`[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 1712 Placed on Calendar Senate (PCS)]





                                                       Calendar No. 311

106th CONGRESS

  1st Session

                                S. 1712

                          [Report No. 106-180]

_______________________________________________________________________

                                 A BILL

    To provide authority to control exports, and for other purposes.

_______________________________________________________________________

                            October 8, 1999

                 Read twice and placed on the calendar





                                                       Calendar No. 311
106th CONGRESS
  1st Session
                                S. 1712

                          [Report No. 106-180]

    To provide authority to control exports, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 8, 1999

 Mr. Gramm, from the Committee on Banking, Housing, and Urban Affairs, 
 reported the following original bill; which was read twice and placed 
                            on the calendar

_______________________________________________________________________

                                 A BILL


 
    To provide authority to control exports, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Export 
Administration Act of 1999''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
                       TITLE I--GENERAL AUTHORITY

Sec. 101. Commerce Control List.
Sec. 102. Delegation of authority.
Sec. 103. Public information; consultation requirements.
Sec. 104. Right of export.
Sec. 105. Export control advisory committees.
Sec. 106. Prohibition on charging fees.
              TITLE II--NATIONAL SECURITY EXPORT CONTROLS

                  Subtitle A--Authority and Procedures

Sec. 201. Authority for national security export controls.
Sec. 202. National Security Control List.
Sec. 203. Country tiers.
Sec. 204. Incorporated parts and components.
Sec. 205. Petition process for modifying export status.
        Subtitle B--Foreign Availability and Mass-Market Status

Sec. 211. Determination of foreign availability and mass-market status.
Sec. 212. Presidential set-aside of foreign availability determination.
Sec. 213. Presidential set-aside of mass-market status determination.
Sec. 214. Office of Technology Evaluation.
               TITLE III--FOREIGN POLICY EXPORT CONTROLS

Sec. 301. Authority for foreign policy export controls.
Sec. 302. Procedures for imposing controls.
Sec. 303. Criteria for foreign policy export controls.
Sec. 304. Presidential report before imposition of control.
Sec. 305. Imposition of controls.
Sec. 306. Deferral authority.
Sec. 307. Review, renewal, and termination.
Sec. 308. Termination of controls under this title.
Sec. 309. Compliance with international obligations.
Sec. 310. Designation of countries supporting international terrorism.
TITLE IV--EXEMPTION FOR AGRICULTURAL COMMODITIES, MEDICINE, AND MEDICAL 
                                SUPPLIES

Sec. 401. Exemption for agricultural commodities, medicine, and medical 
                            supplies.
Sec. 402. Termination of export controls required by law.
Sec. 403. Exclusions.
    TITLE V--PROCEDURES FOR EXPORT LICENSES AND INTERAGENCY DISPUTE 
                               RESOLUTION

Sec. 501. Export license procedures.
Sec. 502. Interagency dispute resolution process.
TITLE VI--INTERNATIONAL ARRANGEMENTS; FOREIGN BOYCOTTS; SANCTIONS; AND 
                              ENFORCEMENT

Sec. 601. International arrangements.
Sec. 602. Foreign boycotts.
Sec. 603. Penalties.
Sec. 604. Multilateral export control regime violation sanctions.
Sec. 605. Missile proliferation control violations.
Sec. 606. Chemical and biological weapons proliferation sanctions.
Sec. 607. Enforcement.
Sec. 608. Administrative procedure.
          TITLE VII--EXPORT CONTROL AUTHORITY AND REGULATIONS

Sec. 701. Export control authority and regulations.
Sec. 702. Confidentiality of information.
                  TITLE VIII--MISCELLANEOUS PROVISIONS

Sec. 801. Annual and periodic reports.
Sec. 802. Technical and conforming amendments.
Sec. 803. Savings provisions.

SEC. 2. DEFINITIONS.

     In this Act:
            (1) Affiliate.--The term ``affiliate'' includes both 
        governmental entities and commercial entities that are 
        controlled in fact by the government of a country.
            (2) Agriculture commodity.--The term ``agriculture 
        commodity'' means any agricultural commodity, food, fiber, or 
        livestock (including livestock, as defined in section 602(2) of 
        the Emergency Livestock Feed Assistance Act of 1988 (title VI 
        of the Agricultural Act of 1949 (7 U.S.C. 1471(2))), and 
        including insects), and any product thereof.
            (3) Control or controlled.--The terms ``control'' and 
        ``controlled'' mean any requirement, condition, authorization, 
        or prohibition on the export or reexport of an item.
            (4) Control list.--The term ``Control List'' means the 
        Commerce Control List established under section 101.
            (5) Controlled country.--The term ``controlled country'' 
        means a country with respect to which exports are controlled 
        under section 201 or 301.
            (6) Controlled item.--The term ``controlled item'' means an 
        item the export of which is controlled under this Act.
            (7) Country.--The term ``country'' means a sovereign 
        country or an autonomous customs territory.
            (8) Country supporting international terrorism.--The term 
        ``country supporting international terrorism'' means a country 
        designated by the Secretary of State pursuant to section 310.
            (9) Department.--The term ``Department'' means the 
        Department of Commerce.
            (10) Export.--
                    (A) The term ``export'' means--
                            (i) an actual shipment, transfer, or 
                        transmission of an item out of the United 
                        States;
                            (ii) a transfer to any person of an item 
                        either within the United States or outside of 
                        the United States with the knowledge or intent 
                        that the item will be shipped, transferred, or 
                        transmitted to an unauthorized recipient 
                        outside the United States; and
                            (iii) a transfer of an item in the United 
                        States to an embassy or affiliate of a country, 
                        which shall be considered an export to that 
                        country.
                    (B) The term includes a reexport.
            (11) Foreign availability status.--The term ``foreign 
        availability status'' means the status described in section 
        211(d)(1).
            (12) Foreign person.--The term ``foreign person'' means--
                    (A) an individual who is not--
                            (i) a United States citizen;
                            (ii) an alien lawfully admitted for 
                        permanent residence to the United States; or
                            (iii) a protected individual as defined in 
                        section 274B(a)(3) of the Immigration and 
                        Nationality Act. (8 U.S.C. 1324b(a)(3));
                    (B) any corporation, partnership, business 
                association, society, trust, organization, or other 
                nongovernmental entity created or organized under the 
                laws of a foreign country or that has its principal 
                place of business outside the United States; and
                    (C) any governmental entity of a foreign country.
            (13) Item.--
                    (A) In general.--The term ``item'' means any good, 
                service, or technology.
                    (B) Other definitions.--In this paragraph:
                            (i) Good.--The term ``good'' means any 
                        article, natural or manmade substance, 
                        material, supply or manufactured product, 
                        including inspection and test equipment, 
                        including source code, and excluding technical 
                        data.
                            (ii) Technology.--The term ``technology'' 
                        means specific information that is necessary 
                        for the development, production, or use of an 
                        item, and takes the form of technical data or 
                        technical assistance.
                            (iii) Service.--The term ``service'' means 
                        any act of assistance, help or aid.
            (14) Mass-market status.--The term ``mass-market status'' 
        means the status described in section 211(d)(2).
            (15) Multilateral export control regime.--The term 
        ``multilateral export control regime'' means an international 
        agreement or arrangement among two or more countries, including 
        the United States, a purpose of which is to coordinate national 
        export control policies of its members regarding certain items. 
        The term includes regimes such as the Australia Group, the 
        Wassenaar Arrangement, the Missile Technology Control Regime 
        (MTCR), and the Nuclear Suppliers' Group Dual Use Arrangement.
            (16) National security control list.--The term ``National 
        Security Control List'' means the list established under 
        section 202(a).
            (17) Person.--The term ``person'' includes--
                    (A) any individual, or partnership, corporation, 
                business association, society, trust, organization, or 
                any other group created or organized under the laws of 
                a country; and
                    (B) any government, or any governmental entity.
            (18) Reexport.--The term ``reexport'' means the shipment, 
        transfer, transshipment, or diversion of items from one foreign 
        country to another.
            (19) Secretary.--The term ``Secretary'' means the Secretary 
        of Commerce.
            (20) United states.--The term ``United States'' means the 
        States of the United States, the District of Columbia, and any 
        commonwealth, territory, dependency, or possession of the 
        United States, and includes the outer Continental Shelf, as 
        defined in section 2(a) of the Outer Continental Shelf Lands 
        Act (42 U.S.C. 1331(a)).
            (21) United states person.--The term ``United States 
        person'' means--
                    (A) any United States citizen, resident, or 
                national (other than an individual resident outside the 
                United States who is employed by a person other than a 
                United States person);
                    (B) any domestic concern (including any permanent 
                domestic establishment of any foreign concern); and
                    (C) any foreign subsidiary or affiliate (including 
                any permanent foreign establishment) of any domestic 
                concern which is controlled in fact by such domestic 
                concern, as determined under regulations prescribed by 
                the President.

                       TITLE I--GENERAL AUTHORITY

SEC. 101. COMMERCE CONTROL LIST.

    (a) In General.--Under such conditions as the Secretary may impose, 
consistent with the provisions of this Act, the Secretary--
            (1) shall establish and maintain a Commerce Control List 
        (in this Act referred to as the ``Control List'') consisting of 
        items the export of which are subject to licensing or other 
        authorization or requirement; and
            (2) may require any type of license, or other 
        authorization, including recordkeeping and reporting, 
        appropriate to the effective and efficient implementation of 
        this Act with respect to the export of an item on the Control 
        List.
    (b) Types of License or Other Authorization.--The types of license 
or other authorization referred to in subsection (a)(2) include the 
following:
            (1) Specific exports.--A license that authorizes a specific 
        export.
            (2) Multiple exports.--A license that authorizes multiple 
        exports in lieu of a license for each such export.
            (3) Notification in lieu of license.-- A notification in 
        lieu of a license that authorizes a specific export or multiple 
        exports subject to the condition that the exporter file with 
        the Department advance notification of the intent to export in 
        accordance with regulations prescribed by the Secretary.
            (4) License exception.--Authority to export an item on the 
        Control List without prior license or notification in lieu of a 
        license.
    (c) After-Market Service and Replacement Parts.--A license or other 
authorization to export an item under this Act shall not be required 
for an exporter to provide after-market service or replacement parts, 
to replace on a one-for-one basis parts that were in an item that was 
lawfully exported from the United States, unless--
            (1) the Secretary determines that such license or other 
        authorization is required to export such parts; or
            (2) the after-market service or replacement parts 
        materially enhance the capability of an item which was the 
        basis for the item being controlled.
    (d) Incidental Technology.--A license or other authorization to 
export an item under this Act includes authorization to export 
technology related to the item, if the level of the technology does not 
exceed the minimum necessary to install, repair, maintain, inspect, 
operate, or use the item.
    (e) Regulations.--The Secretary may prescribe such regulations as 
are necessary to carry out the provisions of this Act.

SEC. 102. DELEGATION OF AUTHORITY.

    (a) In General.--Except as provided in subsection (b) and subject 
to the provisions of this Act, the President may delegate the power, 
authority, and discretion conferred upon the President by this Act to 
such departments, agencies, and officials of the Government as the 
President considers appropriate.
    (b) Exceptions.--
            (1) Delegation to appointees confirmed by senate.--No 
        authority delegated to the President under this Act may be 
        delegated by the President to, or exercised by, any official of 
        any department or agency the head of which is not appointed by 
        the President, by and with the advice and consent of the 
        Senate.
            (2) Other limitations.--The President may not delegate or 
        transfer the President's power, authority, or discretion to 
        overrule or modify any recommendation or decision made by the 
        Secretary, the Secretary of Defense, or the Secretary of State 
        under this Act.

SEC. 103. PUBLIC INFORMATION; CONSULTATION REQUIREMENTS.

    (a) Public Information.--The Secretary shall keep the public fully 
informed of changes in export control policy and procedures instituted 
in conformity with this Act.
    (b) Consultation With Persons Affected.--The Secretary shall 
consult regularly with representatives of a broad spectrum of 
enterprises, labor organizations, and citizens interested in or 
affected by export controls in order to obtain their views on United 
States export control policy and the foreign availability or mass-
market status of controlled items.

SEC. 104. RIGHT OF EXPORT.

    No license or other authorization to export may be required under 
this Act, or under regulations issued under this Act, except to carry 
out the provisions of this Act.

SEC. 105. EXPORT CONTROL ADVISORY COMMITTEES.

    (a) Appointment.--Upon the Secretary's own initiative or upon the 
written request of representatives of a substantial segment of any 
industry which produces any items subject to export controls under this 
Act or under the International Emergency Economic Powers Act, or being 
considered for such controls, the Secretary may appoint export control 
advisory committees with respect to any such items. Each such committee 
shall consist of representatives of United States industry and 
Government, including the Department of Commerce and other appropriate 
departments and agencies of the Government. The Secretary shall permit 
the widest possible participation by the business community on the 
export control advisory committees.
    (b) Functions.--
            (1) In general.--Export control advisory committees 
        appointed under subsection (a) shall advise and assist the 
        Secretary, and any other department, agency, or official of the 
        Government carrying out functions under this Act, on actions 
        (including all aspects of controls imposed or proposed) 
        designed to carry out the provisions of this Act concerning the 
        items with respect to which such export control advisory 
        committees were appointed.
            (2) Other consultations.--Nothing in paragraph (1) shall 
        prevent the United States Government from consulting, at any 
        time, with any person representing an industry or the general 
        public, regardless of whether such person is a member of an 
        export control advisory committee. Members of the public shall 
        be given a reasonable opportunity, pursuant to regulations 
        prescribed by the Secretary, to present evidence to such 
        committees.
    (c) Reimbursement of Expenses.--Upon the request of any member of 
any export control advisory committee appointed under subsection (a), 
the Secretary may, if the Secretary determines it to be appropriate, 
reimburse such member for travel, subsistence, and other necessary 
expenses incurred by such member in connection with the duties of such 
member.
    (d) Chairperson.--Each export control advisory committee appointed 
under subsection (a) shall elect a chairperson, and shall meet at least 
every 3 months at the call of the chairperson, unless the chairperson 
determines, in consultation with the other members of the committee, 
that such a meeting is not necessary to achieve the purposes of this 
section. Each such committee shall be terminated after a period of 2 
years, unless extended by the Secretary for additional periods of 2 
years each. The Secretary shall consult with each such committee on 
such termination or extension of that committee.
    (e) Access to Information.--To facilitate the work of the export 
control advisory committees appointed under subsection (a), the 
Secretary, in conjunction with other departments and agencies 
participating in the administration of this Act, shall disclose to each 
such committee adequate information, consistent with national security, 
pertaining to the reasons for the export controls which are in effect 
or contemplated for the items or policies for which that committee 
furnishes advice. Information provided by the export control advisory 
committees shall not be subject to disclosure under section 552 of 
title 5, United States Code, and such information shall not be 
published or disclosed unless the Secretary determines that the 
withholding thereof is contrary to the national interest.

SEC. 106. PROHIBITION ON CHARGING FEES.

    No fee may be charged in connection with the submission or 
processing of an application for an export license under this Act.

              TITLE II--NATIONAL SECURITY EXPORT CONTROLS

                  Subtitle A--Authority and Procedures

SEC. 201. AUTHORITY FOR NATIONAL SECURITY EXPORT CONTROLS.

    (a) Authority.--
            (1) In general.--In order to carry out the purposes set 
        forth in subsection (b), the President may, in accordance with 
        the provisions of this Act, prohibit, curtail, or require a 
        license, or other authorization for the export of any item 
        subject to the jurisdiction of the United States or exported by 
        any person subject to the jurisdiction of the United States. 
        The President may also require recordkeeping and reporting with 
        respect to the export of such item.
            (2) Exercise of authority.--The authority contained in this 
        subsection shall be exercised by the Secretary, in consultation 
        with the Secretary of Defense, the intelligence agencies, and 
        such other departments and agencies as the Secretary considers 
        appropriate.
    (b) Purposes.--The purposes of national security export controls 
are the following:
            (1) To restrict the export of items that would contribute 
        to the military potential of countries so as to prove 
        detrimental to the national security of the United States or 
        its allies.
            (2) To stem the proliferation of weapons of mass 
        destruction, and the means to deliver them, and other 
        significant military capabilities by--
                    (A) leading international efforts to control the 
                proliferation of chemical and biological weapons, 
                nuclear explosive devices, missile delivery systems, 
                key-enabling technologies, and other significant 
                military capabilities;
                    (B) controlling involvement of United States 
                persons in, and contributions by United States persons 
                to, foreign programs intended to develop weapons of 
                mass destruction, missiles, and other significant 
                military capabilities, and the means to design, test, 
                develop, produce, stockpile, or use them; and
                    (C) implementing international treaties or other 
                agreements or arrangements concerning controls on 
                exports of designated items, reports on the production, 
                processing, consumption, and exports and imports of 
                such items, and compliance with verification programs.
            (3) To deter acts of international terrorism.
    (c) End Use and End User Controls.--Notwithstanding any other 
provision of this title, controls may be imposed, based on the end use 
or end user, on the export of any item, that could materially 
contribute to the proliferation of weapons of mass destruction or the 
means to deliver them.

SEC. 202. NATIONAL SECURITY CONTROL LIST.

    (a) Establishment of List.--
            (1) Establishment.--The Secretary shall establish and 
        maintain a National Security Control List as part of the 
        Control List.
            (2) Contents.--The National Security Control List shall be 
        composed of a list of items the export of which is controlled 
        for national security purposes under this title.
            (3) Identification of items for national security control 
        list.--The Secretary, with the concurrence of the Secretary of 
        Defense and in consultation with the head of any other 
        department or agency of the United States that the Secretary 
        considers appropriate, shall identify the items to be included 
        on the National Security Control List.
    (b) Risk Assessment.--
            (1) Requirement.--The Secretary shall, in establishing and 
        maintaining the National Security Control List, balance the 
        national security risks of not controlling the export of an 
        item against the economic costs of controlling the item, taking 
        into consideration the risk factors set forth in paragraph (2).
            (2) Risk factors.--The risk factors referred to in 
        paragraph (1), with respect to each item, are as follows:
                    (A) The characteristics of the item.
                    (B) The threat, if any, to the United States or the 
                national security interest of the United States from 
                the misuse or diversion of such item.
                    (C) The controllability of the item.
                    (D) Any other risk factor the Secretary deems 
                appropriate to consider.

SEC. 203. COUNTRY TIERS.

    (a) In General.--
            (1) Establishment and assignment.--In administering export 
        controls for national security purposes under this title, the 
        President shall, not later than 120 days after the date of 
        enactment of this Act--
                    (A) establish and maintain a country tiering system 
                in accordance with subsection (b); and
                    (B) based on the assessments required under 
                subsection (c), assign each country to a tier for each 
                item or group of items the export of which is 
                controlled for national security purposes under this 
                title.
            (2) Consultation.--The establishment and assignment of 
        country tiers under this section shall be made after 
        consultation with the Secretary, the Secretary of Defense, the 
        Secretary of State, the intelligence agencies, and such other 
        departments and agencies as the President considers 
        appropriate.
            (3) Redetermination and review of assignments.--The 
        President may redetermine the assignment of a country to a 
        particular tier at any time and shall review and, as the 
        President considers appropriate, reassign country tiers on an 
        on-going basis.
            (4) Effective date of tier assignment.-- An assignment of a 
        country to a particular tier shall take effect on the date on 
        which notice of the assignment is published in the Federal 
        Register.
    (b) Tiers.--
            (1) In general.--The President shall establish a country 
        tiering system consisting of 5 tiers for purposes of this 
        section, ranging from tier 1 through tier 5.
            (2) Range.--Countries that represent the lowest risk of 
        diversion or misuse of an item on the National Security Control 
        List shall be assigned to tier 1. Countries that represent the 
        highest risk of diversion or misuse of an item on the National 
        Security Control List shall be assigned to tier 5.
            (3) Other countries.--Countries that fall between the 
        lowest and highest risk to the national security interest of 
        the United States with respect to the risk of diversion or 
        misuse of an item on the National Security Control List shall 
        be assigned to tier 2, 3, or 4, respectively, based on the 
        assessments required under subsection (c).
    (c) Assessments.--The President shall make an assessment of each 
country in assigning a country tier taking into consideration the 
following risk factors:
            (1) The present and potential relationship of the country 
        with the United States.
            (2) The present and potential relationship of the country 
        with countries friendly to the United States and with countries 
        hostile to the United States.
            (3) The country's capabilities regarding chemical, 
        biological, and nuclear weapons and the country's membership 
        in, and level of compliance with, relevant multilateral export 
        control regimes.
            (4) The country's position regarding missile systems and 
        the country's membership in, and level of compliance with, 
        relevant multilateral export control regimes.
            (5) The country's other military capabilities and the 
        potential threat posed by the country to the United States or 
        its allies.
            (6) The effectiveness of the country's export control 
        system.
            (7) The level of the country's cooperation with United 
        States export control enforcement and other efforts.
            (8) The risk of export diversion by the country to a higher 
        tier country.
            (9) The designation of the country as a country supporting 
        international terrorism under section 310.

SEC. 204. INCORPORATED PARTS AND COMPONENTS.

    (a) Export of Items Containing Controlled Parts and Components.--
Controls may not be imposed under this title or any other provision of 
law on an item solely because the item contains parts or components 
subject to export controls under this title, if the parts or 
components--
            (1) are essential to the functioning of the item,
            (2) are customarily included in sales of the item in 
        countries other than controlled countries, and
            (3) comprise 25 percent or less of the total value of the 
        item,
        unless the item itself, if exported, would by virtue of the 
        functional characteristics of the item as a whole make a 
        significant contribution to the military or proliferation 
        potential of a controlled country or end user which would prove 
        detrimental to the national security of the United States.
    (b) Reexports of Foreign-Made Items Incorporating United States 
Controlled Content.--
            (1) In general.--No authority or permission may be required 
        under this title to reexport to a country (other than a country 
        designated as a country supporting international terrorism 
        pursuant to section 310) an item that is produced in a country 
        other than the United States and incorporates parts or 
        components that are subject to the jurisdiction of the United 
        States, if the value of the controlled United States content of 
        the item produced in such other country is 25 percent or less 
        of the total value of the item.
            (2) Reexport to certain terrorist countries.--No authority 
        or permission may be required under this title to reexport to a 
        country designated as a country supporting international 
        terrorism pursuant to section 310 an item that is produced in a 
        country other than the United States and incorporates parts or 
        components that are subject to the jurisdiction of the United 
        States, if the value of the controlled United States content of 
        the item produced in such other country is 10 percent or less 
        of the total value of the item.
            (3) Definition of controlled united states content.--For 
        purposes of this paragraph, the term ``controlled United States 
        content'' of an item means those parts or components that--
                    (A) are subject to the jurisdiction of the United 
                States;
                    (B) are incorporated into the item; and
                    (C) would, at the time of the reexport, require a 
                license under this title if exported from the United 
States to a country to which the item is to be reexported.

SEC. 205. PETITION PROCESS FOR MODIFYING EXPORT STATUS.

    (a) Establishment.--The Secretary shall establish a process for 
interested persons to petition the Secretary to change the status of an 
item on the National Security Control List.
    (b) Evaluations and Determinations.--Evaluations and determinations 
with respect to a petition filed pursuant to this section shall be made 
in accordance with the procedures set forth in section 202.

        Subtitle B--Foreign Availability and Mass-Market Status

SEC. 211. DETERMINATION OF FOREIGN AVAILABILITY AND MASS-MARKET STATUS.

    (a) In General.--The Secretary shall--
            (1) on a continuing basis,
            (2) upon a request from the Office of Technology 
        Evaluation, or
            (3) upon receipt of a petition filed by an interested 
        party,
review and determine the foreign availability and the mass-market 
status of any item the export of which is controlled under this title.
    (b) Petition and Consultation.--The Secretary shall establish a 
process for an interested party to petition the Secretary for a 
determination that an item has a foreign availability or mass-market 
status. In evaluating and making a determination with respect to a 
petition filed under this section, the Secretary shall consult with the 
Secretary of Defense and other appropriate Government agencies and with 
the Office of Technology Evaluation (established pursuant to section 
214).
    (c) Result of Determination.--
            (1) In general.--In any case in which the Secretary 
        determines, in accordance with procedures and criteria which 
        the Secretary shall by regulation establish, that an item 
        described in subsection (a) has--
                    (A) a foreign availability status, or
                    (B) a mass-market status,
        the Secretary shall notify the President (and other appropriate 
        departments and agencies) and publish the notice of the 
        determination in the Federal Register. The Secretary's 
        determination shall become final 30 days after the date the 
        notice is published, the item shall be removed from the 
        National Security Control List, and a license or other 
        authorization shall not be required under this title or under 
        section 1211 of the National Defense Authorization Act of 
        Fiscal Year 1998 with respect to the item, unless the President 
        makes a determination described in section 212 or 213 with 
        respect to the item in that 30-day period.
            (2) Conforming amendment.--Section 1211(d) of the National 
        Defense Authorization Act for Fiscal Year 1998 is amended in 
        the second sentence by striking ``180'' and inserting ``60''.
    (d) Criteria for Determining Foreign Availability and Mass-Market 
Status.--
            (1) Foreign availability status.--The Secretary shall 
        determine that an item has foreign availability status under 
        this subtitle, if the item (or a substantially identical or 
        directly competitive item)--
                    (A) is available to controlled countries from 
                sources outside the United States, including countries 
                that participate with the United States in multilateral 
                export controls;
                    (B) can be acquired at a price that is not 
                excessive when compared to the price at which a 
                controlled country could acquire such item from sources 
                within the United States in the absence of export 
                controls; and
                    (C) is available in sufficient quantity so that the 
                requirement of a license or other authorization with 
                respect to the export of such item is or would be 
                ineffective.
            (2) Mass-market status.--The Secretary shall determine that 
        an item has mass-market status under this subtitle, if the item 
        (or a substantially identical or directly competitive item)--
                    (A) is produced and is available for sale in a 
                large volume to multiple potential purchasers;
                    (B) is widely distributed through normal commercial 
                channels, such as retail stores, direct marketing 
                catalogues, electronic commerce, and other channels;
                    (C) is conducive to shipment and delivery by 
                generally accepted commercial means of transport; and
                    (D) may be used for its normal intended purpose 
                without substantial and specialized service provided by 
                the manufacturer, distributor, or other third party.
            (3) Special rules.--For purposes of this subtitle--
                    (A) Substantially identical item.--The 
                determination of whether an item in relation to another 
                item is a substantially identical item shall include a 
                fair assessment of end-uses, the properties, nature, 
                and quality of the item.
                    (B) Directly competitive item.--
                            (i) In general.--The determination of 
                        whether an item in relation to another item is 
                        a directly competitive item shall include a 
                        fair assessment of whether the item, although 
                        not substantially identical in its intrinsic or 
                        inherent characteristics, is substantially 
                        equivalent for commercial purposes and may be 
                        adapted for substantially the same uses.
                            (ii) Exception.--An item is not directly 
                        competitive with a controlled item if the item 
                        is substantially inferior to the controlled 
                        item with respect to characteristics that 
                        resulted in the export of the item being 
                        controlled.

SEC. 212. PRESIDENTIAL SET-ASIDE OF FOREIGN AVAILABILITY DETERMINATION.

    (a) Criteria for Presidential Set-Aside.--
            (1) Potential for elimination.--If the President determines 
        that--
                    (A) the absence of export controls with respect to 
                an item would prove detrimental to the national 
                security of the United States, and
                    (B) there is a high probability that the foreign 
                availability status of an item will be eliminated 
                through multilateral negotiations within a reasonable 
                period of time taking into account the characteristics 
                of the item,
        the President may set aside the Secretary's determination of 
        foreign availability status with respect to the item.
            (2) Report to congress.--The President shall promptly--
                    (A) report any set-aside determination described in 
                paragraph (1) to the Committee on Banking, Housing, and 
                Urban Affairs of the Senate and the Committee on 
                International Relations of the House of 
                Representatives; and
                    (B) publish the determination in the Federal 
                Register.
    (b) Presidential Action in Case of Set-Aside.--
            (1) In general.--
                    (A) Negotiations.--In any case in which export 
                controls are maintained on an item because the 
                President has made a determination under subsection 
                (a), the President shall actively pursue negotiations 
                with the governments of the appropriate foreign 
                countries for the purpose of eliminating such 
                availability.
                    (B) Report to congress.--Not later than the date 
                the President begins negotiations, the President shall 
                notify in writing the Committee on Banking, Housing, 
                and Urban Affairs of the Senate and the Committee on 
                International Relations of the House of Representatives 
                that the President has begun such negotiations and why 
                the President believes it is important to the national 
                security that export controls on the item involved be 
                maintained.
            (2) Periodic review of determination.--The President shall 
        review a determination described in subsection (a) at least 
        every 6 months. Promptly after each review is completed, the 
        Secretary shall submit to the committees of Congress referred 
        to in paragraph (1)(B) a report on the results of the review, 
        together with the status of multilateral negotiations to 
        eliminate the foreign availability of the item.
            (3) Expiration of presidential set-aside.--A determination 
        by the President described in subsection (a) shall cease to 
        apply with respect to an item on the earlier of--
                  (A) the date that is 6 months after the date on which 
                the determination is made under subsection (a), if the 
                President has not commenced multilateral negotiations 
                to eliminate the foreign availability of the item 
                within that 6-month period;
                    (B) the date on which the negotiations described in 
                paragraph (1) have terminated without achieving an 
                agreement to eliminate foreign availability;
                    (C) the date on which the President determines that 
                there is not a high probability of eliminating foreign 
                availability of the item through negotiation; or
                    (D) the date that is 18 months after the date on 
                which the determination described in subsection (a) is 
                made if the President has been unable to achieve an 
                agreement to eliminate foreign availability within that 
                18-month period.
            (4) Action on expiration of presidential set-aside.--Upon 
        the expiration of a Presidential set-aside under paragraph (3) 
        with respect to an item, the Secretary shall not require a 
        license or other authorization to export the item.

SEC. 213. PRESIDENTIAL SET-ASIDE OF MASS-MARKET STATUS DETERMINATION.

    (a) Criteria for Set-Aside.--If the President determines that--
            (1) decontrolling or failing to control an item constitutes 
        a serious threat to the national security of the United States, 
        and
            (2) export controls on the item would be likely to diminish 
        the threat to, and advance the national security interests of, 
        the United States,
the President may set aside the Secretary's determination of mass-
market status with respect to the item.
    (b) Presidential Action in Case of Set-Aside.--
            (1) In general.--In any case in which export controls are 
        maintained on an item because the President has made a 
        determination under subsection (a), the President shall publish 
        notice of the determination in the Federal Register not later 
        than 30 days after the Secretary publishes notice of the 
        Secretary's determination that an item has mass-market status.
            (2) Periodic review of determination.--The President shall 
        review a determination made under subsection (a) at least every 
        6 months. Promptly after each review is completed, the 
        Secretary shall submit a report on the results of the review to 
        the Committee on Banking, Housing, and Urban Affairs of the 
        Senate and the Committee on International Relations of the 
        House of Representatives.

SEC. 214. OFFICE OF TECHNOLOGY EVALUATION.

    (a) In General.--The Secretary shall establish in the Department of 
Commerce an Office of Technology Evaluation (in this subtitle referred 
to as the ``Office''), which shall be under the direction of the 
Secretary. The Office shall be responsible for gathering and analyzing 
all the necessary information in order for the Secretary to make 
determinations of foreign availability and mass-market status under 
this Act.
    (b) Responsibilities.--The Office shall be responsible for--
            (1) conducting foreign availability assessments to 
        determine whether a controlled item is available to controlled 
        countries and whether requiring a license, or denial of a 
        license for the export of such item, is or would be 
        ineffective;
            (2) conducting mass-market assessments to determine whether 
        a controlled item is available to controlled countries because 
        of the mass-market status of the item;
            (3) monitoring and evaluating worldwide technological 
        developments in industry sectors critical to the national 
        security interests of the United States to determine foreign 
        availability and mass-market status of controlled items;
            (4) monitoring and evaluating multilateral export control 
        regimes and foreign government export control policies and 
        practices that affect the national security interests of the 
        United States;
            (5) conducting assessments of United States industrial 
        sectors critical to the United States defense industrial base 
        and how the sectors are affected by technological developments, 
        technology transfers, and foreign competition; and
            (6) conducting assessments of the impact of United States 
        export control policies on--
                    (A) United States industrial sectors critical to 
                the national security interests of the United States; 
                and
                    (B) the United States economy in general.
    (c) Reports to Congress.--The Secretary shall make available to the 
Committee on International Relations of the House of Representatives 
and the Committee on Banking, Housing, and Urban Affairs of the Senate 
as part of the Secretary's annual report required under section 801 
information on the operations of the Office, and on improvements in the 
Government's ability to assess foreign availability and mass-market 
status, during the fiscal year preceding the report, including 
information on the training of personnel, and the use of Commercial 
Service Officers of the United States and Foreign Commercial Service to 
assist in making determinations. The information shall also include a 
description of representative determinations made under this Act during 
the preceding fiscal year that foreign availability or mass-market 
status did or did not exist (as the case may be), together with an 
explanation of the determinations.
    (d) Sharing of Information.--Each department or agency of the 
United States, including any intelligence agency, and all contractors 
with any such department or agency, shall, consistent with the 
protection of intelligence sources and methods, furnish information to 
the Office concerning foreign availability and the mass-market status 
of items subject to export controls under this Act.

               TITLE III--FOREIGN POLICY EXPORT CONTROLS

SEC. 301. AUTHORITY FOR FOREIGN POLICY EXPORT CONTROLS.

    (a) Authority.--
            (1) In general.--In order to carry out the purposes set 
        forth in subsection (b), the President may, in accordance with 
        the provisions of this Act, prohibit, curtail, or require a 
        license, other authorization, recordkeeping, or reporting for 
        the export of any item subject to the jurisdiction of the 
        United States or exported by any person subject to the 
        jurisdiction of the United States.
            (2) Exercise of authority.--The authority contained in this 
        subsection shall be exercised by the Secretary, in consultation 
        with the Secretary of State and such other departments and 
        agencies as the Secretary considers appropriate.
    (b) Purposes.--The purposes of foreign policy export controls are 
the following:
            (1) To promote the foreign policy objectives of the United 
        States, consistent with the purposes of this section and the 
        provisions of this Act.
            (2) To promote international peace, stability, and respect 
        for fundamental human rights.
            (3) To use export controls to deter and punish acts of 
        international terrorism and to encourage other countries to 
        take immediate steps to prevent the use of their territories or 
        resources to aid, encourage, or give sanctuary to those persons 
        involved in directing, supporting, or participating in acts of 
        international terrorism.
    (c) Exception.--The President may not control under this title the 
export from a foreign country (whether or not by a United States 
person) of any item produced or originating in a foreign country that 
contains parts or components produced or originating in the United 
States.
    (d) Contract Sanctity.--
            (1) In general.--The President may not prohibit the export 
        of any item under this title if that item is to be exported--
                    (A) in performance of a binding contract, 
                agreement, or other contractual commitment entered into 
                before the date on which the President reports to 
                Congress the President's intention to impose controls 
                on that item under this title; or
                    (B) under a license or other authorization issued 
                under this Act before the earlier of the date on which 
                the control is initially imposed or the date on which 
                the President reports to Congress the President's 
                intention to impose controls under this title.
            (2) Exception.--The prohibition contained in paragraph (1) 
        shall not apply in any case in which the President determines 
        and certifies to the Committee on Banking, Housing, and Urban 
        Affairs of the Senate and the Committee on International 
        Relations of the House of Representatives that--
                    (A) there is a serious threat to a foreign policy 
                interest of the United States;
                    (B) the prohibition of exports under each binding 
                contract, agreement, commitment, license, or 
                authorization will be directly instrumental in 
                remedying the situation posing the serious threat; and
                    (C) the export controls will be in effect only as 
                long as the serious threat exists.

SEC. 302. PROCEDURES FOR IMPOSING CONTROLS.

    (a) Notice.--
            (1) Intent to impose foreign policy export control.--Except 
        as provided in section 306, not later than 45 days before 
        imposing or implementing an export control under this title, 
        the President shall publish in the Federal Register--
                    (A) a notice of intent to do so; and
                    (B) provide for a period of not less than 30 days 
                for any interested person to submit comments on the 
                export control proposed under this title.
            (2) Purposes of notice.--The purposes of the notice are--
                    (A) to provide an opportunity for the formulation 
                of an effective export control policy under this title 
                that advances United States economic and foreign policy 
                interests; and
                    (B) to provide an opportunity for negotiations to 
                achieve the purposes set forth in section 301(b).
    (b) Negotiations.--During the 45-day period that begins on the date 
of notice described in subsection (a), the President may negotiate with 
the government of the foreign country against which the export control 
is proposed in order to resolve the reasons underlying the proposed 
export control.
    (c) Consultation.--
            (1) Requirement.--The President shall consult with the 
        Committee on Banking, Housing, and Urban Affairs of the Senate 
        and the Committee on International Relations of the House of 
        Representatives regarding any export control proposed under 
        this title and the efforts to achieve or increase multilateral 
        cooperation on the issues or problems underlying the proposed 
        export control.
            (2) Classified consultation.--The consultations described 
        in paragraph (1) may be conducted on a classified basis if the 
        Secretary considers it necessary.

SEC. 303. CRITERIA FOR FOREIGN POLICY EXPORT CONTROLS.

    Each export control imposed by the President under this title 
shall--
            (1) have clearly stated, specific, and compelling United 
        States foreign policy objectives;
            (2) have objective standards for evaluating the success or 
        failure of the export control;
            (3) include an assessment by the President that--
                    (A) the export control is likely to achieve such 
                objectives and the expected time for achieving the 
                objectives; and
                    (B) the achievement of the objectives of the export 
                control outweighs any potential costs of the export 
                control to other United States economic, foreign 
                policy, humanitarian, or national security interests;
            (4) be targeted narrowly; and
            (5) seek to minimize any adverse impact on the humanitarian 
        activities of United States and foreign nongovernmental 
        organizations in the country subject to the export control.

SEC. 304. PRESIDENTIAL REPORT BEFORE IMPOSITION OF CONTROL.

    (a) Requirement.--Before imposing an export control under this 
title, the President shall submit to the Committee on Banking, Housing, 
and Urban Affairs of the Senate and the Committee on International 
Relations of the House of Representatives a report on the proposed 
export control. The report may be provided on a classified basis if the 
Secretary considers it necessary.
    (b) Content.--The report shall contain a description and assessment 
of each of the criteria described in section 303. In addition, the 
report shall contain a description and assessment of--
            (1) any diplomatic and other steps that the United States 
        has taken to accomplish the intended objective of the proposed 
        export control;
            (2) unilateral export controls imposed, and other measures 
        taken, by other countries to achieve the intended objective of 
        the proposed export control;
            (3) the likelihood of multilateral adoption of comparable 
        export controls;
            (4) alternative measures to promote the same objectives and 
        the likelihood of their potential success;
            (5) any United States obligations under international trade 
        agreements, treaties, or other international arrangements, with 
        which the proposed export control may conflict;
            (6) the likelihood that the proposed export control could 
        lead to retaliation against United States interests;
            (7) the likely economic impact of the proposed export 
        control on the United States economy, United States 
        international trade and investment, and United States 
        agricultural interests, commercial interests, and employment; 
        and
            (8) a conclusion that the probable achievement of the 
        objectives of the proposed export control outweighs any likely 
        costs to United States economic, foreign policy, humanitarian, 
        or national security interests, including any potential harm to 
        the United States agricultural and business firms and to the 
        international reputation of the United States as a reliable 
        supplier of goods, services, or technology.

SEC. 305. IMPOSITION OF CONTROLS.

    The President may impose an export control under this title after 
the submission of the report required under section 304 and publication 
in the Federal Register of a notice of the imposition of the export 
control .

SEC. 306. DEFERRAL AUTHORITY.

    (a) Authority.--The President may defer compliance with any 
requirement contained in section 302(a), 304, or 305 in the case of a 
proposed export control if--
            (1) the President determines that a deferral of compliance 
        with the requirement is in the national interest of the United 
        States; and
            (2) the requirement is satisfied not later than 60 days 
        after the date on which the export control is imposed under 
        this title.
    (b) Termination of Control.--An export control with respect to 
which a deferral has been made under subsection (a) shall terminate 60 
days after the date the export control is imposed unless all 
requirements have been satisfied before the expiration of the 60-day 
period.

SEC. 307. REVIEW, RENEWAL, AND TERMINATION.

    (a) Renewal and Termination.--
            (1) In general.--Any export control imposed under this 
        title shall terminate on March 31 of each renewal year unless 
        the President renews the export control on or before such date. 
        For purposes of this section, the term ``renewal year'' means 
        2002 and every 2 years thereafter.
            (2) Exception.--This section shall not apply to an export 
        control imposed under this title that--
                    (A) is required by law;
                    (B) is targeted against any country designated as a 
                country supporting international terrorism pursuant to 
                section 310; or
                    (C) has been in effect for less than 1 year as of 
                February 1 of a renewal year.
    (b) Review.--
            (1) In general.--Not later than February 1 of each renewal 
        year, the President shall review all export controls in effect 
        under this title.
            (2) Consultation.--
                    (A) Requirement.--Before completing a review under 
                paragraph (1), the President shall consult with the 
                Committee on Banking, Housing, and Urban Affairs of the 
                Senate and the Committee on International Relations of 
                the House of Representative regarding each export 
                control that is being reviewed.
                    (B) Classified consultation.--The consultations may 
                be conducted on a classified basis if the Secretary 
                considers it necessary.
            (3) Public comment.--In conducting the review of each 
        export control under paragraph (1), the President shall provide 
        a period of not less than 30 days for any interested person to 
        submit comments on renewal of the export control. The President 
        shall publish notice of the opportunity for public comment in 
        the Federal Register not less than 45 days before the review is 
        required to be completed.
    (c) Report to Congress.--
            (1) Requirement.--Before renewing an export control imposed 
        under this title, the President shall submit to the committees 
        of Congress referred to in subsection (b)(2)(A) a report on 
        each export control that the President intends to renew.
            (2) Form and content of report.--The report may be provided 
        on a classified basis if the Secretary considers it necessary. 
        Each report shall contain the following:
                    (A) A clearly stated explanation of the specific 
                and compelling United States foreign policy objective 
                that the existing export control was intended to 
                achieve.
                    (B) An assessment of--
                            (i) the extent to the which the existing 
                        export control achieved its objectives before 
                        renewal based on the objective criteria 
                        established for evaluating the export control; 
                        and
                            (ii) the reasons why the existing export 
                        control has failed to fully achieve its 
                        objectives and, if renewed, how the export 
                        control will achieve that objective before the 
                        next renewal year.
                    (C) An updated description and assessment of--
                            (i) each of the criteria described in 
                        section 303, and
                            (ii) each matter required to be reported 
                        under section 304(b)(1) through (8).
            (3) Renewal of export control.--The President may renew an 
        export control under this title after submission of the report 
        described in paragraph (2) and publication of notice of renewal 
        in the Federal Register.

SEC. 308. TERMINATION OF CONTROLS UNDER THIS TITLE.

    (a) In General.--Notwithstanding any other provision of law, the 
President--
            (1) shall terminate any export control imposed under this 
        title if the President determines that the control has 
        substantially achieved the objective for which it was imposed; 
        and
            (2) may terminate any export control imposed under this 
        title that is not required by law at any time.
    (b) Exception.--Paragraphs (1) and (2) of subsection (a) do not 
apply to any export control imposed under this title that is targeted 
against any country designated as a country supporting international 
terrorism pursuant to section 310.
    (c) Effective Date of Termination.--The termination of an export 
control pursuant to this section shall take effect on the date notice 
of the termination is published in the Federal Register.

SEC. 309. COMPLIANCE WITH INTERNATIONAL OBLIGATIONS.

    Notwithstanding any other provision of this Act setting forth 
limitations on authority to control exports and except as provided in 
section 304, the President may impose controls on exports to a 
particular country or countries in order to fulfill obligations of the 
United States under resolutions of the United Nations and under 
treaties, or other international agreements and arrangements, to which 
the United States is a party.

SEC. 310. DESIGNATION OF COUNTRIES SUPPORTING INTERNATIONAL TERRORISM.

    (a) License Required.--A license shall be required for the export 
of an item to a country if the Secretary of State has determined that--
            (1) the government of such country has repeatedly provided 
        support for acts of international terrorism; and
            (2) the export of the item could make a significant 
        contribution to the military potential of such country, 
        including its military logistics capability, or could enhance 
        the ability of such country to support acts of international 
        terrorism.
    (b) Notification.--The Secretary and the Secretary of State shall 
notify the Committee on International Relations of the House of 
Representatives and the Committee on Banking, Housing, and Urban 
Affairs and the Committee on Foreign Relations of the Senate at least 
30 days before issuing any license required by subsection (a).
    (c) Determinations Regarding Repeated Support.--Each determination 
of the Secretary of State under subsection (a)(1), including each 
determination in effect on the date of the enactment of the 
Antiterrorism and Arms Export Amendments Act of 1989, shall be 
published in the Federal Register.
    (d) Limitations on Rescinding Determination.--A determination made 
by the Secretary of State under subsection (a)(1) may not be rescinded 
unless the President submits to the Speaker of the House of 
Representatives and the Chairman of the Committee on Banking, Housing, 
and Urban Affairs and the Chairman of the Committee on Foreign 
Relations of the Senate--
            (1) before the proposed rescission would take effect, a 
        report certifying that--
                    (A) there has been a fundamental change in the 
                leadership and policies of the government of the 
                country concerned;
                    (B) that government is not supporting acts of 
                international terrorism; and
                    (C) that government has provided assurances that it 
                will not support acts of international terrorism in the 
                future; or
            (2) at least 45 days before the proposed rescission would 
        take effect, a report justifying the rescission and certifying 
        that--
                    (A) the government concerned has not provided any 
                support for international terrorism during the 
                preceding 6-month period; and
                    (B) the government concerned has provided 
                assurances that it will not support acts of 
                international terrorism in the future.
    (e) Information To Be Included in Notification.--The Secretary and 
the Secretary of State shall include in the notification required by 
subsection (b)--
            (1) a detailed description of the item to be offered, 
        including a brief description of the capabilities of any item 
        for which a license to export is sought;
            (2) the reasons why the foreign country or international 
        organization to which the export or transfer is proposed to be 
        made needs the item which is the subject of such export or 
        transfer and a description of the manner in which such country 
        or organization intends to use the item;
            (3) the reasons why the proposed export or transfer is in 
        the national interest of the United States;
            (4) an analysis of the impact of the proposed export or 
        transfer on the military capabilities of the foreign country or 
        international organization to which such export or transfer 
        would be made;
            (5) an analysis of the manner in which the proposed export 
        would affect the relative military strengths of countries in 
        the region to which the item which is the subject of such 
        export would be delivered and whether other countries in the 
        region have comparable kinds and amounts of the item; and
            (6) an analysis of the impact of the proposed export or 
        transfer on the United States relations with the countries in 
        the region to which the item which is the subject of such 
        export would be delivered.

TITLE IV--EXEMPTION FOR AGRICULTURAL COMMODITIES, MEDICINE, AND MEDICAL 
                                SUPPLIES

SEC. 401. EXEMPTION FOR AGRICULTURAL COMMODITIES, MEDICINE, AND MEDICAL 
              SUPPLIES.

    Notwithstanding any other provision of law, the export controls 
imposed on items under title III shall not apply to agricultural 
commodities, medicine, and medical supplies.

SEC. 402. TERMINATION OF EXPORT CONTROLS REQUIRED BY LAW.

    Notwithstanding any other provision of law, the President shall 
terminate any export control mandated by law on agricultural 
commodities, medicine, and medical supplies upon the date of enactment 
of this Act except for a control that is specifically reimposed by law.

SEC. 403. EXCLUSIONS.

    Sections 401 and 402 do not apply to the following:
            (1) The export of agricultural commodities, medicine, and 
        medical supplies that are subject to national security export 
        controls under title II.
            (2) The export of agricultural commodities, medicine, and 
        medical supplies to a country against which an embargo is in 
        effect under the Trading With the Enemy Act.

    TITLE V--PROCEDURES FOR EXPORT LICENSES AND INTERAGENCY DISPUTE 
                               RESOLUTION

SEC. 501. EXPORT LICENSE PROCEDURES.

    (a) Responsibility of the Secretary.--
            (1) In General.--All applications for a license or other 
        authorization to export a controlled item shall be filed in 
        such manner and include such information as the Secretary may, 
        by regulation, prescribe.
            (2) Procedures.--In guidance and regulations that implement 
        this section, the Secretary shall describe the procedures 
        required by this section, the responsibilities of the Secretary 
        and of other departments and agencies in reviewing 
        applications, the rights of the applicant, and other relevant 
        matters affecting the review of license applications.
            (3) Calculation of processing times.--In calculating the 
        processing times set forth in this title, the Secretary shall 
        use calendar days, except that if the final day for a required 
        action falls on a weekend or holiday, that action shall be 
        taken no later than the following business day.
            (4) Criteria for evaluating applications.--In determining 
        whether to grant an application to export a controlled item 
        under this Act, the following criteria shall be considered:
                    (A) The characteristics of the controlled item.
                    (B) The threat to the United States or the national 
                security interests of the United States from the misuse 
                of the item.
                    (C) The risk of export diversion or misuse by--
                            (i) the exporter;
                            (ii) the method of export;
                            (iii) the end-user;
                            (iv) the country where the end-user is 
                        located; and
                            (v) the end-use.
                    (D) Risk mitigating factors including, but not 
                limited to--
                            (i) changing the characteristics of the 
                        controlled item;
                            (ii) after-market monitoring by the 
                        exporter; and
                            (iii) post-shipment verification.
    (b) Initial Screening.--
            (1) Upon receipt of application.--Upon receipt of an export 
        license application, the Secretary shall enter and maintain in 
        the records of the Department information regarding the receipt 
        and status of the application.
            (2) Initial procedures.--
                    (A) In general.--Not later than 9 days after 
                receiving any license application, the Secretary 
                shall--
                            (i) contact the applicant if the 
                        application is improperly completed or if 
                        additional information is required, and hold 
                        the application for a reasonable time while the 
                        applicant provides the necessary corrections or 
                        information, and such time shall not be 
                        included in calculating the time periods 
                        prescribed in this title;
                            (ii) refer the application, through the use 
                        of a common data base or other means, and all 
                        information submitted by the applicant, and all 
                        necessary recommendations and analyses by the 
                        Secretary to the Department of Defense and 
                        other departments and agencies as the Secretary 
                        considers appropriate;
                            (iii) ensure that the classification stated 
                        on the application for the export items is 
                        correct; and
                            (iv) return the application if a license is 
                        not required.
                    (B) Referral not required.--In the event that the 
                head of a department or agency determines that certain 
                types of applications need not be referred to the 
                department or agency, such department or agency head 
                shall notify the Secretary of the specific types of 
                such applications that the department or agency does 
                not wish to review.
            (3) Withdrawal of application.--An applicant may, by 
        written notice to the Secretary, withdraw an application at any 
        time before final action.
    (c) Action by Other Departments and Agencies.--
            (1) Referral to other agencies.--The Secretary shall 
        promptly refer a license application to the departments and 
        agencies under subsection (b) to make recommendations and 
        provide information to the Secretary.
            (2) Responsibility of referral departments and agencies.--
        The Department of Defense and other reviewing departments and 
        agencies shall take all necessary actions in a prompt and 
        responsible manner on an application. Each department or agency 
        reviewing an application under this section shall establish and 
        maintain records properly identifying and monitoring the status 
        of the matter referred to the department or agency.
            (3) Additional information requests.--Each department or 
        agency to which a license application is referred shall specify 
        to the Secretary any information that is not in the application 
        that would be required for the department or agency to make a 
        determination with respect to the application, and the 
        Secretary shall promptly request such information from the 
        applicant. The time that may elapse between the date the 
        information is requested by that department or agency and the 
        date the information is received by that department or agency 
        shall not be included in calculating the time periods 
        prescribed in this title.
            (4) Time period for action by referral departments and 
        agencies.--Within 25 days after the Secretary refers an 
        application under this section, each department or agency to 
        which an application has been referred shall provide the 
        Secretary with a recommendation either to approve the license 
        or to deny the license. A recommendation that the Secretary 
        deny a license shall include a statement of reasons for the 
        recommendation that are consistent with the provisions of this 
        title, and shall cite both the specific statutory and 
        regulatory basis for the recommendation. A department or agency 
        that fails to provide a recommendation in accordance with this 
        paragraph within that 25-day period shall be deemed to have no 
        objection to the decision of the Secretary on the application.
    (d) Action by the Secretary.--Not later than 25 days after the date 
the application is referred, the Secretary shall--
            (1) if there is agreement among the referral departments 
        and agencies to issue or deny the license--
                    (A) issue the license and ensure all appropriate 
                personnel in the Department (including the Office of 
                Export Enforcement) are notified of all approved 
                license applications; or
                    (B) notify the applicant of the intention to deny 
                the license; or
            (2) if there is no agreement among the referral departments 
        and agencies, notify the applicant that the application is 
        subject to the interagency dispute resolution process.
    (e) Consequences of Application Denial.--
            (1) In general.--If a determination is made to deny a 
        license, the applicant shall be informed in writing by the 
        Secretary of--
                    (A) the determination;
                    (B) the specific statutory and regulatory bases for 
                the proposed denial;
                    (C) what, if any, modifications to, or restrictions 
                on, the items for which the license was sought would 
allow such export to be compatible with export controls imposed under 
this Act, and which officer or employee of the Department would be in a 
position to discuss modifications or restrictions with the applicant 
and the specific statutory and regulatory bases for imposing such 
modifications or restrictions;
                    (D) to the extent consistent with the national 
                security and foreign policy interests of the United 
                States, the specific considerations that led to the 
                determination to deny the application; and
                    (E) the availability of appeal procedures.
            (2) Period for applicant to respond.--The applicant shall 
        have 20 days from the date of the notice of intent to deny the 
        application to respond in a manner that addresses and corrects 
        the reasons for the denial. If the applicant does not 
        adequately address or correct the reasons for denial or does 
        not respond, the license shall be denied. If the applicant does 
        address or correct the reasons for denial, the application 
        shall receive consideration in a timely manner.
    (f) Appeals and Other Actions by Applicant.--
            (1) In general.--The Secretary shall establish appropriate 
        procedures for an applicant to appeal to the Secretary the 
        denial of an application or other administrative action under 
        this Act. In any case in which the Secretary intends to reverse 
        the decision with respect to the application, the appeal under 
        this subsection shall be handled in accordance with the 
        interagency dispute resolution process.
            (2) Enforcement of time limits.--
                    (A) In general.--In any case in which an action 
                prescribed in this section is not taken on an 
                application within the time period established by this 
                section (except in the case of a time period extended 
                under subsection (g) of which the applicant is 
                notified), the applicant may file a petition with the 
                Secretary requesting compliance with the requirements 
                of this section. When such petition is filed, the 
                Secretary shall take immediate steps to correct the 
                situation giving rise to the petition and shall 
                immediately notify the applicant of such steps.
                    (B) Bringing court action.--If, within 20 days 
                after a petition is filed under subparagraph (A), the 
                processing of the application has not been brought into 
                conformity with the requirements of this section, or 
                the processing of the application has been brought into 
                conformity with such requirements but the Secretary has 
                not so notified the applicant, the applicant may bring 
                an action in an appropriate United States district 
                court for an order requiring compliance with the time 
                periods required by this section.
    (g) Exceptions From Required Time Periods.--The following actions 
related to processing an application shall not be included in 
calculating the time periods prescribed in this section:
            (1) Agreement of the applicant.--Delays upon which the 
        Secretary and the applicant mutually agree.
            (2) Prelicense checks.--A prelicense check (for a period 
        not to exceed 60 days) that may be required to establish the 
        identity and reliability of the recipient of items controlled 
        under this Act, if--
                    (A) the need for the prelicense check is determined 
                by the Secretary or by another department or agency in 
                any case in which the request for the prelicense check 
                is made by such department or agency;
                    (B) the request for the prelicense check is 
                initiated by the Secretary within 5 days after the 
                determination that the prelicense check is required; 
                and
                    (C) the analysis of the result of the prelicense 
                check is completed by the Secretary within 5 days.
            (3) Requests for government-to-government assurances.--Any 
        request by the Secretary or another department or agency for 
        government-to-government assurances of suitable end-uses of 
        items approved for export, when failure to obtain such 
        assurances would result in rejection of the application, if--
                    (A) the request for such assurances is sent to the 
                Secretary of State within 5 days after the 
                determination that the assurances are required;
                    (B) the Secretary of State initiates the request of 
                the relevant government within 10 days thereafter; and
                    (C) the license is issued within 5 days after the 
                Secretary receives the requested assurances.
            (4) Exception.--Whenever a prelicense check described in 
        paragraph (2) or assurances described in paragraph (3) are not 
        requested within the time periods set forth therein, then the 
        time expended for such prelicense check or assurances shall be 
        included in calculating the time periods established by this 
        section.
            (5) Multilateral review.--Multilateral review of a license 
        application to the extent that such multilateral review is 
        required by a relevant multilateral regime.
            (6) Congressional notification.--Such time as is required 
        for mandatory congressional notifications under this Act.
            (7) Consultations.--Consultation with other governments, if 
        such consultation is provided for by a relevant multilateral 
        regime as a precondition for approving a license.
    (h) Classification Requests and Other Inquiries.--
            (1) Classification requests.--In any case in which the 
        Secretary receives a written request asking for the proper 
        classification of an item on the Control List or the 
        applicability of licensing requirements under this title, the 
        Secretary shall promptly notify the Secretary of Defense and 
other departments and agencies the Secretary considers appropriate. The 
Secretary shall, within 14 days after receiving the request, inform the 
person making the request of the proper classification.
            (2) Other inquiries.--In any case in which the Secretary 
        receives a written request for information under this Act, the 
        Secretary shall, within 30 days after receiving the request, 
        reply with that information to the person making the request.

SEC. 502. INTERAGENCY DISPUTE RESOLUTION PROCESS.

    (a) In General.--All license applications on which agreement cannot 
be reached shall be referred to the interagency dispute resolution 
process for decision.
    (b) Interagency Dispute Resolution Process.--
            (1) Initial resolution.--The Secretary shall establish, 
        select the chairperson of, and determine procedures for an 
        interagency committee to review initially all license 
        applications described in subsection (a) with respect to which 
        the Secretary and any of the referral departments and agencies 
        are not in agreement. The chairperson shall consider the 
        positions of all the referral departments and agencies (which 
        shall be included in the minutes described subsection (c)(2)) 
        and make a decision on the license application, including 
        appropriate revisions or conditions thereto.
            (2) Further resolution.--The President shall establish 
        additional levels for review or appeal of any matter that 
        cannot be resolved pursuant to the process described in 
        paragraph (1). Each such review shall--
                    (A) provide for decision-making based on the 
                majority vote of the participating departments and 
                agencies;
                    (B) provide that a department or agency that fails 
                to take a timely position, citing the specific 
                statutory and regulatory bases for a denial, shall be 
                deemed to have no objection to the pending decision;
                    (C) provide that any decision of an interagency 
                committee established under paragraph (1) or 
                interagency dispute resolution process established 
                under this paragraph may be escalated to the next 
                higher level of review at the request of any 
                representative of a department or agency that 
                participated in the interagency committee or dispute 
                resolution process that made the decision; and
                    (D) ensure that matters are resolved or referred to 
                the President not later than 90 days after the date the 
                completed license application is referred by the 
                Secretary.
    (c) Final Action.--
            (1) In general.--Once a final decision is made under 
        subsection (b), the Secretary shall promptly--
                    (A) issue the license and ensure that all 
                appropriate personnel in the Department (including the 
                Office of Export Enforcement) are notified of all 
                approved license applications; or
                    (B) notify the applicant of the intention to deny 
                the application.
            (2) Minutes.--The interagency committee and each level of 
        the interagency dispute resolution process shall keep 
        reasonably detailed minutes of all meetings. On each matter 
        before the interagency committee or before any other level of 
        the interagency dispute resolution process in which members 
        disagree, each member shall clearly state the reasons for the 
        member's position and the reasons shall be entered in the 
        minutes.

TITLE VI--INTERNATIONAL ARRANGEMENTS; FOREIGN BOYCOTTS; SANCTIONS; AND 
                              ENFORCEMENT

SEC. 601. INTERNATIONAL ARRANGEMENTS.

    (a) Multilateral Export Control Regimes.--
            (1) Policy.--It is the policy of the United States to seek 
        multilateral arrangements that support the national security 
        objectives of the United States (as described in title II) and 
        that establish fairer and more predictable competitive 
        opportunities for United States exporters.
            (2) Participation in existing regimes.--Congress encourages 
        the United States to continue its active participation in and 
        to strengthen existing multilateral export control regimes.
            (3) Participation in new regimes.--It is the policy of the 
        United States to participate in additional multilateral export 
        control regimes if such participation would serve the national 
        security interests of the United States.
    (b) Annual Report on Multilateral Export Control Regimes.--Not 
later than February 1 of each year, the President shall submit to the 
Committee on Banking, Housing, and Urban Affairs of the Senate and the 
Committee on International Relations of the House of Representatives a 
report evaluating the effectiveness of each multilateral export control 
regime, including an assessment of the steps undertaken pursuant to 
subsections (c) and (d). The report, or any part of this report, may be 
submitted in classified form to the extent the Secretary considers 
necessary.
    (c) Standards for Multilateral Export Control Regimes.--The 
President shall take steps to establish the following features in any 
multilateral export control regime in which the United States is 
participating or may participate:
            (1) Full membership.--All supplier countries are members of 
        the regime, and the policies and activities of the members are 
        consistent with the objectives and membership criteria of the 
        multilateral export control regime.
            (2) Effective enforcement and compliance.--The regime 
        promotes enforcement and compliance with the regime's rules and 
        guidelines.
            (3) Public understanding.--The regime makes an effort to 
        enhance public understanding of the purpose and procedures of 
        the multilateral export control regime.
            (4) Effective implementation procedures.--The multilateral 
        export control regime has procedures for the implementation of 
        its rules and guidelines through uniform and consistent 
        interpretations of its export controls.
            (5) Enhanced cooperation with regime nonmembers.--There is 
        agreement among the members of the multilateral export control 
        regime to--
                    (A) cooperate with governments outside the regime 
                to restrict the export of items controlled by such 
                regime; and
                    (B) establish an ongoing mechanism in the regime to 
                coordinate planning and implementation of export 
                control measures related to such cooperation.
            (6) Periodic high-level meetings.--There are regular 
        periodic meetings of high-level representatives of the 
        governments of members of the multilateral export control 
        regime for the purpose of coordinating export control policies 
        and issuing policy guidance to members of the regime.
            (7) Common list of controlled items.--There is agreement on 
        a common list of items controlled by the multilateral export 
        control regime.
            (8) Regular updates of common list.--There is a procedure 
        for removing items from the list of controlled items when the 
        control of such items no longer serves the objectives of the 
        members of the multilateral export control regime.
            (9) Treatment of certain countries.--There is agreement to 
        prevent the export or diversion of the most sensitive items to 
        countries whose activities are threatening to the national 
        security of the United States or its allies.
            (10) Harmonization of license approval procedures.--There 
        is harmonization among the members of the regime of their 
        national export license approval procedures and practices.
            (11) Undercutting.--There is a limit with respect to when 
        members of a multilateral export control regime--
                    (A) grant export licenses for any item that is 
                substantially identical to or directly competitive with 
                an item controlled pursuant to the regime, where the 
                United States has denied an export license for such 
                item, or
                    (B) approve exports to a particular end user to 
                which the United States has denied export license for a 
                similar item.
    (d) Standards for National Export Control Systems.--The President 
shall take steps to attain the cooperation of members of each regime in 
implementing effective national export control systems containing the 
following features:
            (1) Export control law.--Enforcement authority, civil and 
        criminal penalties, and statutes of limitations are sufficient 
        to deter potential violations and punish violators under the 
        member's export control law.
            (2) License approval process.--The system for evaluating 
        export license applications includes sufficient technical 
        expertise to assess the licensing status of exports and ensure 
        the reliability of end users.
            (3) Enforcement.--The enforcement mechanism provides 
        authority for trained enforcement officers to investigate and 
        prevent illegal exports.
            (4) Documentation.--There is a system of export control 
        documentation and verification with respect to controlled 
        items.
            (5) Information.--There are procedures for the coordination 
        and exchange of information concerning licensing, end users, 
        and enforcement with other members of the multilateral export 
        control regime.
            (6) Resources.--The member has devoted adequate resources 
        to administer effectively the authorities, systems, mechanisms, 
        and procedures described in paragraphs (1) through (5).
    (e) Objectives Regarding Multilateral Export Control Regimes.--The 
President shall seek to achieve the following objectives with regard to 
multilateral export control regimes:
            (1) Strengthen existing regimes.--Strengthen existing 
        multilateral export control regimes--
                    (A) by creating a requirement to share information 
                about export license applications among members before 
                a member approves an export license; and
                    (B) harmonizing national export license approval 
                procedures and practices, including the elimination of 
                undercutting.
            (2) Review and update.--Review and update multilateral 
        regime export control lists with other members, taking into 
        account--
                    (A) national security concerns;
                    (B) the controllability of items; and
                    (C) the costs and benefits of controls.
            (3) Encourage compliance by nonmembers.--Encourage 
        nonmembers of the multilateral export control regime--
                    (A) to strengthen their national export control 
                regimes and improve enforcement;
                    (B) to adhere to the appropriate multilateral 
                export control regime; and
                    (C) not to undermine an existing multilateral 
                export control regime by exporting controlled items in 
                a manner inconsistent with the guidelines of the 
                regime.
    (f) Transparency of Multilateral Export Control Regimes.--
            (1) Publication of information on each existing regime.--
        Not later than 120 days after the date of enactment of this 
        Act, the Secretary shall, for each multilateral export control 
        regime (to the extent that it is not inconsistent with the 
        arrangements of that regime or with the national interest), 
        publish in the Federal Register the following information with 
        respect to the regime:
                    (A) The purposes of the regime.
                    (B) The members of the regime.
                    (C) The export licensing policy of the regime.
                    (D) The items that are subject to export controls 
                under the regime, together with all public notes, 
                understandings, and other aspects of the agreement of 
                the regime, and all changes thereto.
                    (E) Any countries, end uses, or end users that are 
                subject to the export controls of the regime.
                    (F) Rules of interpretation.
                    (G) Major policy actions.
                    (H) The rules and procedures of the regime for 
                establishing and modifying any matter described in 
                subparagraphs (A) through (G) and for reviewing export 
                license applications.
            (2) New regimes.--Not later than 60 days after the United 
        States joins or organizes a new multilateral export control 
        regime, the Secretary shall, to the extent not inconsistent 
        with arrangements under the regime or with the national 
        interest, publish in the Federal Register the information 
        described in subparagraphs (A) through (H) of paragraph (1) 
        with respect to the regime.
            (3) Publication of changes.--Not later than 60 days after a 
        multilateral export control regime adopts any change in the 
        information published under this subsection, the Secretary 
        shall, to the extent not inconsistent with the arrangements 
        under the regime or the national interest, publish such changes 
        in the Federal Register.
    (g) Support of Other Countries' Export Control Systems.--The 
Secretary is encouraged to continue to--
            (1) participate in training of, and provide training to, 
        officials of other countries on the principles and procedures 
        for implementing effective export controls; and
            (2) participate in any such training provided by other 
        departments and agencies of the United States.

SEC. 602. FOREIGN BOYCOTTS.

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

SEC. 603. PENALTIES.

    (a) Criminal Penalties.--
            (1) Violations by an individual.--Any individual who 
        knowingly violates, conspires to violate, or attempts to 
        violate any provision of this Act or any regulation, license, 
        or order issued under this Act shall be fined up to 10 times 
        the value of the exports involved or $1,000,000, whichever is 
        greater, imprisoned for not more than 10 years, or both, for 
        each violation, except that the term of imprisonment may be 
        increased to life for multiple violations or aggravated 
        circumstances.
            (2) Violations by a person other than an individual.--Any 
        person other than an individual who knowingly violates, 
        conspires to violate, or attempts to violate any provision of 
        this Act or any regulation, license, or order issued under this 
        Act shall be fined up to 10 times the value of the exports 
        involved or $10,000,000, whichever is greater, for each 
        violation.
    (b) Forfeiture of Property Interest and Proceeds.--
            (1) Forfeiture.--Any person who is convicted under 
        paragraph (1) or (2) of subsection (a) shall, in addition to 
        any other penalty, forfeit to the United States--
                    (A) any of that person's security or other interest 
                in, claim against, or property or contractual rights of 
                any kind in the tangible items that were the subject of 
                the violation;
                    (B) any of that person's security or other interest 
                in, claim against, or property or contractual rights of 
                any kind in the tangible property that was used in the 
                export or attempt to export that was the subject of the 
                violation; and
                    (C) any of that person's property constituting, or 
                derived from, any proceeds obtained directly or 
                indirectly as a result of the violation.
            (2) Procedures.--The procedures in any forfeiture under 
        this subsection, and the duties and authority of the courts of 
        the United States and the Attorney General with respect to any 
        forfeiture action under this subsection, or with respect to any 
        property that may be subject to forfeiture under this 
        subsection, shall be governed by the provisions of chapter 46 
        of title 18, United States Code, to the same extent as property 
        subject to forfeiture under that chapter.
    (c) Civil Penalties; Administrative Sanctions.--
            (1) Civil penalties.--The Secretary may impose a civil 
        penalty of up to $1,000,000 for each violation of a provision 
        of this Act or any regulation, license, or order issued under 
        this Act. A civil penalty under this paragraph may be in 
        addition to, or in lieu of, any other liability or penalty 
        which may be imposed for such a violation.
            (2) Denial of export privileges.--The Secretary may deny 
        the export privileges of any person, including the suspension 
        or revocation of the authority of such person to export or 
        receive United States-origin items subject to this Act, for a 
        violation of a provision of this Act or any regulation, 
        license, or order issued under this Act.
            (3) Exclusion from practice.--The Secretary may exclude any 
        person acting as an attorney, accountant, consultant, freight 
        forwarder, or in any other representative capacity from 
        participating before the Department with respect to a license 
        application or any other matter under this Act.
    (d) Payment of Civil Penalties.--
            (1) Payment as condition of further export privileges.--The 
        payment of a civil penalty imposed under subsection (c) may be 
        made a condition for the granting, restoration, or continuing 
        validity of any export license, permission, or privilege 
        granted or to be granted to the person upon whom such penalty 
        is imposed. The period for which the payment of a penalty may 
        be made such a condition may not exceed 1 year after the date 
        on which the payment is due.
            (2) Deferral or suspension.--
                    (A) In general.--The payment of a civil penalty 
                imposed under subsection (c) may be deferred or 
                suspended in whole or in part for a period no longer 
                than any probation period (which may exceed 1 year) 
                that may be imposed upon the person on whom the penalty 
                is imposed.
                    (B) No bar to collection of penalty.--A deferral or 
                suspension under subparagraph (A) shall not operate as 
                a bar to the collection of the penalty concerned in the 
                event that the conditions of the suspension, deferral, 
                or probation are not fulfilled.
            (3) Treatment of payments.--Any amount paid in satisfaction 
        of a civil penalty imposed under subsection (c) shall be 
        covered into the Treasury as miscellaneous receipts except as 
        set forth in section 607(h).
    (e) Refunds.--
            (1) Authority.--
                    (A) In general.--The Secretary may, in the 
                Secretary's discretion, refund any civil penalty 
                imposed under subsection (c) on the ground of a 
                material error of fact or law in imposition of the 
                penalty.
                    (B) Limitation.--A civil penalty may not be 
                refunded under subparagraph (A) later than 2 years 
                after payment of the penalty.
            (2) Prohibition on actions for refund.--Notwithstanding 
        section 1346(a) of title 28, United States Code, no action for 
        the refund of any civil penalty referred to in paragraph (1) 
        may be maintained in any court.
    (f) Effect of Other Convictions.--
            (1) Denial of export privileges.--Any person convicted of a 
        violation of--
                    (A) a provision of this Act or the Export 
                Administration Act of 1979,
                    (B) a provision of the International Emergency 
                Economic Powers Act (50 U.S.C. 1701 et seq.),
                    (C) section 793, 794, or 798 of title 18, United 
                States Code,
                    (D) section 4(b) of the Internal Security Act of 
                1950 (50 U.S.C. 783(b)),
                    (E) section 38 of the Arms Export Control Act (22 
                U.S.C. 2778),
                    (F) section 16 of the Trading with the Enemy Act 
                (50 U.S.C. App. 16),
                    (G) any regulation, license, or order issued under 
                any provision of law listed in subparagraph (A), (B), 
                (C), (D), (E), or (F),
                    (H) section 371 or 1001 of title 18, United States 
                Code, if in connection with the export of controlled 
                items under this Act or any regulation, license, or 
                order issued under the International Emergency Economic 
                Powers Act, or the export of items controlled under the 
                Arms Export Control Act,
                    (I) section 175 of title 18, United States Code,
                    (J) section 229, of title 18, United States Code,
                    (K) a provision of the Atomic Energy Act (42 U.S.C. 
                201 et seq.),
                    (L) section 831 of title 18, United States Code, or
                    (M) section 2332a of title 18, United States Code,
        may, at the discretion of the Secretary, be denied export 
        privileges under this Act for a period not to exceed 10 years 
        from the date of the conviction. The Secretary may also revoke 
        any export license under this Act in which such person had an 
        interest at the time of the conviction.
            (2) Related persons.--The Secretary may exercise the 
        authority under paragraph (1) with respect to any person 
        related through affiliation, ownership, control, or position of 
        responsibility to a person convicted of any violation of a law 
        set forth in paragraph (1) upon a showing of such relationship 
        with the convicted person. The Secretary shall make such 
        showing only after providing notice and opportunity for a 
        hearing.
    (g) Statute of Limitations.--
            (1) In general.--Except as provided in paragraph (2), a 
        proceeding in which a civil penalty or other administrative 
        sanction (other than a temporary denial order) is sought under 
        subsection (c) may not be instituted more than 5 years after 
        the later of the date of the alleged violation or the date of 
        discovery of the alleged violation.
            (2) Exception.--
                    (A) Tolling.--In any case in which a criminal 
                indictment alleging a violation under subsection (a) is 
                returned within the time limits prescribed by law for 
                the institution of such action, the limitation under 
                paragraph (1) for bringing a proceeding to impose a 
                civil penalty or other administrative sanction under 
                this section shall, upon the return of the criminal 
                indictment, be tolled against all persons named as a 
                defendant.
                    (B) Duration.--The tolling of the limitation with 
                respect to a defendant under subparagraph (A) as a 
                result of a criminal indictment shall continue for a 
                period of 6 months from the date on which the 
                conviction of the defendant becomes final, the 
                indictment against the defendant is dismissed, or the 
                criminal action has concluded.
    (h) Violations Defined by Regulation.--Nothing in this section 
shall limit the authority of the Secretary to define by regulation 
violations under this Act.
    (i) Construction.--Nothing in subsection (c), (d), (e), (f), or (g) 
limits--
            (1) the availability of other administrative or judicial 
        remedies with respect to a violation of a provision of this 
        Act, or any regulation, order, or license issued under this 
        Act;
            (2) the authority to compromise and settle administrative 
        proceedings brought with respect to any such violation; or
            (3) the authority to compromise, remit, or mitigate 
        seizures and forfeitures pursuant to section 1(b) of title VI 
        of the Act of June 15, 1917 (22 U.S.C. 401(b)).

SEC. 604. MULTILATERAL EXPORT CONTROL REGIME VIOLATION SANCTIONS.

    (a) Imposition of Sanctions.--
            (1) In general.--The President, subject to subsection (c), 
        shall apply sanctions under subsection (b) for a period of not 
        less than 2 years and not more than 5 years, if the President 
        determines that--
                    (A) a foreign person has violated any regulation 
                issued by a country to control exports for national 
                security purposes pursuant to a multilateral export 
                control regime; and
                    (B) such violation has substantially aided a 
                country in--
                            (i) acquiring military significant 
                        capabilities or weapons, if the country is an 
                        actual or potential adversary of the United 
                        States;
                            (ii) acquiring nuclear weapons provided 
                        such country is other than the declared nuclear 
                        states of the People's Republic China, the 
                        Republic of France, the Russian Federation, the 
                        United Kingdom, and the United States;
                            (iii) acquiring biological or chemical 
                        weapons; or
                            (iv) acquiring missiles.
            (2) Notification of congress.--The President shall notify 
        Congress of each action taken under this section.
    (b) Applicability and Forms of Sanctions.--The sanctions referred 
to in subsection (a) shall apply to the foreign person committing the 
violation, as well as to any parent, affiliate, subsidiary, and 
successor entity of the foreign person, and, except as provided in 
subsection (c), are as follows:
            (1) A prohibition on contracting with, and the procurement 
        of products and services from, a sanctioned person, by any 
        department, agency, or instrumentality of the United States 
        Government.
            (2) A prohibition on the importation into the United States 
        of all items produced by a sanctioned person.
    (c) Exceptions.--The President shall not apply sanctions under this 
section--
            (1) in the case of procurement of defense items--
                    (A) under existing contracts or subcontracts, 
                including the exercise of options for production 
                quantities to satisfy United States operational 
                military requirements;
                    (B) if the President determines that the foreign 
                person or other entity to which the sanctions would 
                otherwise be applied is a sole source supplier of 
                essential defense items and no alternative supplier can 
                be identified; or
                    (C) if the President determines that such items are 
                essential to the national security under defense 
                coproduction agreements;
            (2) in any case in which such sanctions would violate 
        United States international obligations including treaties, 
        agreements, or understandings; or
            (3) to--
                    (A) items provided under contracts or other binding 
                agreements (as such terms are defined by the President 
                in regulations) entered into before the date on which 
                the President notifies Congress of the intention to 
                impose the sanctions;
                    (B) after-market service and replacement parts 
                including upgrades;
                    (C) component parts, but not finished products, 
                essential to United States products or productions; or
                    (D) information and technology.
    (d) Exclusion.--The President shall not apply sanctions under this 
section to a parent, affiliate, subsidiary, and successor entity of a 
foreign person if the President determines that--
            (1) the parent, affiliate, subsidiary, or successor entity 
        (as the case may be) has not knowingly violated the export 
        control regulation violated by the foreign person; and
            (2) the government of the country with jurisdiction over 
        the parent, affiliate, subsidiary, or successor entity had in 
        effect, at the time of the violation by the foreign person, an 
        effective export control system consistent with principles set 
        forth in section 601(b)(2).
    (e) Subsequent Modifications of Sanctions.--The President may, 
after consultation with the Committee on Banking, Housing, and Urban 
Affairs of the Senate and the Committee on International Relations of 
the House of Representatives, limit the scope of sanctions applied to a 
parent, affiliate, subsidiary, or successor entity of the foreign 
person determined to have committed the violation on account of which 
the sanctions were imposed, if the President determines that--
            (1) the parent, affiliate, subsidiary, or successor entity 
        (as the case may be) has not, on the basis of evidence 
        available to the United States, itself violated the export 
        control regulation involved, either directly or through a 
        course of conduct;
            (2) the government with jurisdiction over the parent, 
        affiliate, subsidiary, or successor entity has improved its 
        export control system as measured by the criteria set forth in 
        section 601(b)(2); and
            (3) the parent, affiliate, subsidiary, or successor entity, 
        has instituted improvements in internal controls sufficient to 
        detect and prevent violations of the multilateral export 
        control regime.

SEC. 605. MISSILE PROLIFERATION CONTROL VIOLATIONS.

    (a) Violations by United States Persons.--
            (1) Sanctions.--
                    (A) In general.--If the President determines that a 
                United States person knowingly--
                            (i) exports, transfers, or otherwise 
                        engages in the trade of any item on the MTCR 
                        Annex, in violation of the provisions of 
                        section 38 (22 U.S.C. 2778) or chapter 7 of the 
                        Arms Export Control Act, title II or III of 
                        this Act, or any regulations or orders issued 
                        under any such provisions,
                            (ii) conspires to or attempts to engage in 
                        such export, transfer, or trade, or
                            (iii) facilitates such export, transfer, or 
                        trade by any other person,
                then the President shall impose the applicable 
                sanctions described in subparagraph (B).
                    (B) Sanctions described.--The sanctions which apply 
                to a United States person under subparagraph (A) are 
                the following:
                            (i) If the item on the MTCR Annex involved 
                        in the export, transfer, or trade is missile 
                        equipment or technology within category II of 
                        the MTCR Annex, then the President shall deny 
                        to such United States person, for a period of 2 
                        years, licenses for the transfer of missile 
                        equipment or technology controlled under this 
                        Act.
                            (ii) If the item on the MTCR Annex involved 
                        in the export, transfer, or trade is missile 
                        equipment or technology within category I of 
                        the MTCR Annex, then the President shall deny 
                        to such United States person, for a period of 
                        not less than 2 years, all licenses for items 
                        the export of which is controlled under this 
                        Act.
            (2) Discretionary sanctions.--In the case of any 
        determination referred to in paragraph (1), the Secretary may 
        pursue any other appropriate penalties under section 603.
            (3) Waiver.--The President may waive the imposition of 
        sanctions under paragraph (1) on a person with respect to an 
        item if the President certifies to Congress that--
                    (A) the item is essential to the national security 
                of the United States; and
                    (B) such person is a sole source supplier of the 
                item, the item is not available from any alternative 
                reliable supplier, and the need for the item cannot be 
                met in a timely manner by improved manufacturing 
                processes or technological developments.
    (b) Transfers of Missile Equipment or Technology by Foreign 
Persons.--
            (1) Sanctions.--
                    (A) In general.--Subject to paragraphs (3) through 
                (7), if the President determines that a foreign person, 
                after the date of enactment of this section, 
                knowingly--
                            (i) exports, transfers, or otherwise 
                        engages in the trade of any MTCR equipment or 
                        technology that contributes to the design, 
                        development, or production of missiles in a 
                        country that is not an MTCR adherent and would 
                        be, if it were United States-origin equipment 
                        or technology, subject to the jurisdiction of 
                        the United States under this Act,
                            (ii) conspires to or attempts to engage in 
                        such export, transfer, or trade, or
                            (iii) facilitates such export, transfer, or 
                        trade by any other person,
                or if the President has made a determination with 
                respect to a foreign person under section 73(a) of the 
                Arms Export Control Act, then the President shall 
                impose on that foreign person the applicable sanctions 
                under subparagraph (B).
                    (B) Sanctions described.--The sanctions which apply 
                to a foreign person under subparagraph (A) are the 
                following:
                            (i) If the item involved in the export, 
                        transfer, or trade is within category II of the 
                        MTCR Annex, then the President shall deny, for 
                        a period of 2 years, licenses for the transfer 
                        to such foreign person of missile equipment or 
                        technology the export of which is controlled 
                        under this Act.
                            (ii) If the item involved in the export, 
                        transfer, or trade is within category I of the 
                        MTCR Annex, then the President shall deny, for 
                        a period of not less than 2 years, licenses for 
                        the transfer to such foreign person of items 
                        the export of which is controlled under this 
                        Act.
                            (iii) If, in addition to actions taken 
                        under clauses (i) and (ii), the President 
                        determines that the export, transfer, or trade 
                        has substantially contributed to the design, 
                        development, or production of missiles in a 
                        country that is not an MTCR adherent, then the 
                        President shall prohibit, for a period of not 
                        less than 2 years, the importation into the 
                        United States of products produced by that 
                        foreign person.
            (2) Inapplicability with respect to mtcr adherents.--
        Paragraph (1) does not apply with respect to--
                    (A) any export, transfer, or trading activity that 
                is authorized by the laws of an MTCR adherent, if such 
                authorization is not obtained by misrepresentation or 
                fraud; or
                    (B) any export, transfer, or trade of an item to an 
                end user in a country that is an MTCR adherent.
            (3) Effect of enforcement actions by mtcr adherents.--
        Sanctions set forth in paragraph (1) may not be imposed under 
        this subsection on a person with respect to acts described in 
        such paragraph or, if such sanctions are in effect against a 
        person on account of such acts, such sanctions shall be 
        terminated, if an MTCR adherent is taking judicial or other 
        enforcement action against that person with respect to such 
        acts, or that person has been found by the government of an 
        MTCR adherent to be innocent of wrongdoing with respect to such 
        acts.
            (4) Advisory opinions.--The Secretary, in consultation with 
        the Secretary of State and the Secretary of Defense, may, upon 
        the request of any person, issue an advisory opinion to that 
        person as to whether a proposed activity by that person would 
        subject that person to sanctions under this subsection. Any 
        person who relies in good faith on such an advisory opinion 
        which states that the proposed activity would not subject a 
person to such sanctions, and any person who thereafter engages in such 
activity, may not be made subject to such sanctions on account of such 
activity.
            (5) Waiver and report to congress.--
                    (A) Waiver.--In any case other than one in which an 
                advisory opinion has been issued under paragraph (4) 
                stating that a proposed activity would not subject a 
                person to sanctions under this subsection, the 
                President may waive the application of paragraph (1) to 
                a foreign person if the President determines that such 
                waiver is essential to the national security of the 
                United States.
                    (B) Report to congress.--In the event that the 
                President decides to apply the waiver described in 
                subparagraph (A), the President shall so notify 
                Congress not less than 20 working days before issuing 
                the waiver. Such notification shall include a report 
                fully articulating the rationale and circumstances 
                which led the President to apply the waiver.
            (6) Additional waiver.--The President may waive the 
        imposition of sanctions under paragraph (1) on a person with 
        respect to a product or service if the President certifies to 
        the Congress that--
                    (A) the product or service is essential to the 
                national security of the United States; and
                    (B) such person is a sole source supplier of the 
                product or service, the product or service is not 
                available from any alternative reliable supplier, and 
                the need for the product or service cannot be met in a 
                timely manner by improved manufacturing processes or 
                technological developments.
            (7) Exceptions.--The President shall not apply the sanction 
        under this subsection prohibiting the importation of the 
        products of a foreign person--
                    (A) in the case of procurement of defense articles 
                or defense services--
                            (i) under existing contracts or 
                        subcontracts, including the exercise of options 
                        for production quantities to satisfy 
                        requirements essential to the national security 
                        of the United States;
                            (ii) if the President determines that the 
                        person to which the sanctions would be applied 
                        is a sole source supplier of the defense 
                        articles and services, that the defense 
                        articles or services are essential to the 
                        national security of the United States, and 
                        that alternative sources are not readily or 
                        reasonably available; or
                            (iii) if the President determines that such 
                        articles or services are essential to the 
                        national security of the United States under 
                        defense coproduction agreements or NATO 
                        Programs of Cooperation;
                    (B) to products or services provided under 
                contracts entered into before the date on which the 
                President publishes his intention to impose the 
                sanctions; or
                    (C) to--
                            (i) spare parts,
                            (ii) component parts, but not finished 
                        products, essential to United States products 
                        or production,
                            (iii) routine services and maintenance of 
                        products, to the extent that alternative 
                        sources are not readily or reasonably 
                        available, or
                            (iv) information and technology essential 
                        to United States products or production.
    (c) Definitions.--In this section:
            (1) Missile.--The term ``missile'' means a category I 
        system as defined in the MTCR Annex, and any other unmanned 
        delivery system of similar capability, as well as the specially 
        designed production facilities for these systems.
            (2) Missile technology control regime; mtcr.--The term 
        ``Missile Technology Control Regime'' or ``MTCR'' means the 
        policy statement, between the United States, the United 
        Kingdom, the Federal Republic of Germany, France, Italy, 
        Canada, and Japan, announced on April 16, 1987, to restrict 
        sensitive missile-relevant transfers based on the MTCR Annex, 
        and any amendments thereto.
            (3) MTCR adherent.--The term ``MTCR adherent'' means a 
        country that participates in the MTCR or that, pursuant to an 
        international understanding to which the United States is a 
        party, controls MTCR equipment or technology in accordance with 
        the criteria and standards set forth in the MTCR.
            (4) MTCR annex.--The term ``MTCR Annex'' means the 
        Guidelines and Equipment and Technology Annex of the MTCR, and 
        any amendments thereto.
            (5) Missile equipment or technology; mtcr equipment or 
        technology.--The terms ``missile equipment or technology'' and 
        ``MTCR equipment or technology'' mean those items listed in 
        category I or category II of the MTCR Annex.
            (6) Foreign person.--The term ``foreign person'' means any 
        person other than a United States person.
            (7) Person.--
                    (A) In general.--The term ``person'' means a 
                natural person as well as a corporation, business 
                association, partnership, society, trust, any other 
                nongovernmental entity, organization, or group, and any 
                governmental entity operating as a business enterprise, 
                and any successor of any such entity.
                    (B) Identification in certain cases.--In the case 
                of countries where it may be impossible to identify a 
                specific governmental entity referred to in 
                subparagraph (A), the term ``person'' means--
                            (i) all activities of that government 
                        relating to the development or production of 
                        any missile equipment or technology; and
                            (ii) all activities of that government 
                        affecting the development or production of 
                        aircraft, electronics, and space systems or 
                        equipment.
            (8) Otherwise engaged in the trade of.--The term 
        ``otherwise engaged in the trade of'' means, with respect to a 
        particular export or transfer, to be a freight forwarder or 
        designated exporting agent, or a consignee or end user of the 
        item to be exported or transferred.

SEC. 606. CHEMICAL AND BIOLOGICAL WEAPONS PROLIFERATION SANCTIONS.

    (a) Imposition of Sanctions.--
            (1) Determination by the president.--Except as provided in 
        subsection (b)(2), the President shall impose both of the 
        sanctions described in subsection (c) if the President 
        determines that a foreign person, on or after the date of 
        enactment of this section, has knowingly and materially 
        contributed--
                    (A) through the export from the United States of 
                any item that is subject to the jurisdiction of the 
                United States under this Act, or
                    (B) through the export from any other country of 
                any item that would be, if it were a United States 
                item, subject to the jurisdiction of the United States 
                under this Act,
        to the efforts by any foreign country, project, or entity 
        described in paragraph (2) to use, develop, produce, stockpile, 
        or otherwise acquire chemical or biological weapons.
            (2) Countries, projects, or entities receiving 
        assistance.--Paragraph (1) applies in the case of--
                    (A) any foreign country that the President 
                determines has, at any time after the date of enactment 
                of this Act--
                            (i) used chemical or biological weapons in 
                        violation of international law;
                            (ii) used lethal chemical or biological 
                        weapons against its own nationals; or
                            (iii) made substantial preparations to 
                        engage in the activities described in clause 
                        (i) or (ii);
                    (B) any foreign country whose government is 
                determined for purposes of section 310 to be a 
                government that has repeatedly provided support for 
                acts of international terrorism; or
                    (C) any other foreign country, project, or entity 
                designated by the President for purposes of this 
                section.
            (3) Persons against which sanctions are to be imposed.--
        Sanctions shall be imposed pursuant to paragraph (1) on--
                    (A) the foreign person with respect to which the 
                President makes the determination described in that 
                paragraph;
                    (B) any successor entity to that foreign person;
                    (C) any foreign person that is a parent or 
                subsidiary of that foreign person if that parent or 
                subsidiary knowingly assisted in the activities which 
                were the basis of that determination; and
                    (D) any foreign person that is an affiliate of that 
                foreign person if that affiliate knowingly assisted in 
                the activities which were the basis of that 
                determination and if that affiliate is controlled in 
                fact by that foreign person.
    (b) Consultations With and Actions by Foreign Government of 
Jurisdiction.--
            (1) Consultations.--If the President makes the 
        determinations described in subsection (a)(1) with respect to a 
        foreign person, Congress urges the President to initiate 
        consultations immediately with the government with primary 
        jurisdiction over that foreign person with respect to the 
        imposition of sanctions pursuant to this section.
            (2) Actions by government of jurisdiction.--In order to 
        pursue such consultations with that government, the President 
        may delay imposition of sanctions pursuant to this section for 
        a period of up to 90 days. Following the consultations, the 
        President shall impose sanctions unless the President 
        determines and certifies to Congress that government has taken 
        specific and effective actions, including appropriate 
        penalties, to terminate the involvement of the foreign person 
        in the activities described in subsection (a)(1). The President 
        may delay imposition of sanctions for an additional period of 
        up to 90 days if the President determines and certifies to 
        Congress that government is in the process of taking the 
        actions described in the preceding sentence.
            (3) Report to congress.--The President shall report to 
        Congress, not later than 90 days after making a determination 
        under subsection (a)(1), on the status of consultations with 
        the appropriate government under this subsection, and the basis 
        for any determination under paragraph (2) of this subsection 
        that such government has taken specific corrective actions.
    (c) Sanctions.--
            (1) Description of sanctions.--The sanctions to be imposed 
        pursuant to subsection (a)(1) are, except as provided in 
        paragraph (2) of this subsection, the following:
                    (A) Procurement sanction.--The United States 
                Government shall not procure, or enter into any 
                contract for the procurement of, any goods or services 
                from any person described in subsection (a)(3).
                    (B) Import sanctions.--The importation into the 
                United States of products produced by any person 
                described in subsection (a)(3) shall be prohibited.
            (2) Exceptions.--The President shall not be required to 
        apply or maintain sanctions under this section--
                    (A) in the case of procurement of defense articles 
                or defense services--
                            (i) under existing contracts or 
                        subcontracts, including the exercise of 
options for production quantities to satisfy United States operational 
military requirements;
                            (ii) if the President determines that the 
                        person or other entity to which the sanctions 
                        would otherwise be applied is a sole source 
                        supplier of the defense articles or services, 
                        that the defense articles or services are 
                        essential, and that alternative sources are not 
                        readily or reasonably available; or
                            (iii) if the President determines that such 
                        articles or services are essential to the 
                        national security under defense coproduction 
                        agreements;
                    (B) to products or services provided under 
                contracts entered into before the date on which the 
                President publishes his intention to impose sanctions;
                    (C) to--
                            (i) spare parts,
                            (ii) component parts, but not finished 
                        products, essential to United States products 
                        or production, or
                            (iii) routine servicing and maintenance of 
                        products, to the extent that alternative 
                        sources are not readily or reasonably 
                        available;
                    (D) to information and technology essential to 
                United States products or production; or
                    (E) to medical or other humanitarian items.
    (d) Termination of Sanctions.--The sanctions imposed pursuant to 
this section shall apply for a period of at least 12 months following 
the imposition of sanctions and shall cease to apply thereafter only if 
the President determines and certifies to the Congress that reliable 
information indicates that the foreign person with respect to which the 
determination was made under subsection (a)(1) has ceased to aid or 
abet any foreign government, project, or entity in its efforts to 
acquire chemical or biological weapons capability as described in that 
subsection.
    (e) Waiver.--
            (1) Criterion for waiver.--The President may waive the 
        application of any sanction imposed on any person pursuant to 
        this section, after the end of the 12-month period beginning on 
        the date on which that sanction was imposed on that person, if 
        the President determines and certifies to Congress that such 
        waiver is important to the national security interests of the 
        United States.
            (2) Notification of and report to congress.--If the 
        President decides to exercise the waiver authority provided in 
        paragraph (1), the President shall so notify the Congress not 
        less than 20 days before the waiver takes effect. Such 
        notification shall include a report fully articulating the 
        rationale and circumstances which led the President to exercise 
        the waiver authority.
    (f) Definition of Foreign Person.--For the purposes of this 
section, the term ``foreign person'' means--
            (1) an individual who is not a citizen of the United States 
        or an alien admitted for permanent residence to the United 
        States; or
            (2) a corporation, partnership, or other entity which is 
        created or organized under the laws of a foreign country or 
        which has its principal place of business outside the United 
        States.

SEC. 607. ENFORCEMENT.

    (a) General Authority and Designation.--
            (1) Policy guidance on enforcement.--The Secretary, in 
        consultation with the Secretary of the Treasury and the heads 
        of other departments and agencies that the Secretary considers 
        appropriate, shall be responsible for providing policy guidance 
        on the enforcement of this Act.
            (2) General authorities.--
                    (A) Exercise of authority.--To the extent necessary 
                or appropriate to the enforcement of this Act, officers 
                or employees of the Department designated by the 
                Secretary, officers and employees of the United States 
                Customs Service designated by the Commissioner of 
                Customs, and officers and employees of any other 
                department or agency designated by the head of the 
                department or agency, may exercise the enforcement 
                authority under paragraph (3).
                    (B) Customs service.--In carrying out enforcement 
                authority under paragraph (3), the Commissioner of 
                Customs and employees of the United States Customs 
                Services designated by the Commissioner may make 
                investigations within or outside the United States and 
                at ports of entry into or exit from the United States 
                where officers of the United States Customs Service are 
                authorized by law to carry out law enforcement 
                responsibilities. Subject to paragraph (3), the United 
                States Customs Service is authorized, in the 
                enforcement of this Act, to search, detain (after 
                search), and seize commodities or technology at the 
                ports of entry into or exit from the United States 
                where officers of the United States Customs Service are 
                authorized by law to conduct searches, detentions, and 
                seizures, and at the places outside the United States 
                where the United States Customs Service, pursuant to 
                agreement or other arrangement with other countries, is 
                authorized to perform enforcement activities.
                    (C) Other employees.--In carrying out enforcement 
                authority under paragraph (3), the Secretary and 
                officers and employees of the Department designated by 
                the Secretary may make investigations within the United 
                States, and may conduct, outside the United States, 
                pre-license and post-shipment verifications of 
                controlled items and investigations in the enforcement 
                of section 602. The Secretary and officers and 
                employees of the Department designated by the Secretary 
                are authorized to search, detain (after search), and 
                seize items at places within the United States other 
                than ports referred to in subparagraph (B). The search, 
                detention (after search), or seizure of items at the 
                ports and places referred to in subparagraph (B) may be 
                conducted by officers and employees of the Department 
only with the concurrence of the Commissioner of Customs or a person 
designated by the Commissioner.
                    (D) Agreements and arrangements.--The Secretary and 
                the Commissioner of Customs may enter into agreements 
                and arrangements for the enforcement of this Act, 
                including foreign investigations and information 
                exchange.
            (3) Specific authorities.--
                    (A) Actions by any designated personnel.--Any 
                officer or employee designated under paragraph (2), in 
                carrying out the enforcement authority under this Act, 
                may do the following:
                            (i) Make investigations of, obtain 
                        information from, make inspection of any books, 
                        records, or reports (including any writings 
                        required to be kept by the Secretary), 
                        premises, or property of, and take the sworn 
                        testimony of, any person.
                            (ii) Administer oaths or affirmations, and 
                        by subpoena require any person to appear and 
                        testify or to appear and produce books, 
                        records, and other writings, or both. In the 
                        case of contumacy by, or refusal to obey a 
                        subpoena issued to, any such person, a district 
                        court of the United States, on request of the 
                        Attorney General and after notice to any such 
                        person and a hearing, shall have jurisdiction 
                        to issue an order requiring such person to 
                        appear and give testimony or to appear and 
                        produce books, records, and other writings, or 
                        both. Any failure to obey such order of the 
                        court may be punished by such court as a 
                        contempt thereof. The attendance of witnesses 
                        and the production of documents provided for in 
                        this clause may be required from any State, the 
                        District of Columbia, or in any territory of 
                        the United States at any designated place. 
                        Witnesses subpoenaed under this subsection 
                        shall be paid the same fees and mileage 
                        allowance as paid witnesses in the district 
                        courts of the United States.
                    (B) Actions by office of export enforcement and 
                customs service personnel.--
                            (i) Office of export enforcement and 
                        customs service personnel.--Any officer or 
                        employee of the Office of Export Enforcement of 
                        the Department of Commerce (in this Act 
                        referred to as ``OEE'') who is designated by 
                        the Secretary under paragraph (2), and any 
                        officer or employee of the United States 
                        Customs Service who is designated by the 
                        Commissioner of Customs under paragraph (2), 
                        may do the following in carrying out the 
                        enforcement authority under this Act:
                                    (I) Execute any warrant or other 
                                process issued by a court or officer of 
                                competent jurisdiction with respect to 
                                the enforcement of this Act.
                                    (II) Make arrests without warrant 
                                for any violation of this Act committed 
                                in his or her presence or view, or if 
                                the officer or employee has probable 
                                cause to believe that the person to be 
                                arrested has committed, is committing, 
                                or is about to commit such a violation.
                                    (III) Carry firearms.
                            (ii) OEE personnel.--Any officer and 
                        employee of the OEE designated by the Secretary 
                        under paragraph (2) shall exercise the 
                        authority set forth in clause (i) pursuant to 
                        guidelines approved by the Attorney General.
                    (C) Other actions by customs service personnel.--
                Any officer or employee of the United States Customs 
                Service designated by the Commissioner of Customs under 
                paragraph (2) may do the following in carrying out the 
                enforcement authority under this Act:
                            (i) Stop, search, and examine a vehicle, 
                        vessel, aircraft, or person on which or whom 
                        the officer or employee has reasonable cause to 
                        suspect there is any item that has been, is 
                        being, or is about to be exported from or 
                        transited through the United States in 
                        violation of this Act.
                            (ii) Detain and search any package or 
                        container in which the officer or employee has 
                        reasonable cause to suspect there is any item 
                        that has been, is being, or is about to be 
                        exported from or transited through the United 
                        States in violation of this Act.
                            (iii) Detain (after search) or seize any 
                        item, for purposes of securing for trial or 
                        forfeiture to the United States, on or about 
                        such vehicle, vessel, aircraft, or person or in 
                        such package or container, if the officer or 
                        employee has probable cause to believe the item 
                        has been, is being, or is about to be exported 
                        from or transited through the United States in 
                        violation of this Act.
            (4) Other authorities not affected.--The authorities 
        conferred by this section are in addition to any authorities 
        conferred under other laws.
    (b) Forfeiture.--
            (1) In general.--Any tangible items lawfully seized under 
        subsection (a) by designated officers or employees shall be 
        subject to forfeiture to the United States.
            (2) Applicable laws.--Those provisions of law relating to--
                    (A) the seizure, summary and judicial forfeiture, 
                and condemnation of property for violations of the 
                customs laws;
                    (B) the disposition of such property or the 
                proceeds from the sale thereof;
                    (C) the remission or mitigation of such 
                forfeitures; and
                    (D) the compromise of claims,
        shall apply to seizures and forfeitures incurred, or alleged to 
        have been incurred, under the provisions of this subsection, 
        insofar as applicable and not inconsistent with this Act.
            (3) Forfeitures under customs laws.--Duties that are 
        imposed upon the customs officer or any other person with 
        respect to the seizure and forfeiture of property under the 
        customs laws may be performed with respect to seizures and 
        forfeitures of property under this subsection by the Secretary 
        or any officer or employee of the Department that may be 
        authorized or designated for that purpose by the Secretary, or, 
        upon the request of the Secretary, by any other agency that has 
        authority to manage and dispose of seized property.
    (c) Referral of Cases.--All cases involving violations of this Act 
shall be referred to the Secretary for purposes of determining civil 
penalties and administrative sanctions under section 603 or to the 
Attorney General for criminal action in accordance with this Act or to 
both the Secretary and the Attorney General.
    (d) Undercover Investigation Operations.--
            (1) Use of funds.--With respect to any undercover 
        investigative operation conducted by the OEE that is necessary 
        for the detection and prosecution of violations of this Act--
                    (A) funds made available for export enforcement 
                under this Act may be used to purchase property, 
                buildings, and other facilities, and to lease 
                equipment, conveyances, and space within the United 
                States, without regard to sections 1341 and 3324 of 
                title 31, United States Code, the third undesignated 
                paragraph under the heading of ``miscellaneous'' of the 
                Act of March 3, 1877, (40 U.S.C. 34), sections 3732(a) 
                and 3741 of the Revised Statutes of the United States 
                (41 U.S.C. 11(a) and 22), and subsections (a) and (c) 
                of section 304, and section 305 of the Federal Property 
                and Administrative Services Act of 1949 (41 U.S.C. 254 
                (a) and (c) and 255);
                    (B) funds made available for export enforcement 
                under this Act may be used to establish or to acquire 
                proprietary corporations or business entities as part 
                of an undercover operation, and to operate such 
                corporations or business entities on a commercial 
                basis, without regard to sections 1341, 3324, and 9102 
                of title 31, United States Code;
                    (C) funds made available for export enforcement 
                under this Act and the proceeds from undercover 
                operations may be deposited in banks or other financial 
                institutions without regard to the provisions of 
                section 648 of title 18, United States Code, and 
                section 3302 of title 31, United States Code; and
                    (D) the proceeds from undercover operations may be 
                used to offset necessary and reasonable expenses 
                incurred in such operations without regard to the 
                provisions of section 3302 of title 31, United States 
                Code,
        if the Director of OEE (or an officer or employee designated by 
        the Director) certifies, in writing, that the action authorized 
        by subparagraph (A), (B), (C), or (D) for which the funds would 
        be used is necessary for the conduct of the undercover 
        operation.
            (2) Disposition of business entities.--If a corporation or 
        business entity established or acquired as part of an 
        undercover operation has a net value of more than $250,000 and 
        is to be liquidated, sold, or otherwise disposed of, the 
        Director of OEE shall report the circumstances to the Secretary 
        and the Comptroller General of the United States as much in 
        advance of such disposition as the Director of the OEE (or the 
        Director's designee) determines is practicable. The proceeds of 
        the liquidation, sale, or other disposition, after obligations 
        incurred by the corporation or business enterprise are met, 
        shall be deposited in the Treasury of the United States as 
        miscellaneous receipts. Any property or equipment purchased 
        pursuant to paragraph (1) may be retained for subsequent use in 
        undercover operations under this section. When such property or 
        equipment is no longer needed, it shall be considered surplus 
        and disposed of as surplus government property.
            (3) Deposit of proceeds.--As soon as the proceeds from an 
        OEE undercover investigative operation with respect to which an 
        action is authorized and carried out under this subsection are 
        no longer needed for the conduct of such operation, the 
        proceeds or the balance of the proceeds remaining at the time 
        shall be deposited into the Treasury of the United States as 
        miscellaneous receipts.
            (4) Audit and report.--
                    (A) Audit.--The Director of OEE shall conduct a 
                detailed financial audit of each closed OEE undercover 
                investigative operation and shall submit the results of 
                the audit in writing to the Secretary. Not later than 
                180 days after an undercover operation is closed, the 
                Secretary shall submit to Congress a report on the 
                results of the audit.
                    (B) Report.--The Secretary shall submit annually to 
                Congress a report, which may be included in the annual 
                report under section 801, specifying the following 
                information:
                            (i) The number of undercover investigative 
                        operations pending as of the end of the period 
                        for which such report is submitted.
                            (ii) The number of undercover investigative 
                        operations commenced in the 1-year period 
                        preceding the period for which such report is 
                        submitted.
                            (iii) The number of undercover 
                        investigative operations closed in the 1-year 
                        period preceding the period for which such 
                        report is submitted and, with respect to each 
such closed undercover operation, the results obtained and any civil 
claims made with respect to the operation.
            (5) Definitions.--For purposes of paragraph (4)--
                    (A) the term ``closed'', with respect to an 
                undercover investigative operation, refers to the 
                earliest point in time at which all criminal 
                proceedings (other than appeals) pursuant to the 
                investigative operation are concluded, or covert 
                activities pursuant to such operation are concluded, 
                whichever occurs later; and
                    (B) the terms ``undercover investigative 
                operation'' and ``undercover operation'' mean any 
                undercover investigative operation conducted by the 
                OEE--
                            (i) in which the gross receipts (excluding 
                        interest earned) exceed $25,000, or 
                        expenditures (other than expenditures for 
                        salaries of employees) exceed $75,000, and
                            (ii) which is exempt from section 3302 or 
                        9102 of title 31, United States Code, except 
                        that clauses (i) and (ii) shall not apply with 
                        respect to the report to Congress required by 
                        paragraph (4)(B).
    (e) Wiretaps.--
            (1) Authority.--Interceptions of communications in 
        accordance with section 2516 of title 18, United States Code, 
        are authorized to further the enforcement of this Act.
            (2) Conforming amendment.--Section 2516(1) of title 18, 
        United States Code, is amended by adding at the end the 
        following:
                    ``(q)(i) any violation of, or conspiracy to 
                violate, the Export Administration Act of 1999 or the 
                Export Administration Act of 1979.''.
    (f) Post-Shipment Verification.--
            (1) In general.--The Secretary shall target post-shipment 
        verifications to exports involving the greatest risk to 
        national security including, but not limited to, exports of 
        high performance computers.
            (2) Repeal.--Section 1213 of the National Defense 
        Authorization Act for Fiscal Year 1998 is repealed.
    (g) Refusal To Allow Post-Shipment Verification.--
            (1) In general.--If an end-user refuses to allow post-
        shipment verification of a controlled item, the Secretary shall 
        deny a license for the export of any controlled item to such 
        end-user until such post-shipment verification occurs.
            (2) Related persons.--The Secretary may exercise the 
        authority under paragraph (1) with respect to any person 
        related through affiliation, ownership, control, or position of 
        responsibility, to any end-user refusing to allow post-shipment 
        verification of a controlled item.
            (3) Refusal by country.--If the country in which the end-
        user is located refuses to allow post-shipment verification of 
        a controlled item, the Secretary may deny a license for the 
        export of that item or any substantially identical or directly 
        competitive item or class of items to all end-users in that 
        country until such post-shipment verification is allowed.
    (h) Award of Compensation; Patriot Provision.--
            (1) In general.--If--
                    (A) any person, who is not an employee or officer 
                of the United States, furnishes to a United States 
                attorney, to the Secretary of the Treasury or the 
                Secretary, or to appropriate officials in the 
                Department of the Treasury or the Department of 
                Commerce, original information concerning a violation 
                of this Act or any regulation, order, or license issued 
                under this Act, which is being, or has been, 
                perpetrated or contemplated by any other person, and
                    (B) such information leads to the recovery of any 
                criminal fine, civil penalty, or forfeiture,
        the Secretary may award and pay such person an amount that does 
        not exceed 25 percent of the net amount of the criminal fine or 
        civil penalty recovered or the amount forfeited.
            (2) Dollar limitation.--The amount awarded and paid to any 
        person under this section may not exceed $250,000 for any case.
            (3) Source of payment.--The amount paid under this section 
        shall be paid out of any penalties, forfeitures, or 
        appropriated funds.
    (i) Freight Forwarders Best Practices Program Authorization.--There 
is authorized to be appropriated for the Department of Commerce 
$3,500,000 and such sums as may be necessary to hire 20 additional 
employees to assist United States freight forwarders and other 
interested parties in developing and implementing, on a voluntary 
basis, a ``best practices'' program to ensure that exports of 
controlled items are undertaken in compliance with this Act.
    (j) End-Use Verification Authorization.--
            (1) In general.--There is authorized to be appropriated for 
        the Department of Commerce $4,500,000 and such sums as may be 
        necessary to hire 10 additional overseas investigators to be 
        posted in the People's Republic of China, the Russian 
        Federation, the Hong Kong Special Administrative Region, the 
        Republic of India, Singapore, Egypt, and Taiwan, or any other 
        place the Secretary deems appropriate, for the purpose of 
        verifying the end use of high-risk, dual-use technology.
            (2) Report.--Not later than 2 years after the date of 
        enactment of this Act and annually thereafter, the Department 
        shall, in its annual report to Congress on export controls, 
        include a report on the effectiveness of the end-use 
        verification activities authorized under subsection (a). The 
        report shall include the following information:
                    (A) The activities of the overseas investigators of 
                the Department.
                    (B) The types of goods and technologies that were 
                subject to end-use verification.
                    (C) The ability of the Department's investigators 
                to detect the illegal transfer of high risk, dual-use 
                goods and technologies.
    (k) Enhanced Cooperation With United States Customs Service.--
Consistent with the purposes of this Act, the Secretary is authorized 
to undertake, in cooperation with the United States Customs Service, 
such measures as may be necessary or required to enhance the ability of 
the United States to detect unlawful exports and to enforce violations 
of this Act.
    (l) Reference to Enforcement.--For purposes of this section, a 
reference to the enforcement of this Act or to a violation of this Act 
includes a reference to the enforcement or a violation of any 
regulation, license, or order issued under this Act.
    (m) Authorization for Export Licensing and Enforcement Computer 
System.--There is authorized to be appropriated for the Department 
$5,000,000 and such other sums as may be necessary for planning, 
design, and procurement of a computer system to replace the 
Department's primary export licensing and computer enforcement system.

SEC. 608. ADMINISTRATIVE PROCEDURE.

    (a) Exemptions From Administrative Procedure.--Except as provided 
in this section, the functions exercised under this Act are excluded 
from the operation of sections 551, 553 through 559, and 701 through 
706 of title 5, United States Code.
    (b) Procedures Relating to Civil Penalties and Sanctions.--
            (1) Administrative procedures.--Any administrative sanction 
        imposed under section 603 may be imposed only after notice and 
        opportunity for an agency hearing on the record in accordance 
        with sections 554 through 557 of title 5, United States Code. 
        The imposition of any such administrative sanction shall be 
        subject to judicial review in accordance with sections 701 
        through 706 of title 5, United States Code.
            (2) Availability of charging letter.--Any charging letter 
        or other document initiating administrative proceedings for the 
        imposition of sanctions for violations of the regulations 
        issued under section 602 shall be made available for public 
        inspection and copying.
    (c) Collection.--If any person fails to pay a civil penalty imposed 
under section 603, the Secretary may ask the Attorney General to 
commence a civil action in an appropriate district court of the United 
States to recover the amount imposed (plus interest at currently 
prevailing rates from the date of the final order). No such action may 
be commenced more than 5 years after the order imposing the civil 
penalty becomes final. In such an action, the validity, amount, and 
appropriateness of such penalty shall not be subject to review.
    (d) Imposition of Temporary Denial Orders.--
            (1) Grounds for imposition.--In any case in which there is 
        reasonable cause to believe that a person is engaged in or is 
        about to engage in any act or practice which constitutes or 
        would constitute a violation of this Act, or any regulation, 
        order, or license issued under this Act, including any 
        diversion of goods or technology from an authorized end use or 
        end user, and in any case in which a criminal indictment has 
        been returned against a person alleging a violation of this Act 
        or any of the statutes listed in section 603, the Secretary 
        may, without a hearing, issue an order temporarily denying that 
        person's United States export privileges (hereafter in this 
        subsection referred to as a ``temporary denial order''). A 
        temporary denial order shall be effective for such period (not 
        in excess of 180 days) as the Secretary specifies in the order, 
        but may be renewed by the Secretary, following notice and an 
        opportunity for a hearing, for additional periods of not more 
        than 180 days each.
            (2) Administrative appeals.--The person or persons subject 
        to the issuance or renewal of a temporary denial order may 
        appeal the issuance or renewal of the temporary denial order, 
        supported by briefs and other material, to an administrative 
        law judge who shall, within 15 working days after the appeal is 
        filed, issue a decision affirming, modifying, or vacating the 
        temporary denial order. The temporary denial order shall be 
        affirmed if it is shown that--
                    (A) there is reasonable cause to believe that the 
                person subject to the order is engaged in or is about 
                to engage in any act or practice that constitutes or 
                would constitute a violation of this Act, or any 
                regulation, order, or license issued under this Act; or
                    (B) a criminal indictment has been returned against 
                the person subject to the order alleging a violation of 
                this Act or any of the statutes listed in section 603.
        The decision of the administrative law judge shall be final 
        unless, within 10 working days after the date of the 
        administrative law judge's decision, an appeal is filed with 
        the Secretary. On appeal, the Secretary shall either affirm, 
        modify, reverse, or vacate the decision of the administrative 
        law judge by written order within 10 working days after 
        receiving the appeal. The written order of the Secretary shall 
        be final and is not subject to judicial review, except as 
        provided in paragraph (3). The materials submitted to the 
        administrative law judge and the Secretary shall constitute the 
        administrative record for purposes of review by the court.
            (3) Court appeals.--An order of the Secretary affirming, in 
        whole or in part, the issuance or renewal of a temporary denial 
        order may, within 15 days after the order is issued, be 
        appealed by a person subject to the order to the United States 
        Court of Appeals for the District of Columbia Circuit, which 
        shall have the jurisdiction of the appeal. The court may review 
        only those issues necessary to determine whether the issuance 
        of the temporary denial order was based on reasonable cause to 
        believe that the person subject to the order was engaged in or 
        was about to engage in any act or practice that constitutes or 
        would constitute a violation of this title, or any regulation, 
        order, or license issued under this Act, or whether a criminal 
        indictment has been returned against the person subject to the 
        order alleging a violation of this Act or of any of the 
        statutes listed in section 603. The court shall vacate the 
        Secretary's order if the court finds that the Secretary's order 
        is arbitrary, capricious, an abuse of discretion, or otherwise 
        not in accordance with law.

          TITLE VII--EXPORT CONTROL AUTHORITY AND REGULATIONS

SEC. 701. EXPORT CONTROL AUTHORITY AND REGULATIONS.

    (a) Export Control Authority.--
            (1) In general.--Unless otherwise reserved to the President 
        or a department (other than the Department) or agency of the 
        United States, all power, authority, and discretion conferred 
        by this Act shall be exercised by the Secretary.
            (2) Delegation of functions of the secretary.--The 
        Secretary may delegate any function under this Act, unless 
        otherwise provided, to the Under Secretary of Commerce for 
        Export Administration or to any other officer of the 
        Department.
    (b) Under Secretary of Commerce; Assistant Secretaries.--
            (1) Under secretary of commerce.--There shall be within the 
        Department an Under Secretary of Commerce for Export 
        Administration (in this section referred to as the ``Under 
        Secretary'') who shall be appointed by the President, by and 
        with the advice and consent of the Senate. The Under 
Secretary shall carry out all functions of the Secretary under this Act 
and other provisions of law relating to national security, as the 
Secretary may delegate.
            (2) Additional assistant secretaries.--In addition to the 
        number of Assistant Secretaries otherwise authorized for the 
        Department of Commerce, there shall be within the Department of 
        Commerce the following Assistant Secretaries of Commerce:
                    (A) An Assistant Secretary for Export 
                Administration who shall be appointed by the President, 
                by and with the advice and consent of the Senate, and 
                who shall assist the Secretary and the Under Secretary 
                in carrying out functions relating to export listing 
                and licensing.
                    (B) An Assistant Secretary for Export Enforcement 
                who shall be appointed by the President, by and with 
                the advice and consent of the Senate, and who shall 
                assist the Secretary and the Under Secretary in 
                carrying out functions relating to export enforcement.
    (c) Issuance of Regulations.--
            (1) In general.--The President and the Secretary may issue 
        such regulations as are necessary to carry out this Act. Any 
        such regulations the purpose of which is to carry out title II 
        or title III may be issued only after the regulations are 
        submitted for review to such departments or agencies as the 
        President considers appropriate. The Secretary shall consult 
        with the appropriate export control advisory committee 
        appointed under section 105(f) in formulating regulations under 
        this title. The second sentence of this subsection does not 
        require the concurrence or approval of any official, 
        department, or agency to which such regulations are submitted.
            (2) Amendments to regulations.--If the Secretary proposes 
        to amend regulations issued under this Act, the Secretary shall 
        report to the Committee on Banking, Housing, and Urban Affairs 
        of the Senate and the Committee on International Relations of 
        the House of Representatives on the intent and rationale of 
        such amendments. Such report shall evaluate the cost and burden 
        to the United States exporters of the proposed amendments in 
        relation to any enhancement of licensing objectives. The 
        Secretary shall consult with the appropriate export control 
        advisory committees appointed under section 105(f) in amending 
        regulations issued under this Act.

SEC. 702. CONFIDENTIALITY OF INFORMATION.

    (a) Exemptions From Disclosure.--
            (1) Information obtained on or before june 30, 1980.--
        Except as otherwise provided by the third sentence of section 
        602(c)(2), information obtained under the Export Administration 
        Act of 1979, or any predecessor statute, on or before June 30, 
        1980, which is deemed confidential, including Shipper's Export 
        Declarations, or with respect to which a request for 
        confidential treatment is made by the person furnishing such 
        information, shall not be subject to disclosure under section 
        552 of title 5, United States Code, and such information shall 
        not be published or disclosed, unless the Secretary determines 
        that the withholding thereof is contrary to the national 
        interest.
            (2) Information obtained after june 30, 1980.--Except as 
        otherwise provided by the third sentence of section 13(b)(2) of 
        the Export Administration Act of 1979, information obtained 
        under this Act, under the Export Administration Act of 1979 
        after June 30, 1980, or under the Export Administration 
        regulations as maintained and amended under the authority of 
        the International Emergency Economic Powers Act (50 U.S.C. 
        1706), may be withheld from disclosure only to the extent 
        permitted by statute, except that information submitted, 
        obtained, or considered in connection with an application for 
        an export license or other export authorization (or 
        recordkeeping or reporting requirement) under the Export 
        Administration Act of 1979, under this Act, or under the Export 
        Administration regulations as maintained and amended under the 
        authority of the International Emergency Economic Powers Act 
        (50 U.S.C. 1706), including--
                    (A) the export license or other export 
                authorization itself,
                    (B) classification requests described in section 
                501(h),
                    (C) information or evidence obtained in the course 
                of any investigation,
                    (D) information obtained or furnished under title 
                VII in connection with any international agreement, 
                treaty, or other obligation, and
                    (E) information obtained in making the 
                determinations set forth in section 211 of this Act,
        and information obtained in any investigation of an alleged 
        violation of section 602 of this Act except for information 
        required to be disclosed by section 602(c)(2) or 606(b)(2) of 
        this Act, shall be withheld from public disclosure and shall 
        not be subject to disclosure under section 552 of title 5, 
        United States Code, unless the release of such information is 
        determined by the Secretary to be in the national interest.
    (b) Information to Congress and GAO.--
            (1) In general.--Nothing in this title shall be construed 
        as authorizing the withholding of information from Congress or 
        from the General Accounting Office.
            (2) Availability to the congress--
                    (A) In general.--Any information obtained at any 
                time under this title or under any predecessor Act 
                regarding the control of exports, including any report 
                or license application required under this title, shall 
                be made available to any committee or subcommittee of 
                Congress of appropriate jurisdiction upon the request 
                of the chairman or ranking minority member of such 
                committee or subcommittee.
                    (B) Prohibition on further disclosure.--No 
                committee, subcommittee, or Member of Congress shall 
                disclose any information obtained under this Act or any 
                predecessor Act regarding the control of exports which 
is submitted on a confidential basis to the Congress under subparagraph 
(A) unless the full committee to which the information is made 
available determines that the withholding of the information is 
contrary to the national interest.
            (3) Availability to the gao.--
                    (A) In general.--Notwithstanding subsection (a), 
                information described in paragraph (2) shall, 
                consistent with the protection of intelligence, 
                counterintelligence, and law enforcement sources, 
                methods, and activities, as determined by the agency 
                that originally obtained the information, and 
                consistent with the provisions of section 716 of title 
                31, United States Code, be made available only by the 
                agency, upon request, to the Comptroller General of the 
                United States or to any officer or employee of the 
                General Accounting Office authorized by the Comptroller 
                General to have access to such information.
                    (B) Prohibition on further disclosures.--No officer 
                or employee of the General Accounting Office shall 
                disclose, except to Congress in accordance with this 
                paragraph, any such information which is submitted on a 
                confidential basis and from which any individual can be 
                identified.
    (c) Information Exchange.--Notwithstanding subsection (a), the 
Secretary and the Commissioner of Customs shall exchange licensing and 
enforcement information with each other as necessary to facilitate 
enforcement efforts and effective license decisions.
    (d) Penalties for Disclosure of Confidential Information.--
            (1) Disclosure prohibited.--No officer or employee of the 
        United States, or any department or agency thereof, may 
        publish, divulge, disclose, or make known in any manner or to 
        any extent not authorized by law any information that--
                    (A) the officer or employee obtains in the course 
                of his or her employment or official duties or by 
                reason of any examination or investigation made by, or 
                report or record made to or filed with, such department 
                or agency, or officer or employee thereof; and
                    (B) is exempt from disclosure under this section.
            (2) Criminal penalties.--Any such officer or employee who 
        knowingly violates paragraph (1) shall be fined not more than 
        $50,000, imprisoned not more than 1 year, or both, for each 
        violation of paragraph (1). Any such officer or employee may 
        also be removed from office or employment.
            (3) Civil penalties; administrative sanctions.--The 
        Secretary may impose a civil penalty of not more than $5,000 
        for each violation of paragraph (1). Any officer or employee 
        who commits such violation may also be removed from office or 
        employment for the violation of paragraph (1). Subsections 603 
        (e), (g), (h), and (i) and 606 (a), (b), and (c) shall apply to 
        violations described in this paragraph.

                  TITLE VIII--MISCELLANEOUS PROVISIONS

SEC. 801. ANNUAL AND PERIODIC REPORTS.

    (a) Annual Report.--Not later than February 1 of each year, the 
Secretary shall submit to Congress a report on the administration of 
this Act during the fiscal year ending September 30 of the preceding 
calendar year. All Federal agencies shall cooperate fully with the 
Secretary in providing information for each such report.
    (b) Report Elements.--Each such report shall include in detail--
            (1) a description of the implementation of the export 
        control policies established by this Act, including any 
        delegations of authority by the President and any other changes 
        in the exercise of delegated authority;
            (2) a description of the changes to and the year-end status 
        of country tiering and the Control List;
            (3) a description of the determinations made with respect 
        to foreign availability and mass-market status, the set-asides 
        of foreign availability and mass-market status determinations, 
        and negotiations to eliminate foreign availability;
            (4) a description of the regulations issued under this Act;
            (5) a description of organizational and procedural changes 
        undertaken in furtherance of this Act;
            (6) a description of the enforcement activities, 
        violations, and sanctions imposed under section 604;
            (7) a statistical summary of all applications and 
        notifications, including--
                    (A) the number of applications and notifications 
                pending review at the beginning of the fiscal year;
                    (B) the number of notifications returned and 
                subject to full license procedure;
                    (C) the number of notifications with no action 
                required;
                    (D) the number of applications that were approved, 
                denied, or withdrawn, and the number of applications 
                where final action was taken; and
                    (E) the number of applications and notifications 
                pending review at the end of the fiscal year;
            (8) summary of export license data by export identification 
        code and dollar value by country;
            (9) an identification of processing time by--
                    (A) overall average, and
                    (B) top 25 export identification codes;
            (10) an assessment of the effectiveness of multilateral 
        regimes, and a description of negotiations regarding export 
        controls;
            (11) a description of the significant differences between 
        the export control requirements of the United States and those 
        of other multilateral control regime members, the specific 
        differences between United States requirements and those of 
        other significant supplier countries, and a description of the 
        extent to which the executive branch intends to address the 
differences;
            (12) an assessment of the costs of export controls;
            (13) a description of the progress made toward achieving 
        the goals established for the Department dealing with export 
        controls under the Government Performance Results Act; and
            (14) any other reports required by this Act to be submitted 
        to the Committee on Banking, Housing, and Urban Affairs of the 
        Senate and the Committee on International Relations of the 
        House of Representatives.
    (c) Congressional Notification.--Whenever the Secretary determines, 
in consultation with other appropriate departments and agencies, that a 
significant violation of this Act poses a direct and imminent threat to 
United States national security interests, the Secretary, in 
consultation with other appropriate departments and agencies, shall 
advise the Committee on Banking, Housing, and Urban Affairs of the 
Senate and the Committee on International Relations of the House of 
Representatives of such violation consistent with the protection of law 
enforcement sources, methods, and activities.
    (d) Federal Register Publication Requirements.--Whenever 
information under this Act is required to be published in the Federal 
Register, such information shall, in addition, be made available on the 
appropriate Internet website of the Department.

SEC. 802. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Repeal.--The Export Administration Act of 1979 (50 U.S.C. App. 
2401 et seq.) is repealed.
    (b) Energy Policy and Conservation Act.--(1) Section 103 of the 
Energy Policy and Conservation Act (42 U.S.C. 6212) is repealed.
    (2) Section 251(d) of the Energy Policy and Conservation Act (42 
U.S.C. 6271(d)) is repealed.
    (c) Alaska Natural Gas Transportation Act.--Section 12 of the 
Alaska Natural Gas Transportation Act of 1976 (15 U.S.C. 719j) is 
repealed.
    (d) Mineral Leasing Act.--Section 28(u) of the Mineral Leasing Act 
(30 U.S.C. 185(u)) is repealed.
    (e) Exports of Alaskan North Slope Oil.--Section 28(s) of the 
Mineral Leasing Act (30 U.S.C. 185(s)) is repealed.
    (f) Disposition of Certain Naval Petroleum Reserve Products.--
Section 7430(e) of title 10, United States Code, is repealed.
    (g) Outer Continental Shelf Lands Act.--Section 28 of the Outer 
Continental Shelf Lands Act (43 U.S.C. 1354) is repealed.
    (h) Forest Resources Conservation and Shortage Act.--Section 491 of 
the Forest Resource Conservation and Shortage Relief Act of 1990 (16 
U.S.C. 620c) is repealed.
    (i) Arms Export Control Act.--
            (1) Section 38 of the Arms Export Control Act (22 U.S.C. 
        2778) is amended--
                    (A) in subsection (e)--
                            (i) in the first sentence, by striking 
                        ``subsections (c)'' and all that follows 
                        through ``12 of such Act,'' and inserting 
                        ``subsections (b), (c), (d) and (e) of section 
                        603 of the Export Administration Act of 1999, 
                        by subsections (a) and (b) of section 607 of 
                        such Act, and by section 702 of such Act,''; 
                        and
                            (ii) in the third sentence, by striking 
                        ``11(c) of the Export Administration Act of 
                        1979'' and inserting ``603(c) of the Export 
                        Administration Act of 1999''; and
                    (B) in subsection (g)(1)(A)(ii), by inserting ``or 
                section 603 of the Export Administration Act of 1999'' 
                after ``1979''.
            (2) Section 39A(c) of the Arms Export Control Act is 
        amended--
                    (A) by striking ``subsections (c),'' and all that 
                follows through ``12(a) of such Act'' and inserting 
                ``subsections (c), (d), and (e) of section 603, section 
                608(c), and subsections (a) and (b) of section 607, of 
                the Export Administration Act of 1999''; and
                    (B) by striking ``11(c)'' and inserting ``603(c)''.
            (3) Section 40(k) of the Arms Export Control Act (22 U.S.C. 
        2780(k)) is amended--
                    (A) by striking ``11(c), 11(e), 11(g), and 12(a) of 
                the Export Administration Act of 1979'' and inserting 
                ``603(b), 603(c), 603(e), 607(a), and 607(b) of the 
                Export Administration Act of 1999''; and
                    (B) by striking ``11(c)'' and inserting ``603(c)''.
    (j) Other Provisions of Law.--
            (1) Section 5(b)(4) of the Trading with the Enemy Act (50 
        U.S.C. App. 5(b)(4)) is amended by striking ``section 5 of the 
        Export Administration Act of 1979, or under section 6 of that 
        Act to the extent that such controls promote the 
        nonproliferation or antiterrorism policies of the United 
        States'' and inserting ``titles II and III of the Export 
        Administration Act of 1999''.
            (2) Section 502B(a)(2) of the Foreign Assistance Act of 
        1961 (22 U.S.C. 2304(a)(2)) is amended in the second sentence--
                    (A) by striking ``Export Administration Act of 
                1979'' the first place it appears and inserting 
                ``Export Administration Act of 1999''; and
                    (B) by striking ``Act of 1979)'' and inserting 
                ``Act of 1999)''.
            (3) Section 140(a) of the Foreign Relations Authorization 
        Act, Fiscal Years 1988 and 1989 (22 U.S.C. 2656f(a)) is 
        amended--
                    (A) in paragraph (1)(B), by inserting ``or section 
                310 of the Export Administration Act of 1999'' after 
                ``Act of 1979''; and
                    (B) in paragraph (2), by inserting ``or 310 of the 
                Export Administration Act of 1999'' after ``6(j) of the 
                Export Administration Act of 1979''.
            (4) Section 40(e)(1) of the State Department Basic 
        Authorities Act of 1956 (22 U.S.C. 2712(e)(1)) is amended by 
        striking ``section 6(j)(1) of the Export Administration Act of 
        1979'' and inserting ``section 310 of the Export Administration 
        Act of 1999''.
            (5) Section 205(d)(4)(B) of the State Department Basic 
        Authorities Act of 1956 (22 U.S.C. 4305(d)(4)(B)) is amended by 
        striking ``section 6(j) of the Export Administration Act of 
        1979'' and inserting ``section 310 of the Export Administration 
        Act of 1999''.
            (6) Section 110 of the International Security and 
        Development Cooperation Act of 1980 (22 U.S.C. 2778a) is 
        amended by striking ``Act of 1979'' and inserting ``Act of 
        1999''.
            (7) Section 203(b)(3) of the International Emergency 
        Economic Powers Act (50 U.S.C. 1702(b)(3)) is amended by 
        striking ``section 5 of the Export Administration Act of 1979, 
        or under section 6 of such Act to the extent that such controls 
        promote the nonproliferation or antiterrorism policies of the 
        United States'' and inserting ``the Export Administration Act 
        of 1999''.
            (8) Section 1605(a)(7)(A) of title 28, United States Code, 
        is amended by striking ``section 6(j) of the Export 
        Administration Act of 1979 (50 U.S.C. App. 2405(j))'' and 
        inserting ``section 310 of the Export Administration Act of 
        1999''.
            (9) Section 2332d(a) of title 18, United States Code, is 
        amended by striking ``section 6(j) of the Export Administration 
        Act of 1979 (50 U.S.C. App. 2405)'' and inserting ``section 310 
        of the Export Administration Act of 1999''.
            (10) Section 620H(a)(1) of the Foreign Assistance Act of 
        1961 (22 U.S.C. 2378(a)(1)) is amended by striking ``section 
        6(j) of the Export Administration Act of 1979 (50 U.S.C. App. 
        2405(j))'' and inserting ``section 310 of the Export 
        Administration Act of 1999''.
            (11) Section 1621(a) of the International Financial 
        Institutions Act (22 U.S.C. 262p-4q(a)) is amended by striking 
        ``section 6(j) of the Export Administration Act of 1979 (50 
        U.S.C. App. 2405(j))'' and inserting ``section 310 of the 
        Export Administration Act of 1999''.
            (12) Section 1956(c)(7)(D) of title 18, United States Code, 
        is amended by striking ``section 11 (relating to violations) of 
        the Export Administration of 1979'' and inserting ``section 603 
        (relating to penalties) of the Export Administration Act of 
        1999''.

SEC. 803. SAVINGS PROVISIONS.

    (a) In General.--All delegations, rules, regulations, orders, 
determinations, licenses, or other forms of administrative action which 
have been made, issued, conducted, or allowed to become effective 
under--
            (1) the Export Control Act of 1949, the Export 
        Administration Act of 1969, the Export Administration Act of 
        1979, or the International Emergency Economic Powers Act when 
        invoked to maintain and continue the Export Administration 
        regulations, or
            (2) those provisions of the Arms Export Control Act which 
        are amended by section 802,
and are in effect on the date of enactment of this Act, shall continue 
in effect according to their terms until modified, superseded, set 
aside, or revoked under this Act or the Arms Export Control Act.
    (b) Administrative and Judicial Proceedings.--
            (1) Export administration act.--This Act shall not affect 
        any administrative or judicial proceedings commenced or any 
        application for a license made, under the Export Administration 
        Act of 1979 or pursuant to Executive Order 12924, which is 
        pending at the time this Act takes effect. Any such 
        proceedings, and any action on such application, shall continue 
        under the Export Administration Act of 1979 as if that Act had 
        not been repealed.
            (2) Other provisions of law.--This Act shall not affect any 
        administrative or judicial proceeding commenced or any 
        application for a license made, under those provisions of the 
        Arms Export Control Act which are amended by section 802, if 
        such proceeding or application is pending at the time this Act 
        takes effect. Any such proceeding, and any action on such 
        application, shall continue under those provisions as if those 
        provisions had not been amended by section 802.
    (c) Treatment of Certain Determinations.--Any determination with 
respect to the government of a foreign country under section 6(j) of 
the Export Administration Act of 1979, or Executive Order 12924, that 
is in effect on the day before the date of enactment of this Act, 
shall, for purposes of this title or any other provision of law, be 
deemed to be made under section 310 of this Act until superseded by a 
determination under such section 310.
    (d) Implementation.--The Secretary shall make any revisions to the 
Export Administration regulations required by this Act no later than 
180 days after the date of enactment of this Act.`