I 

111TH CONGRESS 

1ST SESSION H. R. 3515 

To make improvements in the electronic filing of export data, to strengthen 

enforcement authorities with respect to the Export Administration Regulations, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 31, 2009 

Mr. SHERMAN (for himself, Mr. MANZULLO, and Mr. SMITH of Washington) 

introduced the following bill; which was referred to the Committee on 

Foreign Affairs 

A BILL 

To make improvements in the electronic filing of export 

data, to strengthen enforcement authorities with respect 

to the Export Administration Regulations, 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 Control Improvements Act’’. 

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

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 


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TITLE I—IMPROVEMENTS IN ELECTRONIC FILING OF EXPORT 

DATA 

Sec. 101. Short title. 

Sec. 102. Conferences; registration for filers; notifications; fees. 

Sec. 103. Definitions. 

Sec. 104. Conforming amendments. 

Sec. 105. Authorization of appropriations. 

TITLE II—EXPORT ENFORCEMENT ENHANCEMENT 

Sec. 201. Short title. 

Subtitle A—Enforcement of Export Administration Regulations 

Sec. 211. Declaration of policy. 

Sec. 212. Enforcement. 

Sec. 213. Authorization of appropriations. 

Sec. 214. Definitions. 

Subtitle B—Prevention of Transfer of Sensitive Items to Countries of 

Concern 

Sec. 221. Identification of locations of concern with respect to transshipment, 

reexportation, or diversion of certain items to Iran. 

Sec. 222. Destinations of Possible Diversion Concern and Destinations of Diversion Concern. 

Sec. 223. Report on expanding diversion concern system to countries other than 

Iran. 

Sec. 224. Annual report on transfers of militarily sensitive technology to countries and entities of concern. 

Sec. 225. Definitions. 

1 TITLE I—IMPROVEMENTS IN 

2 ELECTRONIC FILING OF EX3 PORT DATA 

4 SEC. 101. SHORT TITLE. 

5 This title may be cited as the ‘‘Securing Exports 

6 Through Coordination and Technology Act’’. 

7 SEC. 102. CONFERENCES; REGISTRATION FOR FILERS; NO8 TIFICATIONS; FEES. 

9 Chapter 9 of title 13, United States Code, is amend10 ed— 


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1 (1) by redesignating sections 302 through 307 

2 as sections 306 through 311, respectively; and 

3 (2) by inserting after section 301 the following 

4 new sections: 

5 ‘‘§ 302. Conferences and seminars 

6 ‘‘(a) MANDATORY CONFERENCE PARTICIPATION.— 

7 The Secretary shall work with the Secretary of State, the 

8 Secretary of Defense, the Secretary of Homeland Security, 

9 and the Secretary of the Treasury to ensure that appro10 priate personnel of each of their respective departments 

11 and agencies that are involved in the regulation of exports 

12 or the enforcement of such regulation are made available, 

13 subject to the availability of such personnel, to participate 

14 in fora the purpose of which is to educate exporters about 

15 laws and regulations of the United States governing ex16 ports and about the Automated Export System in par17 ticular, including through seminars, educational or train18 ing meetings, exhibitions, symposiums, and other similar 

19 meetings. 

20 ‘‘(b) AUTHORITY TO COLLECT FEES.—The Sec21 retary may collect fees from any individual or other person 

22 attending or participating in any forum described in sub23 section (a) that is conducted by, or jointly with, the De24 partment of Commerce. The Secretary may use contracVerDate Nov 24 2008 22:49 Aug 04, 2009 Jkt 079200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3515.IH H3515

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1 tors to collect such fees. Fees under this subsection may 

2 be collected in advance of the forum. 

3 ‘‘(c) DISPOSITION OF COLLECTED FEES.—Amounts 

4 collected under subsection (b) shall be used to pay all or 

5 part of the cost of fora described in subsection (a), and 

6 shall be credited to the account from which the costs of 

7 such fora have been paid or will be paid. 

8 ‘‘(d) BUDGET FOR PARTICIPATING AGENCIES.—In 

9 the case of any agency that does not have the available 

10 funds to participate in a forum under subsection (a), the 

11 Secretary shall make such sums available, from fees col12 lected under subsection (b), as are necessary to allow such 

13 participation by the agency. 

14 ‘‘(e) AVAILABILITY OF MATERIALS TO THE PUB15 LIC.—The Secretary shall make available to the public, in16 cluding through its public website, relevant materials pro17 vided for the fora held under subsection (a). 

18 ‘‘§ 303. Automated Export System registrations for fil19 ers 

20 ‘‘(a) REGISTRATIONS.— 

21 ‘‘(1) IN GENERAL.—The Secretary may estab22 lish a registration program for agents to file infor23 mation in the Automated Export System on behalf 

24 of the United States principal party in interest or 

25 the foreign principal party in interest. Such registraVerDate Nov 24 2008 22:49 Aug 04, 2009 Jkt 079200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H3515.IH H3515

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1 tion program may include authorization for individ2 uals to file as well as any corporation, association, 

3 or partnership that is organized under the laws of 

4 the United States or of any State, the District of 

5 Columbia, or any commonwealth, territory, or pos6 session of the United States. 

7 ‘‘(2) QUALIFICATIONS FOR INDIVIDUALS.—The 

8 Secretary may establish qualification requirements 

9 for an individual seeking to register under the pro10 gram, except that an individual may be so registered 

11 only if the individual is a United States citizen, an 

12 alien lawfully admitted for permanent residence to 

13 the United States, or a national of the United States 

14 (in the case of a resident of a territory or possession 

15 of the United States). In assessing the qualification 

16 of an applicant for registration, the Secretary may 

17 conduct an examination to determine the applicant’s 

18 knowledge of the Automated Export System and 

19 laws, regulations, and procedures related to the ex20 port of goods from the United States, and may re21 quire participation in a continuing education pro22 gram on a periodic basis. The Secretary may also 

23 obtain information to determine an applicant’s fit24 ness and character to act as an Automated Export 

25 System filer. An individual who meets the requireVerDate Nov 24 2008 22:49 Aug 04, 2009 Jkt 079200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H3515.IH H3515

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1 ments for registration under this paragraph shall be 

2 issued an Automated Export System registration. 

3 ‘‘(3) QUALIFICATIONS FOR CORPORATIONS AND

4 OTHER BUSINESS ENTITIES.— 

5 ‘‘(A) REQUIREMENTS.—A corporation, as6 sociation, or partnership may be registered 

7 under this subsection only if at least one official 

8 of the corporation or association who is des9 ignated by the corporation or association, or 

10 one member of the partnership, who is author11 ized to act on behalf of the corporation, associa12 tion, or partnership, as the case may be— 

13 ‘‘(i) holds a valid Automated Export 

14 System registration under paragraph (2); 

15 ‘‘(ii) is responsible for the supervision 

16 and control of filing Shipper’s Export Dec17 laration information in the Automated Ex18 port System; and 

19 ‘‘(iii) is a United States citizen, an 

20 alien lawfully admitted for permanent resi21 dence to the United States, or a national 

22 of the United States (in the case of a resi23 dent of a territory or possession of the 

24 United States). 


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1 ‘‘(B) ADDITIONAL REGISTRATION RE2 QUIREMENTS.—The Secretary may establish 

3 such other registration requirements for cor4 porations, associations, and partnerships as the 

5 Secretary considers appropriate. A corporation, 

6 association, or partnership that meets the re7 quirements for registration under this para8 graph shall be issued an Automated Export 

9 System registration. 

10 ‘‘(4) FEDERAL MARITIME COMMISSION LI11 CENSES.—An ocean transportation intermediary 

12 (OTI) license issued by the Federal Maritime Com13 mission may be used to satisfy the initial qualifica14 tion requirements of the registration program under 

15 this subsection, if the Federal Maritime Commission 

16 maintains sufficient requirements with respect to 

17 such license, as determined by the Secretary. 

18 ‘‘(5) LAPSE OF REGISTRATION.—Registrations 

19 under this subsection shall be granted for a period 

20 of not less than 3 years, and may be renewed in 

21 such manner and under such conditions as are es22 tablished by the Secretary. 

23 ‘‘(b) DENIAL, SUSPENSION, OR REVOCATION OF

24 REGISTRATION.— 


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1 ‘‘(1) GENERAL RULE.—The Secretary may re2 voke or suspend a registration or deny an applica3 tion for registration under subsection (a), which may 

4 take effect immediately, if the Secretary has reason 

5 to believe that the registrant or applicant has vio6 lated or will violate any regulations issued under this 

7 section or any law or regulation of the United States 

8 controlling exports. The Secretary may provide rules 

9 for notifying registrants and registration applicants 

10 of the process for revoking or suspending a registra11 tion or denying an application, consistent with the 

12 need to protect national security. 

13 ‘‘(2) PROCEDURES FOR DENIAL, REVOCATION, 

14 OR SUSPENSION.— 

15 ‘‘(A) IN GENERAL.—If a registration is re16 voked or suspended or an application is denied 

17 under paragraph (1), the Secretary shall send 

18 the registrant or applicant notice in writing spe19 cifically setting forth the grounds for suspen20 sion, revocation, or denial, shall allow the reg21 istrant or applicant a period of 30 calendar 

22 days beginning on the date on which the notice 

23 is received to respond in writing, and shall ad24 vise the registrant or applicant of the right to 

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1 quest an extension of time for such response, 

2 and the Secretary shall grant such extension for 

3 good cause shown. If no response is filed within 

4 that 30-day period, or any extension thereof, 

5 and the Secretary determines that the revoca6 tion, suspension, or denial is still warranted, 

7 the revocation, suspension, or denial shall be8 come final. 

9 ‘‘(B) HEARING.—If a timely response is 

10 received under subparagraph (A) and the reg11 istrant or applicant requests a hearing, a hear12 ing shall be held within 30 calendar days after 

13 the date on which the request is received, or at 

14 a later date if the registrant or applicant re15 quests an extension and shows good cause 

16 therefor. An administrative law judge appointed 

17 under section 3105 of title 5 shall preside at 

18 the hearing, which shall be conducted in accord19 ance with regulations issued by the Secretary. 

20 The administrative law judge shall issue a writ21 ten decision either upholding, reversing, or 

22 modifying the decision of the Secretary, based 

23 solely on the record, setting forth the findings 

24 of fact, and the reasons for the decision. 


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1 ‘‘(C) SUSPENSION OF REGISTRATION

2 PENDING APPEAL.—In a case in which a person 

3 appeals a decision revoking or suspending a 

4 registration under this subsection, including an 

5 appeal under subsection (c), the Secretary may 

6 order that the registration continue to be sus7 pended while the appeal is pending. 

8 ‘‘(3) SETTLEMENT AND COMPROMISE.—The 

9 Secretary may settle and compromise any proceeding 

10 that has been instituted under this subsection ac11 cording to the terms and conditions agreed to by the 

12 parties, including the reduction of any proposed sus13 pension or revocation. 

14 ‘‘(4) LIMITATION OF ACTIONS.—The Secretary 

15 may revoke or suspend a registration or deny an ap16 plication for registration under this subsection only 

17 if the appropriate service of written notice is made 

18 under paragraph (2)(A) within 5 years after the 

19 date on which the alleged act described in paragraph 

20 (1) was committed, except that if the alleged act 

21 consists of fraud, the 5-year period shall begin on 

22 the date on which the alleged act was discovered. 

23 ‘‘(c) JUDICIAL APPEAL.— 

24 ‘‘(1) IN GENERAL.—A registrant under this sec25 tion, or an applicant for a registration under this 


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1 section, may appeal any decision of the administra2 tive law judge under subsection (b) suspending or 

3 revoking the registration or denying the application 

4 by filing in the appropriate United States district 

5 court, within 60 days after the date on which the de6 cision is issued, a written petition requesting that 

7 the decision be modified or set aside in whole or in 

8 part. A copy of the petition shall be served upon the 

9 Secretary. In cases involving revocation or suspen10 sion of a registration, the Secretary, after receiving 

11 the petition, shall file in the court the record upon 

12 which the decision complained of was entered. 

13 ‘‘(2) FAILURE TO APPEAL.—If an appeal is not 

14 filed within the time limits specified in paragraph 

15 (1), the decision of the administrative law judge 

16 under subsection (b) shall be final and conclusive. 

17 ‘‘(d) REGULATIONS.—The Secretary shall provide a 

18 period of at least 90 days for the submission of public 

19 comments on any regulations issued to carry out this sec20 tion, before such regulations may become effective. 

21 ‘‘§ 304. Notification of relevant export requirements 

22 ‘‘(a) IN GENERAL.—The Secretary, with the concur23 rence of the heads of the relevant departments and agen24 cies, shall ensure that the Automated Export System will 

25 identify the filing of data in connection with an export 


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1 from the United States if the country of destination of 

2 intended export or the export control information, or lack 

3 thereof, would result in a violation of any prohibition or 

4 restriction on exports under the laws and regulations of 

5 the United States. 

6 ‘‘(b) SUFFICIENCY AND TIMELINESS OF EXPORT

7 CONTROL INFORMATION IN THE AUTOMATED EXPORT

8 SYSTEM.—Not later than 1 year after the date of the en9 actment of the Securing Exports Through Coordination 

10 and Technology Act, the Secretary, with the concurrence 

11 of the heads of the relevant departments and agencies and 

12 in consultation with representatives of affected industries 

13 and nongovernmental organizations with relevant exper14 tise, shall— 

15 ‘‘(1) ensure on an ongoing basis that changes 

16 in laws and regulations controlling exports from the 

17 United States are reflected in the Automated Export 

18 System upon implementation of those changes; 

19 ‘‘(2) enable on an ongoing basis the classifica20 tion of products to be exported in a manner suffi21 cient to carry out the purposes of this section; and 

22 ‘‘(3) ensure on an ongoing basis that all lists 

23 maintained by the United States and comprised of 

24 persons or entities to whom exports are restricted 

25 are available in a standardized format and contain 


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1 sufficient descriptive information to enable their ef2 fective use by exporters (through the Automated Ex3 port System or otherwise) to screen transactions and 

4 prevent diversions of exported items for unauthor5 ized destinations, parties, or uses. 

6 ‘‘(c) MINIMUM REQUIREMENTS.—The Secretary, 

7 with the concurrence of the heads of the relevant depart8 ments and agencies and in consultation with representa9 tives of affected industries and nongovernmental organiza10 tions with relevant expertise, shall ensure that the Auto11 mated Export System contains at least the following oper12 ational features: 

13 ‘‘(1) The Automated Export System will proc14 ess data filed in connection with an export and will 

15 alert the filer to export license requirements under 

16 the laws and regulations of the United States. 

17 ‘‘(2) If the data filed that is associated with the 

18 export does not satisfy requirements under the ex19 port control laws and regulations of the United 

20 States, the Automated Export System will issue no21 tices, compliance alerts, and other warnings, as ap22 propriate, that the transaction may not satisfy ex23 port requirements, accompanied by references to the 

24 applicable authorities. 


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1 ‘‘(3) The Automated Export System will retain 

2 records of actions of users while filing export data. 

3 ‘‘(d) CONSTRUCTION.—Nothing in this section shall 

4 be construed to authorize an export solely because the 

5 Automated Export System accepts the filing of data. 

6 ‘‘§ 305. Fees and charges 

7 ‘‘The Secretary may issue regulations prescribing 

8 reasonable fees and charges, with particular sensitivity to 

9 small businesses, to defray the costs of the Secretary in 

10 carrying out this chapter.’’. 

11 SEC. 103. DEFINITIONS. 

12 Chapter 9 of title 13, United States Code, is amended 

13 by adding at the end the following new section: 

14 ‘‘§ 312. Definitions 

15 ‘‘In this chapter: 

16 ‘‘(1) AUTOMATED EXPORT SYSTEM.—The term 

17 ‘Automated Export System’ means the automated 

18 and electronic system for filing export information 

19 established under this chapter. 

20 ‘‘(2) RELEVANT DEPARTMENTS AND AGEN21 CIES.—The term ‘relevant departments and agen22 cies’ means the Department of State, the Depart23 ment of Defense, the Department of Homeland Se24 curity, and the Department of the Treasury. 


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1 ‘‘(3) SHIPPER’S EXPORT DECLARATION.—The 

2 term ‘Shipper’s Export Declaration’ means the ex3 port information filed under this chapter.’’. 

4 SEC. 104. CONFORMING AMENDMENTS. 

5 (a) REGULATIONS, ORDERS, ETC.—Section 306 of 

6 title 13, United States Code, as redesignated by section 

7 102(1) of this Act, is amended by striking the last sen8 tence and inserting ‘‘The Secretary shall make rules, regu9 lations, and orders, and amendments thereto, with the 

10 concurrence of the Secretary of Homeland Security.’’. 

11 (b) CROSS REFERENCES.—Section 309 of title 13, 

12 United States Code, as redesignated by section 102(1) of 

13 this Act, is amended— 

14 (1) in subsection (b), by striking ‘‘304’’ and in15 serting ‘‘308’’; and 

16 (2) in subsection (c)— 

17 (A) in paragraph (1), by striking ‘‘304’’ 

18 and inserting ‘‘308’’; 

19 (B) in paragraph (4), by striking ‘‘306’’ 

20 and inserting ‘‘310’’; and 

21 (C) in paragraph (5), by striking ‘‘304’’ 

22 and inserting ‘‘308’’. 

23 (c) TABLE OF CONTENTS.—The table of contents for 

24 chapter 9 of title 13, United States Code, is amended to 

25 read as follows: 

‘‘301. Collection and publication. 


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‘‘302. Conferences and seminars. 

‘‘303. Automated Export System registrations for filers. 

‘‘304. Notification of reelvant export requirements. 

‘‘305. Fees and charges. 

‘‘306. Rules, regulations, and orders. 

‘‘307. Secretary of Treasury functions. 

‘‘308. Filing export information, delayed filings, penalties for failure to file. 

‘‘309. Penalties for unlawful export information activities. 

‘‘310. Delegation of functions. 

‘‘311. Relationship to general census law. 

‘‘312. Definitions.’’. 

1 SEC. 105. AUTHORIZATION OF APPROPRIATIONS. 

2 There are authorized to be appropriated such sums 

3 as may be necessary to carry out the amendments made 

4 by this title. 

5 TITLE II—EXPORT 

6 ENFORCEMENT ENHANCEMENT 

7 SEC. 201. SHORT TITLE. 

8 This title may be cited as the ‘‘Export Enforcement 

9 Act of 2009’’. 

10 Subtitle A—Enforcement of Export 

11 Administration Regulations 

12 SEC. 211. DECLARATION OF POLICY. 

13 The Congress declares that, at a time of evolving 

14 threats and changing relationships with other countries, 

15 as well as rapid technological change and an increasingly 

16 globalized economy, United States strategic export con17 trols are in urgent need of a comprehensive review in order 

18 to assure those controls are achieving their intended pur19 poses of protecting the national security of the United 

20 States in the Global War on Terrorism and of promoting 


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1 the economic and foreign policy interests of the United 

2 States, in particular by assuring that— 

3 (1) export authorization procedures are prop4 erly designed to prioritize which exports may be ap5 proved quickly for trusted partners of the United 

6 States and which require greater scrutiny in order to 

7 safeguard national interests; 

8 (2) strategic export controls appropriately and 

9 effectively identify and protect technologies critical 

10 to United States national security interests; and 

11 (3) coordination among the responsible depart12 ments and agencies of the Government of the United 

13 States is improved in order to enhance efficiency, in14 formation sharing, and the consistent execution of 

15 United States policy. 

16 SEC. 212. ENFORCEMENT. 

17 (a) GENERAL AUTHORITY.— 

18 (1) IN GENERAL.—To the extent necessary or 

19 appropriate for the enforcement of the Export Ad20 ministration Regulations, or for the imposition of 

21 any penalty, forfeiture, or liability arising under the 

22 Export Administration Regulations— 

23 (A) the head of any department or agency 

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1 ployees of such department or agency specifi2 cally designated by the head thereof) may con3 duct investigations within the United States; 

4 (B) the Secretary of Commerce (and offi5 cers and employees of the Office of Export En6 forcement of the Department of Commerce spe7 cifically designated by the Secretary of Com8 merce), and the head of any department or 

9 agency with responsibility for enforcing the Ex10 port Administration Regulations (and officers 

11 and employees of such department or agency 

12 specifically designated by the head of such de13 partment or agency), may conduct investiga14 tions outside of the United States; 

15 (C) the head of any department or agency 

16 with the responsibility for enforcing the Export 

17 Administration Regulations (and the officers or 

18 employees of such department or agency) may 

19 obtain information from, require reports or the 

20 keeping of records by, inspect the books, 

21 records, and other writings, premises, or prop22 erty of, and take the sworn testimony of, any 

23 person; 

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1 firmations, and may by subpoena require any 

2 person to appear and testify or to appear and 

3 produce books, records, and other writings, or 

4 both; and 

5 (ii) in the case of contumacy by, or refusal 

6 to obey a subpoena issued to, any such person, 

7 a district court of the United States, after no8 tice to any such person and hearing, shall have 

9 jurisdiction to issue an order requiring such 

10 person to appear and give testimony or to ap11 pear and produce books, records, and other 

12 writings, or both, and any failure to obey such 

13 order of the court may be punished by such 

14 court as a contempt thereof; and 

15 (E) the Secretary of Commerce (and offi16 cers or employees of the Department of Com17 merce designated by the Secretary) may con18 duct, outside the United States, pre-license in19 vestigations and post-shipment verifications of 

20 items licensed for export. 

21 (2) ENFORCEMENT.— 

22 (A) IN GENERAL.—Subject to subpara23 graph (B)— 

24 (i) the Secretary of Commerce shall 

25 have the responsibility for the enforcement 


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1 of the restrictive trade practices and boy2 cott provisions of the Export Administra3 tion Regulations; 

4 (ii) to the extent necessary or appro5 priate for the enforcement of the Export 

6 Administration Regulations, or for the im7 position of any penalty, forfeiture, or liabil8 ity arising under the Export Administra9 tion Regulations, the Secretary of Com10 merce may search, detain (after search), 

11 and seize goods or technology— 

12 (I) at places within the United 

13 States other than those ports of entry 

14 or exit from the United States where 

15 officers of U.S. Immigration and Cus16 toms Enforcement and U.S. Customs 

17 and Border Protection are authorized 

18 by law to conduct such activities; and 

19 (II) at places outside the United 

20 States where the Office of Export En21 forcement of the Department of Com22 merce, pursuant to agreements or 

23 other arrangements with other coun24 tries, is authorized to perform en25 forcement activities; 


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1 (iii) the search, detention (after 

2 search), or seizure of goods or technology 

3 at ports and places authorized under 

4 clause (ii) may be conducted by officers or 

5 employees of the Department of Commerce 

6 designated by the Secretary of Commerce, 

7 with the concurrence of the Secretary of 

8 Homeland Security; and 

9 (iv) enforcement activities under this 

10 section that are conducted outside the 

11 United States, except for prelicense inves12 tigations and post-shipment verifications, 

13 shall be conducted with the concurrence of 

14 the Secretary of Homeland Security. 

15 (B) AUTHORITY OF OFFICE OF EXPORT

16 ENFORCEMENT.—The Secretary of Commerce 

17 may designate any employee of the Office of 

18 Export Enforcement of the Department of 

19 Commerce to do the following in carrying out 

20 enforcement authority under this section: 

21 (i) Execute any warrant or other proc22 ess issued by a court or officer of com23 petent jurisdiction. 

24 (ii) Make arrests without warrant for 

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1 mitted in such officer’s presence or view or 

2 any felony offense against the United 

3 States if such officer has probable cause to 

4 believe that the person to be arrested has 

5 committed or is committing that felony of6 fense. 

7 (iii) Carry firearms. 

8 (3) ATTORNEY GENERAL GUIDELINES.—The 

9 authority conferred by paragraph (2) shall be exer10 cised consistent with guidelines approved by the At11 torney General. 

12 (4) BEST PRACTICES GUIDELINES.— 

13 (A) IN GENERAL.—The Secretary of Com14 merce, in consultation with the technical advi15 sory committees established pursuant to section 

16 5(h) of the Export Administration Act of 1979, 

17 and representative exporters, shippers, trade 

18 facilitators, freight forwarders, and reexporters, 

19 shall continue to publish and update ‘‘best prac20 tices’’ guidelines to help industries develop and 

21 implement, on a voluntary basis, effective ex22 port control programs in compliance with the 

23 Export Administration Regulations. 

24 (B) EXPORT COMPLIANCE PROGRAM.—The 

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1 gram and high quality overall export compliance 

2 effort is one of the factors that ordinarily 

3 should be given weight as a mitigating factor in 

4 a civil penalty action under the Export Admin5 istration Regulations. 

6 (5) REFERENCE TO ENFORCEMENT.—For pur7 poses of this section, a reference to the enforcement 

8 of, or a violation of, the Export Administration Reg9 ulations includes a reference to the enforcement or 

10 a violation of any order or license issued pursuant 

11 to the Export Administration Regulations. 

12 (b) IMMUNITY.—A person shall not be excused from 

13 complying with any requirements under this section be14 cause of the person’s privilege against self-incrimination, 

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

16 United States Code, shall apply with respect to any indi17 vidual who specifically claims such privilege. 

18 (c) CONFIDENTIALITY OF INFORMATION.— 

19 (1) EXEMPTIONS FROM DISCLOSURE.— 

20 (A) INFORMATION OBTAINED ON OR BE21 FORE JUNE 30, 1980.—Except as otherwise pro22 vided by the third sentence of section 8(b)(2) 

23 and by section 11(c)(2)(C) of the Export Ad24 ministration Act of 1979, information obtained 

25 under the Export Administration Act of 1979, 


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1 or any predecessor statute, on or before June 

2 30, 1980, that is deemed confidential, including 

3 Shipper’s Export Declarations, or with respect 

4 to which a request for confidential treatment is 

5 made by the person furnishing such informa6 tion, shall not be subject to disclosure under 

7 section 552 of title 5, United States Code, and 

8 such information shall not be published or dis9 closed, unless the Secretary of Commerce deter10 mines that withholding such information is con11 trary to the national interest. 

12 (B) INFORMATION OBTAINED AFTER JUNE

13 30, 1980.—Except as otherwise provided by the 

14 third sentence of section 8(b)(2) and by section 

15 11(c)(2)(C) of the Export Administration Act 

16 of 1979, information obtained under the Export 

17 Administration Act of 1979 after June 30, 

18 1980, or under the Export Administration Reg19 ulations may be withheld from disclosure only 

20 to the extent permitted by statute, except that 

21 information obtained for the purpose of consid22 eration of, or concerning, license applications 

23 under the Export Administration Act of 1979 

24 or the Export Administration Regulations shall 

25 be withheld from public disclosure unless the 


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1 release of such information is determined by the 

2 Secretary of Commerce to be in the national in3 terest. 

4 (2) WITHHOLDING OF INFORMATION FROM

5 FEDERAL AGENCIES BARRED.—Nothing in this sec6 tion or the Export Administration Regulations shall 

7 be construed as authorizing the withholding of infor8 mation from other Federal agencies for purposes of 

9 the enforcement of the Export Administration Regu10 lations, any regulation, rule, order, or license issued 

11 under the International Emergency Economic Pow12 ers Act, or any other provision of law. 

13 (3) INFORMATION TO THE CONGRESS AND

14 GAO.— 

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

16 shall be construed as authorizing the with17 holding of information from the Congress or 

18 from the Government Accountability Office. 

19 (B) AVAILABILITY TO THE CONGRESS.— 

20 (i) IN GENERAL.—Any information 

21 obtained at any time under the Export Ad22 ministration Act of 1979, under previous 

23 Acts regarding the control of exports, or 

24 under the Export Administration Regula25 tions, including any report or license appliVerDate Nov 24 2008 22:49 Aug 04, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6201 E:\BILLS\H3515.IH H3515

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1 cation required under any such Act or the 

2 Export Administration Regulations, shall 

3 be made available to a committee or sub4 committee of Congress of appropriate ju5 risdiction, upon the request of the chair6 man or ranking minority member of such 

7 committee or subcommittee. 

8 (ii) PROHIBITION ON FURTHER DIS9 CLOSURE.—No such committee or sub10 committee, or member thereof, may dis11 close any information obtained under the 

12 Export Administration Act of 1979, under 

13 previous Acts regarding the control of ex14 ports, or under the Export Administration 

15 Regulations, that is submitted on a con16 fidential basis unless the full committee de17 termines that the withholding of that infor18 mation is contrary to the national interest. 

19 (C) AVAILABILITY TO GAO.— 

20 (i) IN GENERAL.—Notwithstanding 

21 paragraph (1), information described in 

22 clause (i) of subparagraph (B) shall, con23 sistent with the protection of intelligence, 

24 counterintelligence, and law enforcement 

25 sources, methods, and activities, as deterVerDate Nov 24 2008 22:49 Aug 04, 2009 Jkt 079200 PO 00000 Frm 00026 Fmt 6652 Sfmt 6201 E:\BILLS\H3515.IH H3515

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1 mined by the agency that originally ob2 tained the information, and consistent with 

3 section 716 of title 31, United States 

4 Code, be made available only by that agen5 cy, upon request, to the Comptroller Gen6 eral of the United States or to any officer 

7 or employee of the Government Account8 ability Office authorized by the Comp9 troller General to have access to such in10 formation. 

11 (ii) PROHIBITION ON FURTHER DIS12 CLOSURE.—No officer or employee of the 

13 Government Accountability Office may dis14 close, except to the Congress in accordance 

15 with this paragraph, any such information 

16 that is submitted on a confidential basis or 

17 from which any individual can be identi18 fied. 

19 (4) INFORMATION SHARING.— 

20 (A) IN GENERAL.—Any department or 

21 agency that obtains information that is relevant 

22 to the enforcement of the Export Administra23 tion Regulations, including information per24 taining to any investigation, shall furnish such 

25 information to each department or agency with 


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1 enforcement responsibilities under this section 

2 to the extent consistent with the protection of 

3 intelligence, counterintelligence, and law en4 forcement sources, methods, and activities. 

5 (B) EXCEPTIONS.—The provisions of this 

6 paragraph shall not apply to information sub7 ject to the restrictions set forth in section 9 of 

8 title 13, United States Code, and return infor9 mation, as defined in subsection (b) of section 

10 6103 of the Internal Revenue Code of 1986 (26 

11 U.S.C. 6103(b)), may be disclosed only as au12 thorized by that section. 

13 (C) EXCHANGE OF INFORMATION.—The 

14 Secretary of Commerce and the Secretary of 

15 Homeland Security, upon request, shall ex16 change any licensing and enforcement informa17 tion with each other that is necessary to facili18 tate enforcement efforts under this section. 

19 (D) INTERAGENCY CONSULTATIONS.—The 

20 Secretary of Commerce, the Attorney General, 

21 and the Secretary of Homeland Security shall 

22 consult on a continuing basis with one another 

23 and with the head of other departments and 

24 agencies that obtain information subject to this 


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1 paragraph, in order to facilitate the exchange of 

2 such information. 

3 (d) REPORTING REQUIREMENTS.—In the administra4 tion of this section and the Export Administration Regula5 tions, reporting requirements shall be so designed as to 

6 reduce the cost of reporting, recordkeeping, and export 

7 documentation required under this section and the Export 

8 Administration Regulations to the extent feasible con9 sistent with effective enforcement and compilation of use10 ful trade statistics. Reporting, recordkeeping, and export 

11 documentation requirements shall be periodically reviewed 

12 and revised in the light of developments in the field of 

13 information technology. 

14 (e) SIMPLIFICATION OF REGULATIONS.—The Sec15 retary of Commerce, in consultation with appropriate de16 partments and agencies of the United States and with ap17 propriate technical advisory committees established pursu18 ant to section 5(h) of the Export Administration Act of 

19 1979, shall review the Export Administration Regulations, 

20 including the commodity control list, in order to determine 

21 how compliance with the provisions of the Export Admin22 istration Regulations can be facilitated by simplifying the 

23 Export Administration Regulations, by simplifying or 

24 clarifying the commodity control list, or by any other 

25 means. 


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1 (f) FORFEITURE.— 

2 (1) IN GENERAL.—Any tangible items lawfully 

3 seized under subsection (a) by designated officers or 

4 employees shall be subject to forfeiture to the United 

5 States. 

6 (2) PROCEDURES.—Any seizure or forfeiture 

7 under this subsection shall be made in accordance 

8 with the procedures set forth in section 981 of title 

9 18, United States Code. 

10 (g) UNDERCOVER INVESTIGATION OPERATIONS.— 

11 (1) USE OF FUNDS.—In the case of any under12 cover investigative operation conducted by the Office 

13 of Export Enforcement of the Department of Com14 merce that is necessary for the detection and pros15 ecution of a violation of the Export Administration 

16 Regulations— 

17 (A) funds made available for export en18 forcement under this section may be used to 

19 purchase property, buildings, and other facili20 ties, and to lease equipment, conveyances, and 

21 space within the United States, without regard 

22 to sections 1341 and 3324 of title 31, United 

23 States Code, section 8141 of title 40, United 

24 States Code, sections 3732(a) and 3741 of the 

25 Revised Statutes of the United States (41 


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1 U.S.C. 11(a) and 22), and sections 304(a), 

2 304A, 304B, 304C, and 305 of the Federal 

3 Property and Administrative Services Act of 

4 1949 (41 U.S.C. 254(a), 254b, 254c, 254d, and 

5 255); 

6 (B) funds made available for export en7 forcement under this section may be used to es8 tablish or to acquire proprietary corporations or 

9 business entities as part of an undercover oper10 ation, and to operate such corporations or busi11 ness entities on a commercial basis, without re12 gard to sections 1341, 3324, and 9102 of title 

13 31, United States Code; 

14 (C) funds made available for export en15 forcement under this section and the proceeds 

16 from undercover operations may be deposited in 

17 banks or other financial institutions without re18 gard to section 648 of title 18, United States 

19 Code, and section 3302 of title 31, United 

20 States Code; and 

21 (D) the proceeds from undercover oper22 ations may be used to offset necessary and rea23 sonable expenses incurred in such operations 

24 without regard to section 3302 of title 31, 

25 United States Code, if the Secretary of ComVerDate Nov 24 2008 22:49 Aug 04, 2009 Jkt 079200 PO 00000 Frm 00031 Fmt 6652 Sfmt 6201 E:\BILLS\H3515.IH H3515

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1 merce certifies in writing that the action au2 thorized by subparagraph (A), (B), (C), or (D) 

3 for which the funds would be used is necessary 

4 for the conduct of the undercover operation. 

5 (2) DISPOSITION OF BUSINESS ENTITIES.—If a 

6 corporation or business entity established or ac7 quired as part of an undercover operation has a net 

8 value of more than $250,000 and is to be liquidated, 

9 sold, or otherwise disposed of, the Secretary of Com10 merce shall report the circumstances to the Comp11 troller General of the United States as much in ad12 vance of such disposition as the Secretary of Com13 merce determines is practicable. The proceeds of the 

14 liquidation, sale, or other disposition, after obliga15 tions incurred by the corporation or business enter16 prise are met, shall be deposited in the Treasury of 

17 the United States as miscellaneous receipts. Any 

18 property or equipment purchased pursuant to para19 graph (1) may be retained for subsequent use in un20 dercover operations under this section. When such 

21 property or equipment is no longer needed, it shall 

22 be considered surplus and disposed of as surplus 

23 government property. 

24 (3) DEPOSIT OF PROCEEDS.—As soon as the 

25 proceeds from an undercover investigative operation 


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1 of the Office of Export Enforcement of the Depart2 ment of Commerce with respect to which an action 

3 is authorized and carried out under this subsection 

4 are no longer needed for the conduct of such oper5 ation, the proceeds or the balance of the proceeds re6 maining at the time shall be deposited into the 

7 Treasury of the United States as miscellaneous re8 ceipts. 

9 (4) AUDIT AND REPORT.— 

10 (A) AUDIT.—The Secretary of Commerce 

11 shall conduct a detailed financial audit of each 

12 closed undercover investigative operation of the 

13 Office of Export Enforcement of the Depart14 ment of Commerce. Not later than 180 days 

15 after an undercover operation is closed, the Sec16 retary of Commerce shall submit to the Con17 gress a report on the results of the audit. 

18 (B) REPORT.—The Secretary of Commerce 

19 shall submit to the appropriate congressional 

20 committees, in the Secretary’s annual report to 

21 the Congress on the administration of export 

22 controls and the Export Administration Regula23 tions, the following additional information: 

24 (i) The number of undercover inves25 tigative operations pending as of the end of 


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1 the period for which the report is sub2 mitted. 

3 (ii) The number of undercover inves4 tigative operations commenced in the 1- 

5 year period preceding the period for which 

6 the report is submitted. 

7 (iii) The number of undercover inves8 tigative operations closed in the 1-year pe9 riod preceding the period for which such 

10 report is submitted and, with respect to 

11 each such closed undercover operation, the 

12 results obtained and any civil claims made 

13 with respect to the operation. 

14 (5) DEFINITIONS.—In this subsection: 

15 (A) CLOSED.—The term ‘‘closed’’, with re16 spect to an undercover investigative operation, 

17 refers to the earliest point in time at which all 

18 criminal proceedings (other than appeals) pur19 suant to the investigative operation are con20 cluded, or covert activities pursuant to such op21 eration are concluded, whichever occurs later. 

22 (B) UNDERCOVER INVESTIGATIVE OPER23 ATION AND UNDERCOVER OPERATION.— 

24 (i) IN GENERAL.—The terms ‘‘under25 cover investigative operation’’ and ‘‘underVerDate Nov 24 2008 22:49 Aug 04, 2009 Jkt 079200 PO 00000 Frm 00034 Fmt 6652 Sfmt 6201 E:\BILLS\H3515.IH H3515

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1 cover operation’’ mean any undercover in2 vestigative operation conducted by the Of3 fice of Export Enforcement of the Depart4 ment of Commerce— 

5 (I) in which the gross receipts 

6 (excluding interest earned) exceed 

7 $25,000, or expenditures (other than 

8 expenditures for salaries of employees) 

9 exceed $75,000; and 

10 (II) which is exempt from section 

11 3302 or 9102 of title 31, United 

12 States Code. 

13 (ii) EXCEPTION.—Subclauses (I) and 

14 (II) of clause (i) shall not apply with re15 spect to the report to the Congress re16 quired by paragraph (4)(B). 

17 (h) AUTHORIZATION FOR BUREAU OF INDUSTRY AND

18 SECURITY.—The Secretary of Commerce may authorize, 

19 without fiscal year limitation, the expenditure of funds 

20 transferred to, paid to, received by, or made available to 

21 the Bureau of Industry and Security of the Department 

22 of Commerce as a reimbursement in accordance with sec23 tion 9703 of title 31, United States Code (as added by 

24 Public Law 102–393). 


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1 SEC. 213. AUTHORIZATION OF APPROPRIATIONS. 

2 There are authorized to be appropriated such sums 

3 as may be necessary to carry out this subtitle for each 

4 fiscal year. 

5 SEC. 214. DEFINITIONS. 

6 In this subtitle: 

7 (1) APPROPRIATE CONGRESSIONAL COMMIT8 TEES.—The term ‘‘appropriate congressional com9 mittees’’ means the Committee on Foreign Affairs of 

10 the House of Representatives and the Committee on 

11 Foreign Relations of the Senate. 

12 (2) EXPORT ADMINISTRATION REGULATIONS.— 

13 The term ‘‘Export Administration Regulations’’ 

14 means the Export Administration Regulations as 

15 maintained and amended under the authority of the 

16 International Emergency Economic Powers Act and 

17 codified, as of the date of the enactment of this Act, 

18 in subchapter C of chapter VII of title 15, Code of 

19 Federal Regulations. 


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1 Subtitle B—Prevention of Transfer 

2 of Sensitive Items to Countries 

3 of Concern 

4 SEC. 221. IDENTIFICATION OF LOCATIONS OF CONCERN 

5 WITH RESPECT TO TRANSSHIPMENT, RE6 EXPORTATION, OR DIVERSION OF CERTAIN 

7 ITEMS TO IRAN. 

8 Not later than 180 days after the date of the enact9 ment of this Act, and annually thereafter, the President 

10 shall submit to the appropriate congressional committees 

11 a report that identifies all countries that the President de12 termines are of concern with respect to transshipment, re13 exportation, or diversion of items subject to the provisions 

14 of the Export Administration Regulations to an entity 

15 owned or controlled by the Government of Iran. 

16 SEC. 222. DESTINATIONS OF POSSIBLE DIVERSION CON17 CERN AND DESTINATIONS OF DIVERSION 

18 CONCERN. 

19 (a) DESTINATIONS OF POSSIBLE DIVERSION CON20 CERN.— 

21 (1) DESIGNATION.—The Secretary of Com22 merce shall designate a country as a Destination of 

23 Possible Diversion Concern if the Secretary, in con24 sultation with the Secretary of State and the Sec25 retary of the Treasury, determines that such desVerDate Nov 24 2008 22:49 Aug 04, 2009 Jkt 079200 PO 00000 Frm 00037 Fmt 6652 Sfmt 6201 E:\BILLS\H3515.IH H3515

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1 ignation is appropriate to carry out activities to 

2 strengthen the export control systems of that coun3 try based on criteria that include— 

4 (A) the volume of items that originated in 

5 the United States that are transported through 

6 the country to end-users whose identities cannot 

7 be verified; 

8 (B) the inadequacy of the export and reex9 port controls of the country; 

10 (C) the unwillingness or demonstrated in11 ability of the government of the country to con12 trol diversion activities; and 

13 (D) the unwillingness or inability of the 

14 government of the country to cooperate with the 

15 United States in interdiction efforts. 

16 (2) STRENGTHENING EXPORT CONTROL SYS17 TEMS OF DESTINATIONS OF POSSIBLE DIVERSION

18 CONCERN.—If the Secretary of Commerce designates 

19 a country as a Destination of Possible Diversion 

20 Concern under paragraph (1), the United States 

21 shall initiate government-to-government activities de22 scribed in paragraph (3) to strengthen the export 

23 control systems of the country. 


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1 (3) GOVERNMENT-TO-GOVERNMENT ACTIVITIES

2 DESCRIBED.—The government-to-government activi3 ties described in this paragraph include— 

4 (A) cooperation by agencies and depart5 ments of the United States with counterpart 

6 agencies and departments in a country des7 ignated as a Destination of Possible Diversion 

8 Concern under paragraph (1) to— 

9 (i) develop or strengthen export con10 trol systems in the country; 

11 (ii) strengthen cooperation and facili12 tate enforcement of export control systems 

13 in the country; and 

14 (iii) promote information and data ex15 changes among agencies of the country 

16 and with the United States; and 

17 (B) efforts by the Office of International 

18 Programs of the Department of Commerce to 

19 strengthen the export control systems of the 

20 country to— 

21 (i) facilitate legitimate trade in high22 technology goods; and 

23 (ii) prevent terrorists and state spon24 sors of terrorism, including Iran, from ob25 taining nuclear, biological, and chemical 


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1 weapons, defense technologies, components 

2 for improvised explosive devices, and other 

3 defense items. 

4 (b) DESTINATIONS OF DIVERSION CONCERN.— 

5 (1) DESIGNATION.—The Secretary of Com6 merce shall designate a country as a Destination of 

7 Diversion Concern if the Secretary, in consultation 

8 with the Secretary of State and the Secretary of the 

9 Treasury, determines— 

10 (A) that the government of the country is 

11 directly involved in transshipment, reexpor12 tation, or diversion of items that originated in 

13 the United States to end-users whose identities 

14 cannot be verified or to entities owned or con15 trolled by the Government of Iran; or 

16 (B) in the case of a country that has been 

17 designated as a Destination of Possible Diver18 sion Concern under subsection (a)(1), that the 

19 country has, upon the expiration of the 12- 

20 month period beginning on the date of such 

21 designation— 

22 (i) failed to cooperate with the govern23 ment-to-government activities initiated by 

24 the United States under subsection (a)(2); 

25 or 


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1 (ii) based on the criteria described in 

2 subsection (a)(1), failed to adequately 

3 strengthen the export control systems of 

4 the country. 

5 (2) LICENSING CONTROLS WITH RESPECT TO

6 DESTINATIONS OF DIVERSION CONCERN.— 

7 (A) REPORT ON SUSPECT ITEMS.— 

8 (i) IN GENERAL.—Not later than 45 

9 days after the date of the enactment of 

10 this Act, the Secretary of Commerce, in 

11 consultation with appropriate representa12 tives of the United States intelligence com13 munity, the Secretary of State, and the 

14 Secretary of the Treasury, shall submit to 

15 the appropriate congressional committees a 

16 report containing a list of items that, if the 

17 items were transshipped, reexported, or di18 verted to Iran, could contribute to— 

19 (I) Iran obtaining nuclear, bio20 logical, or chemical weapons, defense 

21 technologies, components for impro22 vised explosive devices, or other de23 fense items; or 

24 (II) support by Iran for acts of 

25 international terrorism. 


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1 (ii) CONSIDERATIONS FOR LIST.—In 

2 developing the list required under clause 

3 (i), the Secretary of Commerce shall con4 sider— 

5 (I) the items subject to licensing 

6 requirements under section 742.8 of 

7 title 15, Code of Federal Regulations 

8 (or any corresponding similar regula9 tion or ruling) and other existing li10 censing requirements; and 

11 (II) the items added to the list of 

12 items for which a license is required 

13 for exportation to North Korea by the 

14 final rule of the Bureau of Export Ad15 ministration of the Department of 

16 Commerce issued on June 19, 2000 

17 (65 Fed. Reg. 38148; relating to ex18 port restrictions on North Korea). 

19 (B) LICENSING REQUIREMENT.—Not later 

20 than 180 days after the date of the enactment 

21 of this Act, the Secretary of Commerce shall re22 quire a license to export an item on the list re23 quired under subparagraph (A)(i) to a country 

24 designated as a Destination of Diversion Con25 cern. 


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1 (3) WAIVER.—The President may waive the im2 position of the licensing requirement under para3 graph (2)(B) with respect to a country designated as 

4 a Destination of Diversion Concern if the Presi5 dent— 

6 (A) determines that such a waiver is in the 

7 national interest of the United States; and 

8 (B) submits to the appropriate congres9 sional committees a report describing the rea10 sons for the determination. 

11 (c) TERMINATION OF DESIGNATION.—The designa12 tion of a country as a Destination of Possible Diversion 

13 Concern or a Destination of Diversion Concern shall ter14 minate on the date on which the Secretary of Commerce 

15 determines, based on the criteria described in subpara16 graphs (A) through (D) of subsection (a)(1), and certifies 

17 to the appropriate congressional committees and the 

18 President that the country has adequately strengthened 

19 the export control systems of the country to prevent trans20 shipment, reexportation, and diversion of items through 

21 the country to end-users whose identities cannot be 

22 verified or to entities owned or controlled by the Govern23 ment of Iran. 


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1 (d) AUTHORIZATION OF APPROPRIATIONS.—There 

2 are authorized to be appropriated such sums as may be 

3 necessary to carry out this section. 

4 SEC. 223. REPORT ON EXPANDING DIVERSION CONCERN 

5 SYSTEM TO COUNTRIES OTHER THAN IRAN. 

6 Not later than 180 days after the date of the enact7 ment of this Act, the President shall submit to the appro8 priate congressional committees a report that— 

9 (1) identifies any country that the President de10 termines may be transshipping, reexporting, or di11 verting items subject to the provisions of the Export 

12 Administration Regulations to another country if 

13 such other country— 

14 (A) is seeking to obtain nuclear, biological, 

15 or chemical weapons, defense technologies, com16 ponents for improvised explosive devices, or 

17 other defense items; or 

18 (B) provides support for acts of inter19 national terrorism; and 

20 (2) assesses the feasability and advisability of 

21 expanding the system established under section 222 

22 for designating countries as Destinations of Possible 

23 Diversion Concern and Destinations of Diversion 

24 Concern to include countries identified under para25 graph (1). 


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1 SEC. 224. ANNUAL REPORT ON TRANSFERS OF MILITARILY 

2 SENSITIVE TECHNOLOGY TO COUNTRIES AND 

3 ENTITIES OF CONCERN. 

4 (a) ANNUAL REPORT.—Not later than March 30 of 

5 each year beginning in 2010, the President shall transmit 

6 to the Congress a report on transfers to countries and en7 tities of concern during the preceding calendar year of the 

8 most significant categories of United States technologies 

9 and technical information with potential military applica10 tions. 

11 (b) CONTENTS OF REPORT.—The report required by 

12 subsection (a) shall include, at a minimum, the following: 

13 (1) An assessment by the President of efforts 

14 by countries and entities of concern to acquire tech15 nologies and technical information referred to in 

16 subsection (a) during the preceding calendar year. 

17 (2) An assessment by the President of the cu18 mulative impact of licenses granted by the United 

19 States for exports of technologies and technical in20 formation referred to in subsection (a) to countries 

21 and entities of concern during the preceding 5-cal22 endar year period on— 

23 (A) the military capabilities of such coun24 tries and entities; and 


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1 (B) countermeasures that may be nec2 essary to overcome the use of such technologies 

3 and technical information. 

4 (3) An audit by the Inspectors General of the 

5 Departments of Defense, State, Commerce, Home6 land Security, Energy, and the Treasury, in con7 sultation with appropriate representatives of the 

8 United States intelligence community, of the policies 

9 and procedures of the United States Government 

10 with respect to the export of technologies and tech11 nical information referred to in subsection (a) to 

12 countries and entities of concern. 

13 (c) ADDITIONAL REQUIREMENT FOR FIRST RE14 PORT.—The first annual report required by subsection (a) 

15 shall include an assessment by the Inspectors General of 

16 the Departments of Defense, State, Commerce, Homeland 

17 Security, Energy, and the Treasury of the adequacy of 

18 current export controls and counterintelligence measures 

19 to protect against the acquisition by countries and entities 

20 of concern of United States technology and technical infor21 mation referred to in subsection (a). 

22 (d) SUPPORT OF OTHER AGENCIES.—Upon the re23 quest of any of the officials responsible for preparing an 

24 assessment or audit required by subsection (b) or (c), the 

25 heads of other departments and agencies shall make availVerDate Nov 24 2008 22:49 Aug 04, 2009 Jkt 079200 PO 00000 Frm 00046 Fmt 6652 Sfmt 6201 E:\BILLS\H3515.IH H3515

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1 able to those officials all information necessary to carry 

2 to prepare such assessment or audit. 

3 (e) CLASSIFIED AND UNCLASSIFIED REPORTS.— 

4 Each report required by this section shall be submitted 

5 in classified form and unclassified form. 

6 (f) DEFINITION.—In this section, the term ‘‘countries 

7 and entities of concern’’ means— 

8 (1) any country that is a state sponsor of ter9 rorism; 

10 (2) any country that— 

11 (A) has detonated a nuclear explosive de12 vice (as defined in section 830(4) of the Nu13 clear Proliferation Prevention Act of 1994 (22 

14 U.S.C. 6305(4))); and 

15 (B) is not a member of the North Atlantic 

16 Treaty Organization; and 

17 (3) any entity that— 

18 (A) is engaged in international terrorism 

19 or activities in preparation thereof; or 

20 (B) is directed or controlled by the govern21 ment of a country described in paragraph (1) or 

22 (2). 

23 SEC. 225. DEFINITIONS. 

24 In this subtitle: 


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1 (1) APPROPRIATE CONGRESSIONAL COMMIT2 TEES.—The term ‘‘appropriate congressional com3 mittees’’ means— 

4 (A) the Committee on Banking, Housing, 

5 and Urban Affairs, the Committee on Foreign 

6 Relations, and the Select Committee on Intel7 ligence of the Senate; and 

8 (B) the Committee on Financial Services, 

9 the Committee on Foreign Affairs, and the Per10 manent Select Committee on Intelligence of the 

11 House of Representatives. 

12 (2) END-USER.—The term ‘‘end-user’’ means 

13 an end-user as that term is used in the Export Ad14 ministration Regulations. 

15 (3) ENTITY OWNED OR CONTROLLED BY THE

16 GOVERNMENT OF IRAN.—The term ‘‘entity owned or 

17 controlled by the Government of Iran’’ includes— 

18 (A) any corporation, partnership, associa19 tion, or other entity in which the Government 

20 of Iran owns a majority or controlling interest; 

21 and 

22 (B) any entity that is otherwise controlled 

23 by the Government of Iran. 

24 (4) EXPORT ADMINISTRATION REGULATIONS.— 

25 The term ‘‘Export Administration Regulations’’ 


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1 means the Export Administration Regulations as 

2 maintained and amended under the authority of the 

3 International Emergency Economic Powers Act and 

4 codified, as of the date of the enactment of this Act, 

5 in subchapter C of chapter VII of title 15, Code of 

6 Federal Regulations. 

7 (5) GOVERNMENT.—The term ‘‘government’’ 

8 includes any agency or instrumentality of a govern9 ment. 

10 (6) IRAN.—The term ‘‘Iran’’ includes any agen11 cy or instrumentality of Iran. 

12 (7) STATE SPONSOR OF TERRORISM.—The term 

13 ‘‘state sponsor of terrorism’’ means any country the 

14 government of which the Secretary of State has de15 termined has repeatedly provided support for acts of 

16 international terrorism pursuant to— 

17 (A) section 6(j)(1)(A) of the Export Ad18 ministration Act of 1979 (50 U.S.C. App. 

19 2405(j)(1)(A)) (or any successor thereto); 

20 (B) section 40(d) of the Arms Export Con21 trol Act (22 U.S.C. 2780(d)); or 

22 (C) section 620A(a) of the Foreign Assist23 ance Act of 1961 (22 U.S.C. 2371(a)). 

24 (8) TRANSSHIPMENT, REEXPORTATION, OR DI25 VERSION.—The term ‘‘transshipment, reexportation, 


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50 

•HR 3515 IH

1 or diversion’’ means the exportation, directly or indi2 rectly, of items that originated in the United States 

3 to an end-user whose identity cannot be verified or 

4 to an entity owned or controlled by the Government 

5 of Iran in violation of the laws or regulations of the 

6 United States by any means, including by— 

7 (A) shipping such items through one or 

8 more foreign countries; or 

9 (B) using false information regarding the 

10 country of origin of such items. 

Æ 


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