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 Regu-
lations, 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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Export Control Improvements Act’’. 
(b) TABLE OF CONTENTS.—The table of contents of 
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 Di-
version 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 coun-
tries and entities of concern. 
Sec. 225. Definitions. 
TITLE 
I—IMPROVEMENTS 
IN 
ELECTRONIC FILING OF EX-
PORT DATA 
SEC. 101. SHORT TITLE. 
This title may be cited as the ‘‘Securing Exports 
Through Coordination and Technology Act’’. 
SEC. 102. CONFERENCES; REGISTRATION FOR FILERS; NO-
TIFICATIONS; FEES. 
Chapter 9 of title 13, United States Code, is amend-
ed— 
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(1) by redesignating sections 302 through 307 
as sections 306 through 311, respectively; and 
(2) by inserting after section 301 the following 
new sections: 
‘‘§ 302. Conferences and seminars 
‘‘(a) MANDATORY CONFERENCE PARTICIPATION.— 
The Secretary shall work with the Secretary of State, the 
Secretary of Defense, the Secretary of Homeland Security, 
and the Secretary of the Treasury to ensure that appro-
priate personnel of each of their respective departments 
and agencies that are involved in the regulation of exports 
or the enforcement of such regulation are made available, 
subject to the availability of such personnel, to participate 
in fora the purpose of which is to educate exporters about 
laws and regulations of the United States governing ex-
ports and about the Automated Export System in par-
ticular, including through seminars, educational or train-
ing meetings, exhibitions, symposiums, and other similar 
meetings. 
‘‘(b) AUTHORITY TO COLLECT FEES.—The Sec-
retary may collect fees from any individual or other person 
attending or participating in any forum described in sub-
section (a) that is conducted by, or jointly with, the De-
partment of Commerce. The Secretary may use contrac-
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tors to collect such fees. Fees under this subsection may 
be collected in advance of the forum. 
‘‘(c) DISPOSITION OF COLLECTED FEES.—Amounts 
collected under subsection (b) shall be used to pay all or 
part of the cost of fora described in subsection (a), and 
shall be credited to the account from which the costs of 
such fora have been paid or will be paid. 
‘‘(d) BUDGET FOR PARTICIPATING AGENCIES.—In 
the case of any agency that does not have the available 
funds to participate in a forum under subsection (a), the 
Secretary shall make such sums available, from fees col-
lected under subsection (b), as are necessary to allow such 
participation by the agency. 
‘‘(e) AVAILABILITY OF MATERIALS TO THE PUB-
LIC.—The Secretary shall make available to the public, in-
cluding through its public website, relevant materials pro-
vided for the fora held under subsection (a). 
‘‘§ 303. Automated Export System registrations for fil-
ers 
‘‘(a) REGISTRATIONS.— 
‘‘(1) IN GENERAL.—The Secretary may estab-
lish a registration program for agents to file infor-
mation in the Automated Export System on behalf 
of the United States principal party in interest or 
the foreign principal party in interest. Such registra-
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tion program may include authorization for individ-
uals to file as well as any corporation, association, 
or partnership that is organized under the laws of 
the United States or of any State, the District of 
Columbia, or any commonwealth, territory, or pos-
session of the United States. 
‘‘(2) QUALIFICATIONS FOR INDIVIDUALS.—The 
Secretary may establish qualification requirements 
for an individual seeking to register under the pro-
gram, except that an individual may be so registered 
only if the individual is a United States citizen, an 
alien lawfully admitted for permanent residence to 
the United States, or a national of the United States 
(in the case of a resident of a territory or possession 
of the United States). In assessing the qualification 
of an applicant for registration, the Secretary may 
conduct an examination to determine the applicant’s 
knowledge of the Automated Export System and 
laws, regulations, and procedures related to the ex-
port of goods from the United States, and may re-
quire participation in a continuing education pro-
gram on a periodic basis. The Secretary may also 
obtain information to determine an applicant’s fit-
ness and character to act as an Automated Export 
System filer. An individual who meets the require-
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ments for registration under this paragraph shall be 
issued an Automated Export System registration. 
‘‘(3) QUALIFICATIONS FOR CORPORATIONS AND 
OTHER BUSINESS ENTITIES.— 
‘‘(A) REQUIREMENTS.—A corporation, as-
sociation, or partnership may be registered 
under this subsection only if at least one official 
of the corporation or association who is des-
ignated by the corporation or association, or 
one member of the partnership, who is author-
ized to act on behalf of the corporation, associa-
tion, or partnership, as the case may be— 
‘‘(i) holds a valid Automated Export 
System registration under paragraph (2); 
‘‘(ii) is responsible for the supervision 
and control of filing Shipper’s Export Dec-
laration information in the Automated Ex-
port System; and 
‘‘(iii) is a United States citizen, an 
alien lawfully admitted for permanent resi-
dence to the United States, or a national 
of the United States (in the case of a resi-
dent of a territory or possession of the 
United States). 
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‘‘(B) 
ADDITIONAL
REGISTRATION
RE-
QUIREMENTS.—The Secretary may establish 
such other registration requirements for cor-
porations, associations, and partnerships as the 
Secretary considers appropriate. A corporation, 
association, or partnership that meets the re-
quirements for registration under this para-
graph shall be issued an Automated Export 
System registration. 
‘‘(4) FEDERAL
MARITIME
COMMISSION
LI-
CENSES.—An ocean transportation intermediary 
(OTI) license issued by the Federal Maritime Com-
mission may be used to satisfy the initial qualifica-
tion requirements of the registration program under 
this subsection, if the Federal Maritime Commission 
maintains sufficient requirements with respect to 
such license, as determined by the Secretary. 
‘‘(5) LAPSE OF REGISTRATION.—Registrations 
under this subsection shall be granted for a period 
of not less than 3 years, and may be renewed in 
such manner and under such conditions as are es-
tablished by the Secretary. 
‘‘(b) DENIAL, SUSPENSION, OR REVOCATION
OF 
REGISTRATION.— 
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‘‘(1) GENERAL RULE.—The Secretary may re-
voke or suspend a registration or deny an applica-
tion for registration under subsection (a), which may 
take effect immediately, if the Secretary has reason 
to believe that the registrant or applicant has vio-
lated or will violate any regulations issued under this 
section or any law or regulation of the United States 
controlling exports. The Secretary may provide rules 
for notifying registrants and registration applicants 
of the process for revoking or suspending a registra-
tion or denying an application, consistent with the 
need to protect national security. 
‘‘(2) PROCEDURES FOR DENIAL, REVOCATION, 
OR SUSPENSION.— 
‘‘(A) IN GENERAL.—If a registration is re-
voked or suspended or an application is denied 
under paragraph (1), the Secretary shall send 
the registrant or applicant notice in writing spe-
cifically setting forth the grounds for suspen-
sion, revocation, or denial, shall allow the reg-
istrant or applicant a period of 30 calendar 
days beginning on the date on which the notice 
is received to respond in writing, and shall ad-
vise the registrant or applicant of the right to 
a hearing. A registrant or applicant may re-
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‘‘(C) 
SUSPENSION
OF
REGISTRATION 
PENDING APPEAL.—In a case in which a person 
appeals a decision revoking or suspending a 
registration under this subsection, including an 
appeal under subsection (c), the Secretary may 
order that the registration continue to be sus-
pended while the appeal is pending. 
‘‘(3) SETTLEMENT
AND
COMPROMISE.—The 
Secretary may settle and compromise any proceeding 
that has been instituted under this subsection ac-
cording to the terms and conditions agreed to by the 
parties, including the reduction of any proposed sus-
pension or revocation. 
‘‘(4) LIMITATION OF ACTIONS.—The Secretary 
may revoke or suspend a registration or deny an ap-
plication for registration under this subsection only 
if the appropriate service of written notice is made 
under paragraph (2)(A) within 5 years after the 
date on which the alleged act described in paragraph 
(1) was committed, except that if the alleged act 
consists of fraud, the 5-year period shall begin on 
the date on which the alleged act was discovered. 
‘‘(c) JUDICIAL APPEAL.— 
‘‘(1) IN GENERAL.—A registrant under this sec-
tion, or an applicant for a registration under this 
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section, may appeal any decision of the administra-
tive law judge under subsection (b) suspending or 
revoking the registration or denying the application 
by filing in the appropriate United States district 
court, within 60 days after the date on which the de-
cision is issued, a written petition requesting that 
the decision be modified or set aside in whole or in 
part. A copy of the petition shall be served upon the 
Secretary. In cases involving revocation or suspen-
sion of a registration, the Secretary, after receiving 
the petition, shall file in the court the record upon 
which the decision complained of was entered. 
‘‘(2) FAILURE TO APPEAL.—If an appeal is not 
filed within the time limits specified in paragraph 
(1), the decision of the administrative law judge 
under subsection (b) shall be final and conclusive. 
‘‘(d) REGULATIONS.—The Secretary shall provide a 
period of at least 90 days for the submission of public 
comments on any regulations issued to carry out this sec-
tion, before such regulations may become effective. 
‘‘§ 304. Notification of relevant export requirements 
‘‘(a) IN GENERAL.—The Secretary, with the concur-
rence of the heads of the relevant departments and agen-
cies, shall ensure that the Automated Export System will 
identify the filing of data in connection with an export 
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from the United States if the country of destination of 
intended export or the export control information, or lack 
thereof, would result in a violation of any prohibition or 
restriction on exports under the laws and regulations of 
the United States. 
‘‘(b) SUFFICIENCY
AND TIMELINESS
OF EXPORT 
CONTROL INFORMATION IN THE AUTOMATED EXPORT 
SYSTEM.—Not later than 1 year after the date of the en-
actment of the Securing Exports Through Coordination 
and Technology Act, the Secretary, with the concurrence 
of the heads of the relevant departments and agencies and 
in consultation with representatives of affected industries 
and nongovernmental organizations with relevant exper-
tise, shall— 
‘‘(1) ensure on an ongoing basis that changes 
in laws and regulations controlling exports from the 
United States are reflected in the Automated Export 
System upon implementation of those changes; 
‘‘(2) enable on an ongoing basis the classifica-
tion of products to be exported in a manner suffi-
cient to carry out the purposes of this section; and 
‘‘(3) ensure on an ongoing basis that all lists 
maintained by the United States and comprised of 
persons or entities to whom exports are restricted 
are available in a standardized format and contain 
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sufficient descriptive information to enable their ef-
fective use by exporters (through the Automated Ex-
port System or otherwise) to screen transactions and 
prevent diversions of exported items for unauthor-
ized destinations, parties, or uses. 
‘‘(c) MINIMUM
REQUIREMENTS.—The Secretary, 
with the concurrence of the heads of the relevant depart-
ments and agencies and in consultation with representa-
tives of affected industries and nongovernmental organiza-
tions with relevant expertise, shall ensure that the Auto-
mated Export System contains at least the following oper-
ational features: 
‘‘(1) The Automated Export System will proc-
ess data filed in connection with an export and will 
alert the filer to export license requirements under 
the laws and regulations of the United States. 
‘‘(2) If the data filed that is associated with the 
export does not satisfy requirements under the ex-
port control laws and regulations of the United 
States, the Automated Export System will issue no-
tices, compliance alerts, and other warnings, as ap-
propriate, that the transaction may not satisfy ex-
port requirements, accompanied by references to the 
applicable authorities. 
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‘‘(3) The Automated Export System will retain 
records of actions of users while filing export data. 
‘‘(d) CONSTRUCTION.—Nothing in this section shall 
be construed to authorize an export solely because the 
Automated Export System accepts the filing of data. 
‘‘§ 305. Fees and charges 
‘‘The Secretary may issue regulations prescribing 
reasonable fees and charges, with particular sensitivity to 
small businesses, to defray the costs of the Secretary in 
carrying out this chapter.’’. 
SEC. 103. DEFINITIONS. 
Chapter 9 of title 13, United States Code, is amended 
by adding at the end the following new section: 
‘‘§ 312. Definitions 
‘‘In this chapter: 
‘‘(1) AUTOMATED EXPORT SYSTEM.—The term 
‘Automated Export System’ means the automated 
and electronic system for filing export information 
established under this chapter. 
‘‘(2) RELEVANT
DEPARTMENTS
AND
AGEN-
CIES.—The term ‘relevant departments and agen-
cies’ means the Department of State, the Depart-
ment of Defense, the Department of Homeland Se-
curity, and the Department of the Treasury. 
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‘‘(3) SHIPPER’S
EXPORT
DECLARATION.—The 
term ‘Shipper’s Export Declaration’ means the ex-
port information filed under this chapter.’’. 
SEC. 104. CONFORMING AMENDMENTS. 
(a) REGULATIONS, ORDERS, ETC.—Section 306 of 
title 13, United States Code, as redesignated by section 
102(1) of this Act, is amended by striking the last sen-
tence and inserting ‘‘The Secretary shall make rules, regu-
lations, and orders, and amendments thereto, with the 
concurrence of the Secretary of Homeland Security.’’. 
(b) CROSS REFERENCES.—Section 309 of title 13, 
United States Code, as redesignated by section 102(1) of 
this Act, is amended— 
(1) in subsection (b), by striking ‘‘304’’ and in-
serting ‘‘308’’; and 
(2) in subsection (c)— 
(A) in paragraph (1), by striking ‘‘304’’ 
and inserting ‘‘308’’; 
(B) in paragraph (4), by striking ‘‘306’’ 
and inserting ‘‘310’’; and 
(C) in paragraph (5), by striking ‘‘304’’ 
and inserting ‘‘308’’. 
(c) TABLE OF CONTENTS.—The table of contents for 
chapter 9 of title 13, United States Code, is amended to 
read as follows: 
‘‘301. Collection and publication. 
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