I 

108TH CONGRESS 

1ST SESSION H. R. 55

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

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 7, 2003

Mr. DREIER (for himself and Mr. MENENDEZ) introduced the following bill; 

which was referred to the Committee on International Relations 

A BILL

To provide authority to control exports, and for other 

purposes.

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

5 ‘‘Export Administration Act of 2003’’. 

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

7 this Act is as follows:

Sec. 1. Short title; table of contents. 

Sec. 2. Definitions. 

TITLE I—GENERAL AUTHORITY 

Sec. 101. Commerce Control List. 

Sec. 102. Delegation of authority. 

Sec. 103. Public information; consultation requirements. 

Sec. 104. Right of export. 
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Sec. 105. Export control advisory committees. 

Sec. 106. President’s Technology Export Council. 

Sec. 107. Prohibition on charging fees. 

TITLE II—NATIONAL SECURITY EXPORT CONTROLS 

Subtitle A—Authority and Procedures 

Sec. 201. Authority for national security export controls. 

Sec. 202. National Security Control List. 

Sec. 203. Country tiers. 

Sec. 204. Incorporated parts and components. 

Sec. 205. Petition process for modifying export status. 

Subtitle B—Foreign Availability and Mass-Market Status 

Sec. 211. Determination of foreign availability and mass-market status. 

Sec. 212. Presidential set-aside of foreign availability status determination. 

Sec. 213. Presidential set-aside of mass-market status determination. 

Sec. 214. Office of Technology Evaluation. 

TITLE III—FOREIGN POLICY EXPORT CONTROLS 

Sec. 301. Authority for foreign policy export controls. 

Sec. 302. Procedures for imposing controls. 

Sec. 303. Criteria for foreign policy export controls. 

Sec. 304. Presidential report before imposition of control. 

Sec. 305. Imposition of controls. 

Sec. 306. Deferral authority. 

Sec. 307. Review, renewal, and termination. 

Sec. 308. Termination of controls under this title. 

Sec. 309. Compliance with international obligations. 

Sec. 310. Designation of countries supporting international terrorism. 

Sec. 311. Crime control instruments. 

TITLE IV—PROCEDURES FOR EXPORT LICENSES AND 

INTERAGENCY DISPUTE RESOLUTION 

Sec. 401. Export license procedures. 

Sec. 402. Interagency dispute resolution process. 

TITLE V—INTERNATIONAL ARRANGEMENTS; FOREIGN BOYCOTTS; 

SANCTIONS; AND ENFORCEMENT 

Sec. 501. International arrangements. 

Sec. 502. Foreign boycotts. 

Sec. 503. Penalties. 

Sec. 504. Missile proliferation control violations. 

Sec. 505. Chemical and biological weapons proliferation sanctions. 

Sec. 506. Enforcement. 

Sec. 507. Administrative procedure. 

TITLE VI—EXPORT CONTROL AUTHORITY AND REGULATIONS 

Sec. 601. Export control authority and regulations. 

Sec. 602. Confidentiality of information. 

TITLE VII—MISCELLANEOUS PROVISIONS 
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Sec. 701. Annual report. 

Sec. 702. Technical and conforming amendments. 

Sec. 703. Savings provisions.

1 SEC. 2. DEFINITIONS. 

2 In this Act: 

3 (1) AFFILIATE.—The term ‘‘affiliate’’ includes 

4 both governmental entities and commercial entities 

5 that are controlled in fact by the government of a 

6 country. 

7 (2) CONTROL OR CONTROLLED.—The terms 

8 ‘‘control’’ and ‘‘controlled’’ mean any requirement, 

9 condition, authorization, or prohibition on the export 

10 or reexport of an item. 

11 (3) CONTROL LIST.—The term ‘‘Control List’’ 

12 means the Commerce Control List established under 

13 section 101. 

14 (4) CONTROLLED COUNTRY.—The term ‘‘con15 trolled country’’ means a country with respect to 

16 which exports are controlled under section 201 or 

17 301. 

18 (5) CONTROLLED ITEM.—The term ‘‘controlled 

19 item’’ means an item the export of which is con20 trolled under this Act. 

21 (6) COUNTRY.—The term ‘‘country’’ means a 

22 sovereign country or an autonomous customs terri23 tory. 
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1 (7) COUNTRY SUPPORTING INTERNATIONAL

2 TERRORISM.—The term ‘‘country supporting inter3 national terrorism’’ means a country designated by 

4 the Secretary of State pursuant to section 310. 

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

6 means the Department of Commerce. 

7 (9) EXPORT.—

8 (A) The term ‘‘export’’ means—

9 (i) an actual shipment, transfer, or 

10 transmission of an item out of the United 

11 States; 

12 (ii) a transfer to any person of an 

13 item either within the United States or 

14 outside of the United States with the 

15 knowledge or intent that the item will be 

16 shipped, transferred, or transmitted to an 

17 unauthorized recipient outside the United 

18 States; or 

19 (iii) a transfer of an item in the 

20 United States to an embassy or affiliate of 

21 a country, which shall be considered an ex22 port to that country. 

23 (B) The term includes a reexport. 
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1 (10) FOREIGN AVAILABILITY STATUS.—The 

2 term ‘‘foreign availability status’’ means the status 

3 described in section 211(d)(1). 

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

5 person’’ means—

6 (A) an individual who is not—

7 (i) a United States citizen; 

8 (ii) an alien lawfully admitted for per9 manent residence to the United States; or 

10 (iii) a protected individual as defined 

11 in section 274B(a)(3) of the Immigration 

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

13 1324b(a)(3)); 

14 (B) any corporation, partnership, business 

15 association, society, trust, organization, or other 

16 nongovernmental entity created or organized 

17 under the laws of a foreign country or that has 

18 its principal place of business outside the 

19 United States; and

20 (C) any governmental entity of a foreign 

21 country. 

22 (12) ITEM.—

23 (A) IN GENERAL.—The term ‘‘item’’ 

24 means any good, technology, or service.
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1 (B) OTHER DEFINITIONS.—In this para2 graph: 

3 (i) GOOD.—The term ‘‘good’’ means 

4 any article, natural or manmade substance, 

5 material, supply or manufactured product, 

6 including inspection and test equipment, 

7 including source code, and excluding tech8 nical data. 

9 (ii) TECHNOLOGY.—The term ‘‘tech10 nology’’ means specific information that is 

11 necessary for the development, production, 

12 or use of an item, and takes the form of 

13 technical data or technical assistance. 

14 (iii) SERVICE.—The term ‘‘service’’ 

15 means any act of assistance, help or aid. 

16 (13) MASS-MARKET STATUS.—The term ‘‘mass17 market status’’ means the status described in section 

18 211(d)(2). 

19 (14) MULTILATERAL EXPORT CONTROL RE20 GIME.—The term ‘‘multilateral export control re21 gime’’ means an international agreement or arrange22 ment among two or more countries, including the 

23 United States, a purpose of which is to coordinate 

24 national export control policies of its members re25 garding certain terms. The term includes regimes 
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1 such as the Australia Group, the Wassenaar Ar2 rangement, the Missile Technology Control Regime 

3 (MTCR), and the Nuclear Suppliers’ Group Dual 

4 Use Arrangement. 

5 (15) NATIONAL SECURITY CONTROL LIST.—The 

6 term ‘‘National Security Control List’’ means the 

7 list established under section 202(a). 

8 (16) PERSON.—The term ‘‘person’’ includes—

9 (A) any individual, or partnership, corpora10 tion, business association, society, trust, organi11 zation, or any other group created or organized 

12 under the laws of a country; and 

13 (B) any government, or any governmental 

14 entity, including any governmental entity oper15 ating as a business enterprise. 

16 (17) REEXPORT.—The term ‘‘reexport’’ means 

17 the shipment, transfer, transshipment, or diversion 

18 of items from one foreign country to another. 

19 (18) SECRETARY.—The term ‘‘Secretary’’ 

20 means the Secretary of Commerce. 

21 (19) UNITED STATES.—The term ‘‘United 

22 States’’ means the States of the United States, the 

23 District of Columbia, and any commonwealth, terri24 tory, dependency, or possession of the United States, 

25 and includes the outer Continental Shelf, as defined 
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1 in section 2(a) of the Outer Continental Shelf Lands 

2 Act (42 U.S.C. 1331(a)). 

3 (20) UNITED STATES PERSON.—The term 

4 ‘‘United States person’’ means—

5 (A) any United States citizen, resident, or 

6 national (other than an individual resident out7 side the United States who is employed by a 

8 person other than a United States person); 

9 (B) any domestic concern (including any 

10 permanent domestic establishment of any for11 eign concern); and 

12 (C) any foreign subsidiary or affiliate (in13 cluding any permanent foreign establishment) 

14 of any domestic concern which is controlled in 

15 fact by such domestic concern, as determined 

16 under regulations prescribed by the President. 

17 TITLE I—GENERAL AUTHORITY 

18 SEC. 101. COMMERCE CONTROL LIST. 

19 (a) IN GENERAL.—Under such conditions as the Sec20 retary may impose, consistent with the provisions of this 

21 Act, the Secretary—

22 (1) shall establish and maintain a Commerce 

23 Control List (in this Act referred to as the ‘‘Control 

24 List’’) consisting of items the export of which are 
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1 subject to licensing or other authorization or re2 quirement; and 

3 (2) may require any type of license, or other 

4 authorization, including recordkeeping and report5 ing, appropriate to the effective and efficient imple6 mentation of this Act with respect to the export of 

7 an item on the Control List or otherwise subject to 

8 control under title II or III of this Act. 

9 (b) TYPES OF LICENSE OR OTHER AUTHORIZA10 TION.—The types of license or other authorization re11 ferred to in subsection (a)(2) include the following: 

12 (1) SPECIFIC EXPORTS.—A license that author13 izes a specific export. 

14 (2) MULTIPLE EXPORTS.—A license that au15 thorizes multiple exports in lieu of a license for each 

16 export. 

17 (3) NOTIFICATION IN LIEU OF LICENSE.—A no18 tification in lieu of a license that authorizes a spe19 cific export or multiple exports subject to the condi20 tion that the exporter file with the Department ad21 vance notification of the intent to export in accord22 ance with regulations prescribed by the Secretary. 

23 (4) LICENSE EXCEPTION.—Authority to export 

24 an item on the Control List without prior license or 

25 notification in lieu of a license.
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1 (c) AFTER-MARKET SERVICE AND REPLACEMENT

2 PARTS.—A license to export an item under this Act shall 

3 not be required for an exporter to provide after-market 

4 service or replacement parts in order to replace on a one5 for-one basis parts that were in an item that was lawfully 

6 exported from the United States, unless—

7 (1) the Secretary determines that such license 

8 is required to export such parts; or 

9 (2) the after-market service or replacement 

10 parts would materially enhance the capability of an

11 item which was the basis for the item being con12 trolled. 

13 (d) INCIDENTAL TECHNOLOGY.—A license or other 

14 authorization to export an item under this Act includes 

15 authorization to export technology related to the item, if 

16 the level of the technology does not exceed the minimum

17 necessary to install, repair, maintain, inspect, operate, or 

18 use the item. 

19 (e) REGULATIONS.—The Secretary may prescribe 

20 such regulations as are necessary to carry out the provi21 sions of this Act. 

22 SEC. 102. DELEGATION OF AUTHORITY. 

23 (a) IN GENERAL.—Except as provided in subsection 

24 (b) and subject to the provisions of this Act, the President 

25 may delegate the power, authority, and discretion con-
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1 ferred upon the President by this Act to such depart2 ments, agencies, and officials of the Government as the 

3 President considers appropriate. 

4 (b) EXCEPTIONS.—

5 (1) DELEGATION TO APPOINTEES CONFIRMED

6 BY SENATE.—No authority delegated to the Presi7 dent under this Act may be delegated by the Presi8 dent to, or exercised by, any official of any depart9 ment or agency the head of which is not appointed 

10 by the President, by and with the advice and consent 

11 of the Senate. 

12 (2) OTHER LIMITATIONS.—The President may 

13 not delegate or transfer the President’s power, au14 thority, or discretion to overrule or modify any rec15 ommendation or decision made by the Secretary, the 

16 Secretary of Defense, or the Secretary of State 

17 under this Act. 

18 SEC. 103. PUBLIC INFORMATION; CONSULTATION REQUIRE19 MENTS. 

20 (a) PUBLIC INFORMATION.—The Secretary shall 

21 keep the public fully informed of changes in export control 

22 policy and procedures instituted in conformity with this 

23 Act. 

24 (b) CONSULTATION WITH PERSONS AFFECTED.—

25 The Secretary shall consult regularly with representatives 
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1 of a broad spectrum of enterprises, labor organizations, 

2 and citizens interested in or affected by export controls 

3 in order to obtain their views on United States export con4 trol policy and the foreign availability or mass-market sta5 tus of controlled items. 

6 SEC. 104. RIGHT OF EXPORT. 

7 No license or other authorization to export may be 

8 required under this Act, or under regulations issued under 

9 this Act, except to carry out the provisions of this Act. 

10 SEC. 105. EXPORT CONTROL ADVISORY COMMITTEES. 

11 (a) APPOINTMENT.—Upon the Secretary’s own initia12 tive or upon the written request of representatives of a 

13 substantial segment of any industry which produces any 

14 items subject to export controls under this Act or being 

15 considered for such controls, the Secretary may appoint 

16 export control advisory committees with respect to any 

17 such items. Each such committee shall consist of rep18 resentatives of United States industry and Government of19 ficials, including officials from the Departments of Com20 merce, Defense, and State, and other appropriate depart21 ments and agencies of the Government. The Secretary 

22 shall permit the widest possible participation by the busi23 ness community on the export control advisory commit24 tees. 

25 (b) FUNCTIONS.—
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1 (1) IN GENERAL.—Export control advisory 

2 committees appointed under subsection (a) shall ad3 vise and assist the Secretary, and any other depart4 ment, agency, or official of the Government carrying 

5 out functions under this Act, on actions (including 

6 all aspects of controls imposed or proposed) designed 

7 to carry out the provisions of this Act concerning the 

8 items with respect to which such export control advi9 sory committees were appointed. 

10 (2) OTHER CONSULTATIONS.—Nothing in para11 graph (1) shall prevent the United States Govern12 ment from consulting, at any time, with any person 

13 representing an industry or the general public, re14 gardless of whether such person is a member of an 

15 export control advisory committee. Members of the 

16 public shall be given a reasonable opportunity, pur17 suant to regulations prescribed by the Secretary, to 

18 present information to such committees. 

19 (c) REIMBURSEMENT OF EXPENSES.—Upon the re20 quest of any member of any export control advisory com21 mittee appointed under subsection (a), the Secretary may, 

22 if the Secretary determines it to be appropriate, reimburse 

23 such member for travel, subsistence, and other necessary 

24 expenses incurred by such member in connection with the 

25 duties of such member.
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1 (d) CHAIRPERSON.—Each export control advisory 

2 committee appointed under subsection (a) shall elect a 

3 chairperson, and shall meet at least every 3 months at 

4 the call of the chairperson, unless the chairperson deter5 mines, in consultation with the other members of the com6 mittee, that such a meeting is not necessary to achieve 

7 the purposes of this section. Each such committee shall 

8 be terminated after a period of 2 years, unless extended 

9 by the Secretary for additional periods of 2 years each.

10 The Secretary shall consult with each such committee on 

11 such termination or extension of that committee. 

12 (e) ACCESS TO INFORMATION.—To facilitate the 

13 work of the export control advisory committees appointed 

14 under subsection (a), the Secretary, in conjunction with 

15 other departments and agencies participating in the ad16 ministration of this Act, shall disclose to each such com17 mittee adequate information, consistent with national se18 curity and intelligence sources and methods, pertaining to 

19 the reasons for the export controls which are in effect or 

20 contemplated for the items or policies for which that com21 mittee furnishes advice. Information provided by the ex22 port control advisory committees shall not be subject to 

23 disclosure under section 552 of title 5, United States 

24 Code, and such information shall not be published or dis-
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1 closed unless the Secretary determines that the with2 holding thereof is contrary to the national interest. 

3 SEC. 106. PRESIDENT’S TECHNOLOGY EXPORT COUNCIL. 

4 The President may establish a President’s Tech5 nology Export Council to advise the President on the im6 plementation, operation, and effectiveness of this Act. 

7 SEC. 107. PROHIBITION ON CHARGING FEES. 

8 No fee may be charged in connection with the submis9 sion or processing of an application for an export license 

10 under this Act.

11 TITLE II—NATIONAL SECURITY 

12 EXPORT CONTROLS 

13 Subtitle A—Authority and 

14 Procedures 

15 SEC. 201. AUTHORITY FOR NATIONAL SECURITY EXPORT 

16 CONTROLS. 

17 (a) AUTHORITY.—

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

19 purposes set forth in subsection (b), the President 

20 may, in accordance with the provisions of this Act, 

21 prohibit, curtail, or require a license, or other au22 thorization for the export of any item subject to the 

23 jurisdiction of the United States or exported by any 

24 person subject to the jurisdiction of the United 

25 States. The President may also require record-
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1 keeping and reporting with respect to the export of 

2 such item. 

3 (2) EXERCISE OF AUTHORITY.—The authority 

4 contained in this subsection shall be exercised by the 

5 Secretary, in consultation with the Secretary of De6 fense, the intelligence agencies, and such other de7 partments and agencies as the Secretary considers 

8 appropriate. 

9 (b) PURPOSES.—The purposes of national security 

10 export controls are the following: 

11 (1) To restrict the export of items that would 

12 contribute to the military potential of countries so as 

13 to prove detrimental to the national security of the 

14 United States, its allies or countries sharing com15 mon strategic objectives with the United States. 

16 (2) To stem the proliferation of weapons of 

17 mass destruction, and the means to deliver them, 

18 and other significant military capabilities by—

19 (A) leading international efforts to control 

20 the proliferation of chemical and biological 

21 weapons, nuclear explosive devices, missile deliv22 ery systems, key-enabling technologies, and 

23 other significant military capabilities; 

24 (B) controlling involvement of United 

25 States persons in, and contributions by United 
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1 States persons to, foreign programs intended to 

2 develop weapons of mass destruction, missiles, 

3 and other significant military capabilities, and 

4 the means to design, test, develop, produce, 

5 stockpile, or use them; and 

6 (C) implementing international treaties or 

7 other agreements or arrangements concerning 

8 controls on exports of designated items, reports 

9 on the production, processing, consumption, 

10 and exports and imports of such items, and 

11 compliance with verification programs. 

12 (3) To deter acts of international terrorism. 

13 (c) END USE AND END USER CONTROLS.—Notwith14 standing any other provision of this title, controls may be 

15 imposed, based on the end use or end user, on the export 

16 of any item, that could contribute to the proliferation of 

17 weapons of mass destruction or the means to deliver them. 

18 (d) ENHANCED CONTROLS.—

19 (1) IN GENERAL.—Notwithstanding any other 

20 provisions of this title, the President may determine 

21 that applying the provisions of section 204 or 211 

22 with respect to an item on the National Security 

23 Control List would constitute a significant threat to 

24 the national security of the United States and that 

25 such item requires enhanced control. If the Presi-
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1 dent determines that enhanced control should apply 

2 to such item, the item may be excluded from the 

3 provisions of section 204, section 211, or both, until 

4 such time as the President shall determine that such 

5 enhanced control should no longer apply to such 

6 item. The President may not delegate the authority 

7 provided for in this subsection. 

8 (2) REPORT TO CONGRESS.—The President 

9 shall promptly report any determination described in 

10 paragraph (1), along with the specific reasons for 

11 the determination, to the Committee on Banking, 

12 Housing, and Urban Affairs of the Senate and the 

13 Committee on International Relations of the House 

14 of Representatives. 

15 SEC. 202. NATIONAL SECURITY CONTROL LIST. 

16 (a) ESTABLISHMENT OF LIST.—

17 (1) ESTABLISHMENT.—The Secretary shall es18 tablish and maintain a National Security Control 

19 List as part of the Control List. 

20 (2) CONTENTS.—The National Security Control 

21 List shall be composed of a list of items the export 

22 of which is controlled for national security purposes 

23 under this title. 

24 (3) IDENTIFICATION OF ITEMS FOR NATIONAL

25 SECURITY CONTROL LIST.—The Secretary, with the
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1 concurrence of the Secretary of Defense and in con2 sultation with the head of any other department or 

3 agency of the United States that the Secretary con4 siders appropriate, shall identify the items to be in5 cluded on the National Security Control List pro6 vided that the National Security Control List shall, 

7 on the date of enactment of this Act, include all of 

8 the items on the Commerce Control List controlled 

9 on the day before the date of enactment of this Act 

10 to protect the national security of the United States, 

11 to prevent the proliferation of weapons of mass de12 struction and the means to deliver them, and to 

13 deter acts of international terrorism. The Secretary 

14 shall review on a continuing basis and, with the con15 currence of the Secretary of Defense and in con16 sultation with the head of any other department or 

17 agency of the United States that the Secretary con18 siders appropriate, adjust the National Security 

19 Control List to add items that require control under 

20 this section and to remove items that no longer war21 rant control under this section. 

22 (b) RISK ASSESSMENT.—

23 (1) REQUIREMENT.—In establishing and main24 taining the National Security Control List, the risk 

25 factors set forth in paragraph (2) shall be consid-
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1 ered, weighing national security concerns and eco2 nomic costs. 

3 (2) RISK FACTORS.—The risk factors referred 

4 to in paragraph (1), with respect to each item, are 

5 as follows: 

6 (A) The characteristics of the item. 

7 (B) The threat, if any, to the United 

8 States or the national security interest of the

9 United States from the misuse or diversion of 

10 such item. 

11 (C) The effectiveness of controlling the 

12 item for national security purposes of the 

13 United States, taking into account mass-market 

14 status, foreign availability, and other relevant 

15 factors. 

16 (D) The threat to the national security in17 terests of the United States if the item is not 

18 controlled. 

19 (E) Any other appropriate risk factors. 

20 (c) REPORT ON CONTROL LIST.—Not later than 90 

21 days after the date of enactment of this Act, the Secretary 

22 shall submit a report to Congress which lists all items on 

23 the Commerce Control List controlled on the day before 

24 the date of enactment of this Act to protect the national 

25 security of the United States, to prevent the proliferation 
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1 of weapons of mass destruction and the means to deliver 

2 them, and to deter acts of international terrorism, not in3 cluded on the National Security Control List pursuant to 

4 the provisions of this Act. 

5 SEC. 203. COUNTRY TIERS. 

6 (a) IN GENERAL.—

7 (1) ESTABLISHMENT AND ASSIGNMENT.—In 

8 administering export controls for national security 

9 purposes under this title, the President shall, not 

10 later than 120 days after the date of enactment of 

11 this Act—

12 (A) establish and maintain a country 

13 tiering system in accordance with subsection 

14 (b); and 

15 (B) based on the assessments required 

16 under subsection (c), assign each country to an 

17 appropriate tier for each item or group of items 

18 the export of which is controlled for national se19 curity purposes under this title. 

20 (2) CONSULTATION.—The establishment and 

21 assignment of country tiers under this section shall 

22 be made after consultation with the Secretary, the 

23 Secretary of Defense, the Secretary of State, the in24 telligence agencies, and such other departments and 

25 agencies as the President considers appropriate. 
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1 (3) REDETERMINATION AND REVIEW OF AS2 SIGNMENTS.—The President may redetermine the 

3 assignment of a country to a particular tier at any 

4 time and shall review and, as the President con5 siders appropriate, reassign country tiers on an on6 going basis. The Secretary shall provide notice of 

7 any such reassignment to the Committee on Bank8 ing, Housing, and Urban Affairs of the Senate and 

9 the Committee on International Relations of the 

10 House of Representatives. 

11 (4) EFFECTIVE DATE OF TIER ASSIGNMENT.— 

12 An assignment of a country to a particular tier shall 

13 take effect on the date on which notice of the assign14 ment is published in the Federal Register. 

15 (b) TIERS.—

16 (1) IN GENERAL.—The President shall establish 

17 a country tiering system consisting of not less than 

18 3 tiers for purposes of this section. 

19 (2) RANGE.—Countries that represent the low20 est risk of diversion or misuse of an item on the Na21 tional Security Control List shall be assigned to the 

22 lowest tier. Countries that represent the highest risk 

23 of diversion or misuse of an item on the National 

24 Security Control List shall be assigned to the high25 est tier. 
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1 (3) OTHER COUNTRIES.—Countries that fall be2 tween the lowest and highest risk to the national se3 curity interest of the United States with respect to 

4 the risk of diversion or misuse of an item on the Na5 tional Security Control List shall be assigned to a 

6 tier other than the lowest or highest tier, based on 

7 the assessments required under subsection (c). 

8 (c) ASSESSMENTS.—The President shall make an as9 sessment of each country in assigning a country tier tak10 ing into consideration risk factors including the following: 

11 (1) The present and potential relationship of 

12 the country with the United States. 

13 (2) The present and potential relationship of 

14 the country with countries friendly to the United 

15 States and with countries hostile to the United 

16 States. 

17 (3) The country’s capabilities regarding chem18 ical, biological, and nuclear weapons and the coun19 try’s membership in, and level of compliance with, 

20 relevant multilateral export control regimes. 

21 (4) The country’s capabilities regarding missile 

22 systems and the country’s membership in, and level 

23 of compliance with, relevant multilateral export con24 trol regimes.
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1 (5) Whether the country, if a NATO or major 

2 non-NATO ally with whom the United States has 

3 entered into a free trade agreement as of January 

4 1, 1986, controls exports in accordance with the cri5 teria and standards of a multilateral export control 

6 regime as defined in section 2(14) pursuant to an 

7 international agreement to which the United States 

8 is a party. 

9 (6) The country’s other military capabilities 

10 and the potential threat posed by the country to the 

11 United States or its allies. 

12 (7) The effectiveness of the country’s export 

13 control system. 

14 (8) The level of the country’s cooperation with 

15 United States export control enforcement and other 

16 efforts. 

17 (9) The risk of export diversion by the country 

18 to a higher tier country. 

19 (10) The designation of the country as a coun20 try supporting international terrorism under section 

21 310. 

22 (d) TIER APPLICATION.—The country tiering system 

23 shall be used in the determination of license requirements 

24 pursuant to section 201(a)(1). 
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1 SEC. 204. INCORPORATED PARTS AND COMPONENTS. 

2 (a) EXPORT OF ITEMS CONTAINING CONTROLLED

3 PARTS AND COMPONENTS.—Controls may not be imposed 

4 under this title or any other provision of law on an item 

5 solely because the item contains parts or components sub6 ject to export controls under this title, if the parts or com7 ponents—

8 (1) are essential to the functioning of the item, 

9 (2) are customarily included in sales of the item 

10 in countries other than controlled countries, and 

11 (3) comprise 25 percent or less of the total 

12 value of the item, 

13 unless the item itself, if exported, would by virtue of the 

14 functional characteristics of the item as a whole make a

15 significant contribution to the military or proliferation po16 tential of a controlled country or end user which would 

17 prove detrimental to the national security of the United 

18 States, or unless failure to control the item would be con19 trary to the provisions of section 201(c), section 201(d), 

20 or section 309 of this Act. 

21 (b) REEXPORTS OF FOREIGN-MADE ITEMS INCOR22 PORATING UNITED STATES CONTROLLED CONTENT.—

23 (1) IN GENERAL.—No authority or permission 

24 may be required under this title to reexport to a 

25 country an item that is produced in a country other 

26 than the United States and incorporates parts or 
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1 components that are subject to the jurisdiction of 

2 the United States, if the value of the controlled 

3 United States content of the item produced in such 

4 other country is 25 percent or less of the total value 

5 of the item; except that in the case of reexports of 

6 an item to a country designated as a country sup7 porting international terrorism pursuant to section 

8 310, controls may be maintained if the value of the 

9 controlled United States content is more than 10 

10 percent of the total value of the item. 

11 (2) DEFINITION OF CONTROLLED UNITED

12 STATES CONTENT.—For purposes of this paragraph, 

13 the term ‘‘controlled United States content’’ of an 

14 item means those parts or components that—

15 (A) are subject to the jurisdiction of the 

16 United States; 

17 (B) are incorporated into the item; and 

18 (C) would, at the time of the reexport, re19 quire a license under this title if exported from

20 the United States to a country to which the 

21 item is to be reexported. 

22 SEC. 205. PETITION PROCESS FOR MODIFYING EXPORT 

23 STATUS. 

24 (a) ESTABLISHMENT.—The Secretary shall establish 

25 a process for interested persons to petition the Secretary 
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1 to change the status of an item on the National Security 

2 Control List. 

3 (b) EVALUATIONS AND DETERMINATIONS.—Evalua4 tions and determinations with respect to a petition filed 

5 pursuant to this section shall be made in accordance with 

6 section 202. 

7 Subtitle B—Foreign Availability 

8 and Mass-Market Status 

9 SEC. 211. DETERMINATION OF FOREIGN AVAILABILITY AND 

10 MASS-MARKET STATUS. 

11 (a) IN GENERAL.—The Secretary shall—

12 (1) on a continuing basis, 

13 (2) upon a request from the Office of Tech14 nology Evaluation, or 

15 (3) upon receipt of a petition filed by an inter16 ested party, 

17 review and determine the foreign availability and the 

18 mass-market status of any item the export of which is con19 trolled under this title. 

20 (b) PETITION AND CONSULTATION.—

21 (1) IN GENERAL.—The Secretary shall establish 

22 a process for an interested party to petition the Sec23 retary for a determination that an item has a for24 eign availability or mass-market status. In evalu25 ating and making a determination with respect to a 
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1 petition filed under this section, the Secretary shall 

2 consult with the Secretary of Defense, Secretary of 

3 State, and other appropriate Government agencies 

4 and with the Office of Technology Evaluation (estab5 lished pursuant to section 214). 

6 (2) TIME FOR MAKING DETERMINATION.—The 

7 Secretary shall, within 6 months after receiving a 

8 petition described in subsection (a)(3), determine 

9 whether the item that is the subject of the petition 

10 has foreign availability or mass-market status and 

11 shall notify the petitioner of the determination. 

12 (c) RESULT OF DETERMINATION.—In any case in 

13 which the Secretary determines, in accordance with proce14 dures and criteria which the Secretary shall by regulation 

15 establish, that an item described in subsection (a) has—

16 (1) a foreign availability status, or 

17 (2) a mass-market status, 

18 the Secretary shall notify the President (and other appro19 priate departments and agencies) and publish the notice 

20 of the determination in the Federal Register. The Sec21 retary’s determination shall become final 30 days after the 

22 date the notice is published, the item shall be removed 

23 from the National Security Control List, and a license or 

24 other authorization shall not be required under this title 

25 with respect to the item, unless the President makes a
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1 determination described in section 212 or 213, or takes 

2 action under section 309, with respect to the item in that 

3 30-day period. 

4 (d) CRITERIA FOR DETERMINING FOREIGN AVAIL5 ABILITY AND MASS-MARKET STATUS.—

6 (1) FOREIGN AVAILABILITY STATUS.—The Sec7 retary shall determine that an item has foreign 

8 availability status under this subtitle, if the item (or 

9 a substantially identical or directly competitive 

10 item)—

11 (A) is available to controlled countries 

12 from sources outside the United States, includ13 ing countries that participate with the United 

14 States in multilateral export controls; 

15 (B) can be acquired at a price that is not 

16 excessive when compared to the price at which 

17 a controlled country could acquire such item 

18 from sources within the United States in the 

19 absence of export controls; and 

20 (C) is available in sufficient quantity so 

21 that the requirement of a license or other au22 thorization with respect to the export of such 

23 item is or would be ineffective. 

24 (2) MASS-MARKET STATUS.—
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1 (A) IN GENERAL.—In determining whether 

2 an item has mass-market status under this sub3 title, the Secretary shall consider the following 

4 criteria with respect to the item (or a substan5 tially identical or directly competitive item):

6 (i) The production and availability for 

7 sale in a large volume to multiple potential 

8 purchasers. 

9 (ii) The widespread distribution 

10 through normal commercial channels, such 

11 as retail stores, direct marketing cata12 logues, electronic commerce, and other 

13 channels. 

14 (iii) The conduciveness to shipment 

15 and delivery by generally accepted commer16 cial means of transport. 

17 (iv) The use for the item’s normal in18 tended purpose without substantial and 

19 specialized service provided by the manu20 facturer, distributor, or other third party. 

21 (B) DETERMINATION BY SECRETARY.—If 

22 the Secretary finds that the item (or a substan23 tially identical or directly competitive item) 

24 meets the criteria set forth in subparagraph 
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1 (A), the Secretary shall determine that the item 

2 has mass-market status. 

3 (3) SPECIAL RULES.—For purposes of this sub4 title—

5 (A) SUBSTANTIALLY IDENTICAL ITEM.—

6 The determination of whether an item in rela7 tion to another item is a substantially identical 

8 item shall include a fair assessment of end-uses, 

9 the properties, nature, and quality of the item. 

10 (B) DIRECTLY COMPETITIVE ITEM.—

11 (i) IN GENERAL.—The determination 

12 of whether an item in relation to another 

13 item is a directly competitive item shall in14 clude a fair assessment of whether the 

15 item, although not substantially identical 

16 in its intrinsic or inherent characteristics, 

17 is substantially equivalent for commercial 

18 purposes and may be adapted for substan19 tially the same uses. 

20 (ii) EXCEPTION.—An item is not di21 rectly competitive with a controlled item if 

22 the item is substantially inferior to the 

23 controlled item with respect to characteris24 tics that resulted in the export of the item 

25 being controlled. 
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1 SEC. 212. PRESIDENTIAL SET-ASIDE OF FOREIGN AVAIL2 ABILITY STATUS DETERMINATION. 

3 (a) CRITERIA FOR PRESIDENTIAL SET-ASIDE.—

4 (1) GENERAL CRITERIA.—

5 (A) IN GENERAL.—If the President deter6 mines that—

7 (i) decontrolling or failing to control 

8 an item constitutes a threat to the national 

9 security of the United States, and export 

10 controls on the item would advance the na11 tional security interests of the United 

12 States, 

13 (ii) there is a high probability that the 

14 foreign availability of an item will be elimi15 nated through international negotiations 

16 within a reasonable period of time taking 

17 into account the characteristics of the 

18 item, or 

19 (iii) United States controls on the 

20 item have been imposed under section 309, 

21 the President may set aside the Secretary’s de22 termination of foreign availability status with 

23 respect to the item. 

24 (B) NONDELEGATION.—The President 

25 may not delegate the authority provided for in 

26 this paragraph. 
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1 (2) REPORT TO CONGRESS.—The President 

2 shall promptly—

3 (A) report any set-aside determination de4 scribed in paragraph (1), along with the specific 

5 reasons for the determination, to the Committee 

6 on Banking, Housing, and Urban Affairs of the 

7 Senate and the Committee on International Re8 lations of the House of Representatives; and 

9 (B) publish the determination in the Fed10 eral Register. 

11 (b) PRESIDENTIAL ACTION IN CASE OF SET12 ASIDE.—

13 (1) IN GENERAL.—

14 (A) NEGOTIATIONS.—In any case in which 

15 export controls are maintained on an item be16 cause the President has made a determination 

17 under subsection (a), the President shall ac18 tively pursue negotiations with the governments 

19 of the appropriate foreign countries for the pur20 pose of eliminating such availability. 

21 (B) REPORT TO CONGRESS.—Not later 

22 than the date the President begins negotiations, 

23 the President shall notify in writing the Com24 mittee on Banking, Housing, and Urban Affairs 

25 of the Senate and the Committee on Inter-
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1 national Relations of the House of Representa2 tives that the President has begun such nego3 tiations and why the President believes it is im4 portant to the national security that export con5 trols on the item involved be maintained. 

6 (2) PERIODIC REVIEW OF DETERMINATION.—

7 The President shall review a determination described 

8 in subsection (a) at least every 6 months. Promptly 

9 after each review is completed, the Secretary shall 

10 submit to the committees of Congress referred to in 

11 paragraph (1)(B) a report on the results of the re12 view, together with the status of international nego13 tiations to eliminate the foreign availability of the 

14 item. 

15 (3) EXPIRATION OF PRESIDENTIAL SET16 ASIDE.—A determination by the President described 

17 in subsection (a)(1)(A) (i) or (ii) shall cease to apply 

18 with respect to an item on the earlier of—

19 (A) the date that is 6 months after the date 

20 on which the determination is made under sub21 section (a), if the President has not commenced 

22 international negotiations to eliminate the for23 eign availability of the item within that 6-month 

24 period;
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1 (B) the date on which the negotiations de2 scribed in paragraph (1) have terminated with3 out achieving an agreement to eliminate foreign 

4 availability; 

5 (C) the date on which the President deter6 mines that there is not a high probability of 

7 eliminating foreign availability of the item 

8 through negotiation; or 

9 (D) the date that is 18 months after the 

10 date on which the determination described in 

11 subsection (a)(1)(A) (i) or (ii) is made if the 

12 President has been unable to achieve an agree13 ment to eliminate foreign availability within 

14 that 18-month period. 

15 (4) ACTION ON EXPIRATION OF PRESIDENTIAL

16 SET-ASIDE.—Upon the expiration of a Presidential 

17 set-aside under paragraph (3) with respect to an 

18 item, the Secretary shall not require a license or 

19 other authorization to export the item. 

20 SEC. 213. PRESIDENTIAL SET-ASIDE OF MASS-MARKET STA21 TUS DETERMINATION. 

22 (a) CRITERIA FOR PRESIDENTIAL SET-ASIDE.—

23 (1) GENERAL CRITERIA.—If the President de24 termines that—
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1 (A)(i) decontrolling or failing to control an 

2 item constitutes a serious threat to the national 

3 security of the United States, and 

4 (ii) export controls on the item would ad5 vance the national security interests of the 

6 United States, or 

7 (B) United States controls on the item 

8 have been imposed under section 309, 

9 the President may set aside the Secretary’s deter10 mination of mass-market status with respect to the 

11 item. 

12 (2) NONDELEGATION.—The President may not 

13 delegate the authority provided for in this sub14 section. 

15 (b) PRESIDENTIAL ACTION IN CASE OF SET16 ASIDE.—

17 (1) IN GENERAL.—In any case in which export 

18 controls are maintained on an item because the 

19 President has made a determination under sub20 section (a), the President shall promptly report the 

21 determination, along with the specific reasons for 

22 the determination, to the Committee on Banking, 

23 Housing, and Urban Affairs of the Senate and the 

24 Committee on International Relations of the House 

25 of Representatives, and shall publish notice of the 
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1 determination in the Federal Register not later than 

2 30 days after the Secretary publishes notice of the 

3 Secretary’s determination that an item has mass4 market status. 

5 (2) PERIODIC REVIEW OF DETERMINATION.—

6 The President shall review a determination made 

7 under subsection (a) at least every 6 months. 

8 Promptly after each review is completed, the Sec9 retary shall submit a report on the results of the re10 view to the Committee on Banking, Housing, and 

11 Urban Affairs of the Senate and the Committee on 

12 International Relations of the House of Representa13 tives. 

14 SEC. 214. OFFICE OF TECHNOLOGY EVALUATION. 

15 (a) IN GENERAL.—

16 (1) ESTABLISHMENT OF OFFICE.—The Sec17 retary shall establish in the Department of Com18 merce an Office of Technology Evaluation (in this 

19 section referred to as the ‘‘Office’’), which shall be 

20 under the direction of the Secretary. The Office 

21 shall be responsible for gathering, coordinating, and 

22 analyzing all the necessary information in order for 

23 the Secretary to make determinations of foreign 

24 availability and mass-market status under this Act. 

25 (2) STAFF.—
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1 (A) IN GENERAL.—The Secretary shall en2 sure that the Office include persons to carry 

3 out the responsibilities set forth in subsection 

4 (b) of this section that have training, expertise, 

5 and experience in—

6 (i) economic analysis; 

7 (ii) the defense industrial base; 

8 (iii) technological developments; and 

9 (iv) national security and foreign pol10 icy export controls. 

11 (B) DETAILEES.—In addition to employees 

12 of the Department of Commerce, the Secretary 

13 may accept on nonreimbursable detail to the 

14 Office, employees of the Departments of De15 fense, State, and Energy and other departments 

16 and agencies as appropriate. 

17 (b) RESPONSIBILITIES.—The Office shall be respon18 sible for—

19 (1) conducting foreign availability assessments 

20 to determine whether a controlled item is available 

21 to controlled countries and whether requiring a li22 cense, or denial of a license for the export of such 

23 item, is or would be ineffective; 

24 (2) conducting mass-market assessments to de25 termine whether a controlled item is available to 
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1 controlled countries because of the mass-market sta2 tus of the item; 

3 (3) monitoring and evaluating worldwide tech4 nological developments in industry sectors critical to 

5 the national security interests of the United States 

6 to determine foreign availability and mass-market 

7 status of controlled items; 

8 (4) monitoring and evaluating multilateral ex9 port control regimes and foreign government export 

10 control policies and practices that affect the national 

11 security interests of the United States; 

12 (5) conducting assessments of United States in13 dustrial sectors critical to the United States defense 

14 industrial base and how the sectors are affected by 

15 technological developments, technology transfers, 

16 and foreign competition; and 

17 (6) conducting assessments of the impact of 

18 United States export control policies on— 

19 (A) United States industrial sectors critical 

20 to the national security interests of the United 

21 States; and 

22 (B) the United States economy in general. 

23 (c) REPORTS TO CONGRESS.—The Secretary shall 

24 make available to the Committee on International Rela25 tions of the House of Representatives and the Committee
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•HR 55 IH 

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

2 as part of the Secretary’s annual report required under 

3 section 701 information on the operations of the Office, 

4 and on improvements in the Government’s ability to assess 

5 foreign availability and mass-market status, during the 

6 fiscal year preceding the report, including information on 

7 the training of personnel, and the use of Commercial Serv8 ice Officers of the United States and Foreign Commercial 

9 Service to assist in making determinations. The informa10 tion shall also include a description of determinations 

11 made under this Act during the preceding fiscal year that 

12 foreign availability or mass-market status did or did not 

13 exist (as the case may be), together with an explanation 

14 of the determinations. 

15 (d) SHARING OF INFORMATION.—Each department 

16 or agency of the United States, including any intelligence

17 agency, and all contractors with any such department or 

18 agency, shall, consistent with the need to protect intel19 ligence sources and methods, furnish information to the 

20 Office concerning foreign availability and the mass-market 

21 status of items subject to export controls under this Act. 
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1 TITLE III—FOREIGN POLICY 

2 EXPORT CONTROLS 

3 SEC. 301. AUTHORITY FOR FOREIGN POLICY EXPORT CON4 TROLS. 

5 (a) AUTHORITY.—

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

7 purposes set forth in subsection (b), the President 

8 may, in accordance with the provisions of this Act, 

9 prohibit, curtail, or require a license, other author10 ization, recordkeeping, or reporting for the export of 

11 any item subject to the jurisdiction of the United 

12 States or exported by any person subject to the ju13 risdiction of the United States. 

14 (2) EXERCISE OF AUTHORITY.—The authority 

15 contained in this subsection shall be exercised by the 

16 Secretary, in consultation with the Secretary of 

17 State and such other departments and agencies as 

18 the Secretary considers appropriate. 

19 (b) PURPOSES.—The purposes of foreign policy ex20 port controls are the following: 

21 (1) To promote the foreign policy objectives of 

22 the United States, consistent with the purposes of 

23 this section and the provisions of this Act. 

24 (2) To promote international peace, stability, 

25 and respect for fundamental human rights. 
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1 (3) To use export controls to deter and punish 

2 acts of international terrorism and to encourage 

3 other countries to take immediate steps to prevent 

4 the use of their territories or resources to aid, en5 courage, or give sanctuary to those persons involved 

6 in directing, supporting, or participating in acts of 

7 international terrorism. 

8 (c) FOREIGN PRODUCTS.—No authority or permis9 sion may be required under this title to reexport to a coun10 try an item that is produced in a country other than the 

11 United States and incorporates parts or components that 

12 are subject to the jurisdiction of the United States, except 

13 that in the case of reexports of an item to a country des14 ignated as a country supporting international terrorism 

15 pursuant to section 310, controls may be maintained if 

16 the value of the controlled United States content is more 

17 than 10 percent of the value of the item. 

18 (d) CONTRACT SANCTITY.—

19 (1) IN GENERAL.—The President may not pro20 hibit the export of any item under this title if that 

21 item is to be exported—

22 (A) in performance of a binding contract, 

23 agreement, or other contractual commitment 

24 entered into before the date on which the Presi25 dent reports to Congress the President’s inten-
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1 tion to impose controls on that item under this 

2 title; or 

3 (B) under a license or other authorization 

4 issued under this Act before the earlier of the 

5 date on which the control is initially imposed or 

6 the date on which the President reports to Con7 gress the President’s intention to impose con8 trols under this title. 

9 (2) EXCEPTION.—The prohibition contained in 

10 paragraph (1) shall not apply in any case in which 

11 the President determines and certifies to the Com12 mittee on Banking, Housing, and Urban Affairs of 

13 the Senate and the Committee on International Re14 lations of the House of Representatives that—

15 (A) there is a serious threat to a foreign 

16 policy interest of the United States; 

17 (B) the prohibition of exports under each 

18 binding contract, agreement, commitment, li19 cense, or authorization will be instrumental in 

20 remedying the situation posing the serious 

21 threat; and 

22 (C) the export controls will be in effect 

23 only as long as the serious threat exists. 

24 SEC. 302. PROCEDURES FOR IMPOSING CONTROLS. 

25 (a) NOTICE.—
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1 (1) INTENT TO IMPOSE FOREIGN POLICY EX2 PORT CONTROL.—Except as provided in section 306, 

3 not later than 45 days before imposing or imple4 menting an export control under this title, the Presi5 dent shall publish in the Federal Register—

6 (A) a notice of intent to do so; and 

7 (B) provide for a period of not less than 

8 30 days for any interested person to submit

9 comments on the export control proposed under 

10 this title. 

11 (2) PURPOSES OF NOTICE.—The purposes of 

12 the notice are—

13 (A) to provide an opportunity for the for14 mulation of an effective export control policy 

15 under this title that advances United States 

16 economic and foreign policy interests; and 

17 (B) to provide an opportunity for negotia18 tions to achieve the purposes set forth in sec19 tion 301(b). 

20 (b) NEGOTIATIONS.—During the 45-day period that 

21 begins on the date of notice described in subsection (a), 

22 the President may negotiate with the government of the 

23 foreign country against which the export control is pro24 posed in order to resolve the reasons underlying the pro25 posed export control.
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1 (c) CONSULTATION.—

2 (1) REQUIREMENT.—The President shall con3 sult with the Committee on Banking, Housing, and 

4 Urban Affairs of the Senate and the Committee on 

5 International Relations of the House of Representa6 tives regarding any export control proposed under 

7 this title and the efforts to achieve or increase multi8 lateral cooperation on the issues or problems under9 lying the proposed export control. 

10 (2) CLASSIFIED CONSULTATION.—The con11 sultations described in paragraph (1) may be con12 ducted on a classified basis if the Secretary con13 siders it necessary. 

14 SEC. 303. CRITERIA FOR FOREIGN POLICY EXPORT CON15 TROLS. 

16 Each export control imposed by the President under 

17 this title shall—

18 (1) have clearly stated and specific United 

19 States foreign policy objectives; 

20 (2) have objective standards for evaluating the 

21 success or failure of the export control; 

22 (3) include an assessment by the President 

23 that—
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1 (A) the export control is likely to achieve 

2 such objectives and the expected time for 

3 achieving the objectives; and 

4 (B) the achievement of the objectives of 

5 the export control outweighs any potential costs 

6 of the export control to other United States 

7 economic, foreign policy, humanitarian, or na8 tional security interests; 

9 (4) be targeted narrowly; and 

10 (5) seek to minimize any adverse impact on the 

11 humanitarian activities of United States and foreign 

12 nongovernmental organizations in the country sub13 ject to the export control. 

14 SEC. 304. PRESIDENTIAL REPORT BEFORE IMPOSITION OF 

15 CONTROL. 

16 (a) REQUIREMENT.—Before imposing an export con17 trol under this title, the President shall submit to the 

18 Committee on Banking, Housing, and Urban Affairs of 

19 the Senate and the Committee on International Relations 

20 of the House of Representatives a report on the proposed 

21 export control. The report may be provided on a classified 

22 basis if the Secretary considers it necessary. 

23 (b) CONTENT.—The report shall contain a descrip24 tion and assessment of each of the criteria described in 
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1 section 303. In addition, the report shall contain a descrip2 tion and assessment of—

3 (1) any diplomatic and other steps that the 

4 United States has taken to accomplish the intended 

5 objective of the proposed export control; 

6 (2) unilateral export controls imposed, and 

7 other measures taken, by other countries to achieve 

8 the intended objective of the proposed export con9 trol; 

10 (3) the likelihood of multilateral adoption of 

11 comparable export controls; 

12 (4) alternative measures to promote the same 

13 objectives and the likelihood of their potential suc14 cess; 

15 (5) any United States obligations under inter16 national trade agreements, treaties, or other inter17 national arrangements, with which the proposed ex18 port control may conflict; 

19 (6) the likelihood that the proposed export con20 trol could lead to retaliation against United States 

21 interests; 

22 (7) the likely economic impact of the proposed 

23 export control on the United States economy, United 

24 States international trade and investment, and 
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1 United States agricultural interests, commercial in2 terests, and employment; and 

3 (8) a conclusion that the probable achievement 

4 of the objectives of the proposed export control out5 weighs any likely costs to United States economic, 

6 foreign policy, humanitarian, or national security in7 terests, including any potential harm to the United 

8 States agricultural and business firms and to the 

9 international reputation of the United States as a 

10 reliable supplier of goods, services, or technology. 

11 SEC. 305. IMPOSITION OF CONTROLS. 

12 The President may impose an export control under 

13 this title after the submission of the report required under 

14 section 304 and publication in the Federal Register of a 

15 notice of the imposition of the export control . 

16 SEC. 306. DEFERRAL AUTHORITY. 

17 (a) AUTHORITY.—The President may defer compli18 ance with any requirement contained in section 302(a), 

19 304, or 305 in the case of a proposed export control if—

20 (1) the President determines that a deferral of 

21 compliance with the requirement is in the national 

22 interest of the United States; and 

23 (2) the requirement is satisfied not later than 

24 60 days after the date on which the export control 

25 is imposed under this title. 
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1 (b) TERMINATION OF CONTROL.—An export control 

2 with respect to which a deferral has been made under sub3 section (a) shall terminate 60 days after the date the ex4 port control is imposed unless all requirements have been 

5 satisfied before the expiration of the 60-day period. 

6 SEC. 307. REVIEW, RENEWAL, AND TERMINATION. 

7 (a) RENEWAL AND TERMINATION.—

8 (1) IN GENERAL.—Any export control imposed 

9 under this title shall terminate on March 31 of each 

10 renewal year unless the President renews the export 

11 control on or before such date. For purposes of this

12 section, the term ‘‘renewal year’’ means 2003 and 

13 every 2 years thereafter. 

14 (2) EXCEPTION.—This section shall not apply 

15 to an export control imposed under this title that—

16 (A) is required by law; 

17 (B) is targeted against any country des18 ignated as a country supporting international 

19 terrorism pursuant to section 310; or 

20 (C) has been in effect for less than 1 year 

21 as of February 1 of a renewal year. 

22 (b) REVIEW.—

23 (1) IN GENERAL.—Not later than February 1 

24 of each renewal year, the President shall review all 

25 export controls in effect under this title.
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1 (2) CONSULTATION.—

2 (A) REQUIREMENT.—Before completing a 

3 review under paragraph (1), the President shall 

4 consult with the Committee on Banking, Hous5 ing, and Urban Affairs of the Senate and the 

6 Committee on International Relations of the 

7 House of Representative regarding each export 

8 control that is being reviewed. 

9 (B) CLASSIFIED CONSULTATION.—The 

10 consultations may be conducted on a classified 

11 basis if the Secretary considers it necessary. 

12 (3) PUBLIC COMMENT.—In conducting the re13 view of each export control under paragraph (1), the 

14 President shall provide a period of not less than 30 

15 days for any interested person to submit comments 

16 on renewal of the export control. The President shall 

17 publish notice of the opportunity for public comment 

18 in the Federal Register not less than 45 days before 

19 the review is required to be completed. 

20 (c) REPORT TO CONGRESS.—

21 (1) REQUIREMENT.—Before renewing an export 

22 control imposed under this title, the President shall 

23 submit to the committees of Congress referred to in 

24 subsection (b)(2)(A) a report on each export control 

25 that the President intends to renew. 
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1 (2) FORM AND CONTENT OF REPORT.—The re2 port may be provided on a classified basis if the Sec3 retary considers it necessary. Each report shall con4 tain the following: 

5 (A) A clearly stated explanation of the spe6 cific United States foreign policy objective that 

7 the existing export control was intended to 

8 achieve. 

9 (B) An assessment of—

10 (i) the extent to which the existing ex11 port control achieved its objectives before 

12 renewal based on the objective criteria es13 tablished for evaluating the export control; 

14 and 

15 (ii) the reasons why the existing ex16 port control has failed to fully achieve its 

17 objectives and, if renewed, how the export 

18 control will achieve that objective before 

19 the next renewal year. 

20 (C) An updated description and assess21 ment of—

22 (i) each of the criteria described in 

23 section 303, and 
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1 (ii) each matter required to be re2 ported under section 304(b) (1) through 

3 (8). 

4 (3) RENEWAL OF EXPORT CONTROL.—The 

5 President may renew an export control under this 

6 title after submission of the report described in 

7 paragraph (2) and publication of notice of renewal 

8 in the Federal Register. 

9 SEC. 308. TERMINATION OF CONTROLS UNDER THIS TITLE. 

10 (a) IN GENERAL.—Notwithstanding any other provi11 sion of law, the President—

12 (1) shall terminate any export control imposed 

13 under this title if the President determines that the 

14 control has substantially achieved the objective for 

15 which it was imposed; and 

16 (2) may terminate at any time any export con17 trol imposed under this title that is not required by 

18 law. 

19 (b) EXCEPTION.—Paragraphs (1) and (2) of sub20 section (a) do not apply to any export control imposed pur21 suant to section 310. 

22 (c) EFFECTIVE DATE OF TERMINATION.—The termi23 nation of an export control pursuant to this section shall 

24 take effect on the date notice of the termination is pub25 lished in the Federal Register. 
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1 SEC. 309. COMPLIANCE WITH INTERNATIONAL OBLIGA2 TIONS. 

3 Notwithstanding any other provision of this Act set4 ting forth limitations on authority to control exports and 

5 except as provided in section 304, the President may im6 pose controls on exports to a particular country or coun7 tries—

8 (1) of items listed on the control list of a multi9 lateral export control regime, as defined in section 

10 2(14); or 

11 (2) in order to fulfill obligations or commit12 ments of the United States under resolutions of the 

13 United Nations and under treaties, or other inter14 national agreements and arrangements, to which the 

15 United States is a party. 

16 SEC. 310. DESIGNATION OF COUNTRIES SUPPORTING 

17 INTERNATIONAL TERRORISM. 

18 (a) LICENSE REQUIRED.—Notwithstanding any 

19 other provision of this Act setting forth limitations on the 

20 authority to control exports, a license shall be required for 

21 the export of any item to a country if the Secretary of 

22 State has determined that—

23 (1) the government of such country has repeat24 edly provided support for acts of international ter25 rorism; and 
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1 (2) the export of the item could make a signifi2 cant contribution to the military potential of such 

3 country, including its military logistics capability, or 

4 could enhance the ability of such country to support 

5 acts of international terrorism. 

6 (b) NOTIFICATION.—The Secretary and the Sec7 retary of State shall notify the Committee on International 

8 Relations of the House of Representatives and the Com9 mittee on Banking, Housing, and Urban Affairs and the 

10 Committee on Foreign Relations of the Senate at least 30 

11 days before issuing any license required by subsection (a). 

12 (c) DETERMINATIONS REGARDING REPEATED SUP13 PORT.—Each determination of the Secretary of State 

14 under subsection (a)(1), including each determination in

15 effect on the date of the enactment of the Antiterrorism 

16 and Arms Export Amendments Act of 1989, shall be pub17 lished in the Federal Register. 

18 (d) LIMITATIONS ON RESCINDING DETERMINA19 TION.—A determination made by the Secretary of State 

20 under subsection (a)(1) may not be rescinded unless the 

21 President submits to the Speaker of the House of Rep22 resentatives and the Chairman of the Committee on Bank23 ing, Housing, and Urban Affairs and the Chairman of the 

24 Committee on Foreign Relations of the Senate—
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1 (1) before the proposed rescission would take 

2 effect, a report certifying that—

3 (A) there has been a fundamental change 

4 in the leadership and policies of the government 

5 of the country concerned; 

6 (B) that government is not supporting acts 

7 of international terrorism; and 

8 (C) that government has provided assur9 ances that it will not support acts of inter10 national terrorism in the future; or 

11 (2) at least 45 days before the proposed rescis12 sion would take effect, a report justifying the rescis13 sion and certifying that—

14 (A) the government concerned has not pro15 vided any support for international terrorism 

16 during the preceding 6-month period; and 

17 (B) the government concerned has pro18 vided assurances that it will not support acts of 

19 international terrorism in the future. 

20 (e) INFORMATION TO BE INCLUDED IN NOTIFICA21 TION.—The Secretary and the Secretary of State shall in22 clude in the notification required by subsection (b)—

23 (1) a detailed description of the item to be of24 fered, including a brief description of the capabilities 

25 of any item for which a license to export is sought; 
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1 (2) the reasons why the foreign country or 

2 international organization to which the export or 

3 transfer is proposed to be made needs the item 

4 which is the subject of such export or transfer and

5 a description of the manner in which such country 

6 or organization intends to use the item; 

7 (3) the reasons why the proposed export or 

8 transfer is in the national interest of the United 

9 States; 

10 (4) an analysis of the impact of the proposed 

11 export or transfer on the military capabilities of the 

12 foreign country or international organization to 

13 which such export or transfer would be made; 

14 (5) an analysis of the manner in which the pro15 posed export would affect the relative military 

16 strengths of countries in the region to which the 

17 item which is the subject of such export would be de18 livered and whether other countries in the region 

19 have comparable kinds and amounts of the item; and 

20 (6) an analysis of the impact of the proposed 

21 export or transfer on the United States relations 

22 with the countries in the region to which the item 

23 which is the subject of such export would be deliv24 ered. 
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1 SEC. 311. CRIME CONTROL INSTRUMENTS. 

2 (a) IN GENERAL.—Crime control and detection in3 struments and equipment shall be approved for export by 

4 the Secretary only pursuant to an individual export li5 cense. Notwithstanding any other provision of this Act—

6 (1) any determination by the Secretary of what 

7 goods or technology shall be included on the list es8 tablished pursuant to this subsection as a result of 

9 the export restrictions imposed by this section shall 

10 be made with the concurrence of the Secretary of 

11 State, and 

12 (2) any determination by the Secretary to ap13 prove or deny an export license application to export 

14 crime control or detection instruments or equipment 

15 shall be made in concurrence with the recommenda16 tions of the Secretary of State submitted to the Sec17 retary with respect to the application pursuant to 

18 section 401 of this Act, 

19 except that, if the Secretary does not agree with the Sec20 retary of State with respect to any determination under 

21 paragraph (1) or (2), the matter shall be referred to the 

22 President for resolution. 

23 (b) EXCEPTION.—The provisions of this section shall 

24 not apply with respect to exports to countries that are 

25 members of the North Atlantic Treaty Organization or to 

26 Japan, Australia, or New Zealand, or to such other coun-
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1 tries as the President shall designate consistent with the 

2 purposes of this section and section 502B of the Foreign 

3 Assistance Act of 1961 (22 U.S.C. 2304). 

4 TITLE IV—PROCEDURES FOR EX5 PORT LICENSES AND INTER6 AGENCY DISPUTE RESOLU7 TION 

8 SEC. 401. EXPORT LICENSE PROCEDURES. 

9 (a) RESPONSIBILITY OF THE SECRETARY.—

10 (1) IN GENERAL.—All applications for a license 

11 or other authorization to export a controlled item 

12 shall be filed in such manner and include such infor13 mation as the Secretary may, by regulation, pre14 scribe. 

15 (2) PROCEDURES.—In guidance and regulations 

16 that implement this section, the Secretary shall de17 scribe the procedures required by this section, the 

18 responsibilities of the Secretary and of other depart19 ments and agencies in reviewing applications, the 

20 rights of the applicant, and other relevant matters 

21 affecting the review of license applications. 

22 (3) CALCULATION OF PROCESSING TIMES.—In 

23 calculating the processing times set forth in this 

24 title, the Secretary shall use calendar days, except 

25 that if the final day for a required action falls on a 
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1 weekend or holiday, that action shall be taken no 

2 later than the following business day. 

3 (4) CRITERIA FOR EVALUATING APPLICA4 TIONS.—In determining whether to grant an appli5 cation to export a controlled item under this Act, the 

6 following criteria shall be considered: 

7 (A) The characteristics of the controlled 

8 item. 

9 (B) The threat to—

10 (i) the national security interests of 

11 the United States from items controlled 

12 under title II of this Act; or

13 (ii) the foreign policy of the United 

14 States from items controlled under title III 

15 of this Act. 

16 (C) The country tier designation of the 

17 country to which a controlled item is to be ex18 ported pursuant to section 203. 

19 (D) The risk of export diversion or misuse 

20 by—

21 (i) the exporter; 

22 (ii) the method of export; 

23 (iii) the end-user; 

24 (iv) the country where the end-user is 

25 located; and 
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1 (v) the end-use. 

2 (E) Risk mitigating factors including, but 

3 not limited to—

4 (i) changing the characteristics of the 

5 controlled item; 

6 (ii) after-market monitoring by the ex7 porter; and 

8 (iii) post-shipment verification. 

9 (b) INITIAL SCREENING.—

10 (1) UPON RECEIPT OF APPLICATION.—Upon re11 ceipt of an export license application, the Secretary 

12 shall enter and maintain in the records of the De13 partment information regarding the receipt and sta14 tus of the application. 

15 (2) INITIAL PROCEDURES.—

16 (A) IN GENERAL.—Not later than 9 days 

17 after receiving any license application, the Sec18 retary shall—

19 (i) contact the applicant if the appli20 cation is improperly completed or if addi21 tional information is required, and hold the 

22 application for a reasonable time while the 

23 applicant provides the necessary correc24 tions or information, and such time shall
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1 not be included in calculating the time pe2 riods prescribed in this title; 

3 (ii) refer the application, through the 

4 use of a common data base or other 

5 means, and all information submitted by 

6 the applicant, and all necessary rec7 ommendations and analyses by the Sec8 retary to the Secretary of Defense, the 

9 Secretary of State, and the heads of and 

10 other departments and agencies the Sec11 retary considers appropriate; 

12 (iii) ensure that the classification stat13 ed on the application for the export items 

14 is correct; and 

15 (iv) return the application if a license 

16 is not required. 

17 (B) REFERRAL NOT REQUIRED.—In the 

18 event that the head of a department or agency 

19 determines that certain types of applications 

20 need not be referred to the department or agen21 cy, such department or agency head shall notify 

22 the Secretary of the specific types of such appli23 cations that the department or agency does not 

24 wish to review. 
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1 (3) WITHDRAWAL OF APPLICATION.—An appli2 cant may, by written notice to the Secretary, with3 draw an application at any time before final action. 

4 (c) ACTION BY OTHER DEPARTMENTS AND AGEN5 CIES.—

6 (1) REFERRAL TO OTHER AGENCIES.—The Sec7 retary shall promptly refer a license application to 

8 the departments and agencies under subsection (b) 

9 to make recommendations and provide information 

10 to the Secretary. 

11 (2) RESPONSIBILITY OF REFERRAL DEPART12 MENTS AND AGENCIES.—The Secretary of Defense, 

13 the Secretary of State, and the heads of other re14 viewing departments and agencies shall take all nec15 essary actions in a prompt and responsible manner 

16 on an application. Each department or agency re17 viewing an application under this section shall estab18 lish and maintain records properly identifying and 

19 monitoring the status of the matter referred to the 

20 department or agency. 

21 (3) ADDITIONAL INFORMATION REQUESTS.—

22 Each department or agency to which a license appli23 cation is referred shall specify to the Secretary any 

24 information that is not in the application that would 

25 be required for the department or agency to make 
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1 a determination with respect to the application, and 

2 the Secretary shall promptly request such informa3 tion from the applicant. The time that may elapse 

4 between the date the information is requested by 

5 that department or agency and the date the infor6 mation is received by that department or agency 

7 shall not be included in calculating the time periods 

8 prescribed in this title. 

9 (4) TIME PERIOD FOR ACTION BY REFERRAL

10 DEPARTMENTS AND AGENCIES.—Within 30 days 

11 after the Secretary refers an application under this 

12 section, each department or agency to which an ap13 plication has been referred shall provide the Sec14 retary with a recommendation either to approve the 

15 license or to deny the license. A recommendation 

16 that the Secretary deny a license shall include a 

17 statement of reasons for the recommendation that 

18 are consistent with the provisions of this title, and 

19 shall cite both the specific statutory and regulatory 

20 basis for the recommendation. A department or 

21 agency that fails to provide a recommendation in ac22 cordance with this paragraph within that 30-day pe23 riod shall be deemed to have no objection to the de24 cision of the Secretary on the application. 
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1 (d) ACTION BY THE SECRETARY.—Not later than 30 

2 days after the date the application is referred, the Sec3 retary shall—

4 (1) if there is agreement among the referral de5 partments and agencies to issue or deny the li6 cense—

7 (A) issue the license and ensure all appro8 priate personnel in the Department (including 

9 the Office of Export Enforcement) are notified 

10 of all approved license applications; or 

11 (B) notify the applicant of the intention to 

12 deny the license; or

13 (2) if there is no agreement among the referral 

14 departments and agencies, notify the applicant that 

15 the application is subject to the interagency dispute 

16 resolution process provided for in section 402. 

17 (e) CONSEQUENCES OF APPLICATION DENIAL.—

18 (1) IN GENERAL.—If a determination is made 

19 to deny a license, the applicant shall be informed in 

20 writing, consistent with the protection of intelligence 

21 information sources and methods, by the Secretary 

22 of—

23 (A) the determination; 

24 (B) the specific statutory and regulatory 

25 bases for the proposed denial; 
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•HR 55 IH 

1 (C) what, if any, modifications to, or re2 strictions on, the items for which the license

3 was sought would allow such export to be com4 patible with export controls imposed under this 

5 Act, and which officer or employee of the De6 partment would be in a position to discuss 

7 modifications or restrictions with the applicant 

8 and the specific statutory and regulatory bases 

9 for imposing such modifications or restrictions; 

10 (D) to the extent consistent with the na11 tional security and foreign policy interests of 

12 the United States, the specific considerations 

13 that led to the determination to deny the appli14 cation; and 

15 (E) the availability of appeal procedures. 

16 (2) PERIOD FOR APPLICANT TO RESPOND.—

17 The applicant shall have 20 days from the date of 

18 the notice of intent to deny the application to re19 spond in a manner that addresses and corrects the 

20 reasons for the denial. If the applicant does not ade21 quately address or correct the reasons for denial or 

22 does not respond, the license shall be denied. If the 

23 applicant does address or correct the reasons for de24 nial, the application shall be considered in a timely 

25 manner.
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1 (f) APPEALS AND OTHER ACTIONS BY APPLICANT.—

2 (1) IN GENERAL.—The Secretary shall establish 

3 appropriate procedures for an applicant to appeal to 

4 the Secretary the denial of an application or other 

5 administrative action under this Act. In any case in 

6 which the Secretary proposes to reverse the decision 

7 with respect to the application, the appeal under this 

8 subsection shall be handled in accordance with the 

9 interagency dispute resolution process provided for 

10 in section 402(b)(3). 

11 (2) ENFORCEMENT OF TIME LIMITS.—

12 (A) IN GENERAL.—In any case in which 

13 an action prescribed in this section is not taken 

14 on an application within the time period estab15 lished by this section (except in the case of a 

16 time period extended under subsection (g) of 

17 which the applicant is notified), the applicant 

18 may file a petition with the Secretary request19 ing compliance with the requirements of this 

20 section. When such petition is filed, the Sec21 retary shall take immediate steps to correct the 

22 situation giving rise to the petition and shall 

23 immediately notify the applicant of such steps. 

24 (B) BRINGING COURT ACTION.—If, within 

25 20 days after a petition is filed under subpara-
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1 graph (A), the processing of the application has 

2 not been brought into conformity with the re3 quirements of this section, or the processing of 

4 the application has been brought into con5 formity with such requirements but the Sec6 retary has not so notified the applicant, the ap7 plicant may bring an action in an appropriate 

8 United States district court for an order requir9 ing compliance with the time periods required 

10 by this section. 

11 (g) EXCEPTIONS FROM REQUIRED TIME PERIODS.—

12 The following actions related to processing an application 

13 shall not be included in calculating the time periods pre14 scribed in this section: 

15 (1) AGREEMENT OF THE APPLICANT.—Delays 

16 upon which the Secretary and the applicant mutu17 ally agree. 

18 (2) PRELICENSE CHECKS.—A prelicense check 

19 (for a period not to exceed 60 days) that may be re20 quired to establish the identity and reliability of the 

21 recipient of items controlled under this Act, if—

22 (A) the need for the prelicense check is de23 termined by the Secretary or by another depart24 ment or agency in any case in which the re-
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•HR 55 IH 

1 quest for the prelicense check is made by such 

2 department or agency; 

3 (B) the request for the prelicense check is 

4 initiated by the Secretary within 5 days after 

5 the determination that the prelicense check is 

6 required; and 

7 (C) the analysis of the result of the 

8 prelicense check is completed by the Secretary 

9 within 5 days. 

10 (3) REQUESTS FOR GOVERNMENT-TO-GOVERN11 MENT ASSURANCES.—Any request by the Secretary 

12 or another department or agency for government-to13 government assurances of suitable end-uses of items 

14 approved for export, when failure to obtain such as15 surances would result in rejection of the application, 

16 if—

17 (A) the request for such assurances is sent 

18 to the Secretary of State within 5 days after 

19 the determination that the assurances are re20 quired; 

21 (B) the Secretary of State initiates the re22 quest of the relevant government within 10 

23 days thereafter; and 
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1 (C) the license is issued within 5 days 

2 after the Secretary receives the requested assur3 ances. 

4 (4) EXCEPTION.—Whenever a prelicense check 

5 described in paragraph (2) or assurances described 

6 in paragraph (3) are not requested within the time 

7 periods set forth therein, then the time expended for 

8 such prelicense check or assurances shall be included 

9 in calculating the time periods established by this 

10 section. 

11 (5) MULTILATERAL REVIEW.—Multilateral re12 view of a license application to the extent that such

13 multilateral review is required by a relevant multilat14 eral regime. 

15 (6) CONGRESSIONAL NOTIFICATION.—Such 

16 time as is required for mandatory congressional noti17 fications under this Act. 

18 (7) CONSULTATIONS.—Consultation with for19 eign governments, if such consultation is provided 

20 for by a relevant multilateral regime as a pre21 condition for approving a license. 

22 (h) CLASSIFICATION REQUESTS AND OTHER INQUIR23 IES.—

24 (1) CLASSIFICATION REQUESTS.—In any case 

25 in which the Secretary receives a written request 
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1 asking for the proper classification of an item on the 

2 Control List or the applicability of licensing require3 ments under this title, the Secretary shall promptly

4 notify the Secretary of Defense and the head of any 

5 department or agency the Secretary considers appro6 priate. The Secretary shall, within 14 days after re7 ceiving the request, inform the person making the 

8 request of the proper classification. 

9 (2) OTHER INQUIRIES.—In any case in which 

10 the Secretary receives a written request for informa11 tion under this Act, the Secretary shall, within 30 

12 days after receiving the request, reply with that in13 formation to the person making the request. 

14 SEC. 402. INTERAGENCY DISPUTE RESOLUTION PROCESS. 

15 (a) IN GENERAL.—All license applications on which 

16 agreement cannot be reached shall be referred to the inter17 agency dispute resolution process for decision. 

18 (b) INTERAGENCY DISPUTE RESOLUTION PROC19 ESS.—

20 (1) INITIAL RESOLUTION.—The Secretary shall 

21 establish, select the chairperson of, and determine 

22 procedures for an interagency committee to review 

23 initially all license applications described in sub24 section (a) with respect to which the Secretary and 

25 any of the referral departments and agencies are not
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•HR 55 IH 

1 in agreement. The chairperson shall consider the po2 sitions of all the referral departments and agencies 

3 (which shall be included in the minutes described in 

4 subsection (c)(2)) and make a decision on the license 

5 application, including appropriate revisions or condi6 tions thereto. 

7 (2) INTELLIGENCE COMMUNITY.—The analytic 

8 product of the intelligence community should be fully 

9 considered with respect to any proposed license 

10 under this title. 

11 (3) FURTHER RESOLUTION.—The President 

12 shall establish additional levels for review or appeal 

13 of any matter that cannot be resolved pursuant to 

14 the process described in paragraph (1). Each such 

15 review shall—

16 (A) provide for decision-making based on 

17 the majority vote of the participating depart18 ments and agencies; 

19 (B) provide that a department or agency 

20 that fails to take a timely position, citing the 

21 specific statutory and regulatory bases for a po22 sition, shall be deemed to have no objection to 

23 the pending decision; 

24 (C) provide that any decision of an inter25 agency committee established under paragraph 
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1 (1) or interagency dispute resolution process es2 tablished under this paragraph may be esca3 lated to the next higher level of review at the 

4 request of an official appointed by the Presi5 dent, by and with the advice of the Senate, or 

6 an officer properly acting in such capacity, of a 

7 department or agency that participated in the 

8 interagency committee or dispute resolution 

9 process that made the decision; and 

10 (D) ensure that matters are resolved or re11 ferred to the President not later than 90 days 

12 after the date the completed license application 

13 is referred by the Secretary. 

14 (c) FINAL ACTION.—

15 (1) IN GENERAL.—Once a final decision is 

16 made under subsection (b), the Secretary shall 

17 promptly—

18 (A) issue the license and ensure that all 

19 appropriate personnel in the Department (in20 cluding the Office of Export Enforcement) are 

21 notified of all approved license applications; or 

22 (B) notify the applicant of the intention to 

23 deny the application. 

24 (2) MINUTES.—The interagency committee and 

25 each level of the interagency dispute resolution proc-
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1 ess shall keep reasonably detailed minutes of all 

2 meetings. On each matter before the interagency 

3 committee or before any other level of the inter4 agency dispute resolution process in which members 

5 disagree, each member shall clearly state the reasons 

6 for the member’s position and the reasons shall be 

7 entered in the minutes. 

8 TITLE V—INTERNATIONAL AR9 RANGEMENTS; FOREIGN BOY10 COTTS; SANCTIONS; AND EN11 FORCEMENT 

12 SEC. 501. INTERNATIONAL ARRANGEMENTS. 

13 (a) MULTILATERAL EXPORT CONTROL REGIMES.—

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

15 States to seek multilateral arrangements that sup16 port the national security objectives of the United 

17 States (as described in title II) and that establish 

18 fairer and more predictable competitive opportunities 

19 for United States exporters. 

20 (2) PARTICIPATION IN EXISTING REGIMES.—

21 Congress encourages the United States to continue 

22 its active participation in and to strengthen existing 

23 multilateral export control regimes. 

24 (3) PARTICIPATION IN NEW REGIMES.—It is the 

25 policy of the United States to participate in addi-
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1 tional multilateral export control regimes if such 

2 participation would serve the national security inter3 ests of the United States. 

4 (b) ANNUAL REPORT ON MULTILATERAL EXPORT

5 CONTROL REGIMES.—Not later than February 1 of each 

6 year, the President shall submit to the Committee on 

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

8 the Committee on International Relations of the House 

9 of Representatives a report evaluating the effectiveness of 

10 each multilateral export control regime, including an as11 sessment of the steps undertaken pursuant to subsections 

12 (c) and (d). The report, or any part of this report, may 

13 be submitted in classified form to the extent the President 

14 considers necessary. 

15 (c) STANDARDS FOR MULTILATERAL EXPORT CON16 TROL REGIMES.—The President shall take steps to estab17 lish the following features in any multilateral export con18 trol regime in which the United States is participating or 

19 may participate: 

20 (1) FULL MEMBERSHIP.—All supplier countries 

21 are members of the regime, and the policies and ac22 tivities of the members are consistent with the objec23 tives and membership criteria of the multilateral ex24 port control regime.
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1 (2) EFFECTIVE ENFORCEMENT AND COMPLI2 ANCE.—The regime promotes enforcement and com3 pliance with the regime’s rules and guidelines. 

4 (3) PUBLIC UNDERSTANDING.—The regime 

5 makes an effort to enhance public understanding of

6 the purpose and procedures of the multilateral ex7 port control regime. 

8 (4) EFFECTIVE IMPLEMENTATION PROCE9 DURES.—The multilateral export control regime has 

10 procedures for the uniform and consistent interpre11 tation and implementation of its rules and guide12 lines. 

13 (5) ENHANCED COOPERATION WITH REGIME

14 NONMEMBERS.—There is agreement among the 

15 members of the multilateral export control regime 

16 to— 

17 (A) cooperate with governments outside 

18 the regime to restrict the export of items con19 trolled by such regime; and 

20 (B) establish an ongoing mechanism in the 

21 regime to coordinate planning and implementa22 tion of export control measures related to such 

23 cooperation. 

24 (6) PERIODIC HIGH-LEVEL MEETINGS.—There 

25 are regular periodic meetings of high-level represent-
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1 atives of the governments of members of the multi2 lateral export control regime for the purpose of co3 ordinating export control policies and issuing policy 

4 guidance to members of the regime. 

5 (7) COMMON LIST OF CONTROLLED ITEMS.—

6 There is agreement on a common list of items con7 trolled by the multilateral export control regime. 

8 (8) REGULAR UPDATES OF COMMON LIST.—

9 There is a procedure for removing items from the 

10 list of controlled items when the control of such 

11 items no longer serves the objectives of the members 

12 of the multilateral export control regime. 

13 (9) TREATMENT OF CERTAIN COUNTRIES.—

14 There is agreement to prevent the export or diver15 sion of the most sensitive items to countries whose 

16 activities are threatening to the national security of 

17 the United States or its allies. 

18 (10) HARMONIZATION OF LICENSE APPROVAL

19 PROCEDURES.—There is harmonization among the 

20 members of the regime of their national export li21 cense approval procedures, practices, and standards. 

22 (11) UNDERCUTTING.—There is a limit with re23 spect to when members of a multilateral export con24 trol regime—
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1 (A) grant export licenses for any item that 

2 is substantially identical to or directly competi3 tive with an item controlled pursuant to the re4 gime, where the United States has denied an 

5 export license for such item, or 

6 (B) approve exports to a particular end 

7 user to which the United States has denied ex8 port license for a similar item. 

9 (d) STANDARDS FOR NATIONAL EXPORT CONTROL

10 SYSTEMS.—The President shall take steps to attain the 

11 cooperation of members of each regime in implementing 

12 effective national export control systems containing the 

13 following features: 

14 (1) EXPORT CONTROL LAW.—Enforcement au15 thority, civil and criminal penalties, and statutes of 

16 limitations are sufficient to deter potential violations 

17 and punish violators under the member’s export con18 trol law. 

19 (2) LICENSE APPROVAL PROCESS.—The system 

20 for evaluating export license applications includes 

21 sufficient technical expertise to assess the licensing 

22 status of exports and ensure the reliability of end 

23 users. 
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1 (3) ENFORCEMENT.—The enforcement mecha2 nism provides authority for trained enforcement offi3 cers to investigate and prevent illegal exports. 

4 (4) DOCUMENTATION.—There is a system of 

5 export control documentation and verification with 

6 respect to controlled items. 

7 (5) INFORMATION.—There are procedures for 

8 the coordination and exchange of information con9 cerning licensing, end users, and enforcement with 

10 other members of the multilateral export control re11 gime. 

12 (6) RESOURCES.—The member has devoted 

13 adequate resources to administer effectively the au14 thorities, systems, mechanisms, and procedures de15 scribed in paragraphs (1) through (5). 

16 (e) OBJECTIVES REGARDING MULTILATERAL EX17 PORT CONTROL REGIMES.—The President shall seek to 

18 achieve the following objectives with regard to multilateral 

19 export control regimes: 

20 (1) STRENGTHEN EXISTING REGIMES.—

21 Strengthen existing multilateral export control re22 gimes— 

23 (A) by creating a requirement to share in24 formation about export license applications 
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1 among members before a member approves an 

2 export license; and 

3 (B) harmonizing national export license 

4 approval procedures and practices, including 

5 the elimination of undercutting. 

6 (2) REVIEW AND UPDATE.—Review and update 

7 multilateral regime export control lists with other 

8 members, taking into account— 

9 (A) national security concerns; 

10 (B) the controllability of items; and

11 (C) the costs and benefits of controls. 

12 (3) ENCOURAGE COMPLIANCE BY NONMEM13 BERS.—Encourage nonmembers of the multilateral 

14 export control regime—

15 (A) to strengthen their national export 

16 control regimes and improve enforcement; 

17 (B) to adhere to the appropriate multilat18 eral export control regime; and 

19 (C) not to undermine an existing multilat20 eral export control regime by exporting con21 trolled items in a manner inconsistent with the 

22 guidelines of the regime. 

23 (f) TRANSPARENCY OF MULTILATERAL EXPORT

24 CONTROL REGIMES.—
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1 (1) PUBLICATION OF INFORMATION ON EACH

2 EXISTING REGIME.—Not later than 120 days after 

3 the date of enactment of this Act, the Secretary 

4 shall, for each multilateral export control regime, to 

5 the extent that it is not inconsistent with the ar6 rangements of that regime (in the judgment of the 

7 Secretary of State) or with the national interest, 

8 publish in the Federal Register and post on the De9 partment of Commerce website the following infor10 mation with respect to the regime: 

11 (A) The purposes of the regime. 

12 (B) The members of the regime. 

13 (C) The export licensing policy of the re14 gime. 

15 (D) The items that are subject to export 

16 controls under the regime, together with all 

17 public notes, understandings, and other aspects 

18 of the agreement of the regime, and all changes 

19 thereto. 

20 (E) Any countries, end uses, or end users 

21 that are subject to the export controls of the re22 gime. 

23 (F) Rules of interpretation. 

24 (G) Major policy actions. 
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1 (H) The rules and procedures of the re2 gime for establishing and modifying any matter 

3 described in subparagraphs (A) through (G) 

4 and for reviewing export license applications. 

5 (2) NEW REGIMES.—Not later than 60 days 

6 after the United States joins or organizes a new 

7 multilateral export control regime, the Secretary 

8 shall, to the extent that it is not inconsistent with 

9 arrangements under the regime (in the judgment of 

10 the Secretary of State) or with the national interest, 

11 publish in the Federal Register and post on the De12 partment of Commerce website the information de13 scribed in subparagraphs (A) through (H) of para14 graph (1) with respect to the regime. 

15 (3) PUBLICATION OF CHANGES.—Not later 

16 than 60 days after a multilateral export control re17 gime adopts any change in the information published 

18 under this subsection, the Secretary shall, to the ex19 tent not inconsistent with the arrangements under 

20 the regime or the national interest, publish such 

21 changes in the Federal Register and post such 

22 changes on the Department of Commerce website. 

23 (g) SUPPORT OF OTHER COUNTRIES’ EXPORT CON24 TROL SYSTEMS.—The Secretary is encouraged to continue 

25 to— 
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1 (1) participate in training of, and provide train2 ing to, officials of other countries on the principles 

3 and procedures for implementing effective export 

4 controls; and 

5 (2) participate in any such training provided by 

6 other departments and agencies of the United 

7 States. 

8 SEC. 502. FOREIGN BOYCOTTS. 

9 (a) PURPOSES.—The purposes of this section are as 

10 follows: 

11 (1) To counteract restrictive trade practices or 

12 boycotts fostered or imposed by foreign countries 

13 against other countries friendly to the United States 

14 or against any United States person. 

15 (2) To encourage and, in specified cases, re16 quire United States persons engaged in the export of 

17 items to refuse to take actions, including furnishing 

18 information or entering into or implementing agree19 ments, which have the effect of furthering or sup20 porting the restrictive trade practices or boycotts 

21 fostered or imposed by any foreign country against 

22 a country friendly to the United States or against 

23 any United States person. 

24 (b) PROHIBITIONS AND EXCEPTIONS.—
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1 (1) PROHIBITIONS.—In order to carry out the 

2 purposes set forth in subsection (a), the President 

3 shall issue regulations prohibiting any United States 

4 person, with respect to that person’s activities in the 

5 interstate or foreign commerce of the United States, 

6 from taking or knowingly agreeing to take any of 

7 the following actions with intent to comply with, fur8 ther, or support any boycott fostered or imposed by 

9 a foreign country against a country that is friendly

10 to the United States and is not itself the object of 

11 any form of boycott pursuant to United States law 

12 or regulation: 

13 (A) Refusing, or requiring any other per14 son to refuse, to do business with or in the boy15 cotted country, with any business concern orga16 nized under the laws of the boycotted country, 

17 with any national or resident of the boycotted 

18 country, or with any other person, pursuant to 

19 an agreement with, or requirement of, or a re20 quest from or on behalf of the boycotting coun21 try (subject to the condition that the intent re22 quired to be associated with such an act in 

23 order to constitute a violation of the prohibition 

24 is not indicated solely by the mere absence of 

25 a business relationship with or in the boycotted 
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1 country, with any business concern organized 

2 under the laws of the boycotted country, with 

3 any national or resident of the boycotted coun4 try, or with any other person). 

5 (B) Refusing, or requiring any other per6 son to refuse, to employ or otherwise discrimi7 nate against any United States person on the 

8 basis of the race, religion, sex, or national ori9 gin of that person or of any owner, officer, di10 rector, or employee of such person. 

11 (C) Furnishing information with respect to 

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

13 United States person or of any owner, officer, 

14 director, or employee of such person. 

15 (D) Furnishing information (other than 

16 furnishing normal business information in a 

17 commercial context, as defined by the Sec18 retary) about whether any person has, has had, 

19 or proposes to have any business relationship 

20 (including a relationship by way of sale, pur21 chase, legal or commercial representation, ship22 ping or other transport, insurance, investment, 

23 or supply) with or in the boycotted country, 

24 with any business concern organized under the 

25 laws of the boycotted country, with any national
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1 or resident of the boycotted country, or with 

2 any other person that is known or believed to 

3 be restricted from having any business relation4 ship with or in the boycotting country. 

5 (E) Furnishing information about whether 

6 any person is a member of, has made a con7 tribution to, or is otherwise associated with or 

8 involved in the activities of any charitable or 

9 fraternal organization which supports the boy10 cotted country. 

11 (F) Paying, honoring, confirming, or other12 wise implementing a letter of credit which con13 tains any condition or requirement the compli14 ance with which is prohibited by regulations 

15 issued pursuant to this paragraph, and no 

16 United States person shall, as a result of the 

17 application of this paragraph, be obligated to 

18 pay or otherwise honor or implement such letter 

19 of credit. 

20 (2) EXCEPTIONS.—Regulations issued pursuant 

21 to paragraph (1) shall provide exceptions for—

22 (A) compliance, or agreement to comply, 

23 with requirements—

24 (i) prohibiting the import of items 

25 from the boycotted country or items pro-
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1 duced or provided, by any business concern 

2 organized under the laws of the boycotted 

3 country or by nationals or residents of the 

4 boycotted country; or 

5 (ii) prohibiting the shipment of items 

6 to the boycotting country on a carrier of 

7 the boycotted country or by a route other 

8 than that prescribed by the boycotting 

9 country or the recipient of the shipment; 

10 (B) compliance, or agreement to comply, 

11 with import and shipping document require12 ments with respect to the country of origin, the 

13 name of the carrier and route of shipment, the 

14 name of the supplier of the shipment, or the 

15 name of the provider of other services, except 

16 that, for purposes of applying any exception 

17 under this subparagraph, no information know18 ingly furnished or conveyed in response to such 

19 requirements may be stated in negative, black20 listing, or similar exclusionary terms, other 

21 than with respect to carriers or route of ship22 ment as may be permitted by such regulations 

23 in order to comply with precautionary require24 ments protecting against war risks and confis25 cation; 
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1 (C) compliance, or agreement to comply, in 

2 the normal course of business with the unilat3 eral and specific selection by a boycotting coun4 try, or a national or resident thereof, or car5 riers, insurers, suppliers of services to be per6 formed within the boycotting country, or spe7 cific items which, in the normal course of busi8 ness, are identifiable by source when imported 

9 into the boycotting country; 

10 (D) compliance, or agreement to comply, 

11 with export requirements of the boycotting 

12 country relating to shipment or transshipment 

13 of exports to the boycotted country, to any busi14 ness concern of or organized under the laws of 

15 the boycotted country, or to any national or 

16 resident of the boycotted country; 

17 (E) compliance by an individual, or agree18 ment by an individual to comply, with the immi19 gration or passport requirements of any country 

20 with respect to such individual or any member 

21 of such individual’s family or with requests for 

22 information regarding requirements of employ23 ment of such individual within the boycotting 

24 country; and 
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1 (F) compliance by a United States person 

2 resident in a foreign country, or agreement by 

3 such a person to comply, with the laws of the 

4 country with respect to the person’s activities 

5 exclusively therein, and such regulations may 

6 contain exceptions for such resident complying 

7 with the laws or regulations of the foreign coun8 try governing imports into such country of

9 trademarked, trade-named, or similarly specifi10 cally identifiable products, or components of 

11 products for such person’s own use, including 

12 the performance of contractual services within 

13 that country. 

14 (3) LIMITATION ON EXCEPTIONS.—Regulations 

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

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

17 and (1)(C). 

18 (4) ANTITRUST AND CIVIL RIGHTS LAWS NOT

19 AFFECTED.—Nothing in this subsection may be con20 strued to supersede or limit the operation of the 

21 antitrust or civil rights laws of the United States. 

22 (5) EVASION.—This section applies to any 

23 transaction or activity undertaken by or through a 

24 United States person or any other person with in25 tent to evade the provisions of this section or the 
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1 regulations issued pursuant to this subsection. The 

2 regulations issued pursuant to this section shall ex3 pressly provide that the exceptions set forth in para4 graph (2) do not permit activities or agreements (ex5 pressed or implied by a course of conduct, including 

6 a pattern of responses) that are otherwise prohib7 ited, pursuant to the intent of such exceptions. 

8 (c) ADDITIONAL REGULATIONS AND REPORTS.—

9 (1) REGULATIONS.—In addition to the regula10 tions issued pursuant to subsection (b), regulations 

11 issued pursuant to title III shall implement the pur12 poses set forth in subsection (a).

13 (2) REPORTS BY UNITED STATES PERSONS.—

14 The regulations shall require that any United States 

15 person receiving a request to furnish information, 

16 enter into or implement an agreement, or take any 

17 other action referred to in subsection (a) shall report 

18 that request to the Secretary, together with any 

19 other information concerning the request that the 

20 Secretary determines appropriate. The person shall 

21 also submit to the Secretary a statement regarding 

22 whether the person intends to comply, and whether 

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

25 available promptly for public inspection and copying,
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1 except that information regarding the quantity, de2 scription, and value of any item to which such report 

3 relates may be treated as confidential if the Sec4 retary determines that disclosure of that information 

5 would place the United States person involved at a 

6 competitive disadvantage. The Secretary shall peri7 odically transmit summaries of the information con8 tained in the reports to the Secretary of State for 

9 such action as the Secretary of State, in consultation 

10 with the Secretary, considers appropriate to carry 

11 out the purposes set forth in subsection (a). 

12 (d) PREEMPTION.—The provisions of this section and 

13 the regulations issued under this section shall preempt any 

14 law, rule, or regulation that—

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

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

17 the territories or possessions of the United States, 

18 or of any governmental subdivision thereof; and 

19 (2) pertains to participation in, compliance 

20 with, implementation of, or the furnishing of infor21 mation regarding restrictive trade practices or boy22 cotts fostered or imposed by foreign countries 

23 against other countries. 

24 SEC. 503. PENALTIES. 

25 (a) CRIMINAL PENALTIES.—
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1 (1) VIOLATIONS BY AN INDIVIDUAL.—Any indi2 vidual who willfully violates, conspires to violate, or 

3 attempts to violate any provision of this Act or any 

4 regulation, license, or order issued under this Act 

5 shall be fined up to 10 times the value of the exports 

6 involved or $1,000,000, whichever is greater, impris7 oned for not more than 10 years, or both, for each 

8 violation. 

9 (2) VIOLATIONS BY A PERSON OTHER THAN AN

10 INDIVIDUAL.—Any person other than an individual 

11 who willfully violates, conspires to violate, or at12 tempts to violate any provision of this Act or any 

13 regulation, license, or order issued under this Act 

14 shall be fined up to 10 times the value of the exports 

15 involved or $5,000,000, whichever is greater, for 

16 each violation. 

17 (b) FORFEITURE OF PROPERTY INTEREST AND PRO18 CEEDS.—

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

20 under paragraph (1) or (2) of subsection (a) shall, 

21 in addition to any other penalty, forfeit to the 

22 United States—

23 (A) any of that person’s security or other 

24 interest in, claim against, or property or con-
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1 tractual rights of any kind in the tangible items 

2 that were the subject of the violation; 

3 (B) any of that person’s security or other 

4 interest in, claim against, or property or con5 tractual rights of any kind in the tangible prop6 erty that was used in the export or attempt to 

7 export that was the subject of the violation; and 

8 (C) any of that person’s property consti9 tuting, or derived from, any proceeds obtained 

10 directly or indirectly as a result of the violation. 

11 (2) PROCEDURES.—The procedures in any for12 feiture under this subsection, and the duties and au13 thority of the courts of the United States and the 

14 Attorney General with respect to any forfeiture ac15 tion under this subsection, or with respect to any 

16 property that may be subject to forfeiture under this 

17 subsection, shall be governed by the provisions of 

18 chapter 46 of title 18, United States Code (relating 

19 to criminal forfeiture), to the same extent as prop20 erty subject to forfeiture under that chapter. 

21 (c) CIVIL PENALTIES; ADMINISTRATIVE SANC22 TIONS.— 

23 (1) CIVIL PENALTIES.—The Secretary may im24 pose a civil penalty of up to $500,000 for each viola25 tion of a provision of this Act or any regulation, li-
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1 cense, or order issued under this Act. A civil penalty 

2 under this paragraph may be in addition to, or in 

3 lieu of, any other liability or penalty which may be 

4 imposed for such a violation. 

5 (2) DENIAL OF EXPORT PRIVILEGES.—The Sec6 retary may deny the export privileges of any person, 

7 including the suspension or revocation of the author8 ity of such person to export or receive United 

9 States-origin items subject to this Act, for a viola10 tion of a provision of this Act or any regulation, li11 cense, or order issued under this Act. 

12 (3) EXCLUSION FROM PRACTICE.—The Sec13 retary may exclude any person acting as an attor14 ney, accountant, consultant, freight forwarder, or in 

15 any other representative capacity from participating 

16 before the Department with respect to a license ap17 plication or any other matter under this Act. 

18 (d) PAYMENT OF CIVIL PENALTIES.—

19 (1) PAYMENT AS CONDITION OF FURTHER EX20 PORT PRIVILEGES.—The payment of a civil penalty 

21 imposed under subsection (c) may be made a condi22 tion for the granting, restoration, or continuing va23 lidity of any export license, permission, or privilege 

24 granted or to be granted to the person upon whom 

25 such penalty is imposed. The period for which the 
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1 payment of a penalty may be made such a condition 

2 may not exceed 1 year after the date on which the 

3 payment is due. 

4 (2) DEFERRAL OR SUSPENSION.—

5 (A) IN GENERAL.—The payment of a civil 

6 penalty imposed under subsection (c) may be 

7 deferred or suspended in whole or in part for a 

8 period no longer than any probation period 

9 (which may exceed 1 year) that may be imposed 

10 upon the person on whom the penalty is im11 posed.

12 (B) NO BAR TO COLLECTION OF PEN13 ALTY.—A deferral or suspension under sub14 paragraph (A) shall not operate as a bar to the 

15 collection of the penalty concerned in the event 

16 that the conditions of the suspension, deferral, 

17 or probation are not fulfilled. 

18 (3) TREATMENT OF PAYMENTS.—Any amount 

19 paid in satisfaction of a civil penalty imposed under 

20 subsection (c) shall be covered into the Treasury as 

21 miscellaneous receipts. 

22 (e) REFUNDS.—

23 (1) AUTHORITY.—

24 (A) IN GENERAL.—The Secretary may, in 

25 the Secretary’s discretion, refund any civil pen-
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1 alty imposed under subsection (c) on the 

2 ground of a material error of fact or law in im3 position of the penalty. 

4 (B) LIMITATION.—A civil penalty may not 

5 be refunded under subparagraph (A) later than 

6 2 years after payment of the penalty. 

7 (2) PROHIBITION ON ACTIONS FOR REFUND.—

8 Notwithstanding section 1346(a) of title 28, United 

9 States Code, no action for the refund of any civil 

10 penalty referred to in paragraph (1) may be main11 tained in any court. 

12 (f) EFFECT OF OTHER CONVICTIONS.— 

13 (1) DENIAL OF EXPORT PRIVILEGES.—Any per14 son convicted of a violation of— 

15 (A) a provision of this Act or the Export 

16 Administration Act of 1979, 

17 (B) a provision of the International Emer18 gency Economic Powers Act (50 U.S.C. 1701 et 

19 seq.), 

20 (C) section 793, 794, or 798 of title 18, 

21 United States Code, 

22 (D) section 4(b) of the Internal Security 

23 Act of 1950 (50 U.S.C. 783(b)), 

24 (E) section 38 of the Arms Export Control 

25 Act (22 U.S.C. 2778),
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1 (F) section 16 of the Trading with the 

2 Enemy Act (50 U.S.C. App. 16), 

3 (G) any regulation, license, or order issued 

4 under any provision of law listed in subpara5 graph (A), (B), (C), (D), (E), or (F), 

6 (H) section 371 or 1001 of title 18, United 

7 States Code, if in connection with the export of 

8 controlled items under this Act or any regula9 tion, license, or order issued under the Inter10 national Emergency Economic Powers Act, or 

11 the export of items controlled under the Arms 

12 Export Control Act, 

13 (I) section 175 of title 18, United States 

14 Code, 

15 (J) a provision of the Atomic Energy Act 

16 (42 U.S.C. 201 et seq.), 

17 (K) section 831 of title 18, United States 

18 Code, or 

19 (L) section 2332a of title 18, United 

20 States Code, 

21 may, at the discretion of the Secretary, be denied ex22 port privileges under this Act for a period not to ex23 ceed 10 years from the date of the conviction. The 

24 Secretary may also revoke any export license under 
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1 this Act in which such person had an interest at the 

2 time of the conviction. 

3 (2) RELATED PERSONS.—The Secretary may 

4 exercise the authority under paragraph (1) with re5 spect to any person related through affiliation, own6 ership, control, or position of responsibility to a per7 son convicted of any violation of a law set forth in 

8 paragraph (1) upon a showing of such relationship 

9 with the convicted person. The Secretary shall make 

10 such showing only after providing notice and oppor11 tunity for a hearing. 

12 (g) STATUTE OF LIMITATIONS.—

13 (1) IN GENERAL.—Except as provided in para14 graph (2), a proceeding in which a civil penalty or 

15 other administrative sanction (other than a tem16 porary denial order) is sought under subsection (c) 

17 may not be instituted more than 5 years after the 

18 later of the date of the alleged violation or the date 

19 of discovery of the alleged violation. 

20 (2) EXCEPTION.—

21 (A) TOLLING.—In any case in which a 

22 criminal indictment alleging a violation under 

23 subsection (a) is returned within the time limits 

24 prescribed by law for the institution of such ac25 tion, the limitation under paragraph (1) for 
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1 bringing a proceeding to impose a civil penalty 

2 or other administrative sanction under this sec3 tion shall, upon the return of the criminal in4 dictment, be tolled against all persons named as 

5 a defendant. 

6 (B) DURATION.—The tolling of the limita7 tion with respect to a defendant under subpara8 graph (A) as a result of a criminal indictment 

9 shall continue for a period of 6 months from 

10 the date on which the conviction of the defend11 ant becomes final, the indictment against the 

12 defendant is dismissed, or the criminal action 

13 has concluded. 

14 (h) VIOLATIONS DEFINED BY REGULATION.—Noth15 ing in this section shall limit the authority of the Secretary 

16 to define by regulation violations under this Act. 

17 (i) CONSTRUCTION.—Nothing in subsection (c), (d), 

18 (e), (f), or (g) limits— 

19 (1) the availability of other administrative or 

20 judicial remedies with respect to a violation of a pro21 vision of this Act, or any regulation, order, or license 

22 issued under this Act; 

23 (2) the authority to compromise and settle ad24 ministrative proceedings brought with respect to any 

25 such violation; or 
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1 (3) the authority to compromise, remit, or miti2 gate seizures and forfeitures pursuant to section 

3 1(b) of title VI of the Act of June 15, 1917 (22 

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

5 SEC. 504. MISSILE PROLIFERATION CONTROL VIOLATIONS. 

6 (a) VIOLATIONS BY UNITED STATES PERSONS.—

7 (1) SANCTIONS.—

8 (A) IN GENERAL.—If the President deter9 mines that a United States person knowingly—

10 (i) exports, transfers, or otherwise en11 gages in the trade of any item on the

12 MTCR Annex, in violation of the provi13 sions of section 38 (22 U.S.C. 2778) or 

14 chapter 7 of the Arms Export Control Act, 

15 title II or III of this Act, or any regula16 tions or orders issued under any such pro17 visions, 

18 (ii) conspires to or attempts to engage 

19 in such export, transfer, or trade, or 

20 (iii) facilitates such export, transfer, 

21 or trade by any other person, 

22 then the President shall impose the applicable 

23 sanctions described in subparagraph (B). 
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1 (B) SANCTIONS DESCRIBED.—The sanc2 tions which apply to a United States person 

3 under subparagraph (A) are the following: 

4 (i) If the item on the MTCR Annex 

5 involved in the export, transfer, or trade is 

6 missile equipment or technology within cat7 egory II of the MTCR Annex, then the 

8 President shall deny to such United States 

9 person, for a period of 2 years, licenses for 

10 the transfer of missile equipment or tech11 nology controlled under this Act. 

12 (ii) If the item on the MTCR Annex 

13 involved in the export, transfer, or trade is 

14 missile equipment or technology within cat15 egory I of the MTCR Annex, then the 

16 President shall deny to such United States 

17 person, for a period of not less than 2 

18 years, all licenses for items the export of 

19 which is controlled under this Act. 

20 (2) DISCRETIONARY SANCTIONS.—In the case 

21 of any determination referred to in paragraph (1), 

22 the Secretary may pursue any other appropriate 

23 penalties under section 503. 

24 (3) WAIVER.—The President may waive the im25 position of sanctions under paragraph (1) on a per-
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1 son with respect to an item if the President certifies 

2 to Congress that—

3 (A) the item is essential to the national se4 curity of the United States; and 

5 (B) such person is a sole source supplier of 

6 the item, the item is not available from any al7 ternative reliable supplier, and the need for the 

8 item cannot be met in a timely manner by im9 proved manufacturing processes or technological 

10 developments. 

11 (b) TRANSFERS OF MISSILE EQUIPMENT OR TECH12 NOLOGY BY FOREIGN PERSONS.—

13 (1) SANCTIONS.—

14 (A) IN GENERAL.—Subject to paragraphs 

15 (3) through (7), if the President determines 

16 that a foreign person, after the date of enact17 ment of this section, knowingly—

18 (i) exports, transfers, or otherwise en19 gages in the trade of any MTCR equip20 ment or technology that contributes to the 

21 design, development, or production of mis22 siles in a country that is not an MTCR ad23 herent and would be, if it were United 

24 States-origin equipment or technology,
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1 subject to the jurisdiction of the United 

2 States under this Act, 

3 (ii) conspires to or attempts to engage 

4 in such export, transfer, or trade, or 

5 (iii) facilitates such export, transfer, 

6 or trade by any other person, 

7 or if the President has made a determination 

8 with respect to a foreign person under section 

9 73(a) of the Arms Export Control Act, then the 

10 President shall impose on that foreign person 

11 the applicable sanctions under subparagraph 

12 (B). 

13 (B) SANCTIONS DESCRIBED.—The sanc14 tions which apply to a foreign person under 

15 subparagraph (A) are the following: 

16 (i) If the item involved in the export, 

17 transfer, or trade is within category II of 

18 the MTCR Annex, then the President shall 

19 deny, for a period of 2 years, licenses for 

20 the transfer to such foreign person of mis21 sile equipment or technology the export of 

22 which is controlled under this Act. 

23 (ii) If the item involved in the export, 

24 transfer, or trade is within category I of 

25 the MTCR Annex, then the President shall 
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1 deny, for a period of not less than 2 years, 

2 licenses for the transfer to such foreign 

3 person of items the export of which is con4 trolled under this Act. 

5 (iii) If, in addition to actions taken 

6 under clauses (i) and (ii), the President de7 termines that the export, transfer, or trade 

8 has substantially contributed to the design, 

9 development, or production of missiles in a 

10 country that is not an MTCR adherent, 

11 then the President shall prohibit, for a pe12 riod of not less than 2 years, the importa13 tion into the United States of products 

14 produced by that foreign person. 

15 (2) INAPPLICABILITY WITH RESPECT TO MTCR

16 ADHERENTS.—Paragraph (1) does not apply with 

17 respect to—

18 (A) any export, transfer, or trading activ19 ity that is authorized by the laws of an MTCR 

20 adherent, if such authorization is not obtained 

21 by misrepresentation or fraud; or 

22 (B) any export, transfer, or trade of an 

23 item to an end user in a country that is an 

24 MTCR adherent. 
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1 (3) EFFECT OF ENFORCEMENT ACTIONS BY

2 MTCR ADHERENTS.—Sanctions set forth in para3 graph (1) may not be imposed under this subsection 

4 on a person with respect to acts described in such 

5 paragraph or, if such sanctions are in effect against 

6 a person on account of such acts, such sanctions 

7 shall be terminated, if an MTCR adherent is taking 

8 judicial or other enforcement action against that 

9 person with respect to such acts, or that person has 

10 been found by the government of an MTCR adher11 ent to be innocent of wrongdoing with respect to 

12 such acts.

13 (4) ADVISORY OPINIONS.—The Secretary, in 

14 consultation with the Secretary of State and the 

15 Secretary of Defense, may, upon the request of any 

16 person, issue an advisory opinion to that person as 

17 to whether a proposed activity by that person would 

18 subject that person to sanctions under this sub19 section. Any person who relies in good faith on such 

20 an advisory opinion which states that the proposed

21 activity would not subject a person to such sanc22 tions, and any person who thereafter engages in 

23 such activity, may not be made subject to such sanc24 tions on account of such activity. 

25 (5) WAIVER AND REPORT TO CONGRESS.—
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1 (A) WAIVER.—In any case other than one 

2 in which an advisory opinion has been issued 

3 under paragraph (4) stating that a proposed ac4 tivity would not subject a person to sanctions 

5 under this subsection, the President may waive 

6 the application of paragraph (1) to a foreign 

7 person if the President determines that such 

8 waiver is essential to the national security of 

9 the United States. 

10 (B) REPORT TO CONGRESS.—In the event 

11 that the President decides to apply the waiver 

12 described in subparagraph (A), the President 

13 shall so notify Congress not less than 20 work14 ing days before issuing the waiver. Such notifi15 cation shall include a report fully articulating 

16 the rationale and circumstances which led the 

17 President to apply the waiver. 

18 (6) ADDITIONAL WAIVER.—The President may 

19 waive the imposition of sanctions under paragraph

20 (1) on a person with respect to a product or service 

21 if the President certifies to the Congress that—

22 (A) the product or service is essential to 

23 the national security of the United States; and 

24 (B) such person is a sole source supplier of 

25 the product or service, the product or service is 
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1 not available from any alternative reliable sup2 plier, and the need for the product or service 

3 cannot be met in a timely manner by improved 

4 manufacturing processes or technological devel5 opments. 

6 (7) EXCEPTIONS.—The President shall not 

7 apply the sanction under this subsection prohibiting 

8 the importation of the products of a foreign per9 son—

10 (A) in the case of procurement of defense 

11 articles or defense services—

12 (i) under existing contracts or sub13 contracts, including the exercise of options 

14 for production quantities to satisfy require15 ments essential to the national security of 

16 the United States; 

17 (ii) if the President determines that 

18 the person to which the sanctions would be 

19 applied is a sole source supplier of the de20 fense articles and services, that the defense 

21 articles or services are essential to the na22 tional security of the United States, and 

23 that alternative sources are not readily or 

24 reasonably available; or
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1 (iii) if the President determines that 

2 such articles or services are essential to the 

3 national security of the United States 

4 under defense coproduction agreements or 

5 NATO Programs of Cooperation; 

6 (B) to products or services provided under 

7 contracts entered into before the date on which 

8 the President publishes his intention to impose 

9 the sanctions; or 

10 (C) to—

11 (i) spare parts, 

12 (ii) component parts, but not finished 

13 products, essential to United States prod14 ucts or production, 

15 (iii) routine services and maintenance 

16 of products, to the extent that alternative 

17 sources are not readily or reasonably avail18 able, or 

19 (iv) information and technology essen20 tial to United States products or produc21 tion. 

22 (c) DEFINITIONS.—In this section: 

23 (1) MISSILE.—The term ‘‘missile’’ means a cat24 egory I system as defined in the MTCR Annex, and 

25 any other unmanned delivery system of similar capa-
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1 bility, as well as the specially designed production 

2 facilities for these systems. 

3 (2) MISSILE TECHNOLOGY CONTROL REGIME; 

4 MTCR.—The term ‘‘Missile Technology Control Re5 gime’’ or ‘‘MTCR’’ means the policy statement, be6 tween the United States, the United Kingdom, the 

7 Federal Republic of Germany, France, Italy, Can8 ada, and Japan, announced on April 16, 1987, to re9 strict sensitive missile-relevant transfers based on 

10 the MTCR Annex, and any amendments thereto. 

11 (3) MTCR ADHERENT.—The term ‘‘MTCR ad12 herent’’ means a country that participates in the 

13 MTCR or that, pursuant to an international under14 standing to which the United States is a party, con15 trols MTCR equipment or technology in accordance 

16 with the criteria and standards set forth in the 

17 MTCR. 

18 (4) MTCR ANNEX.—The term ‘‘MTCR Annex’’ 

19 means the Guidelines and Equipment and Tech20 nology Annex of the MTCR, and any amendments 

21 thereto. 

22 (5) MISSILE EQUIPMENT OR TECHNOLOGY; 

23 MTCR EQUIPMENT OR TECHNOLOGY.—The terms 

24 ‘‘missile equipment or technology’’ and ‘‘MTCR 
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1 equipment or technology’’ mean those items listed in 

2 category I or category II of the MTCR Annex. 

3 (6) FOREIGN PERSON.—The term ‘‘foreign per4 son’’ means any person other than a United States 

5 person. 

6 (7) PERSON.—

7 (A) IN GENERAL.—The term ‘‘person’’ 

8 means a natural person as well as a corpora9 tion, business association, partnership, society, 

10 trust, any other nongovernmental entity, orga11 nization, or group, and any governmental entity

12 operating as a business enterprise, and any suc13 cessor of any such entity. 

14 (B) IDENTIFICATION IN CERTAIN CASES.—

15 In the case of countries where it may be impos16 sible to identify a specific governmental entity 

17 referred to in subparagraph (A), the term ‘‘per18 son’’ means—

19 (i) all activities of that government re20 lating to the development or production of 

21 any missile equipment or technology; and 

22 (ii) all activities of that government 

23 affecting the development or production of 

24 aircraft, electronics, and space systems or 

25 equipment. 
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1 (8) OTHERWISE ENGAGED IN THE TRADE OF.—

2 The term ‘‘otherwise engaged in the trade of’’ 

3 means, with respect to a particular export or trans4 fer, to be a freight forwarder or designated export5 ing agent, or a consignee or end user of the item to 

6 be exported or transferred. 

7 SEC. 505. CHEMICAL AND BIOLOGICAL WEAPONS PRO8 LIFERATION SANCTIONS. 

9 (a) IMPOSITION OF SANCTIONS.—

10 (1) DETERMINATION BY THE PRESIDENT.—Ex11 cept as provided in subsection (b)(2), the President 

12 shall impose both of the sanctions described in sub13 section (c) if the President determines that a foreign 

14 person, on or after the date of enactment of this sec15 tion, has knowingly and materially contributed—

16 (A) through the export from the United 

17 States of any item that is subject to the juris18 diction of the United States under this Act, or 

19 (B) through the export from any other 

20 country of any item that would be, if it were a 

21 United States item, subject to the jurisdiction 

22 of the United States under this Act, 

23 to the efforts by any foreign country, project, or en24 tity described in paragraph (2) to use, develop, 
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1 produce, stockpile, or otherwise acquire chemical or 

2 biological weapons. 

3 (2) COUNTRIES, PROJECTS, OR ENTITIES RE4 CEIVING ASSISTANCE.—Paragraph (1) applies in the 

5 case of—

6 (A) any foreign country that the President 

7 determines has, at any time after the date of 

8 enactment of this Act—

9 (i) used chemical or biological weap10 ons in violation of international law; 

11 (ii) used lethal chemical or biological 

12 weapons against its own nationals; or 

13 (iii) made substantial preparations to 

14 engage in the activities described in clause 

15 (i) or (ii); 

16 (B) any foreign country whose government 

17 is determined for purposes of section 310 to be 

18 a government that has repeatedly provided sup19 port for acts of international terrorism; or 

20 (C) any other foreign country, project, or 

21 entity designated by the President for purposes 

22 of this section. 

23 (3) PERSONS AGAINST WHICH SANCTIONS ARE

24 TO BE IMPOSED.—Sanctions shall be imposed pursu25 ant to paragraph (1) on—
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1 (A) the foreign person with respect to 

2 which the President makes the determination 

3 described in that paragraph; 

4 (B) any successor entity to that foreign 

5 person; 

6 (C) any foreign person that is a parent or 

7 subsidiary of that foreign person if that parent 

8 or subsidiary knowingly assisted in the activities 

9 which were the basis of that determination; and 

10 (D) any foreign person that is an affiliate 

11 of that foreign person if that affiliate knowingly 

12 assisted in the activities which were the basis of 

13 that determination and if that affiliate is con14 trolled in fact by that foreign person. 

15 (b) CONSULTATIONS WITH AND ACTIONS BY FOR16 EIGN GOVERNMENT OF JURISDICTION.—

17 (1) CONSULTATIONS.—If the President makes 

18 the determinations described in subsection (a)(1) 

19 with respect to a foreign person, Congress urges the 

20 President to initiate consultations immediately with 

21 the government with primary jurisdiction over that 

22 foreign person with respect to the imposition of 

23 sanctions pursuant to this section. 

24 (2) ACTIONS BY GOVERNMENT OF JURISDIC25 TION.—In order to pursue such consultations with 
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1 that government, the President may delay imposition 

2 of sanctions pursuant to this section for a period of 

3 up to 90 days. Following the consultations, the 

4 President shall impose sanctions unless the Presi5 dent determines and certifies to Congress that gov6 ernment has taken specific and effective actions, in7 cluding appropriate penalties, to terminate the in8 volvement of the foreign person in the activities de9 scribed in subsection (a)(1). The President may 

10 delay imposition of sanctions for an additional pe11 riod of up to 90 days if the President determines 

12 and certifies to Congress that government is in the 

13 process of taking the actions described in the pre14 ceding sentence. 

15 (3) REPORT TO CONGRESS.—The President 

16 shall report to Congress, not later than 90 days 

17 after making a determination under subsection 

18 (a)(1), on the status of consultations with the appro19 priate government under this subsection, and the 

20 basis for any determination under paragraph (2) of 

21 this subsection that such government has taken spe22 cific corrective actions. 

23 (c) SANCTIONS.—

24 (1) DESCRIPTION OF SANCTIONS.—The sanc25 tions to be imposed pursuant to subsection (a)(1) 
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1 are, except as provided in paragraph (2) of this sub2 section, the following: 

3 (A) PROCUREMENT SANCTION.—The 

4 United States Government shall not procure, or 

5 enter into any contract for the procurement of, 

6 any goods or services from any person described 

7 in subsection (a)(3). 

8 (B) IMPORT SANCTIONS.—The importation 

9 into the United States of products produced by 

10 any person described in subsection (a)(3) shall 

11 be prohibited.

12 (2) EXCEPTIONS.—The President shall not be 

13 required to apply or maintain sanctions under this 

14 section—

15 (A) in the case of procurement of defense 

16 articles or defense services—

17 (i) under existing contracts or sub18 contracts, including the exercise of options

19 for production quantities to satisfy United 

20 States operational military requirements; 

21 (ii) if the President determines that 

22 the person or other entity to which the 

23 sanctions would otherwise be applied is a 

24 sole source supplier of the defense articles 

25 or services, that the defense articles or 
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1 services are essential, and that alternative 

2 sources are not readily or reasonably avail3 able; or 

4 (iii) if the President determines that 

5 such articles or services are essential to the 

6 national security under defense coproduc7 tion agreements; 

8 (B) to products or services provided under 

9 contracts entered into before the date on which 

10 the President publishes his intention to impose 

11 sanctions; 

12 (C) to—

13 (i) spare parts, 

14 (ii) component parts, but not finished 

15 products, essential to United States prod16 ucts or production, or 

17 (iii) routine servicing and mainte18 nance of products, to the extent that alter19 native sources are not readily or reason20 ably available; 

21 (D) to information and technology essen22 tial to United States products or production; or 

23 (E) to medical or other humanitarian 

24 items.
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1 (d) TERMINATION OF SANCTIONS.—The sanctions 

2 imposed pursuant to this section shall apply for a period 

3 of at least 12 months following the imposition of sanctions 

4 and shall cease to apply thereafter only if the President 

5 determines and certifies to the Congress that reliable in6 formation indicates that the foreign person with respect 

7 to which the determination was made under subsection 

8 (a)(1) has ceased to aid or abet any foreign government, 

9 project, or entity in its efforts to acquire chemical or bio10 logical weapons capability as described in that subsection. 

11 (e) WAIVER.—

12 (1) CRITERION FOR WAIVER.—The President 

13 may waive the application of any sanction imposed 

14 on any person pursuant to this section, after the end 

15 of the 12-month period beginning on the date on 

16 which that sanction was imposed on that person, if 

17 the President determines and certifies to Congress 

18 that such waiver is important to the national secu19 rity interests of the United States. 

20 (2) NOTIFICATION OF AND REPORT TO CON21 GRESS.—If the President decides to exercise the 

22 waiver authority provided in paragraph (1), the 

23 President shall so notify the Congress not less than 

24 20 days before the waiver takes effect. Such notifica25 tion shall include a report fully articulating the ra-
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1 tionale and circumstances which led the President to 

2 exercise the waiver authority. 

3 (f) DEFINITION OF FOREIGN PERSON.—For the pur4 poses of this section, the term ‘‘foreign person’’ means—

5 (1) an individual who is not a citizen of the 

6 United States or an alien admitted for permanent 

7 residence to the United States; or 

8 (2) a corporation, partnership, or other entity 

9 which is created or organized under the laws of a 

10 foreign country or which has its principal place of 

11 business outside the United States. 

12 SEC. 506. ENFORCEMENT. 

13 (a) GENERAL AUTHORITY AND DESIGNATION.—

14 (1) POLICY GUIDANCE ON ENFORCEMENT.—

15 The Secretary, in consultation with the Secretary of 

16 the Treasury and the heads of other departments 

17 and agencies that the Secretary considers appro18 priate, shall be responsible for providing policy guid19 ance on the enforcement of this Act. 

20 (2) GENERAL AUTHORITIES.—

21 (A) EXERCISE OF AUTHORITY.—To the ex22 tent necessary or appropriate to the enforce23 ment of this Act, officers and employees of the 

24 Department designated by the Secretary, offi25 cers and employees of the United States Cus-
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1 toms Service designated by the Commissioner of 

2 Customs, and officers and employees of any 

3 other department or agency designated by the 

4 head of a department or agency exercising func5 tions under this Act, may exercise the enforce6 ment authority under paragraph (3). 

7 (B) CUSTOMS SERVICE.—In carrying out 

8 enforcement authority under paragraph (3), the 

9 Commissioner of Customs and employees of the 

10 United States Customs Service designated by 

11 the Commissioner may make investigations 

12 within or outside the United States and at

13 ports of entry into or exit from the United 

14 States where officers of the United States Cus15 toms Service are authorized by law to carry out 

16 law enforcement responsibilities. Subject to 

17 paragraph (3), the United States Customs 

18 Service is authorized, in the enforcement of this 

19 Act, to search, detain (after search), and seize 

20 items at the ports of entry into or exit from 

21 the United States where officers of the United 

22 States Customs Service are authorized by law 

23 to conduct searches, detentions, and seizures, 

24 and at the places outside the United States 

25 where the United States Customs Service, pur-
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1 suant to agreement or other arrangement with 

2 other countries, is authorized to perform en3 forcement activities. 

4 (C) OTHER EMPLOYEES.—In carrying out 

5 enforcement authority under paragraph (3), the 

6 Secretary and officers and employees of the De7 partment designated by the Secretary may 

8 make investigations within the United States, 

9 and may conduct, outside the United States, 

10 pre-license and post-shipment verifications of 

11 controlled items and investigations in the en12 forcement of section 502. The Secretary and of13 ficers and employees of the Department des14 ignated by the Secretary are authorized to 

15 search, detain (after search), and seize items at 

16 places within the United States other than 

17 ports referred to in subparagraph (B). The 

18 search, detention (after search), or seizure of 

19 items at the ports and places referred to in sub20 paragraph (B) may be conducted by officers

21 and employees of the Department only with the 

22 concurrence of the Commissioner of Customs or 

23 a person designated by the Commissioner. 

24 (D) AGREEMENTS AND ARRANGEMENTS.—

25 The Secretary and the Commissioner of Cus-
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1 toms may enter into agreements and arrange2 ments for the enforcement of this Act, including 

3 foreign investigations and information ex4 change. 

5 (3) SPECIFIC AUTHORITIES.—

6 (A) ACTIONS BY ANY DESIGNATED PER7 SONNEL.—Any officer or employee designated 

8 under paragraph (2), in carrying out the en9 forcement authority under this Act, may do the 

10 following: 

11 (i) Make investigations of, obtain in12 formation from, make inspection of any 

13 books, records, or reports (including any 

14 writings required to be kept by the Sec15 retary), premises, or property of, and take 

16 the sworn testimony of, any person. 

17 (ii) Administer oaths or affirmations, 

18 and by subpoena require any person to ap19 pear and testify or to appear and produce 

20 books, records, and other writings, or both. 

21 In the case of contumacy by, or refusal to 

22 obey a subpoena issued to, any such per23 son, a district court of the United States, 

24 on request of the Attorney General and 

25 after notice to any such person and a hear-
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1 ing, shall have jurisdiction to issue an 

2 order requiring such person to appear and 

3 give testimony or to appear and produce 

4 books, records, and other writings, or both. 

5 Any failure to obey such order of the court 

6 may be punished by such court as a con7 tempt thereof. The attendance of witnesses 

8 and the production of documents provided 

9 for in this clause may be required from 

10 any State, the District of Columbia, or in 

11 any territory of the United States at any 

12 designated place. Witnesses subpoenaed 

13 under this subsection shall be paid the 

14 same fees and mileage allowance as paid 

15 witnesses in the district courts of the 

16 United States. 

17 (B) ACTIONS BY OFFICE OF EXPORT EN18 FORCEMENT AND CUSTOMS SERVICE PER19 SONNEL.—

20 (i) OFFICE OF EXPORT ENFORCE21 MENT AND CUSTOMS SERVICE PER22 SONNEL.—Any officer or employee of the 

23 Office of Export Enforcement of the De24 partment of Commerce (in this Act re25 ferred to as ‘‘OEE’’) who is designated by
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1 the Secretary under paragraph (2), and 

2 any officer or employee of the United 

3 States Customs Service who is designated 

4 by the Commissioner of Customs under 

5 paragraph (2), may do the following in 

6 carrying out the enforcement authority 

7 under this Act: 

8 (I) Execute any warrant or other 

9 process issued by a court or officer of 

10 competent jurisdiction with respect to 

11 the enforcement of this Act. 

12 (II) Make arrests without war13 rant for any violation of this Act com14 mitted in his or her presence or view, 

15 or if the officer or employee has prob16 able cause to believe that the person 

17 to be arrested has committed, is com18 mitting, or is about to commit such a 

19 violation. 

20 (III) Carry firearms. 

21 (ii) OEE PERSONNEL.—Any officer or 

22 employee of the OEE designated by the 

23 Secretary under paragraph (2) shall exer24 cise the authority set forth in clause (i) 
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1 pursuant to guidelines approved by the At2 torney General. 

3 (C) OTHER ACTIONS BY CUSTOMS SERVICE

4 PERSONNEL.—Any officer or employee of the 

5 United States Customs Service designated by 

6 the Commissioner of Customs under paragraph 

7 (2) may do the following in carrying out the en8 forcement authority under this Act: 

9 (i) Stop, search, and examine a vehi10 cle, vessel, aircraft, or person on which or 

11 whom the officer or employee has reason12 able cause to suspect there is any item

13 that has been, is being, or is about to be 

14 exported from or transited through the 

15 United States in violation of this Act. 

16 (ii) Detain and search any package or 

17 container in which the officer or employee 

18 has reasonable cause to suspect there is 

19 any item that has been, is being, or is 

20 about to be exported from or transited

21 through the United States in violation of 

22 this Act. 

23 (iii) Detain (after search) or seize any 

24 item, for purposes of securing for trial or 

25 forfeiture to the United States, on or 
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1 about such vehicle, vessel, aircraft, or per2 son or in such package or container, if the 

3 officer or employee has probable cause to 

4 believe the item has been, is being, or is 

5 about to be exported from or transited 

6 through the United States in violation of 

7 this Act. 

8 (4) OTHER AUTHORITIES NOT AFFECTED.—The 

9 authorities conferred by this section are in addition 

10 to any authorities conferred under other laws. 

11 (b) FORFEITURE.—

12 (1) IN GENERAL.—Any tangible items lawfully 

13 seized under subsection (a) by designated officers or 

14 employees shall be subject to forfeiture to the United 

15 States. 

16 (2) APPLICABLE LAWS.—Those provisions of 

17 law relating to—

18 (A) the seizure, summary and judicial for19 feiture, and condemnation of property for viola20 tions of the customs laws; 

21 (B) the disposition of such property or the 

22 proceeds from the sale thereof; 

23 (C) the remission or mitigation of such for24 feitures; and 

25 (D) the compromise of claims, 
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1 shall apply to seizures and forfeitures incurred, or 

2 alleged to have been incurred, under the provisions 

3 of this subsection, insofar as applicable and not in4 consistent with this Act. 

5 (3) FORFEITURES UNDER CUSTOMS LAWS.—

6 Duties that are imposed upon a customs officer or 

7 any other person with respect to the seizure and for8 feiture of property under the customs laws may be 

9 performed with respect to seizures and forfeitures of 

10 property under this subsection by the Secretary or 

11 any officer or employee of the Department that may 

12 be authorized or designated for that purpose by the 

13 Secretary (or by the Commissioner of Customs or 

14 any officer or employee of the United States Cus15 toms Service designated by the Commissioner), or, 

16 upon the request of the Secretary, by any other 

17 agency that has authority to manage and dispose of 

18 seized property. 

19 (c) REFERRAL OF CASES.—All cases involving viola20 tions of this Act shall be referred to the Secretary for pur21 poses of determining civil penalties and administrative 

22 sanctions under section 503 or to the Attorney General 

23 for criminal action in accordance with this Act or to both 

24 the Secretary and the Attorney General. 

25 (d) UNDERCOVER INVESTIGATION OPERATIONS.—
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1 (1) USE OF FUNDS.—With respect to any un2 dercover investigative operation conducted by the 

3 OEE that is necessary for the detection and pros4 ecution of violations of this Act—

5 (A) funds made available for export en6 forcement under this Act may be used to pur7 chase property, buildings, and other facilities, 

8 and to lease equipment, conveyances, and space 

9 within the United States, without regard to sec10 tions 1341 and 3324 of title 31, United States 

11 Code, the third undesignated paragraph under 

12 the heading of ‘‘miscellaneous’’ of the Act of 

13 March 3, 1877, (40 U.S.C. 34), sections 

14 3732(a) and 3741 of the Revised Statutes of 

15 the United States (41 U.S.C. 11(a) and 22), 

16 subsections (a) and (c) of section 304 of the 

17 Federal Property and Administrative Services 

18 Act of 1949 (41 U.S.C. 254 (a) and (c)), and 

19 section 305 of the Federal Property and Ad20 ministrative Services Act of 1949 (41 U.S.C. 

21 255); 

22 (B) funds made available for export en23 forcement under this Act may be used to estab24 lish or to acquire proprietary corporations or 

25 business entities as part of an undercover oper-
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1 ation, and to operate such corporations or busi2 ness entities on a commercial basis, without re3 gard to sections 1341, 3324, and 9102 of title 

4 31, United States Code; 

5 (C) funds made available for export en6 forcement under this Act and the proceeds from 

7 undercover operations may be deposited in 

8 banks or other financial institutions without re9 gard to the provisions of section 648 of title 18, 

10 United States Code, and section 3302 of title 

11 31, United States Code; and

12 (D) the proceeds from undercover oper13 ations may be used to offset necessary and rea14 sonable expenses incurred in such operations 

15 without regard to the provisions of section 3302 

16 of title 31, United States Code, 

17 if the Director of OEE (or an officer or employee 

18 designated by the Director) certifies, in writing, that 

19 the action authorized by subparagraph (A), (B), (C), 

20 or (D) for which the funds would be used is nec21 essary for the conduct of the undercover operation. 

22 (2) DISPOSITION OF BUSINESS ENTITIES.—If a 

23 corporation or business entity established or ac24 quired as part of an undercover operation has a net 

25 value of more than $250,000 and is to be liquidated,
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1 sold, or otherwise disposed of, the Director of OEE 

2 shall report the circumstances to the Secretary and 

3 the Comptroller General of the United States as 

4 much in advance of such disposition as the Director 

5 of the OEE (or the Director’s designee) determines 

6 is practicable. The proceeds of the liquidation, sale, 

7 or other disposition, after obligations incurred by the 

8 corporation or business enterprise are met, shall be 

9 deposited in the Treasury of the United States as 

10 miscellaneous receipts. Any property or equipment 

11 purchased pursuant to paragraph (1) may be re12 tained for subsequent use in undercover operations 

13 under this section. When such property or equip14 ment is no longer needed, it shall be considered sur15 plus and disposed of as surplus government prop16 erty. 

17 (3) DEPOSIT OF PROCEEDS.—As soon as the 

18 proceeds from an OEE undercover investigative op19 eration with respect to which an action is authorized 

20 and carried out under this subsection are no longer 

21 needed for the conduct of such operation, the pro22 ceeds or the balance of the proceeds remaining at 

23 the time shall be deposited into the Treasury of the 

24 United States as miscellaneous receipts. 

25 (4) AUDIT AND REPORT.—
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1 (A) AUDIT.—The Director of OEE shall 

2 conduct a detailed financial audit of each closed 

3 OEE undercover investigative operation and 

4 shall submit the results of the audit in writing 

5 to the Secretary. Not later than 180 days after 

6 an undercover operation is closed, the Secretary 

7 shall submit to Congress a report on the results 

8 of the audit. 

9 (B) REPORT.—The Secretary shall submit 

10 annually to Congress a report, which may be in11 cluded in the annual report under section 701, 

12 specifying the following information: 

13 (i) The number of undercover inves14 tigative operations pending as of the end of 

15 the period for which such report is sub16 mitted. 

17 (ii) The number of undercover inves18 tigative operations commenced in the 1-

19 year period preceding the period for which 

20 such report is submitted. 

21 (iii) The number of undercover inves22 tigative operations closed in the 1-year pe23 riod preceding the period for which such 

24 report is submitted and, with respect to

25 each such closed undercover operation, the 
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1 results obtained and any civil claims made 

2 with respect to the operation. 

3 (5) DEFINITIONS.—For purposes of paragraph 

4 (4)—

5 (A) the term ‘‘closed’’, with respect to an 

6 undercover investigative operation, refers to the 

7 earliest point in time at which all criminal pro8 ceedings (other than appeals) pursuant to the 

9 investigative operation are concluded, or covert 

10 activities pursuant to such operation are con11 cluded, whichever occurs later; and 

12 (B) the terms ‘‘undercover investigative 

13 operation’’ and ‘‘undercover operation’’ mean 

14 any undercover investigative operation con15 ducted by the OEE—

16 (i) in which the gross receipts (exclud17 ing interest earned) exceed $25,000, or ex18 penditures (other than expenditures for 

19 salaries of employees) exceed $75,000, and 

20 (ii) which is exempt from section 3302 

21 or 9102 of title 31, United States Code, 

22 except that clauses (i) and (ii) shall not 

23 apply with respect to the report to Con24 gress required by paragraph (4)(B). 

25 (e) WIRETAPS.—
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1 (1) AUTHORITY.—Interceptions of communica2 tions in accordance with section 2516 of title 18, 

3 United States Code, are authorized to further the 

4 enforcement of this Act. 

5 (2) CONFORMING AMENDMENT.—Section 

6 2516(1) of title 18, United States Code, is amended 

7 by adding at the end the following: 

8 ‘‘(q)(i) any violation of, or conspiracy to 

9 violate, the Export Administration Act of 2003 

10 or the Export Administration Act of 1979.’’. 

11 (f) POST-SHIPMENT VERIFICATION.—The Secretary 

12 shall target post-shipment verifications to exports involv13 ing the greatest risk to national security. 

14 (g) REFUSAL TO ALLOW POST-SHIPMENT

15 VERIFICATION.—

16 (1) IN GENERAL.—If an end-user refuses to 

17 allow post-shipment verification of a controlled item, 

18 the Secretary shall deny a license for the export of 

19 any controlled item to such end-user until such post20 shipment verification occurs. 

21 (2) RELATED PERSONS.—The Secretary may 

22 exercise the authority under paragraph (1) with re23 spect to any person related through affiliation, own24 ership, control, or position of responsibility, to any 
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1 end-user refusing to allow post-shipment verification 

2 of a controlled item. 

3 (3) REFUSAL BY COUNTRY.—If the country in 

4 which the end-user is located refuses to allow post5 shipment verification of a controlled item, the Sec6 retary may deny a license for the export of that item 

7 or any substantially identical or directly competitive

8 item or class of items to all end-users in that coun9 try until such post-shipment verification is allowed. 

10 (h) FREIGHT FORWARDERS BEST PRACTICES PRO11 GRAM AUTHORIZATION.—There is authorized to be appro12 priated for the Department of Commerce $3,500,000 and 

13 such sums as may be necessary to hire 20 additional em14 ployees to assist United States freight forwarders and 

15 other interested parties in developing and implementing, 

16 on a voluntary basis, a ‘‘best practices’’ program to ensure 

17 that exports of controlled items are undertaken in compli18 ance with this Act. 

19 (i) END-USE VERIFICATION AUTHORIZATION.—

20 (1) IN GENERAL.—There is authorized to be 

21 appropriated for the Department of Commerce 

22 $4,500,000 and such sums as may be necessary to 

23 hire 10 additional overseas investigators to be posted 

24 in the People’s Republic of China, the Russian Fed25 eration, the Hong Kong Special Administrative Re-
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1 gion, the Republic of India, Singapore, Egypt, and 

2 Taiwan, or any other place the Secretary deems ap3 propriate, for the purpose of verifying the end use 

4 of high-risk, dual-use technology. 

5 (2) REPORT.—Not later than 2 years after the 

6 date of enactment of this Act and annually there7 after, the Department shall, in its annual report to 

8 Congress on export controls, include a report on the 

9 effectiveness of the end-use verification activities au10 thorized under subsection (a). The report shall in11 clude the following information: 

12 (A) The activities of the overseas investiga13 tors of the Department. 

14 (B) The types of goods and technologies 

15 that were subject to end-use verification. 

16 (C) The ability of the Department’s inves17 tigators to detect the illegal transfer of high 

18 risk, dual-use goods and technologies. 

19 (3) ENHANCEMENTS.—In addition to the au20 thorization provided in paragraph (1), there is au21 thorized to be appropriated for the Department of 

22 Commerce $5,000,000 to enhance its program for 

23 verifying the end use of items subject to controls 

24 under this Act.
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1 (j) ENHANCED COOPERATION WITH UNITED STATES

2 CUSTOMS SERVICE.—Consistent with the purposes of this 

3 Act, the Secretary is authorized to undertake, in coopera4 tion with the United States Customs Service, such meas5 ures as may be necessary or required to enhance the abil6 ity of the United States to detect unlawful exports and 

7 to enforce violations of this Act. 

8 (k) REFERENCE TO ENFORCEMENT.—For purposes 

9 of this section, a reference to the enforcement of this Act 

10 or to a violation of this Act includes a reference to the 

11 enforcement or a violation of any regulation, license, or 

12 order issued under this Act. 

13 (l) AUTHORIZATION FOR EXPORT LICENSING AND

14 ENFORCEMENT COMPUTER SYSTEM.—There is author15 ized to be appropriated for the Department $5,000,000 

16 and such other sums as may be necessary for planning, 

17 design, and procurement of a computer system to replace 

18 the Department’s primary export licensing and computer 

19 enforcement system. 

20 (m) AUTHORIZATION FOR BUREAU OF EXPORT AD21 MINISTRATION.—The Secretary may authorize, without 

22 fiscal year limitation, the expenditure of funds transferred 

23 to, paid to, received by, or made available to the Bureau 

24 of Export Administration as a reimbursement in accord25 ance with section 9703 of title 31, United States Code 
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1 (as added by Public Law 102–393). The Secretary may 

2 also authorize, without fiscal year limitation, the expendi3 ture of funds transferred to, paid to, received by, or made 

4 available to the Bureau of Export Administration as a re5 imbursement from the Department of Justice Assets For6 feiture Fund in accordance with section 524 of title 28, 

7 United States Code. Such funds shall be deposited in an 

8 account and shall remain available until expended. 

9 (n) AMENDMENTS TO TITLE 31.—

10 (1) Section 9703(a) of title 31, United States 

11 Code (as added by Public Law 102–393) is amended 

12 by striking ‘‘or the United States Coast Guard’’ and 

13 inserting ‘‘, the United States Coast Guard, or the 

14 Bureau of Export Administration of the Department 

15 of Commerce’’. 

16 (2) Section 9703(a)(2)(B)(i) of title 31, United 

17 States Code is amended (as added by Public Law 

18 102–393)— 

19 (A) by striking ‘‘or’’ at the end of sub20 clause (I); 

21 (B) by inserting ‘‘or’’ at the end of sub22 clause (II); and 

23 (C) by inserting at the end, the following 

24 new subclause: 
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1 ‘‘(III) a violation of the Export 

2 Administration Act of 1979, the Ex3 port Administration Act of 2003, or 

4 any regulation, license, or order issued 

5 under those Acts;’’. 

6 (3) Section 9703(p)(1) of title 31, United 

7 States Code (as added by Public Law 102–393) is 

8 amended by adding at the end the following: ‘‘In ad9 dition, for purposes of this section, the Bureau of 

10 Export Administration of the Department of Com11 merce shall be considered to be a Department of the 

12 Treasury law enforcement organization.’’. 

13 (o) AUTHORIZATION FOR LICENSE REVIEW OFFI14 CERS.—

15 (1) IN GENERAL.—There is authorized to be 

16 appropriated to the Department of Commerce 

17 $2,000,000 to hire additional license review officers. 

18 (2) TRAINING.—There is authorized to be ap19 propriated to the Department of Commerce 

20 $2,000,000 to conduct professional training of li21 cense review officers, auditors, and investigators 

22 conducting post-shipment verification checks. These 

23 funds shall be used to—
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1 (A) train and certify, through a formal 

2 program, new employees entering these posi3 tions for the first time; and 

4 (B) the ongoing professional training of ex5 perienced employees on an as needed basis. 

6 (p) AUTHORIZATION.—

7 (1) IN GENERAL.—There are authorized to be 

8 appropriated to the Department of Commerce to 

9 carry out the purposes of this Act—

10 (A) $72,000,000 for the fiscal year 2002, 

11 of which no less than $27,701,000 shall be used 

12 for compliance and enforcement activities; 

13 (B) $73,000,000 for the fiscal year 2003, 

14 of which no less than $28,312,000 shall be used 

15 for compliance and enforcement activities; 

16 (C) $74,000,000 for the fiscal year 2004, 

17 of which no less than $28,939,000 shall be used 

18 for compliance and enforcement activities; 

19 (D) $76,000,000 for the fiscal year 2005, 

20 of which no less than $29,582,000 shall be used 

21 for compliance and enforcement activities; and 

22 (E) such additional amounts, for each such 

23 fiscal year, as may be necessary for increases in 

24 salary, pay, retirement, other employee benefits 
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1 authorized by law, and other nondiscretionary 

2 costs. 

3 (2) LIMITATION.—The authority granted by 

4 this Act shall terminate on September 30, 2004, un5 less the President carries out the following duties: 

6 (A) Provides to Congress a detailed report 

7 on—

8 (i) the implementation and operation 

9 of this Act; and 

10 (ii) the operation of United States ex11 port controls in general. 

12 (B)(i) Provides to Congress legislative re13 form proposals in connection with the report 

14 described in subparagraph (A); or 

15 (ii) certifies to Congress that no legislative 

16 reforms are necessary in connection with such 

17 report. 

18 SEC. 507. ADMINISTRATIVE PROCEDURE. 

19 (a) EXEMPTIONS FROM ADMINISTRATIVE PROCE20 DURE.—Except as provided in this section, the functions 

21 exercised under this Act are excluded from the operation 

22 of sections 551, 553 through 559, and 701 through 706 

23 of title 5, United States Code. 

24 (b) PROCEDURES RELATING TO CIVIL PENALTIES

25 AND SANCTIONS.—
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1 (1) ADMINISTRATIVE PROCEDURES.—Any ad2 ministrative sanction imposed under section 503 

3 may be imposed only after notice and opportunity 

4 for an agency hearing on the record in accordance 

5 with sections 554 through 557 of title 5, United 

6 States Code. The imposition of any such administra7 tive sanction shall be subject to judicial review in ac8 cordance with sections 701 through 706 of title 5, 

9 United States Code, except that the review shall be 

10 initiated in the United States Court of Appeals for 

11 the District of Columbia Circuit, which shall have 

12 jurisdiction of the review. 

13 (2) AVAILABILITY OF CHARGING LETTER.—Any 

14 charging letter or other document initiating adminis15 trative proceedings for the imposition of sanctions 

16 for violations of the regulations issued under section 

17 502 shall be made available for public inspection and 

18 copying. 

19 (c) COLLECTION.—If any person fails to pay a civil 

20 penalty imposed under section 503, the Secretary may ask 

21 the Attorney General to commence a civil action in an ap22 propriate district court of the United States to recover the 

23 amount imposed (plus interest at currently prevailing 

24 rates from the date of the final order). No such action 

25 may be commenced more than 5 years after the order im-
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1 posing the civil penalty becomes final. In such an action, 

2 the validity, amount, and appropriateness of such penalty 

3 shall not be subject to review. 

4 (d) IMPOSITION OF TEMPORARY DENIAL ORDERS.—

5 (1) GROUNDS FOR IMPOSITION.—In any case in 

6 which there is reasonable cause to believe that a per7 son is engaged in or is about to engage in any act 

8 or practice which constitutes or would constitute a 

9 violation of this Act, or any regulation, order, or li10 cense issued under this Act, including any diversion 

11 of goods or technology from an authorized end use 

12 or end user, and in any case in which a criminal in13 dictment has been returned against a person alleging 

14 a violation of this Act or any of the statutes listed 

15 in section 503, the Secretary may, without a hear16 ing, issue an order temporarily denying that person’s 

17 United States export privileges (hereafter in this 

18 subsection referred to as a ‘‘temporary denial 

19 order’’). A temporary denial order shall be effective 

20 for such period (not in excess of 180 days) as the 

21 Secretary specifies in the order, but may be renewed 

22 by the Secretary, following notice and an oppor23 tunity for a hearing, for additional periods of not 

24 more than 180 days each. 
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1 (2) ADMINISTRATIVE APPEALS.—The person or 

2 persons subject to the issuance or renewal of a tem3 porary denial order may appeal the issuance or re4 newal of the temporary denial order, supported by 

5 briefs and other material, to an administrative law 

6 judge who shall, within 15 working days after the 

7 appeal is filed, issue a decision affirming, modifying, 

8 or vacating the temporary denial order. The tem9 porary denial order shall be affirmed if it is shown 

10 that—

11 (A) there is reasonable cause to believe 

12 that the person subject to the order is engaged 

13 in or is about to engage in any act or practice 

14 that constitutes or would constitute a violation 

15 of this Act, or any regulation, order, or license 

16 issued under this Act; or 

17 (B) a criminal indictment has been re18 turned against the person subject to the order 

19 alleging a violation of this Act or any of the 

20 statutes listed in section 503. 

21 The decision of the administrative law judge shall be 

22 final unless, within 10 working days after the date 

23 of the administrative law judge’s decision, an appeal 

24 is filed with the Secretary. On appeal, the Secretary 

25 shall either affirm, modify, reverse, or vacate the de-
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1 cision of the administrative law judge by written 

2 order within 10 working days after receiving the ap3 peal. The written order of the Secretary shall be 

4 final and is not subject to judicial review, except as 

5 provided in paragraph (3). The materials submitted 

6 to the administrative law judge and the Secretary 

7 shall constitute the administrative record for pur8 poses of review by the court. 

9 (3) COURT APPEALS.—An order of the Sec10 retary affirming, in whole or in part, the issuance or

11 renewal of a temporary denial order may, within 15 

12 days after the order is issued, be appealed by a per13 son subject to the order to the United States Court 

14 of Appeals for the District of Columbia Circuit, 

15 which shall have jurisdiction of the appeal. The 

16 court may review only those issues necessary to de17 termine whether the issuance of the temporary de18 nial order was based on reasonable cause to believe 

19 that the person subject to the order was engaged 

20 in or was about to engage in any act or practice 

21 that constitutes or would constitute a violation of 

22 this title, or any regulation, order, or license issued 

23 under this Act, or whether a criminal indictment has 

24 been returned against the person subject to the 

25 order alleging a violation of this Act or of any of 
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1 the statutes listed in section 503. The court shall 

2 vacate the Secretary’s order if the court finds that 

3 the Secretary’s order is arbitrary, capricious, an 

4 abuse of discretion, or otherwise not in accordance 

5 with law. 

6 (e) LIMITATIONS ON REVIEW OF CLASSIFIED INFOR7 MATION.—Any classified information that is included in 

8 the administrative record that is subject to review pursu9 ant to subsection (b)(1) or (d)(3) may be reviewed by the 

10 court only on an ex parte basis and in camera. 

11 TITLE VI—EXPORT CONTROL 

12 AUTHORITY AND REGULATIONS 

13 SEC. 601. EXPORT CONTROL AUTHORITY AND REGULA14 TIONS. 

15 (a) EXPORT CONTROL AUTHORITY.—

16 (1) IN GENERAL.—Unless otherwise reserved to 

17 the President or a department (other than the De18 partment) or agency of the United States, all power, 

19 authority, and discretion conferred by this Act shall 

20 be exercised by the Secretary. 

21 (2) DELEGATION OF FUNCTIONS OF THE SEC22 RETARY.—The Secretary may delegate any function 

23 under this Act, unless otherwise provided, to the 

24 Under Secretary of Commerce for Export Adminis25 tration or to any other officer of the Department.
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1 (b) UNDER SECRETARY OF COMMERCE; ASSISTANT

2 SECRETARIES.—

3 (1) UNDER SECRETARY OF COMMERCE.—There 

4 shall be within the Department an Under Secretary 

5 of Commerce for Export Administration (in this sec6 tion referred to as the ‘‘Under Secretary’’) who shall 

7 be appointed by the President, by and with the ad8 vice and consent of the Senate. The Under Secretary

9 shall carry out all functions of the Secretary under 

10 this Act and other provisions of law relating to na11 tional security, as the Secretary may delegate. 

12 (2) ADDITIONAL ASSISTANT SECRETARIES.—In 

13 addition to the number of Assistant Secretaries oth14 erwise authorized for the Department of Commerce, 

15 there shall be within the Department of Commerce 

16 the following Assistant Secretaries of Commerce: 

17 (A) An Assistant Secretary for Export Ad18 ministration who shall be appointed by the 

19 President, by and with the advice and consent 

20 of the Senate, and who shall assist the Sec21 retary and the Under Secretary in carrying out 

22 functions relating to export listing and licens23 ing. 

24 (B) An Assistant Secretary for Export En25 forcement who shall be appointed by the Presi-
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1 dent, by and with the advice and consent of the 

2 Senate, and who shall assist the Secretary and 

3 the Under Secretary in carrying out functions 

4 relating to export enforcement. 

5 (c) ISSUANCE OF REGULATIONS.—

6 (1) IN GENERAL.—The President and the Sec7 retary may issue such regulations as are necessary 

8 to carry out this Act. Any such regulations the pur9 pose of which is to carry out title II or title III may 

10 be issued only after the regulations are submitted 

11 for review to such departments or agencies as the 

12 President considers appropriate. The Secretary shall 

13 consult with the appropriate export control advisory 

14 committee appointed under section 105(a) in formu15 lating regulations under this title. The second sen16 tence of this subsection does not require the concur17 rence or approval of any official, department, or 

18 agency to which such regulations are submitted. 

19 (2) AMENDMENTS TO REGULATIONS.—If the 

20 Secretary proposes to amend regulations issued 

21 under this Act, the Secretary shall report to the 

22 Committee on Banking, Housing, and Urban Affairs 

23 of the Senate and the Committee on International 

24 Relations of the House of Representatives on the in25 tent and rationale of such amendments. Such report 
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1 shall evaluate the cost and burden to the United 

2 States exporters of the proposed amendments in re3 lation to any enhancement of licensing objectives. 

4 The Secretary shall consult with the appropriate ex5 port control advisory committees appointed under 

6 section 105(a) in amending regulations issued under 

7 this Act. 

8 SEC. 602. CONFIDENTIALITY OF INFORMATION. 

9 (a) EXEMPTIONS FROM DISCLOSURE.—

10 (1) INFORMATION OBTAINED ON OR BEFORE

11 JUNE 30, 1980.—Except as otherwise provided by the 

12 third sentence of section 502(c)(2) and by section 

13 507(b)(2), information obtained under the Export 

14 Administration Act of 1979, or any predecessor stat15 ute, on or before June 30, 1980, which is deemed 

16 confidential, including Shipper’s Export Declara17 tions, or with respect to which a request for con18 fidential treatment is made by the person furnishing 

19 such information, shall not be subject to disclosure 

20 under section 552 of title 5, United States Code, 

21 and such information shall not be published or dis22 closed, unless the Secretary determines that the 

23 withholding thereof is contrary to the national inter24 est. 
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1 (2) INFORMATION OBTAINED AFTER JUNE 30, 

2 1980.—Except as otherwise provided by the third 

3 sentence of section 502(c)(2) and by section 

4 507(b)(2), information obtained under this Act, 

5 under the Export Administration Act of 1979 after 

6 June 30, 1980, or under the Export Administration 

7 regulations as maintained and amended under the 

8 authority of the International Emergency Economic 

9 Powers Act (50 U.S.C. 1706), may be withheld from 

10 disclosure only to the extent permitted by statute,

11 except that information submitted, obtained, or con12 sidered in connection with an application for an ex13 port license or other export authorization (or record14 keeping or reporting requirement) under the Export 

15 Administration Act of 1979, under this Act, or 

16 under the Export Administration regulations as 

17 maintained and amended under the authority of the 

18 International Emergency Economic Powers Act (50 

19 U.S.C. 1706), including—

20 (A) the export license or other export au21 thorization itself, 

22 (B) classification requests described in sec23 tion 401(h), 

24 (C) information or evidence obtained in the 

25 course of any investigation, 
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1 (D) information obtained or furnished 

2 under title V in connection with any inter3 national agreement, treaty, or other obligation, 

4 and 

5 (E) information obtained in making the 

6 determinations set forth in section 211 of this 

7 Act, 

8 and information obtained in any investigation of an 

9 alleged violation of section 502 of this Act except for 

10 information required to be disclosed by section 

11 502(c)(2) or 507(b)(2) of this Act, shall be withheld 

12 from public disclosure and shall not be subject to 

13 disclosure under section 552 of title 5, United States 

14 Code, unless the release of such information is deter15 mined by the Secretary to be in the national inter16 est. 

17 (b) INFORMATION TO CONGRESS AND GAO.—

18 (1) IN GENERAL.—Nothing in this title shall be 

19 construed as authorizing the withholding of informa20 tion from Congress or from the General Accounting 

21 Office. 

22 (2) AVAILABILITY TO THE CONGRESS.—

23 (A) IN GENERAL.—Any information ob24 tained at any time under this title or under any 

25 predecessor Act regarding the control of ex-
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1 ports, including any report or license applica2 tion required under this title, shall be made 

3 available to any committee or subcommittee of 

4 Congress of appropriate jurisdiction upon the 

5 request of the chairman or ranking minority 

6 member of such committee or subcommittee. 

7 (B) PROHIBITION ON FURTHER DISCLO8 SURE.—No committee, subcommittee, or Mem9 ber of Congress shall disclose any information 

10 obtained under this Act or any predecessor Act

11 regarding the control of exports which is sub12 mitted on a confidential basis to the Congress 

13 under subparagraph (A) unless the full com14 mittee to which the information is made avail15 able determines that the withholding of the in16 formation is contrary to the national interest. 

17 (3) AVAILABILITY TO THE GAO.—

18 (A) IN GENERAL.—Notwithstanding sub19 section (a), information described in paragraph 

20 (2) shall, consistent with the protection of intel21 ligence, counterintelligence, and law enforce22 ment sources, methods, and activities, as deter23 mined by the agency that originally obtained 

24 the information, and consistent with the provi25 sions of section 716 of title 31, United States
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1 Code, be made available only by the agency, 

2 upon request, to the Comptroller General of the 

3 United States or to any officer or employee of 

4 the General Accounting Office authorized by 

5 the Comptroller General to have access to such 

6 information. 

7 (B) PROHIBITION ON FURTHER DISCLO8 SURES.—No officer or employee of the General 

9 Accounting Office shall disclose, except to Con10 gress in accordance with this paragraph, any 

11 such information which is submitted on a con12 fidential basis and from which any individual 

13 can be identified. 

14 (c) INFORMATION EXCHANGE.—Notwithstanding 

15 subsection (a), the Secretary and the Commissioner of 

16 Customs shall exchange licensing and enforcement infor17 mation with each other as necessary to facilitate enforce18 ment efforts and effective license decisions. 

19 (d) PENALTIES FOR DISCLOSURE OF CONFIDENTIAL

20 INFORMATION.—

21 (1) DISCLOSURE PROHIBITED.—No officer or 

22 employee of the United States, or any department or 

23 agency thereof, may publish, divulge, disclose, or 

24 make known in any manner or to any extent not au25 thorized by law any information that—
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1 (A) the officer or employee obtains in the 

2 course of his or her employment or official du3 ties or by reason of any examination or inves4 tigation made by, or report or record made to 

5 or filed with, such department or agency, or of6 ficer or employee thereof; and 

7 (B) is exempt from disclosure under this 

8 section. 

9 (2) CRIMINAL PENALTIES.—Any such officer or 

10 employee who knowingly violates paragraph (1) shall 

11 be fined not more than $50,000, imprisoned not

12 more than 1 year, or both, for each violation of 

13 paragraph (1). Any such officer or employee may 

14 also be removed from office or employment. 

15 (3) CIVIL PENALTIES; ADMINISTRATIVE SANC16 TIONS.—The Secretary may impose a civil penalty of 

17 not more than $5,000 for each violation of para18 graph (1). Any officer or employee who commits 

19 such violation may also be removed from office or 

20 employment for the violation of paragraph (1). Sec21 tions 503 (e), (g), (h), and (i) and 507 (a), (b), and 

22 (c) shall apply to violations described in this para23 graph. 
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1 TITLE VII—MISCELLANEOUS 

2 PROVISIONS 

3 SEC. 701. ANNUAL REPORT. 

4 (a) ANNUAL REPORT.—Not later than February 1 of 

5 each year, the Secretary shall submit to Congress a report 

6 on the administration of this Act during the fiscal year 

7 ending September 30 of the preceding calendar year. All 

8 Federal agencies shall cooperate fully with the Secretary 

9 in providing information for each such report. 

10 (b) REPORT ELEMENTS.—Each such report shall in11 clude in detail—

12 (1) a description of the implementation of the 

13 export control policies established by this Act, in14 cluding any delegations of authority by the President 

15 and any other changes in the exercise of delegated 

16 authority; 

17 (2) a description of the changes to and the 

18 year-end status of country tiering and the Control 

19 List; 

20 (3) a description of the petitions filed and the 

21 determinations made with respect to foreign avail22 ability and mass-market status, the set-asides of for23 eign availability and mass-market status determina24 tions, and negotiations to eliminate foreign avail25 ability; 
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1 (4) a description of any enhanced control im2 posed on an item pursuant to section 201(d); 

3 (5) a description of the regulations issued under 

4 this Act; 

5 (6) a description of organizational and proce6 dural changes undertaken in furtherance of this Act; 

7 (7) a description of the enforcement activities, 

8 violations, and sanctions imposed under this Act; 

9 (8) a statistical summary of all applications and 

10 notifications, including—

11 (A) the number of applications and notifi12 cations pending review at the beginning of the 

13 fiscal year; 

14 (B) the number of notifications returned 

15 and subject to full license procedure; 

16 (C) the number of notifications with no ac17 tion required; 

18 (D) the number of applications that were 

19 approved, denied, or withdrawn, and the num20 ber of applications where final action was 

21 taken; and 

22 (E) the number of applications and notifi23 cations pending review at the end of the fiscal 

24 year; 
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1 (9) summary of export license data by export 

2 identification code and dollar value by country; 

3 (10) an identification of processing time by—

4 (A) overall average, and 

5 (B) top 25 export identification codes; 

6 (11) an assessment of the effectiveness of mul7 tilateral regimes, and a description of negotiations 

8 regarding export controls; 

9 (12) a description of the significant differences 

10 between the export control requirements of the 

11 United States and those of other multilateral control 

12 regime members, and the specific differences be13 tween United States requirements and those of other 

14 significant supplier countries; 

15 (13) an assessment of the costs of export con16 trols; 

17 (14) a description of the progress made toward 

18 achieving the goals established for the Department 

19 dealing with export controls under the Government 

20 Performance Results Act; and 

21 (15) any other reports required by this Act to 

22 be submitted to the Committee on Banking, Hous23 ing, and Urban Affairs of the Senate and the Com24 mittee on International Relations of the House of 

25 Representatives.
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1 (c) FEDERAL REGISTER PUBLICATION REQUIRE2 MENTS.—Whenever information under this Act is required 

3 to be published in the Federal Register, such information 

4 shall, in addition, be posted on the Department of Com5 merce or other appropriate government website. 

6 SEC. 702. TECHNICAL AND CONFORMING AMENDMENTS. 

7 (a) REPEAL.—The Export Administration Act of 

8 1979 (50 U.S.C. App. 2401 et seq.) is repealed. 

9 (b) ENERGY POLICY AND CONSERVATION ACT.—

10 (1) Section 103 of the Energy Policy and Con11 servation Act (42 U.S.C. 6212) is repealed. 

12 (2) Section 251(d) of the Energy Policy and 

13 Conservation Act (42 U.S.C. 6271(d)) is repealed. 

14 (c) ALASKA NATURAL GAS TRANSPORTATION ACT.—

15 Section 12 of the Alaska Natural Gas Transportation Act 

16 of 1976 (15 U.S.C. 719j) is repealed. 

17 (d) MINERAL LEASING ACT.—Section 28(u) of the 

18 Mineral Leasing Act (30 U.S.C. 185(u)) is repealed. 

19 (e) EXPORTS OF ALASKAN NORTH SLOPE OIL.—Sec20 tion 28(s) of the Mineral Leasing Act (30 U.S.C. 185(s)) 

21 is repealed. 

22 (f) DISPOSITION OF CERTAIN NAVAL PETROLEUM

23 RESERVE PRODUCTS.—Section 7430(e) of title 10, United 

24 States Code, is repealed. 
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1 (g) OUTER CONTINENTAL SHELF LANDS ACT.—Sec2 tion 28 of the Outer Continental Shelf Lands Act (43 

3 U.S.C. 1354) is repealed. 

4 (h) ARMS EXPORT CONTROL ACT.—

5 (1) Section 38 of the Arms Export Control Act 

6 (22 U.S.C. 2778) is amended—

7 (A) in subsection (e)—

8 (i) in the first sentence, by striking 

9 ‘‘subsections (c)’’ and all that follows 

10 through ‘‘11(c)(2)(B) of such Act’’ and in11 serting ‘‘subsections (b), (c), (d) and (e) of 

12 section 503 of the Export Administration 

13 Act of 2003, by subsections (a) and (b) of 

14 section 506 of such Act, and by section 

15 602 of such Act, subject to the same terms 

16 and conditions as are applicable to such 

17 powers under that Act, except that section 

18 section 507(b) of that Act’’; and 

19 (ii) in the third sentence, by striking 

20 ‘‘11(c) of the Export Administration Act of 

21 1979’’ and inserting ‘‘503(c) of the Export 

22 Administration Act of 2003’’; and 

23 (B) in subsection (g)(1)(A)(ii), by inserting 

24 ‘‘or section 503 of the Export Administration 

25 Act of 2003’’ after ‘‘1979’’. 
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1 (2) Section 39A(c) of the Arms Export Control 

2 Act (22 U.S.C. 2779a(c)) is amended—

3 (A) by striking ‘‘subsections (c),’’ and all 

4 that follows through ‘‘11(c)(2)(B) of such Act’’ 

5 and inserting ‘‘subsections (c), (d), and (e) of 

6 section 503, section 507(c), and subsections (a) 

7 and (b) of section 506, of the Export Adminis8 tration Act of 2003, subject to the same terms 

9 and conditions as are applicable to such powers 

10 under that Act, except that section 507(b) of 

11 that Act’’; and 

12 (B) by striking ‘‘11(c)’’ and inserting 

13 ‘‘503(c)’’. 

14 (3) Section 40(k) of the Arms Export Control 

15 Act (22 U.S.C. 2780(k)) is amended—

16 (A) by striking ‘‘11(c),’’ and all that fol17 lows through ‘‘11(c)(2)(B) of such Act’’ and in18 serting ‘‘503(b), 503(c), 503(e), 506(a), and 

19 506(b) of the Export Administration Act of 

20 2003 (subject to the same terms and conditions 

21 as are applicable to such powers under that 

22 Act), except that section 507(b) of that Act’’; 

23 and 

24 (B) by striking ‘‘11(c)’’ and inserting 

25 ‘‘503(c)’’. 
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1 (i) OTHER PROVISIONS OF LAW.—

2 (1) Section 5(b)(4) of the Trading with the 

3 Enemy Act (50 U.S.C. App. 5(b)(4)) is amended by 

4 striking ‘‘section 5 of the Export Administration Act 

5 of 1979, or under section 6 of that Act to the extent 

6 that such controls promote the nonproliferation or 

7 antiterrorism policies of the United States’’ and in8 serting ‘‘titles II and III of the Export Administra9 tion Act of 2003’’. 

10 (2) Section 502B(a)(2) of the Foreign Assist11 ance Act of 1961 (22 U.S.C. 2304(a)(2)) is amend12 ed in the second sentence—

13 (A) by striking ‘‘Export Administration 

14 Act of 1979’’ the first place it appears and in15 serting ‘‘Export Administration Act of 2003’’; 

16 and 

17 (B) by striking ‘‘Act of 1979)’’ and insert18 ing ‘‘Act of 2003)’’. 

19 (3) Section 140(a) of the Foreign Relations Au20 thorization Act, Fiscal Years 1988 and 1989 (22 

21 U.S.C. 2656f(a)) is amended—

22 (A) in paragraph (1)(B), by inserting ‘‘or 

23 section 310 of the Export Administration Act of 

24 2003’’ after ‘‘Act of 1979’’; and
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1 (B) in paragraph (2), by inserting ‘‘or 310 

2 of the Export Administration Act of 2003’’ 

3 after ‘‘6(j) of the Export Administration Act of 

4 1979’’. 

5 (4) Section 40(e)(1) of the State Department 

6 Basic Authorities Act of 1956 (22 U.S.C. 

7 2712(e)(1)) is amended by striking ‘‘section 6(j)(1) 

8 of the Export Administration Act of 1979’’ and in9 serting ‘‘section 310 of the Export Administration 

10 Act of 2003’’. 

11 (5) Section 205(d)(4)(B) of the State Depart12 ment Basic Authorities Act of 1956 (22 U.S.C. 

13 305(d)(4)(B)) is amended by striking ‘‘section 6(j) 

14 of the Export Administration Act of 1979’’ and in15 serting ‘‘section 310 of the Export Administration 

16 Act of 2003’’. 

17 (6) Section 110 of the International Security 

18 and Development Cooperation Act of 1980 (22 

19 U.S.C. 2778a) is amended by striking ‘‘Act of 

20 1979’’ and inserting ‘‘Act of 2003’’. 

21 (7) Section 203(b)(3) of the International 

22 Emergency Economic Powers Act (50 U.S.C. 

23 1702(b)(3)) is amended by striking ‘‘section 5 of the 

24 Export Administration Act of 1979, or under section 

25 6 of such Act to the extent that such controls pro-
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1 mote the nonproliferation or antiterrorism policies of 

2 the United States’’ and inserting ‘‘the Export Ad3 ministration Act of 2003’’. 

4 (8) Section 1605(a)(7)(A) of title 28, United 

5 States Code, is amended by striking ‘‘section 6(j) of 

6 the Export Administration Act of 1979 (50 U.S.C. 

7 App. 2405(j))’’ and inserting ‘‘section 310 of the 

8 Export Administration Act of 2003’’. 

9 (9) Section 2332d(a) of title 18, United States 

10 Code, is amended by striking ‘‘section 6(j) of the 

11 Export Administration Act of 1979 (50 U.S.C. App. 

12 2405)’’ and inserting ‘‘section 310 of the Export Ad13 ministration Act of 2003’’. 

14 (10) Section 620H(a)(1) of the Foreign Assist15 ance Act of 1961 (22 U.S.C. 2378(a)(1)) is amend16 ed by striking ‘‘section 6(j) of the Export Adminis17 tration Act of 1979 (50 U.S.C. App. 2405(j))’’ and 

18 inserting ‘‘section 310 of the Export Administration 

19 Act of 2003’’. 

20 (11) Section 1621(a) of the International Fi21 nancial Institutions Act (22 U.S.C. 262p–4q(a)) is 

22 amended by striking ‘‘section 6(j) of the Export Ad23 ministration Act of 1979 (50 U.S.C. App. 2405(j))’’ 

24 and inserting ‘‘section 310 of the Export Adminis25 tration Act of 2003’’. 
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1 (12) Section 1956(c)(7)(D) of title 18, United 

2 States Code, is amended by striking ‘‘section 11 (re3 lating to violations) of the Export Administration of 

4 1979’’ and inserting ‘‘section 503 (relating to pen5 alties) of the Export Administration Act of 2003’’. 

6 (13) Subsection (f) of section 491 and section 

7 499 of the Forest Resources Conservation and 

8 Shortage Relief Act of 1990 (16 U.S.C. 620c(f) and 

9 620j) are repealed. 

10 (14) Section 904(2)(B) of the Trade Sanctions 

11 Reform and Export Enhancement Act of 2000 is 

12 amended by striking ‘‘Export Administration Act of 

13 1979’’ and inserting ‘‘Export Administration Act of 

14 2003’’. 

15 (15) Section 983(i)(2) of title 18, United States 

16 Code (as added by Public Law 106–185), is amend17 ed—

18 (A) by striking the ‘‘or’’ at the end of sub19 paragraph (D); 

20 (B) by striking the period at the end of 

21 subparagraph (E) and inserting ‘‘; or’’; and 

22 (C) by inserting the following new subpara23 graph: 

24 ‘‘(F) the Export Administration Act of 

25 2003.’’.
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1 (j) CIVIL AIRCRAFT EQUIPMENT.—Notwithstanding 

2 any other provision of law, any product that—

3 (1) is standard equipment, certified by the Fed4 eral Aviation Administration, in civil aircraft, and 

5 (2) is an integral part of such aircraft, shall be 

6 subject to export control only under this Act. Such 

7 product shall not be subject to controls under sec8 tion 38(b)(2) of the Arms Export Control Act (22 

9 U.S.C. 2778(b)). 

10 (k) REPEAL OF CERTAIN EXPORT CONTROLS.—Sub11 title B of title XII of division A of the National Defense 

12 Authorization Act for Fiscal Year 1998 (50 U.S.C. App. 

13 2404 note), and the items relating to that subtitle in the 

14 table of contents for that Act, are repealed. 

15 SEC. 703. SAVINGS PROVISIONS. 

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

17 orders, determinations, licenses, or other forms of admin18 istrative action which have been made, issued, conducted, 

19 or allowed to become effective under—

20 (1) the Export Control Act of 1949, the Export 

21 Administration Act of 1969, the Export Administra22 tion Act of 1979, or the International Emergency 

23 Economic Powers Act when invoked to maintain and 

24 continue the Export Administration regulations, or 
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1 (2) those provisions of the Arms Export Control 

2 Act which are amended by section 702, 

3 and are in effect on the date of enactment of this Act, 

4 shall continue in effect according to their terms until 

5 modified, superseded, set aside, or revoked under this Act 

6 or the Arms Export Control Act. 

7 (b) ADMINISTRATIVE AND JUDICIAL PRO8 CEEDINGS.—

9 (1) EXPORT ADMINISTRATION ACT.—This Act 

10 shall not affect any administrative or judicial pro11 ceedings commenced or any application for a license 

12 made, under the Export Administration Act of 1979 

13 or pursuant to Executive Order 12924, which is 

14 pending at the time this Act takes effect. Any such 

15 proceedings, and any action on such application, 

16 shall continue under the Export Administration Act 

17 of 1979 as if that Act had not been repealed. 

18 (2) OTHER PROVISIONS OF LAW.—This Act 

19 shall not affect any administrative or judicial pro20 ceeding commenced or any application for a license 

21 made, under those provisions of the Arms Export 

22 Control Act which are amended by section 702, if 

23 such proceeding or application is pending at the time 

24 this Act takes effect. Any such proceeding, and any 

25 action on such application, shall continue under 
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1 those provisions as if those provisions had not been 

2 amended by section 702. 

3 (c) TREATMENT OF CERTAIN DETERMINATIONS.—

4 Any determination with respect to the government of a 

5 foreign country under section 6(j) of the Export Adminis6 tration Act of 1979, or Executive Order 12924, that is 

7 in effect on the day before the date of enactment of this 

8 Act, shall, for purposes of this title or any other provision 

9 of law, be deemed to be made under section 310 of this 

10 Act until superseded by a determination under such sec11 tion 310. 

12 (d) LAWFUL INTELLIGENCE ACTIVITIES.—The pro13 hibitions otherwise applicable under this Act do not apply 

14 with respect to any transaction subject to the reporting 

15 requirements of title V of the National Security Act of 

16 1947. Notwithstanding any other provision of this Act, 

17 nothing shall affect the responsibilities and authorities of 

18 the Director of Central Intelligence under section 103 of 

19 the National Security Act of 1947. 

20 (e) IMPLEMENTATION.—The Secretary shall make 

21 any revisions to the Export Administration regulations re22 quired by this Act no later than 180 days after the date 

23 of enactment of this Act.

Æ