I

104TH CONGRESS

1ST SESSION H. R. 361

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

IN THE HOUSE OF REPRESENTATIVES

JANUARY 4, 1995

Mr. ROTH introduced the following bill; which was referred to the Committee

on International Relations

A BILL

To provide authority to control exports, and for other

purposes.

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

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Omnibus Export Ad5 ministration Act of 1995’’.

6 SEC. 2. TABLE OF CONTENTS.

7 The table of contents of this Act is as follows:

Sec. 1. Short title.

Sec. 2. Table of contents.

TITLE I—EXPORT ADMINISTRATION

Sec. 101. Short title.

Sec. 102. Findings.

Sec. 103. Policy statement.

Sec. 104. General provisions.
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Sec. 105. Multilateral controls.

Sec. 106. Emergency controls.

Sec. 107. Short supply controls.

Sec. 108. Foreign boycotts.

Sec. 109. Procedures for processing export license applications; other inquiries.

Sec. 110. Violations.

Sec. 111. Controlling proliferation activity.

Sec. 112. Administrative and judicial review.

Sec. 113. Enforcement.

Sec. 114. Export control authorities and procedures.

Sec. 115. Annual report.

Sec. 116. Definitions.

Sec. 117. Effects on other Acts.

Sec. 118. Secondary Arab boycott.

Sec. 119. Conforming amendments to other laws.

Sec. 120. Expiration date.

Sec. 121. Savings provision.

TITLE II—NUCLEAR PROLIFERATION PREVENTION ACT

Sec. 201. Short title.

PART A—REPORTING ON NUCLEAR EXPORTS

Sec. 211. Reports to Congress.

Sec. 212. Effective date.

PART B—SANCTIONS FOR NUCLEAR PROLIFERATION

Sec. 221. Imposition of sanctions on persons engaging in export activities that

contribute to proliferation.

Sec. 222. Eligibility for assistance.

Sec. 223. Role of international financial institutions.

Sec. 224. Prohibition on assisting nuclear proliferation through the provision of

financing.

Sec. 225. Export-Import Bank.

Sec. 226. Sanctions against countries involved in transfer of nuclear weapons

or design information or components.

Sec. 227. Amendment to the Arms Export Control Act.

Sec. 228. Reward.

Sec. 229. Reports.

Sec. 230. Technical correction.

Sec. 231. Definitions.

Sec. 232. Effective date.

PART C—INTERNATIONAL ATOMIC ENERGY AGENCY

Sec. 241. Bilateral and multilateral initiatives.

Sec. 242. IAEA internal reforms.

Sec. 243. Reporting requirement.

Sec. 244. Definitions.

PART D—REPEAL OF DUPLICATIVE PROVISIONS

Sec. 251. Repeal.
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1 TITLE I—EXPORT

2 ADMINISTRATION

3 SEC. 101. SHORT TITLE.

4 This title may be cited as the ‘‘Export Act of 1995’’.

5 SEC. 102. FINDINGS.

6 The Congress makes the following findings:

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

9 States exports should be restricted only for critical

10 national security, nonproliferation, and foreign policy

11 reasons.

12 (2) Exports of certain commodities and tech13 nology may adversely affect the national security of

14 the United States by making a direct and significant

15 contribution to the military potential of individual

16 countries or by disseminating the capability to

17 produce or use weapons of mass destruction. There18 fore, the administration of export controls should

19 emphasize the control of these exports.

20 (3) The acquisition of dual use commodities

21 and technology by those countries and end users

22 whose actions or policies run counter to United

23 States national security interests may enhance the

24 military capabilities of those countries, particularly

25 their ability to produce and deliver nuclear, chemi-
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1 cal, and biological weapons. This enhancement

2 threatens the security of the United States and its

3 allies, and places additional demands on the defense

4 budget of the United States. Availability to certain

5 countries and end users of items that contribute to

6 certain military capabilities or the proliferation of

7 weapons of mass destruction is a fundamental con8 cern of the United States and should be eliminated

9 through negotiations and other appropriate means

10 whenever possible.

11 (4) Exporting is critical to the economic health

12 of the United States and, therefore, to its national

13 security as well. With the growing importance of ex14 ports to sustained United States economic growth

15 and vitality, restrictions on exports must be evalu16 ated in terms of their effects on the United States

17 economy as well as on its national security. Restric18 tions on exports from the United States have had se19 rious adverse effects on economic competitiveness

20 and domestic employment, particularly when re21 straints applied by the United States have been

22 more extensive than those imposed by other coun23 tries or when United States export control policy is

24 uncertain.
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1 (5) Export controls cannot be the sole instru2 ment of the United States to prevent a country or

3 end user from developing weapons of mass destruc4 tion. For this reason, export controls should be ap5 plied as part of a comprehensive response to security

6 threats.

7 (6) The national security of the United States

8 depends not only on wise foreign policies and a

9 strong defense, but also a vibrant national economy.

10 To be truly effective, export controls should be ap11 plied uniformly by all suppliers.

12 (7) Effective export controls also must be fo13 cused only on those items that materially contribute

14 to a country’s or an end user’s military potential or

15 potential to produce or use weapons of mass destruc16 tion.

17 (8) Unilateral export controls are generally not

18 effective in influencing the behavior of other govern19 ments or impeding access to controlled countries of

20 controlled items. In most situations, unilateral con21 trols alone impede access to United States sources

22 of supply without affecting the ability of controlled

23 countries to obtain controlled items elsewhere. More24 over, unilateral controls permit foreign competitors

25 to serve markets the United States Government de-
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1 nies to United States firms and workers, thus im2 pairing the reliability of United States suppliers in

3 comparison with their foreign competitors. At the

4 same time, the need to lead the international com5 munity or overriding national security or foreign pol6 icy interests may justify unilateral controls in spe7 cific cases.

8 (9) The United States recognizes the impor9 tance of comprehensive enforcement measures to

10 maximize the effectiveness of multilateral controls.

11 (10) The United States export control system

12 must not be overly restrictive or bureaucratic, or un13 dermine the competitive position of American indus14 try. The export control system must be efficient, re15 sponsive, transparent, and effective.

16 (11) Export restrictions that negatively affect

17 the United States industrial base ultimately weaken

18 United States military capabilities and lead to de19 pendencies on foreign sources for key components.

20 (12) Minimization of restrictions on exports of

21 agricultural commodities and products is of critical

22 importance to the maintenance of a sound agricul23 tural sector, to a positive contribution to the balance

24 of payments, to reducing the level of Federal ex25 penditures for agricultural support programs, and to
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1 United States cooperation in efforts to eliminate

2 malnutrition and world hunger.

3 SEC. 103. POLICY STATEMENT.

4 It is the policy of the United States to do the follow5 ing:

6 (1) To stem the proliferation of weapons of

7 mass destruction and the means to deliver them

8 by—

9 (A) leading international efforts to control

10 the proliferation of chemical, biological, and nu11 clear weapons and missiles;

12 (B) controlling involvement of United

13 States persons in, and contributions by United

14 States persons to, foreign programs intended to

15 develop weapons of mass destruction or missiles

16 and the means to design, develop, produce,

17 stockpile, or use them; and

18 (C) implementing international treaties or

19 other agreements that require controls on ex20 ports of designated items, reports on the pro21 duction, processing, consumption, and exports

22 of such items, and compliance with verification

23 programs.

24 (2) To restrict the export of items that would

25 directly and significantly contribute to the military
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1 potential of countries so as to pose a threat to the

2 national security of the United States or its allies.

3 (3) To—

4 (A) minimize uncertainties in export con5 trol policy; and

6 (B) encourage trade with all countries with

7 which the United States has diplomatic or trad8 ing relations, except those countries with which

9 such trade has been determined by the Presi10 dent to be against the national interest, and to

11 strongly encourage the trading partners of the

12 United States not to trade with those other

13 countries.

14 (4) To restrict export trade when necessary to

15 protect the domestic economy from the excessive

16 drain of scarce materials and to reduce the serious

17 inflationary impact of foreign demand.

18 (5) To increase the effectiveness of and the reli19 ance of the United States upon multilateral coordi20 nation of controls through effective export control

21 regimes that—

22 (A) clearly identify countries and entities

23 to which, and end uses for which, exports of

24 items are to be controlled,
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1 (B) incorporate lists of controlled items

2 that are critical to the control objectives,

3 (C) establish uniform criteria and proce4 dures for licensing, and

5 (D) implement means to curtail member

6 countries from granting licenses that render in7 effective license denials by the United States.

8 (6) To impose unilateral controls, under the

9 procedures and conditions set forth in section 106,

10 only when it is essential to the national security or

11 foreign policy of the United States, and only after

12 full consideration of the economic impact of the con13 trols and their effectiveness in achieving their in14 tended objectives.

15 (7) To make all licensing determinations in a

16 timely manner so undue delays in the licensing proc17 ess will not cause a United States firm to lose an

18 export sale.

19 (8) To maintain a presumption of approval of

20 license applications for authority to export items for

21 civil end use.

22 (9) To use export controls to encourage other

23 countries to take immediate steps to prevent the use

24 of their territories or resources to aid, encourage, or

25 give sanctuary to those persons involved in directing,
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1 supporting, or participating in acts of international

2 terrorism.

3 (10)(A) To counteract restrictive trade prac4 tices or boycotts fostered or imposed by foreign

5 countries against other countries friendly to the

6 United States or against any United States person.

7 (B) To encourage and, in specified cases, re8 quire United States persons engaged in the export of

9 commodities, technology, and other information to

10 refuse to take actions, including furnishing informa11 tion or entering into or implementing agreements,

12 which have the effect of furthering or supporting the

13 restrictive trade practices or boycotts fostered or im14 posed by any foreign country against a country

15 friendly to the United States or against any United

16 States person.

17 (11) To consolidate export control functions

18 and increase administrative accountability, and

19 thereby better serve the exporting public by reducing

20 and eliminating overlapping, conflicting, and incon21 sistent regulatory burdens.

22 (12) To minimize restrictions on the export of

23 agricultural commodities and products.
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1 SEC. 104. GENERAL PROVISIONS.

2 (a) TYPES OF LICENSES.—Under such conditions as

3 the Secretary may impose, consistent with the provisions

4 of this title, and subject to paragraph (2)(B), the Sec5 retary may require the following types of licenses for ex6 ports of commodities and technology controlled under this

7 title:

8 (1) SPECIFIC EXPORTS AND REEXPORTS.—An

9 individual validated license, authorizing a specific ex10 port.

11 (2) MULTIPLE EXPORTS AND REEXPORTS.—(A)

12 Validated licenses authorizing multiple exports, in

13 lieu of an individual validated license for each such

14 export.

15 (B)(i) A distribution license, authorizing mul16 tiple exports of general application computers to any

17 country other than a sanctioned country. The Sec18 retary shall grant such distribution licenses strictly

19 on the basis of the reliability of the applicant and

20 foreign consignees with respect to the prevention of

21 diversion of commodities or technology, consistent

22 with section 105(a)(1). Not later than 30 days after

23 an application is submitted under section 109 for

24 such a distribution license to export general applica25 tion computers, the Secretary shall grant the license

26 with respect to such distributors and end users that
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1 the Secretary determines to be reliable. The Sec2 retary may deny the license application with respect

3 to those distributors and end users that present a

4 risk of diversion of commodities or technology, di5 rectly or indirectly, consistent with the provisions of

6 section 105(a)(1).

7 (ii) For purposes of this subparagraph, a ‘‘sanc8 tioned country’’ is any country—

9 (I) the government of which the Secretary

10 of State has determined to be a government

11 that has repeatedly provided support for acts of

12 international terrorism; or

13 (II) against which the United States main14 tains an embargo on all, or substantially all, ex15 ports pursuant to the International Emergency

16 Economic Powers Act or the Trading With The

17 Enemy Act.

18 (iii) For purposes of this subparagraph, the

19 term ‘‘general application computers’’ means any

20 computer system, computer networking equipment,

21 peripheral to a computer system, or combination

22 thereof, on which export controls are in effect under

23 section 105, except the following:

24 (I) Supercomputers.
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1 (II) Computers specially designed for use

2 in connection with the capability described in

3 subparagraph (A) or (B) of section 105(a)(1).

4 (III) Computers specially designed for use

5 in connection with the surreptitious interception

6 of wire or oral communications.

7 (b) GENERAL PROHIBITION.—Notwithstanding any

8 other provision of this title, no person may export any item

9 which such person knows will materially contribute to a

10 program or activity for the design, development, or manu11 facture of a weapon of mass destruction or missile in a

12 country that is not a member of, or a cooperating country

13 with respect to, an export control regime controlling such

14 weapon or missile.

15 (c) UNITED STATES COMMODITY CONTROL INDEX.—

16 (1) IN GENERAL.—The Secretary shall—

17 (A) establish and maintain a United States

18 Commodity Control Index which shall identify

19 all commodities and technology on which con20 trols are imposed under this title;

21 (B) specify the license requirements appli22 cable to the items on the control index; and

23 (C) designate countries, and end uses or

24 end users, to which exports of commodities and

25 technology are controlled.
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1 (2) CONTENTS.—The control index shall—

2 (A) consist of a security control list of all

3 commodities and technology on which export

4 controls are imposed under section 105, an

5 emergency control list of all commodities and

6 technology on which export controls are im7 posed under section 106, and a short supply

8 control list of all commodities on which export

9 controls are imposed under section 107;

10 (B) for each item on the control index,

11 specify with particularity the performance

12 (where applicable) and other identifying charac13 teristics of the item and provide a rationale for

14 why the item is on the control list;

15 (C) identify countries, and end uses or end

16 users, to which exports are controlled, including

17 specific projects and end users of concern,

18 cross-referenced with the list of commodities

19 and technology on which export controls are im20 posed; and

21 (D) be sufficiently specific and clear as to

22 guide exporters and licensing officers in deter23 minations of licensing requirements under this

24 title.
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1 (3) LICENSING OF CONTROL INDEX COMMOD2 ITIES AND TECHNOLOGY.—A validated license may

3 be required for the export of those commodities and

4 technology that are specifically and clearly identified

5 on the control index to countries, end uses, and end

6 users so designated on the control index. No author7 ity or permission may be required to export com8 modities and technology not so identified to any

9 country, end use, or end user not so designated.

10 (d) DELEGATION OF AUTHORITY.—Subject to the

11 provisions of this title, the President may delegate the

12 power, authority, and discretion conferred upon the Presi13 dent by this title to such departments, agencies, and offi14 cials of the Government as the President considers appro15 priate, except that no authority under this title may be

16 delegated to, or exercised by, any official of any depart17 ment or agency the head of which is not appointed by the

18 President, by and with the advice and consent of the Sen19 ate. The President may not delegate or transfer his power,

20 authority, or discretion to overrule or modify any rec21 ommendation or decision made by the Secretary, the Sec22 retary of Defense, or the Secretary of State under this

23 title and may not delegate the authority under section

24 106(a)(4).
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1 (e) NOTIFICATION OF THE PUBLIC; CONSULTATION

2 WITH BUSINESS.—The Secretary shall keep the public

3 fully apprised of changes in export control policy and pro4 cedures instituted in conformity with this title with a view

5 to encouraging trade. The Secretary shall consult regu6 larly with representatives of a broad spectrum of enter7 prises, labor organizations, and citizens interested in or

8 affected by export controls, in order to obtain their views

9 on United States export control policy and the foreign

10 availability of items subject to controls.

11 (f) EXPORT ADVISORY COMMITTEES.—

12 (1) APPOINTMENT.—Upon his or her own ini13 tiative or upon the written request of representatives

14 of a substantial segment of any industry which pro15 duces any items subject to export controls under this

16 title or being considered for such controls, the Sec17 retary shall appoint export advisory committees with

18 respect to any such items. Each such committee

19 shall consist of representatives of United States in20 dustry and Government, including the Department

21 of Commerce and other appropriate departments

22 and agencies of the Government. The Secretary shall

23 permit the widest possible participation by the busi24 ness community on the export advisory committees.
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1 (2) FUNCTIONS.—Export advisory committees

2 appointed under paragraph (1) shall advise and as3 sist the Secretary, and any other department, agen4 cy, or official of the Government carrying out func5 tions under this title, on actions (including all as6 pects of controls imposed or proposed) designed to

7 carry out the policies of this title concerning the

8 items with respect to which such export advisory

9 committees were appointed. Such committees, where

10 they have expertise in such matters, shall be con11 sulted on questions involving—

12 (A) technical matters,

13 (B) worldwide availability and actual utili14 zation of production technology,

15 (C) licensing procedures which affect the

16 level of export controls applicable to any items,

17 (D) revisions of the security control list (as

18 provided in section 105(j)), including proposed

19 revisions of multilateral controls in which the

20 United States participates,

21 (E) the issuance of regulations,

22 (F) the impact and interpretation of exist23 ing regulations,

24 (G) processes and procedures for review of

25 licenses and policy,
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1 (H) any other questions relating to actions

2 designed to carry out this title, and

3 (I) the operation and conduct of inter4 national business transactions.

5 Nothing in this subsection shall prevent the United

6 States Government from consulting, at any time,

7 with any person representing an industry or the gen8 eral public, regardless of whether such person is a

9 member of an export advisory committee. Members

10 of the public shall be given a reasonable opportunity,

11 pursuant to regulations prescribed by the Secretary,

12 to present evidence to such committees.

13 (3) REIMBURSEMENT OF EXPENSES.—Upon

14 the request of any member of any export advisory

15 committee appointed under paragraph (1), the Sec16 retary may, if the Secretary determines it to be ap17 propriate, reimburse such member for travel, sub18 sistence, and other necessary expenses incurred by

19 such member in connection with the duties of such

20 member.

21 (4) CHAIRPERSON.—Each export advisory com22 mittee appointed under paragraph (1) shall elect a

23 chairperson, and shall meet at least every 3 months

24 at the call of the chairperson, unless the chairperson

25 determines, in consultation with the other members
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1 of the committee, that such a meeting is not nec2 essary to achieve the purposes of this subsection.

3 Each such committee shall be terminated after a pe4 riod of 2 years, unless extended by the Secretary for

5 additional periods of 2 years each. The Secretary

6 shall consult each such committee on such termi7 nation or extension of that committee.

8 (5) ACCESS TO INFORMATION.—To facilitate

9 the work of the export advisory committees ap10 pointed under paragraph (1), the Secretary, in con11 junction with other departments and agencies par12 ticipating in the administration of this title, shall

13 disclose to each such committee adequate informa14 tion, consistent with national security, pertaining to

15 the reasons for the export controls which are in ef16 fect or contemplated for the items or policies for

17 which that committee furnishes advice.

18 (6) POLICY ADVICE.—The Secretary shall ap19 point a group of knowledgeable individuals from

20 businesses affected by export controls to provide ad21 vice to the Secretary on export control policy issues.

22 The chairperson of such group shall represent export

23 advisory committees regarding review of control lists

24 maintained by export control regimes and United

25 States proposals to export control regimes.
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1 (g) DEVELOPMENT AND REVIEW OF THE CONTROL

2 LIST.—The Secretary of State, in consultation with ap3 propriate departments and agencies, shall be responsible

4 for conducting negotiations with other countries regarding

5 multilateral arrangements for restricting the export of

6 items to carry out the policies of this title. All appropriate

7 departments and agencies shall consult among themselves

8 and with the appropriate export advisory committees ap9 pointed under subsection (f) to develop initial technical pa10 rameters and product definitions in connection with the

11 development of proposals within the United States Gov12 ernment to be made to multilateral regimes.

13 (h) RIGHT OF EXPORT.—No authority or permission

14 to export may be required under this title, or under regula15 tions issued under this title, except to carry out the poli16 cies set forth in section 103.

17 (i) INTERNATIONAL OBLIGATIONS UNDER TREA18 TIES.—Notwithstanding any other provision of this title

19 containing limitations on authority to control exports, the

20 Secretary, in consultation with the Secretary of State, may

21 impose controls on exports to a particular country or coun22 tries in order to fulfill obligations of the United States

23 under resolutions of the United Nations and under trea24 ties to which the United States is a party.
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1 (j) FEES.—No fee may be charged in connection with

2 the submission or processing of an export license applica3 tion under this title.

4 SEC. 105. MULTILATERAL CONTROLS.

5 (a) AUTHORITY.—

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

7 policies set forth in paragraphs (1), (2), and (5) of

8 section 103, the President may, in accordance with

9 this section, prohibit or curtail the export of any

10 commodities or technology subject to the jurisdiction

11 of the United States, or exported by any person sub12 ject to the jurisdiction of the United States, if such

13 commodities or technology—

14 (A) would directly and significantly enable

15 a country or end user to acquire the capability

16 to develop, produce, stockpile, use, or deliver

17 weapons of mass destruction; or

18 (B) would directly and significantly con19 tribute to the military capability of a country so

20 as to pose a threat to the national security of

21 the United States or its allies.

22 (2) EXERCISE OF AUTHORITY.—The authority

23 granted by this subsection shall be implemented by

24 means of export licenses required by the Secretary.
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1 (3) CONSISTENCY WITH EXPORT CONTROL RE2 GIMES.—Any provision of this title that provides

3 that no authority or permission to export may be re4 quired under this section shall not apply to the ex5 tent that the applicable export control regime pro6 vides otherwise.

7 (b) SECURITY CONTROL LIST.—

8 (1) IN GENERAL.—(A) The Secretary shall, in

9 consultation with appropriate departments and agen10 cies, establish and maintain, as part of the control

11 index, a security control list, comprised of all com12 modities and technology on which export controls are

13 in effect under this section, and the countries, and

14 end uses or end users, to which the controls apply.

15 The security control list shall clearly identify the

16 specific commodities and technology the export of

17 which is controlled, and each country, and end use

18 or end user, to which such exports are controlled.

19 (B) If a determination is made, with respect to

20 the inclusion of items on the security control list,

21 that affects the items controlled by an export control

22 regime, the Secretary of State shall propose to that

23 regime any revisions that would be necessary as a

24 result of the determination. Such determination shall
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1 become effective only to the extent such revisions are

2 agreed to by the export control regime.

3 (2) CONTROLLED COMMODITIES AND TECH4 NOLOGY.—Export controls shall be imposed under

5 this section if, and may be imposed under this sec6 tion only if, the export controls are agreed to by an

7 export control regime which includes export control

8 purposes, items subject to control, policy of review

9 for license applications, and all controlled destina10 tions, and end uses or end users.

11 (3) CONTROLLED COUNTRIES, END USES, AND

12 END USERS.—A country shall be designated a con13 trolled country, and an end use or end user shall be

14 designated a controlled end use or controlled end

15 user, with respect to a particular commodity or tech16 nology on the security control list if exports of such

17 commodity or technology to such country, end use,

18 or end user are controlled multilaterally pursuant to

19 the agreement of an export control regime described

20 in paragraph (2).

21 (c) EXPORT LICENSING POLICIES FOR CONTROLLED

22 COUNTRIES AND CONTROLLED END USES OR END

23 USERS.—

24 (1) EXPORTS TO CONTROLLED COUNTRIES,

25 AND END USES OR END USERS.—
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1 (A) IN GENERAL.—The Secretary shall re2 quire authority or permission to export com3 modities and technology on the security control

4 list to a controlled country, a controlled end

5 use, or a controlled end user.

6 (B) PRESUMPTION OF APPROVAL FOR

7 CIVIL END USES.—Subject to subparagraph

8 (C), applications to export commodities or tech9 nology for civil end uses shall carry a presump10 tion of approval.

11 (C) PRESUMPTION OF DENIAL FOR CON12 TROLLED END USERS.—Exports to controlled

13 end users of commodities or technology on

14 which controls are in effect under this section

15 shall carry a presumption of denial.

16 (D) BASIS FOR DENIAL.—Licenses may be

17 denied under this section only if the commodity

18 or technology meets the requirements of sub19 paragraph (A) or (B) of subsection (a)(1).

20 (2) CIVIL END USE.—A determination under

21 paragraph (1)(B) of whether commodities or tech22 nology are for civil end use shall be based on the fol23 lowing criteria:

24 (A) Whether the stated end use is civil.
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1 (B) Whether the civil application of the

2 commodities or technology is well established in

3 countries other than controlled countries.

4 (C) Whether the commodities or tech5 nology proposed for export are reasonable in

6 quantity and quality for the proposed end use.

7 (D) The risk of diversion to an unauthor8 ized use or consignee, including whether such

9 diversion can be verified.

10 (d) EXPORT CONTROL REGIMES AND LICENSING

11 POLICIES.—For the purposes of creating effective multi12 lateral export controls and strengthening the controls im13 posed by export control regimes, the Secretary of State

14 shall, with respect to each export control regime, pursue

15 negotiations with other members of such regime to accom16 plish the following objectives:

17 (1) Development of a common list of commod18 ities and technology to which export controls are ap19 plied, and a common list of countries, and end uses

20 or end users, to which exports are controlled, by

21 members of the regime.

22 (2) Agreement on the same treatment, to be ap23 plied by all members of the regime, of exports and

24 reexports to members of the regime, cooperating
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1 countries, and other countries that are not controlled

2 countries.

3 (3) National procedures resulting in comparable

4 implementation and enforcement of export controls

5 among the members of the regime, including laws

6 providing appropriate civil and criminal penalties

7 and statutes of limitations sufficient to deter poten8 tial violations.

9 (4) Periodic meetings of high-level representa10 tives of governments participating in the regime for

11 the purpose of coordinating national export control

12 policies and issuing policy guidance for dissemina13 tion to exporters in participating countries.

14 (5) Establishment of procedures for regular

15 consultation among members of the regime on pro16 posed export license applications that includes con17 sultation with individuals with sufficient technical

18 expertise to assess the licensing status of exports

19 and to ensure the reliability of end users.

20 (6) An enforcement mechanism that provides

21 authority for adequately trained enforcement officers

22 to investigate and prevent illegal exports.

23 (7) Development of a system of export control

24 documentation to verify the movement of commod25 ities and technology.
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1 (8) Establishment of procedures for the coordi2 nation and sharing of information on licensing, end

3 users, and enforcement.

4 (9) The application of adequate national re5 sources to carry out paragraphs (1) through (8).

6 (e) INCENTIVES FOR COUNTRIES TO PARTICIPATE IN

7 OR COOPERATE WITH EXPORT CONTROL REGIMES.—

8 (1) GENERAL RULE FOR REGIMES.—Unless the

9 Secretary, in consultation with the Secretary of

10 State, determines that an existing export control re11 gime has failed to meet the objectives set forth in

12 subsection (d), exports to all countries that are

13 members of, or cooperating countries with respect

14 to, that regime shall be subject to the licensing

15 treatment set forth in this subsection. The Secretary

16 shall publish each determination under this para17 graph in the Federal Register.

18 (2) FAVORABLE LICENSING TREATMENT.—Sub19 ject to paragraphs (3) and (4), unless an export con20 trol regime is the subject of a determination under

21 paragraph (1), no authority or permission may be

22 required for exports of any commodity or technology

23 controlled by that regime to or among members of

24 that regime or cooperating countries with respect to

25 that regime.
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1 (3) EXCEPTION.—If the Secretary determines

2 that a member of an export control regime, a co3 operating country with respect to such regime, or an

4 end user in a country that is such a regime member

5 or in such a cooperating country is engaging in a

6 pattern and practice of noncompliance with controls

7 agreed to by the regime—

8 (A) if the license treatment under para9 graph (2) is provided by the United States uni10 laterally, the Secretary shall terminate such

11 treatment with respect to that noncomplying

12 member, cooperating country, or end user dur13 ing the period in which the determination is in

14 effect; or

15 (B) in any other case the Secretary shall

16 seek a similar determination by the other mem17 bers of the regime concerning such noncompli18 ance and, if such a determination is made, the

19 Secretary shall propose the suspension of favor20 able licensing treatment of exports to that non21 complying regime member, cooperating country,

22 or end user by all members of the regime dur23 ing the period in which that determination is in

24 effect.
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1 (4) EXCEPTION FOR EXPORTS TO CERTAIN

2 COUNTRIES.—(A) Should some of the members of

3 an export control regime decide to require licenses

4 for the export to other members of the regime or to

5 cooperating countries of certain items controlled by

6 the regime, the United States may require such li7 censes if—

8 (i) the Secretary determines that a prepon9 derance of the world’s supply of the items in10 volved would be subject to such export license

11 requirements; or

12 (ii) after making a determination that a

13 preponderance of the world’s supply of the

14 items involved would not be subject to such ex15 port license requirements, the Secretary, in con16 sultation with the Secretary of State and the

17 Secretary of Defense, determines that the ab18 sence of a requirement of export licenses for

19 such items to such members of the regime or

20 cooperating countries would prove detrimental

21 to the national security of the United States.

22 In any case in which the Secretary makes a deter23 mination under clause (ii), the Secretary shall pub24 lish that determination, together with a concise
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•HR 361 IH

1 statement of its basis and the estimated impact of

2 the determination.

3 (B) The Secretary shall notify the Congress at

4 least 30 days before a license requirement described

5 in subparagraph (A) goes into effect.

6 (f) CREATION AND ENHANCEMENT OF MULTILAT7 ERAL CONTROL REGIMES.—

8 (1) EXPANSION OF MEMBERSHIP OF RE9 GIMES.—For each existing export control regime and

10 for each export control regime the United States

11 seeks to create, the Secretary of State, in consulta12 tion with the Secretary, shall seek—

13 (A) to expand the membership of the re14 gime to include all countries that produce or ex15 port items controlled pursuant to agreement by

16 the regime and share the objectives of the re17 gime;

18 (B) the adoption of procedures for effective

19 implementation of the rules and guidelines of

20 the regime through uniform and consistent in21 terpretations of export controls agreed to by the

22 regime;

23 (C) agreement to create a secretariat, for

24 each regime that seeks the prevention of the

25 proliferation of weapons of mass destruction or
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•HR 361 IH

1 missiles, that would call regular meetings of

2 members of the regime and establish rules for

3 the regime; and

4 (D) agreement within each regime not to

5 render ineffective the denial of licenses by other

6 regime members and to establish procedures for

7 the coordination and regular exchange of infor8 mation about such denials.

9 (2) TERRORIST THREATS TO REGIME MEM10 BERS.—

11 (A) PRESUMPTION OF DENIAL FOR LI12 CENSES.—For each existing export control re13 gime and for each export control regime the

14 United States seeks to create, the Secretary of

15 State, in consultation with the Secretary, shall

16 pursue negotiations with other members of such

17 regime to establish a presumption of denial for

18 licenses for exports that would directly contrib19 ute to acts of terrorism directed at 1 or more

20 regime members.—

21 (B) REPORTS TO CONGRESS.—The Sec22 retary shall annually report to the Committee

23 on International Relations of the House of Rep24 resentatives and the Committee on Banking,

25 Housing, and Urban Affairs of the Senate on
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•HR 361 IH

1 the progress made toward meeting the objec2 tives set forth in subparagraph (A).

3 (3) DISCLOSURE OF NONPROPRIETARY INFOR4 MATION.—The Secretary of State shall propose the

5 following to each export control regime:

6 (A) Full disclosure on a confidential basis

7 to all members of the regime of all

8 nonproprietary information relating to all li9 censes granted for the export of items con10 trolled by the regime, consistent with the pro11 tection of intelligence sources and methods.

12 (B) A list of controlled items of particular

13 sensitivity for which such disclosure shall be

14 given 15 days before the license is issued.

15 (g) TRANSPARENCY OF MULTILATERAL CONTROL

16 REGIMES.—

17 (1) PUBLICATION OF INFORMATION ON EACH

18 EXISTING REGIME.—Within 6 months after the date

19 of the enactment of this Act, the Secretary shall

20 publish in the Federal Register the following infor21 mation with respect to export controls agreed to by

22 each multilateral control regime existing on the date

23 of the enactment of this Act:

24 (A) Purposes of the controls.

25 (B) Members of the regime.
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•HR 361 IH

1 (C) Licensing policy.

2 (D) Items subject to the controls, together

3 with all public notes, understandings, and other

4 aspects of the agreement of the regime, and all

5 changes thereto.

6 (E) Controlled countries, controlled end

7 uses, and, to the extent not inconsistent with

8 requirements of the regime, controlled end

9 users.

10 (F) Rules of interpretation.

11 (G) Major policy actions.

12 (H) The rules and procedures of the re13 gime for establishing and modifying any matter

14 described in subparagraphs (A) through (G)

15 and for reviewing export license applications.

16 (2) INFORMATION REGARDING CONTROLLED

17 END USERS.—The United States shall propose to

18 each export control regime to permit a member of

19 the regime to publish the controlled end users (in20 cluding projects of concern) agreed to by the regime.

21 (3) NEW REGIMES.—Within 2 months after

22 joining or organizing a new export control regime,

23 the Secretary shall publish the information described

24 in subparagraphs (A) through (H) of paragraph (1).
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•HR 361 IH

1 (4) PUBLICATION OF CHANGES.—The Secretary

2 shall publish in the Federal Register any changes in

3 the information published under this subsection

4 within 2 months after the applicable regime adopts

5 such changes.

6 (h) EFFECTIVENESS OF MULTILATERAL CONTROL

7 REGIMES AND IMPLEMENTATION BY THEIR MEMBERS.—

8 (1) ANNUAL EVALUATION.—At least once each

9 year, the Secretary shall evaluate the effectiveness of

10 each export control regime and the effectiveness of

11 the implementation of the regime by each of its

12 members, including the United States. Such evalua13 tion shall be included in the annual report issued

14 under section 115.

15 (2) CONTENTS.—The evaluation under para16 graph (1) shall include the following for the calendar

17 year for which the report is issued:

18 (A) Items not controlled by the export con19 trol regime that the United States believes

20 should be controlled if the regime is to achieve

21 its control purposes effectively.

22 (B) Countries that are sources of foreign

23 availability for each item controlled by agree24 ment of the regime. Such countries shall in25 clude members of the regime, cooperating coun-
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•HR 361 IH

1 tries with respect to the regime, and countries

2 that are not members of the regime.

3 (C) Countries that are risks for diverting

4 controlled items to controlled countries, end

5 uses, or end users.

6 (D) Members of the regime that have not,

7 in the judgment of the Secretary, implemented

8 the objectives set forth in subsection (d).

9 (E) The extent to which the regime and

10 each of its members have adopted and are im11 plementing uniform licensing policies.

12 (F) The extent to which the licensing pol13 icy of the regime and each of its members ade14 quately prevents the export licensing decisions

15 of one member of the regime from rendering in16 effective the denial of license applications by

17 another member.

18 (3) COMMENTS.—Before beginning each evalua19 tion under this subsection, the Secretary shall re20 quest comments from the public and the export advi21 sory committees appointed under section 104(f) re22 garding the effectiveness of each export control re23 gime. The Secretary shall give the public at least 30

24 days to provide comments under this paragraph.

25 (i) FOREIGN AVAILABILITY.—
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•HR 361 IH

1 (1) FOREIGN AVAILABILITY TO CONTROLLED

2 COUNTRIES.—

3 (A) IN GENERAL.—The Secretary, in con4 sultation with the Secretary of Defense, other

5 appropriate Government departments and agen6 cies, and appropriate export advisory commit7 tees appointed under section 104(f), shall re8 view, on a continuing basis, the availability of

9 controlled items to controlled countries from

10 sources outside the United States, including

11 countries that participate with the United

12 States in export control regimes.

13 (B) ITEMS CONTROLLED BY COCOM.—(i)

14 In any case in which the Secretary determines

15 under paragraph (3), in accordance with proce16 dures and criteria which the Secretary shall es17 tablish by regulation, that any item controlled

18 for export pursuant to the agreement of

19 COCOM is available in fact, or will be available

20 in fact within 2 years in the future, to con21 trolled countries from sources outside the Unit22 ed States in sufficient quantity and of com23 parable quality so that the requirement of a

24 validated license for the export of such item is
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•HR 361 IH

1 or would be ineffective in achieving the pur2 poses of this section—

3 (I) the President shall propose to

4 COCOM that export controls on such item

5 be eliminated, or

6 (II) if the President determines that

7 the absence of export controls on the item

8 would prove detrimental to the national se9 curity of the United States, the President

10 shall actively pursue negotiations with the

11 governments of the appropriate foreign

12 countries for the purpose of eliminating

13 such availability.

14 No later than the commencement of such nego15 tiations, the President shall notify in writing

16 the Committee on Banking, Housing, and

17 Urban Affairs of the Senate and the Committee

18 on International Relations of the House of Rep19 resentatives that the President has begun such

20 negotiations and why the President believes it is

21 important to the national security that export

22 controls on the item involved be maintained.

23 (ii) If, within 6 months after the Presi24 dent’s determination under clause (i)(II) that

25 export controls be maintained notwithstanding
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•HR 361 IH

1 foreign availability, the foreign availability has

2 not been eliminated, the Secretary may not,

3 after the end of that 6-month period, require a

4 validated license for the export of the item in5 volved. The President may extend the 6-month

6 period for an additional period of 12 months if

7 the President certifies to the Congress that the

8 negotiations involved are progressing and that

9 the absence of the export controls involved

10 would prove detrimental to the national security

11 of the United States.

12 (C) ITEMS CONTROLLED BY OTHER RE13 GIMES.—(i) In any case in which the Secretary

14 determines under paragraph (3), in accordance

15 with procedures and criteria which the Sec16 retary shall establish by regulation, that any

17 item controlled for export pursuant to an export

18 control regime other than COCOM is available

19 in fact, or will be available in fact within 2

20 years in the future, to controlled countries from

21 sources outside the United States in sufficient

22 quantity and of comparable quality so that the

23 requirement of a validated license for the export

24 of such item is or would be ineffective in achiev25 ing the purposes of this section, the President
39

•HR 361 IH

1 shall actively pursue negotiations with the gov2 ernments of the appropriate foreign countries

3 for the purpose of eliminating such availability.

4 No later than the commencement of such nego5 tiations, the President shall notify in writing

6 the Committee on Banking, Housing, and

7 Urban Affairs of the Senate and the Committee

8 on International Relations of the House of Rep9 resentatives that the President has begun such

10 negotiations, indicating whether the President

11 believes it is important that export controls on

12 the item involved be maintained to avoid a sig13 nificant risk to the national security interests of

14 the United States.

15 (ii) If, within 120 days after a determina16 tion of foreign availability described in clause

17 (i) is made, the foreign person or persons that

18 are or will be the source of such foreign avail19 ability have not taken the steps necessary to

20 eliminate such availability, the President shall

21 propose to the export control regime controlling

22 the commodities or technology that are the sub23 ject of the foreign availability determination—

24 (I) that such controls be eliminated,

25 or
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•HR 361 IH

1 (II) that the members of the regime

2 impose all of the sanctions described in

3 clause (iii) on such foreign person or per4 sons.

5 (iii) The sanctions referred to in clause (ii)

6 to be imposed on a foreign person or persons

7 are the following:

8 (I) A prohibition on the export to

9 such person or persons of all items con10 trolled by such export control regime.

11 (II) A prohibition on the import of all

12 goods that are produced by such person or

13 persons.

14 (III) A prohibition on procurement by

15 such governments of any services, commod16 ities, technology, or other products from or

17 produced by such person or persons.

18 (iv) If, within 90 days after a proposal

19 under clause (ii)(II) regarding sanctions is

20 made to an export control regime, such regime

21 has not agreed to such proposal, the President

22 shall either propose to such regime that the ex23 port controls on the commodities or technology

24 that are the subject of the foreign availability

25 determination be eliminated, or report to the
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•HR 361 IH

1 Congress that the President has determined

2 that elimination of the controls would create a

3 significant risk to the national security interests

4 of the United States. Such report shall include

5 the basis for such determination.

6 (2) NOTICE OF ALL FOREIGN AVAILABILITY AS7 SESSMENTS.—Whenever the Secretary undertakes a

8 foreign availability assessment under this subsection,

9 the Secretary shall publish notice of such assessment

10 in the Federal Register.

11 (3) PROCEDURES FOR MAKING DETERMINA12 TIONS.—

13 (A) PROCEDURES.—(i) The Secretary shall

14 make a foreign availability determination under

15 paragraph (1) on the Secretary’s own initiative,

16 upon the certification of an export advisory

17 committee appointed under section 104(f) with

18 respect to the commodities or technology con19 cerning which the certification is made, or upon

20 receipt of an allegation from an export license

21 applicant that such availability exists. In mak22 ing any such determination, the Secretary shall

23 accept the representations of applicants made

24 in writing and supported by reasonable evi25 dence, unless such representations are contra-
42

•HR 361 IH

1 dicted by reliable evidence, including scientific

2 or physical examination, expert opinion based

3 upon adequate factual information, or intel4 ligence information.

5 (ii) In making determinations of foreign

6 availability, the Secretary may consider such

7 factors as cost, reliability, the availability and

8 reliability of spare parts and the cost and qual9 ity thereof, maintenance programs, durability,

10 quality of end products produced by the item

11 subject to the determination, and scale of pro12 duction.

13 (iii) For purposes of this subparagraph,

14 the term ‘‘evidence’’ may include such items as

15 foreign manufacturers’ catalogues, brochures,

16 operations or maintenance manuals, articles

17 from reputable trade publications, photographs,

18 and depositions based upon eyewitness ac19 counts.

20 (B) CERTIFICATIONS BY EXPORT ADVI21 SORY COMMITTEES.—At the same time as an

22 export advisory committee submits a certifi23 cation to the Secretary under subparagraph

24 (A)(i), the committee shall submit the certifi25 cation to the Congress. The Secretary shall in-
43

•HR 361 IH

1 vestigate the foreign availability so certified

2 and, not later than 90 days after the certifi3 cation is made, shall submit a report to the ex4 port advisory committee and the Congress stat5 ing that—

6 (i) the foreign availability does exist,

7 and the applicable steps are being taken

8 under paragraph (1); or

9 (ii) the foreign availability does not

10 exist.

11 To the extent necessary, the report may be sub12 mitted on a classified basis.

13 (C) ALLEGATIONS BY EXPORT LICENSE

14 APPLICANTS.—Within 4 months after receiving

15 an allegation described in subparagraph (A)(i)

16 from an export license applicant, the Secretary

17 shall determine whether the foreign availability

18 exists, and shall so notify the applicant. If the

19 Secretary has determined that the foreign avail20 ability exists, the Secretary shall, upon making

21 such determination, submit the determination

22 for review to other departments and agencies as

23 the Secretary considers appropriate. The Sec24 retary’s determination of foreign availability

25 shall not require the concurrence or approval of
44

•HR 361 IH

1 any such department or agency. Not later than

2 30 days after the Secretary makes the deter3 mination, the Secretary shall respond in writing

4 to the applicant and submit for publication in

5 the Federal Register, that—

6 (i) the foreign availability does exist,

7 and the applicable steps are being taken

8 under paragraph (1); or

9 (ii) the foreign availability does not

10 exist.

11 (4) SHARING OF INFORMATION.—Each depart12 ment or agency of the United States, including any

13 intelligence agency, and all contractors with any

14 such department or agency, shall, upon the request

15 of the Secretary and consistent with the protection

16 of intelligence sources and methods as determined by

17 the Director of Central Intelligence, furnish informa18 tion to the Department of Commerce concerning for19 eign availability of items subject to export controls

20 under this section, including allowing access to any

21 information from a laboratory or other facility with22 in such department or agency.

23 (5) CONGRESSIONAL NOTIFICATIONS.—The

24 Secretary shall annually notify the Committee on

25 Foreign Affairs of the House of Representatives,
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•HR 361 IH

1 and the Committee on Banking, Housing, and

2 Urban Affairs of the Senate, of all allegations of for3 eign availability received from export license appli4 cants under paragraph (3), and the actions the Sec5 retary has taken pursuant to such allegations.

6 (j) REVIEW OF CONTROLLED ITEMS.—

7 (1) IN GENERAL.—The Secretary shall review

8 all commodities and technology on the security con9 trol list maintained under subsection (b) at least an10 nually. At the conclusion of each review, the Sec11 retary shall justify the inclusion of each item on the

12 security control list, remove items from the security

13 control list, change the specifications of items on the

14 list, or add items to the list, in order to meet the

15 requirements of subsection (a)(1). The data devel16 oped from such reviews shall be used in formulating

17 United States proposals for revision of multilateral

18 controls in the applicable export control regimes.

19 (2) CONSIDERATIONS.—In conducting the an20 nual review, the Secretary shall—

21 (A) consult with the appropriate export ad22 visory committees appointed under section

23 104(f) and consider recommendations of such

24 committees with respect to proposed changes in

25 the security control list;
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•HR 361 IH

1 (B) consider the results of foreign avail2 ability determinations made under subsection

3 (i);

4 (C) consider comments received pursuant

5 to the notice of review provided under para6 graph (3)(B); and

7 (D) consult with other appropriate depart8 ments or agencies.

9 (3) PROCEDURES.—

10 (A) DURATION OF REVIEW.—The annual

11 review required under paragraph (1) may not

12 extend beyond 180 days after such review is

13 begun.

14 (B) NOTICE OF REVIEW.—Before begin15 ning each annual review, the Secretary shall

16 publish a notice of that review in the Federal

17 Register and shall provide a 30-day period for

18 comments and submission of data, with or with19 out oral presentation, by interested Government

20 agencies, exporters, and other interested par21 ties.

22 (C) REVISIONS.—The Secretary shall make

23 a determination of any revisions in the security

24 control list not later than 30 days after the end

25 of the review period. In making such determina-
47

•HR 361 IH

1 tion, the Secretary shall consult with the appro2 priate departments or agencies. The concur3 rence or approval of any other department or

4 agency shall not be required before any such re5 vision is made.

6 (D) PROPOSALS TO EXPORT CONTROL RE7 GIMES.—If a revision of the security control list

8 under this paragraph affects the items con9 trolled by an export control regime, the Sec10 retary of State shall propose such revision to

11 that regime. Such revision shall become effec12 tive only to the extent such revision is agreed

13 to by the export control regime.

14 (E) PUBLICATION OF REVISIONS.—The

15 Secretary shall publish in the Federal Register

16 any revisions in the list, with an explanation of

17 the reasons for the revisions.

18 (k) INDEXING.—The Secretary shall develop, with the

19 assistance of the export advisory committees appointed

20 under section 104(f), methodologies and procedures for in21 dexing items on the security control list where perform22 ance capabilities are relevant and measurable. Such meth23 odologies and procedures shall provide for increases in the

24 performance levels of commodities and technology on the

25 security control list and shall provide for the technical
48

•HR 361 IH

1 specifications below which no authority or permission to

2 export is required as compared to the most technologically

3 advanced commercially available version of the same or

4 equivalent commodities or technology. Such methodologies

5 and procedures shall be published in the Federal Register

6 and used in the annual review of the security control list

7 under subsection (j).

8 (l) REVIEW OF EXPORT CONTROLS ON COMPUTER

9 EQUIPMENT AND TECHNOLOGY.—

10 (1) IN GENERAL.—In order to ensure that re11 quirements of validated licenses are periodically re12 moved as computer equipment, computer commu13 nications and networking equipment, computer soft14 ware, and related technology, that are subject to

15 such requirements become obsolete with respect to

16 the specific objectives of the export controls requir17 ing such licenses, the Secretary shall conduct peri18 odic reviews of such controls. The Secretary shall

19 complete such a review not later than 6 months

20 after the date of the enactment of this Act, and

21 thereafter as part of the reviews conducted under

22 subsection (j).

23 (2) REVIEW ELEMENTS.—In conducting each

24 review under paragraph (1), the Secretary shall do
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•HR 361 IH

1 the following with respect to the export controls de2 scribed in paragraph (1):

3 (A) OBJECTIVES OF CONTROLS.—The Sec4 retary shall identify the specific objectives of

5 the export controls, as part of a comprehensive

6 strategy to prevent the proliferation of weapons

7 of mass destruction, for the 12-month period

8 following completion of the review, for each

9 country or group of countries for which a vali10 dated license is required. When an objective of

11 an export control is to defer the development of

12 a specific capability in such country or group of

13 countries, the Secretary shall specify for what

14 period of time the controls are expected to defer

15 such capability.

16 (B) QUANTITY AND PERFORMANCE.—The

17 Secretary shall estimate, for the 12-month pe18 riod described in subparagraph (A), the quan19 tity and performance (measured in Composite

20 Theoretical Performance or other relevant per21 formance metrics) of computer systems that

22 must be obtained by each country or group of

23 countries for which a validated license is re24 quired in order to defeat the objectives of the

25 export controls.
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•HR 361 IH

1 (C) AVAILABILITY TO CONTROLLED DES2 TINATIONS.—The Secretary shall evaluate the

3 effectiveness of the export controls in achieving

4 their specific objectives, including explicit de5 scriptions of the availability from sources out6 side the United States, during the 12-month pe7 riod described in subparagraph (A), to con8 trolled countries of computer equipment, com9 puter communications and networking equip10 ment, computer software, and related tech11 nology on which the export controls are in ef12 fect.

13 (D) ECONOMIC IMPACT.—The Secretary

14 shall evaluate the economic impact, during the

15 12-month period described in subparagraph

16 (A), of the export controls on exporting compa17 nies, including estimates of lost sales, loss in

18 market share, and administrative overhead.

19 (3) INCREASE IN THRESHOLDS.—

20 (A) INCREASES.—After completing each

21 review under this subsection, the Secretary

22 shall, after consultation with appropriate de23 partments or agencies, increase, if warranted by

24 the findings of the review, the following export

25 control thresholds, consistent with the obliga-
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•HR 361 IH

1 tions of the United States under export control

2 regimes:

3 (i) The performance levels at which

4 computer systems are eligible for delivery

5 under a distribution license or other license

6 authorizing multiple exports.

7 (ii) The performance levels defining a

8 ‘‘supercomputer’’.

9 (iii) The performance levels at which

10 an individual validated license is required

11 for the export to a controlled country of

12 computer systems and peripherals, soft13 ware, parts, and communications equip14 ment normally supplied with such com15 puter systems.

16 In any recommendation for or publication of

17 such increase, the Secretary shall include the

18 specific rationale for the increase.

19 (B) PROPOSALS TO MULTILATERAL RE20 GIMES.—The Secretary of State shall, within 30

21 days after a determination by the Secretary to

22 increase thresholds, propose to the other mem23 bers of the applicable export control regime the

24 elimination of the applicable controls on the

25 items with respect to which such determination
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•HR 361 IH

1 is made, in accordance with the procedures of

2 the regime, and publish a notice of such pro3 posal in the Federal Register.

4 (4) REPORT.—The Secretary shall transmit to

5 the Congress, and to any export advisory committee

6 appointed under section 104(f) with respect to com7 puter systems, a report on the findings of each re8 view conducted under this subsection, addressing

9 each requirement set forth in paragraph (2).

10 (5) HEARINGS.—The Secretary shall conduct

11 public hearings not less than once each year in order

12 to solicit information from all interested parties on

13 all matters to be addressed in each review conducted

14 under this subsection.

15 (6) REMOVAL OF CONTROLS ON MASS-MARKET

16 COMPUTER EQUIPMENT.—

17 (A) MASS-MARKET COMPUTER EQUIPMENT

18 DEFINED.—For purposes of this paragraph, the

19 term ‘‘mass-market computer equipment’’

20 means any computer system, computer

21 networking equipment, peripheral to a computer

22 system, part or subassembly of a computer sys23 tem, or combination thereof, on which export

24 controls are in effect under this section, and

25 which will have been installed for end use out-
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•HR 361 IH

1 side the United States in a quantity exceeding

2 100,000 units over a 12-month period, as deter3 mined under subparagraph (B).

4 (B) ANTICIPATORY REVIEW OF MASS-MAR5 KET COMPUTER EQUIPMENT.—Not later than—

6 (i) 6 months after the date of the en7 actment of this Act, and

8 (ii) the end of each 1-year period oc9 curring thereafter,

10 the Secretary shall, in consultation with the

11 Computer Systems Technical Advisory Commit12 tee (or successor export advisory committee),

13 industry groups, and computer equipment pro14 ducers, identify those items described in sub15 paragraph (A) (including computer systems dif16 ferentiated in terms of Composite Theoretical

17 Performance) that will be installed for end use

18 outside the United States in a quantity exceed19 ing 100,000 units during the 12-month period

20 beginning on the applicable date described in

21 clause (i) or (ii). For purposes of this para22 graph, estimates of numbers of items that will

23 be installed shall be based on reliable estimates

24 provided by producers of such items.
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1 (C) ACTION BY THE SECRETARY.—Not

2 later than 30 days after an item is determined

3 by the Secretary under subparagraph (B) to be

4 mass-market computer equipment, the Sec5 retary of State shall propose to the export con6 trol regime controlling the equipment the

7 eliminaton of controls on such equipment in ac8 cordance with the procedures of the appropriate

9 regime and shall publish a notice of such pro10 posal in the Federal Register.

11 (m) TRADE SHOWS.—Consistent with the agreements

12 of applicable multilateral export control regimes, an appli13 cation for a license for the export to a controlled country

14 of any commodity on which export controls are in effect

15 under this section, without regard to the technical speci16 fications of the commodity, for the purpose of demonstra17 tion or exhibition at a trade show shall carry a presump18 tion of approval if—

19 (1) the United States exporter retains title to,

20 and maintains effective control of, the commodity,

21 and complies with any safeguard requirement im22 posed by the Secretary, during the entire period in

23 which the commodity is in the controlled country;

24 and
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•HR 361 IH

1 (2) the exporter removes the commodity from

2 the controlled country within a reasonable period of

3 time after the conclusion of the trade show, as de4 fined in regulations issued by the Secretary.

5 (n) STUDY ON COMPUTER EXPORT CONTROLS.—

6 (1) ARRANGEMENTS FOR AND CONTENT OF

7 STUDY.—

8 (A) ARRANGEMENTS FOR CONDUCTING

9 STUDY.—The Secretary, not later than 60 days

10 after the date of the enactment of this Act,

11 shall enter into appropriate arrangements with

12 the National Academy of Sciences and the Na13 tional Academy of Engineering (hereafter in

14 this subsection referred to as the ‘‘Academies’’)

15 to conduct a comprehensive study on the extent

16 to which exports of computers can be effectively

17 controlled, and the policy reasons for maintain18 ing such controls.

19 (B) REQUIREMENT OF STUDY.—Recogniz20 ing the need to enhance the competitiveness of

21 the United States computer industry while pre22 venting sensitive technology from being used to

23 develop weapons of mass destruction by con24 trolled countries, the study shall—
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•HR 361 IH

1 (i) examine the trends of the com2 puter industry, including those toward new

3 and more powerful computer systems

4 based upon ‘‘Parallel Computing’’ and

5 ‘‘Virtual Parallel Processing’’, and their ef6 fect on the extent to which exports of com7 puter systems can be effectively controlled,

8 with respect to the factors described in

9 clause (ii);

10 (ii) examine the factors that make it

11 increasingly difficult to control the export

12 of computers, including the size and

13 expandability of many modern computer

14 systems and the availability of such com15 puter systems from foreign sources; and

16 (iii) the effect of export controls on

17 the competitiveness of the United States

18 computer industry.

19 (2) ADVISORY PANEL.—In conducting the study

20 under paragraph (1), the Academies shall appoint an

21 Advisory Panel of not more than 12 members who

22 shall be selected from among individuals who, by vir23 tue of their experience and expertise, are knowledge24 able in relevant scientific, business, legal, or admin25 istrative matters. No individual may serve as a mem-
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1 ber who is an elected or appointed official or em2 ployee in the executive, legislative, or judicial branch

3 of any government. In selecting members of the Ad4 visory Panel, the Academies shall seek suggestions

5 from the President, the Congress, and representa6 tives of industry and the academic community.

7 (3) EXECUTIVE BRANCH COOPERATION.—The

8 Secretary, the Secretary of Defense, the Secretary of

9 State, the Director of the Central Intelligence Agen10 cy, and the head of any department or agency that

11 exercises authority under this title—

12 (A) shall furnish to the Academies, upon

13 request and under appropriate safeguards, clas14 sified or unclassified information which the

15 Academies determine to be necessary for the

16 purposes of conducting the study required by

17 this subsection; and

18 (B) shall work with the Academies on such

19 problems related to the study as the Academies

20 consider necessary.

21 (4) REPORT.—Under the direction of the Advi22 sory Panel, the Academies shall prepare and submit

23 to the President and the Congress, not later than 9

24 months after entering into the arrangements re25 ferred to in paragraph (1), a report which contains
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1 a detailed statement of findings and conclusions of

2 the Academies from the study conducted under

3 paragraph (1), together with their recommendations

4 for the complete removal of controls from computers

5 or specifying the level of technology to which con6 trols on computers should be reduced.

7 SEC. 106. EMERGENCY CONTROLS.

8 (a) AUTHORITY.—

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

10 policy set forth in paragraphs (6) and (9) of section

11 103, the President may, in accordance with the pro12 visions of this section, unilaterally prohibit or curtail

13 the export of any commodity or technology subject

14 to the jurisdiction of the United States or exported

15 by any person subject to the jurisdiction of the Unit16 ed States.

17 (2) EXERCISE OF AUTHORITY.—The authority

18 contained in this section shall be exercised by the

19 Secretary, in consultation with the Secretary of

20 State, the Secretary of Defense, and such other de21 partments and agencies as the President considers

22 appropriate.

23 (3) EXPIRATION OF AUTHORITY.—

24 (A) IN GENERAL.—Any controls imposed

25 under this section shall expire 6 months after
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1 they are imposed, unless they are terminated

2 earlier by the President or unless they are ex3 tended under this section, except that such con4 trols may be adopted as multilateral controls

5 under section 105 or included in an embargo

6 described in subsection (f)(1) that is imposed

7 by the President under the International Emer8 gency Economic Powers Act, the Trading with

9 the Enemy Act, or other provision of law other

10 than this title. Any extension or subsequent ex11 tension of the controls under this section shall

12 be for a period of not more than 1 year each.

13 The controls shall expire at the end of each

14 such extension unless they are terminated ear15 lier by the President or unless they are further

16 extended under this section, except that such

17 controls may be adopted as multilateral controls

18 under section 105 or included in an embargo

19 described in the first sentence of this subpara20 graph.

21 (B) EXCEPTION FOR MULTILATERAL

22 AGREEMENTS.—Subparagraph (A) shall not

23 apply to controls imposed by the President in

24 order to fulfill obligations of the United States

25 under resolutions of the United Nations or
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1 under treaties to which the United States is a

2 party. If such a resolution or treaty ceases to

3 be in effect, controls imposed by the President

4 pursuant to such resolution or treaty shall im5 mediately cease to be in effect.

6 (4) CRITERIA.—The President may impose con7 trols under this section only if the President—

8 (A) determines that the controls are essen9 tial to the national security or foreign policy of

10 the United States or its allies, including the

11 prevention of acts of international terrorism;

12 (B) determines that no other alternative

13 means can achieve the national security or for14 eign policy objectives of the United States with15 in a reasonable period of time, including all

16 other possible sanctions;

17 (C) determines that the controls can rea18 sonably be expected to achieve their intended

19 objectives after having taken into consideration

20 other factors, including the availability from

21 one or more countries of comparable commod22 ities and technology to those on which the con23 trols are to be imposed;
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1 (D) determines that the United States has

2 the ability to enforce all aspects of the proposed

3 controls effectively;

4 (E) determines that the effect of the pro5 posed controls on the export performance of the

6 United States, the competitive position of the

7 United States as a supplier of items, or on the

8 economic well-being of individual United States

9 companies and their employees and commu10 nities does not exceed the benefits to the for11 eign policy or national security interests of the

12 United States; and

13 (F) dentifies those commodities and tech14 nology to be controlled, determines that they

15 must be controlled in order to achieve the in16 tended purpose of the controls, and describes

17 the reasons for selecting such items.

18 (5) NEGOTIATIONS.—The President shall com19 mence, through the Secretary of State, within 10

20 days after the imposition of controls under this sec21 tion, negotiations with other countries to adopt the

22 controls so that such controls may be imposed under

23 section 105, unless such controls are imposed under

24 paragraph (3)(B).
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1 (b) CONSULTATION WITH INDUSTRY.—The Sec2 retary in every possible instance shall consult with and

3 seek advice from affected United States industries and ex4 port advisory committees appointed under section 104(f)

5 before the imposition, expansion, or extension of any ex6 port control under this section.

7 (c) CONSULTATION WITH OTHER COUNTRIES.—

8 When expanding or extending export controls under this

9 section (unless such action is taken under subsection

10 (a)(3)(B)), the Secretary of State, in consultation with the

11 Secretary, shall, at the earliest appropriate opportunity,

12 consult with the countries with which the United States

13 maintains export controls cooperatively, and with other

14 countries, as appropriate, to advise them of the reasons

15 for the action and to urge them to adopt similar controls,

16 so that the controls may be imposed under section 105.

17 (d) CONSULTATIONS WITH THE CONGRESS.—

18 (1) CONSULTATIONS.—The Secretary may im19 pose, expand, or extend export controls under this

20 section only after consultation with the Congress, in21 cluding the Committee on International Relations of

22 the House of Representatives and the Committee on

23 Banking, Housing, and Urban Affairs of the Senate.
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1 (2) REPORTS.—The Secretary may not impose

2 or expand controls under subsection (a) until the

3 Secretary has submitted to the Congress a report—

4 (A) addressing each of the criteria set

5 forth in subparagraphs (A) through (F) of sub6 section (a)(4);

7 (B) specifying the purpose of the controls;

8 (C) describing the nature, the subjects,

9 and the results of, or plans for, the consultation

10 with industry under subsection (b) and with

11 other countries under subsections (a)(5) and

12 (c);

13 (D) specifying the nature and results of

14 any alternative means attempted to achieve the

15 objectives of the controls, or the reasons for im16 posing or expanding the controls without at17 tempting any such alternative means; and

18 (E) describing the availability from other

19 countries of items comparable to the items sub20 ject to the controls, and describing the nature

21 and results of the efforts made to secure the co22 operation of foreign governments in controlling

23 the foreign availability of such comparable com24 modities or technology.
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1 Such report shall also indicate how such controls will

2 further significantly the policies of the United States

3 as set forth in section 103 or will further its de4 clared international obligations.

5 (3) SUBMISSION OF REPORT TO GAO.—Each re6 port required by paragraph (2) shall, at the same

7 time it is submitted to the Congress, also be submit8 ted to the General Accounting Office for the purpose

9 of assessing the report’s full compliance with the

10 purpose of this subsection.

11 (e) SEEKING MULTILATERAL SUPPORT FOR UNILAT12 ERAL CONTROLS.—The Secretary and the Secretary of

13 State shall have a continuing duty to seek support, by

14 other countries and by multilateral export control regimes,

15 for all controls imposed under this section.

16 (f) PROCEDURES AND LIMITATIONS ON EMERGENCY

17 CONTROLS.—

18 (1) IMPOSITION OF AN EMBARGO.—An embargo

19 under subsection (a)(3)(A) shall include the prohibi20 tion of all exports to and imports from the country

21 against which the controls under this section were

22 imposed, except that such an embargo need not in23 clude a prohibition on exports of items described in

24 section 114(k).

25 (2) CESSATION OF EMERGENCY CONTROLS.—
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1 (A) IN GENERAL.—Controls imposed under

2 this section on commodities or technology shall

3 cease to be in effect immediately upon—

4 (i) the imposition of multilateral con5 trols under section 105 on the same com6 modities and technology to the country or

7 end user, or for the end use, with respect

8 to which the controls were imposed under

9 this section; or

10 (ii) the imposition, under the Inter11 national Emergency Economic Powers Act,

12 the Trading with the Enemy Act, or other

13 provision of law, of an embargo described

14 in paragraph (1).

15 (B) CONVERSION TO MULTILATERAL

16 AGREEMENTS.—If the President imposes con17 trols on commodities or technology to a country

18 or end user, or for an end use, under this sec19 tion in order to fulfill obligations of the United

20 States under resolutions of the United Nations

21 or under a treaty to which the United States is

22 a party, any controls imposed prior thereto

23 under this section on the same commodities or

24 technology to the same country or end user, or
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1 for the same end use, shall immediately cease

2 to be in effect.

3 (3) LIMITATIONS ON REIMPOSITION.—Controls

4 which have ceased to be in effect under subsection

5 (a)(3), and which have not been extended under sub6 section (g), may not be reimposed by the President

7 under subsection (a) for a period of 6 months begin8 ning on the date on which the original controls ex9 pire.

10 (g) EXTENSION OF EMERGENCY CONTROLS.—

11 (1) REPORT.—If the President decides to ex12 tend controls imposed under subsection (a), which

13 are due to expire under subsection (a)(3), the Presi14 dent shall, not later than 60 calendar days before

15 the expiration of such controls, transmit to the Con16 gress a report on the proposed extension, setting

17 forth the reasons for the proposed extension in detail

18 and specifying the period of time, which may not ex19 ceed 1 year, for which the controls are proposed to

20 be extended. In particular, such report shall—

21 (A) contain determinations by the Presi22 dent—

23 (i) that the controls continue to be es24 sential to the national security or foreign

25 policy of the United States;
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1 (ii) that no other alternative means

2 can achieve the national security or foreign

3 policy objectives of the United States with4 in a reasonable period of time, as described

5 in subsection (a)(4)(B);

6 (iii) that the United States has dem7 onstrated the ability to enforce all aspects

8 of the controls effectively; and

9 (iv) that the effect of the controls on

10 those factors described in subsection

11 (a)(4)(E) has not exceeded the benefits to

12 the foreign policy or national security in13 terests of the United States;

14 (B) identify those commodities and tech15 nology to be controlled, specify that they must

16 be controlled in order to achieve the intended

17 purpose of the controls, and describe the rea18 sons for the selection of such items;

19 (C) specify the reasons why negotiations

20 required under subsection (a)(5) or (c) failed to

21 result in the adoption of the controls under sec22 tion 105, and the prospects for the multilateral

23 adoption of such controls;

24 (D) specify the reasons why an embargo

25 described in paragraph (1) is not presently jus-
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1 tified to achieve the national security or foreign

2 policy objectives of the United States;

3 (E) include an assessment by the Secretary

4 of the economic consequences of the controls

5 during the preceding 4 months (in the case of

6 the first extension of the controls under this

7 section) or during the preceding 10 months (in

8 the case of any subsequent extension of the con9 trols under this section), including estimates of

10 any lost United States exports and jobs;

11 (F) include an assessment by the Secretary

12 of State of the objectives of the controls and the

13 extent to which the controls have attained those

14 objectives during the preceding 4 months (in

15 the case of the first extension of the controls

16 under this section) or during the preceding 10

17 months (in the case of any subsequent exten18 sion of the controls under this section); and

19 (G) include an assessment by the Secretary

20 of Defense of the impact the controls have had

21 on the national security of the United States in

22 the preceding 4 months (in the case of the first

23 extension of the controls under this section) or

24 in the preceding 10 months (in the case of any
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1 subsequent extension of the controls under this

2 section).

3 (2) CONSIDERATION OF EXTENSION.—The con4 trols shall remain in effect unless the Congress,

5 within 60 calendar days after its receipt of the re6 port under paragraph (1), enacts a joint resolution

7 pursuant to paragraph (3) disapproving the exten8 sion of the controls. Any controls remaining in effect

9 shall continue for the period specified in the report

10 or until terminated by the President, whichever oc11 curs first, but in no case longer than 1 year after

12 the date on which the controls would otherwise ex13 pire under subsection (a)(3), unless the Congress by

14 law terminates the controls. If the Congress, within

15 60 calendar days after the date of its receipt of such

16 report, enacts a joint resolution disapproving the ex17 tension of such controls, then such controls shall

18 cease to be effective upon the expiration of that 60-

19 day period.

20 (3) JOINT RESOLUTIONS.—

21 (A) DEFINITION.—For purposes of this

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

23 only a joint resolution the matter after the re24 solving clause of which is as follows: ‘‘That,

25 pursuant to section 106(g) of the Export Act of
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1 1995, the President may not extend emergency

2 controls as specified in the report submitted to

3 the Congress on llllllllll.’’,

4 with the blank space being filled with the ap5 propriate date.

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

7 a report is submitted to the House of Rep8 resentatives and the Senate under paragraph

9 (1), a joint resolution with respect to the exten10 sion of controls specified in such report shall be

11 introduced (by request) in the House of Rep12 resentatives by the chairman of the Committee

13 on International Relations, for the chairman

14 and the ranking minority member of the Com15 mittee, or by Members of the House designated

16 by the chairman and ranking minority member;

17 and shall be introduced (by request) in the Sen18 ate by the majority leader of the Senate, for the

19 majority leader and the minority leader of the

20 Senate, or by Members of the Senate des21 ignated by the majority leader and the minority

22 leader of the Senate. If either House of Con23 gress is not in session on the day on which such

24 a report is submitted, the joint resolution shall

25 be introduced in that House, as provided for in
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1 the preceding sentence, on the first day there2 after on which that House is in session.

3 (C) DISCHARGE.—If the Committee of ei4 ther House to which a joint resolution has been

5 referred has not reported the joint resolution by

6 the end of 30 calendar days after its referral,

7 the committee shall be discharged from further

8 consideration of the joint resolution or of any

9 other joint resolution introduced with respect to

10 the same matter.

11 (D) CONSIDERATION.—A joint resolution

12 under this paragraph shall be considered in the

13 Senate in accordance with the provisions of sec14 tion 601(b)(4) of the International Security As15 sistance and Arms Export Control Act of 1976.

16 For the purpose of expediting the consideration

17 and passage of joint resolutions reported or dis18 charged under this paragraph, it shall be in

19 order for the Committee on Rules of the House

20 of Representatives to present for consideration

21 a resolution of the House of Representatives

22 providing procedures for the immediate consid23 eration of a joint resolution under this para24 graph which may be similar, if applicable, to

25 the procedures set forth in section 601(b)(4) of
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1 the International Security Assistance and Arms

2 Export Control Act of 1976.

3 (E) DUPLICATIVE RESOLUTIONS.—In the

4 case of a joint resolution described in subpara5 graph (A), if, before the passage by one House

6 of a joint resolution of that House, that House

7 receives a resolution with respect to the same

8 matter from the other House, then—

9 (i) the procedure in that House shall

10 be the same as if no joint resolution had

11 been received from the other House; and

12 (ii) the vote on final passage shall be

13 on the joint resolution of the other House.

14 (4) FURTHER EXTENSIONS OF CONTROLS.—If,

15 upon the expiration of the emergency controls ex16 tended under this subsection, the President deter17 mines that a further extension of emergency controls

18 for an additional period of time of not more than 1

19 year is necessary, paragraphs (1) through (3) shall

20 apply to such further extension.

21 (5) CALCULATION OF TIME PERIODS.—For pur22 poses of calculating calendar days under this sub23 section, there shall be excluded the days on which ei24 ther House of Congress is not in session because of

25 an adjournment of more than 3 days to a day cer-
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1 tain or because of an adjournment of the Congress

2 sine die.

3 (h) EFFECT ON OTHER AUTHORITY.—

4 (1) EMBARGO AUTHORITY.—Nothing in this

5 section shall be construed to limit the authority of

6 the President to impose an embargo described in

7 subsection (f)(1) on exports to, and imports from, a

8 specific country under the International Emergency

9 Economic Powers Act, the Trading with the Enemy

10 Act, or other provision of law (other than this title).

11 In any case in which the President exercises any

12 such authority to impose an embargo, the require13 ments of this section shall not apply for so long as

14 such embargo is in effect.

15 (2) EFFECT ON EXISTING EMBARGOES.—(A)

16 Nothing in this section affects the authorities con17 ferred upon the President by section 5(b) of the

18 Trading with the Enemy Act, which were being exer19 cised with respect to a country on July 1, 1977, as

20 a result of a national emergency declared by the

21 President before that date, and are being exercised

22 on the date of the enactment of this Act.

23 (B) Nothing in this section affects the authori24 ties conferred upon the President by the Inter25 national Economic Powers Act or other provision of
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1 law (other than the Export Administration Act of

2 1979), which were being exercised with respect to a

3 country before the date of the enactment of this Act

4 as a result of a national emergency declared by the

5 President before that date, and are being exercised

6 with respect to such country on such date of enact7 ment.

8 (i) COUNTRIES SUPPORTING INTERNATIONAL TER9 RORISM.—

10 (1) PROHIBITION ON EXPORTS.—(A) No export

11 or reexport of commodities or technology described

12 in subparagraph (B) may be made to any country

13 the government of which the Secretary of State has

14 determined has repeatedly provided support for acts

15 of international terrorism.

16 (B) The commodities or technology referred to

17 in subparagraph (A) are—

18 (i) any commodities or technology the ex19 port of which is controlled under this title pur20 suant to the Missile Technology Control Regime

21 or the Australia Group, or controlled under this

22 title pursuant to section 309(c) of the Nuclear

23 Non-Proliferation Act of 1978,
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1 (ii) any commodities or technology de2 scribed in section 105(a)(1)(B) the export of

3 which is controlled under section 105, and

4 (iii) any commodities or technology the ex5 port of which could make a significant contribu6 tion to the military potential of a country de7 scribed in subparagraph (A), including its mili8 tary logistics capability, or could enhance the

9 ability of such country to support acts of inter10 national terrorism,

11 other than commodities or technology that the Presi12 dent determines will be used only for humanitarian

13 purposes. A validated license shall be required for

14 the export under this paragraph of any such com15 modities or technology that will be used only for hu16 manitarian purposes.

17 (C) Paragraphs (3)(A) and (4) of subsection (a)

18 shall not apply to exports prohibited or restricted

19 under this subsection.

20 (D)(i) The Secretary shall review the list of

21 items described in subparagraph (B)(iii) at least an22 nually. At the conclusion of the review, the Secretary

23 shall justify the inclusion of each item on the list,

24 remove items from the list, change the specifications

25 of items on the list, or add items to the list, in order
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1 to ensure that the items on the list meet the require2 ments of subparagraph (B)(iii).

3 (ii) The procedures set forth in subparagraphs

4 (B), (C), and (E) of section 105(j) shall apply to re5 views under clause (i) of the list of items described

6 in subparagraph (B)(iii) to the same extent as such

7 subparagraphs apply to reviews of the security con8 trol list under section 105(j).

9 (2) NOTIFICATION OF CONGRESS OF LICENSES

10 ISSUED.—The Secretary and the Secretary of State

11 shall notify the Committee on International Rela12 tions of the House of Representatives and the Com13 mittee on Banking, Housing, and Urban Affairs and

14 the Committee on Foreign Relations of the Senate

15 at least 30 days before issuing any validated license

16 under this title for exports to a country the govern17 ment of which the Secretary of State has determined

18 has repeatedly provided support for acts of inter19 national terrorism.

20 (3) PUBLICATION OF DETERMINATIONS.—Each

21 determination of the Secretary of State under para22 graph (1)(A), and each determination under section

23 6(j)(1)(A) of the Export Administration Act of 1979

24 in effect at the time this title takes effect, shall be

25 published in the Federal Register.
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1 (4) RESCISSION OF DETERMINATIONS.—A de2 termination made by the Secretary of State under

3 paragraph (1)(A) may not be rescinded unless the

4 President submits to the Speaker of the House of

5 Representatives and the chairman of the Committee

6 on Banking, Housing, and Urban Affairs and the

7 chairman of the Committee on Foreign Relations of

8 the Senate—

9 (A) before the proposed rescission would

10 take effect, a report certifying that—

11 (i) there has been a fundamental

12 change in the leadership and policies of the

13 government of the country concerned;

14 (ii) that government is not supporting

15 acts of international terrorism; and

16 (iii) that government has provided as17 surances that it will not support acts of

18 international terrorism in the future; or

19 (B) at least 45 days before the proposed

20 rescission would take effect, a report justifying

21 the rescission and certifying that—

22 (i) the government concerned has not

23 provided any support for international ter24 rorism during the preceding 6-month pe25 riod; and
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1 (ii) the government concerned has

2 provided assurances that it will not sup3 port acts of international terrorism in the

4 future.

5 (5) WAIVER OF PROHIBITIONS.—The President

6 may waive the prohibitions contained in paragraph

7 (1)(A) with respect to a specific transaction if—

8 (A) the President determines that the

9 transaction is essential to the national security

10 interests of the United States; and

11 (B) not less than 30 days prior to the pro12 posed transaction, the President—

13 (i) consults with the Committee on

14 International Relations of the House of

15 Representatives and the Committee on

16 Banking, Housing, and Urban Affairs of

17 the Senate regarding the proposed trans18 action; and

19 (ii) submits to the Speaker of the

20 House of Representatives and the chair21 man of the Committee on Banking, Hous22 ing, and Urban Affairs of the Senate a re23 port containing—

24 (I) the name of any country in25 volved in the proposed transaction,
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1 the identity of any recipient of the

2 items to be provided pursuant to the

3 proposed transaction, and the antici4 pated use of those items;

5 (II) a description of the items in6 volved in the proposed transaction (in7 cluding their market value) and the

8 actual sale price at each step in the

9 transaction;

10 (III) the reasons why the pro11 posed transaction is essential to the

12 national security interests of the Unit13 ed States and the justification for the

14 proposed transaction;

15 (IV) the date on which the pro16 posed transaction is expected to occur;

17 and

18 (V) the name of every United

19 States Government department, agen20 cy, or other entity involved in the pro21 posed transaction, and every foreign

22 government involved in the proposed

23 transaction.

24 To the extent possible, the information specified in

25 clause (ii) of subparagraph (B) shall be provided in
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1 unclassified form, with any classified information

2 provided in an addendum to the report.

3 (6) MULTILATERAL REGIMES.—The Secretary

4 of State shall propose to COCOM, to the Australia

5 Group, to the countries participating in the Missile

6 Technology Control Regime, and to the Nuclear

7 Suppliers Group, that each such group adopt those

8 controls that are imposed by this subsection on ex9 ports of commodities or technology subject to control

10 by such group. The Secretary of State shall continue

11 to make such proposals until such export controls

12 are so adopted.

13 (7) EFFECT ON OTHER LAWS.—The provisions

14 of this subsection do not affect any other provision

15 of law to the extent such other provision imposes

16 greater restrictions on exports to any country the

17 government of which the Secretary of State has de18 termined has repeatedly provided support for acts of

19 international terrorism than are imposed under this

20 subsection.

21 (j) CRIME CONTROL INSTRUMENTS.—

22 (1) VALIDATED LICENSE REQUIRED.—Crime

23 control and detection instruments and equipment

24 shall be approved for export by the Secretary only

25 pursuant to a validated export license. Paragraphs
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1 (3)(A) and (4) of subsection (a) shall not apply to

2 the export controls imposed by this subsection.

3 (2) CONSULTATION WITH SECRETARY OF

4 STATE.—

5 (A) ITEMS ON CONTROL LIST.—Any deter6 mination of the Secretary of what commodities

7 or technology shall be included on the control

8 index as a result of the export restrictions im9 posed by this subsection shall be made after

10 consultation with the Secretary of State.

11 (B) ACTION ON LICENSE APPLICATION.—

12 Any determination of the Secretary to approve

13 or deny an export license application to export

14 crime control or detection instruments or equip15 ment shall be made after consultation with the

16 Secretary of State.

17 (3) DISPUTE RESOLUTION.—If the Secretary of

18 State does not agree with the Secretary with respect

19 to any determination under paragraph (2), the Sec20 retary of State shall refer the matter to the Presi21 dent for resolution.

22 (4) EXCEPTIONS.—The provisions of this sub23 section shall not apply with respect to exports to

24 countries which are members of the North Atlantic

25 Treaty Organization or to Japan, Australia, or New
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1 Zealand, or to such other countries as the President

2 shall designate consistent with the purposes of this

3 subsection and section 502B of the Foreign Assist4 ance Act of 1961.

5 (k) SPARE PARTS.—At the same time as the Presi6 dent imposes or expands export controls under this sec7 tion, the President shall determine whether such export

8 controls will apply to replacement parts or parts in com9 modities subject to such export controls.

10 SEC. 107. SHORT SUPPLY CONTROLS.

11 (a) AUTHORITY.—

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

13 policy set forth in section 103(4), the President may

14 prohibit or curtail the export of any commodities

15 subject to the jurisdiction of the United States or

16 exported by any person subject to the jurisdiction of

17 the United States. In curtailing exports to carry out

18 the policy set forth in section 103(4), the President

19 shall allocate a portion of export licenses on the

20 basis of factors other than a prior history of expor21 tation. Such factors shall include the extent to which

22 a country engages in equitable trade practices with

23 respect to United States commodities and treats the

24 United States equitably in times of short supply.
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1 (2) PUBLIC PARTICIPATION.—Upon imposing

2 quantitative restrictions on exports of any commod3 ities to carry out the policy set forth in section

4 103(4), the Secretary shall include in a notice pub5 lished in the Federal Register with respect to such

6 restrictions an invitation to all interested parties to

7 submit written comments within 15 days after the

8 date of publication on the impact of such restrictions

9 and the method of licensing used to implement

10 them.

11 (3) LICENSE FEES.—In imposing export con12 trols under this section, the President’s authority

13 shall include, but not be limited to, the imposition

14 of export license fees.

15 (b) MONITORING.—

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

17 policy set forth in section 103(4), the Secretary shall

18 monitor exports, and contracts for exports, of any

19 commodity when the volume of such exports in rela20 tion to domestic supply contributes, or may contrib21 ute, to an increase in domestic prices or a domestic

22 shortage, and such price increase or shortage has, or

23 may have, a serious adverse impact on the economy

24 or any sector thereof. Any such monitoring shall

25 commence at a time adequate to assure that the
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1 monitoring will result in a data base sufficient to en2 able policies to be developed, in accordance with sec3 tion 103(4), to mitigate a short supply situation or

4 serious inflationary price rise or, if export controls

5 are needed, to permit imposition of such controls in

6 a timely manner. Information which the Secretary

7 requires to be furnished in effecting such monitoring

8 shall be confidential, except as provided in para9 graph (2).

10 (2) REPORTS ON MONITORING.—The results of

11 monitoring under paragraph (1) shall, to the extent

12 practicable, be aggregated and included in weekly re13 ports setting forth, with respect to each item mon14 itored, actual and anticipated exports, the destina15 tion by country, and the domestic and worldwide

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

17 made monthly if the Secretary determines that there

18 is insufficient information to justify weekly reports.

19 (3) CONSULTATION WITH SECRETARY OF EN20 ERGY.—The Secretary shall consult with the Sec21 retary of Energy to determine whether monitoring or

22 export controls under this section are warranted

23 with respect to exports of facilities, machinery, or

24 equipment normally and principally used, or in25 tended to be used, in the production, conversion, or
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1 transportation of fuels and energy (except nuclear

2 energy), including, but not limited to—

3 (A) drilling rigs, platforms, and equipment;

4 (B) petroleum refineries, and natural gas

5 processing, liquefaction, and gasification plants;

6 (C) facilities for production of synthetic

7 natural gas or synthetic crude oil;

8 (D) oil and gas pipelines, pumping sta9 tions, and associated equipment; and

10 (E) vessels for transporting oil, gas, coal,

11 and other fuels.

12 (c) PETITIONS FOR MONITORING OR CONTROLS OF

13 METALLIC MATERIALS.—

14 (1) IN GENERAL.—(A) Any entity, including a

15 trade association, firm, or certified or recognized

16 union or group of workers, that is representative of

17 an industry or a substantial segment of an industry

18 that processes metallic materials capable of being re19 cycled may transmit a written petition to the Sec20 retary requesting the monitoring of exports or the

21 imposition of export controls, or both, with respect

22 to any such material, in order to carry out the policy

23 set forth in section 103(4).

24 (B) Each petition shall be in such form as the

25 Secretary shall prescribe and shall contain informa-
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1 tion in support of the action requested. The petition

2 shall include any information reasonably available to

3 the petitioner indicating that each of the criteria set

4 forth in paragraph (3)(A) is satisfied.

5 (2) PUBLICATION OF NOTICE.—Within 15 days

6 after receipt of any petition described in paragraph

7 (1), the Secretary shall publish a notice in the Fed8 eral Register. The notice shall—

9 (A) include the name of the material that

10 is the subject to the petition;

11 (B) include the schedule B number of the

12 material as set forth in the Statistical Classi13 fication of Domestic and Foreign Commodities

14 Exported from the United States;

15 (C) indicate whether the petition is re16 questing that controls or monitoring, or both,

17 be imposed with respect to the exportation of

18 such material; and

19 (D) provide that interested persons shall

20 have a period of 30 days beginning on the date

21 on which the notice is published to submit to

22 the Secretary written data, views, or argu23 ments, with or without opportunity for oral

24 presentation, with respect to the matter in25 volved.
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1 At the request of the petitioner or any other entity

2 described in paragraph (1)(A) with respect to the

3 material which is the subject of the petition, or at

4 the request of any entity representative of producers

5 or exporters of such material, the Secretary shall

6 conduct public hearings with respect to the subject

7 of the petition, in which case the 30-day period may

8 be extended to 45 days.

9 (3) DETERMINATION OF MONITORING OR CON10 TROLS.—(A) Within 45 days after the end of the

11 30- or 45-day period described in paragraph (2), as

12 the case may be, the Secretary shall determine

13 whether to impose monitoring or controls, or both,

14 on the export of the material that is the subject of

15 the petition in order to carry out the policy set forth

16 in section 103(4). In making such determination,

17 the Secretary shall determine whether—

18 (i) there has been a significant increase, in

19 relation to a specific period of time, in exports

20 of such material in relation to domestic supply

21 and demand;

22 (ii) there has been a significant increase in

23 domestic price of such material or a domestic

24 shortage of such material relative to demand;
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1 (iii) exports of such material are as impor2 tant as any other cause of a domestic price in3 crease or shortage relative to demand found

4 under clause (ii);

5 (iv) a domestic price increase or shortage

6 relative to demand found under clause (ii) has

7 significantly adversely affected or may signifi8 cantly adversely affect the national economy or

9 any sector thereof, including a domestic indus10 try; and

11 (v) monitoring or controls, or both, are

12 necessary in order to carry out the policy set

13 forth in section 103(4).

14 (B) The Secretary shall publish in the Federal

15 Register a detailed statement of the reasons for the

16 Secretary’s determination under subparagraph (A)

17 of whether to impose monitoring or controls, or

18 both, including the findings of fact in support of

19 that determination.

20 (4) PUBLICATION OF REGULATIONS.—Within

21 15 days after making a determination under para22 graph (3) to impose monitoring or controls on the

23 export of a material, the Secretary shall publish in

24 the Federal Register proposed regulations with re25 spect to such monitoring or controls. Within 30 days
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1 after the publication of such proposed regulations,

2 and after considering any public comments on the

3 proposed regulations, the Secretary shall publish and

4 implement final regulations with respect to such

5 monitoring or controls.

6 (5) CONSOLIDATION OF PETITIONS.—For pur7 poses of publishing notices in the Federal Register

8 and scheduling public hearings pursuant to this sub9 section, the Secretary may consolidate petitions, and

10 responses to such petitions, which involve the same

11 or related materials.

12 (6) SUBSEQUENT PETITIONS ON SAME MATE13 RIAL.—If a petition with respect to a particular ma14 terial or group of materials has been considered in

15 accordance with all the procedures described in this

16 subsection, the Secretary may determine, in the ab17 sence of significantly changed circumstances, that

18 any other petition with respect to the same material

19 or group of materials which is filed within 6 months

20 after the consideration of the prior petition has been

21 completed does not merit complete consideration

22 under this subsection.

23 (7) PRECEDENCE OF PROCEDURES OVER

24 OTHER REVIEWS.—The procedures and time limits

25 set forth in this subsection with respect to a petition
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1 filed under this subsection shall take precedence over

2 any review undertaken at the initiative of the Sec3 retary with respect to the same subject as that of

4 the petition.

5 (8) TEMPORARY CONTROLS.—The Secretary

6 may impose monitoring or controls, on a temporary

7 basis, on the export of a metallic material after a pe8 tition is filed under paragraph (1)(A) with respect to

9 that material but before the Secretary makes a de10 termination under paragraph (3) with respect to

11 that material only if—

12 (A) the failure to take such temporary ac13 tions would result in irreparable harm to the

14 entity filing the petition, or to the national

15 economy or segment thereof, including a domes16 tic industry, and

17 (B) the Secretary considers such action to

18 be necessary to carry out the policy set forth in

19 section 103(4).

20 (9) OTHER AUTHORITY NOT AFFECTED.—The

21 authority under this subsection shall not be con22 strued to affect the authority of the Secretary under

23 any other provision of this title, except that if the

24 Secretary determines, on the Secretary’s own initia25 tive, to impose monitoring or controls, or both, on
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•HR 361 IH

1 the export of metallic materials capable of being re2 cycled, under the authority of this section, the Sec3 retary shall publish the reasons for such action in

4 accordance with paragraph (3)(A) and (B).

5 (10) SUBMISSION AND CONSIDERATION OF AD6 DITIONAL INFORMATION.—Nothing contained in this

7 subsection shall be construed to preclude submission

8 on a confidential basis to the Secretary of informa9 tion relevant to a decision to impose or remove mon10 itoring or controls under the authority of this title,

11 or to preclude consideration of such information by

12 the Secretary in reaching decisions required under

13 this subsection. The provisions of this paragraph

14 shall not be construed to affect the applicability of

15 section 552(b) of title 5, United States Code.

16 (d) DOMESTICALLY PRODUCED CRUDE OIL.—

17 (1) PROHIBITION ON EXPORTS.—Notwithstand18 ing any other provision of this title and notwith19 standing subsection (u) of section 28 of the Mineral

20 Leasing Act of 1920 (30 U.S.C. 185), no domesti21 cally produced crude oil transported by pipeline over

22 right-of-way granted pursuant to section 203 of the

23 Trans-Alaska Pipeline Authorization Act (43 U.S.C.

24 1652) may, subject to paragraph (2), be exported
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1 from the United States, except any such crude oil

2 which—

3 (A) is exported to an adjacent foreign

4 country to be refined and consumed therein in

5 an exchange that—

6 (i) is for the same quantity of crude

7 oil being exported from that country to the

8 United States; and

9 (ii) results through convenience or in10 creased efficiency of transportation in

11 lower prices for consumers of petroleum

12 products in the United States as described

13 in paragraph (2)(A)(ii);

14 (B) is temporarily exported for convenience

15 or increased efficiency of transportation across

16 parts of an adjacent foreign country and reen17 ters the United States; or

18 (C) is transported to Canada, to be

19 consumed therein, in amounts not to exceed an

20 annual average of 50,000 barrels per day, in

21 addition to exports under subparagraphs (A)

22 and (B), except that any ocean transportation

23 of such oil shall be by vessels documented under

24 section 12106 of title 46, United States Code.
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1 (2) EXCEPTIONS.—Crude oil subject to the pro2 hibition contained in paragraph (1) may be exported

3 only if—

4 (A) the President so recommends to the

5 Congress after making and publishing express

6 findings that exports of such crude oil, includ7 ing exchanges—

8 (i) will not diminish the total quantity

9 or quality of petroleum refined within,

10 stored within, or legally committed to be

11 transported to and sold within the United

12 States;

13 (ii) will, within 3 months following the

14 initiation of such exports or exchanges, re15 sult in—

16 (I) acquisition costs to the refin17 ers that purchase the imported crude

18 oil being lower than the acquisition

19 costs such refiners would have to pay

20 for the domestically produced oil in

21 the absence of such an export or ex22 change, and

23 (II) not less than 75 percent of

24 such savings in costs being reflected

25 in wholesale and retail prices of prod-
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1 ucts refined from such imported crude

2 oil;

3 (iii) will be made only pursuant to

4 contracts which may be terminated if the

5 crude oil supplies of the United States are

6 interrupted, threatened, or diminished;

7 (iv) are clearly necessary to protect

8 the national interest; and

9 (v) are in accordance with the provi10 sions of this title; and

11 (B) the President includes such findings in

12 the recommendation to the Congress and the

13 Congress, within 60 days after receiving that

14 recommendation, agrees to a joint resolution

15 which approves such exports on the basis of

16 those findings, and which is thereafter enacted

17 into law.

18 (3) EXPORTS UNDER BILATERAL AGREE19 MENTS.—Notwithstanding any other provision of

20 this section or any other provision of law, including

21 subsection (u) of section 28 of the Mineral Leasing

22 Act of 1920, the President may export oil to any

23 country pursuant to a bilateral international oil sup24 ply agreement entered into by the United States

25 with such country before June 25, 1979, or to any
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1 country pursuant to the International Emergency

2 Oil Sharing Plan of the International Energy Agen3 cy.

4 (e) REFINED PETROLEUM PRODUCTS.—

5 (1) EXPORT LICENSES.—In any case in which

6 the President determines that it is necessary to im7 pose export controls on refined petroleum products

8 in order to carry out the policy set forth in section

9 103(4), the President shall notify the Congress of

10 that determination. The President shall also notify

11 the Congress if and when the President determines

12 that such export controls are no longer necessary.

13 During any period in which a determination that

14 such export controls are necessary is in effect, no re15 fined petroleum product may be exported except pur16 suant to an export license specifically authorizing

17 such export.

18 (2) NOTIFICATION TO CONGRESS AND LAY19 OVER.—(A) Not later than 5 days after an applica20 tion for a license to export any refined petroleum

21 product is received, the Secretary shall notify the

22 Congress of such application, together with the

23 name of the exporter, the destination of the pro24 posed export, and the amount and price of the pro25 posed export. Such notification shall be made to the
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1 chairman of the Committee on International Rela2 tions of the House of Representatives and the chair3 man of the Committee on Banking, Housing, and

4 Urban Affairs of the Senate.

5 (B) The Secretary may not grant such license

6 during the 30-day period beginning on the date on

7 which notification to the Congress under paragraph

8 (1) is received, unless the President certifies in writ9 ing to the Speaker of the House of Representatives

10 and the President pro tempore of the Senate that

11 the proposed export is vital to the national interest

12 and that a delay in issuing the license would ad13 versely affect that interest.

14 (3) EXCEPTION.—This subsection shall not

15 apply to—

16 (A) any export license application for ex17 ports to a country with respect to which histori18 cal export quotas established by the Secretary

19 on the basis of past trading relationships apply;

20 or

21 (B) any license application for exports to a

22 country if exports under the license would not

23 result in the export from the United States of

24 more than 250,000 barrels of refined petroleum

25 products to such country in any fiscal year.
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1 (4) DEFINITION.—For purposes of this sub2 section, the term ‘‘refined petroleum product’’ means

3 gasoline, kerosene, distillates, propane or butane

4 gas, diesel fuel, and residual fuel oil, that is refined

5 within the United States or entered for consumption

6 within the United States.

7 (5) EXTENSION OF LICENSE APPLICATION

8 PROCESSING TIME.—The Secretary may extend any

9 time period prescribed in section 109 to the extent

10 necessary to take into account delays in action by

11 the Secretary on a license application on account of

12 the provisions of this subsection.

13 (f) CERTAIN PETROLEUM PRODUCTS.—Petroleum

14 products refined in United States foreign trade zones, or

15 in the United States Territory of Guam, from foreign

16 crude oil shall be excluded from any quantitative restric17 tions imposed under this section, except that, if the Sec18 retary finds that a product is in short supply, the Sec19 retary may issue such regulations as may be necessary to

20 limit exports.

21 (g) AGRICULTURAL COMMODITIES.—

22 (1) APPROVAL OF CONTROLS BY SECRETARY OF

23 AGRICULTURE.—The authority conferred by this sec24 tion shall not be exercised with respect to any agri25 cultural commodity, including fats and oils or animal
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1 hides or skins, without the approval of the Secretary

2 of Agriculture. The Secretary of Agriculture shall

3 not approve the exercise of such authority with re4 spect to any such commodity during any period for

5 which the supply of such commodity is determined

6 by the Secretary of Agriculture to be in excess of the

7 requirements of the domestic economy, except to the

8 extent the President determines that the controls on

9 such agricultural commodities are also imposed

10 under section 106. The Secretary of Agriculture

11 shall, by exercising the authority which the Sec12 retary of Agriculture has under other applicable pro13 visions of law, collect data with respect to export

14 sales of animal hides and skins.

15 (2) PROTECTION OF STORED COMMODITIES

16 FROM FUTURE CONTROLS.—Upon approval of the

17 Secretary, in consultation with the Secretary of Ag18 riculture, agricultural commodities purchased by or

19 for use in a foreign country may remain in the Unit20 ed States for export at a later date free from any

21 quantitative limitations on export which may be im22 posed to carry out the policy set forth in section

23 103(4) subsequent to such approval. The Secretary

24 may not grant such approval unless the Secretary
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1 receives adequate assurance and, in conjunction with

2 the Secretary of Agriculture, finds—

3 (A) that such commodities will eventually

4 be exported,

5 (B) that neither the sale nor export thereof

6 will result in an excessive drain of scarce mate7 rial and have a serious domestic inflationary

8 impact,

9 (C) that storage of such commodities in

10 the United States will not unduly limit the

11 space available for storage of domestically

12 owned commodities, and

13 (D) that the purpose of such storage is to

14 establish a reserve of such commodities for later

15 use, not including resale to or use by another

16 country.

17 The Secretary may issue such regulations as may be

18 necessary to carry out this paragraph.

19 (3) PROCEDURES FOR IMPOSING CONTROLS.—

20 (A) If the President imposes export controls on any

21 agricultural commodity under section 106 (including

22 section 106(i)) or this section, the President shall

23 immediately transmit a report on such action to the

24 Congress, setting forth the reasons for the controls

25 in detail and specifying the period of time, which
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1 may not exceed 1 year, that the controls are pro2 posed to be in effect. If the Congress, within 60 days

3 after the date of the receipt of the report, adopts a

4 joint resolution pursuant to paragraph (4) approving

5 the imposition of the export controls, then such con6 trols shall remain in effect for the period specified

7 in the report, or until terminated by the President,

8 whichever occurs first. If the Congress, within 60

9 days after the date of its receipt of such report, fails

10 to adopt a joint resolution approving such controls,

11 then such controls shall cease to be effective upon

12 the expiration of that 60-day period.

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

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

15 (i) which are extended under this title if

16 the controls, when imposed, were approved by

17 the Congress under subparagraph (A) and

18 paragraph (4); or

19 (ii) which are imposed with respect to a

20 country as part of the prohibition or curtail21 ment of all exports to that country.

22 (4) EXPEDITED PROCEDURES.—(A) For pur23 poses of this paragraph, the term ‘‘joint resolution’’

24 means only a joint resolution the matter after the

25 resolving clause of which is as follows: ‘‘That pursu-
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1 ant to section 107(g)(3) of the Export Act of 1994,

2 the President may impose export controls as speci3 fied in the report submitted to the Congress on

4 lll.’’, with the blank space being filled with the

5 appropriate date.

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

7 to the House of Representatives and the Senate

8 under paragraph (3), a joint resolution with respect

9 to the export controls specified in such report shall

10 be introduced (by request) in the House by the

11 chairman of the Committee on International Rela12 tions, for the chairman and the ranking minority

13 member of the Committee, or by Members of the

14 House designated by the chairman and ranking mi15 nority member; and shall be introduced (by request)

16 in the Senate by the majority leader of the Senate,

17 for the chairman and the minority leader of the Sen18 ate, or by Members of the Senate designated by the

19 majority leader and minority leader of the Senate. If

20 either House is not in session on the day on which

21 such a report is submitted, the joint resolution shall

22 be introduced in that House, as provided in the pre23 ceding sentence, on the first day thereafter on which

24 that House is in session.
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1 (C) If the committee of either House to which

2 a joint resolution has been referred has not reported

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

4 referral, the committee shall be discharged from fur5 ther consideration of the resolution or of any other

6 joint resolution introduced with respect to the same

7 matter.

8 (D) A joint resolution under this paragraph

9 shall be considered in the Senate in accordance with

10 the provisions of section 601(b)(4) of the Inter11 national Security Assistance and Arms Export Con12 trol Act of 1976. For the purpose of expediting the

13 consideration and passage of joint resolutions re14 ported or discharged pursuant to the provisions of

15 this paragraph, it shall be in order for the Commit16 tee on Rules of the House of Representatives to

17 present for consideration a resolution of the House

18 of Representatives providing procedures for the im19 mediate consideration of a joint resolution under

20 this paragraph which may be similar, if applicable,

21 to the procedure set forth in section 601(b)(4) of the

22 International Security Assistance and Arms Export

23 Control Act of 1976.

24 (E) In the case of a joint resolution described

25 in subparagraph (A), if, before the passage by one
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1 House of a joint resolution of that House, that

2 House receives a resolution with respect to the same

3 matter from the other House, then—

4 (i) the procedure in that House shall be

5 the same as if no joint resolution has been re6 ceived from the other House; but

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

8 the joint resolution of the other House.

9 (5) COMPUTATION OF TIME PERIODS.—In the

10 computation of the period of 60 days referred to in

11 paragraph (3)(A) and the period of 30 days referred

12 to in paragraph (4)(C), there shall be excluded the

13 days on which either House of Congress is not in

14 session because of an adjournment of more than 3

15 days to a day certain or because of an adjournment

16 of the Congress sine die.

17 (h) BARTER AGREEMENTS.—

18 (1) EXEMPTION FROM CONTROLS.—The expor19 tation pursuant to a barter agreement of any com20 modities which may lawfully be exported from the

21 United States, for any commodities which may law22 fully be imported into the United States, may be ex23 empted, in accordance with paragraph (2), from any

24 quantitative limitation on exports (other than any
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1 reporting requirement) imposed to carry out the pol2 icy set forth in section 103(4).

3 (2) CRITERIA FOR EXEMPTION.—The Secretary

4 shall grant an exemption under paragraph (1) if the

5 Secretary finds, after consultation with the appro6 priate department or agency of the United States,

7 that—

8 (A) for the period during which the barter

9 agreement is to be performed—

10 (i) the average annual quantity of the

11 commodities to be exported pursuant to

12 the barter agreement will not be required

13 to satisfy the average amount of such com14 modities estimated to be required annually

15 by the domestic economy and will be sur16 plus thereto; and

17 (ii) the average annual quantity of the

18 commodities to be imported will be less

19 than the average amount of such commod20 ities estimated to be required annually to

21 supplement domestic production; and

22 (B) the parties to such barter agreement

23 have demonstrated adequately that they intend,

24 and have the capacity, to perform such barter

25 agreement.
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1 (3) DEFINITION.—For purposes of this sub2 section, the term ‘‘barter agreement’’ means any

3 agreement which is made for the exchange, without

4 monetary consideration, of any commodities pro5 duced in the United States for any commodities pro6 duced outside of the United States.

7 (4) APPLICABILITY.—This subsection shall

8 apply only with respect to barter agreements entered

9 into after September 30, 1979.

10 (i) UNPROCESSED RED CEDAR.—

11 (1) PROHIBITION.—No unprocessed western red

12 cedar (Thuja plicata) logs harvested from State or

13 Federal lands may be exported from the United

14 States.

15 (2) RED CEDAR NOT AN AGRICULTURAL COM16 MODITY.—Unprocessed western red cedar logs shall

17 not be considered to be an agricultural commodity

18 for purposes of subsection (g).

19 (3) DEFINITION.—As used in this subsection,

20 the term ‘‘unprocessed western red cedar’’ means

21 red cedar timber which has not been processed

22 into—

23 (A) lumber of American Lumber Stand24 ards Grades of Number 3 dimension or better,
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1 or Pacific Lumber Inspection Bureau Export

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

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

4 (C) veneer and plywood;

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

6 with preservative for use as such and not in7 tended to be further processed; or

8 (E) shakes and shingles.

9 (j) EFFECT OF CONTROLS ON EXISTING CON10 TRACTS.—

11 (1) WESTERN RED CEDAR.—The export restric12 tions contained in subsection (i) and any export con13 trols imposed under this section shall not affect—

14 (A) any contract to harvest unprocessed

15 western red cedar from State lands which was

16 entered into before October 1, 1979, and the

17 performance of which would make the red cedar

18 available for export; or

19 (B) any contract to harvest unprocessed

20 red cedar which was entered into after Septem21 ber 30, 1979, and before October 1, 1982, and

22 the performance of which would make the red

23 cedar available for export, to the extent such

24 exports were permitted under section 7(i) of the

25 Export Administration Act of 1979.
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1 (2) OTHER COMMODITIES.—Any export controls

2 imposed under this section on any agricultural com3 modity (including fats, oils, and animal hides and

4 skins), or on any forest product or fishery product,

5 shall not affect any contract to export entered into

6 before the date on which such controls are imposed.

7 For purposes of this paragraph, the term ‘‘contract

8 to export’’ includes, but is not limited to, an export

9 sales agreement and an agreement to invest in an

10 enterprise which involves the export of commodities

11 or technology.

12 (k) OIL EXPORTS FOR USE BY UNITED STATES

13 MILITARY FACILITIES.—For purposes of subsection (d),

14 and for purposes of any export controls imposed under

15 this title, shipments of crude oil, refined petroleum prod16 ucts, or partially refined petroleum products from the

17 United States for use by the Department of Defense or

18 United States-supported installations or facilities shall not

19 be considered to be exports.

20 SEC. 108. FOREIGN BOYCOTTS.

21 (a) PROHIBITIONS AND EXCEPTIONS.—

22 (1) PROHIBITIONS.—In order to carry out the

23 policies set forth in section 103(10), the President

24 shall issue regulations prohibiting any United States

25 person, with respect to that person’s activities in the
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1 interstate or foreign commerce of the United States,

2 from taking or knowingly agreeing to take any of

3 the following actions with intent to comply with, fur4 ther, or support any boycott fostered or imposed by

5 a foreign country against a country which is friendly

6 to the United States and which is not itself the ob7 ject of any form of boycott pursuant to United

8 States law or regulation:

9 (A) Refusing, or requiring any other per10 son to refuse, to do business with or in the boy11 cotted country, with any business concern orga12 nized under the laws of the boycotted country,

13 with any national or resident of the boycotted

14 country, or with any other person, pursuant to

15 an agreement with, a requirement of, or a re16 quest from or on behalf of the boycotting coun17 try. The mere absence of a business relationship

18 with or in the boycotted country with any busi19 ness concern organized under the laws of the

20 boycotted country, with any national or resident

21 of the boycotted country, or with any other per22 son, does not indicate the existence of the in23 tent required to establish a violation of regula24 tions issued to carry out this subparagraph.
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1 (B) Refusing, or requiring any other per2 son to refuse, to employ or otherwise discrimi3 nating against any United States person on the

4 basis of race, religion, sex, or national origin of

5 that person or of any owner, officer, director, or

6 employee of such person.

7 (C) Furnishing information with respect to

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

9 United States person or of any owner, officer,

10 director, or employee of such person.

11 (D) Furnishing information about whether

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

13 any business relationship (including a relation14 ship by way of sale, purchase, legal or commer15 cial representation, shipping or other transport,

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

17 boycotted country, with any business concern

18 organized under the laws of the boycotted coun19 try, with any national or resident of the boy20 cotted country, or with any other person that is

21 known or believed to be restricted from having

22 any business relationship with or in the boy23 cotted country. Nothing in this paragraph shall

24 prohibit the furnishing of normal business in-
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1 formation in a commercial context as defined by

2 the Secretary.

3 (E) Furnishing information about whether

4 any person is a member of, has made a con5 tribution to, or is otherwise associated with or

6 involved in the activities of any charitable or

7 fraternal organization which supports the boy8 cotted country.

9 (F) Paying, honoring, confirming, or other10 wise implementing a letter of credit which con11 tains any condition or requirement compliance

12 with which is prohibited by regulations issued

13 pursuant to this paragraph, and no United

14 States person shall, as a result of the applica15 tion of this paragraph, be obligated to pay or

16 otherwise honor or implement such letter of

17 credit.

18 (2) EXCEPTIONS.—Regulations issued pursuant

19 to paragraph (1) shall provide exceptions for—

20 (A) complying or agreeing to comply with

21 requirements—

22 (i) prohibiting the import of commod23 ities or services from the boycotted country

24 or commodities produced or services pro25 vided by any business concern organized
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1 under the laws of the boycotted country or

2 by nationals or residents of the boycotted

3 country; or

4 (ii) prohibiting the shipment of com5 modities to the boycotted country on a car6 rier of the boycotted country, or by a route

7 other than that prescribed by the boycott8 ing country or the recipient of the ship9 ment;

10 (B) complying or agreeing to comply with

11 import and shipping document requirements

12 with respect to the country of origin, the name

13 of the carrier and route of shipment, the name

14 of the supplier of the shipment, or the name of

15 the provider of other services, except that no in16 formation knowingly furnished or conveyed in

17 response to such requirements may be stated in

18 negative, blacklisting, or similar exclusionary

19 terms, other than with respect to carriers or

20 route of shipment as may be permitted by such

21 regulations in order to comply with precaution22 ary requirements protecting against war risks

23 and confiscation;

24 (C) complying or agreeing to comply in the

25 normal course of business with the unilateral
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1 and specific selection by a boycotting country,

2 or national or resident thereof, of carriers, in3 surers, suppliers of services to be performed

4 within the boycotting country, or specific com5 modities which, in the normal course of busi6 ness, are identifiable by source when imported

7 into the boycotting country;

8 (D) complying or agreeing to comply with

9 export requirements of the boycotting country

10 relating to shipments or transshipment of ex11 ports to the boycotted country, to any business

12 concern of or organized under the laws of the

13 boycotted country, or to any national or resi14 dent of the boycotted country;

15 (E) compliance by an individual or agree16 ment by an individual to comply with the immi17 gration or passport requirements of any country

18 with respect to such individual or any member

19 of such individual’s family or with requests for

20 information regarding requirements of employ21 ment of such individual within the boycotting

22 country; and

23 (F) compliance by a United States person

24 resident in a foreign country or agreement by

25 such person to comply with the laws of the
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1 country with respect to such person’s activities

2 exclusively therein, and such regulations may

3 contain exceptions for such resident complying

4 with the laws or regulations of the foreign coun5 try governing imports into such country of

6 trademarked, trade named, or similarly specifi7 cally identifiable products, or components of

8 products for such person’s own use, including

9 the performance of contractual services within

10 that country, as may be defined by such regula11 tions.

12 (3) LIMITATION ON EXCEPTIONS.—Regulations

13 issued pursuant to paragraphs (2)(C) and (2)(F)

14 shall not provide exceptions from paragraphs (1)(B)

15 and (1)(C).

16 (4) ANTITRUST AND CIVIL RIGHTS LAWS NOT

17 AFFECTED.—Nothing in the subsection may be con18 strued to supersede or limit the operation of the

19 antitrust or civil rights laws of the United States.

20 (5) EVASION.—This section shall apply to any

21 transaction or activity undertaken, by or through a

22 United States person or any other person, with in23 tent to evade the provisions of this section as imple24 mented by the regulations issued pursuant to this

25 subsection, and such regulations shall expressly pro-
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1 vide that the exceptions set forth in paragraph (2)

2 shall not permit activities or agreements (expressed

3 or implied by a course of conduct, including a pat4 tern of responses) otherwise prohibited, which are

5 not within the intent of such exceptions.

6 (b) EMERGENCY CONTROLS.—

7 (1) REGULATIONS.—In addition to the regula8 tions issued pursuant to subsection (a), regulations

9 issued under section 106 shall implement the policies

10 set forth in section 103(10).

11 (2) REPORTS BY UNITED STATES PERSONS.—

12 Such regulations shall require that any United

13 States person receiving a request for the furnishing

14 of information, the entering into or implementing of

15 agreements, or the taking of any other action re16 ferred to in section 103(10) shall report that fact to

17 the Secretary, together with such other information

18 concerning such request as the Secretary may re19 quire, for such action as the Secretary considers ap20 propriate for carrying out the policies of that sec21 tion. Such person shall also report to the Secretary

22 whether such person intends to comply and whether

23 such person has complied with such request. Any re24 port filed pursuant to this paragraph shall be made

25 available promptly for public inspection and copying,
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1 except that information regarding the quantity, de2 scription, and value of any commodities or tech3 nology to which such report relates may be kept con4 fidential if the Secretary determines that disclosure

5 thereof would place the United States person in6 volved at a competitive disadvantage. The Secretary

7 shall periodically transmit summaries of the infor8 mation contained in such reports to the Secretary of

9 State for such action as the Secretary of State, in

10 consultation with the Secretary, considers appro11 priate for carrying out the policies set forth in sec12 tion 103(10).

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

14 the regulations issued under this section shall preempt any

15 law, rule, or regulation which—

16 (1) is a law, rule, or regulation of any of the

17 several States or the District of Columbia, or any of

18 the territories or possessions of the United States,

19 or of any governmental subdivision thereof; and

20 (2) pertains to participation in, compliance

21 with, implementation of, or the furnishing of infor22 mation regarding restrictive trade practices or boy23 cotts fostered or imposed by foreign countries

24 against other countries.
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1 SEC. 109. PROCEDURES FOR PROCESSING EXPORT LI2 CENSE APPLICATIONS; OTHER INQUIRIES.

3 (a) PRIMARY RESPONSIBILITY OF THE SEC4 RETARY.—

5 (1) IN GENERAL.—All export license applica6 tions required under this title shall be submitted by

7 the applicant to the Secretary. All determinations

8 with respect to any such application shall be made

9 by the Secretary, subject to the procedures provided

10 in this section.

11 (2) REGULATIONS.—In regulations that carry

12 out this section, the Secretary shall describe the pro13 cedures required by this section, the responsibilities

14 of the Secretary and of other departments and agen15 cies in reviewing applications, the rights of the appli16 cant, and the extent of any multilateral review of a

17 given license application.

18 (3) CALCULATION OF TIME PERIODS.—In cal19 culating the processing times set forth in this sec20 tion, the Secretary shall use calendar days, except

21 that if the final day for a required action falls on a

22 weekend or holiday, that action shall be taken no

23 later than the following business day.

24 (4) CONSIDERATION OF RELIABILITY OF PAR25 TIES.—In reviewing applications for validated export

26 licenses, the Secretary may in each case consider the
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1 reliability of the parties to the proposed export. In

2 making such an evaluation, the Secretary may con3 sider all sources of information, including intel4 ligence information. The consideration of intelligence

5 information in connection with the evaluation of the

6 reliability of parties shall not authorize the direct or

7 indirect disclosure of classified information or

8 sources and methods of gathering classified informa9 tion.

10 (b) ACTION BY OTHER DEPARTMENTS AND AGEN11 CIES.—

12 (1) REFERRALS.—(A) At the direction of the

13 President, the Secretary shall refer appropriate li14 cense applications required under section 105 or 106

15 to appropriate departments and agencies of the Gov16 ernment to make recommendations and provide in17 formation to the Secretary on such applications.

18 (B) The President shall restrict referrals of li19 cense applications to Government departments and

20 agencies that possess particular expertise and infor21 mation that is relevant to the licensing process and

22 is not possessed by the Secretary.

23 (2) ORGANIZATION OF REVIEWING AGENCIES.—

24 Departments and agencies reviewing license applica25 tions shall organize their resources and units to plan
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1 for the prompt and expeditious internal dissemina2 tion of export license applications, if necessary, so as

3 to avoid delays in responding to the Secretary’s re4 quest for information and recommendations.

5 (3) REQUESTS FOR ADDITIONAL INFORMA6 TION.—Within 5 days after an export license appli7 cation is referred to a department or agency under

8 this subsection, the agency or department shall

9 specify to the Secretary all information that is not

10 in the application that would be required to respond

11 to the referral of the application, and the Secretary

12 shall, pursuant to subsection (d)(1)(C), request such

13 information from the applicant. The time that may

14 elapse between the date the information is requested

15 from the applicant and the date the information is

16 received by the Secretary shall not be included in

17 calculating the time periods prescribed in this sec18 tion.

19 (c) ACTION BY THE SECRETARY.—Subject to sub20 section (d)(4), 30 days after the date of formal filing with

21 the Secretary of an export license application, a license

22 for the transaction specified in the application shall be23 come valid and effective and the commodities or tech24 nology involved are authorized for export or reexport pur25 suant to such license, unless—
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1 (1) the application has been otherwise approved

2 by the Secretary, in which case it shall be valid and

3 effective according to the terms of the approval; or

4 (2) the application has been denied by the Sec5 retary under this section and the applicant has been

6 so informed.

7 (d) PROCEDURES FOR PROCESSING EXPORT LI8 CENSE APPLICATIONS.—

9 (1) INITIAL SCREENING.—Not more than 10

10 days after the date on which any export license ap11 plication is submitted to the Secretary, the Secretary

12 shall—

13 (A) send the applicant an acknowledgment

14 of the receipt of the application and the date of

15 the receipt;

16 (B) submit to the applicant a written de17 scription of the procedures required by this sec18 tion, the responsibilities of the Secretary with

19 respect to the application, and the rights of the

20 applicant;

21 (C) on the basis of information the Sec22 retary has, including information provided to

23 the Secretary under subsection (b)(3), return

24 the application without action if the application

25 is improperly completed or if additional infor-
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1 mation is required, with sufficient information

2 to permit the application to be properly resub3 mitted; and

4 (D) determine whether it is necessary to

5 submit the application to a multilateral review

6 process pursuant to an export control regime

7 and, if so, inform the applicant of such require8 ment.

9 (2) REFERRAL.—(A) If, pursuant to criteria es10 tablished by the President, the Secretary is to refer

11 an export license application to any other depart12 ment or agency for a recommendation under sub13 section (b)(1), the Secretary shall, within 2 days

14 after receiving the application, refer the application

15 concurrently to all such departments or agencies,

16 transmitting the application electronically whenever

17 possible. A department or agency reviewing an ex18 port license application referred by the Secretary

19 shall have 10 days in which to submit to the Sec20 retary its recommendations on the application. Any

21 department or agency which does not submit its rec22 ommendations within that 10-day period shall be

23 deemed by the Secretary to have no objection to the

24 approval of such application.
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1 (B) A recommendation that the Secretary deny

2 a validated license shall include a statement of rea3 sons for the recommendation that are consistent

4 with the provisions of this title, and shall cite both

5 the statutory and the regulatory basis for the rec6 ommendation.

7 (3) INTERAGENCY COMMITTEE.—An inter8 agency committee may be established by the Presi9 dent for the purpose of resolving disputes among de10 partments and agencies on export license applica11 tions under this title. Such committee shall be

12 chaired by the Secretary. The procedures followed by

13 such interagency committee shall provide—

14 (A) deadlines for decisions within the

15 interagency committee consistent with the duty

16 of the Secretary to reach his or her final deci17 sion on an application within 30 days after the

18 date of filing of the license application;

19 (B) that a department or agency dissent20 ing from the position of the Secretary shall

21 have the burden to bring the issue in writing to

22 the next level of review provided within the

23 interagency committee and may only dissent on

24 the basis of the criteria set forth in section

25 105(c)(1)(D) or section 106(a)(4); and
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1 (C) that a department or agency that fails

2 to make a timely escalation of a disputed mat3 ter shall be deemed to have no objection to the

4 decision of the Secretary.

5 (4) ACTIONS BY THE SECRETARY.—(A) When a

6 referral of a license application to other departments

7 or agencies is not required, the Secretary shall issue

8 a license or notify the applicant of the intent to deny

9 within 10 days after receiving the application.

10 (B) If an application is to be denied because

11 the export would be made to a controlled end user,

12 no referral to other departments or agencies is re13 quired, and the applicant shall be informed of the

14 reason for the denial.

15 (5) ACTION UPON DENIAL.—In cases in which

16 the Secretary has determined that a license applica17 tion should be denied, the applicant shall be in18 formed in writing, not later than 3 days after such

19 determination is made, of—

20 (A) the determination;

21 (B) the statutory and regulatory basis for

22 the proposed denial;

23 (C) the reasons for such denial, with ref24 erences to the criteria set forth in section 105,

25 106, or 107 (as the case may be);
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1 (D) what, if any, modifications in, or re2 strictions on, the commodities or technology for

3 which the license was sought would allow the

4 export or reexport of the commodities or tech5 nology to be compatible with controls imposed

6 under this title;

7 (E) which officers and employees of the

8 Department of Commerce who are familiar with

9 the application will be made reasonably avail10 able to the applicant for considerations with re11 gard to such modifications or restrictions, if ap12 propriate;

13 (F) to the extent consistent with the na14 tional security and foreign policy of the United

15 States, the specific considerations which led to

16 the determination to deny the application; and

17 (G) the availability of appeal procedures.

18 The Secretary shall allow the applicant not less than

19 30 days to respond to the Secretary’s determination

20 before the license application is finally denied.

21 (e) RECORDKEEPING.—The Secretary shall make and

22 keep records of all advice and recommendations given by

23 Federal departments and agencies, and decisions made by

24 the Department of Commerce, in connection with any ex25 port license application or revision of an export license ap-
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1 plication under this title, including the factual and analyt2 ical basis of the advice, recommendations, or decisions.

3 (f) CHANGES IN REQUIREMENTS FOR APPLICA4 TIONS.—Except as provided in subsection (d), in any case

5 in which, after an export license application is submitted,

6 the Secretary changes the requirements for such a license

7 application, the Secretary may request appropriate addi8 tional information of the applicant, but the Secretary may

9 not return the application to the applicant without action

10 because it fails to meet the changed requirements.

11 (g) APPEALS.—The Secretary shall establish appro12 priate procedures for any applicant to appeal to the Sec13 retary the denial of an export license application under

14 this title.

15 (h) OTHER INQUIRIES.—

16 (1) CLASSIFICATION REQUESTS.—In any case

17 in which the Secretary receives a written request for

18 the proper classification of a commodity or tech19 nology on the control index, the Secretary shall, not

20 more than 10 working days after receiving the re21 quest, inform the person making the request of the

22 proper classification.

23 (2) APPLICABILITY OF REQUIREMENTS.—In

24 any case in which the Secretary receives a written

25 request for information about the applicability of ex-
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1 port license requirements under this title to a pro2 posed transaction or series of transactions, the Sec3 retary shall, not more than 30 days after receiving

4 the request, reply with that information to the per5 son making the request.

6 (3) PUBLICATION OF CLASSIFICATION DETER7 MINATIONS.—The Secretary shall, to the greatest

8 extent practicable, taking into account restrictions

9 on the disclosure of classified or confidential infor10 mation, publish in the Federal Register classification

11 determinations made under paragraph (1).

12 (i) REPORTS ON LICENSE APPLICATIONS.—

13 (1) QUARTERLY REPORT.—Not later than 180

14 days after the date of the enactment of this Act, and

15 not later than the end of each 3-month period there16 after, the Secretary shall submit to the Committee

17 on International Relations of the House of Rep18 resentatives and to the Committee on Banking,

19 Housing, and Urban Affairs of the Senate a report

20 listing all applications on which action was com21 pleted during the preceding 3-month period and

22 which required a period longer than the period per23 mitted under subsection (c) or (d)(4), as the case

24 may be, before notification on a decision to approve

25 or deny the application was sent to the applicant.
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1 (2) INFORMATION ON LICENSE APPLICA2 TIONS.—With regard to each application, each list3 ing shall identify—

4 (A) the application case number;

5 (B) the value of the commodities or tech6 nology to which the application relates;

7 (C) the country of destination of the com8 modities or technology;

9 (D) the date on which the application was

10 received by the Secretary;

11 (E) the date on which the Secretary ap12 proved or denied the application; and

13 (F) the date on which the notification of

14 approval or denial of the application was sent to

15 the applicant.

16 (3) INTRODUCTION TO REPORT.—With respect

17 to an application referred to any other department

18 or agency which did not submit or has not submitted

19 its recommendations on the application within the

20 period permitted under subsection (d)(2) to submit

21 such recommendations, the listing shall also in22 clude—

23 (A) the office responsible for processing

24 the application and the officer responsible for

25 the office; and
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1 (B) the period of time that elapsed before

2 the recommendations were submitted or that

3 has elapsed since referral of the application, as

4 the case may be.

5 SEC. 110. VIOLATIONS.

6 (a) CRIMINAL PENALTIES.—

7 (1) VIOLATIONS BY AN INDIVIDUAL.—Any indi8 vidual who knowingly violates or conspires to or at9 tempts to violate any provision of this title or any

10 regulation, license, or order issued under this title

11 shall be fined not more than 5 times the value of the

12 exports involved or $500,000, whichever is greater,

13 or imprisoned not more than 10 years, or both.

14 (2) VIOLATIONS BY A PERSON OTHER THAN AN

15 INDIVIDUAL.—Any person other than an individual

16 who knowingly violates or conspires to or attempts

17 to violate any provision of this title or any regula18 tion, license, or order issued under this title shall be

19 fined not more than 10 times the value of the ex20 ports involved or $1,000,000, whichever is greater.

21 (b) FORFEITURE OF PROPERTY INTEREST AND PRO22 CEEDS.—

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

24 under subsection (a)(1) or (2) shall, in addition to

25 any other penalty, forfeit to the United States—
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1 (A) any of that person’s interest in, secu2 rity of, claim against, or property or contractual

3 rights of any kind in the commodities or tan4 gible items that were the subject of the viola5 tion;

6 (B) any of that person’s interest in, secu7 rity of, claim against, or property or contractual

8 rights of any kind in tangible property that was

9 used in the export or attempt to export that

10 was the subject of the violation; and

11 (C) any of that person’s property con12 stituting, or derived from, any proceeds ob13 tained directly or indirectly as a result of the

14 violation.

15 (2) PROCEDURES.—The procedures in any for16 feiture under this subsection, and the duties and au17 thority of the courts of the United States and the

18 Attorney General with respect to any forfeiture ac19 tion under this subsection or with respect to any

20 property that may be subject to forfeiture under this

21 subsection, shall be governed by the provisions of

22 section 1963 of title 18, United States Code.

23 (c) CIVIL PENALTIES; ADMINISTRATIVE SANC24 TIONS.—
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1 (1) CIVIL PENALTIES.—The Secretary may im2 pose a civil penalty of not more than $250,000 for

3 each violation of this title or any regulation, license,

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

5 or in lieu of any other liability or penalty which may

6 be imposed, except that the civil penalty for each

7 such violation of regulations issued under section

8 108 may not exceed $50,000.

9 (2) DENIAL OF EXPORT PRIVILEGES.—The Sec10 retary may deny the export privileges of any person,

11 including suspending or revoking the authority of

12 any person to export or receive United States-origin

13 commodities or technology, on account of any viola14 tion of this title or any regulation, license, or order

15 issued under this title.

16 (d) PAYMENT OF CIVIL PENALTIES.—The payment

17 of any civil penalty imposed under subsection (c) may be

18 made a condition, for a period not exceeding 1 year after

19 the penalty has become due but has not been paid, to the

20 granting, restoration, or continuing validity of any export

21 license, permission, or privilege granted or to be granted

22 to the person upon whom such penalty is imposed. In addi23 tion, the payment of any civil penalty imposed under sub24 section (c) may be deferred or suspended in whole or in

25 part for a period of time no longer than any probation
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1 period (which may exceed 1 year) that may be imposed

2 upon such person. Such deferral or suspension shall not

3 operate as a bar to the collection of the penalty in the

4 event that the conditions of the suspension, deferral, or

5 probation are not fulfilled.

6 (e) REFUNDS.—Any amounts realized from the for7 feiture of any property interest or proceeds under sub8 section (b), and any amount paid in satisfaction of any

9 civil penalty imposed under subsection (c) shall be covered

10 into the Treasury as a miscellaneous receipt. The head

11 of the department or agency concerned may, in his or her

12 discretion, refund any such civil penalty imposed under

13 subsection (c), within 2 years after payment, on the

14 ground of a material error of fact or law in the imposition

15 of the penalty. Notwithstanding section 1346(a) of title

16 28, United States Code, no action for the refund of any

17 such penalty may be maintained in any court.

18 (f) EFFECT OF OTHER CONVICTIONS.—

19 (1) DENIAL OF EXPORT PRIVILEGES.—Any per20 son convicted of a violation of—

21 (A) this title or the Export Administration

22 Act of 1979 (or any regulation, license, or order

23 issued under this title or that Act),
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1 (B) any regulation, license, or order issued

2 under the International Emergency Economic

3 Powers Act,

4 (C) section 793, 794, or 798 of title 18,

5 United States Code,

6 (D) section 371 or 1001 of title 18, United

7 States Code, if in connection with the export of

8 commodities or technology controlled under this

9 title, or defense articles or defense services con10 trolled under the Arms Export Control Act,

11 (E) section 4(a) of the Internal Security

12 Act of 1950 (50 U.S.C. 783(a)), or

13 (F) section 38 of the Arms Export Control

14 Act,

15 may, at the discretion of the Secretary, be denied ex16 port privileges under this title for a period of up to

17 10 years from the date of the conviction. The Sec18 retary may also revoke any export license under this

19 title in which such person had an interest at the

20 time of the conviction.

21 (2) RELATED PERSONS.—The Secretary may

22 exercise the authority under paragraph (1) with re23 spect to any person related, through affiliation, own24 ership, control, or position of responsibility, to any

25 person convicted of any violation of a law set forth
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1 in paragraph (1), upon a showing of such relation2 ship with the convicted person, after providing notice

3 and opportunity for a hearing.

4 (g) STATUTE OF LIMITATIONS.—Any proceeding in

5 which a civil penalty or other administrative sanction

6 (other than a temporary denial order) is sought under sub7 section (c) may not be instituted more than 5 years after

8 the date of the alleged violation, except that, in any case

9 in which a criminal indictment alleging a violation of this

10 title is returned within the time limits prescribed by law

11 for the institution of such action, the statute of limitations

12 for bringing a proceeding to impose such a civil penalty

13 or other administrative sanction under this title shall,

14 upon the return of the criminal indictment, be tolled

15 against all persons named as a defendant. The tolling of

16 the statute of limitations shall continue for a period of

17 6 months from the date a conviction becomes final or the

18 indictment is dismissed.

19 (h) VIOLATIONS DEFINED BY REGULATION.—Noth20 ing in this section shall limit the power of the Secretary

21 to define by regulation violations under this title.

22 (i) OTHER AUTHORITIES.—Nothing in subsection

23 (c), (d), (f), or (g) limits—

24 (1) the availability of other administrative or

25 judicial remedies with respect to violations of this
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1 title, or any regulation, order, or license issued

2 under this title;

3 (2) the authority to compromise and settle ad4 ministrative proceedings brought with respect to any

5 such violation; or

6 (3) the authority to compromise, remit, or miti7 gate seizures and forfeitures pursuant to section

8 1(b) of title VI of the Act of June 15, 1917 (22

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

10 (j) PRIVATE RIGHT OF ACTION.—Any person—

11 (1) against whom an act of discrimination de12 scribed in section 108(a)(1)(B) is committed, or

13 (2) who, on account of a violation of the regula14 tions issued pursuant to section 108(a), loses an op15 portunity to engage in a commercial venture pursu16 ant to a contract, joint venture, or other commercial

17 transaction, including an opportunity to bid or ten18 der an offer for a contract,

19 may bring an action in an appropriate district court of

20 the United States against the United States person com21 mitting the violation, for recovery of actual damages in22 curred on account of such act of discrimination or lost

23 opportunity. In any such action the court may award puni24 tive damages. An action may be brought under this sub25 section against a United States person whether or not the
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1 United States person has been determined under this sec2 tion to have violated the regulations issued pursuant to

3 section 108(a) on account of which the action is brought.

4 SEC. 111. CONTROLLING PROLIFERATION ACTIVITY.

5 (a) ESTABLISHMENT OF PROLIFERATION LISTS.—

6 (1) ESTABLISHMENT OF CHEMICAL AND BIO7 LOGICAL WEAPONS CONTROL LIST UNDER THIS

8 TITLE.—

9 (A) IN GENERAL.—The Secretary, in con10 sultation with the Secretary of State, the Sec11 retary of Defense, and the heads of other ap12 propriate departments and agencies, shall es13 tablish and maintain a list of commodities and

14 technology, which shall include those commod15 ities and technology controlled pursuant to mul16 tilateral export control regimes such as the Aus17 tralia Group—

18 (i) that would directly and substan19 tially assist a foreign government, group,

20 entity, or project in acquiring the capabil21 ity to develop, produce, stockpile, or deliver

22 chemical or biological weapons; and

23 (ii) the licensing of which would be ef24 fective in barring the acquisition or en25 hancement of such capability.
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1 (B) REQUIREMENT FOR VALIDATED LI2 CENSES.—Subject to the provisions of this title,

3 the Secretary shall require a validated license

4 for any export of commodities or technology on

5 the list established under subparagraph (A) to

6 any country of concern.

7 (C) COUNTRY OF CONCERN.—For pur8 poses of subparagraph (B), the term ‘‘country

9 of concern’’ means any country other than—

10 (i) a country with whose government

11 the United States has entered into a bilat12 eral or multilateral arrangement for the

13 control of commodities or technology on

14 the list established under subparagraph

15 (A); and

16 (ii) such other countries as the Sec17 retary of State, in consultation with the

18 Secretary and the Secretary of Defense,

19 shall designate consistent with the pur20 poses of this section.

21 (2) ESTABLISHMENT OF MISSILE TECHNOLOGY

22 CONTROL LIST UNDER THIS TITLE.—

23 (A) The Secretary, in consultation with the

24 Secretary of State, the Secretary of Defense,
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1 and the heads of other appropriate departments

2 and agencies—

3 (i) shall establish and maintain a list

4 of all dual use commodities and technology

5 on the MTCR Annex; and

6 (ii) may include on that list any com7 modities or technology that would provide

8 a direct and significant impact on the de9 velopment of missile delivery systems.

10 (B) REQUIREMENT OF INDIVIDUAL VALI11 DATED LICENSES.—Subject to the provisions of

12 this title, the Secretary shall require an individ13 ual validated license for—

14 (i) any export of commodities or tech15 nology on the list established under sub16 paragraph (A) to any country; and

17 (ii) any export of commodities or tech18 nology that the exporter knows is destined

19 for a project or facility for the design, de20 velopment, or manufacture of a missile in

21 a country that is not an MTCR adherent.

22 (C) POLICY OF DENIAL OF LICENSES.—(i)

23 Licenses under subparagraph (B) should in

24 general be denied if the ultimate consignee of

25 the commodities or technology is a facility in a
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1 country that is not an MTCR adherent and the

2 facility is designed to develop or build missiles.

3 (ii) Licenses under subparagraph (B) shall

4 be denied if the ultimate consignee of the com5 modities or technology is a facility in a country

6 the government of which has been determined

7 under section 106(i)(1) to have repeatedly pro8 vided support for acts of international terror9 ism.

10 (D) DEFINITION.—For purposes of this

11 paragraph, the term ‘‘MTCR adherent’’ means

12 a country that participates in the MTCR or

13 that, pursuant to an international understand14 ing to which the United States is a party, con15 trols MTCR equipment or technology in accord16 ance with the criteria and standards set forth

17 in the MTCR.

18 (b) ESTABLISHMENT OF LISTS UNDER ARMS EX19 PORT CONTROL ACT.—

20 (1) CHEMICAL AND BIOLOGICAL WEAPONS

21 LIST.—Section 81 of the Arms Export Control Act

22 (22 U.S.C. 2798) is amended to read as follows:
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1 ‘‘SEC. 81. ESTABLISHMENT OF CHEMICAL AND BIOLOGICAL

2 WEAPONS CONTROL LIST.

3 ‘‘(a) IN GENERAL.—The Secretary of State, in con4 sultation with the Secretary of Defense, and the heads of

5 other appropriate departments and agencies, shall estab6 lish and maintain, as part of the United States Munitions

7 List, a list of items, which shall include those items con8 trolled pursuant to multilateral export control regimes,

9 such as the Australia Group—

10 ‘‘(1) that would directly and substantially assist

11 a foreign government, group, entity, or project in ac12 quiring the capability to develop, produce, stockpile,

13 or deliver chemical or biological weapons;

14 ‘‘(2) the licensing of which would be effective in

15 barring the acquisition or enhancement of such ca16 pability; and

17 ‘‘(3) the export of which is not subject to con18 trol under section 111(a)(1) of the Export Act of

19 1995.

20 ‘‘(b) REQUIREMENT FOR VALIDATED LICENSES.—

21 The Secretary of State shall require a validated license

22 for any export of items on the list established under sub23 section (a).

24 ‘‘(c) DEFINITIONS.—For purposes of this section, the

25 terms ‘multilateral export control regime’ and ‘Australia
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1 Group’ have the meanings given those terms in section

2 116 of the Export Act of 1995.’’.

3 (2) MISSILE TECHNOLOGY CONTROL LIST.—

4 Section 71 of the Arms Export Control Act (22

5 U.S.C. 2797) is amended to read as follows:

6 ‘‘SEC. 71. LICENSING.

7 ‘‘(a) ESTABLISHMENT OF MISSILE TECHNOLOGY

8 CONTROL LIST.—The Secretary of State, in consultation

9 with the Secretary of Defense and the heads of other ap10 propriate departments and agencies, shall establish and

11 maintain a list of all items, which shall include those items

12 listed on the MTCR Annex, that would provide a direct

13 and significant impact on the development of missile deliv14 ery systems and the export of which is not subject to con15 trol under section 111(a)(2) of the Export Act of 1995.

16 ‘‘(b) REQUIREMENT OF VALIDATED LICENSES.—The

17 Secretary shall require a validated license for—

18 ‘‘(1) any export of items on the list established

19 under subsection (a) to any country; and

20 ‘‘(2) any export of items that the exporter

21 knows is destined for a project or facility for the de22 sign, development, or manufacture of a missile in a

23 country that is not an MTCR adherent.

24 ‘‘(c) POLICY OF DENIAL OF LICENSES.—
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1 ‘‘(1) EXPORTS TO OTHER THAN MTCR ADHER2 ENTS.—Licenses under subsection (b) shall be de3 nied if the ultimate consignee of the items is a facil4 ity in a country that is not an MTCR adherent and

5 the facility is designed to develop or build missiles.

6 ‘‘(2) EXPORTS TO TERRORIST COUNTRIES.—Li7 censes under subsection (b) shall be denied if the ul8 timate consignee of the items is a facility in a coun9 try the government of which has been determined

10 under section 106(i)(1) of the Export Act of 1995

11 to have repeatedly provided support for acts of inter12 national terrorism.’’.

13 (c) SANCTIONS FOR ACTIVITIES SUPPORTING THE

14 PROLIFERATION OF CHEMICAL AND BIOLOGICAL WEAP15 ONS AND MISSILES.—

16 (1) VIOLATIONS BY UNITED STATES PER17 SONS.—(A) If the President determines that a

18 United States person, on or after the date of the

19 enactment of this Act, with requisite knowledge—

20 (i) exports or transfers—

21 (I) any item on the list established

22 under subsection (a)(1) or (a)(2), or

23 (II) any item on the list established

24 under section 71(a) or 81(a) of the Arms

25 Export Control Act,
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1 in violation of United States law,

2 (ii) conspires to or attempts to engage in

3 such export or transfer, or

4 (iii) facilitates such export or transfer by

5 any other person,

6 then the President shall impose, for a period of 2

7 years, the sanctions described in subparagraph (B)

8 on the entities described in paragraph (3).

9 (B) The sanctions referred to in subparagraph

10 (A) are the following:

11 (i) All export licenses under this title to

12 the sanctioned entity for items controlled under

13 section 105, or for items controlled under sec14 tion 106 that meet the requirements of section

15 105(a)(1)(A) or (B), and all export licenses

16 under the Arms Export Control Act for items

17 on the United States Munitions List, shall be

18 denied.

19 (ii) The United States Government shall

20 not procure, or enter into any contract for the

21 procurement of, any services, commodities,

22 technology, or other products from or produced

23 by the sanctioned entity.

24 (C) In the case of a determination made under

25 subparagraph (A), the President may pursue any
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1 penalty provided in section 38(c) of the Arms Ex2 port Control Act.

3 (2) VIOLATIONS BY FOREIGN PERSONS.—(A) If

4 the President determines that a foreign person, on

5 or after the date of the enactment of this Act, with

6 requisite knowledge contributed to the efforts of any

7 government, group, entity, or project to use, design,

8 develop, produce, stockpile, or otherwise acquire

9 chemical or biological weapons or missiles—

10 (i) through the export or transfer of—

11 (I) any item on the MTCR Annex,

12 whether or not of United States origin, or

13 (II) any item on the list established

14 under subsection (a)(1) of this section or

15 section 81(a) of the Arms Export Control

16 Act, whether or not of United States ori17 gin,

18 (ii) by conspiring or attempting to engage

19 in such export or transfer or,

20 (iii) by facilitating any export or transfer

21 described in clause (i) by any other person,

22 then the President shall impose, for a period of 2

23 years, the sanctions described in subparagraph (B)

24 on the entities described in paragraph (3).
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1 (B) The sanctions referred to in subparagraph

2 (A) are the following:

3 (i) All export licenses under this title for

4 items controlled under section 105, or items

5 controlled under section 106 that meet the re6 quirements of section 105(a)(1)(A) or (B), and

7 all export licenses under the Arms Export Con8 trol Act for items on the United States Muni9 tions List, shall be denied to the sanctioned en10 tity.

11 (ii) The United States Government shall

12 not procure, or enter into any contract for the

13 procurement of, any services, commodities,

14 technology, or other products from or produced

15 by the sanctioned entity.

16 (iii) Imports of all products from or pro17 duced by the sanctioned entity shall be prohib18 ited.

19 (3) ENTITIES AGAINST WHICH SANCTIONS ARE

20 IMPOSED.—The President shall impose sanctions

21 under paragraphs (1) and (2) on—

22 (A) the person that committed the conduct

23 that is the subject of the determination giving

24 rise to the sanctions;
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1 (B) any successor of a person or entity de2 scribed in subparagraph (A);

3 (C) any foreign person or United States

4 person that is a parent or subsidiary of a per5 son or entity described in subparagraph (A), if

6 that parent or subsidiary with requisite knowl7 edge assisted in the activities which are the

8 basis of that determination; and

9 (D) any foreign person or United States

10 person that is an affiliate of a person or entity

11 described in subparagraph (A), if that affiliate

12 with requisite knowledge assisted in the activi13 ties which were the basis of that determination

14 and if that affiliate is controlled in fact by that

15 person or entity.

16 For purposes of this section, any person or entity

17 described in subparagraph (A), (B), (C), or (D)

18 shall be referred to as a ‘‘sanctioned entity’’.

19 (4) EXEMPTION OF CERTAIN EXPORTS FROM

20 SANCTIONS.—The requirement in paragraph

21 (1)(B)(i) and (2)(B)(i) that licenses to export items

22 controlled under section 105 or 106 be denied shall

23 not apply to items which require individual validated

24 licenses solely by virtue of the imposition of controls

25 under the Enhanced Proliferation Control Initiative
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1 regulations set forth in section 778.7(c) of title 15,

2 Code of Federal Regulations.

3 (5) EXEMPTION FOR MTCR ADHERENTS.—

4 (A) EXEMPTION.—Paragraphs (1) and (2)

5 do not apply with respect to any export or

6 transfer—

7 (i) that is authorized by the laws of

8 an MTCR adherent, if such authorization

9 is not obtained by misrepresentation or

10 fraud; or

11 (ii) to an end user in a country that

12 is an MTCR adherent.

13 (B) DEFINITION.—For purposes of this

14 paragraph, the term ‘‘MTCR adherent’’ has the

15 meaning given that term in subsection

16 (a)(2)(D).

17 (6) CONSULTATION WITH AND ACTIONS BY

18 FOREIGN GOVERNMENT OF JURISDICTION.—

19 (A) CONSULTATIONS.—If the President

20 makes a determination described in paragraph

21 (2) with respect to a foreign person, the Con22 gress urges the President to initiate consulta23 tions immediately with the government with pri24 mary jurisdiction over that foreign person with
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1 respect to the imposition of sanctions pursuant

2 to this subsection.

3 (B) ACTIONS BY GOVERNMENT OF JURIS4 DICTION.—In order to pursue such consulta5 tions with that government, the President may

6 delay imposition of sanctions pursuant to this

7 subsection for up to 90 days. Following these

8 consultations, the President shall impose sanc9 tions unless the President determines and cer10 tifies to the Congress that that government has

11 taken specific and effective actions, including

12 appropriate penalties, to terminate the involve13 ment of the foreign person in the activities de14 scribed in paragraph (2). The President may

15 delay the imposition of sanctions for up to an

16 additional 90 days if the President determines

17 and certifies to the Congress that that govern18 ment is in the process of taking the actions de19 scribed in the preceding sentence.

20 (C) REPORT TO CONGRESS.—Not later

21 than 90 days after making a determination

22 under paragraph (2), the President shall submit

23 to the Committee on Foreign Relations and the

24 Committee on Governmental Affairs of the Sen25 ate and the Committee on International Rela-
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1 tions of the House of Representatives a report

2 on the status of consultations with the appro3 priate government under this paragraph, and

4 the basis for any determination under subpara5 graph (B) that such government has taken spe6 cific and effective actions.

7 (7) EFFECT OF ENFORCEMENT ACTIONS BY RE8 GIME ADHERENTS.—

9 (A) EXEMPTION FROM SANCTIONS.—Sanc10 tions set forth in paragraph (1) or (2) may not

11 be imposed under this subsection on a person

12 with respect to acts described in either such

13 paragraph or, if such sanctions are in effect

14 against a person on account of such acts, such

15 sanctions shall be terminated, if the government

16 of a regime adherent other than the United

17 States is taking judicial or other enforcement

18 action against that person with respect to such

19 acts, or that person has been found by the gov20 ernment of a regime adherent to be innocent of

21 wrongdoing with respect to such acts.

22 (B) REGIME ADHERENT DEFINED.—For

23 purposes of subparagraph (A), a ‘‘regime ad24 herent’’ is a country that is a member of a mul25 tilateral regime that controls the export or
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1 transfer giving rise to the sanctions, or that,

2 pursuant to an international understanding to

3 which the United States is a party, controls the

4 export or transfer in accordance with the cri5 teria and standards set forth in the regime.

6 (8) REQUISITE KNOWLEDGE DEFINED.—For

7 purposes of this subsection, the term ‘‘requisite

8 knowledge’’ means situations in which a person

9 ‘‘knows’’, as ‘‘knowing’’ is defined in section 104 of

10 the Foreign Corrupt Practices Act of 1977 (15

11 U.S.C. 78dd–2).

12 (9) FOREIGN PERSON DEFINED FOR CERTAIN

13 EXPORTS.—(A) For purposes of any determination

14 under paragraph (2)(A) with respect to an export or

15 transfer of an item on the MTCR Annex, the term

16 ‘foreign person’, in addition to the meaning set forth

17 in section 116(13), means, in the case of countries

18 with nonmarket economies (other than former mem19 bers of the Warsaw Pact)—

20 (i) all activities of the government of any

21 such country relating to the development or

22 production of any missile equipment or tech23 nology; and

24 (ii) all activities of that government affect25 ing the development or production of elec-
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1 tronics, space systems or equipment, and mili2 tary aircraft.

3 (B) As used in subparagraph (A), the term

4 ‘‘missile equipment or technology’ means those items

5 listed in category I or II of the MTCR Annex.

6 (d) SANCTIONS AGAINST COUNTRIES FOR USE OF

7 CHEMICAL OR BIOLOGICAL WEAPONS.—

8 (1) DETERMINATION.—

9 (A) IN GENERAL.—Whenever persuasive

10 information becomes available to the executive

11 branch indicating the substantial possibility

12 that, on or after the date of the enactment of

13 this Act, the government of a foreign country

14 has made substantial preparation to use or has

15 used chemical or biological weapons in violation

16 of international law or has used lethal chemical

17 or biological weapons against its own nationals,

18 the President shall, within 60 days after the re19 ceipt of such information by the executive

20 branch, determine whether that government, on

21 or after such date of enactment, has used chem22 ical or biological weapons in violation of inter23 national law, or has used lethal chemical or bio24 logical weapons against its own nationals.
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1 (B) MATTERS TO BE CONSIDERED.—In

2 making the determination under subparagraph

3 (A), the President shall consider the following:

4 (i) All physical and circumstantial evi5 dence available bearing on the possible use

6 of chemical or biological weapons.

7 (ii) All information provided by al8 leged victims, witnesses, and independent

9 observers.

10 (iii) The extent of the availability of

11 the weapons in question to the purported

12 user.

13 (iv) All official and unofficial state14 ments bearing on the possible use of such

15 weapons.

16 (v) Whether, and to what extent, the

17 government in question is willing to honor

18 a request from the Secretary General of

19 the United Nations to grant timely access

20 to a United Nations fact-finding team to

21 investigate the possibility of chemical or bi22 ological weapons use or to grant such ac23 cess to other legitimate outside parties.

24 (2) DETERMINATION TO BE REPORTED TO CON25 GRESS.—Upon making a determination under para-
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1 graph (1), the President shall promptly report that

2 determination to the Congress. If the determination

3 is that a foreign government has used such weapons

4 as described in that paragraph, the report shall

5 specify the sanctions to be imposed pursuant to

6 paragraph (4).

7 (3) CONGRESSIONAL REQUESTS; REPORT.—

8 (A) REQUEST.—The Chairman of the

9 Committee on Foreign Relations of the Senate

10 (upon consultation with the ranking minority

11 member of such committee) or the Chairman of

12 the Committee on International Relations of the

13 House of Representatives (upon consultation

14 with the ranking minority member of such com15 mittee) may at any time request the President

16 to consider whether a particular foreign govern17 ment, on or after the date of the enactment of

18 this Act, has used chemical or biological weap19 ons in violation of international law or has used

20 lethal chemical or biological weapons against its

21 own nationals.

22 (B) REPORT TO CONGRESS.—Not later

23 than 60 days after receiving such a request, the

24 President shall provide to the Chairman of the

25 Committee on Foreign Relations of the Senate
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1 and the Chairman of the Committee on Inter2 national Relations of the House of Representa3 tives a written report on the information held

4 by the executive branch which is pertinent to

5 the issue of whether the specified government,

6 on or after the date of the enactment of this

7 Act, has used chemical or biological weapons in

8 violation of international law or has used lethal

9 chemical or biological weapons against its own

10 nationals. The report under this subparagraph

11 shall contain an analysis of each of the items

12 enumerated in paragraph (1)(B).

13 (4) MANDATORY SANCTIONS FOR USE OF

14 CHEMICAL OR BIOLOGICAL WEAPONS.—The follow15 ing sanctions shall be imposed for a minimum of 2

16 years in the event the President makes an affirma17 tive determination under paragraph (1) with respect

18 to the government of a foreign country:

19 (A) FOREIGN ASSISTANCE.—The United

20 States Government shall terminate assistance to

21 that country under the Foreign Assistance Act

22 of 1961, except for urgent humanitarian assist23 ance and food or other agricultural commodities

24 or products.
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1 (B) ARMS SALES.—The United States

2 Government shall—

3 (i) terminate sales to that country

4 under the Arms Export Control Act of any

5 defense articles, defense services, or design

6 and construction services; and

7 (ii) terminate and deny licenses for

8 the export to that country of any item on

9 the United States Munitions list.

10 (C) ARMS SALES FINANCING.—The United

11 States Government shall terminate all foreign

12 military financing for that country under the

13 Arms Export Control Act.

14 (D) DENIAL OF UNITED STATES GOVERN15 MENT CREDIT OR OTHER FINANCIAL ASSIST16 ANCE.—The United States Government shall

17 deny to that country any credit, credit guaran18 tees, or other financial assistance by any de19 partment, agency, or instrumentality of the

20 United States Government, including the Ex21 port-Import Bank of the United States.

22 (E) EXPORTS OF NATIONAL SECURITY23 SENSITIVE ITEMS.—The authorities of this title

24 shall be used to prohibit the export to that

25 country of any commodities or technology con-
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1 trolled or prohibited for export under section

2 106(i).

3 (F) IMPORTS.—There shall be a prohibi4 tion on the importation into the United States

5 of goods that are the growth, produce, or man6 ufacture of that country. The President shall

7 determine the type and volume of imports to be

8 prohibited, taking into consideration the volume

9 of exports prohibited under subparagraph (E).

10 (5) ADDITIONAL SANCTIONS IF CERTAIN CONDI11 TIONS NOT MET.—Unless, within 3 months after

12 making a determination under paragraph (1) with

13 respect to the government of a foreign country, the

14 President determines and certifies, in writing, to the

15 Congress that—

16 (A) the government is no longer using

17 chemical or biological weapons in violation of

18 international law or using lethal chemical or bi19 ological weapons against its own nationals,

20 (B) the government has provided reliable

21 assurances that it will not, in the future, en22 gage in any such activities, and

23 (C) the government is willing to allow on24 site inspections by United Nations observers or

25 other internationally recognized, impartial ob-
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1 servers, or other reliable means exist, to ensure

2 that government is not using chemical or bio3 logical weapons in violation of international law

4 and is not using lethal chemical or biological

5 weapons against its own nationals,

6 then the President, after consultation with the Con7 gress, shall impose on that country for a period of

8 at least 2 years the sanctions set forth in at least

9 3 of subparagraphs (A) through (F) of paragraph

10 (6).

11 (6) ADDITIONAL SANCTIONS FOR USE OF

12 CHEMICAL OR BIOLOGICAL WEAPONS.—The sanc13 tions referred to in paragraph (5) are the following:

14 (A) MULTILATERAL DEVELOPMENT BANK

15 ASSISTANCE.—The United States Government

16 shall oppose, in accordance with section 701 of

17 the International Financial Institutions Act (22

18 U.S.C. 262d), the extension of any loan or fi19 nancial or technical assistance to the foreign

20 country by international financial institutions.

21 (B) BANK LOANS.—The United States

22 Government shall prohibit any United States

23 bank from making any loan or providing any

24 credit to the government of that country, except

25 for loans or credits for the purpose of purchas-
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1 ing food or other agricultural commodities or

2 products.

3 (C) FURTHER RESTRICTIONS.—(i) The au4 thorities of this title shall be used to prohibit

5 exports to that country of all items (except for

6 those items described in section 114(k)).

7 (ii) Restrictions shall be imposed on the

8 importation into the United States of goods

9 (which may include petroleum or any petroleum

10 product) that are the growth, product, or man11 ufacture of that country.

12 (D) DIPLOMATIC RELATIONS.—The Presi13 dent shall use his constitutional authorities to

14 downgrade or suspend diplomatic relations be15 tween the United States and the government of

16 that country.

17 (E) PRESIDENTIAL ACTION REGARDING

18 AVIATION.—

19 (i)(I) The President is authorized to

20 notify the government of that country of

21 his intention to suspend the authority of

22 foreign air carriers owned or controlled by

23 the government of that country to engage

24 in foreign air transportation to or from the

25 United States.
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1 (II) Within 10 days after the date of

2 notification of a government under

3 subclause (I), the Secretary of Transpor4 tation shall take all steps necessary to sus5 pend at the earliest possible date the au6 thority of any foreign air carrier owned or

7 controlled, directly or indirectly, by that

8 government to engage in foreign air trans9 portation to or from the United States,

10 notwithstanding any agreement relating to

11 air services.

12 (ii)(I) The President may direct the

13 Secretary of State to terminate any air

14 service agreement between the United

15 States and that country, in accordance

16 with the provisions of that agreement.

17 (II) Upon termination of an agree18 ment under this clause, the Secretary of

19 Transportation shall take such steps as

20 may be necessary to revoke at the earliest

21 possible date the right of any foreign air

22 carrier owned or controlled, directly or in23 directly, by the government of that country

24 to engage in foreign air transportation to

25 or from the United States.
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1 (iii) The Secretary of Transportation

2 may provide for such exceptions from

3 clauses (i) and (ii) as the Secretary consid4 ers necessary to provide for emergencies in

5 which the safety of an aircraft or its crew

6 or passengers is threatened.

7 (iv) For purposes of this subpara8 graph, the terms ‘‘air transportation’’, ‘‘air

9 carrier’’, ‘‘foreign air carrier’’, and ‘‘for10 eign air transportation’’ have the meanings

11 given those terms in section 101 of the

12 Federal Aviation Act of 1958 (49 U.S.C.

13 App. 1301).

14 (e) REMOVAL OF SANCTIONS.—

15 (1) FOR VIOLATIONS UNDER SUBSECTION (c).—

16 The President shall remove the sanctions imposed

17 under paragraph (1) or (2) of subsection (c) if the

18 President determines and so certifies to the Con19 gress, after the end of the 12-month period begin20 ning on the date on which the sanctions were ini21 tially imposed, that—

22 (A) reliable information indicates that—

23 (i) the United States person with re24 spect to which the determination was made
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1 under subsection (c)(1) has ceased all ac2 tivities that gave rise to the sanctions; or

3 (ii) the foreign person with respect to

4 which the determination was made under

5 subsection (c)(2) has ceased to contribute

6 to the efforts of any government, group,

7 entity, or project to use, design, develop,

8 produce, stockpile, or otherwise acquire

9 chemical or biological weapons or missiles;

10 and

11 (B) the President has received reliable as12 surances from that United States person or for13 eign person that such person will not, in the fu14 ture, perform any of the actions described in

15 subsection (c)(1) or (2) (as the case may be).

16 (2) FOR VIOLATIONS UNDER SUBSECTION

17 (d).—The President shall remove the sanctions im18 posed with respect to a country under paragraph (4)

19 or (6) of subsection (d) if the President determines

20 and so certifies to the Congress, after the end of the

21 12-month period beginning on the date on which

22 such sanctions were initially imposed, that—

23 (A) the government of that country has

24 provided reliable assurances that it will not use

25 chemical or biological weapons in violation of
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1 international law and will not use lethal chemi2 cal or biological weapons against its own na3 tionals;

4 (B) the government is not making prepara5 tions to use chemical or biological weapons in

6 violation of international law or to use lethal

7 chemical or biological weapons against its own

8 nationals;

9 (C) the government is willing to allow on10 site inspections by United Nations observers or

11 other internationally recognized, impartial ob12 servers to verify that it is not making prepara13 tions to use chemical or biological weapons in

14 violation of international law or to use lethal

15 chemical or biological weapons against its own

16 nationals, or other reliable means exist to verify

17 that it is not making such preparations; and

18 (D) the government is making restitution

19 to those affected by any use of chemical or bio20 logical weapons in violation of international law

21 or by any use of lethal chemical or biological

22 weapons against its own nationals.

23 (3) AUTHORITY TO REVOKE IMPORT SANCTIONS

24 IN CERTAIN CIRCUMSTANCES.—The President may

25 revoke any import sanction imposed under sub-
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1 section (c) or (d) if the President determines, as a

2 result of applicable international dispute settlement

3 proceedings, that the imposition of such sanctions is

4 inconsistent with international legal obligations of

5 the United States and that it is appropriate under

6 the circumstances to comply with such obligations.

7 (f) WAIVERS FOR VIOLATIONS UNDER SUBSECTION

8 (c).—

9 (1) WAIVER.—The President may waive the im10 position of sanctions under paragraph (1) or (2) of

11 subsection (c) with respect to a product or service if

12 the President certifies to the Congress that—

13 (A) the product or service is essential to

14 the national security of the United States; and

15 (B) the sanctioned entity is a sole source

16 supplier of the product or service, the product

17 or service is not available from any alternative

18 reliable supplier, and the need for the product

19 or service cannot be met in a timely manner by

20 improved manufacturing processes or techno21 logical developments.

22 (2) ADDITIONAL WAIVER.—(A) The President

23 may waive the imposition of any sanction under sub24 section (c)(2) if the President determines such waiv-
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1 er is essential to the national security of the United

2 States.

3 (B) If the President decides to apply the waiver

4 described in subparagraph (A), the President shall

5 so notify the Congress not less than 20 days before

6 issuing the waiver. Such notification shall include a

7 report fully articulating the rationale and cir8 cumstances which led the President to exercise the

9 waiver authority.

10 (3) EXCEPTIONS.—The President shall not

11 apply the sanction under subsection (c)(2) prohibit12 ing the importation of the products of a sanctioned

13 entity—

14 (A) in the case of procurement of defense

15 articles or defense services—

16 (i) under existing contracts or sub17 contracts, including the exercise of options

18 for production quantities to satisfy require19 ments essential to the national security of

20 the United States;

21 (ii) if the President determines that

22 the entity to which the sanctions would be

23 applied is a sole source supplier of the de24 fense articles and services, that the defense

25 articles or services are essential to the na-
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1 tional security of the United States, and

2 that alternative sources are not readily or

3 reasonably available; or

4 (iii) if the President determines that

5 such articles or services are essential to the

6 national security of the United States

7 under defense coproduction agreements or

8 Programs of Cooperation of the North At9 lantic Treaty Organization;

10 (B) to products or services provided under

11 contracts entered into before the date on which

12 the President publishes his intention to impose

13 the sanctions; or

14 (C) to—

15 (i) spare parts;

16 (ii) components parts, but not finished

17 products, essential to United States prod18 ucts or production;

19 (iii) routine services and maintenance

20 of products, to the extent that alternative

21 sources are not readily or reasonably avail22 able; or

23 (iv) information or technology essen24 tial to United States products or produc25 tion.
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1 (g) WAIVERS OF VIOLATIONS UNDER SUBSECTION

2 (d).—

3 (1) CRITERIA FOR WAIVER.—The President

4 may waive the application of any sanction imposed

5 with respect to a country under paragraph (4) or (6)

6 of subsection (d)—

7 (A) if—

8 (i) in the case of any sanction other

9 than a sanction specified in subsection

10 (d)(4)(F) or (d)(6)(C)(ii) (relating to im11 port restrictions) or (d)(6)(D) (relating to

12 the downgrading or suspension of diplo13 matic relations), the President determines

14 and certifies to the Congress that such

15 waiver is essential to the national security

16 interests of the United States, and the

17 President notifies the Committee on For18 eign Relations of the Senate and the Com19 mittee on International Relations of the

20 House of Representatives of his determina21 tion and certification at least 15 days be22 fore the waiver takes effect, in accordance

23 with the procedures applicable to

24 reprogramming notifications under section
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1 634A of the Foreign Assistance Act of

2 1961; or

3 (ii) in the case of any sanction speci4 fied in subsection (d)(4)(F) or (d)(6)(C)(ii)

5 (relating to import restrictions), the Presi6 dent determines and certifies to the Con7 gress that such waiver is essential to the

8 national security interests of the United

9 States, and the President notifies the Com10 mittee on Finance of the Senate and the

11 Committee on Ways and Means and the

12 Committee on International Relations of

13 the House of Representatives of his deter14 mination and certification at least 15 days

15 before the waiver takes effect; or

16 (B) if the President determines and cer17 tifies to the Congress that there has been a fun18 damental change in the leadership and policies

19 of the government of that country, and if the

20 President notifies the Congress at least 20 days

21 before the waiver takes effect.

22 (2) REPORT.—In the event that the President

23 decides to exercise the waiver authority provided in

24 paragraph (1) with respect to a country, the Presi25 dent’s notification to the Congress under such para-
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1 graph shall include a report fully articulating the ra2 tionale and circumstances which led the President to

3 exercise that waiver authority, including a descrip4 tion of the steps which the government of that coun5 try has taken to satisfy the conditions set forth in

6 subparagraphs (A) through (D) of subsection (e)(2).

7 (h) CONTRACT SANCTITY.—

8 (1) SANCTIONS NOT APPLIED TO EXISTING

9 CONTRACTS.—(A) A sanction described in subpara10 graph (D), (E), or (F) of subsection (d)(4) or in any

11 of subparagraphs (A) through (C) of subsection

12 (d)(6) shall not apply to any activity pursuant to

13 any contract or international agreement entered into

14 before the date of the presidential determination

15 under subsection (d)(1) unless the President deter16 mines, on a case-by-case basis, that to apply such

17 sanction to that activity would prevent the perform18 ance of a contract or agreement that would have the

19 effect of assisting a country in using chemical or bi20 ological weapons in violation of international law or

21 in using lethal chemical or biological weapons

22 against its own nationals.

23 (B) The same restrictions of section 114(l) (re24 lating to contract sanctity) which are applicable to

25 exports prohibited under this title shall apply to ex-
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1 ports prohibited under subsection (d)(4)(E) or

2 (d)(6)(C)(i). For purposes of this subparagraph, any

3 contract or agreement the performance of which (as

4 determined by the President) would have the effect

5 of assisting a foreign government in using chemical

6 or biological weapons in violation of international

7 law or in using chemical or biological weapons

8 against its own nationals shall be treated as con9 stituting a breach of the peace that poses a serious

10 and direct threat to the strategic interest of the

11 United States, within the meaning of subparagraph

12 (A) of section 114(l)(2).

13 (2) SANCTIONS APPLIED TO EXISTING CON14 TRACTS.—The sanctions described in subparagraphs

15 (A), (B), and (C) of subsection (d)(4) shall apply to

16 contracts, agreements, and licenses without regard

17 to the date the contract or agreement was entered

18 into or the license was issued (as the case may be),

19 except that such sanctions shall not apply to any

20 contract or agreement entered into or license issued

21 before the date of the presidential determination

22 under subsection (d)(1) if the President determines

23 that the application of such sanction would be det24 rimental to the national security interests of the

25 United States.
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1 (i) PROTECTION OF CLASSIFIED INFORMATION.—To

2 the extent practicable, reports submitted under this sec3 tion should be based on unclassified information. Portions

4 of such reports may be classified.

5 SEC. 112. ADMINISTRATIVE AND JUDICIAL REVIEW.

6 (a) APPLICABILITY.—

7 (1) EXEMPTIONS FROM ADMINISTRATIVE PRO8 CEDURE.—Except as provided in this section, sec9 tions 551 and 553 through 559 of title 5, United

10 States Code, do not apply to the functions exercised

11 under this title.

12 (2) JUDICIAL REVIEW.—(A) Subject to sub13 paragraphs (B) and (C) and except as otherwise

14 provided in this section, actions under this title shall

15 be subject to judicial review under chapter 7 of title

16 5, United States Code.

17 (B) Any discretionary determination of whether

18 a commodity or technology should or should not be

19 on the control index shall not be subject to judicial

20 review.

21 (C) An action to obtain judicial review under

22 this subsection may be brought in the appropriate

23 United States district court.

24 (b) PROCEDURES RELATING TO CIVIL PENALTIES

25 AND SANCTIONS.—
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1 (1) ADMINISTRATIVE PROCEDURES.—Any ad2 ministrative sanction imposed under section 110(c)

3 may be imposed only after notice and opportunity

4 for an agency hearing on the record in accordance

5 with sections 554 through 557 of title 5, United

6 States Code.

7 (2) AVAILABILITY OF CHARGING LETTER.—Any

8 charging letter or other document initiating adminis9 trative proceedings for the imposition of sanctions

10 for violations of the regulations issued under section

11 108(a) shall be made available for public inspection

12 and copying.

13 (c) COLLECTION.—If any person fails to pay a civil

14 penalty imposed under section 110(c), the Secretary may

15 ask the Attorney General to bring a civil action in an ap16 propriate district court to recover the amount imposed

17 (plus interest at currently prevailing rates from the date

18 of the final order).

19 (d) IMPOSITION OF TEMPORARY DENIAL ORDERS.—

20 (1) GROUNDS FOR IMPOSITION.—In any case in

21 which there is reasonable cause to believe that a per22 son is engaged in or is about to engage in any act

23 or practice which constitutes or would constitute a

24 violation of this title, or any regulation, order, or li25 cense issued under this title, or in any case in which
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1 a criminal indictment has been returned against a

2 person alleging a violation of this title or any of the

3 statutes listed in section 110(f), the Secretary may,

4 without a hearing, issue an order temporarily deny5 ing that person’s United States export privileges

6 (hereafter in this subsection referred to a ‘‘tem7 porary denial order’’). A temporary denial order may

8 be effective for no longer than 180 days, but may be

9 renewed by the Secretary, following notice and an

10 opportunity for a hearing, for additional periods of

11 not more than 180 days each.

12 (2) ADMINISTRATIVE APPEALS.—The person or

13 persons subject to the issuance or renewal of a tem14 porary denial order may appeal the issuance or re15 newal of the temporary denial order, supported by

16 briefs and other material, to an administrative law

17 judge who shall, within 15 working days after the

18 appeal is filed, issue a decision affirming, modifying,

19 or vacating the temporary denial order. The tem20 porary denial order shall be affirmed if it is shown

21 that—

22 (A) there is reasonable cause to believe

23 that the person subject to the order is engaged

24 in or is about to engage in any act or practice

25 which constitutes or would constitute a violation
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1 of this title, or any regulation, order, or license

2 issued under this title, or

3 (B) a criminal indictment has been re4 turned against the person subject to the order

5 alleging a violation of this title or any of the

6 statutes listed in section 110(f).

7 The decision of the administrative law judge shall be

8 final unless, within 10 working days after the date

9 of the administrative law judge’s decision, an appeal

10 is filed with the Secretary. On appeal, the Secretary

11 shall either affirm, modify, reverse, or vacate the de12 cision of the administrative law judge by written

13 order within 10 working days after receiving the ap14 peal. The written order of the Secretary shall be

15 final and is not subject to judicial review, except as

16 provided in paragraph (3). The materials submitted

17 to the administrative law judge and the Secretary

18 shall constitute the administrative record for pur19 poses of review by the court.

20 (3) COURT APPEALS.—An order of the Sec21 retary affirming, in whole or in part, the issuance or

22 renewal of a temporary denial order may, within 15

23 days after the order is issued, be appealed by a per24 son subject to the order to the United States Court

25 of Appeals for the District of Columbia Circuit,
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1 which shall have jurisdiction of the appeal. The

2 court may review only those issues necessary to de3 termine whether the issuance of the temporary de4 nial order was based on reasonable cause to believe

5 that the person subject to the order was engaged in

6 or was about to engage in any act or practice which

7 constitutes or would constitute a violation of this

8 title, or any regulation, order, or license issued

9 under this title, or if a criminal indictment has been

10 returned against the person subject to the order al11 leging a violation of this title or any of the statutes

12 listed in section 110(f). The court shall vacate the

13 Secretary’s order if the court finds that the Sec14 retary’s order is arbitrary, capricious, an abuse of

15 discretion, or otherwise not in accordance with law.

16 (e) APPEALS FROM LICENSING AND CLASSIFICATION

17 ACTIONS.—

18 (1) LICENSE DENIALS.—A determination of the

19 Secretary under section 109 to deny a license may

20 be appealed by the applicant to an administrative

21 law judge who shall have the authority to conduct

22 proceedings to determine only whether the item

23 sought to be exported is in fact on the control list.

24 Such proceedings shall be conducted within 90 days

25 after the appeal is filed. Any determination by an
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1 administrative law judge under this subsection and

2 all materials filed before such judge in the proceed3 ings shall be reviewed by the Secretary, who shall ei4 ther affirm or vacate the determination in a written

5 decision within 30 days after receiving the deter6 mination.

7 (2) CLASSIFICATION DECISIONS.—(A) Within

8 30 days after the issuance of a classification decision

9 under section 109(h)(1), or within 30 days after the

10 failure to issue such a classification decision in re11 sponse to a request for such a decision, any United

12 States person aggrieved by such decision or failure

13 may file an appeal thereof to an administrative law

14 judge, but only on issues regarding such classifica15 tion decision including, but not limited to, decisions

16 of whether an item is covered by any general or spe17 cific note. The administrative law judge may not re18 view determinations as to the reliability of an end

19 user or the nature of an end use or end user. The

20 administrative law judge shall, within 90 days after

21 such appeal is filed, issue his or her decision and

22 issue any order that is necessary or appropriate to

23 carry out such decision. Such order shall be binding

24 upon the Secretary unless and until vacated or modi25 fied under subparagraph (B). Such order may be
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1 stayed by the administrative law judge or the Sec2 retary pending the filing and determination of an

3 appeal under subparagraph (B).

4 (B) Any United States person aggrieved by a

5 decision of the administrative law judge under sub6 paragraph (A) may appeal such decision to the Sec7 retary within 45 days after receiving notification of

8 such decision. The Secretary shall, in a written

9 order, affirm, modify, or vacate the decision of the

10 administrative law judge within 30 days after such

11 appeal is filed. The authority of the Secretary under

12 this paragraph may not be delegated to an officer or

13 employee of the Bureau of Export Administration.

14 (3) PUBLICATION AND INDEXING OF DECI15 SIONS.—Subject to the limitations of section 114(g),

16 final decisions of administrative law judges and the

17 Secretary under this subsection shall be published in

18 the Federal Register within 15 days after they are

19 rendered. The Secretary shall index decisions on ap20 peals of license denials.

21 (4) CONDUCT OF PROCEEDINGS.—Except as

22 provided in this subsection, proceedings under this

23 subsection shall be conducted in accordance with

24 sections 554 (notwithstanding subsection (a)(4) of
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1 such section), 556, and 557 of title 5, United States

2 Code.

3 (5) REGULATIONS.—The Secretary shall issue

4 such regulations as are necessary to carry out this

5 subsection.

6 (6) OTHER RIGHTS NOT AFFECTED.—The

7 rights granted by this subsection do not abridge any

8 other rights provided by law.

9 (7) EFFECTIVE DATE.—This subsection shall

10 take effect 120 days after the date of the enactment

11 of this Act. Regulations implementing this sub12 section shall be promulgated no later than such ef13 fective date.

14 SEC. 113. ENFORCEMENT.

15 (a) GENERAL AUTHORITY AND DESIGNATION.—

16 (1) POLICY GUIDANCE ON ENFORCEMENT.—

17 The Secretary, in consultation with the Secretary of

18 the Treasury and the heads of other appropriate de19 partments and agencies, shall be responsible for pro20 viding policy guidance on the enforcement of this

21 title.

22 (2) GENERAL AUTHORITIES.—(A) To the extent

23 necessary or appropriate to the enforcement of this

24 title or to the imposition of any penalty, forfeiture,

25 or liability arising under the Export Administration
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1 Act of 1979, officers or employees of the Depart2 ment of Commerce designated by the Secretary and

3 officers and employees of the United States Customs

4 Service designated by the Commissioner may exer5 cise the enforcement authorities described in para6 graph (3).

7 (B) In carrying out the enforcement authorities

8 described in paragraph (3), the Commissioner of

9 Customs, and employees of the United States Cus10 toms Service designated by the Commissioner, may

11 make investigations within or outside the United

12 States and at those ports of entry or exit from the

13 United States where officers of the United States

14 Customs Service are authorized by law to carry out

15 such enforcement responsibilities. Subject to para16 graph (3), the United States Customs Service is au17 thorized, in the enforcement of this title, to search,

18 detain (after search), and seize commodities or tech19 nology at those ports of entry or exit from the

20 United States where officers of the Customs Service

21 are authorized by law to conduct such searches, de22 tentions, and seizures, and at those places outside

23 the United States where the Customs Service, pursu24 ant to agreements or other arrangements with other
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1 countries, is authorized to perform enforcement ac2 tivities.

3 (C) In carrying out the enforcement authorities

4 described in paragraph (3), the Secretary, and offi5 cers and employees of the Department of Commerce

6 designated by the Secretary, may make investiga7 tions within the United States, and shall conduct,

8 outside the United States, pre-license and post-ship9 ment verifications of items licensed for export and

10 investigations in the enforcement of section 108. The

11 Secretary, and officers and employees of the Depart12 ment of Commerce designated by the Secretary, are

13 authorized to search, detain (after search), and seize

14 items at those places within the United States other

15 than those ports and borders specified in subpara16 graph (B). The search, detention (after search), or

17 seizure of items at those ports and borders specified

18 in subparagraph (B) may be conducted by officers

19 and employees of the Department of Commerce only

20 with the concurrence of the Commissioner of Cus21 toms or a person designated by the Commissioner.

22 (D) The Secretary and the Commissioner of

23 Customs may enter into agreements and arrange24 ments for the enforcement of this title, including for25 eign investigations and information exchange.
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1 (3) SPECIFIC AUTHORITIES.—(A) Any officer or

2 employee designated under paragraph (2) may do

3 the following in carrying out the enforcement au4 thority under this title:

5 (i) Make investigations of, obtain informa6 tion from, make inspection of any books,

7 records, or reports (including any writings re8 quired to be kept by the Secretary), premises,

9 or property of, and take the sworn testimony of,

10 any person.

11 (ii) Administer oaths or affirmations, and

12 by subpoena require any person to appear and

13 testify or to appear and produce books, records,

14 and other writings, or both. In the case of con15 tumacy by, or refusal to obey a subpoena issued

16 to, any such person, a district court of the

17 United States, after notice to any such person

18 and a hearing, shall have jurisdiction to issue

19 an order requiring such person to appear and

20 give testimony or to appear and produce books,

21 records, and other writings, or both. Any failure

22 to obey such order of the court may be pun23 ished by such court as a contempt thereof.

24 (B) Any officer or employee of the Office of Ex25 port Enforcement of the Department of Commerce
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1 who is designated by the Secretary under paragraph

2 (2), and any officer or employee of the United

3 States Customs Service who is designated by the

4 Commissioner of Customs under paragraph (2), may

5 do the following in carrying out the enforcement au6 thority under this title:

7 (i) Execute any warrant or other process

8 issued by a court or officer of competent juris9 diction with respect to the enforcement of this

10 title.

11 (ii) Make arrests without warrant for any

12 violation of this title committed in his or her

13 presence or view, or if the officer or employee

14 has probable cause to believe that the person to

15 be arrested has committed, is committing, or is

16 about to commit such a violation.

17 (iii) Carry firearms.

18 (C) Any officer or employee of the United

19 States Customs Service designated by the Commis20 sioner of Customs under paragraph (2) may do the

21 following in carrying out the enforcement authority

22 under this title:

23 (i) Stop, search, and examine a vehicle,

24 vessel, aircraft, or person on which or whom the

25 officer or employee has reasonable cause to sus-
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1 pect there is any item that has been, is being,

2 or is about to be exported from or transited

3 through the United States in violation of this

4 title.

5 (ii) Detain and search any package or con6 tainer in which the officer or employee has rea7 sonable cause to suspect there is any item that

8 has been, is being, or is about to be exported

9 from or transited through the United States in

10 violation of this title.

11 (D) Any officer or employee designated under

12 paragraph (2) may detain (after search under sub13 paragraph (C)) or seize any item, for purposes of se14 curing for trial or forfeiture to the United States, on

15 or about a vehicle, vessel, aircraft, or person de16 scribed in subparagraph (C)(i), or in a package or

17 container described in subparagraph (C)(ii), if the

18 officer or employee has probable cause to believe the

19 item has been, is being, or is about to be exported

20 from or transited through the United States in viola21 tion of this title.

22 (4) OTHER AUTHORITIES NOT AFFECTED.—The

23 authorities conferred by this section are in addition

24 to any authorities conferred under other laws.
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1 (b) FORFEITURE.—All commodities or tangible items

2 lawfully seized under subsection (a) by designated officers

3 or employees shall be subject to forfeiture to the United

4 States. Those provisions of law relating to—

5 (1) the seizure, summary and judicial forfeiture,

6 and condemnation of property for violations of the

7 customs laws,

8 (2) the disposition of such property or the pro9 ceeds from the sale thereof,

10 (3) the remission or mitigation of such forfeit11 ures, and

12 (4) the compromise of claims,

13 shall apply to seizures and forfeitures incurred, or alleged

14 to have been incurred, under the provisions of this sub15 section, insofar as applicable and not inconsistent with

16 this title; except that such duties as are imposed upon the

17 customs officer or any other person with respect to the

18 seizure and forfeiture of property under the customs laws

19 may be performed with respect to seizures and forfeitures

20 of property under this subsection by the Secretary or such

21 officers and employees of the Department of Commerce

22 as may be authorized or designated for that purpose by

23 the Secretary, or, upon the request of the Secretary, by

24 any other agency that has authority to manage and dis25 pose of seized property.
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1 (c) REFERRAL OF CASES.—All cases involving viola2 tions of this title shall be referred to the Secretary for

3 purposes of determining civil penalties and administrative

4 sanctions under section 110(c), or to the Attorney General

5 for criminal action in accordance with this title.

6 (d) UNDERCOVER INVESTIGATION OPERATIONS.—

7 (1) USE OF FUNDS.—With respect to any un8 dercover investigative operation conducted by the Of9 fice of Export Enforcement of the Department of

10 Commerce (hereafter in this subsection referred to

11 as ‘‘OEE’’) necessary for the detection and prosecu12 tion of violations of this title—

13 (A) funds made available for export en14 forcement under this title may be used to pur15 chase property, buildings, and other facilities,

16 and to lease space within the United States,

17 without regard to sections 1341 and 3324 of

18 title 31, United States Code, the third undesig19 nated paragraph under the heading of ‘‘MIS20 CELLANEOUS’’ of the Act of March 3, 1877, (40

21 U.S.C. 34), sections 3732(a) and 3741 of the

22 Revised Statutes of the United States (41

23 U.S.C. 11(a) and 22), and subsections (a) and

24 (c) of section 304, and section 305 of the Fed-
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1 eral Property and Administrative Services Act

2 of 1949 (41 U.S.C. 254(a) and (c) and 255),

3 (B) funds made available for export en4 forcement under this title may be used to estab5 lish or to acquire proprietary corporations or

6 business entities as part of an undercover oper7 ation, and to operate such corporations or busi8 ness entities on a commercial basis, without re9 gard to section 9102 of title 31, United States

10 Code,

11 (C) funds made available for export en12 forcement under this title and the proceeds

13 from undercover operations may be deposited in

14 banks or other financial institutions without re15 gard to the provisions of section 648 of title 18,

16 United States Code, and section 3302 of title

17 31, United States Code, and

18 (D) the proceeds from undercover oper19 ations may be used to offset necessary and rea20 sonable expenses incurred in such operations

21 without regard to the provisions of section 3302

22 of title 31, United States Code,

23 if the Director of OEE (or an officer or employee

24 designated by the Director) certifies, in writing, that

25 the action authorized by subparagraph (A), (B), (C),
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1 or (D) for which the funds would be used is nec2 essary for the conduct of the undercover operation.

3 (2) DISPOSITION OF BUSINESS ENTITIES.—If a

4 corporation or business entity established or ac5 quired as part of an undercover operation with a net

6 value of more than $50,000 is to be liquidated, sold,

7 or otherwise disposed of, the Director of OEE shall

8 report the circumstances to the Secretary and the

9 Comptroller General, as much in advance of such

10 disposition as the Director of OEE or his or her des11 ignee determines is practicable. The proceeds of the

12 liquidation, sale, or other disposition, after obliga13 tions incurred by the corporation or business enter14 prise are met, shall be deposited in the Treasury of

15 the United States as miscellaneous receipts.

16 (3) DEPOSIT OF PROCEEDS.—As soon as the

17 proceeds from an OEE undercover investigative op18 eration with respect to which an action is authorized

19 and carried out under this subsection are no longer

20 necessary for the conduct of such operation, such

21 proceeds or the balance of such proceeds remaining

22 at the time shall be deposited into the Treasury of

23 the United States as miscellaneous receipts.

24 (4) AUDIT AND REPORT.—(A) The Director of

25 OEE shall conduct a detailed financial audit of each
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1 OEE undercover investigative operation which is

2 closed and shall submit the results of the audit in

3 writing to the Secretary. Not later than 180 days

4 after an undercover operation is closed, the Sec5 retary shall submit to the Congress a report on the

6 results of the audit.

7 (B) The Secretary shall submit annually to the

8 Congress a report, which may be included in the an9 nual report under section 115, specifying the follow10 ing information:

11 (i) The number of undercover investigative

12 operations pending as of the end of the period

13 for which such report is submitted.

14 (ii) The number of undercover investigative

15 operations commenced in the 1-year period pre16 ceding the period for which such report is sub17 mitted.

18 (iii) The number of undercover investiga19 tive operations closed in the 1-year period pre20 ceding the period for which such report is sub21 mitted and, with respect to each such closed un22 dercover operation, the results obtained and any

23 civil claims made with respect thereto.

24 (5) DEFINITIONS.—For purposes of paragraph

25 (4)—
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1 (A) the term ‘‘closed’’, with respect to an

2 undercover investigative operation, refers to the

3 earliest point in time at which all criminal pro4 ceedings (other than appeals) pursuant to the

5 investigative operation are concluded, or covert

6 activities pursuant to such operation are con7 cluded, whichever occurs later;

8 (B) the terms ‘‘undercover investigative

9 operation’’ and ‘‘undercover operation’’ mean

10 any undercover investigative operation con11 ducted by OEE—

12 (i) in which the gross receipts (exclud13 ing interest earned) exceed $25,000, or ex14 penditures (other than expenditures for

15 salaries of employees) exceed $75,000, and

16 (ii) which is exempt from section 3302

17 or 9102 of title 31, United States Code,

18 except that clauses (i) and (ii) shall not apply

19 with respect to the report to the Congress re20 quired by subparagraph (B) of paragraph (4);

21 and

22 (C) the term ‘‘employees’’ means employ23 ees, as defined in section 2105 of title 5, United

24 States Code, of the Department of Commerce.
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1 (e) REFERENCE TO ENFORCEMENT.—For purposes

2 of this section, a reference to the enforcement of this title

3 or to a violation of this title includes a reference to the

4 enforcement or a violation of any regulation, license, or

5 order issued under this title.

6 SEC. 114. EXPORT CONTROL AUTHORITIES AND PROCE7 DURES.

8 (a) POLICY GUIDANCE.—

9 (1) IN GENERAL.—As directed by the Presi10 dent, annual policy guidance shall be issued to pro11 vide detailed implementing guidance to export licens12 ing officials in all appropriate departments and

13 agencies.

14 (2) ELEMENTS OF ANNUAL POLICY REVIEW.—

15 In order to develop such annual policy guidance, ex16 port controls and other regulations to implement

17 this title shall be reviewed annually. This annual pol18 icy review shall include an evaluation of the benefits

19 and costs of the imposition, extension, or removal of

20 controls under this title. This review shall include—

21 (A) an assessment by the Secretary of the

22 economic consequences of the imposition, exten23 sion, or removal of controls during the preced24 ing 12 months, including the impact on United

25 States exports or jobs;
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1 (B) an assessment by the Secretary of

2 State of the objectives of the controls in effect

3 during the preceding 12 months, and the extent

4 to which the controls have served those objec5 tives; and

6 (C) an assessment by the Secretary of De7 fense of the impact that the imposition, exten8 sion, or removal of controls during the preced9 ing 12 months has had on United States na10 tional security.

11 (b) EXPORT CONTROL AUTHORITY AND FUNC12 TIONS.—

13 (1) IN GENERAL.—Unless otherwise reserved to

14 the President or a department or agency outside the

15 Department of Commerce, all power, authority, and

16 discretion conferred by this title shall be exercised by

17 the Secretary.

18 (2) DELEGATION OF FUNCTIONS OF THE SEC19 RETARY.—The Secretary may delegate any function

20 under this title to the Under Secretary of Commerce

21 for Export Administration appointed under sub22 section (d) or to any other officer of the Department

23 of Commerce.

24 (c) EXPORT CONTROL POLICY COMMITTEE.—
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1 (1) ESTABLISHMENT.—There is established an

2 Export Control Policy Committee (hereafter in this

3 subsection referred to as the ‘‘Committee’’).

4 (2) FUNCTIONS.—The Committee shall—

5 (A) provide policy guidance and advice to

6 the President on export control issues under

7 this title;

8 (B) review policy recommendations pro9 posed by the Secretary and other members of

10 the Committee; and

11 (C) receive policy recommendations from

12 other agencies and resolve any policy disputes

13 among departments and agencies under this

14 title.

15 (3) MEMBERSHIP.—The Committee shall be

16 comprised of—

17 (A) the Secretary;

18 (B) the Secretary of Defense;

19 (C) the Secretary of Energy;

20 (D) the Secretary of State;

21 (E) the National Security Adviser;

22 (F) the National Economic Adviser;

23 (G) the Secretary of the Treasury;

24 (H) the United States Trade Representa25 tive; and
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1 (I) the Director of the Arms Control and

2 Disarmament Agency.

3 (4) CHAIR.—The Committee shall be jointly

4 chaired by the National Economic Adviser and the

5 National Security Adviser.

6 (5) DELEGATION; OTHER REPRESENTATIVES.—

7 A member of the Committee under paragraph (3)

8 may designate the deputy head of his or her depart9 ment or agency to serve in his or her absence as a

10 member of the Committee, but this authority may

11 not be delegated to any other individual. The Chairs

12 may also invite the temporary participation in the

13 Committee’s meetings of representatives from other

14 offices and agencies as appropriate to the issues

15 under consideration.

16 (6) MEETINGS.—The Secretary or either Chair

17 of the Committee may call a meeting of the Commit18 tee. Meetings shall not be subject to section 552b of

19 title 5, United States Code.

20 (d) UNDER SECRETARY OF COMMERCE; ASSISTANT

21 SECRETARIES.—

22 (1) APPOINTMENT.—The President shall ap23 point, by and with the advice and consent of the

24 Senate, an Under Secretary of Commerce for Export

25 Administration who shall carry out all functions of
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1 the Secretary under this title and other provisions of

2 law relating to national security, as the Secretary

3 may delegate. The President shall appoint, by and

4 with the advice and consent of the Senate, two As5 sistant Secretaries of Commerce to assist the Under

6 Secretary in carrying out such functions.

7 (2) TRANSITION PROVISIONS.—Those individ8 uals serving in the positions of Under Secretary of

9 Commerce for Export Administration and Assistant

10 Secretaries of Commerce under section 15(a) of the

11 Export Administration Act of 1979, on the day be12 fore the date of the enactment of this Act, shall be

13 deemed to have been appointed under paragraph (1)

14 as of such date of enactment.

15 (e) ISSUANCE OF REGULATIONS.—The President and

16 the Secretary may issue such regulations as are necessary

17 to carry out this title. Any such regulations the purpose

18 of which is to carry out section 105 or 106 may be issued

19 only after the regulations are submitted for review to such

20 departments or agencies as the President considers appro21 priate, and to any appropriate export advisory committee

22 appointed under section 104(f). The preceding sentence

23 does not require the concurrence or approval of any offi24 cial, department, or agency to which such regulations are

25 submitted.
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1 (f) AMENDMENTS TO REGULATIONS.—If the Sec2 retary proposes to amend regulations issued under this

3 title, the Secretary shall report to the Committee on Bank4 ing, Housing, and Urban Affairs of the Senate and the

5 Committee on International Relations of the House of

6 Representatives on the intent and rationale of such

7 amendments. Such report shall evaluate the cost and bur8 den to the United States exporters of the proposed amend9 ments in relation to any enhancement of licensing objec10 tives. The Secretary shall consult with the appropriate ex11 port advisory committees appointed under section 104(f)

12 in formulating or amending regulations issued under this

13 title.

14 (g) CONFIDENTIALITY OF INFORMATION.—

15 (1) EXEMPTIONS FROM DISCLOSURE.—

16 (A) Except as otherwise provided by the

17 third sentence of section 108(b)(2), information

18 obtained under the Export Administration Act

19 of 1979 and its predecessor statutes on or be20 fore June 30, 1980, which is deemed confiden21 tial, including Shipper’s Export Declarations, or

22 with reference to which a request for confiden23 tial treatment is made by the person furnishing

24 such information, shall be exempt from disclo25 sure under section 552 of title 5, United States
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1 Code, and such information shall not be pub2 lished or disclosed unless the Secretary deter3 mines that the withholding thereof is contrary

4 to the national interest.

5 (B) Except as otherwise provided by the

6 third sentence of section 108(b)(2), information

7 obtained under this title or under the Export

8 Administration Act of 1979 after June 30,

9 1980, may be withheld from disclosure only to

10 the extent permitted by statute, except that in11 formation submitted, obtained, or considered in

12 connection with an application for an export li13 cense or other export authorization under the

14 Export Administration Act of 1979 or this title,

15 including the export license or other export au16 thorization itself, classification requests de17 scribed in section 109(h)(1), information ob18 tained during the course of a foreign availabil19 ity assessment, information or evidence ob20 tained in the course of any investigation, and

21 information obtained or furnished under this

22 title in connection with international agree23 ments, treaties, or obligations shall be withheld

24 from public disclosure unless the release of such
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1 information is determined by the Secretary to

2 be in the national interest.

3 (2) INFORMATION TO CONGRESS AND GAO.—

4 (A) IN GENERAL.—Nothing in this title

5 shall be construed as authorizing the withhold6 ing of information from the Congress or from

7 the General Accounting Office.

8 (B) AVAILABILITY TO THE CONGRESS.—

9 (i) IN GENERAL.—All information ob10 tained at any time under this title or pre11 vious Acts regarding the control of exports,

12 including any report or license application

13 required under this title, shall be made

14 available to any committee or subcommit15 tee of Congress of appropriate jurisdiction

16 upon the request of the chairman or rank17 ing minority member of such committee or

18 subcommittee.

19 (ii) PROHIBITION ON FURTHER DIS20 CLOSURE.—No committee, subcommittee,

21 or Member of Congress shall disclose any

22 information obtained under this title or

23 previous Acts regarding the control of ex24 ports which is submitted on a confidential

25 basis to the Congress under clause (i) un-
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1 less the full committee to which the infor2 mation is made available determines that

3 the withholding of the information is con4 trary to the national interest.

5 (C) AVAILABILITY TO THE GAO.—

6 (i) IN GENERAL.—Notwithstanding

7 paragraph (1), information referred to in

8 subparagraph (B) shall, consistent with

9 the protection of intelligence, counterintel10 ligence, and law enforcement sources,

11 methods, and activities, as determined by

12 the agency that originally obtained the in13 formation, and consistent with the provi14 sions of section 716 of title 31, United

15 States Code, be made available only by the

16 agency, upon request, to the Comptroller

17 General of the United States or to any of18 ficer or employee of the General Account19 ing Office authorized by the Comptroller

20 General to have access to such informa21 tion.

22 (ii) PROHIBITION ON FURTHER DIS23 CLOSURES.—No officer or employee of the

24 General Accounting Office shall disclose,

25 except to the Congress in accordance with
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1 this paragraph, any such information

2 which is submitted on a confidential basis

3 and from which any individual can be iden4 tified.

5 (3) INFORMATION EXCHANGE.—Notwithstand6 ing paragraph (1), the Secretary and the Commis7 sioner of Customs shall exchange licensing and en8 forcement information with each other which is nec9 essary to facilitate enforcement efforts and effective

10 license decisions.

11 (4) PENALTIES FOR DISCLOSURE OF CON12 FIDENTIAL INFORMATION.—Any officer or employee

13 of the United States, or any department or agency

14 thereof, who publishes, divulges, discloses, or makes

15 known in any manner or to any extent not author16 ized by law any information that—

17 (A) he or she obtains in the course of his

18 or her employment or official duties or by rea19 son of any examination or investigation made

20 by, or report or record made to or filed with,

21 such department or agency, or officer or em22 ployee thereof, and

23 (B) is exempt from disclosure under this

24 subsection,
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1 shall be fined not more than $10,000, or imprisoned

2 not more than one year, or both, shall be removed

3 from office or employment, and shall be subject to

4 a civil penalty of not more than $1,000 imposed by

5 the Secretary under section 110(c).

6 (h) AUTHORITY FOR SEMINAR AND PUBLICATIONS

7 FUND.—The Secretary is authorized to cooperate with

8 public agencies, other governments, international organi9 zations, private individuals, private associations, and other

10 groups in connection with seminars, publications, and re11 lated activities to carry out export activities, including

12 educating the public or government officials on the appli13 cation of this title and the regulations issued under this

14 title. The Secretary is further authorized to accept con15 tributions of funds, property, or services in connection

16 with such activities to recover the cost of such programs

17 and activities. Contributions may include payments for

18 materials or services provided as part of such activities.

19 The contributions collected may be retained for use in cov20 ering the costs of such activities, and for providing infor21 mation to the public with respect to this title and other

22 export control programs of the United States and other

23 governments.

24 (i) SUPPORT OF OTHER COUNTRIES’ EXPORT CON25 TROL PROGRAM.—The Secretary is authorized to provide
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1 training to officials of other countries on the principles

2 and procedures for the implementation of effective export

3 controls and shall participate in any such training pro4 vided by other departments and agencies of the United

5 States.

6 (j) INCORPORATED COMMODITIES AND TECH7 NOLOGY.—

8 (1) COMMODITIES CONTAINING CONTROLLED

9 PARTS AND COMPONENTS.—Export licenses may not

10 be required under this title or any other provision of

11 law for a commodity solely because the commodity

12 contains parts or components on which export con13 trols are in effect under this title if such parts or

14 components—

15 (A) are essential to the functioning of the

16 commodity;

17 (B) are customarily included in sales of the

18 commodity in countries other than controlled

19 countries; and

20 (C) comprise 25 percent or less of the total

21 value of the commodity,

22 unless the commodity itself, if exported, would by

23 virtue of the functional characteristics of the com24 modity as a whole meet the requirements of sub25 paragraph (A) or (B) of section 105(a)(1).
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1 (2) REEXPORTS OF FOREIGN-MADE ITEMS IN2 CORPORATING U.S. ITEMS.—

3 (A) COMMODITIES.—(i) Subject to clause

4 (ii), no authority or permission may be required

5 under section 105 or 106 to reexport a com6 modity that is produced in a country other than

7 the United States and incorporates commodities

8 that are subject to the jurisdiction of the Unit9 ed States, if the value of the controlled United

10 States content of the commodity produced in

11 such other country is 25 percent or less of the

12 total value of the commodity.

13 (ii) No authority or permission may be re14 quired under section 106 to reexport to a ter15 rorist country, or to a country against which an

16 embargo described in section 106(f)(1) is in ef17 fect, a commodity that is produced in a country

18 other than the United States and incorporates

19 commodities that are subject to the jurisdiction

20 of the United States, if the value of the con21 trolled United States content of the commodity

22 produced in such other country is 10 percent or

23 less of the total value of the commodity.

24 (iii) For purposes of clause (ii), a ‘‘terror25 ist country’’ is a country with respect to which
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1 a determination is in effect that was made

2 under section 106(i)(1)(A) of this Act, or sec3 tion 6(j)(1)(A) of the Export Administration

4 Act of 1979, that the government of such coun5 try has repeatedly provided support for acts of

6 international terrorism.

7 (B) TECHNOLOGY.—(i) No authority or

8 permission may be required under section 105

9 to reexport technology that is produced in a

10 country other than the United States and is

11 commingled with or drawn from technology that

12 is produced in the United States, if the value

13 of the controlled United States content of the

14 technology produced in such other country is 25

15 percent or less of the total value of the tech16 nology.

17 (ii) No authority or permission may be re18 quired under section 106 to reexport technology

19 that is produced in a country other than the

20 United States and is commingled with or drawn

21 from technology that is produced in the United

22 States, if the value of the controlled United

23 States content of the technology produced in

24 such other country is 10 percent or less of the

25 total value of the technology.
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1 (C) CONTROLLED CONTENT.—For pur2 poses of this paragraph, the ‘‘controlled United

3 States content’’ of a commodity or technology

4 means those commodities or technology that—

5 (i) are subject to the jurisdiction of

6 the United States;

7 (ii) are incorporated into the commod8 ity or technology; and

9 (iii) would, at the time of the reex10 port, require a validated license under sec11 tion 105 or 106 if exported from the Unit12 ed States to a country to which the com13 modity or technology is to be reexported.

14 (D) TREATMENT OF CERTAIN TECHNICAL

15 DATA.—For purposes of this subsection, tech16 nology and source code used to design or

17 produce commodities or software produced in a

18 country other than the United States are not

19 incorporated into such commodities or software.

20 (k) EXCEPTIONS FOR MEDICAL AND HUMANITARIAN

21 PURPOSES.—This title does not authorize controls on—

22 (1) medicine or medical supplies; or

23 (2) donations of items that are intended to

24 meet basic human needs, including food, educational

25 materials, seeds, hand tools, water resources equip-
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1 ment, clothing and shelter materials, and basic

2 household supplies.

3 (l) SANCTITY OF EXISTING CONTRACTS AND LI4 CENSES.—

5 (1) IN GENERAL.—The President may not pro6 hibit the export of items under section 105 or 106—

7 (A) in performance of a contract, agree8 ment, or other contractual commitment entered

9 into before the effective date of any export con10 trols imposed on such items by this title, or the

11 date on which the President reports to the Con12 gress the President’s intention to impose con13 trols on the export of such items, whichever

14 date occurs first, or

15 (B) under a validated license or other au16 thorization issued under this title before the ef17 fective date of any export controls imposed on

18 such items by this title, or the date on which

19 the President reports to the Congress the Presi20 dent’s intention to impose controls on the ex21 port of such items, whichever date occurs first.

22 (2) EXCEPTION.—The prohibition in paragraph

23 (1) shall not apply if the President determines and

24 certifies to the Congress that—
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1 (A) a breach of the peace poses a serious

2 and direct threat to the strategic interest of the

3 United States;

4 (B) the prohibition of exports under each

5 such contract, agreement, commitment, license,

6 or authorization will be directly instrumental in

7 remedying the situation posing the direct

8 threat; and

9 (C) the export controls will continue only

10 so long as the direct threat persists.

11 The authority of the President to make determina12 tions under this paragraph may not be delegated.

13 (m) PUBLICATION OF ACTIONS.—

14 (1) DECISIONS AND ACTIONS OF THE SEC15 RETARY.—

16 (A) IN GENERAL.—The Secretary shall

17 publish in the Federal Register, to the greatest

18 extent practicable, actions, procedures, and de19 cisions of the Secretary under this title, taking

20 into account restrictions on disclosure of classi21 fied or confidential information. The following

22 determinations of the Secretary shall in every

23 case be published in the Federal Register, un24 less a private party requested the determination

25 and asked that it not be published:
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1 (i) Classification of a commodity or

2 technology on the control index.

3 (ii) Calculation of a commonly-used

4 control index parameter for a commodity

5 or technology, including all officially ac6 cepted composite theoretical performance

7 calculations for computers and

8 microprocessors.

9 (B) NOTICE OF REVISIONS.—Whenever the

10 Secretary makes any revision in the control

11 index with respect to any commodity or tech12 nology, or with respect to any country or des13 tination affected by controls imposed under sec14 tion 105 or section 106, the Secretary shall

15 publish in the Federal Register a notice of such

16 revision and shall specify in such notice under

17 which authority the revision is being made.

18 (2) EXPORT CONTROL REGIME ACTIONS.—

19 (A) IN GENERAL.—Not more than 90 days

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

21 Secretary shall publish in the Federal Register

22 the full text of the lists of controlled items of

23 all export control regimes and all notes and un24 derstandings of the regimes concerning such

25 lists. The Secretary shall update the publication
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1 under the preceding sentence at least once in

2 each 1-year period occurring after the original

3 publication under this subparagraph.

4 (B) CONTENTS.—The Secretary shall pub5 lish in the Federal Register—

6 (i) the full text of any agreements af7 fecting the lists of controlled items of all

8 export control regimes, together with all

9 notes, understandings, and other aspects of

10 such agreements and all revisions to such

11 texts;

12 (ii) subject to the limitations set forth

13 in subsection (g), decisions on requests for

14 exceptions permitted by such export con15 trol regimes for particular exports;

16 (iii) other actions and decisions of

17 such export control regimes, to the maxi18 mum extent possible; and

19 (iv) unreliable end users with respect

20 to items on which export controls are im21 posed under this title, and persons to

22 whom sanctions have been applied, or

23 whose export privileges have been denied,

24 under this title.
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1 (C) TIMING.—Such publication shall be

2 made not more than 30 days after the agree3 ments are reached, the decisions are made, the

4 actions are taken, or the information becomes

5 available, as the case may be.

6 (D) EXCEPTION.—The publication of a

7 particular matter need not be made under this

8 paragraph to the extent that the Secretary sub9 mits a written finding to the Congress that to

10 publish that matter would be contrary to na11 tional or international security, would abridge

12 the confidentiality of the decision-making proc13 esses of an export control regime, or would oth14 erwise be inconsistent with the obligations of

15 the United States to an export control regime.

16 (n) NOTIFICATION OF THE PUBLIC; CONSULTATION

17 WITH INDUSTRY; RECORDKEEPING.—

18 (1) NOTIFICATION OF THE PUBLIC.—The Sec19 retary shall keep the public fully apprised of changes

20 in export control policy and procedures instituted

21 under this title with a view to encouraging trade.

22 (2) CONSULTATION WITH INDUSTRY.—The Sec23 retary shall meet regularly with export advisory com24 mittees appointed under section 104(f) in order to

25 obtain their views on United States export control
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1 policy and the foreign availability of commodities

2 and technology.

3 (o) DELEGATION TO COCOM.—The Secretary, or an

4 officer or employee of the Department of Commerce des5 ignated by the Secretary, shall be a member of the perma6 nent United States delegation to COCOM or its successor

7 export control regime.

8 (p) EXPORT CONTROL ATTACHES.—The Secretary

9 shall assign a full-time export control attache to each of

10 those countries that—

11 (1) pose the greatest threat to the United

12 States and its allies with respect to the proliferation

13 of weapons of mass destruction and missiles; and

14 (2) received exports pursuant to the largest

15 number of licenses issued under sections 105 and

16 106, during the preceding 2 calendar years, as com17 pared to licenses issued under such sections for ex18 ports to all countries.

19 Each such attache shall give priority to conducting post20 shipment verifications, prelicense checks, and other mon21 itoring of end uses in the country to which the attache

22 is assigned.

23 (q) AUTHORIZATION FOR TECHNICAL DATA.—A

24 validated license authorizing the export of any commod25 ities or technology under this title shall also authorize the
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1 export of operation technical data related to such commod2 ities or technology, whether or not such data is specifically

3 referenced in the license or license application, if the tech4 nical level of the data does not exceed the level reasonably

5 necessary to install, repair, maintain, inspect, operate, or

6 use the commodities or technology.

7 (r) LICENSES FOR SPARE PARTS NOT REQUIRED.—

8 An individual validated license shall not be required under

9 this title for replacement parts which are exported to re10 place on a one-for-one basis parts that were in a commod11 ity that was lawfully exported from the United States, un12 less the President determines that such a license should

13 be required for such parts.

14 SEC. 115. ANNUAL REPORT.

15 (a) CONTENTS.—Not later than March 1 of each

16 year, the Secretary shall submit to the Congress a report

17 on the administration of this title during the preceding

18 calendar year. All agencies shall cooperate fully with the

19 Secretary in providing information for such report. Such

20 report shall include detailed information on the following:

21 (1) The implementation of the policies set forth

22 in section 103, including delegations of authority by

23 the President under section 104(d), consultations

24 with the export advisory committees established

25 under section 104(f), and any changes in the exer-
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1 cise of the authorities contained in sections 105(a),

2 106(a), 107(a), and 108(a).

3 (2) With respect to multilateral export controls

4 imposed or maintained under section 105, the fol5 lowing:

6 (A) The effectiveness of each export con7 trol regime, as required by section 105(h), in8 cluding all information required by section

9 105(h)(2).

10 (B) Adjustments to multilateral export

11 controls.

12 (C) The implementation of the export li13 censing treatment authorized by section 105(e).

14 (D) Determinations of foreign availability

15 made under section 105(i), the criteria used to

16 make such determinations, the removal of any

17 export controls under such subsection, and any

18 evidence demonstrating a need to maintain ex19 port controls notwithstanding foreign availabil20 ity.

21 (E) The operation of the indexing system

22 under section 105(k).

23 (3) With respect to unilateral export controls

24 imposed under section 106, the following:

25 (A) The effectiveness of such controls.
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1 (B) Adjustments to such controls pursuant

2 to negotiations under subsections (a)(5) and (c)

3 of section 106.

4 (C) Embargoes imposed, maintained, or re5 moved in accordance with section 106, including

6 descriptions of each embargo and the rationale

7 for imposing, maintaining, or removing such

8 embargo.

9 (4) Short supply controls and monitoring under

10 section 107.

11 (5) Organizational and procedural changes un12 dertaken in furtherance of the policies set forth in

13 this title, including changes to increase the efficiency

14 of the export licensing process and to fulfill the re15 quirements of section 109, including an accounting

16 of appeals received, and actions taken pursuant

17 thereto, under section 109(g).

18 (6) Violations under section 110 and enforce19 ment activities under section 113.

20 (7) The issuance of regulations under this title.

21 (8) The results, in as much detail as may be in22 cluded consistent with the strategic and political in23 terests of the United States and the need to main24 tain the confidentiality of proprietary information, of

25 the reviews of the security control list, and any revi-
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1 sions to the list resulting from such reviews, re2 quired by section 105.

3 (9) Each of the assessments described in sec4 tion 114(a)(2).

5 (b) INFORMATION ON SECTION 111.—

6 (1) INFORMATION TO BE INCLUDED.—The

7 President shall include in each annual report under

8 subsection (a)—

9 (A) a description of the actions taken to

10 carry out section 111, including the imposition

11 and removal of sanctions under such section;

12 (B) a description of the current efforts of

13 foreign countries and subnational groups to ac14 quire equipment, materials, or technology to de15 velop, produce, or use chemical or biological

16 weapons, together with an assessment of the

17 current and likely future capabilities of such

18 countries and groups to develop, produce, stock19 pile, deliver, transfer, or use such weapons;

20 (C) a description of—

21 (i) the use of chemical or biological

22 weapons by foreign countries in violation of

23 international law,

24 (ii) the use of chemical or biological

25 weapons by subnational groups,
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1 (iii) substantial preparations by for2 eign countries and subnational groups to

3 do so, and

4 (iv) the development, production,

5 stockpiling, or use of chemical or biological

6 weapons by foreign countries and

7 subnational groups; and

8 (D) a description of the extent to which

9 foreign persons or governments have knowingly

10 and materially assisted third countries or

11 subnational groups to acquire equipment, mate12 rial, or technology intended to develop, produce,

13 or use chemical or biological weapons.

14 (2) INFORMATION SHOULD BE UNCLASSI15 FIED.—To the extent practicable, information sub16 mitted under paragraph (1) should be based on un17 classified information.

18 SEC. 116. DEFINITIONS.

19 As used in this title:

20 (1) AUSTRALIA GROUP.—The term ‘‘Australia

21 Group’’ means the multilateral arrangement in

22 which the United States participates that seeks to

23 prevent the proliferation of chemical and biological

24 weapons.
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1 (2) COCOM.—The term ‘‘COCOM’’ means the

2 Coordinating Committee for Multilateral Export

3 Controls, and any successor entity.

4 (3) COMMODITY.—The term ‘‘commodity’’

5 means any article, natural or manmade substance,

6 material, supply, or manufactured product, including

7 inspection and test equipment, and excluding tech8 nical data.

9 (4) CONTROL OR CONTROLLED.—The terms

10 ‘‘control’’ and ‘‘controlled’’ refer to a requirement

11 that an export have a validated license or written re12 export authorization.

13 (5) CONTROL INDEX.—The term ‘‘control

14 index’’ means the United States Commodity Control

15 Index established under section 104(c)(1).

16 (6) CONTROLLABLE.—The term ‘‘controllable’’

17 means capable of being made subject to an effective

18 prohibition or significant restriction on exports. A

19 commodity or technology shall not be considered to

20 be controllable unless it is—

21 (A) manufactured or sold by only a limited

22 number of suppliers who can be positively iden23 tified;

24 (B) consumed or used by only a limited

25 number of end users who can be positively iden-
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1 tified and whose export activities can be con2 trolled; and

3 (C) individually traceable or not easily con4 cealed or disguised.

5 (7) CONTROLLED COUNTRY, CONTROLLED END

6 USE, AND CONTROLLED END USER.—(A) The term

7 ‘‘controlled country’’ means a country identified

8 under section 105(b)(3), and a country on which

9 controls are imposed under section 106.

10 (B) The term ‘‘controlled end use’’ means an

11 end use identified under section 105(b)(3) and an

12 end use for which exports are controlled under sec13 tion 106.

14 (C) The term ‘‘controlled end user’’ means an

15 end user identified under section 105(b)(3) and an

16 end user to which exports are controlled under sec17 tion 106.

18 (8) COOPERATING COUNTRY.—The term ‘‘co19 operating country’’ means a country that, pursuant

20 to an agreement or other arrangement with the

21 United States or an export control regime, controls

22 exports of items that are consistent with the criteria

23 and standards of that export control regime.

24 (9) END USE AND END USER.—(A) The term

25 ‘‘end use’’ means the intended application or use of
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1 an item as represented by an export license appli2 cant.

3 (B) The term ‘‘end user’’ means the person lo4 cated abroad who is the true party in interest in ac5 tually receiving an export for the end use designated

6 for the export.

7 (10) EXPORT.—The term ‘‘export’’—

8 (A) means—

9 (i) an actual shipment, transfer, or

10 transmission of items out of the United

11 States; and

12 (ii) a transfer to any person of items

13 either within the United States or outside

14 of the United States with the knowledge or

15 intent that the items will be shipped out16 side the United States, transferred, or

17 transmitted to an unauthorized end user,

18 end use, or destination;

19 (B) includes the transfer of the registra20 tion of a satellite or operational control of a

21 satellite from a party resident in the United

22 States to a party resident in another country;

23 and

24 (C) includes the term ‘‘reexport’’.
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1 (11) EXPORT CONTROL REGIME, MULTILAT2 ERAL EXPORT CONTROL REGIME, MULTILATERAL

3 REGIME, AND REGIME.—The terms ‘‘export control

4 regime’’, ‘‘multilateral export control regime’’, ‘‘mul5 tilateral regime’’, and ‘‘regime’’ each mean a group

6 of two or more countries which includes the United

7 States and the purpose of which is to curtail, by

8 means of cooperative export controls, access to cer9 tain items by certain countries, by certain end users,

10 or for certain end uses.

11 (12) FOREIGN AVAILABILITY, AVAILABLE IN

12 FACT TO CONTROLLED COUNTRIES.—The terms

13 ‘‘foreign availability’’ and ‘‘available in fact to con14 trolled countries’’ each include production or avail15 ability of any item from any country—

16 (A) in which the item is not restricted for

17 export to any controlled country; or

18 (B) in which such export restrictions are

19 determined by the Secretary to be ineffective.

20 For purposes of subparagraph (B), the mere inclu21 sion of items on a list of items subject to export con22 trols imposed pursuant to a multilateral export con23 trol regime shall not alone constitute credible evi24 dence that the government of a country provides an
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1 effective means of controlling the export of such

2 items to controlled countries.

3 (13) FOREIGN PERSON.—The term ‘‘foreign

4 person’’ means—

5 (A) an individual who is not a United

6 States citizen or an alien admitted for perma7 nent residence to the United States;

8 (B) any corporation, partnership, business

9 association, society, trust, organization, or other

10 nongovernmental entity created or organized

11 under the laws of a foreign country or that has

12 its principal place of business outside the Unit13 ed States; and

14 (C) any governmental entity of a foreign

15 country that is operating as a business enter16 prise.

17 (14) ITEM.—The term ‘‘item’’ means any com18 modity or technology.

19 (15) LICENSE.—The term ‘‘license’’ includes

20 both validated licenses and written reexport author21 izations.

22 (16) MEMBER OF AN EXPORT CONTROL RE23 GIME.—A ‘‘member’’ of an export control regime is

24 a country that participates in that regime.
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1 (17) MISSILE.—The term ‘‘missile’’ means any

2 missile system or component listed in category I of

3 the MTCR Annex, and any other unmanned delivery

4 system or component of similar capability, as well as

5 the specially designed production facilities for these

6 systems.

7 (18) MISSILE TECHNOLOGY CONTROL REGIME;

8 MTCR.—The term ‘‘Missile Technology Control Re9 gime’’ or ‘‘MTCR’’ means the policy statement and

10 guidelines between the United States, the United

11 Kingdom, the Federal Republic of Germany, France,

12 Italy, Canada, and Japan, announced on April 16,

13 1987, to restrict sensitive missile-related transfers

14 based on the MTCR Annex, and any amendments

15 thereto.

16 (19) MTCR ANNEX.—The term ‘‘MTCR

17 Annex’’ means the Equipment and Technology

18 Annex of the MTCR, and any amendments thereto.

19 (20) NUCLEAR EXPLOSIVE DEVICE.—The term

20 ‘‘nuclear explosive device’’ means any device, wheth21 er assembled or disassembled, that is designed to

22 produce an instantaneous release of an amount of

23 nuclear energy from special nuclear material that is

24 greater than the amount of energy that would be re-
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1 leased from the detonation of one pound of trinitro2 toluene (TNT).

3 (21) NUCLEAR SUPPLIERS’ GROUP.—The term

4 ‘‘Nuclear Suppliers’ Group’’ means the multilateral

5 arrangement in which the United States participates

6 whose purpose is to restrict the transfers of items

7 with relevance to the nuclear fuel cycle or nuclear

8 explosive applications.

9 (22) PERSON.—The term ‘‘person’’ includes the

10 singular and the plural and any individual, partner11 ship, corporation, or other form of association, in12 cluding (except when used in the term ‘‘foreign per13 son’’ or ‘‘United States person’’) any government or

14 agency thereof.

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

16 the shipment, transfer, transshipment, or diversion

17 of items from one foreign country to another.

18 (24) SECRETARY.—The term ‘‘Secretary’’

19 means the Secretary of Commerce.

20 (25) SOFTWARE.—The term ‘‘software’’ means

21 one or more computer programs or microprograms

22 fixed in any tangible medium of expression.

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

24 means specific information necessary for the devel-
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1 opment, production, or use of a commodity, and in2 cludes software.

3 (27) UNILATERAL AND UNILATERALLY.—(A)

4 The terms ‘‘unilateral’’ and ‘‘unilaterally’’, with re5 spect to an export control or license treatment, refer

6 to a license requirement or license treatment that is

7 not agreed to by a multilateral regime for any or all

8 of the following elements: the purpose of the license

9 requirement or treatment, the items subject to the

10 license requirement or treatment, the standard of re11 view for applications for such license, the domestic

12 and international procedures for review of such li13 cense applications, and the controlled countries, and

14 end uses or end users, to which the review policy ap15 plies.

16 (B) An export control or license treatment shall

17 be considered to be unilateral or unilaterally main18 tained by the United States if it is a restriction, con19 dition, or interpretation imposed by the Secretary

20 upon commodities or technology, or upon a license

21 application for the export of commodities or tech22 nology, that is not imposed or implemented in simi23 lar circumstances by other members of an export

24 control regime, or that is not otherwise specifically

25 permitted by this title.
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1 (28) UNITED STATES.—The term ‘‘United

2 States’’ means the States of the United States, the

3 District of Columbia, and any commonwealth, terri4 tory, dependency, or possession of the United States,

5 and includes the Outer Continental Shelf, as defined

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

7 Act (43 U.S.C. 1331(a)).

8 (29) UNITED STATES PERSON.—The term

9 ‘‘United States person’’ means any United States

10 resident or national (other than an individual resi11 dent outside the United States and employed by

12 other than a United States person), any domestic

13 concern (including any permanent domestic estab14 lishment of any foreign concern) and any foreign

15 subsidiary or affiliate (including any permanent for16 eign establishment) of any domestic concern which is

17 controlled in fact by such domestic concern, as de18 termined under regulations of the President.

19 (30) WEAPONS OF MASS DESTRUCTION.—The

20 term ‘‘weapons of mass destruction’’ means any

21 chemical, biological, or nuclear weapon, including a

22 nuclear explosive device.

23 SEC. 117. EFFECTS ON OTHER ACTS.

24 (a) COMMODITY JURISDICTION.—
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1 (1) IN GENERAL.—Notwithstanding any other

2 provision of law—

3 (A) an item agreed for control on the

4 International Munitions List of COCOM shall

5 be subject to control under the Arms Export

6 Control Act and not under this title;

7 (B) except as provided in paragraphs (2),

8 (3), and (5), an item which is on the Inter9 national Industrial List of COCOM shall be

10 subject to control under this title and not under

11 the Arms Export Control Act; and

12 (C) no item may be included on both the

13 control index and the United States Munitions

14 List after publication of the lists required under

15 paragraph (4) and resolution of any dispute

16 with respect to such lists under paragraph (5).

17 (2) EXCEPTIONS.—(A) An item described in

18 subparagraph (B) that is not on the International

19 Munitions List may be subject to control under the

20 Arms Export Control Act—

21 (i)(I) for a period of 9 months after the

22 date on which the United States proposes to

23 COCOM that the item be added to the Inter24 national Munitions List; and
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1 (II) for an additional 9-month period, but

2 only if negotiations in COCOM to add the item

3 to the International Munitions List are continu4 ing; or

5 (ii) if the Secretary of State, in consulta6 tion with the Secretary, so determines, except

7 that if the Secretary disagrees with the Sec8 retary of State with respect to such item, the

9 item may be subject to control under the Arms

10 Export Control Act only if the disagreement is

11 resolved by the Secretaries or by the President

12 pursuant to the procedures set forth in sub13 paragraphs (B) and (C) of paragraph (5).

14 (B) An item referred to in subparagraph (A) is

15 an item that—

16 (i) is specifically designed, developed, con17 figured, adapted, or modified for military or in18 telligence application;

19 (ii) does not have significant civil applica20 tions; and

21 (iii) is not a component the performance

22 capacity and function of which are essentially

23 equivalent to those used for civil applications.

24 (3) PRESIDENTIAL DETERMINATIONS.—An item

25 that is not on the International Munitions List may
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1 be subject to control under the Arms Export Control

2 Act if the President—

3 (A) determines that extraordinary cir4 cumstances exist affecting the national security

5 of the United States, which require that the

6 item be controlled under the Arms Export Con7 trol Act;

8 (B) proposes to COCOM that the item be

9 added to the International Munitions List; and

10 (C) not later than 10 days after making

11 the determination under subparagraph (A),

12 submits a report to the Speaker of the House

13 of Representatives and the President pro tem14 pore of the Senate, describing in detail the rea15 sons for the determination, in appropriate clas16 sified form, as necessary.

17 (4) PUBLICATION OF LISTS.—

18 (A)(i) Not later than 3 months after the

19 date of the enactment of this Act, the Secretary

20 shall publish the control index and the Sec21 retary of State shall publish the United States

22 Munitions List, with all revisions that have

23 been made in accordance with this subsection.

24 (ii) Not later than 3 months after the date

25 of the enactment of this Act, the Secretary of
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1 State shall publish in a separate list those items

2 remaining subject to control under the Arms

3 Export Control Act under paragraph (2).

4 (iii) The publications required by clauses

5 (i) and (ii) shall be made in the Federal Reg6 ister.

7 (B) If either the Secretary or the Secretary

8 of State fails to publish a revised list in accord9 ance with subparagraph (A), there shall be ex10 cluded from the list of the Secretary that did

11 not so publish a revised list any item included

12 on the list of the Secretary that did so publish

13 a revised list.

14 (5) COMMODITY JURISDICTION DISPUTE RESO15 LUTION.—

16 (A) Whenever—

17 (i) the Secretary or the Secretary of

18 State receives a request to determine

19 whether an item is subject to control under

20 this title or the Arms Export Control Act,

21 (ii) either Secretary finds that an item

22 is included on both the control index and

23 the United States Munitions List,

24 (iii) an item appearing on the list of

25 one Secretary under paragraph (4)(A)(i) is
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1 considered by the other Secretary to be

2 under the jurisdiction of that other Sec3 retary, or

4 (iv) the Secretary disagrees with the

5 inclusion of an item on the list published

6 under paragraph (4)(A)(ii),

7 the Secretary or the Secretary of State (as the

8 case may be) shall refer the matter and any rel9 evant information to the other Secretary.

10 (B) The 2 Secretaries shall have a period

11 of 15 days following the referral of a matter

12 under subparagraph (A) to resolve any dif13 ferences with respect to the matter involved.

14 (C) If the 2 Secretaries fail to resolve such

15 differences within that 15-day period, either

16 Secretary may refer the matter to the Presi17 dent, who, not later than 15 days after receiv18 ing the referral, shall notify the 2 Secretaries of

19 his determination on the matter in dispute.

20 (D) In the event that either the Secretary

21 or the Secretary of State does not respond to

22 a referral under subparagraph (A) by the other

23 Secretary, the Secretary that did not so respond

24 shall be deemed to concur with the other Sec25 retary on the matter involved.
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1 (6) REFERENCES.—For purposes of this sub2 section, any reference to the ‘‘International Muni3 tions List’’ or the ‘‘International Industrial List’’ in4 cludes a reference to any successor list to the Inter5 national Munitions List or the International Indus6 trial List, as the case may be.

7 (b) EXPORT CONTROLS ON TELECOMMUNI8 CATIONS.—

9 (1) NO LICENSE REQUIRED FOR CIVIL END

10 USES.—The Secretary shall not require a validated

11 license for export or authorization for reexport of

12 telecommunications equipment to civil end users for

13 civil end uses in any of the republics of the former

14 Soviet Union, the People’s Republic of China, Po15 land, the Czech Republic, Slovakia, Bulgaria, Roma16 nia, Albania, Estonia, Lithuania, Latvia, Cambodia,

17 Laos, Mongolia, or Vietnam.

18 (2) DEFINITIONS.—For purposes of this sub19 section, the term ‘‘telecommunications equipment’’

20 includes—

21 (A) those items described in the Advisory

22 Notes to Category 5 of the Commerce Control

23 List set forth in part 799 of title 15, Code of

24 Federal Regulations, as of April 4, 1994, that

25 indicate likelihood of approval—
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1 (i) for country groups QWY and the

2 People’s Republic of China,

3 (ii) only for the People’s Republic of

4 China, or

5 (iii) to specified destinations in coun6 try group Y; and

7 (B) those entries and subentries listed in

8 export control classification numbers 5AO2A

9 (except subentries h and i), 5A03A, 5A04A,

10 5A05A, 5A06A, 5B01A, 5B02A, 5C01A,

11 5D01A, 5D02A, and 5D03A of the Commerce

12 Control List set forth in part 799 of title 15,

13 Code of Federal Regulations, as of April 4,

14 1994, but not including software designed or

15 modified for the development, production, or

16 use of items controlled under export control

17 classification number 5A01A of the Commerce

18 Control List.

19 (c) ASSESSMENT OF ENCRYPTION SOFTWARE MAR20 KET.—

21 (1) PRESIDENTIAL REPORT REQUIRED.—Not

22 later than 150 days after the date of enactment of

23 this Act, the President shall submit a report to the

24 Committee on Banking, Housing, and Urban Affairs
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1 of the Senate and the Committee on International

2 Relations of the House of Representatives.

3 (2) CONTENTS OF REPORT.—The report re4 quired by paragraph (1) shall—

5 (A) assess the current and future inter6 national market for computer software with

7 encryption;

8 (B) assess the impact of United States

9 encryption export controls on the international

10 competitiveness of the United States computer

11 software industry and their economic con12 sequences, including the impact on exports and

13 jobs in the United States computer software in14 dustry; and

15 (C) review the types, quality and market

16 penetration of foreign produced encryption soft17 ware products and any controls that influence

18 the international marketability of encryption

19 software products.

20 (3) CONSULTATION.—In preparing the report

21 required under paragraph (1), the President shall

22 consult with representatives of the United States

23 computer software industry. Confidential business

24 information provided by United States industry in

25 the course of preparing the report shall not be dis-
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1 closed, except with the permission of the submitter

2 or when aggregated so that the source of the infor3 mation cannot be identified.

4 (d) IN GENERAL.—To the extent provided in this

5 title, this title shall be construed to modify, repeal, super6 sede, and otherwise affect the provisions of any other laws

7 authorizing control over exports of any commodities or

8 technology.

9 (e) COORDINATION OF CONTROLS.—The authority

10 granted under this title and under section 38 of the Arms

11 Export Control Act (22 U.S.C. 2778) shall be exercised

12 in such a manner as to share information regarding the

13 trustworthiness of parties.

14 (f) CIVIL AIRCRAFT EQUIPMENT.—Notwithstanding

15 any other provision of law, any civil aircraft product, or

16 any technology used in a civil aircraft product, that is

17 standard equipment certified or scheduled to be certified

18 by the Federal Aviation Administration and is an integral

19 part of such aircraft, shall be subject to export controls

20 exclusively under this title.

21 (g) NONPROLIFERATION CONTROLS.—The provisions

22 of section 109 shall supersede the procedures published

23 pursuant to section 309(c) of the Nuclear Non-Prolifera24 tion Act of 1978 (42 U.S.C. 2139a(c)) to the extent such
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1 procedures are inconsistent with the provisions of section

2 109.

3 (h) AMENDMENTS TO THE INTERNATIONAL EMER4 GENCY ECONOMIC POWERS ACT.—

5 (1) PRESIDENTIAL AUTHORIZATION.—Section

6 203(a) of the International Emergency Economic

7 Powers Act (50 U.S.C. 1702(a)) is amended—

8 (A) by redesignating paragraphs (2) and

9 (3) as paragraphs (3) and (4), respectively, and

10 (B) by inserting after paragraph (1) the

11 following new paragraph:

12 ‘‘(2) The President may prohibit or curtail the expor13 tation of any items on the United States Commodity Con14 trol Index that are subject to the jurisdiction of the United

15 States under this title only to the extent provided in, and

16 subject to the criteria of, sections 105, 106, and 114 of

17 the Export Act of 1994, unless such prohibition or curtail18 ment is part of an embargo (as described in section

19 106(f)(1) of the Export Act of 1994) against the country

20 concerned. The preceding sentence shall continue to apply

21 notwithstanding the expiration of the Export Act of

22 1994.’’.

23 (2) CONFIDENTIALITY OF INFORMATION.—The

24 International Emergency Economic Powers Act is

25 amended—
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1 (A) by redesignating section 208 as section

2 209; and

3 (B) by inserting after section 207 the fol4 lowing:

5 ‘‘SEC. 208. CONFIDENTIALITY OF INFORMATION.

6 ‘‘(a) EXEMPTIONS FROM DISCLOSURE.—Information

7 obtained under this title before or after the enactment of

8 this section may be withheld only to the extent permitted

9 by statute, except that information submitted, obtained,

10 or considered in connection with an application for an ex11 port license or other export authorization under this title,

12 including the export license or other export authorization

13 itself, classification requests, information or evidence ob14 tained in the course of any investigation, and information

15 obtained or furnished under this title in connection with

16 international agreements, treaties, or obligations shall be

17 withheld from public disclosure unless the release of such

18 information is determined by the Secretary to be in the

19 national interest.

20 ‘‘(b) INFORMATION TO CONGRESS AND GAO.—

21 ‘‘(1) IN GENERAL.—Nothing in this title shall

22 be construed as authorizing the withholding of infor23 mation from the Congress or from the General Ac24 counting Office.

25 ‘‘(2) AVAILABILITY TO THE CONGRESS.—
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1 ‘‘(A) IN GENERAL.—All information ob2 tained at any time under this title regarding

3 the control of exports, including any report or

4 license application required under this title,

5 shall be made available to any committee or

6 subcommittee of Congress of appropriate juris7 diction upon the request of the chairman or

8 ranking minority member of such committee or

9 subcommittee.

10 ‘‘(B) PROHIBITION ON FURTHER DISCLO11 SURE.—No committee, subcommittee, or Mem12 ber of Congress shall disclose any information

13 obtained under this title or previous Acts re14 garding the control of exports which is submit15 ted on a confidential basis to the Congress

16 under subparagraph (A) unless the full commit17 tee to which the information is made available

18 determines that the withholding of the informa19 tion is contrary to the national interest.

20 ‘‘(3) AVAILABILITY TO THE GAO.—

21 ‘‘(A) IN GENERAL.—Notwithstanding para22 graph (1), information referred to in paragraph

23 (2) shall, consistent with the protection of intel24 ligence, counterintelligence, and law enforce25 ment sources, methods, and activities, as deter-
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1 mined by the agency that originally obtained

2 the information, and consistent with the provi3 sions of section 716 of title 31, United States

4 Code, be made available only by the agency,

5 upon request, to the Comptroller General of the

6 United States or to any officer or employee of

7 the General Accounting Office authorized by

8 the Comptroller General to have access to such

9 information.

10 ‘‘(B) PROHIBITION ON FURTHER DISCLO11 SURES.—No officer or employee of the General

12 Accounting Office shall disclose, except to the

13 Congress in accordance with this subsection,

14 any such information which is submitted on a

15 confidential basis and from which any individ16 ual can be identified.

17 ‘‘(c) PENALTIES FOR DISCLOSURE OF CONFIDEN18 TIAL INFORMATION.—Any officer or employee of the

19 United States, or any department or agency thereof, who

20 publishes, divulges, discloses, or makes known in any man21 ner or to any extent not authorized by law any information

22 that—

23 ‘‘(1) he or she obtains in the course of his or

24 her employment or official duties or by reason of any

25 examination or investigation made by, or report or
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1 record made to or filed with, such department or

2 agency, or officer or employee thereof, and

3 ‘‘(2) is exempt from disclosure under this sec4 tion,

5 shall be fined not more than $10,000, or imprisoned not

6 more than 1 year, or both, shall be removed from office

7 or employment, and shall be subject to a civil penalty of

8 not more than $1,000.’’.

9 (i) REGULATION OF EXPORT OF CERTAIN COMMER10 CIAL COMMUNICATIONS SATELLITES AND ASSOCIATED

11 EQUIPMENT.—

12 (1) REGULATION SOLELY UNDER THIS

13 TITLE.—Notwithstanding any other provision of law,

14 the export of commercial communications satellites,

15 including any integral components of such satellites,

16 which are designed for civil applications, including

17 items necessary to achieve the ultimate orbit location

18 of such satellites, and associated ground and test

19 equipment, when exported as part of a satellite sys20 tem for purposes of launch, shall be regulated under

21 this title. The Secretary shall consult with the Sec22 retary of Defense and the Secretary of State to de23 termine the satellites and components to which this

24 paragraph applies. The Secretary, in consultation

25 with the Secretary of State and the Secretary of De-
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1 fense, shall prohibit the unauthorized transfer of

2 missile equipment, data, or technology that are com3 ponents of any such satellite which is authorized for

4 export.

5 (2) AMENDMENT TO ARMS EXPORT CONTROL

6 ACT.—Section 38(a) of the Arms Export Control Act

7 (22 U.S.C. 2778(a)) is amended—

8 (A) in paragraph (3), by striking ‘‘In exer9 cising the authorities’’ and inserting ‘‘Except as

10 provided in paragraph (4), in exercising the au11 thorities’’; and

12 (B) by adding at the end the following new

13 paragraph:

14 ‘‘(4) The export of commercial communications sat15 ellites, including any integral components of such sat16 ellites, which are designed for civil applications, including

17 items necessary to achieve the ultimate orbit location of

18 such satellites, and associated ground and test equipment,

19 when exported as part of a satellite system for purposes

20 of launch, may be regulated only by the Secretary of Com21 merce under the Export Act of 1994, pursuant to section

22 117(i)(1) of that Act.’’.

23 (3) APPLICABILITY.—The amendments made

24 by this subsection shall apply only with respect to
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1 the export of satellites on or after the date of the

2 enactment of this Act.

3 SEC. 118. SECONDARY ARAB BOYCOTT.

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

5 (1) certain countries maintain an economic boy6 cott of Israel, including a secondary boycott of com7 panies that refuse to cooperate with the economic

8 boycott of Israel;

9 (2) the secondary Arab boycott has caused eco10 nomic damage to the countries that maintain the

11 boycott as well as to Israel;

12 (3) the secondary Arab boycott causes great

13 difficulties for United States firms that trade with

14 Israel, depriving them of trade opportunities and

15 violating internationally accepted principles of free

16 trade;

17 (4) the United States has a longstanding policy

18 opposing the Arab League boycott of Israel and

19 United States law prohibits American firms from

20 providing information to Arab countries to dem21 onstrate compliance with the boycott;

22 (5) American companies on the list maintained

23 by the Arab League of companies prohibited from

24 doing business in Arab League countries can be de25 nied contracts by the Kuwaiti Government for the
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1 reconstruction of Kuwait because they conduct busi2 ness with Israel;

3 (6) under the leadership of the executive

4 branch, the United States has sent a clear, consist5 ent, and unambiguous message that the Arab

6 League boycott of companies that do business with

7 Israel is an obstacle to peace and should be termi8 nated;

9 (7) the United States Trade Representative, in

10 August 1993, commissioned the International Trade

11 Commission to undertake a study of the boycott’s

12 impact on United States businesses which will pro13 vide, for the first time, a carefully researched esti14 mate of the impact of the boycott on the United

15 States;

16 (8) the executive branch has conducted an ac17 tive diplomatic campaign to convince Arab League

18 countries that the time to end the secondary Arab

19 boycott and the economic discrimination against

20 United States businesses is now;

21 (9) under United States leadership, the G–7

22 countries have unconditionally called for an end to

23 the Arab boycott;

24 (10) the President, the Vice President, the Sec25 retary of State, the Secretary of Commerce, and
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1 other senior executive branch officials have assured

2 the Congress that they will speak forcefully and can3 didly, in every forum which touches upon the search

4 for peace in the Middle East, about the need to end

5 the secondary Arab boycott;

6 (11) the Congress wishes to support the efforts

7 of the executive branch and to help see the promises

8 made to date translated into tangible results;

9 (12) the quarterly reports from the Office of

10 Anti-Boycott Compliance of the Department of Com11 merce show no loosening in enforcement by Arab

12 League countries of the secondary Arab boycott; and

13 (13) the recent statements made by Arab lead14 ers indicating that the secondary Arab boycott is no

15 longer being enforced must be translated into action,

16 as measured by quarterly reports from the Office of

17 Anti-Boycott Compliance of the Department of Com18 merce.

19 (b) SENSE OF CONGRESS.—

20 (1) ENDING SECONDARY BOYCOTT.—It is the

21 sense of the Congress that the countries of the Arab

22 League should end the secondary Arab boycott.

23 (2) ACTIONS TO END SECONDARY BOYCOTT.—

24 The United States will consider the secondary Arab

25 boycott to have ended when—
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1 (A) the Arab League issues a public pro2 nouncement that the Arab League has ended

3 the secondary Arab boycott;

4 (B) all activities carried out by the Central

5 Office for the Boycott of Israel in support of

6 the secondary Arab boycott have been termi7 nated;

8 (C) the Arab League and the individual

9 countries that are members of the Arab League

10 have terminated the practice of barring United

11 States persons and foreign companies that do

12 not comply with the secondary Arab boycott

13 from doing business with countries that are

14 members of the Arab League, and have de15 clared null and void any existing list of such

16 barred persons and companies; and

17 (D) the Arab League, and the individual

18 countries that are the members of the Arab

19 League, have ceased requesting United States

20 persons from taking actions prohibited under

21 section 108(a).

22 (c) DEFINITION.—For purposes of this section, the

23 term ‘‘secondary Arab boycott’’ means the refusal to do

24 business with persons who do not comply with requests
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1 to take any action prohibited under section 108(a) with

2 respect to Israel.

3 SEC. 119. CONFORMING AMENDMENTS TO OTHER LAWS.

4 (a) ARMS EXPORT CONTROL ACT.—

5 (1) Section 38 of the Arms Export Control Act

6 (22 U.S.C. 2778) is amended—

7 (A) in subsection (e)—

8 (i) in the first sentence by striking

9 ‘‘subsections (c)’’ and all that follows

10 through ‘‘12 of such Act’’ and inserting

11 ‘‘subsections (b), (c), (d) and (e) of section

12 110 of the Export Act of 1994, by sub13 sections (a) and (b) of section 113 of such

14 Act, and by section 114(g) of such Act’’;

15 and

16 (ii) in the third sentence by striking

17 ‘‘11(c) of the Export Administration Act of

18 1979’’ and inserting ‘‘110(c) of the Export

19 Act of 1995’’; and

20 (B) in subsection (g)(1)(A) by striking

21 clause (ii) and inserting the following:

22 ‘‘(ii) section 110 of the Export Act of

23 1995,’’.
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1 (2) Section 39A(c) of the Arms Export Control

2 Act, as added by the Foreign Relations Authoriza3 tion Act, Fiscal Years 1994 and 1995, is amended—

4 (A) by striking ‘‘(c),’’ and all that follows

5 through ‘‘12(a)’’ and inserting ‘‘(c), (d), and (e)

6 of section 110, section 112(c), and subsections

7 (a) and (b) of section 113, of the Export Act

8 of 1995’’; and

9 (B) by striking ‘‘11(c)’’ and inserting

10 ‘‘110(c)’’.

11 (3) Section 40(k) of the Arms Export Control

12 Act (22 U.S.C. 2780(k)) is amended—

13 (A) by striking ‘‘11(c), 11(e), 11(g), and

14 12(a) of the Export Administration Act of

15 1979’’ and inserting ‘‘110(b), 110(c), and

16 110(e) of the Export Act of 1995’’; and

17 (B) by striking ‘‘11(c)’’ and inserting

18 ‘‘110(c)’’.

19 (4) Sections 72 and 73 of the Arms Export

20 Control Act (22 U.S.C. 2797a and 2797b) are here21 by repealed.

22 (5) Section 73A of the Arms Export Control

23 Act, as added by the Foreign Relations Authoriza24 tion Act, Fiscal Years 1995 and 1995, is amended
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1 by striking ‘‘a MTCR adherent’’ and inserting ‘‘an

2 MTCR adherent’’.

3 (6) Section 74 of the Arms Export Control Act

4 (22 U.S.C. 2797c) is amended—

5 (A) by striking paragraphs (6), (7), (8),

6 and (9);

7 (B) in paragraph (4) by adding ‘‘and’’

8 after the semicolon; and

9 (C) in paragraph (5) by striking the semi10 colon and inserting a period.

11 (b) CHEMICAL AND BIOLOGICAL WEAPONS.—The

12 Chemical and Biological Weapons Control and Warfare

13 Elimination Act of 1991 (title III of Public Law 102–182;

14 22 U.S.C. 5601 and following) is hereby repealed.

15 (c) OTHER PROVISIONS OF LAW.—

16 (1) Section 5(b)(4) of the Trading with the

17 Enemy Act (12 U.S.C. 95a(4); 50 U.S.C. App.

18 5(b)(4)) is amended by striking ‘‘5 of the Export

19 Administration Act of 1979, or under section 6’’ and

20 inserting ‘‘105 of the Export Act of 1995, or under

21 section 106’’.

22 (2) Section 16(a) of the Trading with the

23 Enemy Act (50 U.S.C. App. 16(a)) is amended by

24 striking ‘‘participants’’ and inserting ‘‘participates’’.
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1 (3) Section 502B(a)(2) of the Foreign Assist2 ance Act of 1961 (22 U.S.C. 2304(a)(2)) is amend3 ed in the second sentence—

4 (A) by striking ‘‘Export Administration

5 Act of 1979’’ the first place it appears and in6 serting ‘‘Export Act of 1995’’; and

7 (B) by striking ‘‘Administration Act of

8 1979)’’ and inserting ‘‘Act of 1995)’’.

9 (4)(A) Section 140(a)(2) of the Foreign Rela10 tions Authorization Act, Fiscal Years 1988 and

11 1989 (22 U.S.C. 2656f(a)(2)) is amended by strik12 ing ‘‘6(j) of the Export Administration Act of 1979’’

13 and inserting ‘‘106(i) of the Export Act of 1995’’.

14 (B) For purposes of the report required by

15 March 31, 1995, under section 140(a) of the For16 eign Relations Authorization Act, Fiscal Years 1988

17 and 1989, the reference in paragraph (2) of such

18 section to ‘‘section 106(i) of the Export Act of

19 1995’’ shall be deemed to refer to ‘‘section 6(j) of

20 the Export Administration Act of 1979 or section

21 106(i) of the Export Act of 1995’’.

22 (5) Section 40(e)(1) of the State Department

23 Basic Authorities Act of 1956 (22 U.S.C.

24 2712(e)(1)) is amended by striking ‘‘6(j)(1) of the
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1 Export Administration Act of 1979’’ and inserting

2 ‘‘106(i)(1) of the Export Act of 1995’’.

3 (6) Section 110 of the International Security

4 and Development Cooperation Act of 1980 (22

5 U.S.C. 2778a) is amended by striking ‘‘Administra6 tion Act of 1979’’ and inserting ‘‘Act of 1995’’.

7 (7) Section 205(d)(4) of the State Department

8 Basic Authorities Act of 1956 (22 U.S.C.

9 4305(d)(4)) is amended by striking ‘‘6(j) of the Ex10 port Administration Act of 1979’’ and inserting

11 ‘‘106(i) of the Export Act of 1995’’.

12 (8) Section 203(b)(3) of the International

13 Emergency Economic Powers Act (50 U.S.C.

14 1702(b)(3)) is amended by striking ‘‘5 of the Export

15 Administration Act of 1979, or under section 6’’ and

16 inserting ‘‘105 of the Export Act of 1995, or under

17 section 106’’.

18 (9) Section 491(f) of the Forest Resources Con19 servation and Shortage Relief Act of 1990 (16

20 U.S.C. 620c(f)) is amended by striking ‘‘supersede

21 section 7(i) of the Export Administration Act of

22 1979 (50 U.S.C. App. 2406(i))’’ and inserting ‘‘af23 fect section 107(i) of the Export Act of 1995’’.

24 SEC. 120. EXPIRATION DATE.

25 This title expires on June 30, 1999.
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1 SEC. 121. SAVINGS PROVISIONS.

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

3 orders, determinations, licenses, or other forms of admin4 istrative action which have been made, issued, conducted,

5 or allowed to become effective under—

6 (1) the Export Control Act of 1949, the Export

7 Administration Act of 1969, or the Export Adminis8 tration Act of 1979, or

9 (2) those provisions of the Arms Export Control

10 Act or the Chemical and Biological Weapons Control

11 and Warfare Elimination Act of 1991 which are re12 pealed and amended by section 119,

13 and are in effect at the time this title takes effect, shall

14 continue in effect according to their terms until modified,

15 superseded, set aside, or revoked under this title.

16 (b) ADMINISTRATIVE AND JUDICIAL PROCEED17 INGS.—

18 (1) EXPORT ADMINISTRATION ACT.—This title

19 shall not affect any administrative or judicial pro20 ceedings commenced or any application for a license

21 made, under the Export Administration Act of 1979,

22 which is pending at the time this title takes effect.

23 Any such proceedings, and any action on such appli24 cation, shall continue under the Export Administra25 tion Act of 1979 as if that Act had not expired.
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1 (2) OTHER PROVISIONS OF LAW.—This title

2 shall not affect any administrative or judicial pro3 ceedings commenced or any application for a license

4 made, under those provisions of the Arms Export

5 Control Act or the Chemical and Biological Weapons

6 Control and Warfare Elimination Act of 1991 which

7 are repealed and amended by section 119, if such

8 proceedings or application is pending at the time

9 this title takes effect. Any such proceedings, and any

10 action on such application, shall continue under

11 those provisions as if those provisions had not been

12 amended or repealed by section 119.

13 (c) TREATMENT OF CERTAIN DETERMINATIONS.—

14 Any determination with respect to the government of a

15 foreign country under section 6(j) of the Export Adminis16 tration Act of 1979, that is in effect at the time this title

17 takes effect, shall, for purposes of this title or any other

18 provision of law, be deemed to be made under section

19 106(i) of this Act until superseded by a determination

20 under such section 106(i).

21 TITLE II—NUCLEAR PROLIF22 ERATION PREVENTION ACT

23 SEC. 201. SHORT TITLE.

24 This title may be cited as the ‘‘Nuclear Proliferation

25 Prevention Act of 1995’’.
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1 PART A—REPORTING ON NUCLEAR EXPORTS

2 SEC. 211. REPORTS TO CONGRESS.

3 Section 601(a) of the Nuclear Non-Proliferation Act

4 of 1978 (22 U.S.C. 3281(a)) is amended—

5 (1) in paragraph (4), by striking ‘‘and’’ after

6 the semicolon;

7 (2) in paragraph (5), by striking the period and

8 inserting a semicolon; and

9 (3) by adding after paragraph (5) the following:

10 ‘‘(6) a description of the implementation of nu11 clear and nuclear-related dual-use export controls in

12 the preceding calendar year, including a summary by

13 type of commodity and destination of—

14 ‘‘(A) all transactions for which—

15 ‘‘(i) an export license was issued for

16 any good controlled under section 309(c)

17 of this Act;

18 ‘‘(ii) an export license was issued

19 under section 109 b. of the 1954 Act;

20 ‘‘(iii) approvals were issued under the

21 Export Act of 1995, or section 109 b.(3)

22 of the 1954 Act, for the retransfer of any

23 item, technical data, component, or sub24 stance; or

25 ‘‘(iv) authorizations were made as re26 quired by section 57 b.(2) of the 1954 Act
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1 to engage, directly or indirectly, in the pro2 duction of special nuclear material;

3 ‘‘(B) each instance in which—

4 ‘‘(i) a sanction has been imposed

5 under section 221(a), 224(h), or 226(a) of

6 the Nuclear Proliferation Prevention Act of

7 1995;

8 ‘‘(ii) sales or leases have been denied

9 under section 3(f) of the Arms Export

10 Control Act or transactions prohibited by

11 reason of acts relating to proliferation of

12 nuclear explosive devices as described in

13 section 40(d) of that Act;

14 ‘‘(iii) a sanction has not been imposed

15 by reason of section 221(c)(2) of the Nu16 clear Proliferation Prevention Act of 1995

17 or the imposition of a sanction has been

18 delayed under section 226(d) of that Act;

19 or

20 ‘‘(iv) a waiver of a sanction has been

21 made under—

22 ‘‘(I) section 221(f), section 224,

23 or subsection (e) or (f)(2) of section

24 226, of the Nuclear Proliferation Pre25 vention Act of 1995,
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1 ‘‘(II) section 620E(d) of the For2 eign Assistance Act of 1961,

3 ‘‘(III) section 40(g) of the Arms

4 Export Control Act with respect to

5 the last sentence of section 40(d) of

6 that Act, or

7 ‘‘(IV) section 614 of the Foreign

8 Assistance Act of 1961 with respect to

9 section 620E of that Act or section

10 3(f), or the last sentence of section

11 40(d), of the Arms Export Control

12 Act; and

13 ‘‘(7) the progress of those independent states of

14 the former Soviet Union that are non-nuclear-weap15 on states and of the Baltic states towards achieving

16 the objective of applying full scope safeguards to all

17 their peaceful nuclear activities.

18 Portions of the information required by paragraphs (6)

19 and (7) may be submitted in classified form, as necessary.

20 Any such information that may not be published or dis21 closed under section 114(g)(1) of the Export Act of 1995

22 shall be submitted as confidential.’’.

23 SEC. 212. EFFECTIVE DATE.

24 The amendments made by this part shall take effect

25 60 days after the date of the enactment of this Act.
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1 PART B—SANCTIONS FOR NUCLEAR

2 PROLIFERATION

3 SEC. 221. IMPOSITION OF SANCTIONS ON PERSONS ENGAG4 ING IN EXPORT ACTIVITIES THAT CONTRIB5 UTE TO PROLIFERATION.

6 (a) DETERMINATION BY THE PRESIDENT.—

7 (1) IN GENERAL.—Except as provided in sub8 section (b)(2), the President shall impose the sanc9 tions described in subsection (c) if the President de10 termines in writing that, on or after the effective

11 date of this part, a foreign person or a United

12 States person has materially and with requisite

13 knowledge contributed, through the export from the

14 United States or any other country of any goods or

15 technology (as defined in section 231(2)), to the ef16 forts by any individual, group, or non-nuclear-weap17 on state to acquire unsafeguarded special nuclear

18 material or to use, develop, produce, stockpile, or

19 otherwise acquire any nuclear explosive device.

20 (2) PERSONS AGAINST WHICH THE SANCTIONS

21 ARE TO BE IMPOSED.—The sanctions shall be im22 posed pursuant to paragraph (1) on—

23 (A) the foreign person or United States

24 person with respect to which the President

25 makes the determination described in that para26 graph;
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1 (B) any successor entity to that foreign

2 person or United States person;

3 (C) any foreign person or United States

4 person that is a parent or subsidiary of that

5 person if that parent or subsidiary materially

6 and with requisite knowledge assisted in the ac7 tivities which were the basis of that determina8 tion; and

9 (D) any foreign person or United States

10 person that is an affiliate of that person if that

11 affiliate materially and with requisite knowledge

12 assisted in the activities which were the basis of

13 that determination and if that affiliate is con14 trolled in fact by that person.

15 (3) OTHER SANCTIONS AVAILABLE.—The sanc16 tions which are required to be imposed for activities

17 described in this subsection is in addition to any

18 other sanction which may be imposed for the same

19 activities under any other provision of law.

20 (4) DEFINITION.—For purposes of this sub21 section, the term ‘‘requisite knowledge’’ means situa22 tions in which a person ‘‘knows’’, as ‘‘knowing’’ is

23 defined in section 104 of the Foreign Corrupt Prac24 tices Act of 1977 (15 U.S.C. 78dd–2).
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1 (b) CONSULTATION WITH AND ACTIONS BY FOREIGN

2 GOVERNMENT OF JURISDICTION.—

3 (1) CONSULTATIONS.—If the President makes a

4 determination described in subsection (a)(1) with re5 spect to a foreign person, the Congress urges the

6 President to initiate consultations immediately with

7 the government with primary jurisdiction over that

8 foreign person with respect to the imposition of the

9 sanctions pursuant to this section.

10 (2) ACTIONS BY GOVERNMENT OF JURISDIC11 TION.—In order to pursue such consultations with

12 that government, the President may delay imposition

13 of the sanctions pursuant to this section for up to

14 90 days. Following these consultations, the Presi15 dent shall impose the sanctions unless the President

16 determines and certifies in writing to the Congress

17 that that government has taken specific and effective

18 actions, including appropriate penalties, to terminate

19 the involvement of the foreign person in the activi20 ties described in subsection (a)(1). The President

21 may delay the imposition of the sanctions for up to

22 an additional 90 days if the President determines

23 and certifies in writing to the Congress that that

24 government is in the process of taking the actions

25 described in the preceding sentence.
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1 (3) REPORT TO CONGRESS.—Not later than 90

2 days after making a determination under subsection

3 (a)(1), the President shall submit to the Committee

4 on Foreign Relations and the Committee on Govern5 mental Affairs of the Senate and the Committee on

6 International Relations of the House of Representa7 tives a report on the status of consultations with the

8 appropriate government under this subsection, and

9 the basis for any determination under paragraph (2)

10 of this subsection that such government has taken

11 specific corrective actions.

12 (c) SANCTIONS.—

13 (1) DESCRIPTION OF SANCTIONS.—The sanc14 tions to be imposed pursuant to subsection (a)(1)

15 are, except as provided in paragraph (2) of this sub16 section, the following:

17 (A) The United States Government shall

18 not procure, or enter into any contract for the

19 procurement of, any goods or services from any

20 person described in subsection (a)(2).

21 (B) The importation into the United

22 States of products produced by any person de23 scribed in subsection (a)(2) shall be prohibited.
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1 (2) EXCEPTIONS.—The President shall not be

2 required to apply or maintain the sanctions under

3 this section—

4 (A) in the case of procurement of defense

5 articles or defense services—

6 (i) under existing contracts or sub7 contracts, including the exercise of options

8 for production quantities to satisfy require9 ments essential to the national security of

10 the United States;

11 (ii) if the President determines in

12 writing that the person or other entity to

13 which the sanctions would otherwise be ap14 plied is a sole source supplier of the de15 fense articles or services, that the defense

16 articles or services are essential, and that

17 alternative sources are not readily or rea18 sonably available; or

19 (iii) if the President determines in

20 writing that such articles or services are

21 essential to the national security under de22 fense coproduction agreements;

23 (B) to products or services provided under

24 contracts entered into before the date on which
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1 the President publishes his intention to impose

2 the sanctions;

3 (C) to—

4 (i) spare parts which are essential to

5 United States products or production;

6 (ii) component parts, but not finished

7 products, essential to United States prod8 ucts or production; or

9 (iii) routine servicing and mainte10 nance of products, to the extent that alter11 native sources are not readily or reason12 ably available;

13 (D) to information and technology essen14 tial to United States products or production; or

15 (E) to medical or other humanitarian

16 items.

17 (d) ADVISORY OPINIONS.—Upon the request of any

18 person, the Secretary of State may, in consultation with

19 the Secretary of Defense, issue in writing an advisory

20 opinion to that person as to whether a proposed activity

21 by that person would subject that person to the sanctions

22 under this section. Any person who relies in good faith

23 on such an advisory opinion which states that the pro24 posed activity would not subject a person to such sanc25 tions, and any person who thereafter engages in such ac-
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1 tivity, may not be made subject to such sanctions on ac2 count of such activity.

3 (e) TERMINATION OF THE SANCTIONS.—The sanc4 tions imposed pursuant to this section shall apply for a

5 period of at least 12 months following the imposition of

6 the sanctions and shall cease to apply thereafter only if

7 the President determines and certifies in writing to the

8 Congress that—

9 (1) reliable information indicates that the for10 eign person or United States person with respect to

11 which the determination was made under subsection

12 (a)(1) has ceased to aid or abet any individual,

13 group, or non-nuclear-weapon state in its efforts to

14 acquire unsafeguarded special nuclear material or

15 any nuclear explosive device, as described in that

16 subsection; and

17 (2) the President has received reliable assur18 ances from the foreign person or United States per19 son, as the case may be, that such person will not,

20 in the future, aid or abet any individual, group, or

21 non-nuclear-weapon state in its efforts to acquire

22 unsafeguarded special nuclear material or any nu23 clear explosive device, as described in subsection

24 (a)(1).

25 (f) WAIVER.—
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1 (1) CRITERION FOR WAIVER.—The President

2 may waive the application of the sanctions imposed

3 on any person pursuant to this section, after the end

4 of the 12-month period beginning on the date on

5 which that sanctions was imposed on that person, if

6 the President determines and certifies in writing to

7 the Congress that the continued imposition of the

8 sanctions would have a serious adverse effect on

9 vital United States interests.

10 (2) NOTIFICATION OF AND REPORT TO CON11 GRESS.—If the President decides to exercise the

12 waiver authority provided in paragraph (1), the

13 President shall so notify the Congress not less than

14 20 days before the waiver takes effect. Such notifica15 tion shall include a report fully articulating the ra16 tionale and circumstances which led the President to

17 exercise the waiver authority.

18 SEC. 222. ELIGIBILITY FOR ASSISTANCE.

19 (a) AMENDMENTS TO THE ARMS EXPORT CONTROL

20 ACT.—

21 (1) PROHIBITION.—Section 3 of the Arms Ex22 port Control Act (22 U.S.C. 2753) is amended by

23 adding at the end the following new subsection:

24 ‘‘(f) No sales or leases shall be made to any country

25 that the President has determined is in material breach
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1 of its binding commitments to the United States under

2 international treaties or agreements concerning the non3 proliferation of nuclear explosive devices (as defined in

4 section 231(4) of the Nuclear Proliferation Prevention Act

5 of 1995) and unsafeguarded special nuclear material (as

6 defined in section 231(8) of that Act).’’.

7 (2) DEFINITION OF SUPPORT FOR INTER8 NATIONAL TERRORISM.—Section 40 of such Act (22

9 U.S.C. 2780) is amended—

10 (A) in subsection (d), by adding at the end

11 the following new sentence: ‘‘For purposes of

12 this subsection, such acts shall include all ac13 tivities that the Secretary determines willfully

14 aid or abet the international proliferation of nu15 clear explosive devices to individuals or group or

16 willfully aid or abet an individual or groups in

17 acquiring unsafeguarded special nuclear mate18 rial.’’; and

19 (B) in subsection (l)—

20 (i) in paragraph (2), by striking

21 ‘‘and’’ after the semicolon;

22 (ii) in paragraph (3), by striking the

23 period at the end and inserting a semi24 colon; and
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1 (iii) by adding at the end the follow2 ing:

3 ‘‘(4) the term ‘nuclear explosive device’ has the

4 meaning given that term in section 231(4) of the

5 Nuclear Proliferation Prevention Act of 1995; and

6 ‘‘(5) the term ‘unsafeguarded special nuclear

7 material’ has the meaning given that term in section

8 231(8) of the Nuclear Proliferation Prevention Act

9 of 1995.’’.

10 (b) FOREIGN ASSISTANCE ACT OF 1961.—

11 (1) PRESIDENTIAL DETERMINATION 82–7.—

12 Notwithstanding any other provision of law, Presi13 dential Determination No. 82–7 of February 10,

14 1982, made pursuant to section 670(a)(2) of the

15 Foreign Assistance Act of 1961, shall have no force

16 or effect with respect to any grounds for the prohibi17 tion of assistance under section 102(a) of the Arms

18 Export Control Act arising on or after the effective

19 date of this part.

20 (2) AMENDMENT.—Section 620E(d) of the For21 eign Assistance Act of 1961 (22 U.S.C. 2375(d)) is

22 amended to read as follows:

23 ‘‘(d) The President may waive the prohibitions of sec24 tion 101 of the Arms Export Control Act with respect to

25 any grounds for the prohibition of assistance under that
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1 section arising before the effective date of part B of the

2 Nuclear Proliferation Prevention Act of 1995 to provide

3 assistance to Pakistan if he determines that to do so is

4 in the national interest of the United States.’’.

5 SEC. 223. ROLE OF INTERNATIONAL FINANCIAL INSTITU6 TIONS.

7 (a) IN GENERAL.—The Secretary of the Treasury

8 shall instruct the United States executive director to each

9 of the international financial institutions described in sec10 tion 701(a) of the International Financial Institutions Act

11 (22 U.S.C. 262d(a)) to use the voice and vote of the

12 United States to oppose any use of the institution’s funds

13 to promote the acquisition of unsafeguarded special nu14 clear material or the development, stockpiling, or use of

15 any nuclear explosive device by any non-nuclear-weapon

16 state.

17 (b) DUTIES OF UNITED STATES EXECUTIVE DIREC18 TORS.—Section 701(b)(3) of the International Financial

19 Institutions Act (22 U.S.C. 262d(b)(3)) is amended to

20 read as follows:

21 ‘‘(3) whether the recipient country—

22 ‘‘(A) is seeking to acquire unsafeguarded

23 special nuclear material (as defined in section

24 231(8) of the Nuclear Proliferation Prevention
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1 Act of 1995) or a nuclear explosive device (as

2 defined in section 231(4) of that Act);

3 ‘‘(B) is not a State Party to the Treaty on

4 the Non-Proliferation of Nuclear Weapons; or

5 ‘‘(C) has detonated a nuclear explosive de6 vice; and’’.

7 SEC. 224. PROHIBITION ON ASSISTING NUCLEAR PRO8 LIFERATION THROUGH THE PROVISION OF

9 FINANCING.

10 (a) PROHIBITED ACTIVITY DEFINED.—For purposes

11 of this section, the term ‘‘prohibited activity’’ means the

12 act of knowingly, materially, and directly contributing or

13 attempting to contribute, through the provision of financ14 ing, to—

15 (1) the acquisition of unsafeguarded special nu16 clear material; or

17 (2) the use, development, production, stock18 piling, or other acquisition of any nuclear explosive

19 device,

20 by any individual, group, or non-nuclear-weapon state.

21 (b) PROHIBITION.—To the extent that the United

22 States has jurisdiction to prohibit such activity by such

23 person, no United States person and no foreign person

24 may engage in any prohibited activity.
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1 (c) PRESIDENTIAL DETERMINATION AND ORDER

2 WITH RESPECT TO UNITED STATES AND FOREIGN PER3 SONS.—If the President determines, in writing after op4 portunity for a hearing on the record, that a United States

5 person or a foreign person has engaged in a prohibited

6 activity (without regard to whether subsection (b) applies),

7 the President shall, by order, impose the sanctions de8 scribed in subsection (d) on such person.

9 (d) SANCTIONS.—The following sanctions shall be

10 imposed pursuant to any order issued under subsection

11 (c) with respect to any United States person or any for12 eign person:

13 (1) BAN ON DEALINGS IN GOVERNMENT FI14 NANCE.—

15 (A) DESIGNATION AS PRIMARY DEALER.—

16 Neither the Board of Governors of the Federal

17 Reserve System nor the Federal Reserve Bank

18 of New York may designate, or permit the con19 tinuation of any prior designation of, the person

20 as a primary dealer in United States Govern21 ment debt instruments.

22 (B) SERVICE AS DEPOSITARY.—The person

23 may not serve as a depositary for United States

24 Government funds.
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1 (2) RESTRICTIONS ON OPERATIONS.—The per2 son may not, directly or indirectly—

3 (A) commence any line of business in the

4 United States in which the person was not en5 gaged as of the date of the order; or

6 (B) conduct business from any location in

7 the United States at which the person did not

8 conduct business as of the date of the order.

9 (e) JUDICIAL REVIEW.—Any determination of the

10 President under subsection (c) shall be subject to judicial

11 review in accordance with chapter 7 of part I of title 5,

12 United States Code.

13 (f) CONSULTATION WITH AND ACTIONS BY FOREIGN

14 GOVERNMENT OF JURISDICTION.—

15 (1) CONSULTATIONS.—If the President makes a

16 determination under subsection (c) with respect to a

17 foreign person, the Congress urges the President to

18 initiate consultations immediately with any appro19 priate foreign government with respect to the impo20 sition of any sanction pursuant to this section.

21 (2) ACTIONS BY GOVERNMENT OF JURISDIC22 TION.—

23 (A) SUSPENSION OF IMPOSITION OF SANC24 TIONS.—In order to pursue consultations de25 scribed in paragraph (1) with any government
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1 referred to in such paragraph, the President

2 may delay, for up to 90 days, the effective date

3 of an order under subsection (c) imposing any

4 sanction.

5 (B) COORDINATION WITH ACTIVITIES OF

6 FOREIGN GOVERNMENT.—Following consulta7 tions described in paragraph (1), the order is8 sued by the President under subsection (c) im9 posing any sanction on a foreign person shall

10 take effect unless the President determines, and

11 certifies in writing to the Congress, that the

12 government referred to in paragraph (1) has

13 taken specific and effective actions, including

14 the imposition of appropriate penalties, to ter15 minate the involvement of the foreign person in

16 any prohibited activity.

17 (C) EXTENSION OF PERIOD.—After the

18 end of the period described in subparagraph

19 (A), the President may delay, for up to an addi20 tional 90 days, the effective date of an order is21 sued under subsection (c) imposing any sanc22 tion on a foreign person if the President deter23 mines, and certifies in writing to the Congress,

24 that the appropriate foreign government is in
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1 the process of taking actions described in sub2 paragraph (B).

3 (3) REPORT TO CONGRESS.—Before the end of

4 the 90-day period beginning on the date on which an

5 order is issued under subsection (c), the President

6 shall submit to the Congress a report on—

7 (A) the status of consultations under this

8 subsection with the government referred to in

9 paragraph (1); and

10 (B) the basis for any determination under

11 paragraph (2) that such government has taken

12 specific corrective actions.

13 (g) TERMINATION OF THE SANCTIONS.—Any sanc14 tion imposed on any person pursuant to an order issued

15 under subsection (c) shall—

16 (1) remain in effect for a period of not less

17 than 12 months; and

18 (2) cease to apply after the end of such 12-

19 month period only if the President determines, and

20 certifies in writing to the Congress, that—

21 (A) the person has ceased to engage in any

22 prohibited activity; and

23 (B) the President has received reliable as24 surances from such person that the person will
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1 not, in the future, engage in any prohibited ac2 tivity.

3 (h) WAIVER.—The President may waive the contin4 ued application of any sanction imposed on any person

5 pursuant to an order issued under subsection (c) if the

6 President determines, and certifies in writing to the Con7 gress, that the continued imposition of the sanction would

8 have a serious adverse effect on the safety and soundness

9 of the domestic or international financial system or on do10 mestic or international payments systems.

11 (i) ENFORCEMENT ACTION.—The Attorney General

12 may bring an action in an appropriate district court of

13 the United States for injunctive and other appropriate re14 lief with respect to—

15 (1) any violation of subsection (b); or

16 (2) any order issued under subsection (c).

17 (j) KNOWINGLY DEFINED.—

18 (1) IN GENERAL.—For purposes of this section,

19 the term ‘‘knowingly’’ means the state of mind of a

20 person with respect to conduct, a circumstance, or a

21 result in which—

22 (A) such person is aware that such person

23 is engaging in such conduct, that such cir24 cumstance exists, or that such result is substan25 tially certain to occur; or
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1 (B) such person has a firm belief that such

2 circumstance exists or that such result is sub3 stantially certain to occur.

4 (2) KNOWLEDGE OF THE EXISTENCE OF A PAR5 TICULAR CIRCUMSTANCE.—If knowledge of the exist6 ence of a particular circumstance is required for an

7 offense, such knowledge is established if a person is

8 aware of a high probability of the existence of such

9 circumstance, unless the person actually believes

10 that such circumstance does not exist.

11 (k) SCOPE OF APPLICATION.—This section shall

12 apply with respect to prohibited activities which occur on

13 or after the date this part takes effect.

14 SEC. 225. EXPORT-IMPORT BANK.

15 Section 2(b)(4) of the Export-Import Bank Act of

16 1945 (12 U.S.C. 635(b)(4)) is amended in the first sen17 tence by inserting after ‘‘device’’ the following: ‘‘(as de18 fined in section 231(4) of the Nuclear Proliferation Pre19 vention Act of 1995), or that any country has willfully

20 aided or abetted any non-nuclear-weapon state (as defined

21 in section 231(5) of that Act) to acquire any such nuclear

22 explosive device or to acquire unsafeguarded special nu23 clear material (as defined in section 231(8) of that Act)’’.
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1 SEC. 226. SANCTIONS AGAINST COUNTRIES INVOLVED IN

2 TRANSFER OF NUCLEAR WEAPONS OR DE3 SIGN INFORMATION OR COMPONENTS.

4 (a) DETERMINATION OF THE PRESIDENT.—Except

5 as provided in subsections (d), (e), and (f), in the event

6 that the President determines that any country, on or

7 after the effective date of this part—

8 (1) transfers to a non-nuclear-weapon state a

9 nuclear explosive device,

10 (2) is a non-nuclear-weapon state and either—

11 (A) receives a nuclear explosive device, or

12 (B) detonates a nuclear explosive device,

13 (3) transfers to a non-nuclear-weapon state any

14 design information or component which is deter15 mined by the President to be important to, and

16 known by the transferring country to be intended by

17 the recipient state for use in, the development or

18 manufacture of any nuclear explosive device, or

19 (4) is a non-nuclear-weapon state and seeks and

20 receives any design information or component which

21 is determined by the President to be important to,

22 and intended by the recipient state for use in, the

23 development or manufacture of any nuclear explosive

24 device,

25 then the President shall forthwith report to the Congress

26 in writing his determination with respect to that country
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1 and shall forthwith impose the sanctions described in sub2 section (b) against that country.

3 (b) SANCTIONS.—The sanctions referred to in sub4 section (a) are as follows:

5 (1) The United States Government shall termi6 nate assistance to that country under the Foreign

7 Assistance Act of 1961, except for humanitarian as8 sistance or food or other agricultural commodities.

9 (2) The United States Government shall—

10 (A) terminate sales to that country under

11 the Arms Export Control Act of any defense ar12 ticles, defense services, or design and construc13 tion services, and

14 (B) terminate and deny licenses for the ex15 port to that country of any item on the United

16 States Munitions List.

17 (3) The United States Government shall termi18 nate all foreign military financing for that country

19 under the Arms Export Control Act.

20 (4) The United States Government shall deny

21 to that country any credit, credit guarantees, or

22 other financial assistance by any department, agen23 cy, or instrumentality of the United States Govern24 ment, except that the sanction of this paragraph

25 shall not apply—
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1 (A) to any transaction subject to the re2 porting requirements of title V of the National

3 Security Act of 1947 (relating to congressional

4 oversight of intelligence activities), or

5 (B) to humanitarian assistance.

6 (5) The United States Government shall op7 pose, in accordance with section 701 of the Inter8 national Financial Institutions Act (22 U.S.C.

9 262d), the extension of any loan or financial or tech10 nical assistance to that country by any international

11 financial institution.

12 (6) The United States Government shall pro13 hibit any United States bank from making any loan

14 or providing any credit to the government of that

15 country, except for loans or credits for the purpose

16 of purchasing food or other agricultural commod17 ities.

18 (7) The authorities of section 106 of the Export

19 Act of 1995 shall be used to prohibit exports to that

20 country of specific goods and technology (excluding

21 food and other agricultural commodities), except

22 that such prohibition shall not apply to any trans23 action subject to the reporting requirements of title

24 V of the National Security Act of 1947 (relating to

25 congressional oversight of intelligence activities).
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1 (8) In addition to the sanctions provided for in

2 paragraphs (1) through (7), the President may pro3 hibit the importation into the United States of goods

4 that are the growth, product, or manufacture of that

5 country. The President shall determine the type and

6 volume of imports to be prohibited.

7 (c) DEFINITIONS.—As used in this section—

8 (1) the term ‘‘design information’’ means spe9 cific information that relates to the design of a nu10 clear explosive device and that is not available to the

11 public; and

12 (2) the term ‘‘component’’ means a specific

13 component of a nuclear explosive device.

14 (d) AUTHORITY TO DELAY SANCTIONS RELATING TO

15 NUCLEAR EXPLOSIVE DEVICES.—

16 (1) PRESIDENTIAL CERTIFICATION.—Notwith17 standing subsection (a), the President may, for a pe18 riod of not more than 30 days of continuous session,

19 delay the imposition of sanctions which would other20 wise be required under subsection (a)(1) or (2) if the

21 President first transmits to the Speaker of the

22 House of Representatives, and to the chairman of

23 the Committee on Foreign Relations of the Senate,

24 a certification that he has determined that an imme25 diate imposition of sanctions on that country would
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1 be detrimental to the national security of the United

2 States. Not more than one such certification may be

3 transmitted for a country with respect to the same

4 detonation, transfer, or receipt of a nuclear explosive

5 device.

6 (2) AUTHORITY TO GRANT WAIVER.—(A) If the

7 President transmits a certification to the Congress

8 under paragraph (1), a joint resolution which would

9 permit the President to exercise the waiver authority

10 of subsection (e) shall, if introduced in either House

11 within 30 days of continuous session after the Con12 gress receives this certification, be considered in the

13 Senate in accordance with subparagraph (B).

14 (B) Any joint resolution under this paragraph

15 shall be considered in the Senate in accordance with

16 the provisions of section 601(b) of the International

17 Security Assistance and Arms Export Control Act of

18 1976.

19 (C) For purposes of this paragraph, the term

20 ‘‘joint resolution’’ means a joint resolution the mat21 ter after the resolving clause of which is as follows:

22 ‘‘That the Congress having received on ll a cer23 tification by the President under section 226(d)(1)

24 of the Nuclear Proliferation Prevention Act of 1995

25 with respect to ll, the Congress hereby authorizes
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1 the President to exercise the waiver authority con2 tained in section 226(e) of that Act.’’, with the date

3 of receipt of the certification inserted in the first

4 blank and the name of the country inserted in the

5 second blank.

6 (e) WAIVER AUTHORITY.—Notwithstanding sub7 section (a), if the Congress enacts a joint resolution under

8 subsection (d), the President may waive any sanction

9 which would otherwise be required under subsection (a)(1)

10 or (2) if he determines and certifies in writing to the

11 Speaker of the House of Representatives and the Commit12 tee on Foreign Relations of the Senate that the imposition

13 of such sanction would be seriously prejudicial to the

14 achievement of United States nonproliferation objectives

15 or otherwise jeopardize the common defense and security.

16 The President shall transmit with such certification a

17 statement setting forth the specific reasons therefor.

18 (f) SANCTIONS RELATING TO INFORMATION AND

19 COMPONENTS.—

20 (1) IMPOSITION.—In the event the President is

21 required to impose sanctions against a country

22 under subsection (a)(3) or (a)(4), the President shall

23 forthwith so inform such country and shall impose

24 the required sanctions beginning 30 days after sub25 mitting to the Congress the report required by sub-
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1 section (a) unless, and to the extent that, there is

2 enacted during the 30-day period a law prohibiting

3 the imposition of such sanctions.

4 (2) WAIVER.—Notwithstanding any other provi5 sion of law, the sanctions which are required to be

6 imposed against a country under subsection (a)(3)

7 or (4) shall not apply if the President determines

8 and certifies in writing to the Committee on Foreign

9 Relations and the Committee on Governmental Af10 fairs of the Senate and the Committee on Inter11 national Relations of the House of Representatives

12 that the application of such sanctions against such

13 country would have a serious adverse effect on vital

14 United States interests. The President shall trans15 mit with such certification a statement setting forth

16 the specific reasons therefor.

17 (g) CONTINUITY OF SESSION.—For purposes of this

18 section, continuity of session is broken only by an adjourn19 ment of the Congress sine die and the days on which either

20 House of Congress is not in session because of an adjourn21 ment of more than three days to a day certain are ex22 cluded in the computation of any period of time in which

23 the Congress is in continuous session.

24 (h) AUTHORITY OF THE PRESIDENT NOT DELE25 GABLE.—The President may not delegate or transfer his
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1 power, authority, or discretion to make or modify deter2 minations under this section.

3 SEC. 227. AMENDMENT TO THE ARMS EXPORT CONTROL

4 ACT.

5 (a) IN GENERAL.—The Arms Export Control Act is

6 amended by adding at the end the following new chapter:

7 ‘‘CHAPTER 10—NUCLEAR

8 NONPROLIFERATION CONTROLS

9 ‘‘SEC. 101. NUCLEAR ENRICHMENT TRANSFERS.

10 ‘‘(a) PROHIBITIONS; SAFEGUARDS AND MANAGE11 MENT.—Except as provided in subsection (b), no funds

12 made available to carry out the Foreign Assistance Act

13 of 1961 or this Act may be used for the purpose of provid14 ing economic assistance (including assistance under chap15 ter 4 of part II of the Foreign Assistance Act of 1961),

16 providing military assistance or grant military education

17 and training, providing assistance under chapter 6 of part

18 II of that Act, or extending military credits or making

19 guarantees, to any country which the President deter20 mines delivers nuclear enrichment equipment, materials,

21 or technology to any other country on or after August 4,

22 1977, or receives such equipment, materials, or technology

23 from any other country on or after August 4, 1977, unless

24 before such delivery—
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1 ‘‘(1) the supplying country and receiving coun2 try have reached agreement to place all such equip3 ment, materials, or technology, upon delivery, under

4 multilateral auspices and management when avail5 able; and

6 ‘‘(2) the recipient country has entered into an

7 agreement with the International Atomic Energy

8 Agency to place all such equipment, materials, tech9 nology, and all nuclear fuel and facilities in such

10 country, under the safeguards system of such

11 Agency.

12 ‘‘(b) CERTIFICATION BY PRESIDENT OF NECESSITY

13 OF CONTINUED ASSISTANCE; DISAPPROVAL BY CON14 GRESS.—(1) Notwithstanding subsection (a), the Presi15 dent may furnish assistance which would otherwise be pro16 hibited under such subsection if he determines and cer17 tifies in writing to the Speaker of the House of Represent18 atives and the Committee on Foreign Relations of the Sen19 ate that—

20 ‘‘(A) the termination of such assistance would

21 have a serious adverse effect on vital United States

22 interests; and

23 ‘‘(B) he has received reliable assurances that

24 the country in question will not acquire or develop

25 nuclear weapons or assist other nations in doing so.
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1 Such certification shall set forth the reasons supporting

2 such determination in each particular case.

3 ‘‘(2)(A) A certification under paragraph (1) shall

4 take effect on the date on which the certification is re5 ceived by the Congress. However, if, within 30 calendar

6 days after receiving this certification, the Congress enacts

7 a joint resolution stating in substance that the Congress

8 disapproves the furnishing of assistance pursuant to the

9 certification, then upon the enactment of that resolution

10 the certification shall cease to be effective and all deliveries

11 of assistance furnished under the authority of that certifi12 cation shall be suspended immediately.

13 ‘‘(B) Any joint resolution under this paragraph shall

14 be considered in the Senate in accordance with the provi15 sions of section 601(b) of the International Security As16 sistance and Arms Export Control Act of 1976.

17 ‘‘SEC. 102. NUCLEAR REPROCESSING TRANSFERS AND ILLE18 GAL EXPORTS FOR NUCLEAR EXPLOSIVE DE19 VICES.

20 ‘‘(a) PROHIBITIONS ON ASSISTANCE TO COUNTRIES

21 INVOLVED IN TRANSFER OF NUCLEAR REPROCESSING

22 EQUIPMENT, MATERIALS, OR TECHNOLOGY.—Except as

23 provided in subsection (b), no funds made available to

24 carry out the Foreign Assistance Act of 1961 or this Act

25 may be used for the purpose of providing economic assist-
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1 ance (including assistance under chapter 4 of part II of

2 the Foreign Assistance Act of 1961), providing military

3 assistance or grant military education and training, pro4 viding assistance under chapter 6 of part II of that Act,

5 or extending military credits or making guarantees, to any

6 country which the President determines—

7 ‘‘(1) delivers nuclear reprocessing equipment,

8 materials, or technology to any other country on or

9 after August 4, 1977, or receives such equipment,

10 materials, or technology from any other country on

11 or after August 4, 1977 (except for the transfer of

12 reprocessing technology associated with the inves13 tigation, under international evaluation programs in

14 which the United States participates, of technologies

15 which are alternatives to pure plutonium reprocess16 ing), or

17 ‘‘(2) is a non-nuclear-weapon state which, on or

18 after August 8, 1985, exports illegally (or attempts

19 to export illegally) from the United States any mate20 rial, equipment, or technology which would contrib21 ute significantly to the ability of such country to

22 manufacture a nuclear explosive device, if the Presi23 dent determines that the material, equipment, or

24 technology was to be used by such country in the

25 manufacture of a nuclear explosive device.
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1 For purposes of paragraph (2), an export (or attempted

2 export) by a person who is an agent of, or is otherwise

3 acting on behalf of or in the interests of, a country shall

4 be considered to be an export (or attempted export) by

5 that country.

6 ‘‘(b) EXCEPTION.—(1) Notwithstanding subsection

7 (a), the President in any fiscal year may furnish assist8 ance which would otherwise be prohibited under that sub9 section if he determines and certifies in writing during

10 that fiscal year to the Speaker of the House of Represent11 atives and the Committee on Foreign Relations of the Sen12 ate that the termination of such assistance would be seri13 ously prejudicial to the achievement of United States non14 proliferation objectives or would otherwise jeopardize the

15 common defense and security. The President shall trans16 mit with such certification a statement setting forth the

17 specific reasons therefor.

18 ‘‘(2)(A) A certification under paragraph (1) shall

19 take effect on the date on which the certification is re20 ceived by the Congress. However, if, within 30 calendar

21 days after receiving this certification, the Congress enacts

22 a joint resolution stating in substance that the Congress

23 disapproves the furnishing of assistance pursuant to the

24 certification, then upon the enactment of that resolution

25 the certification shall cease to be effective and all deliveries
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1 of assistance furnished under the authority of that certifi2 cation shall be suspended immediately.

3 ‘‘(B) Any joint resolution under this paragraph shall

4 be considered in the Senate in accordance with the provi5 sions of section 601(b) of the International Security As6 sistance and Arms Export Control Act of 1976.

7 ‘‘SEC. 103. DEFINITION OF NUCLEAR EXPLOSIVE DEVICE.

8 ‘‘As used in this chapter, the term ‘nuclear explosive

9 device’ has the meaning given that term in section 231(4)

10 of the Nuclear Proliferation Prevention Act of 1995.’’.

11 (b) REPEALS.—Sections 669 and 670 of the Foreign

12 Assistance Act of 1961 are hereby repealed.

13 (c) REFERENCES IN LAW.—Any reference in law as

14 of the effective date of this part to section 669 or 670

15 of the Foreign Assistance Act of 1961 shall, on and after

16 such date, be deemed to be a reference to section 101 or

17 102 of the Arms Export Control Act, or section 226 of

18 this Act, as the case may be.

19 SEC. 228. REWARD.

20 Section 36(a) of the State Department Basic Au21 thorities Act of 1956 (22 U.S.C. 2708(a)) is amended—

22 (1) by redesignating paragraphs (1) through

23 (3) as subparagraphs (A) through (C), respectively;

24 (2) by inserting ‘‘(1)’’ after ‘‘(a)’’; and

25 (3) by adding at the end the following:
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1 ‘‘(2) For purposes of this subsection, the term ‘act

2 of international terrorism’ includes any act substantially

3 contributing to the acquisition of unsafeguarded special

4 nuclear material (as defined in section 231(8) of the Nu5 clear Proliferation Prevention Act of 1995) or any nuclear

6 explosive device (as defined in section 231(4) of that Act)

7 by an individual, group, or non-nuclear-weapon state (as

8 defined in section 231(5) of that Act).’’.

9 SEC. 229. REPORTS.

10 (a) CONTENT OF ACDA ANNUAL REPORT.—Section

11 51 of the Arms Control and Disarmament Act, as amend12 ed by section 717 of the Foreign Relations Authorization

13 Act, Fiscal Years 1995 and 1995, is amended—

14 (1) in subsection (a)—

15 (A) by striking ‘‘and’’ at the end of para16 graph (5);

17 (B) by striking the period at the end of

18 paragraph (6) and inserting ‘‘; and’’; and

19 (C) by adding after paragraph (6) the fol20 lowing new paragraph:

21 ‘‘(7) a discussion of any material noncompliance

22 by foreign governments with their binding commit23 ments to the United States with respect to the pre24 vention of the spread of nuclear explosive devices (as

25 defined in section 231(4) of the Nuclear Prolifera-
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1 tion Prevention Act of 1995) by non-nuclear-weapon

2 states (as defined in section 231(5) of that Act) or

3 the acquisition by such states of unsafeguarded spe4 cial nuclear material (as defined in section 231(8) of

5 that Act), including—

6 ‘‘(A) a net assessment of the aggregate

7 military significance of all such violations;

8 ‘‘(B) a statement of the compliance policy

9 of the United States with respect to violations

10 of those commitments; and

11 ‘‘(C) what actions, if any, the President

12 has taken or proposes to take to bring any na13 tion committing such a violation into compli14 ance with those commitments.’’; and

15 (2) by adding at the end the following new sub16 section:

17 ‘‘(c) REPORTING CONSECUTIVE NONCOMPLIANCE.—

18 If the President in consecutive reports submitted to the

19 Congress under this section reports that any designated

20 nation is not in full compliance with its binding non21 proliferation commitments to the United States, then the

22 President shall include in the second such report an as23 sessment of what actions are necessary to compensate for

24 such violations.’’.
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1 (b) REPORTING ON DEMARCHES.—(1) It is the sense

2 of the Congress that the Department of State should, in

3 the course of implementing its reporting responsibilities

4 under section 602(c) of the Nuclear Non-Proliferation Act

5 of 1978, include a summary of demarches that the United

6 States has issued or received from foreign governments

7 with respect to activities which are of significance from

8 the proliferation standpoint.

9 (2) For purposes of this section, the term ‘‘de10 marche’’ means any official communication by one govern11 ment to another, by written or oral means, intended by

12 the originating government to express—

13 (A) a concern over a past, present, or possible

14 future action or activity of the recipient government,

15 or of a person within the jurisdiction of that govern16 ment, contributing to the global spread of

17 unsafeguarded special nuclear material or of nuclear

18 explosive devices;

19 (B) a request for the recipient government to

20 counter such action or activity; or

21 (C) both the concern and request described in

22 subparagraphs (A) and (B).
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1 SEC. 230. TECHNICAL CORRECTION.

2 Section 133 b. of the Atomic Energy Act of 1954 (42

3 U.S.C. 2160c) is amended by striking ‘‘20 kilograms’’ and

4 inserting ‘‘5 kilograms’’.

5 SEC. 231. DEFINITIONS.

6 For purposes of this part—

7 (1) the term ‘‘foreign person’’ means—

8 (A) an individual who is not a citizen of

9 the United States or an alien admitted for per10 manent residence to the United States; or

11 (B) a corporation, partnership, or other

12 nongovernment entity which is created or orga13 nized under the laws of a foreign country or

14 which has its principal place of business outside

15 the United States;

16 (2) the term ‘‘goods or technology’’ means—

17 (A) nuclear materials and equipment and

18 sensitive nuclear technology (as such terms are

19 defined in section 4 of the Nuclear Non-Pro20 liferation Act of 1978), all export items des21 ignated by the President pursuant to section

22 309(c) of the Nuclear Non-Proliferation Act of

23 1978, and all technical assistance requiring au24 thorization under section 57 b. of the Atomic

25 Energy Act of 1954; and
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1 (B) in the case of exports from a country

2 other than the United States, any goods or

3 technology that, if exported from the United

4 States, would be goods or technology described

5 in subparagraph (A);

6 (3) the term ‘‘IAEA safeguards’’ means the

7 safeguards set forth in an agreement between a

8 country and the International Atomic Energy Agen9 cy, as authorized by Article III(A)(5) of the Statute

10 of the International Atomic Energy Agency;

11 (4) the term ‘‘nuclear explosive device’’ means

12 any device, whether assembled or disassembled, that

13 is designed to produce an instantaneous release of

14 an amount of nuclear energy from special nuclear

15 material that is greater than the amount of energy

16 that would be released from the detonation of one

17 pound of trinitrotoluene (TNT);

18 (5) the term ‘‘non-nuclear-weapon state’’ means

19 any country which is not a nuclear-weapon state, as

20 defined by Article IX (3) of the Treaty on the Non21 Proliferation of Nuclear Weapons, signed at Wash22 ington, London, and Moscow on July 1, 1968;

23 (6) the term ‘‘special nuclear material’’ has the

24 meaning given that term in section 11 aa. of the

25 Atomic Energy Act of 1954 (42 U.S.C. 2014aa);
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1 (7) the term ‘‘United States person’’ means—

2 (A) an individual who is a citizen of the

3 United States or an alien admitted for perma4 nent residence to the United States; or

5 (B) a corporation, partnership, or other

6 nongovernment entity which is not a foreign

7 person; and

8 (8) the term ‘‘unsafeguarded special nuclear

9 material’’ means special nuclear material which is

10 held in violation of IAEA safeguards or not subject

11 to IAEA safeguards (excluding any quantity of ma12 terial that could, if it were exported from the United

13 States, be exported under a general license issued by

14 the Nuclear Regulatory Commission).

15 SEC. 232. EFFECTIVE DATE.

16 The provisions of this part, and the amendments

17 made by this part, shall take effect 60 days after the date

18 of the enactment of this Act.

19 PART C—INTERNATIONAL ATOMIC ENERGY

20 AGENCY

21 SEC. 241. BILATERAL AND MULTILATERAL INITIATIVES.

22 It is the sense of the Congress that in order to main23 tain and enhance international confidence in the effective24 ness of IAEA safeguards and in other multilateral under25 takings to halt the global proliferation of nuclear weapons,
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1 the United States should seek to negotiate with other na2 tions and groups of nations, including the IAEA Board

3 of Governors and the Nuclear Suppliers Group, to—

4 (1) build international support for the principle

5 that nuclear supply relationships must require pur6 chasing nations to agree to full-scope international

7 safeguards;

8 (2) encourage each nuclear-weapon state within

9 the meaning of the Treaty to undertake a com10 prehensive review of its own procedures for declas11 sifying information relating to the design or produc12 tion of nuclear explosive devices and to investigate

13 any measures that would reduce the risk of such in14 formation contributing to nuclear weapons prolifera15 tion;

16 (3) encourage the deferral of efforts to produce

17 weapons-grade nuclear material for large-scale com18 mercial uses until such time as safeguards are devel19 oped that can detect, on a timely and reliable basis,

20 the diversion of significant quantities of such mate21 rial for nuclear explosive purposes;

22 (4) pursue greater financial support for the im23 plementation and improvement of safeguards from

24 all IAEA member nations with significant nuclear

25 programs, particularly from those nations that are
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1 currently using or planning to use weapons-grade

2 nuclear material for commercial purposes;

3 (5) arrange for the timely payment of annual fi4 nancial contributions by all members of the IAEA,

5 including the United States;

6 (6) pursue the elimination of international com7 merce in highly enriched uranium for use in research

8 reactors while encouraging multilateral cooperation

9 to develop and to use low-enriched alternative nu10 clear fuels;

11 (7) oppose efforts by non-nuclear-weapon states

12 to develop or use unsafeguarded nuclear fuels for

13 purposes of naval propulsion;

14 (8) pursue an international open skies arrange15 ment that would authorize the IAEA to operate sur16 veillance aircraft and would facilitate IAEA access

17 to satellite information for safeguards verification

18 purposes;

19 (9) develop an institutional means for IAEA

20 member nations to share intelligence material with

21 the IAEA on possible safeguards violations without

22 compromising national security or intelligence

23 sources or methods;

24 (10) require any exporter of a sensitive nuclear

25 facility or sensitive nuclear technology to a non-nu-
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1 clear-weapon state to notify the IAEA prior to ex2 port and to require safeguards over that facility or

3 technology, regardless of its destination; and

4 (11) seek agreement among the parties to the

5 Treaty to apply IAEA safeguards in perpetuity and

6 to establish new limits on the right to withdraw from

7 the Treaty.

8 SEC. 242. IAEA INTERNAL REFORMS.

9 In order to promote the early adoption of reforms in

10 the implementation of the safeguards responsibilities of

11 the IAEA, the Congress urges the President to negotiate

12 with other nations and groups of nations, including the

13 IAEA Board of Governors and the Nuclear Suppliers

14 Group, to—

15 (1) improve the access of the IAEA within nu16 clear facilities that are capable of producing, proc17 essing, or fabricating special nuclear material suit18 able for use in a nuclear explosive device;

19 (2)(A) facilitate the IAEA’s efforts to meet and

20 to maintain its own goals for detecting the diversion

21 of nuclear materials and equipment, giving particu22 lar attention to facilities in which there are bulk

23 quantities of plutonium; and

24 (B) if it is not technically feasible for the IAEA

25 to meet those detection goals in a particular facility,
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1 require the IAEA to declare publicly that it is un2 able to do so;

3 (3) enable the IAEA to issue fines for violations

4 of safeguards procedures, to pay rewards for infor5 mation on possible safeguards violations, and to es6 tablish a ‘‘hot line’’ for the reporting of such viola7 tions and other illicit uses of weapons-grade nuclear

8 material;

9 (4) establish safeguards at facilities engaged in

10 the manufacture of equipment or material that is es11 pecially designated or prepared for the processing,

12 use, or production of special fissionable material or,

13 in the case of non-nuclear-weapon states, of any nu14 clear explosive device;

15 (5) establish safeguards over nuclear research

16 and development activities and facilities;

17 (6) implement special inspections of undeclared

18 nuclear facilities, as provided for under existing safe19 guards procedures, and seek authority for the IAEA

20 to conduct challenge inspections on demand at sus21 pected nuclear sites;

22 (7) expand the scope of safeguards to include

23 tritium, uranium concentrates, and nuclear waste

24 containing special fissionable material, and increase

25 the scope of such safeguards on heavy water;
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1 (8) revise downward the IAEA’s official mini2 mum amounts of nuclear material (‘‘significant

3 quantity’’) needed to make a nuclear explosive device

4 and establish these amounts as national rather than

5 facility standards;

6 (9) expand the use of full-time resident IAEA

7 inspectors at sensitive fuel cycle facilities;

8 (10) promote the use of near real time material

9 accountancy in the conduct of safeguards at facili10 ties that use, produce, or store significant quantities

11 of special fissionable material;

12 (11) develop with other IAEA member nations

13 an agreement on procedures to expedite approvals of

14 visa applications by IAEA inspectors;

15 (12) provide the IAEA the additional funds,

16 technical assistance, and political support necessary

17 to carry out the goals set forth in this subsection;

18 and

19 (13) make public the annual safeguards imple20 mentation report of the IAEA, establishing a public

21 registry of commodities in international nuclear com22 merce, including dual-use goods, and creating a pub23 lic repository of current nuclear trade control laws,

24 agreements, regulations, and enforcement and judi25 cial actions by IAEA member nations.
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1 SEC. 243. REPORTING REQUIREMENT.

2 (a) REPORT REQUIRED.—The President shall, in the

3 report required by section 601(a) of the Nuclear Non-Pro4 liferation Act of 1978, describe—

5 (1) the steps he has taken to implement sec6 tions 241 and 242, and

7 (2) the progress that has been made and the

8 obstacles that have been encountered in seeking to

9 meet the objectives set forth in sections 241 and

10 242.

11 (b) CONTENTS OF REPORT.—Each report under

12 paragraph (1) shall describe—

13 (1) the bilateral and multilateral initiatives that

14 the President has taken during the period since the

15 enactment of this Act in pursuit of each of the ob16 jectives set forth in sections 241 and 242;

17 (2) any obstacles that have been encountered in

18 the pursuit of those initiatives;

19 (3) any additional initiatives that have been

20 proposed by other countries or international organi21 zations to strengthen the implementation of IAEA

22 safeguards;

23 (4) all activities of the Federal Government in

24 support of the objectives set forth in sections 241

25 and 242;
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1 (5) any recommendations of the President on

2 additional measures to enhance the effectiveness of

3 IAEA safeguards; and

4 (6) any initiatives that the President plans to

5 take in support of each of the objectives set forth in

6 sections 241 and 242.

7 SEC. 244. DEFINITIONS.

8 As used in this part—

9 (1) the term ‘‘highly enriched uranium’’ means

10 uranium enriched to 20 percent or more in the iso11 tope U–235;

12 (2) the term ‘‘IAEA’’ means the International

13 Atomic Energy Agency;

14 (3) the term ‘‘near real time material account15 ancy’’ means a method of accounting for the loca16 tion, quantity, and disposition of special fissionable

17 material at facilities that store or process such mate18 rial, in which verification of peaceful use is continu19 ously achieved by means of frequent physical inven20 tories and the use of in-process instrumentation;

21 (4) the term ‘‘special fissionable material’’ has

22 the meaning given that term by Article XX(1) of the

23 Statute of the International Atomic Energy Agency,

24 done at the Headquarters of the United Nations on

25 October 26, 1956;
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1 (5) the term ‘‘the Treaty’’ means the Treaty on

2 the Non-Proliferation of Nuclear Weapons, signed at

3 Washington, London, and Moscow on July 1, 1968;

4 and

5 (6) the terms ‘‘IAEA safeguards’’, ‘‘non-nu6 clear-weapon state’’, ‘‘nuclear explosive device’’, and

7 ‘‘special nuclear material’’ have the meanings given

8 those terms in section 231 of this Act.

9 PART D—REPEAL OF DUPLICATIVE PROVISIONS

10 SEC. 251. REPEAL.

11 Effective 60 days after the date of the enactment of

12 this Act—

13 (1) title VIII of the Foreign Relations Author14 ization Act, Fiscal Years 1995 and 1995, the

15 amendments made by that title, and the items relat16 ing to such title in the table of contents of that Act,

17 are repealed; and

18 (2) with respect to any provisions of law re19 pealed by title VIII of that Act, such title shall be

20 deemed not to have been enacted.

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