfer 

16 of such items could make a significant con17 tribution to the military potential of such 

18 country, including its military logistics ca19 pability, or could enhance the ability of 

20 such country to support acts of inter21 national terrorism. 

22 (B) DETERMINATION UNDER OTHER PRO23 VISIONS OF LAW.—A determination of the Sec24 retary of State under section 620A of the For25 eign Assistance Act of 1961 (22 U.S.C. 2371), 


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1 section 40 of the Arms Export Control Act (22 

2 U.S.C. 2780), or any other provision of law 

3 that the government of a country described in 

4 subparagraph (A) has repeatedly provided sup5 port for acts of international terrorism shall be 

6 deemed to be a determination with respect to 

7 such government for purposes of clause (i) of 

8 subparagraph (A). 

9 (2) NOTIFICATION TO CONGRESS.—The Sec10 retary of State or the Secretary of Commerce shall 

11 notify the Committee on Foreign Affairs of the 

12 House of Representatives and the Committee on 

13 Banking, Housing, and Urban Affairs and the Com14 mittee on Foreign Relations of the Senate at least 

15 30 days before issuing any license required by para16 graph (1). 

17 (3) PUBLICATION IN FEDERAL REGISTER.— 

18 Each determination of the Secretary of State under 

19 paragraph (1)(A) shall be published in the Federal 

20 Register, except that the Secretary of State may ex21 clude confidential information and trade secrets con22 tained in such determination. 

23 (4) RESCISSION OF DETERMINATION.—A deter24 mination of the Secretary of State under paragraph 

25 (1)(A) may not be rescinded unless the President 


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1 submits to the Speaker of the House of Representa2 tives, the chairman of the Committee on Foreign Af3 fairs, and the chairman of the Committee on Bank4 ing, Housing, and Urban Affairs and the chairman 

5 of the Committee on Foreign Relations of the Sen6 ate— 

7 (A) before the proposed rescission would 

8 take effect, a report certifying that— 

9 (i) there has been a fundamental 

10 change in the leadership and policies of the 

11 government of the country concerned; 

12 (ii) that government is not supporting 

13 acts of international terrorism; and 

14 (iii) that government has provided as15 surances that it will not support acts of 

16 international terrorism in the future; or 

17 (B) at least 90 days before the proposed 

18 rescission would take effect, a report justifying 

19 the rescission and certifying that— 

20 (i) the government concerned has not 

21 provided any support for acts international 

22 terrorism during the preceding 24-month 

23 period; and 

24 (ii) the government concerned has 

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1 port acts of international terrorism in the 

2 future. 

3 (5) DISAPPROVAL OF RESCISSION.—No rescis4 sion under paragraph (4)(B) of a determination 

5 under paragraph (1)(A) with respect to the govern6 ment of a country may be made if Congress, within 

7 90 days after receipt of a report under paragraph 

8 (4)(B), enacts a joint resolution described in sub9 section (f)(2) of section 40 of the Arms Export Con10 trol Act with respect to a rescission under subsection 

11 (f)(1) of such section with respect to the government 

12 of such country. 

13 (6) NOTIFICATION AND BRIEFING.—Not later 

14 than— 

15 (A) ten days after initiating a review of the 

16 activities of the government of the country con17 cerned within the 24-month period referred to 

18 in paragraph (4)(B)(i), the Secretary of State 

19 shall notify the Committee on Foreign Affairs 

20 of the House of Representatives and the Com21 mittee on Foreign Relations of the Senate of 

22 such initiation; and 

23 (B) 20 days after the notification described 

24 in paragraph (1), the Secretary of State shall 


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1 brief the congressional committees described in 

2 paragraph (1) on the status of such review. 

3 (7) CONTENTS OF NOTIFICATION OF LI4 CENSE.—The Secretary of State shall include in the 

5 notification required by paragraph (2)— 

6 (A) a detailed description of the items to 

7 be offered, including a brief description of the 

8 capabilities of any item for which a license to 

9 export, reexport, or transfer the items is 

10 sought; 

11 (B) the reasons why the foreign country, 

12 person, or entity to which the export, reexport, 

13 or transfer is proposed to be made has re14 quested the items under the export, reexport, or 

15 transfer, and a description of the manner in 

16 which such country, person, or entity intends to 

17 use such items; 

18 (C) the reasons why the proposed export, 

19 reexport, or transfer is in the national interest 

20 of the United States; 

21 (D) an analysis of the impact of the pro22 posed export, reexport, or transfer on the mili23 tary capabilities of the foreign country, person, 

24 or entity to which such transfer would be made; 


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1 (E) an analysis of the manner in which the 

2 proposed export, reexport, or transfer would af3 fect the relative military strengths of countries 

4 in the region to which the items that are the 

5 subject of such export, reexport, or transfer 

6 would be delivered and whether other countries 

7 in the region have comparable kinds and 

8 amounts of items; and 

9 (F) an analysis of the impact of the pro10 posed export, reexport, or transfer on the rela11 tions of the United States with the countries in 

12 the region to which the items that are the sub13 ject of such export, reexport, or transfer would 

14 be delivered. 

15 (d) ENHANCED CONTROLS.— 

16 (1) IN GENERAL.—In furtherance of section 

17 813(a), the President shall, except to the extent au18 thorized by a statute or regulation administered by 

19 a Federal department or agency other than the De20 partment of Commerce, require a United States per21 son, wherever located, to apply for and receive a li22 cense from the Department of Commerce for— 

23 (A) the export, reexport, or transfer of 

24 items described in paragraph (2), including 


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1 items that are not subject to control under this 

2 subtitle; and 

3 (B) other activities that may support the 

4 design, development, production, use, operation, 

5 installation, maintenance, repair, overhaul, or 

6 refurbishing of, or for the performance of serv7 ices relating to, any such items. 

8 (2) ITEMS DESCRIBED.—The items described in 

9 this paragraph include— 

10 (A) nuclear explosive devices; 

11 (B) missiles; 

12 (C) chemical or biological weapons; 

13 (D) whole plants for chemical weapons pre14 cursors; and 

15 (E) foreign maritime nuclear projects that 

16 would pose a risk to the national security or 

17 foreign policy of the United States. 

18 (e) ADDITIONAL PROHIBITIONS.—The Secretary may 

19 inform United States persons, either individually by spe20 cific notice or through amendment to any regulation or 

21 order issued under this subtitle, that a license from the 

22 Bureau of Industry and Security of the Department of 

23 Commerce is required to engage in any activity if the ac24 tivity involves the types of movement, service, or support 

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1 fication does not excuse the United States person from 

2 compliance with the license requirements of subsection (d), 

3 or any regulation or order issued under this subtitle. 

4 (f) LICENSE REVIEW STANDARDS.—The Secretary 

5 shall deny an application to engage in any activity de6 scribed in subsection (d) if the activity would make a ma7 terial contribution to any of the items described in sub8 section (d)(2). 

9 SEC. 815. ADMINISTRATION OF EXPORT CONTROLS. 

10 (a) IN GENERAL.—The President shall delegate to 

11 the Secretary of Commerce, the Secretary of Defense, the 

12 Secretary of State, the Secretary of Energy, and, as ap13 propriate, the Director of National Intelligence and the 

14 heads of other appropriate Federal departments and agen15 cies, the authority to carry out the purposes set forth in 

16 subsection (b). 

17 (b) PURPOSES.— 

18 (1) IN GENERAL.—The purpose of the delega19 tions of authority pursuant to subsection (a) are— 

20 (A) to advise the President with respect 

21 to— 

22 (i) identifying specific threats to the 

23 national security and foreign policy that 

24 the authority of this subtitle may be used 

25 to address; and 


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1 (ii) exercising the authority under this 

2 subtitle to implement policies, regulations, 

3 procedures, and actions that are necessary 

4 to effectively counteract those threats; 

5 (B) to review and approve— 

6 (i) criteria for including items on, and 

7 removing such an item from, a list of con8 trolled items established under this sub9 title; 

10 (ii) an interagency procedure for com11 piling and amending any list described in 

12 clause (i); 

13 (iii) criteria for including a person on 

14 a list of persons to whom exports, reex15 ports, and transfers of items are prohibited 

16 or restricted under this subtitle; 

17 (iv) standards for compliance by per18 sons subject to controls under this subtitle; 

19 and 

20 (v) policies and procedures for the 

21 end-use monitoring of exports, reexports, 

22 and transfers of items controlled under 

23 this subtitle; 

24 (C) to obtain independent evaluations, in25 cluding from Inspectors General of the relevant 


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1 departments or agencies, on a periodic basis on 

2 the effectiveness of the implementation of this 

3 subtitle in carrying out the policy set forth in 

4 section 812; and 

5 (D) to benefit from the inherent equities, 

6 experience, and capabilities of the Federal offi7 cials described in subsection (a), including— 

8 (i) the views of the Department of De9 fense with respect to the national security 

10 implications of a particular control or deci11 sion; 

12 (ii) the views of the Department of 

13 State with respect to the foreign policy im14 plications of a particular control or deci15 sion; 

16 (iii) the views of the Department of 

17 Energy with respect to the implications for 

18 nuclear proliferation of a particular control 

19 or decision; and 

20 (iv) the views of the Department of 

21 Commerce with respect to the administra22 tion of an efficient, coherent, reliable, en23 forceable, and predictable export control 

24 system, and the resolution of competing 


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1 views or policy objectives described in sec2 tion 812. 

3 (2) AUTHORITY TO SEEK INFORMATION.—The 

4 Federal officials described in subsection (a) may, in 

5 carrying out the purposes set forth in paragraph (1), 

6 seek information and advice from experts who are 

7 not officers or employees of the Federal Govern8 ment. 

9 (3) TRANSMITTAL AND IMPLEMENTATION OF

10 EVALUATIONS.—The results of the independent eval11 uations conducted pursuant to paragraph (1)(C) 

12 shall be transmitted to the President and the Con13 gress, in classified form if necessary. Subject to the 

14 delegation of authority by the President, the Federal 

15 officials described in subsection (a) shall determine, 

16 direct, and ensure that improvements recommended 

17 in the evaluations are implemented. 

18 (c) SENSE OF CONGRESS.—It is the sense of Con19 gress that the administration of export controls under this 

20 subtitle should be consistent with the procedures relating 

21 to export license applications described in Executive Order 

22 12981 (1995). 

23 SEC. 816. CONTROL LISTS. 

24 The President shall, pursuant to the delegation of au25 thority in section 815, ensure that— 


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1 (1) a process is established for regular inter2 agency review of each list established under section 

3 814(a)(1), that pursuant to such review the Sec4 retary regularly updates such lists to ensure that 

5 new items (including emerging critical technologies) 

6 are appropriately controlled, and that the level of 

7 control of items on the lists are adjusted as condi8 tions change; 

9 (2) information and expertise are obtained from 

10 officers and employees from relevant Federal depart11 ments, agencies, and offices and persons outside the 

12 Federal Government who have technical expertise, 

13 with respect to the characteristics of the items con14 sidered for each list established under section 

15 814(a)(1) and the effect of controlling the items on 

16 addressing the policy set forth in section 812; 

17 (3) each list established under section 814(a)(1) 

18 appropriately identifies each entry that has been in19 cluded by virtue of the participation of the United 

20 States in a multilateral regime, organization, or 

21 group the purpose of which is consistent with and 

22 supports the policy of the United States under this 

23 subtitle relating to the control of exports, reexports, 

24 and transfers of items; and 


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1 (4) each list established under section 814(a)(1) 

2 is published by the Secretary in a form that facili3 tates compliance with it and related requirements, 

4 particularly by small- and medium-sized businesses, 

5 and academic institutions. 

6 SEC. 817. LICENSING. 

7 (a) IN GENERAL.—The President shall, pursuant to 

8 the delegation of authority in section 815, establish a pro9 cedure for the Department of Commerce to license or oth10 erwise authorize the export, reexport, and transfer of 

11 items controlled under this subtitle in order to carry out 

12 the policy set forth in section 812 and the requirements 

13 set forth in section 813(b). The procedure shall ensure 

14 that— 

15 (1) license applications, other requests for au16 thorization, and related dispute resolution proce17 dures are considered and decisions made with the 

18 participation of appropriate departments, agencies, 

19 and offices that have delegated functions under this 

20 subtitle; and 

21 (2) licensing decisions are made in an expedi22 tious manner, with transparency to applicants on the 

23 status of license and other authorization processing 

24 and the reason for denying any license or request for 

25 authorization. 


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1 (b) SENSE OF CONGRESS.—It is the sense of Con2 gress that the President should make best efforts to en3 sure that an accurate, consistent, and timely evaluation 

4 and processing of licenses or other requests for authoriza5 tion to export, reexport, or transfer items controlled under 

6 this subtitle is accomplished within 30 days from the date 

7 of such license request. 

8 (c) FEES.—No fee may be charged in connection with 

9 the submission, processing, or consideration of any appli10 cation for a license or other authorization or other request 

11 made in connection with any regulation in effect under 

12 the authority of this subtitle. 

13 SEC. 818. COMPLIANCE ASSISTANCE. 

14 (a) SYSTEM FOR SEEKING ASSISTANCE.—The Presi15 dent may authorize the Secretary to establish a system 

16 to provide United States persons with assistance in com17 plying with this subtitle, which may include a mechanism 

18 for providing information, in classified form as appro19 priate, who are potential customers, suppliers, or business 

20 partners with respect to items controlled under this sub21 title, in order to further ensure the prevention of the ex22 port, reexport, or transfer of items that may pose a threat 

23 to the national security or foreign policy of the United 

24 States. 


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1 (b) SECURITY CLEARANCES.—In order to carry out 

2 subsection (a), the President may issue appropriate secu3 rity clearances to persons described in that subsection who 

4 are responsible for complying with this subtitle. 

5 (c) ASSISTANCE FOR CERTAIN BUSINESSES.— 

6 (1) IN GENERAL.—Not later than 120 days 

7 after the date of the enactment of this Act, the 

8 President shall develop and submit to Congress a 

9 plan to assist small- and medium-sized United 

10 States in export licensing and other processes under 

11 this subtitle. 

12 (2) CONTENTS.—The plan shall include, among 

13 other things, arrangements for the Department of 

14 Commerce to provide counseling to businesses de15 scribed in paragraph (1) on filing applications and 

16 identifying items controlled under this subtitle, as 

17 well as proposals for seminars and conferences to 

18 educate such businesses on export controls, licensing 

19 procedures, and related obligations. 

20 SEC. 819. REQUIREMENTS TO IDENTIFY AND CONTROL 

21 EMERGING, FOUNDATIONAL, AND OTHER 

22 CRITICAL TECHNOLOGIES IN EXPORT CON23 TROL REGULATIONS. 

24 (a) IN GENERAL.—The President shall establish and, 

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1 fense, the Secretary of Energy, the Secretary of State, and 

2 the heads of other departments as appropriate, lead a reg3 ular, ongoing interagency process to identify the following: 

4 (1) Emerging, foundational, or other critical 

5 technologies that are essential to the national secu6 rity of the United States and that are not— 

7 (A) identified in any list of items con8 trolled for export under United States law or 

9 regulations; or 

10 (B) hereafter separately identified in any 

11 law or regulation under the authority of a de12 partment or agency responsible for admin13 istering United States export controls. 

14 (2) Other technologies that are not identified in 

15 any list of items controlled for export under United 

16 States law or regulations that are essential to the 

17 national security of the United States. 

18 (3) Subject to subsections (c) and (d), the 

19 President shall require the relevant export control 

20 authority to publish proposed regulations for public 

21 comment, including, as appropriate, interim final 

22 rules, that would control such emerging, 

23 foundational, or other critical technologies identified 

24 pursuant to this subsection and control the release 


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1 of each such technology to destinations, end uses, or 

2 end users as determined by the President. 

3 (b) REQUIREMENTS.—The interagency process re4 quired under subsection (a) shall— 

5 (1) be informed by multiple sources of informa6 tion, including industry, academia, other open source 

7 and classified information and transactions reviewed 

8 by the Committee on Foreign Investment in the 

9 United States; 

10 (2) take into account the foreign development 

11 or availability of such emerging, foundational, and 

12 other critical technologies and the impact the con13 trols established in subsection (c) may have on the 

14 development of the technology in the United States; 

15 and 

16 (3) the Secretary, the Secretary of Defense, the 

17 Secretary of Energy, and the Secretary of State, and 

18 the heads of other departments as appropriate, shall 

19 consider relevant information provided by the Direc20 tor of National Intelligence. 

21 (c) COMMERCE CONTROLS.— 

22 (1) IN GENERAL.—The Secretary is authorized 

23 to establish controls, as appropriate, on technologies 

24 identified through the interagency process required 

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1 ministration Regulations, including by publishing ad2 ditional regulations. 

3 (2) LEVELS OF CONTROL.— 

4 (A) IN GENERAL.—The Secretary, in co5 ordination with the Secretary of Defense, the 

6 Secretary of State, and the heads of other de7 partments as appropriate, is authorized to de8 velop and apply levels of control, including the 

9 requirements for a license or other authoriza10 tion, to export, reexport, or transfer such tech11 nologies. 

12 (B) REQUIREMENTS.—In developing and 

13 applying the levels of control for such tech14 nologies, the Secretary— 

15 (i) shall take into account— 

16 (I) whether a country is subject 

17 to a United States arms embargo or is 

18 otherwise subject to United States 

19 sanctions; 

20 (II) potential end users and end 

21 uses; and 

22 (III) the threat to the national 

23 security and foreign policy of the 

24 United States; 


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1 (ii) shall, at a minimum, require a li2 cense to export, reexport, or transfer such 

3 technologies to a country that is subject to 

4 a comprehensive United States arms em5 bargo; and 

6 (iii) may provide for appropriate li7 cense exceptions for the export, reexport, 

8 or transfer of such technologies. 

9 (C) LICENSE APPLICATIONS SUBMITTED

10 PURSUANT TO SUBPARAGRAPH (B)(ii).—For li11 cense applications submitted pursuant to sub12 paragraph (B)(ii), the Secretary may, with re13 spect to any joint venture, joint development 

14 agreement, or similar collaborative arrange15 ment, require the applicant to identify, in addi16 tion to the foreign participant directly involved 

17 in the collaborative arrangement, any foreign 

18 person with significant ownership interest in 

19 the direct foreign participant. 

20 (3) REVIEW OF LICENSE APPLICATIONS.— 

21 (A) IN GENERAL.—The procedures set 

22 forth in Executive Order 12981 (1995) (as 

23 amended) or any successor Executive order, 

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1 nologies identified through the interagency 

2 process required under subsection (a) submitted 

3 to the Department of Commerce pursuant to 

4 paragraph (2). 

5 (B) OTHER INFORMATION.—In addition to 

6 the procedures described in subparagraph (A), 

7 the review of applications for such licenses shall 

8 take into account information provided by the 

9 Director of National Intelligence regarding any 

10 threat to the national security of the United 

11 States posed by the proposed export, reexport, 

12 or transfer of such technologies. 

13 (d) MULTILATERAL CONTROLS.— 

14 (1) IN GENERAL.—The Secretary of State, in 

15 consultation with the Secretary and the Secretary of 

16 Defense and heads of other departments as appro17 priate, shall propose to the relevant multilateral ex18 port control regimes in the following year that tech19 nologies identified through the interagency process 

20 required under subsection (a) be added to the list of 

21 technologies controlled by such regimes. 

22 (2) REVIEW OF CONTINUED UNILATERAL EX23 PORT CONTROLS.—The Secretary, with respect to 

24 those items on the Commerce Control List main25 tained under part 774 of title 15, Code of Federal 


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1 Regulations, and in consultation with the Secretary 

2 of Defense and the Secretary of State, and the Sec3 retary of State, with respect to those items on the 

4 United States Munitions List and in consultation 

5 with the Secretary of Defense and the heads of other 

6 departments as appropriate, shall determine whether 

7 national security concerns warrant continued unilat8 eral export controls over technologies proposed for 

9 multilateral control under paragraph (1) if the rel10 evant multilateral export control regime does not 

11 agree to list such technologies on its control list 

12 within three years of a proposal by the United 

13 States. 

14 (e) REPORT.—The Secretary, the Secretary of State, 

15 and the Secretary of Energy, as appropriate, shall submit 

16 to the Committee on Foreign Investment in the United 

17 States on a semiannual basis a report on updates of any 

18 key actions taken pursuant to this section. 

19 (f) RULE OF CONSTRUCTION.—Nothing in this sec20 tion should be construed to alter or limit— 

21 (1) the authority of the President and the Sec22 retary of State to designate those items that are 

23 considered to be defense articles or defense services 

24 for purposes of the Arms Export Control Act (22 


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1 U.S.C. 2751 et seq.) or any other relevant law, and 

2 to regulate such items; or 

3 (2) the authority of the President under the 

4 Atomic Energy Act of 1954, the Nuclear Non-Pro5 liferation Act of 1978, the Energy Reorganization 

6 Act of 1974, this title, or any other relevant law. 

7 (g) SENSE OF CONGRESS.—It is the sense of the 

8 Congress that the President should request in the annual 

9 budget of the President submitted under section 1105(a) 

10 of title 31, United States Code, sufficient resources to en11 able the relevant departments and agencies to effectively 

12 implement this section. 

13 SEC. 820. REVIEW RELATING TO COUNTRIES SUBJECT TO 

14 COMPREHENSIVE UNITED STATES ARMS EM15 BARGO. 

16 Not later than 180 days after the date of the enact17 ment of this Act, the Secretary, the Secretary of Defense, 

18 the Secretary of Energy, the Secretary of State, and the 

19 heads of other departments as appropriate, shall conduct 

20 a review of— 

21 (1) section 744.21 of title 15, Code of Federal 

22 Regulations, including to assess whether the current 

23 and anticipated risks of direct or indirect diversion, 

24 such as from policies and practices that effectively 

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1 users and end-uses, require that the scope of control 

2 under such section should be expanded to apply to 

3 exports, reexports, or transfers for military end uses 

4 and military end users in countries that are subject 

5 to a comprehensive United States arms embargo; 

6 and 

7 (2) entries on the Commerce Control List main8 tained under part 774 of title 15, Code of Federal 

9 Regulations, that do not impose license requirements 

10 for exports, reexports, or transfers to countries sub11 ject to a comprehensive United States arms embar12 go. 

13 SEC. 821. PENALTIES. 

14 (a) UNLAWFUL ACTS.— 

15 (1) IN GENERAL.—It shall be unlawful for a 

16 person to violate, attempt to violate, conspire to vio17 late, or cause a violation of this subtitle or of any 

18 regulation, order, license, or other authorization 

19 issued under this subtitle, including any of the un20 lawful acts described in paragraph (2). 

21 (2) SPECIFIC UNLAWFUL ACTS.—The unlawful 

22 acts described in this paragraph are the following: 

23 (A) No person may engage in any conduct 

24 prohibited by or contrary to, or refrain from en25 gaging in any conduct required by this subtitle, 


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1 the Export Administration Regulations, or any 

2 order, license or authorization issued there3 under. 

4 (B) No person may cause or aid, abet, 

5 counsel, command, induce, procure, permit, or 

6 approve the doing of any act prohibited, or the 

7 omission of any act required by this subtitle, 

8 the Export Administration Regulations, or any 

9 order, license or authorization issued there10 under. 

11 (C) No person may solicit or attempt a vio12 lation of this subtitle, the Export Administra13 tion Regulations, or any order, license or au14 thorization issued thereunder. 

15 (D) No person may conspire or act in con16 cert with one or more other persons in any 

17 manner or for any purpose to bring about or to 

18 do any act that constitutes a violation of this 

19 subtitle, the Export Administration Regula20 tions, or any order, license or authorization 

21 issued thereunder. 

22 (E) No person may order, buy, remove, 

23 conceal, store, use, sell, loan, dispose of, trans24 fer, transport, finance, forward, or otherwise 

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1 tions to facilitate such activities for, any item 

2 exported or to be exported from the United 

3 States, or that is otherwise subject to the Ex4 port Administration Regulations, with knowl5 edge that a violation of this subtitle, the Export 

6 Administration Regulations, or any order, li7 cense or authorization issued thereunder, has 

8 occurred, is about to occur, or is intended to 

9 occur in connection with the item unless valid 

10 authorization is obtained therefor. 

11 (F) No person may make any false or mis12 leading representation, statement, or certifi13 cation, or falsify or conceal any material fact, 

14 either directly to the Department of Commerce, 

15 or an official of any other United States agen16 cy, or indirectly through any other person— 

17 (i) in the course of an investigation or 

18 other action subject to the Export Admin19 istration Regulations; 

20 (ii) in connection with the prepara21 tion, submission, issuance, use, or mainte22 nance of any export control document or 

23 any report filed or required to be filed pur24 suant to the Export Administration Regu25 lations; or 


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1 (iii) for the purpose of or in connec2 tion with effecting any export, reexport, or 

3 transfer of an item subject to the Export 

4 Administration Regulations or a service or 

5 other activity of a United States person de6 scribed in section 814. 

7 (G) No person may engage in any trans8 action or take any other action with intent to 

9 evade the provisions of this subtitle, the Export 

10 Administration Regulations, or any order, li11 cense, or authorization issued thereunder. 

12 (H) No person may fail or refuse to com13 ply with any reporting or recordkeeping require14 ments of the Export Administration Regula15 tions or of any order, license, or authorization 

16 issued thereunder. 

17 (I) Except as specifically authorized in the 

18 Export Administration Regulations or in writ19 ing by the Department of Commerce, no person 

20 may alter any license, authorization, export con21 trol document, or order issued under the Export 

22 Administration Regulations. 

23 (J) No person may take any action that is 

24 prohibited by a denial order issued by the De25 partment of Commerce to prevent imminent 


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1 violations of this subtitle, the Export Adminis2 tration Regulations, or any order, license or au3 thorization issued thereunder. 

4 (3) ADDITIONAL REQUIREMENTS.—For pur5 poses of subparagraph (G), any representation, 

6 statement, or certification made by any person shall 

7 be deemed to be continuing in effect. Each person 

8 who has made a representation, statement, or certifi9 cation to the Department of Commerce relating to 

10 any order, license, or other authorization issued 

11 under this subtitle shall notify the Department of 

12 Commerce, in writing, of any change of any material 

13 fact or intention from that previously represented, 

14 stated, or certified, immediately upon receipt of any 

15 information that would lead a reasonably prudent 

16 person to know that a change of material fact or in17 tention had occurred or may occur in the future. 

18 (b) CRIMINAL PENALTY.—A person who willfully 

19 commits, willfully attempts to commit, or willfully con20 spires to commit, or aids and abets in the commission of, 

21 an unlawful act described in subsection (a)— 

22 (1) shall be fined not more than $1,000,000; 

23 and 

24 (2) in the case of the individual, shall be im25 prisoned for not more than 20 years, or both. 


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1 (c) CIVIL PENALTIES.— 

2 (1) AUTHORITY.—The President may impose 

3 the following civil penalties on a person for each vio4 lation by that person of this subtitle or any regula5 tion, order, or license issued under this subtitle, for 

6 each violation: 

7 (A) A fine of not more than $300,000 or 

8 an amount that is twice the value of the trans9 action that is the basis of the violation with re10 spect to which the penalty is imposed, which11 ever is greater. 

12 (B) Revocation of a license issued under 

13 this subtitle to the person. 

14 (C) A prohibition on the person’s ability to 

15 export, reexport, or transfer any items, whether 

16 or not subject to controls under this subtitle. 

17 (2) PROCEDURES.—Any civil penalty under this 

18 subsection may be imposed only after notice and op19 portunity for an agency hearing on the record in ac20 cordance with sections 554 through 557 of title 5, 

21 United States Code. 

22 (3) STANDARDS FOR LEVELS OF CIVIL PEN23 ALTY.—The Secretary may by regulation provide 

24 standards for establishing levels of civil penalty 

25 under this subsection based upon factors such as the 


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1 seriousness of the violation, the culpability of the vi2 olator, and such mitigating factors as the violator’s 

3 record of cooperation with the Government in dis4 closing the violation. 

5 (d) CRIMINAL FORFEITURE OF PROPERTY INTEREST

6 AND PROCEEDS.— 

7 (1) FORFEITURE.—Any person who is convicted 

8 under subsection (b) of a violation of a control im9 posed under section 813 (or any regulation, order, 

10 or license issued with respect to such control) shall, 

11 in addition to any other penalty, forfeit to the 

12 United States— 

13 (A) any of that person’s interest in, secu14 rity of, claim against, or property or contractual 

15 rights of any kind in the tangible items that 

16 were the subject of the violation; 

17 (B) any of that person’s interest in, secu18 rity of, claim against, or property or contractual 

19 rights of any kind in tangible property that was 

20 used in the violation; and 

21 (C) any of that person’s property consti22 tuting, or derived from, any proceeds obtained 

23 directly or indirectly as a result of the violation. 

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1 thority of the courts of the United States and the 

2 Attorney General with respect to any forfeiture ac3 tion under this subsection or with respect to any 

4 property that may be subject to forfeiture under this 

5 subsection, shall be governed by the provisions of 

6 section 1963 of title 18, United States Code. 

7 (e) PRIOR CONVICTIONS.— 

8 (1) LICENSE BAR.— 

9 (A) IN GENERAL.—The Secretary may— 

10 (i) deny the eligibility of any person 

11 convicted of a criminal violation described 

12 in subparagraph (B) to export, reexport, or 

13 transfer outside the United States any 

14 item, whether or not subject to controls 

15 under this subtitle, for a period of up to 10 

16 years beginning on the date of the convic17 tion; and 

18 (ii) revoke any license or other author19 ization to export, reexport, or transfer 

20 items that was issued under this subtitle 

21 and in which such person has an interest 

22 at the time of the conviction. 

23 (B) VIOLATIONS.—The violations referred 

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1 tions of, or criminal attempt or conspiracy to 

2 violate— 

3 (i) this subtitle (or any regulation, li4 cense, or order issued under this subtitle); 

5 (ii) any regulation, license, or order 

6 issued under the International Emergency 

7 Economic Powers Act; 

8 (iii) section 371, 554, 793, 794, or 

9 798 of title 18, United States Code; 

10 (iv) section 1001 of title 18, United 

11 States Code; 

12 (v) section 4(b) of the Internal Secu13 rity Act of 1950 (50 U.S.C. 783(b)); or 

14 (vi) section 38 of the Arms Export 

15 Control Act (22 U.S.C. 2778). 

16 (2) APPLICATION TO OTHER PARTIES.—The 

17 Secretary may exercise the authority under para18 graph (1) with respect to any person related, 

19 through affiliation, ownership, control, position of 

20 responsibility, or other connection in the conduct of 

21 trade or business, to any person convicted of any 

22 violation of law set forth in paragraph (1), upon a 

23 showing of such relationship with the convicted 

24 party, and subject to the procedures set forth in 

25 subsection (c)(2). 


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1 (f) OTHER AUTHORITIES.—Nothing in subsection 

2 (c), (d), or (e) limits— 

3 (1) the availability of other administrative or 

4 judicial remedies with respect to violations of this 

5 subtitle, or any regulation, order, license or other 

6 authorization issued under this subtitle; 

7 (2) the authority to compromise and settle ad8 ministrative proceedings brought with respect to vio9 lations of this subtitle, or any regulation, order, li10 cense, or other authorization issued under this sub11 title; or 

12 (3) the authority to compromise, remit or miti13 gate seizures and forfeitures pursuant to section 

14 1(b) of title VI of the Act of June 15, 1917 (22 

15 U.S.C. 401(b)). 

16 SEC. 822. ENFORCEMENT. 

17 (a) AUTHORITIES.—In order to enforce this subtitle, 

18 the President shall delegate to the heads of other appro19 priate Federal departments and agencies the authority 

20 to— 

21 (1) issue regulations, orders, and guidelines; 

22 (2) require, inspect, and obtain books, records, 

23 and any other information from any person subject 

24 to the provisions of this subtitle; 


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1 (3) administer oaths or affirmations and by 

2 subpoena require any person to appear and testify or 

3 to appear and produce books, records, and other 

4 writings, or both; 

5 (4) conduct investigations (including under6 cover) in the United States and in other countries 

7 using all applicable laws of the United States, in8 cluding intercepting any wire, oral, and electronic 

9 communications, conducting electronic surveillance, 

10 using pen registers and trap and trace devices, and 

11 carrying out acquisitions, to the extent authorized 

12 under chapters 119, 121, and 206 of title 18, 

13 United States Code; 

14 (5) inspect, search, detain, seize, or issue tem15 porary denial orders with respect to items, in any 

16 form, that are subject to controls under this subtitle, 

17 or conveyances on which it is believed that there are 

18 items that have been, are being, or are about to be 

19 exported, reexported, or transferred in violation of 

20 this subtitle, or any regulations, order, license, or 

21 other authorization issued thereunder; 

22 (6) carry firearms; 

23 (7) conduct prelicense inspections and post24 shipment verifications; and 

25 (8) execute warrants and make arrests. 


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1 (b) ENFORCEMENT OF SUBPOENAS.—In the case of 

2 contumacy by, or refusal to obey a subpoena issued to, 

3 any person under subsection (a)(3), a district court of the 

4 United States, after notice to such person and a hearing, 

5 shall have jurisdiction to issue an order requiring such 

6 person to appear and give testimony or to appear and 

7 produce books, records, and other writings, regardless of 

8 format, that are the subject of the subpoena. Any failure 

9 to obey such order of the court may be punished by such 

10 court as a contempt thereof. 

11 (c) BEST PRACTICE GUIDELINES.— 

12 (1) IN GENERAL.—The Secretary, in consulta13 tion with the heads of other appropriate Federal 

14 agencies, should publish and update ‘‘best practices’’ 

15 guidelines to assist persons in developing and imple16 menting, on a voluntary basis, effective export con17 trol programs in compliance with the regulations 

18 issued under this subtitle. 

19 (2) EXPORT COMPLIANCE PROGRAM.—The im20 plementation by a person of an effective export com21 pliance program and a high quality overall export 

22 compliance effort by a person should ordinarily be 

23 given weight as mitigating factors in a civil penalty 

24 action against the person under this subtitle. 


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1 (d) REFERENCE TO ENFORCEMENT.—For purposes 

2 of this section, a reference to the enforcement of, or a vio3 lation of, this subtitle includes a reference to the enforce4 ment or a violation of any regulation, order, license or 

5 other authorization issued pursuant to this subtitle. 

6 (e) IMMUNITY.—A person shall not be excused from 

7 complying with any requirements under this section be8 cause of the person’s privilege against self-incrimination, 

9 but the immunity provisions of section 6002 of title 18, 

10 United States Code, shall apply with respect to any indi11 vidual who specifically claims such privilege. 

12 (f) CONFIDENTIALITY OF INFORMATION.— 

13 (1) EXEMPTIONS FROM DISCLOSURE.— 

14 (A) IN GENERAL.—Information obtained 

15 under this subtitle may be withheld from disclo16 sure only to the extent permitted by statute, ex17 cept that information described in subpara18 graph (B) shall be withheld from public disclo19 sure and shall not be subject to disclosure 

20 under section 552(b)(3) of title 5, United 

21 States Code, unless the release of such informa22 tion is determined by the Secretary to be in the 

23 national interest. 

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1 tion submitted or obtained in connection with 

2 an application for a license or other authoriza3 tion to export, reexport, or transfer items, en4 gage in other activities, a recordkeeping or re5 porting requirement, enforcement activity, or 

6 other operations under this subtitle, including— 

7 (i) the license application, license, or 

8 other authorization itself; 

9 (ii) classification or advisory opinion 

10 requests, and the response thereto; 

11 (iii) license determinations, and infor12 mation pertaining thereto; 

13 (iv) information or evidence obtained 

14 in the course of any investigation; and 

15 (v) information obtained or furnished 

16 in connection with any international agree17 ment, treaty, or other obligation. 

18 (2) INFORMATION TO THE CONGRESS AND

19 GAO.— 

20 (A) IN GENERAL.—Nothing in this section 

21 shall be construed as authorizing the with22 holding of information from the Congress or 

23 from the Government Accountability Office. 

24 (B) AVAILABILITY TO THE CONGRESS.— 


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1 (i) IN GENERAL.—Any information 

2 obtained at any time under any provision 

3 of the Export Administration Act of 1979 

4 (as in effect on the day before the date of 

5 the enactment of this Act and as continued 

6 in effect pursuant to the International 

7 Emergency Economic Powers Act), under 

8 the Export Administration Regulations, or 

9 under this subtitle, including any report or 

10 license application required under any such 

11 provision, shall be made available to a 

12 committee or subcommittee of Congress of 

13 appropriate jurisdiction, upon the request 

14 of the chairman or ranking minority mem15 ber of such committee or subcommittee. 

16 (ii) PROHIBITION ON FURTHER DIS17 CLOSURE.—No such committee or sub18 committee, or member thereof, may dis19 close any information made available under 

20 clause (i), that is submitted on a confiden21 tial basis unless the full committee deter22 mines that the withholding of that infor23 mation is contrary to the national interest. 

24 (C) AVAILABILITY TO GAO.— 


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1 (i) IN GENERAL.—Information de2 scribed in clause (i) of subparagraph (B) 

3 shall be subject to the limitations con4 tained in section 716 of title 31, United 

5 States Code. 

6 (ii) PROHIBITION ON FURTHER DIS7 CLOSURE.—An officer or employee of the 

8 Government Accountability Office may not 

9 disclose, except to the Congress in accord10 ance with this paragraph, any such infor11 mation that is submitted on a confidential 

12 basis or from which any individual can be 

13 identified. 

14 (3) INFORMATION SHARING.— 

15 (A) IN GENERAL.—Any Federal official de16 scribed in section 815(a) who obtains informa17 tion that is relevant to the enforcement of this 

18 subtitle, including information pertaining to any 

19 investigation, shall furnish such information to 

20 each appropriate department, agency, or office 

21 with enforcement responsibilities under this sec22 tion to the extent consistent with the protection 

23 of intelligence, counterintelligence, and law en24 forcement sources, methods, and activities. 


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1 (B) EXCEPTIONS.—The provisions of this 

2 paragraph shall not apply to information sub3 ject to the restrictions set forth in section 9 of 

4 title 13, United States Code, and return infor5 mation, as defined in subsection (b) of section 

6 6103 of the Internal Revenue Code of 1986 (26 

7 U.S.C. 6103(b)), may be disclosed only as au8 thorized by that section. 

9 (C) EXCHANGE OF INFORMATION.—The 

10 President shall ensure that the heads of depart11 ments, agencies, and offices with enforcement 

12 authorities under this subtitle, consistent with 

13 protection of law enforcement and its sources 

14 and methods— 

15 (i) exchange any licensing and en16 forcement information with one another 

17 that is necessary to facilitate enforcement 

18 efforts under this section; and 

19 (ii) consult on a regular basis with 

20 one another and with the head of other de21 partments, agencies, and offices that ob22 tain information subject to this paragraph, 

23 in order to facilitate the exchange of such 

24 information. 


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1 (D) INFORMATION SHARING WITH FED2 ERAL AGENCIES.—Licensing or enforcement in3 formation obtained under this subtitle may be 

4 shared with heads of departments, agencies, 

5 and offices that do not have enforcement au6 thorities under this subtitle on a case-by-case 

7 basis at the discretion of the President. Such 

8 information may be shared only when the Presi9 dent makes a determination that the sharing of 

10 this information is in the national interest. 

11 (g) REPORTING REQUIREMENTS.—In the administra12 tion of this section, reporting requirements shall be de13 signed to reduce the cost of reporting, recordkeeping, and 

14 documentation to the extent consistent with effective en15 forcement and compilation of useful trade statistics. Re16 porting, recordkeeping, and documentation requirements 

17 shall be periodically reviewed and revised in the light of 

18 developments in the field of information technology. 

19 (h) CIVIL FORFEITURE.— 

20 (1) IN GENERAL.—Any tangible items seized 

21 under subsection (a) by designated officers or em22 ployees shall be subject to forfeiture to the United 

23 States in accordance with applicable law, except that 

24 property seized shall be returned if the property 


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1 owner is not found guilty of a civil or criminal viola2 tion under section 819. 

3 (2) PROCEDURES.—Any seizure or forfeiture 

4 under this subsection shall be carried out in accord5 ance with the procedures set forth in section 981 of 

6 title 18, United States Code. 

7 SEC. 823. ADMINISTRATIVE PROCEDURE. 

8 (a) IN GENERAL.—The functions exercised under 

9 this subtitle shall not be subject to sections 551, 553 

10 through 559, and 701 through 706 of title 5, United 

11 States Code. 

12 (b) ADMINISTRATIVE LAW JUDGES.—The Secretary 

13 is authorized to appoint an administrative law judge, and 

14 may designate administrative law judges from other Fed15 eral agencies who are provided pursuant to a legally au16 thorized interagency agreement with the Department of 

17 Commerce, and consistent with the provisions of section 

18 3105 of title 5, United States Code. 

19 (c) AMENDMENTS TO REGULATIONS.—The President 

20 shall notify in advance the Committee on Banking, Hous21 ing, and Urban Affairs of the Senate and the Committee 

22 on Foreign Affairs of the House of Representatives of any 

23 proposed amendments to the Export Administration Regu24 lations with an explanation of the intent and rationale of 

25 such amendments. 


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1 SEC. 824. ANNUAL REPORT TO CONGRESS. 

2 (a) IN GENERAL.—The President shall submit to 

3 Congress, by December 31 of each year, a report on the 

4 implementation of this subtitle during the preceding fiscal 

5 year. The report shall include a review of— 

6 (1) the effect of controls imposed under this 

7 subtitle on exports, reexports, and transfers of items 

8 in addressing threats to the national security or for9 eign policy of the United States, including a descrip10 tion of licensing processing times; 

11 (2) the impact of such controls on the scientific 

12 and technological leadership of the United States; 

13 (3) the consistency with such controls of export 

14 controls imposed by other countries; 

15 (4) efforts to provide exporters with compliance 

16 assistance, including specific actions to assist small17 and medium-sized businesses; 

18 (5) a summary of regulatory changes from the 

19 prior fiscal year; 

20 (6) a summary of export enforcement actions, 

21 including of actions taken to implement end-use 

22 monitoring of dual-use, military, and other items 

23 subject to the Export Administration Regulations; 

24 (7) a summary of approved license applications 

25 to proscribed persons; 


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1 (8) efforts undertaken within the previous year 

2 to comply with the requirements of section 819, in3 cluding any critical technologies identified under 

4 such section and how or whether such critical tech5 nologies were controlled for export; and 

6 (9) a summary of industrial base assessments 

7 conducted during the previous year by the Depart8 ment of Commerce, including with respect to coun9 terfeit electronics, foundational technologies, and 

10 other research and analysis of critical technologies 

11 and industrial capabilities of key defense-related sec12 tors. 

13 (b) FORM.—The report required under subsection (a) 

14 shall be submitted in unclassified form, but may contain 

15 a classified annex. 

16 SEC. 825. REPEAL. 

17 (a) IN GENERAL.—The Export Administration Act of 

18 1979 (50 U.S.C. App. 2401 et seq.) (as continued in effect 

19 pursuant to the International Emergency Economic Pow20 ers Act) is repealed. 

21 (b) IMPLEMENTATION.—The President shall imple22 ment the amendment made by subsection (a) by exercising 

23 the authorities of the President under the International 

24 Emergency Economic Powers Act (50 U.S.C. 1701 et 

25 seq.). 


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1 SEC. 826. EFFECT ON OTHER ACTS. 

2 (a) IN GENERAL.—Except as otherwise provided in 

3 this subtitle, nothing contained in this subtitle shall be 

4 construed to modify, repeal, supersede, or otherwise affect 

5 the provisions of any other laws authorizing control over 

6 exports, reexports, or transfers of any item, or activities 

7 of United States persons subject to the Export Adminis8 tration Regulations. 

9 (b) COORDINATION OF CONTROLS.— 

10 (1) IN GENERAL.—The authority granted to the 

11 President under this subtitle shall be exercised in 

12 such manner so as to achieve effective coordination 

13 with all export control and sanctions authorities ex14 ercised by Federal departments and agencies dele15 gated with authority under this subtitle, particularly 

16 the Department of State, the Department of the 

17 Treasury, and the Department of Energy. 

18 (2) SENSE OF CONGRESS.—It is the sense of 

19 Congress that in order to achieve effective coordina20 tion described in paragraph (1), such Federal de21 partments and agencies— 

22 (A) should continuously work to create en23 forceable regulations with respect to the export, 

24 reexport, and transfer by United States and 

25 foreign persons of commodities, software, tech26 nology, and services to various end uses and 


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1 end users for foreign policy and national secu2 rity reasons; 

3 (B) should regularly work to reduce com4 plexity in the system, including complexity 

5 caused merely by the existence of structural, 

6 definitional, and other non-policy based dif7 ferences between and among different export 

8 control and sanctions systems; and 

9 (C) should coordinate controls on items ex10 ported, reexported, or transferred in connection 

11 with a foreign military sale under chapter 2 of 

12 the Arms Export Control Act or a commercial 

13 sale under section 38 of the Arms Export Con14 trol Act to reduce as much unnecessary admin15 istrative burden as possible that is a result of 

16 differences between the exercise of those two 

17 authorities. 

18 (c) NONPROLIFERATION CONTROLS.—Nothing in 

19 this subtitle shall be construed to supersede the proce20 dures published by the President pursuant to section 

21 309(c) of the Nuclear Non-Proliferation Act of 1978. 

22 SEC. 827. TRANSITION PROVISIONS. 

23 (a) IN GENERAL.—All delegations, rules, regulations, 

24 orders, determinations, licenses, or other forms of admin25 istrative action that have been made, issued, conducted, 


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1 or allowed to become effective under the Export Adminis2 tration Act of 1979 (as in effect on the day before the 

3 date of the enactment of this Act and as continued in ef4 fect pursuant to the International Emergency Economic 

5 Powers Act), or the Export Administration Regulations, 

6 and are in effect as of the date of the enactment of this 

7 Act, shall continue in effect according to their terms until 

8 modified, superseded, set aside, or revoked under the au9 thority of this subtitle. 

10 (b) ADMINISTRATIVE AND JUDICIAL PRO11 CEEDINGS.—This subtitle shall not affect any administra12 tive or judicial proceedings commenced, or any applica13 tions for licenses made, under the Export Administration 

14 Act of 1979 (as in effect on the day before the date of 

15 the enactment of this Act and as continued in effect pur16 suant to the International Emergency Economic Powers 

17 Act), or the Export Administration Regulations. 

18 (c) CERTAIN DETERMINATIONS AND REFERENCES.— 

19 (1) STATE SPONSORS OF TERRORISM.—Any de20 termination that was made under section 6(j) of the 

21 Export Administration Act of 1979 (as in effect on 

22 the day before the date of the enactment of this Act 

23 and as continued in effect pursuant to the Inter24 national Emergency Economic Powers Act) shall 


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1 continue in effect as if the determination had been 

2 made under section 814(c) of this Act. 

3 (2) REFERENCE.—Any reference in any other 

4 provision of law to a country the government of 

5 which the Secretary of State has determined, for 

6 purposes of section 6(j) of the Export Administra7 tion Act of 1979 (as in effect on the day before the 

8 date of the enactment of this Act and as continued 

9 in effect pursuant to the International Emergency 

10 Economic Powers Act), is a government that has re11 peatedly provided support for acts of international 

12 terrorism shall be deemed to refer to a country the 

13 government of which the Secretary of State has de14 termined, for purposes of section 814(c), is a gov15 ernment that has repeatedly provided support for 

16 acts of international terrorism. 

17 Subtitle B—Anti-Boycott Act of 

18 2018 

19 SEC. 831. SHORT TITLE. 

20 This subtitle may be cited as the ‘‘Anti-Boycott Act 

21 of 2018’’. 

22 SEC. 832. STATEMENT OF POLICY. 

23 Congress declares it is the policy of the United 

24 States— 


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1 (1) to oppose restrictive trade practices or boy2 cotts fostered or imposed by any foreign country 

3 against other countries friendly to the United States 

4 or against any United States person; 

5 (2) to encourage and, in specified cases, require 

6 United States persons engaged in the export of 

7 goods or technology or other information to refuse to 

8 take actions, including furnishing information or en9 tering into or implementing agreements, which have 

10 the effect of furthering or supporting the restrictive 

11 trade practices or boycotts fostered or imposed by 

12 any foreign country against any United States per13 son; and 

14 (3) to foster international cooperation and the 

15 development of international rules and institutions 

16 to assure reasonable access to world supplies. 

17 SEC. 833. FOREIGN BOYCOTTS. 

18 (a) PROHIBITIONS AND EXCEPTIONS.— 

19 (1) PROHIBITIONS.—For the purpose of imple20 menting the policies set forth in section 832, the 

21 President shall issue regulations prohibiting any 

22 United States person, with respect to that person’s 

23 activities in the interstate or foreign commerce of 

24 the United States, from taking or knowingly agree25 ing to take any of the following actions with intent 


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1 to comply with, further, or support any boycott fos2 tered or imposed by any foreign country, against a 

3 country which is friendly to the United States and 

4 which is not itself the object of any form of boycott 

5 pursuant to United States law or regulation: 

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

10 with any national or resident of the boycotted 

11 country, or with any other person, pursuant to 

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

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

17 boycotted country, with any national or resident 

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

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

25 basis of race, religion, sex, or national origin of 


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1 that person or of any owner, officer, director, or 

2 employee of such person. 

3 (C) Furnishing information with respect to 

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

5 United States person or of any owner, officer, 

6 director, or employee of such person. 

7 (D) Furnishing information, or requesting 

8 the furnishing of information, about whether 

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

10 any business relationship (including a relation11 ship by way of sale, purchase, legal or commer12 cial representation, shipping or other transport, 

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

14 boycotted country, with any business concern 

15 organized under the laws of the boycotted coun16 try, with any national or resident of the boy17 cotted country, or with any other person which 

18 is known or believed to be restricted from hav19 ing any business relationship with or in the boy20 cotting country. Nothing in this subparagraph 

21 shall prohibit the furnishing of normal business 

22 information in a commercial context as defined 

23 by the Secretary. 

24 (E) Furnishing information about whether 

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1 tions to, or is otherwise associated with or in2 volved in the activities of any charitable or fra3 ternal organization which supports the boy4 cotted country. 

5 (F) Paying, honoring, confirming, or other6 wise implementing a letter of credit which con7 tains any condition or requirement compliance 

8 with which is prohibited by regulations issued 

9 pursuant to this paragraph, and no United 

10 States person shall, as a result of the applica11 tion of this paragraph, be obligated to pay or 

12 otherwise honor or implement such letter of 

13 credit. 

14 (2) EXCEPTIONS.—Regulations issued pursuant 

15 to paragraph (1) shall provide exceptions for— 

16 (A) complying or agreeing to comply with 

17 requirements— 

18 (i) prohibiting the import of goods or 

19 services from the boycotted country or 

20 goods produced or services provided by any 

21 business concern organized under the laws 

22 of the boycotted country or by nationals or 

23 residents of the boycotted country; or 

24 (ii) prohibiting the shipment of goods 

25 to the boycotting country on a carrier of 


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1 the boycotted country, or by a route other 

2 than that prescribed by the boycotting 

3 country or the recipient of the shipment; 

4 (B) complying or agreeing to comply with 

5 import and shipping document requirements 

6 with respect to the country of origin, the name 

7 of the carrier and route of shipment, the name 

8 of the supplier of the shipment or the name of 

9 the provider of other services, except that no in10 formation knowingly furnished or conveyed in 

11 response to such requirements may be stated in 

12 negative, blacklisting, or similar exclusionary 

13 terms, other than with respect to carriers or 

14 route of shipment as may be permitted by such 

15 regulations in order to comply with pre16 cautionary requirements protecting against war 

17 risks and confiscation; 

18 (C) complying or agreeing to comply in the 

19 normal course of business with the unilateral 

20 and specific selection by a boycotting country, 

21 or national or resident thereof, of carriers, in22 surers, suppliers of services to be performed 

23 within the boycotting country or specific goods 

24 which, in the normal course of business, are 


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1 identifiable by source when imported into the 

2 boycotting country; 

3 (D) complying or agreeing to comply with 

4 export requirements of the boycotting country 

5 relating to shipments or transshipments of ex6 ports to the boycotted country, to any business 

7 concern of or organized under the laws of the 

8 boycotted country, or to any national or resi9 dent of the boycotted country; 

10 (E) compliance by an individual or agree11 ment by an individual to comply with the immi12 gration or passport requirements of any country 

13 with respect to such individual or any member 

14 of such individual’s family or with requests for 

15 information regarding requirements of employ16 ment of such individual within the boycotting 

17 country; and 

18 (F) compliance by a United States person 

19 resident in a foreign country or agreement by 

20 such person to comply with the laws of that 

21 country with respect to his activities exclusively 

22 therein, and such regulations may contain ex23 ceptions for such resident complying with the 

24 laws or regulations of that foreign country gov25 erning imports into such country of 


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1 trademarked, trade named, or similarly specifi2 cally identifiable products, or components of 

3 products for his own use, including the per4 formance of contractual services within that 

5 country, as may be defined by such regulations. 

6 (3) SPECIAL RULES.—Regulations issued pur7 suant to paragraphs (2)(C) and (2)(F) shall not pro8 vide exceptions from paragraphs (1)(B) and (1)(C). 

9 (4) RULE OF CONSTRUCTION.—Nothing in this 

10 subsection may be construed to supersede or limit 

11 the operation of the antitrust or civil rights laws of 

12 the United States. 

13 (5) APPLICATION.—This section shall apply to 

14 any transaction or activity undertaken, by or 

15 through a United States person or any other person, 

16 with intent to evade the provisions of this section as 

17 implemented by the regulations issued pursuant to 

18 this subsection, and such regulations shall expressly 

19 provide that the exceptions set forth in paragraph 

20 (2) shall not permit activities or agreements (ex21 pressed or implied by a course of conduct, including 

22 a pattern of responses) otherwise prohibited, which 

23 are not within the intent of such exceptions. 

24 (b) FOREIGN POLICY CONTROLS.— 


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1 (1) IN GENERAL.—In addition to the regula2 tions issued pursuant to subsection (a), regulations 

3 issued under subtitle A to carry out the policies set 

4 forth in section 812(1)(D) shall implement the poli5 cies set forth in this section. 

6 (2) REQUIREMENTS.—Such regulations shall 

7 require that any United States person receiving a re8 quest for the furnishing of information, the entering 

9 into or implementing of agreements, or the taking of 

10 any other action referred to in subsection (a) shall 

11 report that fact to the Secretary, together with such 

12 other information concerning such request as the 

13 Secretary may require for such action as the Sec14 retary considers appropriate for carrying out the 

15 policies of that section. Such person shall also report 

16 to the Secretary whether such person intends to 

17 comply and whether such person has complied with 

18 such request. Any report filed pursuant to this para19 graph shall be made available promptly for public in20 spection and copying, except that information re21 garding the quantity, description, and value of any 

22 goods or technology to which such report relates 

23 may be kept confidential if the Secretary determines 

24 that disclosure thereof would place the United States 

25 person involved at a competitive disadvantage. The 


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1 Secretary shall periodically transmit summaries of 

2 the information contained in such reports to the Sec3 retary of State for such action as the Secretary of 

4 State, in consultation with the Secretary, considers 

5 appropriate for carrying out the policies set forth in 

6 section 832. 

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

8 the regulations issued pursuant thereto shall preempt any 

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

10 District of Columbia, or any of the territories or posses11 sions of the United States, or of any governmental subdivi12 sion thereof, which law, rule, or regulation pertains to par13 ticipation in, compliance with, implementation of, or the 

14 furnishing of information regarding restrictive trade prac15 tices or boycotts fostered or imposed by foreign countries 

16 against other countries friendly to the United States. 

17 SEC. 834. ENFORCEMENT. 

18 (a) CRIMINAL PENALTY.—A person who willfully 

19 commits, willfully attempts to commit, or willfully con20 spires to commit, or aids or abets in the commission of, 

21 an unlawful act section 833— 

22 (1) shall, upon conviction, be fined not more 

23 than $1,000,000; or 

24 (2) if a natural person, may be imprisoned for 

25 not more than 20 years, or both. 


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1 (b) CIVIL PENALTIES.—The President may impose 

2 the following civil penalties on a person who violates sec3 tion 833 or any regulation issued under this subtitle: 

4 (1) A fine of not more than $300,000 or an 

5 amount that is twice the value of the transaction 

6 that is the basis of the violation with respect to 

7 which the penalty is imposed, whichever is greater. 

8 (2) Revocation of a license issued under title I 

9 to the person. 

10 (3) A prohibition on the person’s ability to ex11 port, reexport, or transfer any items controlled 

12 under subtitle A. 

13 (c) PROCEDURES.—Any civil penalty or administra14 tive sanction (including any suspension or revocation of 

15 authority to export) under this section may be imposed 

16 only after notice and opportunity for an agency hearing 

17 on the record in accordance with sections 554 through 557 

18 of title 5, United States Code, and shall be subject to judi19 cial review in accordance with chapter 7 of such title. 

20 (d) STANDARDS FOR LEVELS OF CIVIL PENALTY.— 

21 The President may by regulation provide standards for es22 tablishing levels of civil penalty under this section based 

23 upon factors such as the seriousness of the violation, the 

24 culpability of the violator, and the violator’s record of co25 operation with the Government in disclosing the violation. 


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1 Subtitle C—Sanctions Regarding 

2 Missile Proliferation and Chem3 ical and Biological Weapons 

4 Proliferation 

5 SEC. 841. MISSILE PROLIFERATION CONTROL VIOLATIONS. 

6 (a) VIOLATIONS BY UNITED STATES PERSONS.— 

7 (1) SANCTIONS.— 

8 (A) SANCTIONABLE ACTIVITY.—The Presi9 dent shall impose the applicable sanctions de10 scribed in subparagraph (B) if the President 

11 determines that a United States person know12 ingly— 

13 (i) exports, reexports, or transfers of 

14 any item on the MTCR Annex, in violation 

15 of the provisions of section 38 (22 U.S.C. 

16 2778) or chapter 7 of the Arms Export 

17 Control Act, subtitle A, or any regulations 

18 or orders issued under any such provisions; 

19 or 

20 (ii) conspires to or attempts to engage 

21 in such export, reexport, or transfer. 

22 (B) SANCTIONS.—The sanctions that apply 

23 to a United States person under subparagraph 

24 (A) are the following: 


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1 (i) If the item on the MTCR Annex 

2 involved in the export, reexport, or transfer 

3 is missile equipment or technology within 

4 category II of the MTCR Annex, then the 

5 President shall deny to such United States 

6 person, for a period of 2 years, licenses for 

7 the transfer of missile equipment or tech8 nology controlled under subtitle A. 

9 (ii) If the item on the MTCR Annex 

10 involved in the export, reexport, or transfer 

11 is missile equipment or technology within 

12 category I of the MTCR Annex, then the 

13 President shall deny to such United States 

14 person, for a period of not less than 2 

15 years, all licenses for items the transfer of 

16 which is controlled under subtitle A. 

17 (2) DISCRETIONARY SANCTIONS.—In the case 

18 of any determination referred to in paragraph (1), 

19 the President may pursue any other appropriate 

20 penalties under section 820. 

21 (3) WAIVER.—The President may waive the im22 position of sanctions under paragraph (1) on a per23 son with respect to a product or service if the Presi24 dent certifies to the Congress that— 


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1 (A) the product or service is essential to 

2 the national security of the United States; and 

3 (B) such person is a sole source supplier of 

4 the product or service, the product or service is 

5 not available from any alternative reliable sup6 plier, and the need for the product or service 

7 cannot be met in a timely manner by improved 

8 manufacturing processes or technological devel9 opments. 

10 (b) TRANSFERS OF MISSILE EQUIPMENT OR TECH11 NOLOGY BY FOREIGN PERSONS.— 

12 (1) SANCTIONS.— 

13 (A) SANCTIONABLE ACTIVITY.—Subject to 

14 paragraphs (3) through (7), the President shall 

15 impose the applicable sanctions under subpara16 graph (B) on a foreign person if the Presi17 dent— 

18 (i) determines that a foreign person 

19 knowingly— 

20 (I) exports, reexports, or trans21 fers any MTCR equipment or tech22 nology that contributes to the design, 

23 development, or production of missiles 

24 in a country that is not an MTCR ad25 herent and would be, if it were United 


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1 States-origin equipment or technology, 

2 subject to the jurisdiction of the 

3 United States under subtitle A; 

4 (II) conspires to or attempts to 

5 engage in such export, reexport, or 

6 transfer; or 

7 (III) facilitates such export, reex8 port, or transfer by any other person; 

9 or 

10 (ii) has made a determination with re11 spect to the foreign person under section 

12 73(a) of the Arms Export Control Act. 

13 (B) SANCTIONS.—The sanctions that apply 

14 to a foreign person under subparagraph (A) are 

15 the following: 

16 (i) If the item involved in the export, 

17 reexport, or transfer is within category II 

18 of the MTCR Annex, then the President 

19 shall deny, for a period of 2 years, licenses 

20 for the transfer to such foreign person of 

21 missile equipment or technology the trans22 fer of which is controlled under subtitle A. 

23 (ii) If the item involved in the export, 

24 reexport, or transfer is within category I of 

25 the MTCR Annex, then the President shall 


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1 deny, for a period of not less than 2 years, 

2 licenses for the transfer to such foreign 

3 person of items the transfer of which is 

4 controlled under subtitle A. 

5 (2) INAPPLICABILITY WITH RESPECT TO MTCR 

6 ADHERENTS.—Paragraph (1) does not apply with 

7 respect to— 

8 (A) any export, reexport, or transfer that 

9 is authorized by the laws of an MTCR adher10 ent, if such authorization is not obtained by 

11 misrepresentation or fraud; or 

12 (B) any export, reexport, or transfer of an 

13 item to an end user in a country that is an 

14 MTCR adherent. 

15 (3) EFFECT OF ENFORCEMENT ACTIONS BY

16 MTCR ADHERENTS.—Sanctions set forth in para17 graph (1) may not be imposed under this subsection 

18 on a person with respect to acts described in such 

19 paragraph or, if such sanctions are in effect against 

20 a person on account of such acts, such sanctions 

21 shall be terminated, if an MTCR adherent is taking 

22 judicial or other enforcement action against that 

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1 ent to be innocent of wrongdoing with respect to 

2 such acts. 

3 (4) WAIVER AND REPORT TO CONGRESS.— 

4 (A) WAIVER AUTHORITY.—The President 

5 may waive the application of paragraph (1) to 

6 a foreign person if the President determines 

7 that such waiver is essential to the national se8 curity of the United States. 

9 (B) NOTIFICATION AND REPORT TO CON10 GRESS.—In the event that the President decides 

11 to apply the waiver described in subparagraph 

12 (A), the President shall so notify the appro13 priate congressional committees not less than 

14 20 working days before issuing the waiver. 

15 Such notification shall include a report fully ar16 ticulating the rationale and circumstances 

17 which led the President to apply the waiver. 

18 (5) ADDITIONAL WAIVER.—The President may 

19 waive the imposition of sanctions under paragraph 

20 (1) on a person with respect to a product or service 

21 if the President certifies to the appropriate congres22 sional committees that— 

23 (A) the product or service is essential to 

24 the national security of the United States; and 


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1 (B) such person is a sole source supplier of 

2 the product or service, the product or service is 

3 not available from any alternative reliable sup4 plier, and the need for the product or service 

5 cannot be met in a timely manner by improved 

6 manufacturing processes or technological devel7 opments. 

8 (6) EXCEPTIONS.—The President shall not 

9 apply the sanction under this subsection prohibiting 

10 the importation of the products of a foreign per11 son— 

12 (A) in the case of procurement of defense 

13 articles or defense services— 

14 (i) under existing contracts or sub15 contracts, including the exercise of options 

16 for production quantities to satisfy require17 ments essential to the national security of 

18 the United States; 

19 (ii) if the President determines that 

20 the person to which the sanctions would be 

21 applied is a sole source supplier of the de22 fense articles or defense services, that the 

23 defense articles or defense services are es24 sential to the national security of the 


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1 United States, and that alternative sources 

2 are not readily or reasonably available; or 

3 (iii) if the President determines that 

4 such articles or services are essential to the 

5 national security of the United States 

6 under defense coproduction agreements or 

7 NATO Programs of Cooperation; 

8 (B) to products or services provided under 

9 contracts entered into before the date on which 

10 the President publishes his intention to impose 

11 the sanctions; or 

12 (C) to— 

13 (i) spare parts; 

14 (ii) component parts, but not finished 

15 products, essential to United States prod16 ucts or production; 

17 (iii) routine services and maintenance 

18 of products, to the extent that alternative 

19 sources are not readily or reasonably avail20 able; or 

21 (iv) information and technology essen22 tial to United States products or produc23 tion. 

24 (c) DEFINITIONS.—In this section: 


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1 (1) APPROPRIATE CONGRESSIONAL COMMIT2 TEES.—The term ‘‘appropriate congressional com3 mittees’’ means— 

4 (A) the Committee on Foreign Affairs of 

5 the House of Representatives; and 

6 (B) the Committee on Foreign Relations 

7 and the Committee on Banking, Housing, and 

8 Urban Affairs of the Senate. 

9 (2) DEFENSE ARTICLES; DEFENSE SERVICES.— 

10 The terms ‘‘defense articles’’ and ‘‘defense services’’ 

11 mean those items on the United States Munitions 

12 List as defined in section 47(7) of the Arms Export 

13 Control Act (22 U.S.C. 2794 note). 

14 (3) MISSILE.—The term ‘‘missile’’ means a cat15 egory I system as defined in the MTCR Annex. 

16 (4) MISSILE TECHNOLOGY CONTROL REGIME; 

17 MTCR.—The term ‘‘Missile Technology Control Re18 gime’’ or ‘‘MTCR’’ means the policy statement, be19 tween the United States, the United Kingdom, the 

20 Federal Republic of Germany, France, Italy, Can21 ada, and Japan, announced on April 16, 1987, to re22 strict sensitive missile-relevant transfers based on 

23 the MTCR Annex, and any amendments thereto. 

24 (5) MTCR ADHERENT.—The term ‘‘MTCR ad25 herent’’ means a country that participates in the 


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1 MTCR or that, pursuant to an international under2 standing to which the United States is a party, con3 trols MTCR equipment or technology in accordance 

4 with the criteria and standards set forth in the 

5 MTCR. 

6 (6) MTCR ANNEX.—The term ‘‘MTCR Annex’’ 

7 means the Guidelines and Equipment and Tech8 nology Annex of the MTCR, and any amendments 

9 thereto. 

10 (7) MISSILE EQUIPMENT OR TECHNOLOGY; 

11 MTCR EQUIPMENT OR TECHNOLOGY.—The terms 

12 ‘‘missile equipment or technology’’ and ‘‘MTCR 

13 equipment or technology’’ mean those items listed in 

14 category I or category II of the MTCR Annex. 

15 SEC. 842. CHEMICAL AND BIOLOGICAL WEAPONS PRO16 LIFERATION SANCTIONS. 

17 (a) IMPOSITION OF SANCTIONS.— 

18 (1) DETERMINATION BY THE PRESIDENT.—Ex19 cept as provided in subsection (b)(2), the President 

20 shall impose the sanction described in subsection (c) 

21 if the President determines that a foreign person has 

22 knowingly and materially contributed— 

23 (A) through the export from the United 

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1 diction of the United States under this subtitle; 

2 or 

3 (B) through the export from any other 

4 country of any item that would be, if they were 

5 United States goods or technology, subject to 

6 the jurisdiction of the United States under this 

7 subtitle, 

8 to the efforts by any foreign country, project, or en9 tity described in paragraph (2) to use, develop, 

10 produce, stockpile, or otherwise acquire chemical or 

11 biological weapons. 

12 (2) COUNTRIES, PROJECTS, OR ENTITIES RE13 CEIVING ASSISTANCE.—Paragraph (1) applies in the 

14 case of— 

15 (A) any foreign country that the President 

16 determines has, at any time after January 1, 

17 1980— 

18 (i) used chemical or biological weap19 ons in violation of international law; 

20 (ii) used lethal chemical or biological 

21 weapons against its own nationals; or 

22 (iii) made substantial preparations to 

23 engage in the activities described in clause 

24 (i) or (ii); 


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1 (B) any foreign country whose government 

2 is determined for purposes of section 914(c) to 

3 be a government that has repeatedly provided 

4 support for acts of international terrorism; or 

5 (C) any other foreign country, project, or 

6 entity designated by the President for purposes 

7 of this section. 

8 (3) PERSONS AGAINST WHICH SANCTIONS ARE

9 TO BE IMPOSED.—A sanction shall be imposed pur10 suant to paragraph (1) on— 

11 (A) the foreign person with respect to 

12 which the President makes the determination 

13 described in that paragraph; 

14 (B) any successor entity to that foreign 

15 person; and 

16 (C) any foreign person that is a parent, 

17 subsidiary, or affiliate of that foreign person if 

18 that parent, subsidiary, or affiliate knowingly 

19 assisted in the activities which were the basis of 

20 that determination. 

21 (b) CONSULTATIONS WITH AND ACTIONS BY FOR22 EIGN GOVERNMENT OF JURISDICTION.— 

23 (1) CONSULTATIONS.—If the President makes 

24 the determinations described in subsection (a)(1) 

25 with respect to a foreign person, the Congress urges 


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1 the President to initiate consultations immediately 

2 with the government with primary jurisdiction over 

3 that foreign person with respect to the imposition of 

4 a sanction pursuant to this section. 

5 (2) ACTIONS BY GOVERNMENT OF JURISDIC6 TION.—In order to pursue such consultations with 

7 that government, the President may delay imposition 

8 of a sanction pursuant to this section for a period 

9 of up to 90 days. Following such consultations, the 

10 President shall impose the sanction unless the Presi11 dent determines and certifies to the appropriate con12 gressional committees that the Government has 

13 taken specific and effective actions, including appro14 priate penalties, to terminate the involvement of the 

15 foreign person in the activities described in sub16 section (a)(1). The President may delay imposition 

17 of the sanction for an additional period of up to 90 

18 days if the President determines and certifies to the 

19 Congress that the government is in the process of 

20 taking the actions described in the preceding sen21 tence. 

22 (3) REPORT TO CONGRESS.—The President 

23 shall report to the appropriate congressional commit24 tees, not later than 90 days after making a deter25 mination under subsection (a)(1), on the status of 


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1 consultations with the appropriate government under 

2 this subsection, and the basis for any determination 

3 under paragraph (2) of this subsection that such 

4 government has taken specific corrective actions. 

5 (c) SANCTION.— 

6 (1) DESCRIPTION OF SANCTION.—The sanction 

7 to be imposed pursuant to subsection (a)(1) is, ex8 cept as provided that the United States Government 

9 shall not procure, or enter into any contract for the 

10 procurement of, any goods or services from any per11 son described in subsection (a)(3). 

12 (2) EXCEPTIONS.—The President shall not be 

13 required to apply or maintain a sanction under this 

14 section— 

15 (A) in the case of procurement of defense 

16 articles or defense services— 

17 (i) under existing contracts or sub18 contracts, including the exercise of options 

19 for production quantities to satisfy United 

20 States operational military requirements; 

21 (ii) if the President determines that 

22 the person or other entity to which the 

23 sanctions would otherwise be applied is a 

24 sole source supplier of the defense articles 

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1 cles or defense services are essential, and 

2 that alternative sources are not readily or 

3 reasonably available; or 

4 (iii) if the President determines that 

5 such articles or services are essential to the 

6 national security under defense coproduc7 tion agreements; 

8 (B) to products or services provided under 

9 contracts entered into before the date on which 

10 the President publishes his intention to impose 

11 sanctions; 

12 (C) to— 

13 (i) spare parts; 

14 (ii) component parts, but not finished 

15 products, essential to United States prod16 ucts or production; or 

17 (iii) routine servicing and mainte18 nance of products, to the extent that alter19 native sources are not readily or reason20 ably available; 

21 (D) to information and technology essen22 tial to United States products or production; or 

23 (E) to medical or other humanitarian 

24 items. 


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1 (d) TERMINATION OF SANCTIONS.—A sanction im2 posed pursuant to this section shall apply for a period of 

3 at least 12 months following the imposition of one sanction 

4 and shall cease to apply thereafter only if the President 

5 determines and certifies to the appropriate congressional 

6 committees that reliable information indicates that the 

7 foreign person with respect to which the determination 

8 was made under subsection (a)(1) has ceased to aid or 

9 abet any foreign government, project, or entity in its ef10 forts to acquire chemical or biological weapons capability 

11 as described in that subsection. 

12 (e) WAIVER.— 

13 (1) CRITERION FOR WAIVER.—The President 

14 may waive the application of any sanction imposed 

15 on any person pursuant to this section if the Presi16 dent determines and certifies to the appropriate con17 gressional committees that such waiver is important 

18 to the national security interests of the United 

19 States. 

20 (2) NOTIFICATION OF AND REPORT TO CON21 GRESS.—If the President decides to exercise the 

22 waiver authority provided in paragraph (1), the 

23 President shall so notify the appropriate congres24 sional committees 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 which led the President to exercise the 

3 waiver authority. 

4 (f) DEFINITIONS.—In this section: 

5 (1) APPROPRIATE CONGRESSIONAL COMMIT6 TEES.—The term ‘‘appropriate congressional com7 mittees’’ means— 

8 (A) the Committee on Foreign Affairs of 

9 the House of Representatives; and 

10 (B) the Committee on Foreign Relations 

11 and the Committee on Banking, Housing, and 

12 Urban Affairs of the Senate. 

13 (2) DEFENSE ARTICLES; DEFENSE SERVICES.— 

14 The terms ‘‘defense articles’’ and ‘‘defense services’’ 

15 mean those items on the United States Munitions 

16 List or are otherwise controlled under the Arms Ex17 port Control Act. 

18 Subtitle D—Administrative 

19 Authorities 

20 SEC. 851. UNDER SECRETARY OF COMMERCE FOR INDUS21 TRY AND SECURITY. 

22 (a) APPOINTMENT.— 

23 (1) IN GENERAL.—The President shall appoint, 

24 by and with the advice and consent of the Senate, 

25 an Under Secretary of Commerce for Industry and 


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1 Security who shall carry out all the functions of the 

2 Secretary under this title and such other provisions 

3 of law that relate to the implementation of the dual4 use export system. 

5 (2) ASSISTANT SECRETARIES OF COMMERCE.— 

6 The President shall appoint, by and with the advice 

7 and consent of the Senate, two Assistant Secretaries 

8 of Commerce to assist the Under Secretary in car9 rying out the functions described in paragraph (1). 

10 (b) DELEGATION.— 

11 (1) TO SECRETARY.—The President shall con12 tinue the delegation of functions to the Secretary to 

13 administer and enforce the export control system au14 thorized by this title that were delegated to the Sec15 retary as of the day before the date of the enact16 ment of this Act. 

17 (2) TO BUREAU OF INDUSTRY AND SECU18 RITY.—The Secretary shall further delegate imple19 mentation of the authorities set forth in this title to 

20 the Bureau of Industry and Security within the De21 partment of Commerce. 

Æ 


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