```

[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 361 Engrossed in House (EH)]

  2d Session

                               H. R. 361

_______________________________________________________________________

                                 AN ACT

    To provide authority to control exports, and for other purposes.
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
104th CONGRESS
  2d Session
                                H. R. 361

_______________________________________________________________________

                                 AN ACT

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

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

SECTION 1. TABLE OF CONTENTS.

    The table of contents of this Act is as follows:

Sec. 1. Table of contents.
                     TITLE I--EXPORT ADMINISTRATION

Sec. 101. Short title.
Sec. 102. Findings.
Sec. 103. Policy statement.
Sec. 104. General provisions.
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

Sec. 201. Repeal of termination of provisions of the Nuclear 
                            Proliferation Prevention Act of 1994.
Sec. 202. Seeking multilateral support for unilateral sanctions.
Sec. 203. Sanctions under the Nuclear Proliferation Prevention Act of 
                            1994.

                     TITLE I--EXPORT ADMINISTRATION

SEC. 101. SHORT TITLE.

    This title may be cited as the ``Export Administration Act of 
1996''.

SEC. 102. FINDINGS.

    The Congress makes the following findings:
            (1) Export controls are a part of a comprehensive response 
        to national security threats. United States exports should be 
        restricted only for significant national security, 
        nonproliferation, and foreign policy reasons.
            (2) Exports of certain commodities and technology may 
        adversely affect the national security and foreign policy of 
        the United States by making a significant contribution to the 
        military potential of individual countries or by disseminating 
        the capability to design, develop, test, produce, stockpile, or 
        use weapons of mass destruction, missile delivery systems, and 
        other significant military capabilities. Therefore, the 
        administration of export controls should emphasize the control 
        of these exports.
            (3) The acquisition of sensitive commodities and technology 
        by those countries and end users whose actions or policies run 
        counter to United States national security or foreign policy 
        interests may enhance the military capabilities of those 
        countries, particularly their ability to design, develop, test, 
        produce, stockpile, use, and deliver nuclear, chemical, and 
        biological weapons, missile delivery systems, and other 
        significant military capabilities. This enhancement threatens 
        the security of the United States and its allies, and places 
        additional demands on the defense budget of the United States. 
        Availability to countries and end users of items that 
        contribute to military capabilities or the proliferation of 
        weapons of mass destruction is a fundamental concern of the 
        United States and should be eliminated through negotiations and 
        other appropriate means whenever possible.
            (4) With the growing importance of exports to sustained 
        United States economic growth and vitality, restrictions on 
        exports must be evaluated in terms of their effects on the 
        United States economy.
            (5) Export controls cannot be the sole instrument of the 
        United States to prevent a country or end user from developing 
        weapons of mass destruction. For this reason, export controls 
        should be applied as part of a comprehensive response to 
        security threats.
            (6) The national security of the United States depends not 
        only on wise foreign policies and a strong defense, but also a 
        vibrant national economy. To be truly effective, export 
        controls should be applied uniformly by all suppliers.
            (7) International treaties, such as the Chemical Weapons 
        Convention, and international agreements and arrangements 
        intended to control, lessen, or eliminate weapons of mass 
        destruction should be fully implemented by, among other things, 
        imposing restrictions on imports and exports of designated 
        items, monitoring, and transmitting reports on, the production, 
        processing, consumption, export, and import of designated 
        items, and complying with verification regimes mandated by such 
        treaties, agreements, and arrangements.
            (8) Except in the event the United States is the sole 
        source of critical supplies, unilateral export controls are 
        generally not truly effective in influencing the behavior of 
        other governments or impeding access to controlled items. 
        Unilateral controls alone may impede access to United States 
        sources of supply without affecting the ability of countries to 
        obtain controlled items elsewhere. Moreover, unilateral 
        controls generally permit foreign competitors to serve markets 
        the United States Government denies to United States firms and 
        workers, thus impairing the reliability of United States 
        suppliers in comparison with their foreign competitors. At the 
        same time, the need to lead the international community or 
        overriding national security or foreign policy interests may 
        justify unilateral controls in specific cases.
            (9) The United States recognizes the importance of 
        comprehensive enforcement measures to maximize the 
        effectiveness of multilateral controls.
            (10) The United States export control system must not be 
        overly restrictive or bureaucratic, or undermine the 
        competitive position of United States industry. The export 
        control system must be efficient, responsive, transparent, and 
        effective.
            (11) Export restrictions that negatively affect the United 
        States industrial base may ultimately weaken United States 
        military capabilities and lead to dependencies on foreign 
        sources for key components.
            (12) Minimization of restrictions on exports of 
        agricultural commodities and products is of critical importance 
        to the maintenance of a sound agricultural sector, to a 
        positive contribution to the balance of payments, to reducing 
        the level of Federal expenditures for agricultural support 
        programs, and to United States cooperation in efforts to 
        eliminate malnutrition and world hunger.
            (13) Minimization of restrictions on the export of 
        information technology products and services is of critical 
        importance to United States leadership in removing obstacles to 
        the effective development of a superior global information 
        infrastructure and the new jobs and markets, increased trade 
        and information flows, improved national security, and new 
        tools for the improvement of the quality of life for people 
        globally that will be created.
            (14) The United States should play a leading role in 
        promoting transparency and responsibility with regard to the 
        transfers of conventional armaments and sensitive dual-use 
        goods and technologies.

SEC. 103. POLICY STATEMENT.

    It is the policy of the United States to do the following:
            (1) To stem the proliferation of weapons of mass 
        destruction, and the means to deliver them, and other 
        significant military capabilities by--
                    (A) leading international efforts to control the 
                proliferation of chemical and biological weapons, 
                nuclear explosive devices, missile delivery systems, 
                and other significant military capabilities;
                    (B) controlling involvement of United States 
                persons in, and contributions by United States persons 
                to, foreign programs intended to develop weapons of 
                mass destruction, missiles, and other significant 
                military capabilities, and the means to design, test, 
                develop, produce, stockpile, or use them; and
                    (C) implementing international treaties or other 
                agreements or arrangements concerning controls on 
                exports of designated items, reports on the production, 
                processing, consumption, and exports and imports of 
                such items, and compliance with verification programs.
            (2) To restrict the export of items--
                    (A) that would significantly contribute to the 
                military potential of countries so as to prove 
                detrimental to the national security of the United 
                States or its allies; or
                    (B) where necessary to further significantly the 
                foreign policy of the United States or to fulfill its 
                declared international commitments.
            (3) To--
                    (A) minimize uncertainties in export control 
                policy; and
                    (B) encourage trade with all countries with which 
                the United States has diplomatic or trading relations, 
                except those countries with which such trade has been 
                determined by the President to be against the national 
                interest.
            (4) To restrict export trade when necessary to protect the 
        domestic economy from the excessive drain of scarce materials 
        and to reduce the serious inflationary impact of foreign 
        demand.
            (5) To further increase the reliance of the United States 
        upon multilateral coordination of controls through effective 
        control regimes that maintain lists of controlled items that 
        are truly critical to the control objectives, strive to 
        increase membership to include all relevant countries, maintain 
        common criteria and procedures for licensing, and harmonize 
        member countries' licensing practices. It is the policy of the 
        United States that multilateral controls are the best means of 
        achieving the control objectives of the United States.
            (6) To impose unilateral controls only when it is necessary 
        to further significantly the national security or foreign 
        policy of the United States, and only after full consideration 
        of the economic impact of the controls and their effectiveness 
        in achieving their intended objectives.
            (7) To make all licensing determinations in a timely manner 
        so undue delays in the licensing process will not cause a 
        United States person to lose an export sale.
            (8) To use export controls to deter and punish acts of 
        international terrorism and to encourage other countries to 
        take immediate steps to prevent the use of their territories or 
        resources to aid, encourage, or give sanctuary to those persons 
        involved in directing, supporting, or participating in acts of 
        international terrorism. To this end, consistent with the 
        policies of this section and the provisions of this title, the 
        United States should, by restricting exports to countries that 
        have violated international norms of behavior by repeatedly 
        supporting acts of international terrorism, distance itself 
        from those countries.
            (9)(A) To counteract restrictive trade practices or 
        boycotts fostered or imposed by foreign countries against other 
        countries friendly to the United States or against any United 
        States person.
            (B) To encourage and, in specified cases, require United 
        States persons engaged in the export of commodities, 
        technology, and other information to refuse to take actions, 
        including furnishing information or entering into or 
        implementing agreements, which have the effect of furthering or 
        supporting the restrictive trade practices or boycotts fostered 
        or imposed by any foreign country against a country friendly to 
        the United States or against any United States person.
            (10) To streamline export control functions and increase 
        administrative accountability, and thereby better serve the 
        exporting public by reducing and eliminating overlapping, 
        conflicting, and inconsistent regulatory burdens.
            (11) To minimize restrictions on the export of agricultural 
        commodities and products.
            (12) To minimize restrictions on the export of information 
        technology products and services as part of a flexible 
        regulatory environment that can keep pace with the rapid 
        technological changes necessary to realize the full economic, 
        societal, and national security benefits of United States 
        leadership in the development of a superior global information 
        infrastructure.
            (13) To cooperate with other countries to promote greater 
        transparency and responsibility with regard to the transfers of 
        armaments and sensitive goods and technologies, both for the 
        purpose of developing common understandings of the risks to 
        international peace and regional security associated with the 
        transfers of such items and to coordinate national control 
        policies to combat those risks.
            (14) To enhance the national security and nonproliferation 
        interests of the United States. To this end and consistent with 
        the other policies of this section and the provisions of this 
        title, the United States will use export controls when 
        necessary to ensure that access to weapons of mass destruction, 
        missile delivery systems, and other significant military 
        capabilities is restricted. While the multilateral 
        nonproliferation regimes will be the primary instruments 
        through which the United States will pursue its 
        nonproliferation goals, it may also, consistent with the 
        policies of this section and the provisions of this title, take 
        unilateral action.
            (15) To promote international peace, stability, and respect 
        for fundamental human rights. The United States may establish 
        controls on exports that contribute to the military 
        capabilities of countries that threaten international peace or 
        stability or to countries that abuse the fundamental rights of 
        their citizens, or to promote other important foreign policy 
        objectives of the United States, consistent with the policies 
        of this section and the provisions of this title.

SEC. 104. GENERAL PROVISIONS.

    (a) Types of Licenses.--Under such conditions as the Secretary may 
impose, consistent with the provisions of this title, the Secretary may 
require any type of license appropriate to the effective and efficient 
implementation of this title, including the following:
            (1) Specific exports.--A license authorizing a specific 
        export.
            (2) Multiple exports.--Licenses authorizing multiple 
        exports, issued pursuant to an application by the exporter, in 
        lieu of a license for each such export. Licenses under this 
        paragraph shall be designed to encourage and acknowledge 
        exporters' internal control programs for ensuring compliance 
        with the terms of the license.
    (b) United States Commodity Control Index.--
            (1) In general.--The Secretary shall establish and 
        maintain, in consultation with the Secretary of Defense and the 
        heads of other appropriate departments and agencies, a United 
        States Commodity Control Index specifying the license 
        requirements under this title that are applicable to the items 
        on the list.
            (2) Contents.--The control index shall--
                    (A) consist of a multilateral control list of items 
                on which export controls are imposed under section 105, 
                an emergency control list of items on which export 
                controls are imposed under section 106, and a short 
                supply control list of commodities on which export 
                controls are imposed under section 107;
                    (B) include, as part of the multilateral and 
                emergency control lists, those items identified 
                pursuant to section 111(a);
                    (C) for each item on the control index, specify 
                with particularity the performance (where applicable) 
                and other identifying characteristics of the item and 
                provide a rationale for why the item is on the control 
                list;
                    (D) identify countries, and, as appropriate, end 
                uses or end users, including specific projects and end 
                users of concern, cross-referenced with the list of 
                commodities and technology on which export controls are 
                imposed; and
                    (E) be sufficiently specific and clear as to guide 
                exporters and licensing officers in determinations of 
                licensing requirements under this title.
    (c) Denied or Debarred Parties, Sanctioned Parties, Blocked 
Persons, Specially Designated Nationals, and Other Parties Presenting 
Unacceptable Risks of Diversion.--
            (1) Denied or debarred parties, sanctioned parties, blocked 
        persons, and specially designated nationals.--The President 
        shall ensure that an official list is published semiannually in 
        the Federal Register of all parties denied or debarred from 
        export privileges under this title or under the Arms Export 
        Control Act, all parties sanctioned for prohibited 
        proliferation activity under this title or other statutes, and 
        all blocked persons and specially designated nationals. For 
        purposes of this paragraph, a ``blocked person'' or ``specially 
        designated national'' is a person or entity so designated by 
        the President or the Secretary of the Treasury under the 
        Trading With the Enemy Act, or the International Emergency 
        Economic Powers Act, with whom transactions are prohibited on 
        account of the relationship of that person or entity with a 
        country, organization, or activity against which sanctions are 
        imposed under either such Act. Promptly after any person is 
        designated a ``blocked person'' or ``specially designated 
        national'', the Secretary of the Treasury shall publish such 
        designation in the Federal Register.
            (2) Other parties.--The Secretary shall maintain a list of 
        parties for whom licenses under this title will be 
        presumptively denied.
    (d) Delegation of Authority.--Subject to the provisions of this 
title, the President may delegate the power, authority, and discretion 
conferred upon the President by this title to such departments, 
agencies, and officials of the Government as the President considers 
appropriate, except that no authority under this title may be delegated 
to, or exercised by, any official of any department or agency the head 
of which is not appointed by the President, by and with the advice and 
consent of the Senate. The President may not delegate or transfer his 
power, authority, or discretion to overrule or modify any 
recommendation or decision made by the Secretary, the Secretary of 
Defense, or the Secretary of State under this title and may not 
delegate the authority under section 106(a)(4).
    (e) Notification of the Public; Consultation With Business.--The 
Secretary shall keep the public fully apprised of changes in export 
control policy and procedures instituted in conformity with this title 
with a view to encouraging trade. The Secretary shall consult regularly 
with representatives of a broad spectrum of enterprises, labor 
organizations, and citizens interested in or affected by export 
controls, in order to obtain their views on United States export 
control policy and the foreign availability of items subject to 
controls.
    (f) Export Advisory Committees.--
            (1) Appointment.--Upon his or her own initiative or upon 
        the written request of representatives of a substantial segment 
        of any industry which produces any items subject to export 
        controls under this title or under the International Emergency 
        Economic Powers Act, or being considered for such controls, the 
        Secretary shall appoint export advisory committees with respect 
        to any such items. Each such committee shall consist of 
        representatives of United States industry and Government, 
        including the Department of Commerce and other appropriate 
        departments and agencies of the Government. The Secretary shall 
        permit the widest possible participation by the business 
        community on the export advisory committees.
            (2) Functions.--Export advisory committees appointed under 
        paragraph (1) shall advise and assist the Secretary, and any 
        other department, agency, or official of the Government 
        carrying out functions under this title, on actions (including 
        all aspects of controls imposed or proposed) designed to carry 
        out the policies of this title concerning the items with 
        respect to which such export advisory committees were 
        appointed. Such committees, where they have expertise in such 
        matters, shall be consulted on questions involving--
                    (A) technical matters,
                    (B) worldwide availability and actual utilization 
                of production technology,
                    (C) licensing procedures which affect the level of 
                export controls applicable to any items,
                    (D) revisions of the multilateral control list (as 
                provided in section 105(g)), including proposed 
                revisions of multilateral controls in which the United 
                States participates,
                    (E) the issuance of regulations,
                    (F) the impact and interpretation of existing 
                regulations,
                    (G) processes and procedures for review of licenses 
                and policy,
                    (H) any other questions relating to actions 
                designed to carry out this title, and
                    (I) the operation and conduct of international 
                business transactions.
        Nothing in this subsection shall prevent the United States 
        Government from consulting, at any time, with any person 
        representing an industry or the general public, regardless of 
        whether such person is a member of an export advisory 
        committee. Members of the public shall be given a reasonable 
        opportunity, pursuant to regulations prescribed by the 
        Secretary, to present evidence to such committees.
            (3) Reimbursement of expenses.--Upon the request of any 
        member of any export advisory committee appointed under 
        paragraph (1), the Secretary may, if the Secretary determines 
        it to be appropriate, reimburse such member for travel, 
        subsistence, and other necessary expenses incurred by such 
        member in connection with the duties of such member.
            (4) Chairperson.--Each export advisory committee appointed 
        under paragraph (1) shall elect a chairperson, and shall meet 
        at least every 3 months at the call of the chairperson, unless 
        the chairperson determines, in consultation with the other 
        members of the committee, that such a meeting is not necessary 
        to achieve the purposes of this subsection. Each such committee 
        shall be terminated after a period of 2 years, unless extended 
        by the Secretary for additional periods of 2 years each. The 
        Secretary shall consult with each such committee on such 
        termination or extension of that committee.
            (5) Access to information.--To facilitate the work of the 
        export advisory committees appointed under paragraph (1), the 
        Secretary, in conjunction with other departments and agencies 
        participating in the administration of this title, shall 
        disclose to each such committee adequate information, 
        consistent with national security, pertaining to the reasons 
        for the export controls which are in effect or contemplated for 
        the items or policies for which that committee furnishes 
        advice. Information provided by the export advisory committees 
        shall not be subject to disclosure under section 552 of title 
        5, United States Code, and such information shall not be 
        published or disclosed unless the Secretary determines that the 
        withholding thereof is contrary to the national interest.
    (g) Development and Review of the Control Index.--
            (1) In general.--
                    (A) Consistent with the general guidance of the 
                Export Control Policy Committee established in section 
                114(c), the Secretary of Defense and the heads of other 
                appropriate departments and agencies may identify and 
                recommend to the Secretary--
                            (i) commodities and technology for 
                        inclusion on, or deletion from, the 
                        multilateral and emergency control lists; and
                            (ii) the licensing requirements that should 
                        or should not apply to these commodities and 
                        technology.
                    (B) The Secretary of Defense shall have primary 
                responsibility for identifying commodities and 
                technologies that are critical to the design, 
                development, test, production, stockpiling, or use of 
                weapons of mass destruction and other military 
                capabilities, including nuclear, biological, and 
                chemical weapons, and manned and unmanned vehicles 
                capable of delivering such weapons, in determining 
                recommendations for inclusion of items on the control 
                index.
                    (C) If the Secretary of Defense, the Secretary of 
                State, or the Secretary of Energy disagrees with the 
                decision of the Secretary regarding the inclusion or 
                deletion, or licensing requirements of, any commodity 
                or technology, the Secretary of Defense, State, or 
                Energy (as the case may be) may, within 30 days after 
                the Secretary makes the decision, appeal the 
                Secretary's decision to the President in writing, but 
                only on the basis of the specific provisions of this 
                title. If the Secretary of Defense, the Secretary of 
                State, or the Secretary of Energy fails to appeal a 
                decision of the Secretary in accordance with the 
                preceding sentence, he or she shall be deemed to have 
                no objection to the decision. The President shall 
                resolve a disagreement under this subsection not later 
                than 30 days after the appeal is made under this 
                paragraph.
            (2) Negotiations.--The Secretary of State, in consultation 
        with appropriate departments and agencies, shall be responsible 
        for conducting negotiations with other countries regarding 
        multilateral arrangements for restricting the export of items 
        to carry out the policies of this title. All appropriate 
        departments and agencies shall develop initial technical 
        parameters and product definitions in connection with the 
        development of proposals within the United States Government to 
        be made to multilateral regimes, in consultation with the 
        export advisory committees as provided in paragraph (3).
            (3) Consultations with export advisory committees.--The 
        Secretary shall consult with the appropriate export advisory 
        committee appointed under this section with respect to changes 
        in the control index, and such export advisory committee may 
        submit recommendations to the Secretary with respect to such 
        changes. The Secretary shall consider the recommendations of 
        the export advisory committee and shall inform the committee of 
        the disposition of its recommendations. The Secretary shall 
        also seek comments and recommendations from the public in 
        connection with changes in the control index. To the maximum 
        extent practicable and consistent with the conduct of 
        international negotiations, such comments and recommendations 
        should be taken into consideration in the development of United 
        States Government proposals and positions to be taken in 
        multilateral regimes.
    (h) Right of Export.--No authority or permission to export may be 
required under this title, or under regulations issued under this 
title, except to carry out the policies set forth in section 103.
    (i) International Obligations Under Treaties.--Notwithstanding any 
other provision of this title containing limitations on authority to 
control exports, the Secretary, in consultation with the Secretary of 
State, may impose controls on exports to a particular country or 
countries in order to fulfill obligations of the United States under 
resolutions of the United Nations and under treaties to which the 
United States is a party. The Secretary may regulate domestic and 
foreign conduct consistent with the policies of such United Nations 
resolutions, treaties, and other international agreements. Such 
authority shall include, but not be limited to, authority to prohibit 
activity such as financing, contracting, providing services, or 
employment, to deny access to items in the United States and abroad, to 
conduct audits of records and inspections of facilities, to compel 
reports, and to curtail travel.
    (j) Fees.--No fee may be charged in connection with the submission 
or processing of an export license application under this title.

SEC. 105. MULTILATERAL CONTROLS.

    (a) Authority.--
            (1) In general.--In order to carry out the policies set 
        forth in paragraphs (1), (2), (5), (13), (14), and (15) of 
        section 103, the President may, in accordance with this 
        section, prohibit, curtail, or require the provision of 
        information regarding, the export of any commodities, 
        technology, or other information subject to the jurisdiction of 
        the United States, or exported by any person subject to the 
        jurisdiction of the United States, in order to implement 
        multilateral export control regimes. The authority under this 
        paragraph shall include, but not be limited to, the authority 
        to regulate domestic and foreign conduct, to prohibit activity 
        such as financing, contracting, providing services, or 
        employment, to deny access to items in the United States and 
        abroad, to conduct audits of records and inspections of 
        facilities, and to compel reports. The authority granted by 
        this subsection may not be exercised to impose unilateral 
        controls.
            (2) Exercise of authority.--The authority granted by this 
        subsection shall be implemented by the Secretary, in 
        consultation with appropriate departments and agencies.
            (3) Consistency with export control regimes.--Any provision 
        of this title that provides that no authority or permission to 
        export may be required under this title shall not apply to the 
        extent that such a provision is inconsistent with an 
        international commitment of the United States under a 
        multilateral export control regime.
    (b) Multilateral Control List.--The Secretary shall, in 
consultation with appropriate departments and agencies as provided in 
section 104(g), designate as part of the control index, a multilateral 
control list, comprised of the items on which export controls are in 
effect under this section.
    (c) Export Licensing Policies.--The President shall ensure that 
steps are taken to increase the degree to which the licensing 
requirements of other export regime members are harmonized with the 
licensing requirements maintained by the Secretary in controlling items 
under this section.
    (d) Multilateral Control Regimes.--
            (1) Policy.--In order to carry out the policies set forth 
        in section 103, the Secretary of State, in consultation with 
        appropriate departments and agencies, should seek multilateral 
        arrangements that are intended to secure effective achievement 
        of these policies and, in so doing, also establish fairer and 
        more predictable competitive opportunities for United States 
        exporters.
            (2) Standards for national systems.--In the establishment 
        and maintenance of multilateral regimes, the Secretary of 
        State, in consultation with appropriate departments and 
        agencies, shall take steps to attain the cooperation of members 
        of the regimes in the effective implementation of export 
        control systems. Such systems should contain the following 
        elements:
                    (A) National laws providing enforcement 
                authorities, civil and criminal penalties, and statutes 
                of limitations sufficient to deter potential violations 
                and punish violators.
                    (B) A program to evaluate export license 
                applications that includes sufficient technical 
                expertise to assess the licensing status of exports and 
                ensure the reliability of end users.
                    (C) An enforcement mechanism that provides 
                authority for trained enforcement officers to 
                investigate and prevent illegal exports.
                    (D) A system of export control documentation to 
                verify the movement of items.
                    (E) Procedures for the coordination and exchange of 
                information concerning licensing, end users, and 
                enforcement.
                    (F) Adequate national resources devoted to carrying 
                out subparagraphs (A) through (E).
            (3) Standards for multilateral regimes.--In the 
        establishment and maintenance of multilateral regimes, the 
        Secretary of State, in consultation with appropriate 
        departments and agencies, should seek, consistent with the 
        policies set forth in section 103, the following features for 
        the multilateral control regimes in which the United States 
        participates:
                    (A) Full membership.--Achieve membership of all 
                supplier countries whose policies and activities are 
                consistent with the objectives and membership criteria 
                of the multilateral regime.
                    (B) Effective enforcement and compliance.--Promote 
                enforcement and compliance with the rules and 
                guidelines of the members of the regime through 
                maintenance of an effective control list.
                    (C) Public understanding.--Enhance public 
                understanding of each regime's purpose and procedures.
                    (D) Effective implementation procedures.--Achieve 
                procedures for effective implementation of the rules 
                and guidelines of the regime through uniform and 
                consistent interpretations of export controls agreed to 
                by the governments participating in the regime.
                    (E) Enhanced cooperation among regime members.--
                Reach agreement to enhance cooperation among members of 
                the regime in obtaining the agreement of governments 
                outside the regime to restrict the export of items 
                controlled by the regime, to establish an ongoing 
                mechanism in the regime to coordinate planning and 
                implementation of export control measures related to 
                such agreements, and to remove items from the list of 
                items controlled by the regime if the control of such 
                items no longer serves the objectives of the members of 
                the regime.
                    (F) Periodic high-level meetings.--Conduct periodic 
                meetings of high-level representatives of participating 
                governments for the purpose of coordinating export 
                control policies and issuing policy guidance to members 
                of the regime.
                    (G) Common list of controlled items.--Reach 
                agreement on a common list of items controlled by the 
                regime.
                    (H) Treatment of certain countries.--Prevent the 
                export or diversion of the most sensitive items to 
                countries whose activities are threatening to the 
                national security of the United States or its allies.
                    (I) Disclosure of nonproprietary information.--
                Promote transparency and timely disclosure of 
                nonproprietary information with respect to the 
                transfers of sensitive dual-use commodities and 
                technologies, when appropriate, for the purpose of 
                developing common understandings of the risks to 
                international peace and regional security associated 
                with such transfers and to coordinate national control 
                policies to combat those risks.
    (e) Incentives for Partnership.--Consistent with the policies of 
this title and consistent with the objectives, rules, and guidelines of 
the individual regime--
            (1) the Secretary, in consultation with appropriate 
        departments and agencies, may provide for exports free of 
        license requirements to and among members of a multilateral 
        regime for items subject to controls under such a multilateral 
        regime; and
            (2) the Secretary, in consultation with appropriate 
        departments and agencies, may adjust licensing policies with 
        respect to a particular country or entity for access to items 
        controlled under this title to the extent of the adherence of 
        that country or entity to the export control policies of this 
        section.
Actions by the Secretary under paragraphs (1) and (2) shall be 
consistent with the requirements of section 111(a)(1)(C).
    (f) Transparency of Multilateral Control Regimes.--
            (1) Publication of information on each existing regime.--
        Within 6 months after the date of the enactment of this Act, 
        the Secretary shall, to the extent doing so is not inconsistent 
        with arrangements in multilateral export control regimes, 
        publish in the Federal Register the following information with 
        respect to each multilateral control regime existing on the 
        date of the enactment of this Act:
                    (A) Purposes of the control regime.
                    (B) Members of the regime.
                    (C) Licensing policy.
                    (D) Items subject to the controls under the regime, 
                together with all public notes, understandings, and 
                other aspects of the agreement of the regime, and all 
                changes thereto.
                    (E) Any countries, end uses, or end users that are 
                subject to the controls.
                    (F) Rules of interpretation.
                    (G) Major policy actions.
                    (H) The rules and procedures of the regime for 
                establishing and modifying any matter described in 
                subparagraphs (A) through (G) and for reviewing export 
                license applications.
            (2) New regimes.--Within 2 months after the United States 
        joins or organizes a new export control regime, the Secretary 
        shall, to the extent doing so is not inconsistent with 
        arrangements in the regime, publish the information described 
        in subparagraphs (A) through (H) of paragraph (1) with respect 
        to that regime.
            (3) Publication of changes.--Within 2 months after the 
        applicable regime adopts any changes in the information 
        published under this subsection, the Secretary shall, to the 
        extent doing so is not inconsistent with arrangements in the 
        regime, publish such changes in the Federal Register.
    (g) Review of Controlled Items.--
            (1) In general.--Under the policy guidance of the Export 
        Control Policy Committee established in section 114(c), and 
        consistent with the procedures in section 104(g), the Secretary 
        shall review all items on the multilateral control list 
        maintained under subsection (b) at least every 2 years, except 
        that the Secretary shall review annually whether the policy set 
        forth in section 103(12) is being achieved. At the conclusion 
        of each review, the Secretary shall decide whether to maintain 
        or remove items from the multilateral control list, maintain, 
        change, or eliminate the specifications, performance 
        thresholds, or licensing requirements on items on the list, or 
        add items to the list.
            (2) Considerations.--In conducting the review, the 
        Secretary shall--
                    (A) consult with the Secretary of Defense 
                concerning militarily critical technologies;
                    (B) consult with the appropriate export advisory 
                committees appointed under section 104(f) and consider 
                recommendations of such committees with respect to 
                proposed changes in the multilateral control list;
                    (C) consider whether controlled items or their 
                equivalent are so widely available in the United States 
                (in terms of quantity, cost, and means of sale and 
                delivery) that the requirement for a license is 
                ineffective in achieving the purpose of the control;
                    (D) consider whether the differences between the 
                export controls of the United States and that of 
                governments of foreign suppliers of competing items 
                effectively has placed or will place the United States 
                exporter at a significant commercial disadvantage with 
                respect to its competitors abroad, and has placed, or 
                will place, employment in the United States in 
                jeopardy;
                    (E) consider the results of determinations made 
                under section 114(k); and
                    (F) consider comments received pursuant to the 
                notice of review provided under paragraph (3)(A).
            (3) Procedures.--
                    (A) Notice of review.--Before beginning each review 
                under this subsection, the Secretary shall publish a 
                notice of that review in the Federal Register and shall 
                provide a 30-day period for comments and submission of 
                data, including by exporters and other interested 
                parties.
                    (B) Proposals to export control regimes.--If a 
                revision to the multilateral control list or to a 
                licensing requirement under this paragraph is 
                inconsistent with the control lists, guidelines, or the 
                licensing requirements of, an export control regime, 
                the Secretary of State shall propose such revision to 
                that regime. Such revision shall become effective only 
                to the extent such revision is agreed to by the export 
                control regime.
                    (C) Publication of revisions.--The Secretary shall 
                publish in the Federal Register any revisions in the 
                list, with an explanation of the reasons for the 
                revisions.

SEC. 106. EMERGENCY CONTROLS.

    (a) Authority.--
            (1) In general.--In order to carry out the policy set forth 
        in paragraphs (1), (2), (6), (8), (14), and (15) of section 
        103, the President may, in accordance with the provisions of 
        this section, unilaterally prohibit, curtail, or require the 
        provision of information regarding the export of any commodity, 
        technology, or other information subject to the jurisdiction of 
        the United States or exported by any person subject to the 
        jurisdiction of the United States. The authority under this 
        paragraph shall include, but not be limited to, the authority 
        to regulate domestic and foreign conduct, to prohibit activity 
        such as financing, contracting, providing services, or 
        employment, to deny access to items in the United States and 
        abroad, to conduct audits of records and inspections of 
        facilities, and to compel reports.
            (2) Exercise of authority.--The authority contained in this 
        section shall be exercised by the Secretary, in consultation 
        with the Secretary of State, the Secretary of Defense, and such 
        other departments and agencies as the President considers 
        appropriate, and consistent with the procedures in section 
        104(g).
            (3) Expiration of controls.--
                    (A) In general.--Any controls imposed under this 
                section shall expire 12 months after they are imposed, 
                unless they are terminated earlier by the President or 
                unless they are extended under this section, except 
                that such controls may be adopted as multilateral 
                controls under section 105 or included in an embargo 
                that is imposed by the President under the 
                International Emergency Economic Powers Act, the 
                Trading with the Enemy Act, or other provision of law 
                other than this title. Any extension or subsequent 
                extension of the controls under this section shall be 
                for a period of not more than 1 year each. The controls 
                shall expire at the end of each such extension unless 
                they are terminated earlier by the President or unless 
                they are further extended under this section, except 
                that such controls may be adopted as multilateral 
                controls under section 105 or included in an embargo 
                described in the first sentence of this subparagraph.
                    (B) Exception for multilateral agreements.--
                Subparagraph (A) shall not apply to controls imposed by 
                the President in order to fulfill obligations of the 
                United States under resolutions of the United Nations 
                or under treaties to which the United States is a 
                party. If such a resolution or treaty ceases to be in 
                effect, controls imposed by the President pursuant to 
                such resolution or treaty shall immediately cease to be 
                in effect.
            (4) Criteria.--Controls may be imposed, expanded, or 
        extended under this section only if the President determines 
        that--
                    (A) the controls are necessary to further 
                significantly the nonproliferation, national security, 
                or foreign policies of the United States provided in 
                section 103, the objective of the controls is in the 
                overall national interest of the United States, and 
                reasonable alternative means to the controls are not 
                available;
                    (B) the controls are likely to make substantial 
                progress toward achieving the intended purpose of--
                            (i) changing, modifying, or constraining 
                        the undesirable conduct or policies of the 
                        country to which the controls apply;
                            (ii) denying access by the country to 
                        controlled items from all sources;
                            (iii) establishing multilateral cooperation 
                        to deny the country access to controlled items 
                        from all sources; or
                            (iv) denying exports or assistance that 
                        significantly contributes to the proliferation 
                        of weapons of mass destruction or other 
                        important military capabilities, terrorism, or 
                        human rights abuses;
                    (C) the proposed controls are compatible with the 
                foreign policy objectives of the United States and with 
                overall United States policy toward the country to 
                which the controls apply;
                    (D) the reaction of other countries to the 
                imposition, expansion, or extension of such export 
                controls by the United States is not likely to render 
                the controls ineffective in achieving the intended 
                purpose or to be counter-productive to United States 
                policy interests;
                    (E) the effect of the proposed controls on the 
                export performance of the United States, the 
                competitive position of the United States as a supplier 
                of items, or on the economic well-being of individual 
                United States companies and their employees and 
                communities does not exceed the benefit to the United 
                States foreign policy, nonproliferation, or national 
                security interests; and
                    (F) the United States has the ability to enforce 
                the proposed controls effectively.
    (b) Consultation With Industry.--The Secretary shall consult with 
and seek advice from affected United States industries and export 
advisory committees appointed under section 104(f) before the 
imposition, expansion, or extension of any export control under this 
section.
    (c) Consultation With Other Countries.--When expanding or extending 
export controls under this section (unless such action is taken under 
subsection (a)(3)(B)), the Secretary of State, in consultation with 
appropriate departments and agencies, shall, at the earliest 
appropriate opportunity, consult with the countries with which the 
United States maintains export controls cooperatively, and with other 
countries, as appropriate, to advise them of the reasons for the action 
and to urge them to adopt similar controls.
    (d) Consultations With the Congress.--
            (1) Consultations.--The Secretary may impose, expand, or 
        extend export controls under this section only after 
        consultation with the Congress, including the Committee on 
        International Relations of the House of Representatives and the 
        Committee on Banking, Housing, and Urban Affairs of the Senate.
            (2) Reports.--The Secretary may not impose or expand 
        controls under subsection (a) until the Secretary has submitted 
        to the Congress a report--
                    (A) addressing each of the criteria set forth in 
                subsection (a)(4);
                    (B) specifying the purpose of the controls;
                    (C) describing the nature, the subjects, and the 
                results of, or plans for, the consultation with 
                industry under subsection (b) and with other countries 
                under subsection (c);
                    (D) specifying the nature and results of any 
                alternative means attempted to achieve the objectives 
                of the controls, or the reasons for imposing or 
                expanding the controls without attempting any such 
                alternative means; and
                    (E) describing the availability from other 
                countries of items comparable to the items subject to 
                the controls, and describing the nature and results of 
                the efforts made to secure the cooperation of foreign 
                governments in controlling the foreign availability of 
                such comparable items.
        Such report shall also indicate how such controls will further 
        significantly the policies of the United States as set forth in 
        section 103 or will further its declared international 
        obligations.
    (e) Seeking Multilateral Support for Unilateral Controls.--The 
Secretary of State, in consultation with appropriate departments and 
agencies, shall have a continuing duty to seek support for controls 
imposed under this section by other countries and by effective 
multilateral control regimes.
    (f) Procedures and Limitations on Emergency Controls.--
            (1) Cessation of emergency controls.--
                    (A) In general.--Controls imposed under this 
                section on commodities, technology, or other 
                information shall cease to be in effect immediately 
                upon--
                            (i) the imposition of similarly restrictive 
                        controls under section 105 on the same 
                        commodities, technology, or information to the 
                        country or end user, or for the end use, with 
                        respect to which the controls were imposed 
                        under this section; or
                            (ii) the imposition of an embargo, under 
                        the International Emergency Economic Powers 
                        Act, the Trading with the Enemy Act, or other 
                        provision of law, on exports to, and imports 
                        from the country with respect to which the 
                        controls were imposed under this section.
                    (B) Conversion to multilateral agreements.--If the 
                President imposes controls on commodities, technology, 
                or other information to a country or end user, or for 
                an end use, under this section in order to fulfill 
                obligations of the United States under resolutions of 
                the United Nations or under a treaty to which the 
                United States is a party, any equivalent controls 
                imposed prior thereto under this section on the same 
                commodities, technology, or information to the same 
                country or end user, or for the same end use, shall 
                immediately cease to be in effect.
            (2) Limitations on reimposition.--Controls which have 
        ceased to be in effect under subsection (a)(3), and which have 
        not been extended under subsection (g), may not be reimposed by 
        the President under subsection (a) for a period of 6 months 
        beginning on the date on which the original controls expire, 
        unless the President determines that reimposition of controls 
        is warranted due to significant changes in circumstances since 
        the expiration of the controls.
    (g) Extension of Emergency Controls.--
            (1) Report.--If the President decides to extend controls 
        imposed under subsection (a), which are due to expire under 
        subsection (a)(3), the President shall, not later than 30 
        calendar days before the expiration of such controls, transmit 
        to the Congress a report on the proposed extension, setting 
        forth the reasons for the proposed extension in detail and 
        specifying the period of time, which may not exceed 1 year, for 
        which the controls are proposed to be extended. In particular, 
        such report shall--
                    (A) contain determinations by the President--
                            (i) that the controls are likely to 
                        continue to make substantial progress toward 
                        achieving the intended purpose of--
                                    (I) changing, modifying, or 
                                constraining the undesirable conduct or 
                                policies of the country to which the 
                                controls apply;
                                    (II) denying access by the country 
                                to controlled items from all sources;
                                    (III) establishing multilateral 
                                cooperation to deny the country access 
                                to controlled items from all sources; 
                                or
                                    (IV) denying exports or assistance 
                                that significantly contributes to the 
                                proliferation of weapons of mass 
                                destruction or other important military 
                                capabilities, terrorism, or human 
                                rights abuses;
                            (ii) that the impact of the controls has 
                        been compatible with the foreign policy 
                        objectives of the United States and with 
                        overall United States policy toward the 
                        controlled country;
                            (iii) that the reaction of other countries 
                        to the imposition or expansion of the controls 
                        by the United States has not rendered the 
                        controls ineffective in achieving the intended 
                        purpose and have not been counterproductive to 
                        United States policy interests;
                            (iv) that the effect of the controls on the 
                        export performance of the United States, the 
                        competitive position of the United States as a 
                        supplier of items, and the economic well-being 
                        of individual United States companies and their 
                        employees and communities has not exceeded the 
                        benefit to the United States foreign policy, 
                        nonproliferation, or national security 
                        interests; and
                            (v) that the United States has enforced the 
                        controls effectively.
            (2) Further extensions of controls.--If, upon the 
        expiration of the controls extended under this subsection, the 
        President determines that a further extension of emergency 
        controls for an additional period of time of not more than 1 
        year is necessary, paragraph (1) shall apply to such further 
        extension.
    (h) Effect on Other Authority.--
            (1) Embargo authority.--Nothing in this section shall be 
        construed to limit the authority of the President to impose an 
        embargo on exports to, and imports from, a specific country 
        under the International Emergency Economic Powers Act, the 
        Trading with the Enemy Act, or other provision of law (other 
        than this title). In any case in which the President exercises 
        any such authority to impose an embargo, the requirements of 
        this section shall not apply for so long as such embargo is in 
        effect.
            (2) Effect on existing embargoes.--(A) Nothing in this 
        section affects the authorities conferred upon the President by 
        section 5(b) of the Trading with the Enemy Act, which were 
        being exercised with respect to a country on July 1, 1977, as a 
        result of a national emergency declared by the President before 
        that date, and are being exercised on the date of the enactment 
        of this Act.
            (B) Nothing in this section affects the authorities 
        conferred upon the President by the International Economic 
        Powers Act or other provision of law (other than the Export 
        Administration Act of 1979), which were being exercised with 
        respect to a country before the date of the enactment of this 
        Act as a result of a national emergency declared by the 
        President before that date, and are being exercised with 
        respect to such country on such date of enactment.
    (i) Countries Supporting International Terrorism.--
            (1) Prohibition on exports.--(A) No export described in 
        subparagraph (B) may be made to any country the government of 
        which the Secretary of State has determined has repeatedly 
        provided support for acts of international terrorism.
            (B) The exports referred to in subparagraph (A) are--
                    (i) of any commodity or technology the export of 
                which is controlled under this title pursuant to the 
                Wassenaar Arrangement, the Missile Technology Control 
                Regime, or the Australia Group, or controlled under 
                this title pursuant to section 309(c) of the Nuclear 
                Non-Proliferation Act of 1978,
                    (ii) of any other commodity or technology the 
                export of which is controlled under this title pursuant 
                to multilateral export control regimes in which the 
                United States participates, and
                    (iii) of any commodity or technology which could 
                make a significant contribution to the military 
                potential of a country described in subparagraph (A), 
                including its military logistics capability, or could 
                enhance the ability of such country to support acts of 
                international terrorism,
        other than food, medicine, or medical supplies that the 
        President determines will be used only for humanitarian 
        purposes. An individual validated license shall be required for 
        the export under this subparagraph of any such food, medicine, 
        or medical supplies.
            (C) Subsections (a)(3) and (b) shall not apply to exports 
        prohibited or restricted under this subsection.
            (D)(i) The Secretary shall maintain a list of commodities 
        and technology described in subparagraph (B)(iii). The 
        Secretary shall review the list of items on that list at least 
        annually. At the conclusion of the review, the Secretary shall 
        determine whether to remove items from the list, change the 
        specifications of items on the list, or add items to the list, 
        in order to ensure that the items on the list meet the 
        requirements of subparagraph (B)(iii).
            (ii) The procedures set forth in subparagraphs (A) and (C) 
        of section 105(g)(3) shall apply to reviews under clause (i) of 
        the list of items described in subparagraph (B)(iii) to the 
        same extent as such section applies to reviews of the control 
        list under section 105(g).
            (2) Notification of congress of licenses issued.--The 
        Secretary and the Secretary of State shall notify the Speaker 
        of the House of Representatives and the Committee on Banking, 
        Housing, and Urban Affairs and the Committee on Foreign 
        Relations of the Senate at least 30 days before issuing any 
        license under this title for exports to a country the 
        government of which the Secretary of State has determined has 
        repeatedly provided support for acts of international 
        terrorism.
            (3) Publication of determinations.--Each determination of 
        the Secretary of State under paragraph (1)(A) shall be 
        published in the Federal Register.
            (4) Rescission of determinations.--A determination made by 
        the Secretary of State under paragraph (1)(A) may not be 
        rescinded unless the President submits to the Speaker of the 
        House of Representatives and the chairman of the Committee on 
        Banking, Housing, and Urban Affairs and the chairman of the 
        Committee on Foreign Relations of the Senate--
                    (A) before the proposed rescission would take 
                effect, a report certifying that--
                            (i) there has been a fundamental change in 
                        the leadership and policies of the government 
                        of the country concerned;
                            (ii) that government is not supporting acts 
                        of international terrorism; and
                            (iii) that government has provided 
                        assurances that it will not support acts of 
                        international terrorism in the future; or
                    (B) at least 45 days before the proposed rescission 
                would take effect, a report justifying the rescission 
                and certifying that--
                            (i) the government concerned has not 
                        provided any support for international 
                        terrorism during the preceding 6-month period; 
                        and
                            (ii) the government concerned has provided 
                        assurances that it will not support acts of 
                        international terrorism in the future.
            (5) Waiver of prohibitions.--The President may waive the 
        prohibitions contained in paragraph (1)(A) with respect to a 
        specific transaction if--
                    (A) the President determines that the transaction 
                is essential to the national security interests of the 
                United States; and
                    (B) not less than 30 days prior to the proposed 
                transaction, the President--
                            (i) consults with the Committee on 
                        International Relations of the House of 
                        Representatives and the Committee on Banking, 
                        Housing, and Urban Affairs of the Senate 
                        regarding the proposed transaction; and
                            (ii) submits to the Speaker of the House of 
                        Representatives and the chairman of the 
                        Committee on Banking, Housing, and Urban 
                        Affairs of the Senate a report containing--
                                    (I) the name of any country 
                                involved in the proposed transaction, 
                                the identity of any recipient of the 
                                items to be provided pursuant to the 
                                proposed transaction, and the 
                                anticipated use of those items;
                                    (II) a description of the items 
                                involved in the proposed transaction 
                                (including their market value) and the 
                                actual sale price at each step in the 
                                transaction;
                                    (III) the reasons why the proposed 
                                transaction is essential to the 
                                national security interests of the 
                                United States and the justification for 
                                the proposed transaction;
                                    (IV) the date on which the proposed 
                                transaction is expected to occur; and
                                    (V) the name of any foreign 
                                governments involved in the proposed 
                                transaction.
        To the extent possible, the information specified in clause 
        (ii) of subparagraph (B) shall be provided in unclassified 
        form.
            (6) Multilateral regimes.--The Secretary of State, in 
        consultation with appropriate departments and agencies, shall 
        seek support by other countries and by effective multilateral 
        control regimes of controls imposed by this subsection.
            (7) Effect on other laws.--The provisions of this 
        subsection do not affect any other provision of law to the 
        extent such other provision imposes greater restrictions on 
        exports to any country the government of which the Secretary of 
        State has determined has repeatedly provided support for acts 
        of international terrorism than are imposed under this 
        subsection.
    (j) Crime Control Instruments.--
            (1) License required.--Crime control and detection 
        instruments and equipment shall be approved for export by the 
        Secretary only pursuant to an export license. Paragraphs (3)(A) 
        and (4) of subsection (a) shall not apply to the export 
        controls imposed by this subsection.
            (2) Concurrence of secretary of state.--
                    (A) Items on control index.--Any determination of 
                the Secretary of what commodities or technology shall 
                be included on the control index as a result of the 
                export restrictions imposed by this subsection shall be 
                made with the concurrence of the Secretary of State.
                    (B) Action on license application.--Any 
                determination of the Secretary to approve or deny an 
                export license application to export crime control or 
                detection instruments or equipment shall be made with 
                the concurrence of the Secretary of State.
            (3) Dispute resolution.--If the Secretary of State does not 
        agree with the Secretary with respect to any determination 
        under paragraph (2), the Secretary of State shall refer the 
        matter to the President for resolution.
            (4) Exceptions.--The provisions of this subsection shall 
        not apply with respect to exports to countries which are 
        members of the North Atlantic Treaty Organization or to Japan, 
        Australia, or New Zealand, or to such other countries as the 
        President shall designate consistent with the purposes of this 
        subsection and section 502B of the Foreign Assistance Act of 
        1961.
    (k) Spare Parts.--At the same time as the President imposes or 
expands export controls under this section, the President shall 
determine whether such export controls will apply to replacement parts 
or parts in commodities subject to such export controls.
    (l) Effect on Other Laws.--None of the prohibitions contained in 
this section shall apply to any transaction subject to the reporting 
requirements of title V of the National Security Act of 1947.

SEC. 107. SHORT SUPPLY CONTROLS.

    (a) Authority.--
            (1) In general.--In order to carry out the policy set forth 
        in section 103(4), the President may prohibit or curtail the 
        export of any commodities subject to the jurisdiction of the 
        United States or exported by any person subject to the 
        jurisdiction of the United States. In curtailing exports to 
        carry out the policy set forth in section 103(4), the President 
        shall allocate a portion of export licenses on the basis of 
        factors other than a prior history of exportation. Such factors 
        shall include the extent to which a country engages in 
        equitable trade practices with respect to United States 
        commodities and treats the United States equitably in times of 
        short supply.
            (2) Public participation.--Upon imposing quantitative 
        restrictions on exports of any commodities to carry out the 
        policy set forth in section 103(4), the Secretary shall include 
        in a notice published in the Federal Register with respect to 
        such restrictions an invitation to all interested parties to 
        submit written comments within 15 days after the date of 
        publication on the impact of such restrictions and the method 
        of licensing used to implement them.
            (3) License fees.--In imposing export controls under this 
        section, the President's authority shall include, but not be 
        limited to, the imposition of export license fees.
    (b) Monitoring.--
            (1) In general.--In order to carry out the policy set forth 
        in section 103(4), the Secretary shall monitor exports, and 
        contracts for exports, of any commodity (other than a commodity 
        which is subject to the reporting requirements of section 602 
        of the Agricultural Trade Act of 1978 (7 U.S.C. 5712)) when the 
        volume of such exports in relation to domestic supply 
        contributes, or may contribute, to an increase in domestic 
        prices or a domestic shortage, and such price increase or 
        shortage has, or may have, a serious adverse impact on the 
        economy or any sector thereof. Any such monitoring shall 
        commence at a time adequate to assure that the monitoring will 
        result in a data base sufficient to enable policies to be 
        developed, in accordance with section 103(4), to mitigate a 
        short supply situation or serious inflationary price rise or, 
        if export controls are needed, to permit imposition of such 
        controls in a timely manner. Information which the Secretary 
        requires to be furnished in effecting such monitoring shall be 
        confidential, except as provided in paragraph (2).
            (2) Reports on monitoring.--The results of monitoring under 
        paragraph (1) shall, to the extent practicable, be aggregated 
        and included in weekly reports setting forth, with respect to 
        each item monitored, actual and anticipated exports, the 
        destination by country, and the domestic and worldwide price, 
        supply, and demand. Such reports may be made monthly if the 
        Secretary determines that there is insufficient information to 
        justify weekly reports.
            (3) Consultation with secretary of energy.--The Secretary 
        shall consult with the Secretary of Energy to determine whether 
        monitoring or export controls under this section are warranted 
        with respect to exports of facilities, machinery, or equipment 
        normally and principally used, or intended to be used, in the 
        production, conversion, or transportation of fuels and energy 
        (except nuclear energy), including, but not limited to--
                    (A) drilling rigs, platforms, and equipment;
                    (B) petroleum refineries, and natural gas 
                processing, liquefaction, and gasification plants;
                    (C) facilities for production of synthetic natural 
                gas or synthetic crude oil;
                    (D) oil and gas pipelines, pumping stations, and 
                associated equipment; and
                    (E) vessels for transporting oil, gas, coal, and 
                other fuels.
    (c) Petitions for Monitoring or Controls of Metallic Materials.--
            (1) In general.--(A) Any entity, including a trade 
        association, firm, or certified or recognized union or group of 
        workers, that is representative of an industry or a substantial 
        segment of an industry that processes metallic materials 
        capable of being recycled may transmit a written petition to 
        the Secretary requesting the monitoring of exports or the 
        imposition of export controls, or both, with respect to any 
        such material, in order to carry out the policy set forth in 
        section 103(4).
            (B) Each petition shall be in such form as the Secretary 
        shall prescribe and shall contain information in support of the 
        action requested. The petition shall include any information 
        reasonably available to the petitioner indicating that each of 
        the criteria set forth in paragraph (3)(A) is satisfied.
            (2) Publication of notice.--Within 15 days after receipt of 
        any petition described in paragraph (1), the Secretary shall 
        publish a notice in the Federal Register. The notice shall--
                    (A) include the name of the material that is the 
                subject to the petition;
                    (B) include the schedule B number of the material 
                as set forth in the Statistical Classification of 
                Domestic and Foreign Commodities Exported from the 
                United States;
                    (C) indicate whether the petition is requesting 
                that controls or monitoring, or both, be imposed with 
                respect to the exportation of such material; and
                    (D) provide that interested persons shall have a 
                period of 30 days beginning on the date on which the 
                notice is published to submit to the Secretary written 
                data, views, or arguments, with or without opportunity 
                for oral presentation, with respect to the matter 
                involved.
        At the request of the petitioner or any other entity described 
        in paragraph (1)(A) with respect to the material which is the 
        subject of the petition, or at the request of any entity 
        representative of producers or exporters of such material, the 
        Secretary shall conduct public hearings with respect to the 
        subject of the petition, in which case the 30-day period may be 
        extended to 45 days.
            (3) Determination of monitoring or controls.--(A) Within 45 
        days after the end of the 30- or 45-day period described in 
        paragraph (2), as the case may be, the Secretary shall 
        determine whether to impose monitoring or controls, or both, on 
        the export of the material that is the subject of the petition 
        in order to carry out the policy set forth in section 103(4). 
        In making such determination, the Secretary shall determine 
        whether--
                    (i) there has been a significant increase, in 
                relation to a specific period of time, in exports of 
                such material in relation to domestic supply and 
                demand;
                    (ii) there has been a significant increase in 
                domestic price of such material or a domestic shortage 
                of such material relative to demand;
                    (iii) exports of such material are as important as 
                any other cause of a domestic price increase or 
                shortage relative to demand found under clause (ii);
                    (iv) a domestic price increase or shortage relative 
                to demand found under clause (ii) has significantly 
                adversely affected or may significantly adversely 
                affect the national economy or any sector thereof, 
                including a domestic industry; and
                    (v) monitoring or controls, or both, are necessary 
                in order to carry out the policy set forth in section 
                103(4).
            (B) The Secretary shall publish in the Federal Register a 
        detailed statement of the reasons for the Secretary's 
        determination under subparagraph (A) of whether to impose 
        monitoring or controls, or both, including the findings of fact 
        in support of that determination.
            (4) Publication of regulations.--Within 15 days after 
        making a determination under paragraph (3) to impose monitoring 
        or controls on the export of a material, the Secretary shall 
        publish in the Federal Register proposed regulations with 
        respect to such monitoring or controls. Within 30 days after 
        the publication of such proposed regulations, and after 
        considering any public comments on the proposed regulations, 
        the Secretary shall publish and implement final regulations 
        with respect to such monitoring or controls.
            (5) Consolidation of petitions.--For purposes of publishing 
        notices in the Federal Register and scheduling public hearings 
        pursuant to this subsection, the Secretary may consolidate 
        petitions, and responses to such petitions, which involve the 
        same or related materials.
            (6) Subsequent petitions on same material.--If a petition 
        with respect to a particular material or group of materials has 
        been considered in accordance with all the procedures described 
        in this subsection, the Secretary may determine, in the absence 
        of significantly changed circumstances, that any other petition 
        with respect to the same material or group of materials which 
        is filed within 6 months after the consideration of the prior 
        petition has been completed does not merit complete 
        consideration under this subsection.
            (7) Precedence of procedures over other reviews.--The 
        procedures and time limits set forth in this subsection with 
        respect to a petition filed under this subsection shall take 
        precedence over any review undertaken at the initiative of the 
        Secretary with respect to the same subject as that of the 
        petition.
            (8) Temporary controls.--The Secretary may impose 
        monitoring or controls, on a temporary basis, on the export of 
        a metallic material after a petition is filed under paragraph 
        (1)(A) with respect to that material but before the Secretary 
        makes a determination under paragraph (3) with respect to that 
        material only if--
                    (A) the failure to take such temporary actions 
                would result in irreparable harm to the entity filing 
                the petition, or to the national economy or segment 
                thereof, including a domestic industry, and
                    (B) the Secretary considers such action to be 
                necessary to carry out the policy set forth in section 
                103(4).
            (9) Other authority not affected.--The authority under this 
        subsection shall not be construed to affect the authority of 
        the Secretary under any other provision of this title, except 
        that if the Secretary determines, on the Secretary's own 
        initiative, to impose monitoring or controls, or both, on the 
        export of metallic materials capable of being recycled, under 
        the authority of this section, the Secretary shall publish the 
        reasons for such action in accordance with paragraph (3)(A) and 
        (B).
            (10) Submission and consideration of additional 
        information.--Nothing contained in this subsection shall be 
        construed to preclude submission on a confidential basis to the 
        Secretary of information relevant to a decision to impose or 
        remove monitoring or controls under the authority of this 
        title, or to preclude consideration of such information by the 
        Secretary in reaching decisions required under this subsection. 
        The provisions of this paragraph shall not be construed to 
        affect the applicability of section 552(b) of title 5, United 
        States Code.
    (d) Agricultural Commodities.--
            (1) Approval of controls by secretary of agriculture.--The 
        authority conferred by this section shall not be exercised with 
        respect to any agricultural commodity, including fats and oils, 
        forest products, or animal hides or skins, without the approval 
        of the Secretary of Agriculture. The Secretary of Agriculture 
        shall not approve the exercise of such authority with respect 
        to any such commodity during any period for which the supply of 
        such commodity is determined by the Secretary of Agriculture to 
        be in excess of the requirements of the domestic economy, 
        except to the extent the President determines that the controls 
        on such agricultural commodities are also imposed under section 
        106. The Secretary of Agriculture shall, by exercising the 
        authority which the Secretary of Agriculture has under other 
        applicable provisions of law, collect data with respect to 
        export sales of animal hides and skins.
            (2) Protection of stored commodities from future 
        controls.--Upon approval of the Secretary, in consultation with 
        the Secretary of Agriculture, agricultural commodities 
        purchased by or for use in a foreign country may remain in the 
        United States for export at a later date free from any 
        quantitative limitations on export which may be imposed to 
        carry out the policy set forth in section 103(4) subsequent to 
        such approval. The Secretary may not grant such approval unless 
        the Secretary receives adequate assurance and, in conjunction 
        with the Secretary of Agriculture, finds--
                    (A) that such commodities will eventually be 
                exported,
                    (B) that neither the sale nor export thereof will 
                result in an excessive drain of scarce material and 
                have a serious domestic inflationary impact,
                    (C) that storage of such commodities in the United 
                States will not unduly limit the space available for 
                storage of domestically owned commodities, and
                    (D) that the purpose of such storage is to 
                establish a reserve of such commodities for later use, 
                not including resale to or use by another country.
        The Secretary may issue such regulations as may be necessary to 
        carry out this paragraph.
            (3) Procedures for imposing controls.--(A) If the President 
        imposes export controls on any agricultural commodity under 
        section 106 or this section, the President shall immediately 
        transmit a report on such action to the Congress, setting forth 
        the reasons for the controls in detail and specifying the 
        period of time, which may not exceed 1 year, that the controls 
        are proposed to be in effect. If the Congress, within 60 days 
        after the date of the receipt of the report, enacts a joint 
        resolution pursuant to paragraph (4) approving the imposition 
        of the export controls, then such controls shall remain in 
        effect for the period specified in the report, or until 
        terminated by the President, whichever occurs first. If the 
        Congress, within 60 days after the date of its receipt of such 
        report, fails to adopt a joint resolution approving such 
        controls, then such controls shall cease to be effective upon 
        the expiration of that 60-day period.
            (B) The provisions of subparagraph (A) and paragraph (4) 
        shall not apply to export controls--
                    (i) which are extended under this title if the 
                controls, when imposed, were approved by the Congress 
                under subparagraph (A) and paragraph (4); or
                    (ii) which are imposed with respect to a country as 
                part of the prohibition or curtailment of all exports 
                to that country.
            (4) Expedited procedures.--(A) For purposes of this 
        paragraph, the term ``joint resolution'' means only a joint 
        resolution the matter after the resolving clause of which is as 
        follows: ``That pursuant to section 107(d)(3) of the Export 
        Administration Act of 1996, the President may impose export 
        controls as specified in the report submitted to the Congress 
        on ______.'', with the blank space being filled with the 
        appropriate date.
            (B) On the day on which a report is submitted to the House 
        of Representatives and the Senate under paragraph (3), a joint 
        resolution with respect to the export controls specified in 
        such report shall be introduced (by request) in the House by 
        either the chairman of the Committee on International 
        Relations, for the chairman and the ranking minority member of 
        the Committee, or by Members of the House designated by the 
        chairman and ranking minority member; and shall be introduced 
        (by request) in the Senate by the majority leader of the 
        Senate, for the majority leader and the minority leader of the 
        Senate, or by Members of the Senate designated by the majority 
        leader and minority leader of the Senate. If either House is 
        not in session on the day on which such a report is submitted, 
        the joint resolution shall be introduced in that House, as 
        provided in the preceding sentence, on the first day thereafter 
        on which that House is in session.
            (C) If the committee of either House to which a joint 
        resolution has been referred has not reported the joint 
        resolution at the end of 30 days after its referral, the 
        committee shall be discharged from further consideration of the 
        resolution.
            (D) A joint resolution under this paragraph shall be 
        considered in the Senate in accordance with the provisions of 
        section 601(b)(4) of the International Security Assistance and 
        Arms Export Control Act of 1976. For the purpose of expediting 
        the consideration and passage of joint resolutions reported to 
        the House of Representatives by the Committee on International 
        Relations under this paragraph, a motion to proceed to the 
        consideration in the House of any such joint resolution shall 
        be considered as highly privileged if offered by the chairman 
        of the committee or a designee on or after the third day the 
        report on the joint resolution has been available to Members 
        pursuant to clause 2(l)(6) of rule XI of the Rules of the House 
        of Representatives. The motion shall not be subject to debate 
        or to intervening motion or otherwise subject to points of 
        order, nor shall it be in order to move to reconsider the vote 
        by which the motion is agreed to or not agreed to. If the 
        motion is agreed to, the joint resolution shall be considered 
        in the House and debatable for not to exceed two hours equally 
        divided and controlled by the chairman and ranking minority 
        member of the committee. The previous question shall be 
        considered as ordered on the joint resolution to final passage 
        without intervening motion.
            (E) In the case of a joint resolution described in 
        subparagraph (A), if, before the passage by one House of a 
        joint resolution of that House, that House receives a 
        resolution with respect to the same matter from the other 
        House, then--
                    (i) the procedure in that House shall be the same 
                as if no joint resolution has been received from the 
                other House; but
                    (ii) the vote on final passage shall be on the 
                joint resolution of the other House.
            (5) Computation of time periods.--In the computation of the 
        period of 60 days referred to in paragraph (3)(A) and the 
        period of 30 days referred to in paragraph (4)(C), there shall 
        be excluded the days on which either House of Congress is not 
        in session because of an adjournment of more than 3 days to a 
        day certain or because of an adjournment of the Congress sine 
        die.
            (6) Rulemaking Power.--The provisions of this subsection 
        are enacted by the Congress--
                    (A) as an exercise of the rulemaking power of the 
                House of Representatives and the Senate, respectively, 
                and as such, they shall be considered as part of the 
                rules of each House, respectively, or of that House to 
                which they specifically apply, and such rules shall 
                supersede other rules only to the extent that they are 
                inconsistent therewith; and
                    (B) with full recognition of the constitutional 
                right of either House to change such rules (so far as 
                relating to such House) at any time, in the same 
                manner, and to the same extent as in the case of any 
                other rule of such House.
    (e) Barter Agreements.--
            (1) Exemption from controls.--The exportation pursuant to a 
        barter agreement of any commodities which may lawfully be 
        exported from the United States, for any commodities which may 
        lawfully be imported into the United States, may be exempted, 
        in accordance with paragraph (2), from any quantitative 
        limitation on exports (other than any reporting requirement) 
        imposed to carry out the policy set forth in section 103(4).
            (2) Criteria for exemption.--The Secretary shall grant an 
        exemption under paragraph (1) if the Secretary finds, after 
        consultation with the appropriate department or agency of the 
        United States, that--
                    (A) for the period during which the barter 
                agreement is to be performed--
                            (i) the average annual quantity of the 
                        commodities to be exported pursuant to the 
                        barter agreement will not be required to 
                        satisfy the average amount of such commodities 
                        estimated to be required annually by the 
                        domestic economy and will be surplus thereto; 
                        and
                            (ii) the average annual quantity of the 
                        commodities to be imported will be more than 
                        the average amount of such commodities 
                        estimated to be required annually to supplement 
                        domestic production; and
                    (B) the parties to such barter agreement have 
                demonstrated adequately that they intend, and have the 
                capacity, to perform such barter agreement.
            (3) Definition.--For purposes of this subsection, the term 
        ``barter agreement'' means any agreement which is made for the 
        exchange, without monetary consideration, of any commodities 
        produced in the United States for any commodities produced 
        outside of the United States.
            (4) Applicability.--This subsection shall apply only with 
        respect to barter agreements entered into after September 30, 
        1979.
    (f) Effect of Controls on Existing Contracts.--
            (1) Western red cedar.--Any export controls imposed under 
        section 7(i) of the Export Administration Act of 1979 or this 
        section shall not affect any contract to harvest unprocessed 
        western red cedar from State lands which was entered into 
        before October 1, 1979, and the performance of which would make 
        the red cedar available for export.
            (2) Other controls.--Any export controls imposed under this 
        section on any agricultural commodity (including fats, oils, 
        forest products, and animal hides and skins), or on any fishery 
        product, shall not affect any contract to export entered into 
        before the date on which such controls are imposed. For 
        purposes of this paragraph, the term ``contract to export'' 
        includes, but is not limited to, an export sales agreement and 
        an agreement to invest in an enterprise which involves the 
        export of commodities or technology.
    (g) Oil Exports for Use by United States Military Facilities.--For 
purposes of this section, and for purposes of any export controls 
imposed under this title, shipments of crude oil, refined petroleum 
products, or partially refined petroleum products from the United 
States for use by the Department of Defense or United States-supported 
installations or facilities shall not be considered to be exports.

SEC. 108. FOREIGN BOYCOTTS.

    (a) Prohibitions and Exceptions.--
            (1) Prohibitions.--In order to carry out the policies set 
        forth in section 103(9), the President shall issue regulations 
        prohibiting any United States person, with respect to that 
        person's activities in the interstate or foreign commerce of 
        the United States, from taking or knowingly agreeing to take 
        any of the following actions with intent to comply with, 
        further, or support any boycott fostered or imposed by a 
        foreign country against a country which is friendly to the 
        United States and which is not itself the object of any form of 
        boycott pursuant to United States law or regulation:
                    (A) Refusing, or requiring any other person to 
                refuse, to do business with or in the boycotted 
                country, with any business concern organized under the 
                laws of the boycotted country, with any national or 
                resident of the boycotted country, or with any other 
                person, pursuant to an agreement with, a requirement 
                of, or a request from or on behalf of the boycotting 
                country. The mere absence of a business relationship 
                with or in the boycotted country, with any business 
                concern organized under the laws of the boycotted 
                country, with any national or resident of the boycotted 
                country, or with any other person, does not indicate 
                the existence of the intent required to establish a 
                violation of regulations issued to carry out this 
                subparagraph.
                    (B) Refusing, or requiring any other person to 
                refuse, to employ or otherwise discriminating against 
                any United States person on the basis of the race, 
                religion, sex, or national origin of that person or of 
                any owner, officer, director, or employee of such 
                person.
                    (C) Furnishing information with respect to the 
                race, religion, sex, or national origin of any United 
                States person or of any owner, officer, director, or 
                employee of such person.
                    (D) Furnishing information about whether any person 
                has, has had, or proposes to have any business 
                relationship (including a relationship by way of sale, 
                purchase, legal or commercial representation, shipping 
                or other transport, insurance, investment, or supply) 
                with or in the boycotted country, with any business 
                concern organized under the laws of the boycotted 
                country, with any national or resident of the boycotted 
                country, or with any other person that is known or 
                believed to be restricted from having any business 
                relationship with or in the boycotting country. Nothing 
                in this paragraph shall prohibit the furnishing of 
                normal business information in a commercial context as 
                defined by the Secretary.
                    (E) Furnishing information about whether any person 
                is a member of, has made a contribution to, or is 
                otherwise associated with or involved in the activities 
                of any charitable or fraternal organization which 
                supports the boycotted country.
                    (F) Paying, honoring, confirming, or otherwise 
                implementing a letter of credit which contains any 
                condition or requirement compliance with which is 
                prohibited by regulations issued pursuant to this 
                paragraph, and no United States person shall, as a 
                result of the application of this paragraph, be 
                obligated to pay or otherwise honor or implement such 
                letter of credit.
            (2) Exceptions.--Regulations issued pursuant to paragraph 
        (1) shall provide exceptions for--
                    (A) complying or agreeing to comply with 
                requirements--
                            (i) prohibiting the import of commodities 
                        or services from the boycotted country or 
                        commodities produced or services provided by 
                        any business concern organized under the laws 
                        of the boycotted country or by nationals or 
                        residents of the boycotted country; or
                            (ii) prohibiting the shipment of 
                        commodities to the boycotting country on a 
                        carrier of the boycotted country, or by a route 
                        other than that prescribed by the boycotting 
                        country or the recipient of the shipment;
                    (B) complying or agreeing to comply with import and 
                shipping document requirements with respect to the 
                country of origin, the name of the carrier and route of 
                shipment, the name of the supplier of the shipment, or 
                the name of the provider of other services, except that 
                no information knowingly furnished or conveyed in 
                response to such requirements may be stated in 
                negative, blacklisting, or similar exclusionary terms, 
                other than with respect to carriers or route of 
                shipment as may be permitted by such regulations in 
                order to comply with precautionary requirements 
                protecting against war risks and confiscation;
                    (C) complying or agreeing to comply in the normal 
                course of business with the unilateral and specific 
                selection by a boycotting country, or national or 
                resident thereof, of carriers, insurers, suppliers of 
                services to be performed within the boycotting country, 
                or specific commodities which, in the normal course of 
                business, are identifiable by source when imported into 
                the boycotting country;
                    (D) complying or agreeing to comply with export 
                requirements of the boycotting country relating to 
                shipments or transshipment of exports to the boycotted 
                country, to any business concern of or organized under 
                the laws of the boycotted country, or to any national 
                or resident of the boycotted country;
                    (E) compliance by an individual or agreement by an 
                individual to comply with the immigration or passport 
                requirements of any country with respect to such 
                individual or any member of such individual's family or 
                with requests for information regarding requirements of 
                employment of such individual within the boycotting 
                country; and
                    (F) compliance by a United States person resident 
                in a foreign country or agreement by such person to 
                comply with the laws of the country with respect to 
                such person's activities exclusively therein, and such 
                regulations may contain exceptions for such resident 
                complying with the laws or regulations of the foreign 
                country governing imports into such country of 
                trademarked, trade named, or similarly specifically 
                identifiable products, or components of products for 
                such person's own use, including the performance of 
                contractual services within that country, as may be 
                defined by such regulations.
            (3) Limitation on exceptions.--Regulations issued pursuant 
        to paragraphs (2)(C) and (2)(F) shall not provide exceptions 
        from paragraphs (1)(B) and (1)(C).
            (4) Antitrust and civil rights laws not affected.--Nothing 
        in the subsection may be construed to supersede or limit the 
        operation of the antitrust or civil rights laws of the United 
        States.
            (5) Evasion.--This section shall apply to any transaction 
        or activity undertaken, by or through a United States person or 
        any other person, with intent to evade the provisions of this 
        section as implemented by the regulations issued pursuant to 
        this subsection, and such regulations shall expressly provide 
        that the exceptions set forth in paragraph (2) shall not permit 
        activities or agreements (expressed or implied by a course of 
        conduct, including a pattern of responses) otherwise 
        prohibited, which are not within the intent of such exceptions.
    (b) Additional Regulations and Reports.--
            (1) Regulations.--In addition to the regulations issued 
        pursuant to subsection (a), regulations issued under section 
        106 shall implement the policies set forth in section 103(9).
            (2) Reports by united states persons.--Such regulations 
        shall require that any United States person receiving a request 
        for the furnishing of information, the entering into or 
        implementing of agreements, or the taking of any other action 
        referred to in section 103(9) shall report that fact to the 
        Secretary, together with such other information concerning such 
        request as the Secretary may require, for such action as the 
        Secretary considers appropriate for carrying out the policies 
        of that section. Such person shall also report to the Secretary 
        whether such person intends to comply and whether such person 
        has complied with such request. Any report filed pursuant to 
        this paragraph shall be made available promptly for public 
        inspection and copying, except that information regarding the 
        quantity, description, and value of any commodities or 
        technology to which such report relates may be kept 
        confidential if the Secretary determines that disclosure 
        thereof would place the United States person involved at a 
        competitive disadvantage. The Secretary shall periodically 
        transmit summaries of the information contained in such reports 
        to the Secretary of State for such action as the Secretary of 
        State, in consultation with the Secretary, considers 
        appropriate for carrying out the policies set forth in section 
        103(9).
    (c) Preemption.--The provisions of this section and the regulations 
issued under this section shall preempt any law, rule, or regulation 
which--
            (1) is a law, rule, or regulation of any of the several 
        States or the District of Columbia, or any of the territories 
        or possessions of the United States, or of any governmental 
        subdivision thereof; and
            (2) pertains to participation in, compliance with, 
        implementation of, or the furnishing of information regarding 
        restrictive trade practices or boycotts fostered or imposed by 
        foreign countries against other countries.

SEC. 109. PROCEDURES FOR PROCESSING EXPORT LICENSE APPLICATIONS; OTHER 
              INQUIRIES.

    (a) Primary Responsibility of the Secretary.--
            (1) In general.--All export license applications required 
        under this title shall be submitted by the applicant to the 
        Secretary. Subject to the procedures provided in this section--
                    (A) if referral of an application to other 
                departments or agencies for review is not required, the 
                Secretary shall, within 9 days after receiving the 
                application, issue a license or notify the applicant of 
                the intent to deny the application; or
                    (B) if referral of the application to other 
                departments or agencies for review is required, the 
                Secretary shall, within 30 days after referral of any 
                such application to other departments or agencies--
                            (i) issue a license;
                            (ii) notify the applicant of the intent to 
                        deny the application; or
                            (iii) ensure that the application is 
                        subject to the interagency resolution process 
                        set forth in subsection (d).
            (2) Recommendations of other agencies.--The Secretary shall 
        seek information and recommendations from the Department of 
        Defense and other departments and agencies of the United States 
        that are identified by the President as being concerned with 
        factors having an important bearing on exports administered 
        under this title. Such departments and agencies shall cooperate 
        fully and promptly in rendering information and 
        recommendations.
            (3) Procedures.--In guidance and regulations that implement 
        this section, the Secretary shall describe the procedures 
        required by this section, the responsibilities of the Secretary 
        and of other departments and agencies in reviewing 
        applications, the rights of the applicant, and other relevant 
        matters affecting the review of license applications.
            (4) Calculation of processing times.--In calculating the 
        processing times set forth in this section, the Secretary shall 
        use calendar days, except that if the final day for a required 
        action falls on a weekend or holiday, that action shall be 
        taken no later than the following business day.
            (5) Reliability of parties.--In reviewing applications for 
        export licenses, the Secretary may in each case consider the 
        reliability of the parties to the proposed export. In making 
        such an evaluation, the Secretary may consider all sources of 
        information, including results of other United States 
        Government actions, such as actions by the Committee on Foreign 
        Investment in the United States, investigations of diversions 
        from authorized end uses or end users, and intelligence 
        information, except that the consideration of such information 
        in connection with the evaluation of the reliability of parties 
        shall not authorize the direct or indirect disclosure of 
        classified information or sources and methods of gathering 
        classified information and shall not confer a right on private 
        parties to have access to classified information.
    (b) Initial Screening.--
            (1) Upon receipt of application.--Upon receipt of an export 
        license application, the Secretary shall enter and maintain in 
        the records of the Department of Commerce information regarding 
        the receipt and status of the application.
            (2) Initial procedures.--Promptly upon receiving any 
        license application, the Secretary shall--
                    (A) contact the applicant if the application is 
                improperly completed or if additional information is 
                required, and hold the application for a reasonable 
                time while the applicant provides the necessary 
                corrections or information, and such time shall not be 
                included in calculating the time periods prescribed in 
                this section;
                    (B) refer the application, including all 
                information submitted by the applicant, and all 
                necessary recommendations and analyses by the Secretary 
                to the Department of Defense and other departments and 
                agencies identified by the President under subsection 
                (a)(2); and
                    (C) ensure that the classification stated on the 
                application for the export items is correct, return the 
                application if a license is not required, and, if 
                referral to other departments or agencies is not 
                required, grant the application or notify the applicant 
                of the Secretary's intent to deny the application.
        In the event that the head of a department or agency determines 
        that certain types of applications need not be referred to the 
        department or agency, such department or agency head shall 
        notify the Secretary of the specific types of such applications 
        that the department or agency does not wish to review.
    (c) Action by Other Departments and Agencies.--
            (1) Referral to other agencies.--The Secretary shall 
        promptly refer license applications to departments and agencies 
        under subsection (b) to make recommendations and provide 
        information to the Secretary.
            (2) Responsibility of referral agencies.--The Department of 
        Defense and other reviewing departments and agencies shall 
        organize their resources and units to plan for the prompt and 
        expeditious internal dissemination of export license 
        applications, if necessary, so as to avoid delays in responding 
        to the referral of applications.
            (3) Additional information requests.--Each department or 
        agency to which a license application is referred shall specify 
        to the Secretary any information that is not in the application 
        that would be required for the department or agency to make a 
        determination with respect to the application, and the 
        Secretary shall promptly request such information from the 
        applicant. The time that may elapse between the date the 
        information is requested by that department or agency and the 
        date the information is received by that department or agency 
        shall not be included in calculating the time periods 
        prescribed in this section.
            (4) Time period for action by referral departments and 
        agencies.--Within 30 days after receiving a referral of an 
        application under this section, the department or agency 
        concerned shall provide the Secretary with a recommendation 
        either to approve the license or to deny the license. A 
        recommendation that the Secretary deny a license shall include 
        a statement of reasons for the recommendation that are 
        consistent with the provisions of this title, and shall cite 
        both the specific statutory and the regulatory basis for the 
        recommendation. A department or agency that fails to provide a 
        recommendation in accordance with this paragraph within that 
        30-day period shall be deemed to have no objection to the 
        decision of the Secretary on the application.
    (d) Interagency Resolution.--
            (1) Initial resolution.--The Secretary shall establish, 
        select the chairperson of, and determine procedures for an 
        interagency committee to review initially all license 
        applications on which the departments and agencies reviewing 
        the applications under this section are not in agreement. The 
        chairperson of such committee shall consider the 
        recommendations of the departments and agencies reviewing a 
        particular application and inform them of his or her decision 
        on the application, which may include a decision that the 
        particular application requires further consideration under the 
        procedures established under paragraph (2). An application may 
        also be referred to further consideration under the procedures 
        established under paragraph (2) if an appeal from the 
        chairperson's decision is made in writing by an official of the 
        department or agency concerned who is appointed by the 
        President by and with the advice and consent of the Senate, or 
        an officer properly acting in such capacity.
            (2) Further resolution.--The President shall establish a 
        process for the further review and determination of export 
        license applications pursuant to a decision by the chairperson 
        under paragraph (1) or an appeal by a department or agency 
        under paragraph (1). Such process shall--
                    (A) be chaired by the Secretary or his or her 
                designee;
                    (B) ensure that license applications are resolved 
                or referred to the President no later than 90 days 
                after the date the license application is initially 
                received by the Secretary;
                    (C) provide that a department or agency dissenting 
                from the decision reached under subparagraph (B) may 
                appeal the decision to the President; and
                    (D) provide that a department or agency that fails 
                to take a timely position, citing the specific 
                statutory and regulatory bases for a denial, shall be 
                deemed to have no objection to the pending decision.
    (e) Actions by the Secretary If Application Denied.--In cases where 
the Secretary has determined that an application should be denied, the 
applicant shall be informed in writing of--
            (1) the determination to deny;
            (2) the specific statutory and regulatory bases for the 
        proposed denial;
            (3) what, if any, modifications in or restrictions on the 
        items for which the license was sought would allow such export 
        to be compatible with export controls imposed under this title, 
        and which officer or employee of the Department of Commerce 
        would be in a position to discuss modifications or restrictions 
        with the applicant and the specific statutory and regulatory 
        bases for imposing such modifications or restrictions;
            (4) to the extent consistent with the national security and 
        foreign policy of the United States, the specific 
        considerations that led to the determination to deny the 
        application; and
            (5) the availability of appeal procedures.
        The Secretary shall allow the applicant 20 days to respond to 
        the determination before the license application is denied.
    (f) Exceptions From Required Time Periods.--The following actions 
related to processing an application shall not be included in 
calculating the time periods prescribed in this section:
            (1) Agreement of the applicant.--Delays upon which the 
        Secretary and the applicant mutually agree.
            (2) Prelicense checks.--A prelicense check that may be 
        required to establish the identity and reliability of the 
        recipient of items controlled under this title, if--
                    (A) the need for the prelicense check is determined 
                by the Secretary, or by another department or agency if 
                the request for the prelicense check is made by such 
                department or agency;
                    (B) the request for the prelicense check is sent by 
                the Secretary within 5 days after the determination 
                that the prelicense check is required; and
                    (C) the analysis of the result of the prelicense 
                check is completed by the Secretary within 5 days.
            (3) Requests for government-to-government assurances.--Any 
        request by the Secretary or another department or agency for 
        government-to-government assurances of suitable end uses of 
        items approved for export, when failure to obtain such 
        assurances would result in rejection of the application, if--
                    (A) the request for such assurances is sent to the 
                Secretary of State within 5 days after the 
                determination that the assurances are required;
                    (B) the Secretary of State initiates the request of 
                the relevant government within 10 days thereafter; and
                    (C) the license is issued within 5 days after the 
                Secretary receives the requested assurances.
        Whenever a prelicense check described in paragraph (2) and 
        assurances described in this paragraph are not requested within 
        the time periods set forth therein, then the time expended for 
        such prelicense check or assurances shall be included in 
        calculating the time periods established by this section.
            (4) Multilateral review.--Multilateral review of a license 
        application to the extent that such multilateral review is 
        required by a relevant multilateral regime.
            (5) Congressional notification.--Such time as is required 
        for mandatory congressional notifications under this title.
            (6) Consultations.--Consultation with other governments, if 
        such consultation is provided for by a relevant multilateral 
        regime as a precondition for approving a license.
    (g) Appeals.--
            (1) In general.--The Secretary shall establish appropriate 
        procedures for any applicant to appeal to the Secretary the 
        denial of an export license application or other administrative 
        action under this title.
            (2) Filing of petition.--In any case in which any action 
        prescribed in this section is not taken on a license 
        application within the time periods established by this section 
        (except in the case of a time period extended under subsection 
        (f) of which the applicant is notified), the applicant may file 
        a petition with the Secretary requesting compliance with the 
        requirements of this section. When such petition is filed, the 
        Secretary shall take immediate steps to correct the situation 
        giving rise to the petition and shall immediately notify the 
        applicant of such steps.
            (3) Bringing court action.--If, within 20 days after a 
        petition is filed under paragraph (2), the processing of the 
        application has not been brought into conformity with the 
        requirements of this section, or the application has been 
        brought into conformity with such requirements but the 
        Secretary has not so notified the applicant, the applicant may 
        bring an action in an appropriate United States district court 
        for an order requiring compliance with the time periods 
        required by this section. The United States district courts 
        shall have jurisdiction to provide such relief, as appropriate.
    (h) Classification Requests and Other Inquiries.--
            (1) Classification requests.--In any case in which the 
        Secretary receives a written request asking for the proper 
        classification of an item on the control index, the Secretary 
        shall, within 14 days after receiving the request, inform the 
        person making the request of the proper classification.
            (2) Other inquiries.--In any case in which the Secretary 
        receives a written request for information about the 
        applicability of licensing requirements under this title to a 
        proposed export transaction or series of transactions, the 
        Secretary shall, within 30 days after receiving the request, 
        reply with that information to the person making the request.

SEC. 110. VIOLATIONS.

    (a) Criminal Penalties.--
            (1) Violations by an individual.--Except as provided in 
        paragraph (3), any individual who knowingly violates or 
        conspires to or attempts to violate any provision of this title 
        or any regulation, license, or order issued under this title 
        shall be fined not more than 5 times the value of the exports 
        involved or $500,000, whichever is greater, or imprisoned not 
        more than 10 years, or both.
            (2) Violations by a person other than an individual.--
        Except as provided in paragraph (3), any person other than an 
        individual who knowingly violates or conspires to or attempts 
        to violate any provision of this title or any regulation, 
        license, or order issued under this title shall be fined not 
        more than 10 times the value of the exports involved or 
        $1,000,000, whichever is greater.
            (3) Antiboycott violations.--
                    (A) Any individual who knowingly violates or 
                conspires to or attempts to violate any regulation or 
                order issued under section 108 shall be fined, for each 
                violation, not more than 5 times the value of the 
                exports involved or $250,000, whichever is greater, or 
                imprisoned not more than 10 years, or both.
                    (B) Any person other than an individual who 
                knowingly violates or conspires to or attempts to 
                violate any regulation or order issued under section 
                108 shall be fined, for each violation, not more than 5 
                times the value of the exports involved or $500,000, 
                whichever is greater.
    (b) Forfeiture of Property Interest and Proceeds.--
            (1) Forfeiture.--Any person who is convicted under 
        subsection (a)(1) or (2) shall, in addition to any other 
        penalty, forfeit to the United States--
                    (A) any of that person's interest in, security of, 
                claim against, or property or contractual rights of any 
                kind in the commodities or tangible items that were the 
                subject of the violation;
                    (B) any of that person's interest in, security of, 
                claim against, or property or contractual rights of any 
                kind in tangible property that was used in the export 
                or attempt to export that was the subject of the 
                violation; and
                    (C) any of that person's property constituting, or 
                derived from, any proceeds obtained directly or 
                indirectly as a result of the violation.
            (2) Procedures.--The procedures in any forfeiture under 
        this subsection, and the duties and authority of the courts of 
        the United States and the Attorney General with respect to any 
        forfeiture action under this subsection or with respect to any 
        property that may be subject to forfeiture under this 
        subsection, shall be governed by the provisions of chapter 46 
        of title 18, United States Code, to the same extent as property 
        subject to forfeiture under that chapter.
    (c) Civil Penalties; Administrative Sanctions.--
            (1) Civil penalties.--The Secretary may impose a civil 
        penalty of not more than $250,000 for each violation of this 
        title or any regulation, license, or order issued under this 
        title, either in addition to or in lieu of any other liability 
        or penalty which may be imposed, except that the civil penalty 
        for each such violation of regulations issued under section 108 
        may not exceed $50,000.
            (2) Denial of export privileges.--The Secretary may deny 
        the export privileges of any person, including suspending or 
        revoking the authority of any person to export or receive 
        United States-origin commodities or technology subject to this 
        title, on account of any violation of this title or any 
        regulation, license, or order issued under this title.
    (d) Payment of Civil Penalties.--The payment of any civil penalty 
imposed under subsection (c) may be made a condition, for a period not 
exceeding 1 year after the penalty has become due but has not been 
paid, to the granting, restoration, or continuing validity of any 
export license, permission, or privilege granted or to be granted to 
the person upon whom such penalty is imposed. In addition, the payment 
of any civil penalty imposed under subsection (c) may be deferred or 
suspended in whole or in part for a period of time no longer than any 
probation period (which may exceed 1 year) that may be imposed upon 
such person. Such deferral or suspension shall not operate as a bar to 
the collection of the penalty in the event that the conditions of the 
suspension, deferral, or probation are not fulfilled.
    (e) Refunds.--Any amount paid in satisfaction of any civil penalty 
imposed under subsection (c) shall be covered into the Treasury as a 
miscellaneous receipt. The head of the department or agency concerned 
may, in his or her discretion, refund any such civil penalty imposed 
under subsection (c), within 2 years after payment, on the ground of a 
material error of fact or law in the imposition of the penalty. 
Notwithstanding section 1346(a) of title 28, United States Code, no 
action for the refund of any such penalty may be maintained in any 
court.
    (f) Effect of Other Convictions.--
            (1) Denial of export privileges.--Any person convicted of a 
        violation of--
                    (A) this title or the Export Administration Act of 
                1979,
                    (B) the International Emergency Economic Powers 
                Act,
                    (C) section 793, 794, or 798 of title 18, United 
                States Code,
                    (D) section 4(b) of the Internal Security Act of 
                1950 (50 U.S.C. 783(b)),
                    (E) section 38 of the Arms Export Control Act,
                    (F) section 16 of the Trading with the Enemy Act 
                (59 U.S.C. App. 16),
                    (G) any regulation, license, or order issued under 
                any provision of law listed in subparagraph (A), (B), 
                (C), (D), (E), or (F), or
                    (H) section 371 or 1001 of title 18, United States 
                Code, if in connection with the export of commodities 
                or technology controlled under this title, any 
                regulation, license or order issued under the 
                International Emergency Economic Powers Act, or defense 
                articles or defense services controlled under the Arms 
                Export Control Act,
        may, at the discretion of the Secretary, be denied export 
        privileges under this title for a period of up to 10 years from 
        the date of the conviction. The Secretary may also revoke any 
        export license under this title in which such person had an 
        interest at the time of the conviction.
            (2) Related persons.--The Secretary may exercise the 
        authority under paragraph (1) with respect to any person 
        related, through affiliation, ownership, control, or position 
        of responsibility, to any person convicted of any violation of 
        a law set forth in paragraph (1), upon a showing of such 
        relationship with the convicted person, after providing notice 
        and opportunity for a hearing.
    (g) Statute of Limitations.--Any proceeding in which a civil 
penalty or other administrative sanction (other than a temporary denial 
order) is sought under subsection (c) may not be instituted more than 5 
years after the date of the alleged violation, except that, in any case 
in which a criminal indictment alleging a violation of this title is 
returned within the time limits prescribed by law for the institution 
of such action, the statute of limitations for bringing a proceeding to 
impose such a civil penalty or other administrative sanction under this 
title shall, upon the return of the criminal indictment, be tolled 
against all persons named as a defendant. The tolling of the statute of 
limitations shall continue for a period of 6 months from the date a 
conviction becomes final or the indictment is dismissed.
    (h) Violations Defined by Regulation.--Nothing in this section 
shall limit the power of the Secretary to define by regulation 
violations under this title.
    (i) Other Authorities.--Nothing in subsection (c), (d), (e), (f), 
or (g) limits--
            (1) the availability of other administrative or judicial 
        remedies with respect to violations of this title, or any 
        regulation, order, or license issued under this title;
            (2) the authority to compromise and settle administrative 
        proceedings brought with respect to any such violation; or
            (3) the authority to compromise, remit, or mitigate 
        seizures and forfeitures pursuant to section 1(b) of title VI 
        of the Act of June 15, 1917 (22 U.S.C. 401(b)).
    (j) Private Right of Action.--Any person--
            (1) against whom an act of discrimination described in 
        section 108(a)(1)(B) is committed, or
            (2) who, on account of a violation of the regulations 
        issued pursuant to section 108(a), loses an opportunity to 
        engage in a commercial venture pursuant to a contract, joint 
        venture, or other commercial transaction, including an 
        opportunity to bid or tender an offer for a contract,
may bring an action in an appropriate district court of the United 
States against the United States person committing the violation, for 
recovery of actual damages incurred on account of such act of 
discrimination or lost opportunity. In any such action the court may 
award punitive damages. An action may be brought under this subsection 
against a United States person whether or not the United States person 
has been determined under this section to have violated the regulations 
issued pursuant to section 108(a) on account of which the action is 
brought. In an action brought under this subsection, unless the court 
finds that the interests of justice require otherwise, the court shall 
designate the substantially prevailing party or parties in the action, 
and the remaining parties shall pay the reasonable attorneys' fees of 
the substantially prevailing party or parties in such proportion as the 
court shall determine.

SEC. 111. CONTROLLING PROLIFERATION ACTIVITY.

    (a) Proliferation Controls.--
            (1) Missile technology controls.--The Secretary, in 
        consultation with the Secretary of Defense and the heads of 
        other appropriate departments and agencies and consistent with 
        sections 103 and 104(g)--
                    (A) shall establish and maintain, as part of the 
                control index established under section 104(b), dual-
                use items on the MTCR Annex;
                    (B) may include, as part of the control index 
                established under section 104(b), items that--
                            (i) would make a material contribution to 
                        the design, development, test, production, 
                        stockpiling, or use of missile delivery 
                        systems, and
                            (ii) are not included in the MTCR Annex but 
                        which the United States has proposed to the 
                        other members of the MTCR for inclusion in the 
                        MTCR Annex; and
                    (C) shall require a license under paragraph (1) or 
                (2) of section 104(a), consistent with the arrangements 
                of the MTCR, for--
                            (i) any export of items on the control 
                        index pursuant to subparagraphs (A) and (B) to 
                        any country; and
                            (ii) any export of items that the exporter 
                        knows is destined for a project or facility for 
                        the design, development, or manufacture of a 
                        missile in a country that is not an adherent to 
                        the MTCR.
            (2) Chemical and biological weapons controls.--The 
        Secretary, in consultation with the Secretary of Defense and 
        the heads of other appropriate departments and agencies and 
        consistent with sections 103 and 104(g)--
                    (A) shall establish and maintain, as part of the 
                control index established under section 104(b), dual-
                use items listed by the Australia Group or the Chemical 
                Weapons Convention;
                    (B) may include, as part of the control index 
                established under section 104(b), items that--
                            (i) would make a material contribution to 
                        the design, development, test, production, 
                        stockpiling, or use of chemical or biological 
                        weapons, and
                            (ii) are not contained on the list of 
                        controlled items of the Australia Group but 
                        which the United States has proposed to the 
                        other members of the Australia Group for 
                        inclusion in such list; and
                    (C) shall require a license under paragraph (1) or 
                (2) of section 104(a), consistent with the arrangements 
                of the Australia Group and the Chemical Weapons 
                Convention, for--
                            (i) any export of items on the control 
                        index pursuant to subparagraphs (A) and (B) to 
                        any country, except as provided for in section 
                        105(e); and
                            (ii) any export of items that the exporter 
                        knows is destined for a project or facility for 
                        the design, development, or manufacture of a 
                        chemical or biological weapon.
            (3) Policy of denial of licenses.--(A) Licenses under 
        paragraph (1)(C) should in general be denied if the ultimate 
        consignee of the commodities or technology is a facility in a 
        country that is not an adherent to the MTCR and the facility is 
        designed to develop or build missiles.
            (B) Licenses under paragraph (1)(C) shall be denied if the 
        ultimate consignee of the commodities or technology is a 
        facility in a country the government of which has been 
        determined under section 106(i)(1) to have repeatedly provided 
        support for acts of international terrorism.
    (b) Technical Amendments to Arms Export Control Act.--(1) Section 
71(a) of the Arms Export Control Act (22 U.S.C. 2797(a)) is amended by 
striking ``6(l) of the Export Administration Act of 1979'' and 
inserting ``111(a) of the Export Administration Act of 1996''.
    (2) Section 81(a)(1) of the Arms Export Control Act (22 U.S.C. 
2798(a)(1)) is amended in subparagraphs (A) and (B) by inserting 
``under this Act'' after ``United States'' the second place it appears 
in each subparagraph.
    (c) General Prohibition.--Notwithstanding any other provision of 
this title, the export of commodities or technology shall be prohibited 
if the ultimate consignee is a program or activity for the design, 
development, manufacture, stockpiling, testing, or other acquisition of 
a weapon of mass destruction or missile in a country that is not an 
adherent to the regime controlling such weapon or missile, unless the 
Secretary determines such export would not make a material contribution 
to such program or activity.
    (d) Chemical and Biological Weapons Proliferation Sanctions.--
            (1) Imposition of sanctions.--
                    (A) Determination by the president.--Except as 
                provided in paragraph (2)(B), the President shall 
                impose both of the sanctions described in paragraph (3) 
                if the President determines that a foreign person, on 
                or after the date of the enactment of this Act, has 
                knowingly and materially contributed--
                            (i) through the export from the United 
                        States of any goods or technology that are 
                        subject to the jurisdiction of the United 
                        States under this title, or
                            (ii) through the export from any other 
                        country of any goods or technology that would 
                        be, if they were United States goods or 
                        technology, subject to the jurisdiction of the 
                        United States under this title,
                to the efforts by any foreign country, project, or 
                entity described in subparagraph (B) to use, develop, 
                produce, stockpile, or otherwise acquire chemical or 
                biological weapons.
                    (B) Countries, projects, or entities receiving 
                assistance.--Subparagraph (A) applies in the case of--
                            (i) any foreign country that the President 
                        determines has, at any time after January 1, 
                        1980--
                                    (I) used chemical or biological 
                                weapons in violation of international 
                                law;
                                    (II) used lethal chemical or 
                                biological weapons against its own 
                                nationals; or
                                    (III) made substantial preparations 
                                to engage in the activities described 
                                in subclause (I) or (II);
                            (ii) any foreign country whose government 
                        is determined for purposes of section 106(i) to 
                        be a government that has repeatedly provided 
                        support for acts of international terrorism; or
                            (iii) any other foreign country, project, 
                        or entity designated by the President for 
                        purposes of this subsection.
                    (C) Persons against which sanctions are to be 
                imposed.--Sanctions shall be imposed pursuant to 
                subparagraph (A) on--
                            (i) the foreign person with respect to 
                        which the President makes the determination 
                        described in that subparagraph;
                            (ii) any successor entity to that foreign 
                        person;
                            (iii) any foreign person that is a parent 
                        or subsidiary of that foreign person if that 
                        parent or subsidiary knowingly assisted in the 
                        activities which were the basis of that 
                        determination; and
                            (iv) any foreign person that is an 
                        affiliate of that foreign person if that 
                        affiliate knowingly assisted in the activities 
                        which were the basis of that determination and 
                        if that affiliate is controlled in fact by that 
                        foreign person.
            (2) Consultations with and actions by foreign government of 
        jurisdiction.--
                    (A) Consultations.--If the President makes the 
                determinations described in paragraph (1)(A) with 
                respect to a foreign person, the Congress urges the 
                President to initiate consultations immediately with 
                the government with primary jurisdiction over that 
                foreign person with respect to the imposition of 
                sanctions pursuant to this subsection.
                    (B) Actions by government of jurisdiction.--In 
                order to pursue such consultations with that 
                government, the President may delay imposition of 
                sanctions pursuant to this subsection for a period of 
                up to 90 days. Following these consultations, the 
                President shall impose sanctions unless the President 
                determines and certifies to the Congress that that 
                government has taken specific and effective actions, 
                including appropriate penalties, to terminate the 
                involvement of the foreign person in the activities 
                described in paragraph (1)(A). The President may delay 
                imposition of sanctions for an additional period of up 
                to 90 days if the President determines and certifies to 
                the Congress that that government is in the process of 
                taking the actions described in the preceding sentence.
                    (C) Report to congress.--The President shall report 
                to the Congress, not later than 90 days after making a 
                determination under paragraph (1)(A), on the status of 
                consultations with the appropriate government under 
                this subsection, and the basis for any determination 
                under subparagraph (B) of this paragraph that such 
                government has taken specific corrective actions.
            (3) Sanctions.--
                    (A) Description of sanctions.--The sanctions to be 
                imposed pursuant to paragraph (1)(A) are, except as 
                provided in subparagraph (B) of this paragraph, the 
                following:
                            (i) Procurement sanction.--The United 
                        States Government shall not procure, or enter 
                        into any contract for the procurement of, any 
                        goods or services from any person described in 
                        paragraph (1)(C).
                            (ii) Import sanctions.--The importation 
                        into the United States of products produced by 
                        any person described in paragraph (1)(C) shall 
                        be prohibited.
                    (B) Exceptions.--The President shall not be 
                required to apply or maintain sanctions under this 
                subsection--
                            (i) in the case of procurement of defense 
                        articles or defense services--
                                    (I) under existing contracts or 
                                subcontracts, including the exercise of 
                                options for production quantities to 
                                satisfy United States operational 
                                military requirements;
                                    (II) if the President determines 
                                that the person or other entity to 
                                which the sanctions would otherwise be 
                                applied is a sole source supplier of 
                                the defense articles or services, that 
                                the defense articles or services are 
                                essential, and that alternative sources 
                                are not readily or reasonably 
                                available; or
                                    (III) if the President determines 
                                that such articles or services are 
                                essential to the national security 
                                under defense coproduction agreements;
                            (ii) to products or services provided under 
                        contracts entered into before the date on which 
                        the President publishes his intention to impose 
                        sanctions;
                            (iii) to--
                                    (I) spare parts,
                                    (II) component parts, but not 
                                finished products, essential to United 
                                States products or production, or
                                    (III) routine servicing and 
                                maintenance of products, to the extent 
                                that alternative sources are not 
                                readily or reasonably available;
                            (iv) to information and technology 
                        essential to United States products or 
                        production; or
                            (v) to medical or other humanitarian items.
            (4) Termination of sanctions.--The sanctions imposed 
        pursuant to this subsection shall apply for a period of at 
        least 12 months following the imposition of sanctions and shall 
        cease to apply thereafter only if the President determines and 
        certifies to the Congress that reliable information indicates 
        that the foreign person with respect to which the determination 
        was made under paragraph (1)(A) has ceased to aid or abet any 
        foreign government, project, or entity in its efforts to 
        acquire chemical or biological weapons capability as described 
        in that paragraph.
            (5) Waiver.--
                    (A) Criterion for waiver.--The President may waive 
                the application of any sanction imposed on any person 
                pursuant to this subsection, after the end of the 12-
                month period beginning on the date on which that 
                sanction was imposed on that person, if the President 
                determines and certifies to the Congress that such 
                waiver is important to the national security interests 
                of the United States.
                    (B) Notification of and report to congress.--If the 
                President decides to exercise the waiver authority 
                provided in subparagraph (A), the President shall so 
                notify the Congress not less than 20 days before the 
                waiver takes effect. Such notification shall include a 
                report fully articulating the rationale and 
                circumstances which led the President to exercise the 
                waiver authority.
            (6) Definition of foreign person.--For purposes of this 
        subsection, the term ``foreign person'' means--
                    (A) an individual who is not a citizen of the 
                United States or an alien lawfully admitted for 
                permanent residence to the United States; or
                    (B) a corporation, partnership, or other entity 
                which is created or organized under the laws of a 
                foreign country or which has its principal place of 
                business outside the United States.
    (e) Missile Proliferation Control Violations.--
            (1) Violations by united states persons.--
                    (A) Sanctions.--(i) If the President determines 
                that a United States person knowingly--
                            (I) exports, transfers, or otherwise 
                        engages in the trade of any item on the MTCR 
                        Annex, in violation of the provisions of 
                        section 38 (22 U.S.C. 2778) or chapter 7 of the 
                        Arms Export Control Act, this title, or any 
                        regulations or orders issued under any such 
                        provisions,
                            (II) conspires to or attempts to engage in 
                        such export, transfer, or trade, or
                            (III) facilitates such export, transfer, or 
                        trade by any other person,
                then the President shall impose the applicable 
                sanctions described in clause (ii).
                    (ii) The sanctions which apply to a United States 
                person under clause (i) are the following:
                            (I) If the item on the MTCR Annex involved 
                        in the export, transfer, or trade is missile 
                        equipment or technology within category II of 
                        the MTCR Annex, then the President shall deny 
                        to such United States person, for a period of 2 
                        years, licenses for the transfer of missile 
                        equipment or technology controlled under this 
                        title.
                            (II) If the item on the MTCR Annex involved 
                        in the export, transfer, or trade is missile 
                        equipment or technology within category I of 
                        the MTCR Annex, then the President shall deny 
                        to such United States person, for a period of 
                        not less than 2 years, all licenses for items 
                        the export of which is controlled under this 
                        title.
                    (B) Discretionary sanctions.--In the case of any 
                determination referred to in subparagraph (A), the 
                Secretary may pursue any other appropriate penalties 
                under section 110.
                    (C) Waiver.--The President may waive the imposition 
                of sanctions under subparagraph (A) on a person with 
                respect to a product or service if the President 
                certifies to the Congress that--
                            (i) the product or service is essential to 
                        the national security of the United States; and
                            (ii) such person is a sole source supplier 
                        of the product or service, the product or 
                        service is not available from any alternative 
                        reliable supplier, and the need for the product 
                        or service cannot be met in a timely manner by 
                        improved manufacturing processes or 
                        technological developments.
            (2) Transfers of missile equipment or technology by foreign 
        persons.--
                    (A) Sanctions.--(i) Subject to subparagraphs (C) 
                through (G), if the President determines that a foreign 
                person, after the date of the enactment of this 
                section, knowingly--
                            (I) exports, transfers, or otherwise 
                        engages in the trade of any MTCR equipment or 
                        technology that contributes to the design, 
                        development, or production of missiles in a 
                        country that is not an adherent to the MTCR and 
                        would be, if it were United States-origin 
                        equipment or technology, subject to the 
                        jurisdiction of the United States under this 
                        title,
                            (II) conspires to or attempts to engage in 
                        such export, transfer, or trade, or
                            (III) facilitates such export, transfer, or 
                        trade by any other person,
                or if the President has made a determination with 
                respect to a foreign person, under section 73(a) of the 
                Arms Export Control Act, then the President shall 
                impose on that foreign person the applicable sanctions 
                under clause (ii).
                    (ii) The sanctions which apply to a foreign person 
                under clause (i) are the following:
                            (I) If the item involved in the export, 
                        transfer, or trade is within category II of the 
                        MTCR Annex, then the President shall deny, for 
                        a period of 2 years, licenses for the transfer 
                        to such foreign person of missile equipment or 
                        technology the export of which is controlled 
                        under this title.
                            (II) If the item involved in the export, 
                        transfer, or trade is within category I of the 
                        MTCR Annex, then the President shall deny, for 
                        a period of not less than 2 years, licenses for 
                        the transfer to such foreign person of items 
                        the export of which is controlled under this 
                        title.
                            (III) If, in addition to actions taken 
                        under subclauses (I) and (II), the President 
                        determines that the export, transfer, or trade 
                        has substantially contributed to the design, 
                        development, or production of missiles in a 
                        country that is not an adherent to the MTCR, 
                        then the President shall prohibit, for a period 
                        of not less than 2 years, the importation into 
                        the United States of products produced by that 
                        foreign person.
                    (B) Inapplicability with respect to mtcr 
                adherents.--Subparagraph (A) does not apply with 
                respect to--
                            (i) any export, transfer, or trading 
                        activity that is authorized by the laws of an 
                        adherent to the MTCR, if such authorization is 
                        not obtained by misrepresentation or fraud; or
                            (ii) any export, transfer, or trade of an 
                        item to an end user in a country that is an 
                        adherent to the MTCR.
                    (C) Effect of enforcement actions by mtcr 
                adherents.--Sanctions set forth in subparagraph (A) may 
                not be imposed under this paragraph on a person with 
                respect to acts described in such subparagraph or, if 
                such sanctions are in effect against a person on 
                account of such acts, such sanctions shall be 
                terminated, if an adherent to the MTCR is taking 
                judicial or other enforcement against that person with 
                respect to such acts, or that person has been found by 
                the government of an adherent to the MTCR to be 
                innocent of wrongdoing with respect to such acts.
                    (D) Advisory opinions.--The Secretary, in 
                consultation with the Secretary of State and the 
                Secretary of Defense, may, upon the request of any 
                person, issue an advisory opinion to that person as to 
                whether a proposed activity by that person would 
                subject that person to sanctions under this paragraph. 
                Any person who relies in good faith on such an advisory 
                opinion which states that the proposed activity would 
                not subject a person to such sanctions, and any person 
                who thereafter engages in such activity, may not be 
                made subject to such sanctions on account of such 
                activity.
                    (E) Waiver and report to congress.--(i) In any case 
                other than one in which an advisory opinion has been 
                issued under subparagraph (D) stating that a proposed 
                activity would not subject a person to sanctions under 
                this paragraph, the President may waive the application 
                of subparagraph (A) to a foreign person if the 
                President determines that such waiver is essential to 
                the national security of the United States.
                    (ii) In the event that the President decides to 
                apply the waiver described in clause (i), the President 
                shall so notify the Congress not less than 20 working 
                days before issuing the waiver. Such notification shall 
                include a report fully articulating the rationale and 
                circumstances which led the President to apply the 
                waiver.
                    (F) Additional waiver.--The President may waive the 
                imposition of sanctions under subparagraph (A) on a 
                person with respect to a product or service if the 
                President certifies to the Congress that--
                            (i) the product or service is essential to 
                        the national security of the United States; and
                            (ii) such person is a sole source supplier 
                        of the product or service, the product or 
                        service is not available from any alternative 
                        reliable supplier, and the need for the product 
                        or service cannot be met in a timely manner by 
                        improved manufacturing processes or 
                        technological developments.
                    (G) Exceptions from import sanctions.--The 
                President shall not apply the sanction under this 
                subsection prohibiting the importation of the products 
                of a foreign person--
                            (i) in the case of procurement of defense 
                        articles or defense services--
                                    (I) under existing contracts or 
                                subcontracts, including the exercise of 
                                options for production quantities to 
                                satisfy requirements essential to the 
                                national security of the United States;
                                    (II) if the President determines 
                                that the person to which the sanctions 
                                would be applied is a sole source 
                                supplier of the defense articles and 
                                services, that the defense articles or 
                                services are essential to the national 
                                security of the United States, and that 
                                alternative sources are not readily or 
                                reasonably available; or
                                    (III) if the President determines 
                                that such articles or services are 
                                essential to the national security of 
                                the United States under defense 
                                coproduction agreements;
                            (ii) to products or services provided under 
                        contracts entered into before the date on which 
                        the President publishes his intention to impose 
                        the sanctions; or
                            (iii) to--
                                    (I) spare parts,
                                    (II) component parts, but not 
                                finished products, essential to United 
                                States products or production,
                                    (III) routine services and 
                                maintenance of products, to the extent 
                                that alternative sources are not 
                                readily or reasonably available, or
                                    (IV) information and technology 
                                essential to United States products or 
                                production.
            (3) Definitions.--For purposes of this subsection--
                    (A) the terms ``missile equipment or technology'' 
                and ``MTCR equipment or technology'' mean those items 
                listed in category I or category II of the MTCR Annex;
                    (B) the term ``foreign person'' means any person 
                other than a United States person;
                    (C)(i) the term ``person'' means a natural person 
                as well as a corporation, business association, 
                partnership, society, trust, any other nongovernmental 
                entity, organization, or group, and any governmental 
                entity operating as a business enterprise, and any 
                successor of any such entity; and
                    (ii) in the case of a country where it may be 
                impossible to identify a specific governmental entity 
                referred to in clause (i), the term ``person'' means--
                            (I) all activities of that government 
                        relating to the development or production of 
                        any missile equipment or technology; and
                            (II) all activities of that government 
                        affecting the development or production of 
                        aircraft, electronics, and space systems or 
                        equipment; and
                    (D) the term ``otherwise engaged in the trade of'' 
                means, with respect to a particular export or transfer, 
                to be a freight forwarder or designated exporting 
                agent, or a consignee or end user of the item to be 
                exported or transferred.
    (f) Effect on Other Laws.--The provisions of this section do not 
affect any activities subject to the reporting requirements contained 
in title V of the National Security Act of 1947.
    (g) Seeking Multilateral Support for Unilateral Sanctions.--The 
Secretary of State, in consultation with appropriate departments and 
agencies, shall seek the support of other countries for sanctions 
imposed under this section.

SEC. 112. ADMINISTRATIVE AND JUDICIAL REVIEW.

    (a) Applicability.--
            (1) Exemptions from administrative procedure.--Except as 
        provided in this section, the functions exercised under this 
        title are excluded from the operation of sections 551, 553 
        through 559, and 701 through 706 of title 5, United States 
        Code.
            (2) Judicial review.--Except as otherwise provided in this 
        section, a final agency action under this title may be reviewed 
        by appeal to the United States Court of Appeals for the 
        District of Columbia Circuit, to the extent provided in this 
        paragraph. The court's review in any such appeal shall be 
        limited to determining whether--
                    (A) a regulation--
                            (i) fails to take an action required by 
                        this title;
                            (ii) takes an action prohibited by this 
                        title; or
                            (iii) otherwise violates this title;
                    (B) an agency action violates this title;
                    (C) an agency action violates an agency regulation 
                establishing time requirements or other procedural 
                requirements of a non-discretionary nature;
                    (D) the issuance of regulations required by this 
                title complies with time restrictions imposed by this 
                title;
                    (E) license decisions are made and appeals thereof 
                are concluded in compliance with time restrictions 
                imposed by this title;
                    (F) classifications and advisory opinions are 
                issued in compliance with time restrictions imposed by 
                this title;
                    (G) unfair impact determinations under section 
                114(k) are in compliance with time restrictions imposed 
                by that section; or
                    (H) the United States has complied with the 
                requirements of section 114(k) after an unfair impact 
                determination has been made.
    (b) Procedures Relating to Civil Penalties and Sanctions.--
            (1) Administrative procedures.--Any administrative sanction 
        imposed under section 110(c) may be imposed only after notice 
        and opportunity for an agency hearing on the record in 
        accordance with sections 554 through 557 of title 5, United 
        States Code. The imposition of any such administrative sanction 
        shall be subject to judicial review in accordance with sections 
        701 through 706 of title 5, United States Code.
            (2) Availability of charging letter.--Any charging letter 
        or other document initiating administrative proceedings for the 
        imposition of sanctions for violations of the regulations 
        issued under section 108(a) shall be made available for public 
        inspection and copying.
    (c) Collection.--If any person fails to pay a civil penalty imposed 
under section 110(c), the Secretary may ask the Attorney General to 
bring a civil action in an appropriate district court to recover the 
amount imposed (plus interest at currently prevailing rates from the 
date of the final order). No such action may be commenced more than 5 
years after the order imposing the civil penalty becomes final. In such 
an action, the validity, amount, and appropriateness of such penalty 
shall not be subject to review.
    (d) Imposition of Temporary Denial Orders.--
            (1) Grounds for imposition.--In any case in which there is 
        reasonable cause to believe that a person is engaged in or is 
        about to engage in any act or practice which constitutes or 
        would constitute a violation of this title, or any regulation, 
        order, or license issued under this title, including any 
        diversion of goods or technology from an authorized end use or 
        end user, or in any case in which a criminal indictment has 
        been returned against a person alleging a violation of this 
        title or any of the statutes listed in section 110(f), the 
        Secretary may, without a hearing, issue an order temporarily 
        denying that person's United States export privileges 
        (hereafter in this subsection referred to a ``temporary denial 
        order''). A temporary denial order may be effective for no 
        longer than 180 days, but may be renewed by the Secretary, 
        following notice and an opportunity for a hearing, for 
        additional periods of not more than 180 days each.
            (2) Administrative appeals.--The person or persons subject 
        to the issuance or renewal of a temporary denial order may 
        appeal the issuance or renewal of the temporary denial order, 
        supported by briefs and other material, to an administrative 
        law judge who shall, within 15 working days after the appeal is 
        filed, issue a decision affirming, modifying, or vacating the 
        temporary denial order. The temporary denial order shall be 
        affirmed if it is shown that--
                    (A) there is reasonable cause to believe that the 
                person subject to the order is engaged in or is about 
                to engage in any act or practice which constitutes or 
                would constitute a violation of this title, or any 
                regulation, order, or license issued under this title, 
                or
                    (B) a criminal indictment has been returned against 
                the person subject to the order alleging a violation of 
                this title or any of the statutes listed in section 
                110(f).
        The decision of the administrative law judge shall be final 
        unless, within 10 working days after the date of the 
        administrative law judge's decision, an appeal is filed with 
        the Secretary. On appeal, the Secretary shall either affirm, 
        modify, reverse, or vacate the decision of the administrative 
        law judge by written order within 10 working days after 
        receiving the appeal. The written order of the Secretary shall 
        be final and is not subject to judicial review, except as 
        provided in paragraph (3). The materials submitted to the 
        administrative law judge and the Secretary shall constitute the 
        administrative record for purposes of review by the court.
            (3) Court appeals.--An order of the Secretary affirming, in 
        whole or in part, the issuance or renewal of a temporary denial 
        order may, within 15 days after the order is issued, be 
        appealed by a person subject to the order to the United States 
        Court of Appeals for the District of Columbia Circuit, which 
        shall have jurisdiction of the appeal. The court may review 
        only those issues necessary to determine whether the issuance 
        of the temporary denial order was based on reasonable cause to 
        believe that the person subject to the order was engaged in or 
        was about to engage in any act or practice which constitutes or 
        would constitute a violation of this title, or any regulation, 
        order, or license issued under this title, or if a criminal 
        indictment has been returned against the person subject to the 
        order alleging a violation of this title or any of the statutes 
        listed in section 110(f). The court shall vacate the 
        Secretary's order if the court finds that the Secretary's order 
        is arbitrary, capricious, an abuse of discretion, or otherwise 
        not in accordance with law.

SEC. 113. ENFORCEMENT.

    (a) General Authority and Designation.--
            (1) Policy guidance on enforcement.--The Secretary, in 
        consultation with the Secretary of the Treasury and the heads 
        of other appropriate departments and agencies, shall be 
        responsible for providing policy guidance on the enforcement of 
        this title.
            (2) General authorities.--(A) To the extent necessary or 
        appropriate to the enforcement of this title or to the 
        imposition of any penalty, forfeiture, or liability arising 
        under the Export Administration Act of 1979, officers or 
        employees of the Department of Commerce designated by the 
        Secretary and officers and employees of the United States 
        Customs Service designated by the Commissioner may exercise the 
        enforcement authorities described in paragraph (3).
            (B) In carrying out the enforcement authorities described 
        in paragraph (3), the Commissioner of Customs, and employees of 
        the United States Customs Service designated by the 
        Commissioner, may make investigations within or outside the 
        United States and at those ports of entry or exit from the 
        United States where officers of the United States Customs 
        Service are authorized by law to carry out such enforcement 
        responsibilities. Subject to paragraph (3), the United States 
        Customs Service is authorized, in the enforcement of this 
        title, to search, detain (after search), and seize commodities 
        or technology at those ports of entry or exit from the United 
        States where officers of the Customs Service are authorized by 
        law to conduct such searches, detentions, and seizures, and at 
        those places outside the United States where the Customs 
        Service, pursuant to agreements or other arrangements with 
        other countries, is authorized to perform enforcement 
        activities.
            (C) In carrying out the enforcement authorities described 
        in paragraph (3), the Secretary, and officers and employees of 
        the Department of Commerce designated by the Secretary, may 
        make investigations within the United States, and shall 
        conduct, outside the United States, prelicense and postshipment 
        verifications of items licensed for export and investigations 
        in the enforcement of section 108. The Secretary, and officers 
        and employees of the Department of Commerce designated by the 
        Secretary, are authorized to search, detain (after search), and 
        seize items at those places within the United States other than 
        those ports specified in subparagraph (B). The search, 
        detention (after search), or seizure of items at those ports 
        and places specified in subparagraph (B) may be conducted by 
        officers and employees of the Department of Commerce only with 
        the concurrence of the Commissioner of Customs or a person 
        designated by the Commissioner.
            (D) The Secretary and the Commissioner of Customs may enter 
        into agreements and arrangements for the enforcement of this 
        title, including foreign investigations and information 
        exchange.
            (3) Specific authorities.--(A) Any officer or employee 
        designated under paragraph (2) may do the following in carrying 
        out the enforcement authority under this title:
                    (i) Make investigations of, obtain information 
                from, make inspection of any books, records, or reports 
                (including any writings required to be kept by the 
                Secretary), premises, or property of, and take the 
                sworn testimony of, any person.
                    (ii) Administer oaths or affirmations, and by 
                subpoena require any person to appear and testify or to 
                appear and produce books, records, and other writings, 
                or both. In the case of contumacy by, or refusal to 
                obey a subpoena issued to, any such person, a district 
                court of the United States, on request of the Attorney 
                General and after notice to any such person and a 
                hearing, shall have jurisdiction to issue an order 
                requiring such person to appear and give testimony or 
                to appear and produce books, records, and other 
                writings, or both. Any failure to obey such order of 
                the court may be punished by such court as a contempt 
                thereof. The attendance of witnesses and the production 
                of documents provided for in this clause may be 
                required from any State, the District of Columbia, or 
                in any territory of the United States at any designated 
                place. Witnesses subpoenaed under this subsection shall 
                be paid the same fees and mileage as are paid witnesses 
                in the district courts of the United States.
            (B)(i) Any officer or employee of the Office of Export 
        Enforcement of the Department of Commerce who is designated by 
        the Secretary under paragraph (2), and any officer or employee 
        of the United States Customs Service who is designated by the 
        Commissioner of Customs under paragraph (2), may do the 
        following in carrying out the enforcement authority under this 
        title:
                    (I) Execute any warrant or other process issued by 
                a court or officer of competent jurisdiction with 
                respect to the enforcement of this title.
                    (II) Make arrests without warrant for any violation 
                of this title committed in his or her presence or view, 
                or if the officer or employee has probable cause to 
                believe that the person to be arrested has committed, 
                is committing, or is about to commit such a violation.
                    (III) Carry firearms.
            (ii) Officers and employees of the Office of Export 
        Enforcement designated by the Secretary under paragraph (2) 
        shall exercise the authorities set forth in clause (i) pursuant 
        to guidelines approved by the Attorney General.
            (C) Any officer or employee of the United States Customs 
        Service designated by the Commissioner of Customs under 
        paragraph (2) may do the following in carrying out the 
        enforcement authority under this title:
                    (i) Stop, search, and examine a vehicle, vessel, 
                aircraft, or person on which or whom the officer or 
                employee has reasonable cause to suspect there is any 
                item that has been, is being, or is about to be 
                exported from or transited through the United States in 
                violation of this title.
                    (ii) Detain and search any package or container in 
                which the officer or employee has reasonable cause to 
                suspect there is any item that has been, is being, or 
                is about to be exported from or transited through the 
                United States in violation of this title.
                    (iii) Detain (after search) or seize any item, for 
                purposes of securing for trial or forfeiture to the 
                United States, on or about such vehicle, vessel, 
                aircraft, or person or in such package or container, if 
                the officer or employee has probable cause to believe 
                the item has been, is being, or is about to be exported 
                from or transited through the United States in 
                violation of this title.
            (4) Other authorities not affected.--The authorities 
        conferred by this section are in addition to any authorities 
        conferred under other laws.
    (b) Forfeiture.--Any commodities or tangible items lawfully seized 
under subsection (a) by designated officers or employees shall be 
subject to forfeiture to the United States. Those provisions of law 
relating to--
            (1) the seizure, summary and judicial forfeiture, and 
        condemnation of property for violations of the customs laws,
            (2) the disposition of such property or the proceeds from 
        the sale thereof,
            (3) the remission or mitigation of such forfeitures, and
            (4) the compromise of claims,
shall apply to seizures and forfeitures incurred, or alleged to have 
been incurred, under the provisions of this subsection, insofar as 
applicable and not inconsistent with this title; except that such 
duties as are imposed upon the customs officer or any other person with 
respect to the seizure and forfeiture of property under the customs 
laws may be performed with respect to seizures and forfeitures of 
property under this subsection by the Secretary or such officers and 
employees of the Department of Commerce as may be authorized or 
designated for that purpose by the Secretary, or, upon the request of 
the Secretary, by any other agency that has authority to manage and 
dispose of seized property.
    (c) Referral of Cases.--All cases involving violations of this 
title shall be referred to the Secretary for purposes of determining 
civil penalties and administrative sanctions under section 110(c), or 
to the Attorney General for criminal action in accordance with this 
title or to both the Secretary and the Attorney General.
    (d) Undercover Investigation Operations.--
            (1) Use of funds.--With respect to any undercover 
        investigative operation conducted by the Office of Export 
        Enforcement of the Department of Commerce (hereafter in this 
        subsection referred to as ``OEE'') necessary for the detection 
        and prosecution of violations of this title--
                    (A) funds made available for export enforcement 
                under this title may be used to purchase property, 
                buildings, and other facilities, and to lease space 
                within the United States, without regard to sections 
                1341 and 3324 of title 31, United States Code, the 
                third undesignated paragraph under the heading of 
                ``miscellaneous'' of the Act of March 3, 1877, (40 
                U.S.C. 34), sections 3732(a) and 3741 of the Revised 
                Statutes of the United States (41 U.S.C. 11(a) and 22), 
                and subsections (a) and (c) of section 304, and section 
                305 of the Federal Property and Administrative Services 
                Act of 1949 (41 U.S.C. 254(a) and (c) and 255),
                    (B) funds made available for export enforcement 
                under this title may be used to establish or to acquire 
                proprietary corporations or business entities as part 
                of an undercover operation, and to operate such 
                corporations or business entities on a commercial 
                basis, without regard to section 9102 of title 31, 
                United States Code,
                    (C) funds made available for export enforcement 
                under this title and the proceeds from undercover 
                operations may be deposited in banks or other financial 
                institutions without regard to the provisions of 
                section 648 of title 18, United States Code, and 
                section 3302 of title 31, United States Code, and
                    (D) the proceeds from undercover operations may be 
                used to offset necessary and reasonable expenses 
                incurred in such operations without regard to the 
                provisions of section 3302 of title 31, United States 
                Code,
        if the Director of OEE (or an officer or employee designated by 
        the Director) certifies, in writing, that the action authorized 
        by subparagraph (A), (B), (C), or (D) for which the funds would 
        be used is necessary for the conduct of the undercover 
        operation.
            (2) Disposition of business entities.--If a corporation or 
        business entity established or acquired as part of an 
        undercover operation with a net value of more than $50,000 is 
        to be liquidated, sold, or otherwise disposed of, the Director 
        of OEE shall report the circumstances to the Secretary and the 
        Comptroller General, as much in advance of such disposition as 
        the Director of OEE or his or her designee determines is 
        practicable. The proceeds of the liquidation, sale, or other 
        disposition, after obligations incurred by the corporation or 
        business enterprise are met, shall be deposited in the Treasury 
        of the United States as miscellaneous receipts.
            (3) Deposit of proceeds.--As soon as the proceeds from an 
        OEE undercover investigative operation with respect to which an 
        action is authorized and carried out under this subsection are 
        no longer necessary for the conduct of such operation, such 
        proceeds or the balance of such proceeds remaining at the time 
        shall be deposited into the Treasury of the United States as 
        miscellaneous receipts.
            (4) Audit and report.--(A) The Director of OEE shall 
        conduct a detailed financial audit of each OEE undercover 
        investigative operation which is closed and shall submit the 
        results of the audit in writing to the Secretary. Not later 
        than 180 days after an undercover operation is closed, the 
        Secretary shall submit to the Congress a report on the results 
        of the audit.
            (B) The Secretary shall submit annually to the Congress a 
        report, which may be included in the annual report under 
        section 115, specifying the following information:
                    (i) The number of undercover investigative 
                operations pending as of the end of the period for 
                which such report is submitted.
                    (ii) The number of undercover investigative 
                operations commenced in the 1-year period preceding the 
                period for which such report is submitted.
                    (iii) The number of undercover investigative 
                operations closed in the 1-year period preceding the 
                period for which such report is submitted and, with 
                respect to each such closed undercover operation, the 
                results obtained and any civil claims made with respect 
                thereto.
            (5) Definitions.--For purposes of paragraph (4)--
                    (A) the term ``closed'', with respect to an 
                undercover investigative operation, refers to the 
                earliest point in time at which all criminal 
                proceedings (other than appeals) pursuant to the 
                investigative operation are concluded, or covert 
                activities pursuant to such operation are concluded, 
                whichever occurs later;
                    (B) the terms ``undercover investigative 
                operation'' and ``undercover operation'' mean any 
                undercover investigative operation conducted by OEE--
                            (i) in which the gross receipts (excluding 
                        interest earned) exceed $25,000, or 
                        expenditures (other than expenditures for 
                        salaries of employees) exceed $75,000, and
                            (ii) which is exempt from section 3302 or 
                        9102 of title 31, United States Code,
                except that clauses (i) and (ii) shall not apply with 
                respect to the report to the Congress required by 
                subparagraph (B) of paragraph (4); and
                    (C) the term ``employees'' means employees, as 
                defined in section 2105 of title 5, United States Code, 
                of the Department of Commerce.
    (e) Reference to Enforcement.--For purposes of this section, a 
reference to the enforcement of this title or to a violation of this 
title includes a reference to the enforcement or a violation of any 
regulation, license, or order issued under this title.

SEC. 114. EXPORT CONTROL AUTHORITIES AND PROCEDURES.

    (a) Policy Guidance.--
            (1) In general.--As directed by the President, annual 
        policy guidance shall be issued to provide detailed 
        implementing guidance to export licensing officials in all 
        appropriate departments and agencies.
            (2) Elements of annual policy review.--In order to develop 
        such annual policy guidance, export controls and other 
        regulations to implement this title shall be reviewed annually. 
        This annual policy review shall include an evaluation of the 
        benefits and costs of the imposition, extension, or removal of 
        controls under this title. This review shall include--
                    (A) an assessment by the Secretary of the economic 
                consequences of the imposition, extension, or removal 
                of controls during the preceding 12 months, including 
                the impact on United States exports or jobs;
                    (B) an assessment by the Secretary of State of the 
                objectives of the controls in effect during the 
                preceding 12 months, and the extent to which the 
                controls have served those objectives; and
                    (C) an assessment by the Secretary of Defense of 
                the impact that the imposition, extension, or removal 
                of controls during the preceding 12 months has had on 
                United States national security.
    (b) Export Control Authority and Functions.--
            (1) In general.--Unless otherwise reserved to the President 
        or a department or agency outside the Department of Commerce, 
        all power, authority, and discretion conferred by this title 
        shall be exercised by the Secretary.
            (2) Delegation of functions of the secretary.--The 
        Secretary may delegate any function under this title to the 
        Under Secretary of Commerce for Export Administration appointed 
        under subsection (d) or to any other officer of the Department 
        of Commerce.
    (c) Export Control Policy Committee.--
            (1) Establishment.--There is established an Export Control 
        Policy Committee (hereafter in this subsection referred to as 
        the ``Committee'').
            (2) Functions.--The Committee shall--
                    (A) provide policy guidance and advice to the 
                President on export control issues under this title;
                    (B) review policy recommendations proposed by the 
                Secretary and other members of the Committee; and
                    (C) receive policy recommendations from other 
                departments and agencies and resolve policy disputes 
                among departments and agencies under this title.
            (3) Membership.--The Committee shall include the Secretary, 
        the Secretary of Defense, the Secretary of Energy, the heads of 
        other relevant departments, and appropriate officials of the 
        Executive Office of the President.
            (4) Chair.--The Committee shall be chaired by the President 
        or his designee.
            (5) Delegation; other representatives.--A member of the 
        Committee under paragraph (3) may designate the deputy head of 
        his or her department or agency to serve in his or her absence 
        as a member of the Committee, but this authority may not be 
        delegated to any other individual. The chair may also invite 
        the temporary participation in the Committee's meetings of 
        representatives from other offices and agencies as appropriate 
        to the issues under consideration.
            (6) Meetings.--The chair of the Committee may call a 
        meeting of the Committee. Meetings shall not be subject to 
        section 552b of title 5, United States Code.
    (d) Under Secretary of Commerce; Assistant Secretaries.--
            (1) Appointment.--The President shall appoint, by and with 
        the advice and consent of the Senate, an Under Secretary of 
        Commerce for Export Administration who shall carry out all 
        functions of the Secretary under this title and other 
        provisions of law relating to national security, as the 
        Secretary may delegate. The President shall appoint, by and 
        with the advice and consent of the Senate, two Assistant 
        Secretaries of Commerce to assist the Under Secretary in 
        carrying out such functions.
            (2) Transition provisions.--Those individuals serving in 
        the positions of Under Secretary of Commerce for Export 
        Administration and Assistant Secretaries of Commerce under 
        section 15(a) of the Export Administration Act of 1979, on the 
        day before the date of the enactment of this Act, shall be 
        deemed to have been appointed under paragraph (1), by and with 
        the advice and consent of the Senate, as of such date of 
        enactment.
    (e) Issuance of Regulations.--The President and the Secretary may 
issue such regulations as are necessary to carry out this title. Any 
such regulations the purpose of which is to carry out section 105, 106, 
or 111(a) may be issued only after the regulations are submitted for 
review to such departments or agencies as the President considers 
appropriate. The Secretary shall consult with the appropriate export 
advisory committee appointed under section 104(f) in formulating 
regulations under this title. The second sentence of this subsection 
does not require the concurrence or approval of any official, 
department, or agency to which such regulations are submitted.
    (f) Amendments to Regulations.--If the Secretary proposes to amend 
regulations issued under this title, the Secretary shall report to the 
Committee on Banking, Housing, and Urban Affairs of the Senate and the 
Speaker of the House of Representatives on the intent and rationale of 
such amendments. Such report shall evaluate the cost and burden to the 
United States exporters of the proposed amendments in relation to any 
enhancement of licensing objectives. The Secretary shall consult with 
the appropriate export advisory committees appointed under section 
104(f) in amending regulations issued under this title.
    (g) Confidentiality of Information.--
            (1) Exemptions from disclosure.--
                    (A) Information obtained on or before june 30, 
                1980.--Except as otherwise provided by the third 
                sentence of section 108(b)(2), information obtained 
                under the Export Administration Act of 1979 and its 
                predecessor statutes on or before June 30, 1980, which 
                is deemed confidential, including Shipper's Export 
                Declarations, or with reference to which a request for 
                confidential treatment is made by the person furnishing 
                such information, shall not be subject to disclosure 
                under section 552 of title 5, United States Code, and 
                such information shall not be published or disclosed 
                unless the Secretary determines that the withholding 
                thereof is contrary to the national interest.
                    (B) Information obtained after june 30, 1980.--
                Except as otherwise provided by the third sentence of 
                section 108(b)(2), information obtained under this 
                title or under the Export Administration Act of 1979 
                after June 30, 1980, may be withheld from disclosure 
                only to the extent permitted by statute, except that 
                information submitted, obtained, or considered in 
                connection with an application for an export license or 
                other export authorization under the Export 
                Administration Act of 1979 or this title, including--
                            (i) the export license or other export 
                        authorization itself,
                            (ii) classification requests described in 
                        section 109(h)(1),
                            (iii) information obtained during the 
                        course of an assessment under subsection (k),
                            (iv) information or evidence obtained in 
                        the course of any investigation, and
                            (v) information obtained or furnished under 
                        this title in connection with international 
                        agreements, treaties, or obligations,
                shall be withheld from public disclosure and shall not 
                be subject to disclosure under section 552 of title 5, 
                United States Code, unless the release of such 
                information is determined by the Secretary to be in the 
                national interest.
            (2) Information to congress and gao.--
                    (A) In general.--Nothing in this title shall be 
                construed as authorizing the withholding of information 
                from the Congress or from the General Accounting 
                Office.
                    (B) Availability to the congress.--
                            (i) In general.--All information obtained 
                        at any time under this title or previous Acts 
                        regarding the control of exports, including any 
                        report or license application required under 
                        this title, shall be made available to any 
                        committee or subcommittee of Congress of 
                        appropriate jurisdiction upon the request of 
                        the chairman or ranking minority member of such 
                        committee or subcommittee.
                            (ii) Prohibition on further disclosure.--No 
                        committee, subcommittee, or Member of Congress 
                        shall disclose any information obtained under 
                        this title or previous Acts regarding the 
                        control of exports which is submitted on a 
                        confidential basis to the Congress under clause 
                        (i) unless the full committee to which the 
                        information is made available determines that 
                        the withholding of the information is contrary 
                        to the national interest.
                    (C) Availability to the gao.--
                            (i) In general.--Notwithstanding paragraph 
                        (1), information referred to in subparagraph 
                        (B) shall, consistent with the protection of 
                        intelligence, counterintelligence, and law 
                        enforcement sources, methods, and activities, 
                        as determined by the agency that originally 
                        obtained the information, and consistent with 
                        the provisions of section 716 of title 31, 
                        United States Code, be made available only by 
                        the agency, upon request, to the Comptroller 
                        General of the United States or to any officer 
                        or employee of the General Accounting Office 
                        authorized by the Comptroller General to have 
                        access to such information.
                            (ii) Prohibition on further disclosures.--
                        No officer or employee of the General 
                        Accounting Office shall disclose, except to the 
                        Congress in accordance with this paragraph, any 
                        such information which is submitted on a 
                        confidential basis and from which any 
                        individual can be identified.
            (3) Information exchange.--Notwithstanding paragraph (1), 
        the Secretary and the Commissioner of Customs shall exchange 
        licensing and enforcement information with each other which is 
        necessary to facilitate enforcement efforts and effective 
        license decisions.
            (4) Penalties for disclosure of confidential information.--
        Any officer or employee of the United States, or any department 
        or agency thereof, who publishes, divulges, discloses, or makes 
        known in any manner or to any extent not authorized by law any 
        confidential information that--
                    (A) he or she obtains in the course of his or her 
                employment or official duties or by reason of any 
                examination or investigation made by, or report or 
                record made to or filed with, such department or 
                agency, or officer or employee thereof, and
                    (B) is exempt from disclosure under this 
                subsection,
        shall be fined not more than $10,000, or imprisoned not more 
        than one year, or both, shall be removed from office or 
        employment, and shall be subject to a civil penalty of not more 
        than $1,000 imposed by the Secretary under section 110(c).
    (h) Authority for Seminar and Publications Fund.--The Secretary is 
authorized to cooperate with public agencies, other governments, 
international organizations, private individuals, private associations, 
and other groups in connection with seminars, publications, and related 
activities to carry out export activities, including educating the 
public or government officials on the application of this title and the 
regulations issued under this title. The Secretary is further 
authorized to accept contributions of funds, property, or services in 
connection with such activities to recover the cost of such programs 
and activities. Contributions may include payments for materials or 
services provided as part of such activities. The contributions 
collected may be retained for use in covering the costs of such 
activities, and for providing information to the public with respect to 
this title and other export control programs of the United States and 
other governments.
    (i) Support of Other Countries' Export Control Program.--The 
Secretary is authorized to participate in and provide training to 
officials of other countries on the principles and procedures for the 
implementation of effective export controls and may participate in any 
such training provided by other departments and agencies of the United 
States.
    (j) Incorporated Commodities and Technology.--
            (1) Commodities containing controlled parts and 
        components.--Controls may not be imposed under this title or 
        any other provision of law for a commodity solely because the 
        commodity contains parts or components subject to export 
        controls under this title if such parts or components--
                    (A) are essential to the functioning of the 
                commodity,
                    (B) are customarily included in sales of the 
                commodity in countries other than controlled countries, 
                and
                    (C) comprise 25 percent or less of the total value 
                of the commodity,
        unless the commodity itself, if exported, would by virtue of 
        the functional characteristics of the commodity as a whole make 
        a significant contribution to the military or proliferation 
        potential of a controlled country or end user which would prove 
        detrimental to the national security of the United States.
            (2) Reexports of foreign-made items incorporating u.s. 
        items.--
                    (A) Commodities.--(i) No authority or permission 
                may be required under section 105 or section 106 to 
                reexport to a country other than a terrorist country or 
                an embargoed country a commodity that is produced in a 
                country other than the United States and incorporates 
                commodities that are subject to the jurisdiction of the 
                United States, if the value of the controlled United 
                States content of the commodity produced in such other 
                country is 25 percent or less of the total value of the 
                commodity.
                    (ii) No authority or permission may be required 
                under section 105 or section 106 to reexport to a 
                terrorist country or to an embargoed country a 
                commodity that is produced in a country other than the 
                United States and incorporates commodities that are 
                subject to the jurisdiction of the United States, if 
                the value of the controlled United States content of 
                the commodity produced in such other country is 10 
                percent or less of the total value of the commodity.
                    (B) Technology.--(i) No authority or permission may 
                be required under section 105 or section 106 to 
                reexport to a country other than a terrorist country or 
                an embargoed country technology that is produced in a 
                country other than the United States and is commingled 
                with or drawn from technology that is produced in the 
                United States, if the value of the controlled United 
                States content of the technology produced in such other 
                country is 25 percent or less of the total value of the 
                technology.
                    (ii) No authority or permission may be required 
                under section 105 or section 106 to reexport to a 
                terrorist country or an embargoed country technology 
                that is produced in a country other than the United 
                States and is commingled with or drawn from technology 
                that is produced in the United States, if the value of 
                the controlled United States content of the technology 
                produced in such other country is 10 percent or less of 
                the total value of the technology.
                    (C) Definitions.--For purposes of this paragraph--
                            (i) the ``controlled United States 
                        content'' of a commodity or technology means 
                        those commodities or technology that--
                                    (I) are subject to the jurisdiction 
                                of the United States;
                                    (II) are incorporated into the 
                                commodity or technology; and
                                    (III) would, at the time of the 
                                reexport, require a license under 
                                section 105 or 106 if exported from the 
                                United States to a country to which the 
                                commodity or technology is to be 
                                reexported;
                            (ii) an ``embargoed country'' is a country 
                        against which an embargo is in effect under the 
                        Trading with the Enemy Act, the International 
                        Emergency Economic Powers Act, or other 
                        provision of law; and
                            (iii) a ``terrorist country'' is a country 
                        with respect to which a determination is in 
                        effect that was made under section 106(i)(1)(A) 
                        of this Act, or section 6(j)(1)(A) of the 
                        Export Administration Act of 1979, that the 
                        government of such country has repeatedly 
                        provided support for acts of international 
                        terrorism.
            (3) Treatment of technology and source code.--For purposes 
        of this subsection, technology and source code used to design 
        or produce foreign-made commodities are not deemed to be 
        incorporated into such foreign-made commodities.
            (4) Reporting requirements.--Notwithstanding paragraphs (1) 
        through (3), the Secretary may require persons to report to the 
        Department of Commerce their proposed calculations and 
        underlying data sufficient for the Department of Commerce to 
        evaluate the adequacy of those calculations and data related to 
        commodities and technology before a reexporter may rely upon 
        the exclusions from controls provided in this subsection.
            (5) Exceptions.--Paragraphs (1) and (2) do not require any 
        changes to regulations in effect on the effective date of this 
        title and, notwithstanding paragraphs (1) and (2), controls may 
        be imposed on commodities or technology transferred, after 
        March 1, 1996, from export control under the Arms Export 
        Control Act to control under this title if those commodities or 
        technology are designated by the President for exemption from 
        paragraph (1) or (2), as the case may be.
    (k) Unfair Impact on United States Exporter.--
            (1) Policy.--It is the policy of the United States that no 
        United States exporter should be affected unfairly by export 
        control policies or practices unless relief from such controls 
        would create a significant risk to the foreign policy, 
        nonproliferation, or national security interests of the United 
        States.
            (2) Relief from export controls.--(A) A person may petition 
        the Secretary for relief from current export control 
        requirements (other than control requirements specifically 
        imposed by this title or other provisions of law) on the basis 
        of foreign availability. A person may also petition the 
        Secretary for approval of an export license application on 
        other grounds which the Secretary, with the concurrence of the 
        Secretary of Defense, shall establish by regulation. The 
        Secretary shall, upon receipt of such petitions, and may, on 
        his or her initiative, conduct assessments for providing relief 
        based upon these grounds.
            (B) For purposes of this subsection, foreign availability 
        exists when the controlled item is available in fact, under 
        terms and conditions established by the Secretary with the 
        concurrence of the secretary of Defense, to controlled 
        countries or end users from sources outside the United States 
        so that the requirement for a license is or would be 
        ineffective in achieving the purpose of the control.
            (3) Provisions for relief.--The Secretary, in consultation 
        with appropriate departments and agencies, shall make 
        determinations of facts under paragraph (2), addressing, in the 
        case of a petition filed under paragraph (2), each ground for 
        relief asserted in the petition, and, subject to paragraph (4), 
        shall provide at least one of the following forms of relief to 
        persons that meet the criteria in paragraph (2):
                    (A) Change the control status of, or licensing 
                requirements on, all or some of the items in question 
                so as to eliminate the unfair impact.
                    (B) Selectively approve the sale of controlled 
                items so as to eliminate the unfair impact.
                    (C) Seek multilateral support to eliminate the 
                source of unfair impact. If relief under this 
                subparagraph is chosen and if such efforts fail to 
                achieve multilateral support, then the Secretary, not 
                later than 330 days from the date of the Secretary's 
                initiation of the assessment under paragraph (2), shall 
                provide other relief pursuant to subparagraph (A) or 
                (B) or conclude pursuant to paragraph (4) that the 
                granting of such relief would create a significant risk 
                to United States nonproliferation, foreign policy, or 
                national security interests.
        A determination that a petitioner qualifies for relief under 
        paragraph (2) shall not compel the United States to remove 
        controls from an item that remains subject to control by a 
        multilateral regime.
            (4) Exceptions from relief.--The Secretary shall provide 
        relief under paragraph (3) to a petitioner who qualifies for 
        relief under paragraph (2) unless the Secretary concludes that 
        the granting of such relief would create a significant risk to 
        United States nonproliferation, foreign policy, or national 
        security interests. In the event the Secretary determines to 
        grant such relief, he or she may do so unless the President 
        determines that such relief would create a significant risk to 
        the foreign policy, nonproliferation, or national security 
        interests of the United States.
            (5) Procedures.--
                    (A) Publication.--In any case in which the 
                President or the Secretary determines that relief under 
                paragraph (3) will not be granted, notwithstanding the 
                existence of facts that constitute a basis for granting 
                relief, the Secretary shall publish that determination, 
                together with a concise statement of its basis and the 
                estimated economic impact of the decision.
                    (B) Notice of assessments.--Whenever the Secretary 
                undertakes an assessment under paragraph (2), the 
                Secretary shall publish in the Federal Register notice 
                of the initiation of such assessment.
                    (C) Procedures for making determinations.--During 
                the conduct of an assessment under this subsection, the 
                Secretary shall consult with other appropriate 
                departments and agencies concerning the assessment. The 
                Secretary shall make a determination as to whether 
                relief is required under paragraph (2) within 120 days 
                after the date of the Secretary's receipt of the 
                petition requesting relief or the date of the 
                Secretary's initiation of the assessment (as the case 
                may be) and shall so notify the applicant. If the 
                Secretary has determined that relief is appropriate, 
                the Secretary shall, upon making such a determination, 
                submit the determination for review to the Department 
                of Defense and other appropriate departments and 
                agencies for consultations regarding the findings and 
                the relief selected. If the Secretary of Defense or 
                other department or agency head disagrees with the 
                Secretary's determination, he or she may appeal the 
                determination to the President in writing, but only on 
                the basis of the criteria set forth in paragraph (4). 
                The President shall resolve any such disagreement so 
                that, in all cases, not later than 150 days after the 
                date of the Secretary's receipt of the petition 
                requesting relief or the date of the Secretary's 
                initiation of the assessment (as the case may be), the 
                Secretary responds in writing to the petitioner and 
                submits for publication in the Federal Register, that--
                            (i) unfair impact exists and--
                                    (I) the requirement of a license 
                                has been removed;
                                    (II) the control status of all or 
                                some of the items in question has been 
                                changed so as to eliminate the unfair 
                                impact;
                                    (III) the sale of controlled items 
                                has been approved so as to eliminate 
                                the unfair impact;
                                    (IV) export controls under this 
                                title are to be maintained 
                                notwithstanding the finding under 
                                paragraph (2); or
                                    (V) the United States 
                                recommendation to remove the license 
                                requirement or change the control 
                                status will be submitted to a relevant 
                                multilateral regime for consideration 
                                for a period of not more than 180 days 
                                beginning on the date of the 
                                publication; or
                            (ii) a right to relief under paragraph (2) 
                        does not exist.
                The reasons for maintaining export controls under 
                clause (i)(IV) shall be included in the submission to 
                the petitioner and the publication. In any case in 
                which the submission for publication is not made within 
                the 150-day period required by this subparagraph, the 
                Secretary may not thereafter require a license for the 
                export of items that are the subject of the allegation 
                under paragraph (2).
                    (D) Negotiations to eliminate unfair impact.--(i) 
                In any case in which export controls are maintained 
                under this section pursuant to paragraph (4) despite a 
                determination of unfair impact, the Secretary of State 
                shall actively pursue negotiations with the governments 
                of the appropriate foreign countries for the purpose of 
                eliminating the unfair impact. No later than the 
                commencement of such negotiations, the Secretary of 
                State shall notify the Congress in writing that the 
                Secretary of State has begun such negotiations and why 
                it is important that export controls on the items 
                involved be maintained to avoid a significant risk to 
                the foreign policy, nonproliferation, or national 
                security interests of the United States.
                    (ii) Whenever the Secretary of State has reason to 
                believe that items subject to export controls by the 
                United States may become available in fact from other 
                countries to controlled countries and that such 
                availability can be prevented or eliminated by means of 
                negotiations with such other countries, the Secretary 
                of State shall promptly initiate negotiations with the 
                governments of such other countries to prevent such 
                foreign availability.
            (6) Sharing of information.--Each department or agency of 
        the United States, including any intelligence agency, and all 
        contractors with any such department or agency, shall, upon the 
        request of the Secretary and consistent with the protection of 
        intelligence sources and methods, furnish information to the 
        Department of Commerce concerning foreign availability of items 
        subject to export controls under this title. Consistent with 
        the protection of intelligence sources and methods and 
        classification restrictions, each such department or agency 
        shall allow the Department of Commerce access to such 
        information from a laboratory or other facility within such 
        department or agency.
            (7) Congressional notification and reporting 
        requirements.--The Secretary shall each year notify the 
        Congress of all petitions for relief under this subsection and 
        the status of all such petitions.
    (l) Exceptions for Medical and Humanitarian Purposes.--This title 
does not authorize controls on--
            (1) medicine or medical supplies; or
            (2) donations of items that are intended to meet basic 
        human needs, including food, educational materials, seeds, hand 
        tools, water resources equipment, clothing and shelter 
        materials, and basic household supplies.
    (m) Sanctity of Existing Contracts and Licenses.--
            (1) In general.--In the case of a control imposed under 
        section 106 on the export of any items, the President may not 
        prohibit the export of those items--
                    (A) in performance of a contract, agreement, or 
                other contractual commitment entered into before the 
                date on which the control is initially imposed, or the 
                date on which the President reports to the Congress the 
                President's intention to impose the control, whichever 
                date occurs first, or
                    (B) under a license or other authorization issued 
                under this title before the date on which the control 
                is initially imposed, or the date on which the 
                President reports to the Congress the President's 
                intention to impose the control, whichever date occurs 
                first.
            (2) Exception.--The prohibition in paragraph (1) shall not 
        apply if the President determines and certifies to the Congress 
        that--
                    (A) a breach of the peace poses a serious and 
                direct threat to the strategic interest of the United 
                States;
                    (B) the prohibition of exports under each such 
                contract, agreement, commitment, license, or 
                authorization will be directly instrumental in 
                remedying the situation posing the direct threat; and
                    (C) the export controls will continue only so long 
                as the direct threat persists.
        The authority of the President to make determinations under 
        this paragraph may not be delegated.
    (n) Publication of Decisions and Actions of the Secretary.--
            (1) In general.--The Secretary shall publish in the Federal 
        Register, to the greatest extent practicable, actions, 
        procedures, and decisions of the Secretary under this title, 
        taking into account restrictions on disclosure of classified or 
        confidential information. The Secretary shall publish in the 
        Federal Register calculations by the Secretary of commonly-used 
        control index parameters for commodities and technologies, 
        including all officially accepted composite theoretical 
        performance calculations for computers and microprocessors, 
        except in a case in which a private party requested the 
        calculation and asked that it not be published.
            (2) Notice of revisions.--Whenever the Secretary makes any 
        revision in the control index with respect to any commodity or 
        technology, or with respect to any country or destination 
        affected by controls imposed under section 105 or section 106, 
        the Secretary shall publish in the Federal Register a notice of 
        such revision and shall specify in such notice under which 
        authority the revision is being made.
    (o) Notification of the Public; Consultation With Industry; 
Recordkeeping.--
            (1) Notification of the public.--The Secretary shall keep 
        the public fully apprised of changes in export control policy 
        and procedures instituted under this title with a view to 
        encouraging trade.
            (2) Consultation with industry.--The Secretary shall meet 
        regularly with export advisory committees appointed under 
        section 104(f) in order to obtain their views on United States 
        export control policy and the foreign availability of 
        commodities and technology.
    (p) Export Control Duties.--
            (1) Assignment.--The Secretary shall ensure that at least 
        one full-time representative of the Department of Commerce 
        stationed in the People's Republic of China has duties related 
        to the implementation of export controls under this title. 
        These duties shall include giving priority to conducting 
        postshipment verifications and prelicense checks, and to using 
        other means to ensure that United States exports from the 
        United States of dual use items are not diverted to 
        unauthorized end uses or end users.
            (2) Other resources.--The Secretary shall ensure that 
        appropriate resources are made available and, if necessary, new 
        procedures established to assist the representative or 
        representatives of the Department of Commerce referred to in 
        paragraph (1) in carrying out their duties and to ensure that 
        sensitive items are not diverted to inappropriate end uses or 
        end users in the People's Republic of China. Efforts to carry 
        out this paragraph shall include appropriate coordination with 
        United States officials in Hong Kong to ensure that sensitive 
        items exported to Hong Kong are protected from diversion.
            (3) Authorization of appropriations.--There are authorized 
        to be appropriated such sums as may be necessary to carry out 
        paragraph (1).
    (q) Authorization for Technical Data.--A license authorizing the 
export of any commodities or technology under this title shall also 
authorize the export of operation technical data related to such 
commodities or technology, if the technical level of the data does not 
exceed the minimum necessary to install, repair, maintain, inspect, 
operate, or use the commodities or technology.
    (r) Licenses for Spare Parts Not Required.--A license shall not be 
required under this title for replacement parts which are exported to 
replace on a one-for-one basis parts that were in a commodity that was 
lawfully exported from the United States, unless the President 
determines that such a license should be required for such parts.

SEC. 115. ANNUAL REPORT.

    (a) Contents.--Not later than March 1 of each year, the Secretary 
shall submit to the Congress a report on the administration of this 
title during the preceding calendar year. All agencies shall cooperate 
fully with the Secretary in providing information for such report. Such 
report shall include detailed information on the following:
            (1) The implementation of the policies set forth in section 
        103, including delegations of authority by the President under 
        section 104(d), consultations with the export advisory 
        committees established under section 104(f), and any changes in 
        the exercise of the authorities contained in sections 105(a), 
        106(a), 107(a), and 108(a).
            (2) With respect to multilateral export controls imposed or 
        maintained under section 105, the following:
                    (A) Adjustments to multilateral export controls.
                    (B) The exercise of the Secretary's authority under 
                section 105(e).
            (3) Determinations made under section 114(k), the criteria 
        used to make such determinations, the removal of any export 
        controls under such section, and any evidence demonstrating a 
        need to maintain export controls notwithstanding determinations 
        made under paragraph (2) of section 114(k).
            (4) Short supply controls and monitoring under section 107.
            (5) Organizational and procedural changes undertaken in 
        furtherance of the policies set forth in this title, including 
        changes to increase the efficiency of the export licensing 
        process and to fulfill the requirements of section 109, 
        including an accounting of appeals received, and actions taken 
        pursuant thereto, under section 109(g).
            (6) Violations under section 110 and enforcement activities 
        under section 113.
            (7) The issuance of regulations under this title.
            (8) The results, in as much detail as may be included 
        consistent with the strategic and political interests of the 
        United States and the need to maintain the confidentiality of 
        proprietary information, of the reviews of the multilateral 
        control list, and any revisions to the list resulting from such 
        reviews, required by section 105.
    (b) Comparative Report on Export Control Systems Among Countries.--
The Secretary shall include, in each annual report under subsection 
(a), a description of significant differences between the export 
control laws and regulations of the United States and its major trade 
competitors, particularly as these differences relate to the 
implementation of multilateral export control regimes. The Secretary 
shall include--
            (1) an assessment of the impact of these differences on 
        important interests of the United States;
            (2) a description of the extent to which the executive 
        branch intends to address these differences; and
            (3) a listing of unilateral controls and embargoes imposed 
        by the United States that are in effect, with a quantification 
        of their economic impact, including the effect of such controls 
        and embargoes on employment in the United States.
    (c) GAO Report.--The Comptroller General shall prepare and submit 
to the Congress, not later than 120 days after each report under 
subsection (b) is submitted, an analysis of such report.

SEC. 116. DEFINITIONS.

    As used in this title:
            (1) Affiliate.--The term ``affiliate'' includes both 
        governmental entities and commercial entities that are 
        controlled in fact by a country.
            (2) Adherent.--An ``adherent'' to a multilateral regime is 
        a country that is a member of that regime or that, pursuant to 
        an international understanding to which the United States is a 
        party, controls exports in accordance with the criteria and 
        standards of that regime.
            (3) Australia group.--The term ``Australia Group'' means 
        the multilateral regime in which the United States participates 
        that seeks to prevent the proliferation of chemical and 
        biological weapons.
            (4) Chemical weapons convention.--The term ``Chemical 
        Weapons Convention'' refers to the Convention on the 
        Prohibition of the Development, Production, Stockpiling and Use 
        of Chemical Weapons and on Their Destruction of 1992.
            (5) Commodity.--The term ``commodity'' means any article, 
        natural or manmade substance, material, software, source code, 
        supply, or manufactured product, including inspection and test 
        equipment, and excluding technical data.
            (6) Control or controlled.--The terms ``control'' and 
        ``controlled'' refer to a licensing requirement, a written 
        reexport authorization requirement, or a prohibition on an 
        export.
            (7) Control index.--The term ``control index'' means the 
        United States Commodity Control Index established under section 
        104(b)(1).
            (8) Controlled country.--The term ``controlled country'' 
        means a country to which exports are controlled under section 
        105 or 106.
            (9) Export.--(A) The term ``export''--
                    (i) means--
                            (I) an actual shipment, transfer, or 
                        transmission of items out of the United States; 
                        and
                            (II) a transfer to any person of items 
                        either within the United States or outside of 
                        the United States with the knowledge or intent 
                        that the items will be shipped, transferred, or 
                        transmitted outside the United States; and
                    (ii) includes the term ``reexport''.
            (B) The Secretary may further define the term export by 
        regulation to include, among other concepts, that--
                    (i) a transfer of items in the United States to an 
                embassy or affiliate of a country is an export to the 
                country,
                    (ii) disclosure of technology to a foreign person 
                is deemed to be an export to the country of which he or 
                she is a national, and
                    (iii) transfer of effective control from one 
                country to another over a satellite above the earth is 
                an export from one country to another.
            (C) As used in this paragraph, the term ``foreign person'' 
        means--
                    (i) an individual who is not a United States 
                citizen or an alien lawfully admitted for permanent 
                residence to the United States;
                    (ii) any corporation, partnership, business 
                association, society, trust, organization, or other 
                nongovernmental entity created or organized under the 
                laws of a foreign country or that has its principal 
                place of business outside the United States; and
                    (iii) any governmental entity of a foreign country 
                that is operating as a business enterprise.
            (10) Export control regime, multilateral export control 
        regime, multilateral regime, and regime.--The terms ``export 
        control regime'', ``multilateral export control regime'', 
        ``multilateral regime'', and ``regime'' each means an 
        international agreement or an arrangement among two or more 
        countries, including the United States, a purpose of which is 
        to coordinate national export control policies of participating 
        countries regarding certain items. Such terms include the 
        Australia Group, the Wassenaar Arrangement, the MTCR, and the 
        Nuclear Supplies Group.
            (11) Foreign availability, available in fact to controlled 
        countries.--The terms ``foreign availability'' and ``available 
        in fact to controlled countries'' each include production or 
        availability of any item from any country--
                    (A) in which the item is not restricted for export 
                to any controlled country; or
                    (B) in which such export restrictions are 
                determined by the Secretary to be ineffective.
        For purposes of subparagraph (B), the mere inclusion of items 
        on a list of items subject to export controls imposed pursuant 
        to a multilateral export control regime shall not alone 
        constitute credible evidence that the government of a country 
        provides an effective means of controlling the export of such 
        items to controlled countries.
            (12) Item.--The term ``item'' means any commodity, 
        technology, or other information.
            (13) Licensing requirement.--The term ``licensing 
        requirement'' includes any restriction or condition, including 
        recordkeeping and reporting, imposed by the Secretary under 
        this title in licensing the export of a commodity, technology, 
        or other information.
            (14) Member of an export control regime.--A ``member'' of 
        an export control regime, multilateral export control regime, 
        multilateral regime, or regime is a country that participates 
        in that regime.
            (15) Missile.--The term ``missile'' means any missile 
        system or component listed in category I of the MTCR Annex, and 
        any other unmanned delivery system or component of similar 
        capability, as well as the specially designed production 
        facilities for these systems.
            (16) Missile technology control regime; mtcr.--The term 
        ``Missile Technology Control Regime'' or ``MTCR'' means the 
        policy statement and guidelines between the United States, the 
        United Kingdom, the Federal Republic of Germany, France, Italy, 
        Canada, and Japan, announced on April 16, 1987, to restrict 
        sensitive missile-related transfers based on the MTCR Annex, 
        and any amendments thereto.
            (17) MTCR annex.--The term ``MTCR Annex'' means the 
        Equipment and Technology Annex of the MTCR, and any amendments 
        thereto.
            (18) Nuclear explosive device.--The term ``nuclear 
        explosive device'' means any device, whether assembled or 
        disassembled, that is designed to produce an instantaneous 
        release of an amount of nuclear energy from special nuclear 
        material that is greater than the amount of energy that would 
        be released from the detonation of one pound of trinitrotoluene 
        (TNT).
            (19) Nuclear suppliers' group.--The term ``Nuclear 
        Suppliers' Group'' means the multilateral arrangement in which 
        the United States participates whose purpose is to restrict the 
        transfers of items with relevance to the nuclear fuel cycle or 
        nuclear explosive applications.
            (20) Person.--Except as provided in section 111, the term 
        ``person'' includes--
                    (A) the singular and the plural and any individual, 
                partnership, corporation, business association, 
                society, trust, organization, or any other group 
                created or organized under the laws of a country; and
                    (B) any government, or any governmental body, 
                corporation, trust, agency, department, or group, 
                operating as a business enterprise.
            (21) Reexport.--The term ``reexport'' means the shipment, 
        transfer, transshipment, or diversion of items from one foreign 
        country to another.
            (22) Secretary.--The term ``Secretary'' means the Secretary 
        of Commerce or any successor officer performing functions of 
        the Secretary of Commerce under this title.
            (23) Technology.--The term ``technology'' means specific 
        information that is necessary for the development, production, 
        or use of a commodity, including source code, and that takes 
        the form of technical data or technical assistance.
            (24) Unilateral and unilaterally.--The terms ``unilateral'' 
        and ``unilaterally'', with respect to an export control on a 
        commodity or technology, refer to a control that is not 
        similarly imposed in similar circumstances by any country other 
        than the United States, and that materially restricts the 
        export of the commodity or technology.
            (25) United states.--The term ``United States'' means the 
        States of the United States, the District of Columbia, and any 
        commonwealth, territory, dependency, or possession of the 
        United States, and includes the outer Continental Shelf, as 
        defined in section 2(a) of the Outer Continental Shelf Lands 
        Act (43 U.S.C. 1331(a)).
            (26) United states person.--The term ``United States 
        person'' means any United States citizen, resident, or national 
        (other than an individual resident outside the United States 
        and employed by other than a United States person), any 
        domestic concern (including any permanent domestic 
        establishment of any foreign concern) and any foreign 
        subsidiary or affiliate (including any permanent foreign 
        establishment) of any domestic concern which is controlled in 
        fact by such domestic concern, as determined under regulations 
        of the President.
            (27) Wassenaar arrangement.--The term ``Wassenaar 
        Arrangement'' means the multilateral regime in which the United 
        States participates that seeks to promote transparency and 
        responsibility with regard to the transfers of conventional 
        armaments and sensitive dual-use goods and technologies.
            (28) Weapon of mass destruction.--The term ``weapon of mass 
        destruction'' means any chemical, biological, or nuclear 
        weapon, including a nuclear explosive device.

SEC. 117. EFFECTS ON OTHER ACTS.

    (a) Commodity Jurisdiction.--
            (1) Coordination of controls.--The authority granted under 
        this title and under section 38 of the Arms Export Control Act 
        (22 U.S.C. 2778) shall be exercised in such a manner as to 
        achieve effective coordination between the licensing systems 
        under this title and such section 38 and to share information 
        regarding the trustworthiness of parties.
            (2) Elimination of overlapping controls.--Notwithstanding 
        any other provision of law, no item may be included on both the 
        control index and the United States Munitions List after the 
        date of the enactment of this Act.
            (3) Commodity jurisdiction dispute resolution.--The 
        President shall establish procedures for the resolution of 
        commodity jurisdiction disputes among departments and agencies 
        of the United States. Such disputes shall normally be resolved 
        within 60 days, and the procedures shall allow disputes to be 
        referred to the President normally within 90 days. These 
        procedures shall also--
                    (A) require the Secretary and the Secretary of 
                State to refer matters to each other in accordance with 
                their respective jurisdictions;
                    (B) require transparency, among the Secretary, the 
                Secretary of State, and the Secretary of Defense, in 
                commodity jurisdiction cases and commodity 
                classification requests and determinations;
                    (C) provide for interagency meetings and 
                consultations to permit the free exchange of views 
                regarding significant jurisdictional issues; and
                    (D) provide deadlines for action and standards for 
                decision, and ensure that disputes that cannot be 
                resolved may be referred to the President by the 
                Secretary of State, the Secretary of Defense, or the 
                Secretary.
    (b) In General.--Except as otherwise provided in this title, 
nothing in this title shall be construed to modify, repeal, supersede, 
or otherwise affect the provisions of any other laws authorizing 
control over exports of any commodities, technology, or other 
information.
    (c) Licensing Process.--The provisions of section 109 shall 
supersede the procedures published pursuant to section 309(c) of the 
Nuclear Non-Proliferation Act of 1978 (42 U.S.C. 2139a(c)) to the 
extent such procedures are inconsistent with the provisions of section 
109.
    (d) Amendments to the International Emergency Economic Powers 
Act.--
            (1) Exercise of presidential authority.--(A) Section 204(b) 
        of the International Emergency Economic Powers Act (50 U.S.C. 
        1703(b)) is amended--
                    (i) by striking ``and'' at the end of paragraph 
                (4);
                    (ii) by striking the period at the end of paragraph 
                (5) and inserting ``; and''; and
                    (iii) by adding at the end the following:
            ``(6) if the action is being taken unilaterally--
                    ``(A) why the President believes the action is 
                necessary to meet the unusual and extraordinary threat 
                referred to in paragraph (2); and
                    ``(B) what steps the President is taking to gain 
                multilateral support for the action.''.
            (B) Section 204(c) of that Act (50 U.S.C. 1703(c)) is 
        amended--
                    (i) by striking ``(5)'' and inserting ``(6)''; and
                    (ii) by striking the period and inserting ``, and, 
                in the case of controls referred to in paragraph (6) of 
                subsection (b), the President shall report to the 
                Congress on the economic losses that have occurred as a 
                result of the unilateral action''.
            (2) Confidentiality of information.--The International 
        Emergency Economic Powers Act is amended--
                    (A) by redesignating section 208 as section 209; 
                and
                    (B) by inserting after section 207 the following:

``SEC. 208. CONFIDENTIALITY OF INFORMATION.

    ``(a) Exemptions From Disclosure.--Information obtained under this 
title before or after the enactment of this section may be withheld 
only to the extent permitted by statute, except that information 
submitted, obtained, or considered in connection with any transaction 
that would otherwise be prohibited under this title, including--
            ``(1) the license or other authorization itself,
            ``(2) classification requests or other inquiries on the 
        applicability of export license requirements to a proposed 
        transaction or series of transactions,
            ``(3) information or evidence obtained in the course of any 
        investigation, and
            ``(4) information obtained or furnished under this title in 
        connection with international agreements, treaties, or 
        obligations,
shall be withheld from public disclosure, and shall not be subject to 
disclosure under section 552 of title 5, United States Code, unless the 
release of such information is determined by the Secretary of Commerce 
or the Secretary of the Treasury to be in the national interest. In the 
case of information obtained or furnished under this title in 
connection with international agreements, treaties, or obligations, 
such a determination may be made only after consultation with the 
Secretary of State.
    ``(b) Information to Congress and GAO.--
            ``(1) In general.--Nothing in this title shall be construed 
        as authorizing the withholding of information from the Congress 
        or from the General Accounting Office.
            ``(2) Availability to the congress.--
                    ``(A) In general.--All information obtained at any 
                time under this title regarding the control of exports, 
                including any report or license application required 
                under this title, shall be made available to any 
                committee or subcommittee of Congress of appropriate 
                jurisdiction upon the request of the chairman or 
                ranking minority member of such committee or 
                subcommittee.
                    ``(B) Prohibition on further disclosure.--No 
                committee, subcommittee, or Member of Congress shall 
                disclose any information obtained under this title or 
                previous Acts regarding the control of exports which is 
                submitted on a confidential basis to the Congress under 
                subparagraph (A) unless the full committee to which the 
                information is made available determines that the 
                withholding of the information is contrary to the 
                national interest.
            ``(3) Availability to the gao.--
                    ``(A) In general.--Notwithstanding paragraph (1), 
                information referred to in paragraph (2) shall, 
                consistent with the protection of intelligence, 
                counterintelligence, and law enforcement sources, 
                methods, and activities, as determined by the agency 
                that originally obtained the information, and 
                consistent with the provisions of section 716 of title 
                31, United States Code, be made available only by the 
                agency, upon request, to the Comptroller General of the 
                United States or to any officer or employee of the 
                General Accounting Office authorized by the Comptroller 
                General to have access to such information.
                    ``(B) Prohibition on further disclosures.--No 
                officer or employee of the General Accounting Office 
                shall disclose, except to the Congress in accordance 
                with this subsection, any such information which is 
                submitted on a confidential basis and from which any 
                individual can be identified.
    ``(c) Penalties for Disclosure of Confidential Information.--Any 
officer or employee of the United States, or any department or agency 
thereof, who publishes, divulges, discloses, or makes known in any 
manner or to any extent not authorized by law any confidential 
information that--
            ``(1) he or she obtains in the course of his or her 
        employment or official duties or by reason of any examination 
        or investigation made by, or report or record made to or filed 
        with, such department or agency, or officer or employee 
        thereof, and
            ``(2) is exempt from disclosure under this section,
shall be fined not more than $10,000, or imprisoned not more than 1 
year, or both, shall be removed from office or employment, and shall be 
subject to a civil penalty of not more than $1,000.''.
            (3) Penalties.--Section 206 of the International Emergency 
        Economic Powers Act (50 U.S.C. 1705) is amended--
                    (A) in subsection (a) by inserting ``, or attempts 
                to violate,'' after ``violates''; and
                    (B) in subsection (b) by inserting ``, or willfully 
                attempts to violate,'' after ``violates''.
    (e) Amendments to the Trading With the Enemy Act.--Section 16 of 
the Trading With the Enemy Act (50 U.S.C. App. 16) is amended--
            (1) in subsection (a)--
                    (A) by inserting ``, or attempt to violate,'' after 
                ``violate'' the first place it appears; and
                    (B) by inserting ``attempt to violate,'' after 
                ``violate,'' the second place it appears; and
            (2) in subsection (b)(1) by inserting ``, or attempts to 
        violate,'' after ``violates''.
    (f) Report on OFAC and ODTC.--
            (1) Study on ofac.--The Secretary of the Treasury shall 
        study ways to make the operations of the Office of Foreign 
        Assets Control of the Department of the Treasury more effective 
        and efficient in responding to licensing requests and other 
        inquiries of United States exporters, including through the 
        upgrading of technology in that office.
            (2) Study on odtc.--The Secretary of State shall study ways 
        to make the Office of Defense Trade Controls of the Department 
        of State more effective and efficient in responding to 
        licensing requests and other inquiries of United States 
        exporters, including through the upgrading of technology in 
        that office.
            (3) Submission of reports.--Not later than 6 months after 
        the date of the enactment of this Act, the Secretary of the 
        Treasury shall submit to the Congress a report on the study 
        conducted under paragraph (1) and the Secretary of State shall 
        submit to the Congress a report on the study conducted under 
        paragraph (2).

SEC. 118. SECONDARY ARAB BOYCOTT.

    (a) Sense of Congress.--
            (1) Ending secondary boycott.--It is the sense of the 
        Congress that the countries of the Arab League should end the 
        secondary Arab boycott.
            (2) Actions to end secondary boycott.--The United States 
        will consider the secondary Arab boycott to have ended when--
                    (A) the Arab League issues a public pronouncement 
                that the Arab League has ended the secondary Arab 
                boycott;
                    (B) all activities carried out by the Central 
                Office for the Boycott of Israel in support of the 
                secondary Arab boycott have been terminated;
                    (C) the Arab League and the individual countries 
                that are members of the Arab League have terminated the 
                practice of barring United States persons and foreign 
                companies that do not comply with the secondary Arab 
                boycott from doing business with countries that are 
                members of the Arab League, and have declared null and 
                void any existing list of such barred persons and 
                companies; and
                    (D) the Arab League, and the individual countries 
                that are the members of the Arab League, have ceased 
                requesting United States persons to take actions 
                prohibited under section 108(a).
    (b) Definition.--For purposes of this section, the term ``secondary 
Arab boycott'' means the refusal to do business with persons who do not 
comply with requests to take any action prohibited under section 108(a) 
with respect to Israel.

SEC. 119. CONFORMING AMENDMENTS.

    (a) Arms Export Control Act.--
            (1) Section 38 of the Arms Export Control Act (22 U.S.C. 
        2778) is amended--
                    (A) in subsection (e)--
                            (i) in the first sentence by striking 
                        ``subsections (c)'' and all that follows 
                        through ``12 of such Act'' and inserting 
                        ``subsections (b), (c), (d) and (e) of section 
                        110 of the Export Administration Act of 1996, 
                        by subsections (a) and (b) of section 113 of 
                        such Act, and by section 114(g) of such Act''; 
                        and
                            (ii) in the third sentence by striking 
                        ``11(c) of the Export Administration Act of 
                        1979'' and inserting ``110(c) of the Export 
                        Administration Act of 1996''; and
                    (B) in subsection (g)(1)(A) by striking clause (ii) 
                and inserting the following:
                    ``(ii) section 110 of the Export Administration Act 
                of 1996,''.
            (2) Section 39A(c) of the Arms Export Control Act, as added 
        by the Foreign Relations Authorization Act, Fiscal Years 1994 
        and 1995, is amended--
                    (A) by striking ``(c),'' and all that follows 
                through ``12(a) of such Act'' and inserting ``(c), (d), 
                and (e) of section 110, section 112(c), and subsections 
                (a) and (b) of section 113, of the Export 
                Administration Act of 1996''; and
                    (B) by striking ``11(c)'' and inserting ``110(c)''.
            (3) Section 40(k) of the Arms Export Control Act (22 U.S.C. 
        2780(k)) is amended--
                    (A) by striking ``11(c), 11(e), 11(g), and 12(a) of 
                the Export Administration Act of 1979'' and inserting 
                ``110(b), 110(c), 110(e), 113(a), and 113(b) of the 
                Export Administration Act of 1996''; and
                    (B) by striking ``11(c)'' and inserting ``110(c)''.
            (4) Section 73A of the Arms Export Control Act, as added by 
        the Foreign Relations Authorization Act, Fiscal Years 1995 and 
        1995, is amended by striking ``a MTCR adherent'' and inserting 
        ``an MTCR adherent''.
    (b) Other Provisions of Law.--
            (1) Section 5(b)(4) of the Trading with the Enemy Act (12 
        U.S.C. 95a(4); 50 U.S.C. App. 5(b)(4)) is amended by striking 
        ``section 5 of the Export Administration Act of 1979, or under 
        section 6 of that Act to the extent that such controls promote 
        the nonproliferation or antiterrorism policies of the United 
        States'' and inserting ``the Export Administration Act of 
        1996''.
            (2) Section 502B(a)(2) of the Foreign Assistance Act of 
        1961 (22 U.S.C. 2304(a)(2)) is amended in the second sentence--
                    (A) by striking ``Export Administration Act of 
                1979'' the first place it appears and inserting 
                ``Export Administration Act of 1996''; and
                    (B) by striking ``Act of 1979)'' and inserting 
                ``Act of 1996)''.
            (3)(A) Section 140(a) of the Foreign Relations 
        Authorization Act, Fiscal Years 1988 and 1989 (22 U.S.C. 
        2656f(a)) is amended--
                    (i) in paragraph (1)(B) by inserting ``or section 
                106(i) of the Export Administration Act of 1996'' after 
                ``Act of 1979''; and
                    (ii) in paragraph (2) by striking ``6(j) of the 
                Export Administration Act of 1979'' and inserting 
                ``106(i) of the Export Administration Act of 1996''.
            (B) For purposes of the report required by March 31, 1996, 
        under section 140(a) of the Foreign Relations Authorization 
        Act, Fiscal Years 1988 and 1989, the reference in paragraph (2) 
        of such section to ``section 106(i) of the Export 
        Administration Act of 1996'' shall be deemed to refer to 
        ``section 6(j) of the Export Administration Act of 1979 or 
        section 106(i) of the Export Administration Act of 1996''.
            (4) Section 40(e)(1) of the State Department Basic 
        Authorities Act of 1956 (22 U.S.C. 2712(e)(1)) is amended by 
        striking ``6(j)(1) of the Export Administration Act of 1979'' 
        and inserting ``106(i)(1) of the Export Administration Act of 
        1996''.
            (5) Section 110 of the International Security and 
        Development Cooperation Act of 1980 (22 U.S.C. 2778a) is 
        amended by striking ``Act of 1979'' and inserting ``Act of 
        1996''.
            (6) Section 205(d)(4)(B) of the State Department Basic 
        Authorities Act of 1956 (22 U.S.C. 4305(d)(4)(B)) is amended by 
        striking ``6(j) of the Export Administration Act of 1979'' and 
        inserting ``106(i) of the Export Administration Act of 1996''.
            (7) Section 203(b)(3) of the International Emergency 
        Economic Powers Act (50 U.S.C. 1702(b)(3)) is amended by 
        striking ``section 5 of the Export Administration Act of 1979, 
        or under section 6 of such Act to the extent that such controls 
        promote the nonproliferation or antiterrorism policies of the 
        United States'' and inserting ``the Export Administration Act 
        of 1996''.
            (8) Section 491(f) of the Forest Resources Conservation and 
        Shortage Relief Act of 1990 (16 U.S.C. 620c(f)) is repealed.
            (9) Section 499 of the Forest Resources Conservation and 
        Shortage Relief Act of 1990 (16 U.S.C. 620j) is amended by 
        striking ``section 7 of the Export Administration Act of 1979'' 
        and inserting ``section 107 of the Export Act of 1996''.
            (10) Section 1605 (a)(7)(A) of title 28, United States 
        Code, is amended by striking ``6(j) of the Export 
        Administration Act of 1979 (50 U.S.C. App. 2405(j))'' and 
        inserting ``106(i) of the Export Administration Act of 1996''.
            (11) Section 2332d(a) of title 18, United States Code, is 
        amended by striking ``6(j) of the Export Administration Act (50 
        U.S.C. App. 2405)'' and inserting ``106(i) of the Export 
        Administration Act of 1996''.
            (12) Section 620H (a)(1) of the Foreign Assistance Act of 
        1961 (22 U.S.C. 2378(a)(1)) is amended by striking ``6(j) of 
        the Export Administration Act of 1979 (50 U.S.C. App. 
        2405(j))'' and inserting ``106(i) of the Export Administration 
        Act of 1996''.
            (13) Section 1621(a) of the International Financial 
        Institutions Act (22 U.S.C. 262p-4q(a)) is amended by striking 
        ``6(j) of the Export Administration Act of 1979 (50 U.S.C. App. 
        2405(j))'' and inserting ``106(i) of the Export Administration 
        Act of 1996''.
    (c) Repeal.--The Export Administration Act of 1979 is repealed.

SEC. 120. EXPIRATION DATE.

    This title expires on June 30, 2001.

SEC. 121. SAVINGS PROVISIONS.

    (a) In General.--All delegations, rules, regulations, orders, 
determinations, licenses, or other forms of administrative action which 
have been made, issued, conducted, or allowed to become effective 
under--
            (1) the Export Control Act of 1949, the Export 
        Administration Act of 1969, or the Export Administration Act of 
        1979, or
            (2) those provisions of the Arms Export Control Act which 
        are amended by section 119,
and are in effect at the time this title takes effect, shall continue 
in effect according to their terms until modified, superseded, set 
aside, or revoked under this title or the Arms Export Control Act.
    (b) Administrative and Judicial Proceedings.--
            (1) Export administration act.--This title shall not affect 
        any administrative or judicial proceedings commenced or any 
        application for a license made, under the Export Administration 
        Act of 1979, which is pending at the time this title takes 
        effect. Any such proceedings, and any action on such 
        application, shall continue under the Export Administration Act 
        of 1979 as if that Act had not been repealed.
            (2) Other provisions of law.--This title shall not affect 
        any administrative or judicial proceedings commenced or any 
        application for a license made, under those provisions of the 
        Arms Export Control Act which are amended by section 119, if 
        such proceedings or application is pending at the time this 
        title takes effect. Any such proceedings, and any action on 
        such application, shall continue under those provisions as if 
        those provisions had not been amended by section 119.
    (c) Treatment of Certain Determinations.--Any determination with 
respect to the government of a foreign country under section 6(j) of 
the Export Administration Act of 1979, that is in effect at the time 
this title takes effect, shall, for purposes of this title or any other 
provision of law, be deemed to be made under section 106(i) of this Act 
until superseded by a determination under such section 106(i).

               TITLE II--NUCLEAR PROLIFERATION PREVENTION

SEC. 201. REPEAL OF TERMINATION OF PROVISIONS OF THE NUCLEAR 
              PROLIFERATION PREVENTION ACT OF 1994.

    (a) Repeal.--Part D of the Nuclear Proliferation Prevention Act of 
1994 (part D of title VIII of the Foreign Relations Authorization Act, 
Fiscal Years 1994 and 1995; Public Law 103-236; 108 Stat. 525) is 
hereby repealed.
    (b) Presidential Determinations.--Section 824(c) of the Nuclear 
Proliferation Prevention Act of 1994 is amended by striking ``, in 
writing after opportunity for a hearing on the record,''.
    (c) Judicial Review.--Section 824 of the Nuclear Proliferation 
Prevention Act of 1994 is amended--
            (1) by striking subsection (e); and
            (2) by redesignating subsections (f) through (k) as 
        subsections (e) through (j), respectively.
    (d) Conforming Amendment.--Section 102(b)(2)(G) of the Arms Export 
Control Act (22 U.S.C. 2799aa-1(b)(2)(G)) is amended by striking 
``section 6 of the Export Administration Act of 1979'' and inserting 
``section 105 or 106 of the Export Administration Act of 1996''.

SEC. 202. SEEKING MULTILATERAL SUPPORT FOR UNILATERAL SANCTIONS.

    The Secretary of State, in consultation with appropriate 
departments and agencies, shall seek the support of other countries for 
sanctions imposed under the Nuclear Proliferation Prevention Act of 
1994 or the amendments made by that Act.

SEC. 203. SANCTIONS UNDER THE NUCLEAR PROLIFERATION PREVENTION ACT OF 
              1994.

    Section 102(b)(2) of the Arms Export Control Act (22 U.S.C. 2799aa-
1(b)(2)) is amended--
            (1) in subparagraph (D) by striking ``shall not apply--'' 
        and all that follows through the end of clause (ii) and 
        inserting ``shall not apply to humanitarian assistance.'';
            (1) in subparagraph (G) by striking ``, except that'' and 
        all that follows through the end of the subparagraph and 
        inserting a period; and
            (3) by adding at the end the following:
            ``(H)(i) The President shall prohibit the importation into 
        the United States of specific products produced in that country 
        by persons who have engaged in the activities described in 
        paragraph (1) that were the basis of the President's 
        determination under such paragraph.
            ``(ii) In the event that it is not possible to identify the 
        persons who have engaged in the activities described in 
        paragraph (1) that were the basis of the President's 
        determination under such paragraph, the President shall 
        prohibit the importation into the United States of products 
        produced in that country by those persons that the President 
        shall designate as most closely identified with those 
        activities.
            ``(iii) For purposes of this subparagraph, the term 
        `person' means--
                    ``(I) a natural person;
                    ``(II) a corporation, business association, 
                partnership, society, or trust, or any other 
                nongovernmental entity, organization, or group;
                    ``(III) a governmental entity operating as a 
                business enterprise;
                    ``(IV) a division or office of a governmental 
                department; or
                    ``(V) a military unit or successor to such unit.
            ``(iv) The prohibition on imports imposed under this 
        subparagraph shall be in addition to any other prohibition on 
        imports in effect before the President's determination under 
        paragraph (1) is made.
The prohibitions contained in subparagraphs (D), (G), and (H) shall not 
apply to any transaction subject to the reporting requirements of title 
V of the National Security Act of 1947.''.

            Passed the House of Representatives July 16, 1996.

            Attest:

                                                                 Clerk.
```