I 
112TH CONGRESS 
1ST SESSION H. R. 2122 
To renew the Export Administration Act of 1979, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 3, 2011 
Ms. ROS-LEHTINEN (for herself, Mr. ROYCE, Mr. BURTON of Indiana, and 
Mr. CHABOT) introduced the following bill; which was referred to the 
Committee on Foreign Affairs 
A BILL 
To renew the Export Administration Act of 1979, 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. 
This Act may be cited as the ‘‘Export Administration 
Renewal Act of 2011’’. 
TITLE I—EXPORT 
ADMINISTRATION ACT OF 1979 
SEC. 101. VIOLATIONS. 
(a) CRIMINAL PENALTIES.—Section 11 of the Export 
Administration Act of 1979 (50 U.S.C. App. 2410) is 
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amended by striking subsections (a) and (b) and inserting 
the following: 
‘‘(a) CRIMINAL PENALTIES.— 
‘‘(1) VIOLATIONS BY AN INDIVIDUAL.—Any in-
dividual who willfully violates, conspires to violate, 
attempts to violate, or aids or abets in the commis-
sion of a violation of any provision of this Act or any 
regulation, license, or order issued under this Act 
shall be fined not more than $1,000,000, imprisoned 
for not more than 20 years, or both, for each viola-
tion. 
‘‘(2) VIOLATIONS BY A PERSON OTHER THAN 
AN INDIVIDUAL.—Any person, other than an indi-
vidual, who willfully violates, conspires to violate, at-
tempts to violate, or aids or abets in the commission 
of a violation of any provision of this Act or any reg-
ulation, license, or order issued under this Act shall 
be fined not more than 10 times the value of the ex-
ports involved or $5,000,000, whichever amount is 
greater, for each violation. 
‘‘(b) REGULATORY AUTHORITY NOT AFFECTED.— 
Nothing in subsection (a) limits the authority of the Sec-
retary to define by regulations violations under this Act.’’. 
(b) CIVIL PENALTIES.—Section 11(c)(1) of the Ex-
port Administration Act of 1979 (50 U.S.C. 2410(c)(1)) 
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is amended to read as follows: ‘‘(1) The Secretary may 
impose a civil penalty for each violation of this Act, or 
any regulation, license, or order issued under this Act, in 
an amount not to exceed the greater of $250,000, or an 
amount that is twice the value of the transaction that is 
the basis of the violation. A civil penalty under this para-
graph may be in addition to, or in lieu of, any other liabil-
ity or penalty that may be imposed for such a violation.’’ 
(c) FORFEITURE.—Section 11(g) of the Export Ad-
ministration Act of 1979 (50 U.S.C. App. 2410) is amend-
ed to read as follows: 
‘‘(g) FORFEITURE
OF PROPERTY INTEREST
AND 
PROCEEDS.— 
‘‘(1) CRIMINAL FORFEITURE.—Any person who 
is convicted of a violation under paragraph (1) or 
(2) of subsection (a) shall, in addition to any other 
penalty, forfeit to the United States such person’s— 
‘‘(A) security or other interest in, claim 
against, or property or contractual rights of any 
kind in, the real or personal property that was 
the subject of the violation; 
‘‘(B) interest in any property, real or per-
sonal, constituting or traceable to gross profits 
or other proceeds obtained from the violation; 
and 
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‘‘(C) interest in any property, real or per-
sonal, used or intended to be used to commit or 
to promote the commission of the violation. 
‘‘(2) CIVIL
FORFEITURE.—Any person con-
victed of a violation under subsection (a), or subject 
to a civil penalty as set forth in subsection (c), shall 
forfeit to the United States such person’s interest 
in— 
‘‘(A) any security or other interest in, 
claim against, or property or contractual rights 
of any kind in, the real or personal property 
that was the subject of the violation; 
‘‘(B) any property, real or personal, consti-
tuting or traceable to gross profits or other pro-
ceeds obtained because of the act or acts consti-
tuting the violation; and 
‘‘(C) any property, real or personal, used 
or intended to be used to commit or to promote 
the commission of the violation. 
‘‘(3) PROCEDURES.—Forfeiture under this sub-
section shall be carried out in accordance with the 
procedures set forth in chapter 46 of title 18, United 
States Code.’’. 
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(d) TEMPORARY DENIAL ORDERS.—Section 11 of 
the Export Administration Act of 1979 (50 U.S.C. App. 
2410) is amended— 
(1) by redesignating subsection (i) as subsection 
(j); 
(2) by inserting after subsection (h) the fol-
lowing: 
‘‘(i) IMPOSITION OF TEMPORARY DENIAL ORDERS.— 
‘‘(1) AUTHORITY OF THE SECRETARY.—In any 
case in which it is necessary, in the public interest, 
to prevent an imminent violation of this Act or any 
regulation, order, or license issued under this Act, 
the Secretary may, without a hearing, issue an order 
temporarily denying United States export privileges 
(in this subsection referred to as a ‘temporary denial 
order’) to a person. A temporary denial order may 
be effective no longer than 180 days unless renewed 
in writing by the Secretary for additional 180-day 
periods in order to prevent such an imminent viola-
tion, except that a temporary denial order may be 
renewed only after notice and an opportunity for a 
hearing is provided. The Secretary shall publish no-
tice of the issuance of a temporary denial order in 
the Federal Register and may provide notice of the 
issuance of the order to the person that is the sub-
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ject of the order by such additional means as the 
Secretary considers appropriate. 
‘‘(2) PROCEDURES.—A temporary denial order 
shall define the imminent violation and state why 
the temporary denial order was granted without a 
hearing. The person or persons subject to the 
issuance or renewal of a temporary denial order may 
file an appeal of the issuance or renewal of the tem-
porary denial order with an administrative law judge 
who shall, within 10 working days after the appeal 
is filed, recommend that the temporary denial order 
be affirmed, modified, or vacated. Parties may sub-
mit briefs and other material to the judge. The rec-
ommendation of the administrative law judge shall 
be submitted to the Secretary who shall either ac-
cept, reject, or modify the recommendation by writ-
ten order within 5 working days after receiving the 
recommendation. The written order of the Secretary 
under the preceding sentence shall be final and is 
not subject to judicial review, except as provided in 
paragraph (3). The temporary denial order shall be 
affirmed only if it is reasonable to believe that the 
order is required in the public interest to prevent an 
imminent violation of this Act or any regulation, 
order, or license issued under this Act. All materials 
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submitted to the administrative law judge and the 
Secretary shall constitute the administrative record 
for purposes of review by the courts. 
‘‘(3) APPEALS.—An order of the Secretary af-
firming, in whole or in part, the issuance of a tem-
porary denial order may, within 15 days after the 
order is issued, be appealed by a person subject to 
the order to the United States Court of Appeals for 
the District of Columbia Circuit, which shall have 
jurisdiction of the appeal. The court may review only 
those issues necessary to determine whether the 
standard for issuing the temporary denial order has 
been met. The court shall vacate the Secretary’s 
order if the court finds that the Secretary’s order is 
arbitrary, capricious, an abuse of discretion, or oth-
erwise not in accordance with law.’’; and 
(3) in subsection (j), as redesignated, by strik-
ing ‘‘or (h)’’ and inserting ‘‘(h), or (i)’’. 
(e) CONFORMING AMENDMENTS.—Section 13 of the 
Export Administration Act of 1979 (50 U.S.C. App. 2412) 
is amended— 
(1) by striking subsection (d); and 
(2) by redesignating subsection (e) as sub-
section (d). 
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(f) EFFECTIVE DATE.—The amendments made by 
this section apply with respect to acts constituting viola-
tions under section 11 of the Export Administration Act 
of 1979 that occur on or after the date of the enactment 
of this Act. 
SEC. 102. ENFORCEMENT. 
(a) FINDINGS.—The Congress finds the following: 
(1) On July 1, 2010, the Comprehensive Iran 
Sanctions, Accountability, and Divestment Act of 
2010 (Public Law 111–195) was signed into law by 
the President of the United States. 
(2) Section 305 of that Act provides the De-
partment of Commerce with the authority to enforce 
the provisions of that Act as well as the Export Ad-
ministration Act of 1979. 
(3) Statutory authority to conduct investiga-
tions overseas, as well as undercover authority, is 
necessary for the Office of Export Enforcement of 
the Department of Commerce to combat increasingly 
complex international proliferation activities involv-
ing Iran and other hostile state and non-state ac-
tors. 
(b) ENFORCEMENT AUTHORITY.—Section 12 of the 
Export Administration Act of 1979 (50 U.S.C. App. 2411) 
is amended— 
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(1) in subsection (a)— 
(A) in paragraph (1), in the first sentence, 
by striking ‘‘within the United States, and’’ and 
inserting ‘‘within the United States, the Sec-
retary of Commerce (and officers and employees 
of the Department of Commerce specifically 
designated by the Secretary of Commerce) may 
conduct investigations outside of the United 
States and, in addition,’’; 
(B) by striking paragraph (6) and redesig-
nating paragraphs (7) and (8) as paragraphs 
(6) and (7), respectively; and 
(C) in paragraph (7) (as redesignated) by 
inserting before the period the following: ‘‘, and 
the enforcement or a violation of the Export 
Administration Regulations as maintained and 
amended under the authority of the Inter-
national Emergency Economic Powers Act (50 
U.S.C. 1701 et seq.)’’; and 
(2) by adding at the end the following new sub-
sections: 
‘‘(f) FORFEITURE.— 
‘‘(1) IN GENERAL.—Any tangible items lawfully 
seized under subsection (a) by designated officers or 
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employees shall be subject to forfeiture to the United 
States. 
‘‘(2) PROCEDURES.—Any seizure or forfeiture 
under this subsection shall be carried out in accord-
ance with the procedures set forth in chapter 46 of 
title 18, United States Code. 
‘‘(g) UNDERCOVER INVESTIGATION OPERATIONS.— 
‘‘(1) USE OF FUNDS.—With respect to any un-
dercover investigative operation conducted by the Of-
fice of Export Enforcement of the Department of 
Commerce that is necessary for the detection and 
prosecution of violations under this Act— 
‘‘(A) funds made available for export en-
forcement under this Act may be used to pur-
chase property, buildings and other facilities, 
and to lease equipment, conveyances, and space 
within the United States, without regard to sec-
tions 1341 and 3324 of title 31, United States 
Code, section 8141 of title 40, United States 
Code, and sections 3901(a), 3903, 4501 
through 4506, 4706, 6301(a), and 6306 of title 
41, United States Code; 
‘‘(B) funds made available for export en-
forcement under this Act may be used to estab-
lish or to acquire proprietary corporations or 
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business entities as part of an undercover oper-
ation, and to operate such corporations or busi-
ness entities on a commercial basis, without re-
gard to sections 1341, 3324, and 9102 of title 
31, United States Code; 
‘‘(C) funds made available for export en-
forcement under this Act and the proceeds from 
undercover operations may be deposited in 
banks or other financial institutions without re-
gard to section 648 of title 18, United States 
Code, and section 3302 of title 31, United 
States Code; and 
‘‘(D) the proceeds from undercover oper-
ations may be used to offset necessary and rea-
sonable expenses incurred in such operations 
without regard to section 3302 of title 31, 
United States Code, if the Secretary (or the 
Secretary’s designee) certifies, in writing, that 
the action authorized by subparagraph (A), (B), 
or (C) for which the funds would be used is 
necessary for the conduct of the undercover op-
eration. 
‘‘(2) DISPOSITION OF BUSINESS ENTITIES.—If 
a corporation or business entity established or ac-
quired as part of an undercover operation has a net 
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value of more than $250,000 and is to be liquidated, 
sold, or otherwise disposed of, the Secretary shall re-
port the circumstances to the Comptroller General of 
the United States as much in advance of such dis-
position as the Secretary determines is practicable. 
The proceeds of the liquidation, sale, or other dis-
position, after obligations incurred by the corpora-
tion or business entity are met, shall be deposited in 
the Treasury of the United States as miscellaneous 
receipts. Any property or equipment purchased pur-
suant to paragraph (1)(A) may be retained for sub-
sequent use in undercover operations under this sub-
section. When such property or equipment is no 
longer needed, it shall be considered as surplus and 
disposed of as surplus government property. 
‘‘(3) DEPOSIT OF PROCEEDS.—As soon as the 
proceeds from an undercover investigative operation 
of the Office of Export Enforcement of the Depart-
ment of Commerce with respect to which an action 
is authorized and carried out under this subsection 
are no longer needed for the conduct of such oper-
ation, the proceeds or the balance of the proceeds re-
maining at the time shall be deposited into the 
Treasury of the United States as miscellaneous re-
ceipts. 
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‘‘(4) AUDIT AND REPORT.— 
‘‘(A) AUDIT.—The Secretary shall conduct 
a detailed financial audit of each closed under-
cover operation of the Office of Export Enforce-
ment of the Department of Commerce. Not 
later than 180 days after an undercover oper-
ation is closed, the Secretary shall submit to 
the Congress a report on the results of that 
audit. 
‘‘(B) REPORT.—The Secretary shall sub-
mit annually to the Congress a report, which 
may be included in the annual report under sec-
tion 14(a), including the following information: 
‘‘(i) The number of undercover inves-
tigative operations pending as of the end of 
the period for which the report is sub-
mitted. 
‘‘(ii) The number of undercover inves-
tigative operations commenced in the 1- 
year period preceding the period for which 
the report is submitted. 
‘‘(iii) The number of undercover in-
vestigative operations closed in the 1-year 
period preceding the period for which such 
report is submitted and, with respect to 
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each such closed undercover operation, the 
results obtained and any civil claims made 
with respect to such operation. 
‘‘(C) DEFINITIONS.—In this paragraph: 
‘‘(i) CLOSED.—The term ‘closed’, with 
respect to an undercover investigative oper-
ation, refers to the earliest point in time at 
which all criminal proceedings (other than 
appeals) pursuant to the investigative oper-
ation are concluded, or covert activities 
pursuant to such operation are concluded, 
whichever occurs later. 
‘‘(ii) 
UNDERCOVER
INVESTIGATIVE 
OPERATION
AND
UNDERCOVER
OPER-
ATION.— 
‘‘(I) IN
GENERAL.—Subject to 
subclause (II), the terms ‘undercover 
investigative operation’ and ‘under-
cover operation’ mean any undercover 
investigative operation conducted by 
the Office of Export Enforcement of 
the Department of Commerce in 
which the gross receipts (excluding in-
terest earned) exceed $25,000, or ex-
penditures (other than expenditures 
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for salaries of employees) exceed 
$75,000. 
‘‘(II) EXCEPTION.—The report 
to Congress required by subparagraph 
(B) shall be made with respect to un-
dercover investigative operations con-
ducted by the Office of Export En-
forcement of the Department of Com-
merce without regard to the gross re-
ceipts and expenditures limitations 
under subclause (I). 
‘‘(h) AUTHORIZATION FOR BUREAU OF INDUSTRY 
AND SECURITY.—The Secretary may authorize, without 
fiscal year limitation, the expenditure of funds transferred 
to, paid to, received by, or made available to the Bureau 
of Industry and Security of the Department of Commerce 
as a reimbursement in accordance with section 9703 of 
title 31, United States Code (as added by Public Law 
102–393).’’. 
(c) EFFECTIVE DATE.— 
(1) IN GENERAL.—Subject to paragraphs (2) 
and (3), the amendments made by subsection (a) 
shall take effect on the date of the enactment of this 
Act. 
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(2) FORFEITURE.—Section 12(f) of the Export 
Administration Act of 1979, as added by subsection 
(a)(2) of this section, shall apply to items seized on 
or after the date of the enactment of this Act. 
(3) UNDERCOVER OPERATIONS.—Section 12(g) 
of the Export Administration Act of 1979, as added 
by subsection (a)(2) of this section, shall apply with 
respect to undercover investigative operations com-
menced on or after the date of the enactment of this 
Act. 
SEC. 103. ADMINISTRATIVE AND REGULATORY AUTHORITY. 
Section 15 of the Export Administration Act of 1979 
(50 U.S.C. App. 2414) is amended— 
(1) in subsection (a), in the first sentence— 
(A) by striking ‘‘Under Secretary of Com-
merce for Export Administration’’ and inserting 
‘‘Under Secretary of Commerce for Industry 
and Security’’; and 
(B) by striking ‘‘such other statutes’’ and 
all that follows through the end of the sentence 
and in inserting ‘‘other statutes that the Sec-
retary has delegated to the Under Secretary of 
Commerce for Industry and Security or any 
predecessor (including the Under Secretary of 
Commerce for Export Administration and the 
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Assistant Secretary of Commerce for Trade Ad-
ministration) as of the date of the enactment of 
the Export Administration Renewal Act of 
2011, or may delegate to the Under Secretary 
of Commerce for Industry and Security on or 
after that date.’’; 
(2) in subsection (b)— 
(A) by striking ‘‘the President and the 
Secretary’’ and inserting— 
‘‘(1) IN GENERAL.—The President and the Sec-
retary’’; and 
(B) by adding at the end the following: 
‘‘(2) ADVANCE
NOTICE
TO
CONGRESS.—Any 
significant regulations issued pursuant to this Act 
shall be provided to the Committee on Foreign Af-
fairs of the House of Representatives and the Com-
mittee on Banking, Housing, and Urban Affairs of 
the Senate not less than 30 days in advance of the 
publication of the regulations in the Federal Reg-
ister, unless exigent circumstances require the Sec-
retary to shorten that 30-day period.’’; and 
(3) in subsection (c)— 
(A) by inserting after the first sentence the 
following: ‘‘The Secretary shall submit the re-
port under the preceding sentence not less than 
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30 days in advance of the publication of the 
proposed amendments in the Federal Register, 
unless exigent circumstances require the Sec-
retary to shorten that 30-day period.’’; and 
(B) in the succeeding sentence, by striking 
‘‘evaluate the cost and burden to United States 
exporters’’ and inserting ‘‘include the text of 
the proposed amendments, as well as evaluate 
the economic and national security impact on 
the United States’’. 
SEC. 104. AUTHORIZATION OF APPROPRIATIONS. 
Section 18(b) of the Export Administration Act of 
1979 (50 U.S.C. App. 2417(b)) is amended— 
(1) by striking paragraphs (1) and (2) and in-
serting the following: 
‘‘(1) $100,141,000 for fiscal year 2012; 
$101,643,115 for fiscal year 2013; $103,167,647 for 
fiscal year 2014; and $104,926,000 for fiscal year 
2015; and’’; and 
(2) by redesignating paragraph (3) as para-
graph (2). 
SEC. 105. TERMINATION DATE. 
Section 20 of the Export Administration Act of 1979 
(50 U.S.C. App. 2419) is amended to read as follows: 
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‘‘TERMINATION DATE 
‘‘SEC. 20. The authority granted by this Act termi-
nates on September 30, 2015, except that the authority 
granted by sections 11 and 12 shall not terminate.’’. 
SEC. 106. FOREIGN POLICY CONTROLS. 
(a) TERRORIST STATES.—Section 6(j)(4) of the Ex-
port Administration Act of 1979 (50 U.S.C. App. 
2405(j)(4)) is amended— 
(1) in the matter preceding subparagraph (A), 
by striking ‘‘the Speaker’’ and inserting ‘‘the chair-
man of the Committee on Foreign Affairs’’; and 
(2) in subparagraph (B)— 
(A) in clause (i), by striking ‘‘6-month pe-
riod; and’’ and inserting ‘‘36-month period;’’; 
(B) in clause (ii), by striking the period at 
the end and inserting a semicolon; and 
(C) by adding after clause (ii) the fol-
lowing: 
‘‘(iii) that government is not a ‘country of 
proliferation concern’ as defined in section 
1055(g)(2) of the National Defense Authoriza-
tion Act for Fiscal Year 2010 (50 U.S.C. 
2371(g)(2)); and 
‘‘(iv) that government has provided assur-
ances that it will not knowingly facilitate, di-
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rectly or indirectly, the proliferation of nuclear 
materials, items, or technology in the future.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) FOREIGN ASSISTANCE ACT OF 1961.—Sec-
tion 620A(c) of the Foreign Assistance Act of 1961 
(22 U.S.C. 2371(c)) is amended— 
(A) in the matter preceding paragraph (1), 
by striking ‘‘the Speaker’’ and inserting ‘‘the 
chairman of the Committee on Foreign Af-
fairs’’; and 
(B) in paragraph (2)— 
(i) in subparagraph (A), by striking 
‘‘6-month period; and’’ and inserting ‘‘36- 
month period;’’; 
(ii) in subparagraph (B), by striking 
the period at the end and inserting a semi-
colon; and 
(iii) by adding after subparagraph (B) 
the following: 
‘‘(C) that government is not a ‘country of 
proliferation concern’ as defined in section 
1055(g)(2) of the National Defense Authoriza-
tion Act for Fiscal Year 2010 (50 U.S.C. 
2371(g)(2)); and 
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‘‘(D) that government has provided assur-
ances that it will not knowingly facilitate, di-
rectly or indirectly, the proliferation of nuclear 
materials, items, or technology in the future.’’. 
(2) ARMS
EXPORT
CONTROL
ACT.—Section 
40(f)(1) of the Arms Export Control Act (22 U.S.C. 
2780(f)(1)) is amended— 
(A) in the matter preceding subparagraph 
(A), by striking ‘‘the Speaker’’ and inserting 
‘‘the chairman of the Committee on Foreign Af-
fairs’’; and 
(B) in subparagraph (B)— 
(i) in clause (i), by striking ‘‘6-month 
period; and’’ and inserting ‘‘36-month pe-
riod;’’; 
(ii) in clause (ii), by striking the pe-
riod at the end and inserting a semicolon; 
and 
(iii) by adding after clause (ii) the fol-
lowing: 
‘‘(iii) that government is not a ‘country of 
proliferation concern’ as defined in section 
1055(g)(2) of the National Defense Authoriza-
tion Act for Fiscal Year 2010 (50 U.S.C. 
2371(g)(2)); and 
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‘‘(iv) that government has provided assur-
ances that it will not knowingly facilitate, di-
rectly or indirectly, the proliferation of nuclear 
materials, items, or technology in the future.’’. 
SEC. 107. TECHNICAL AND CONFORMING AMENDMENTS. 
(a) RENAMING OF UNDER SECRETARY.— 
(1) IN GENERAL.—Section 5(f)(6) of the Ex-
port Administration Act of 1979 (50 U.S.C. App. 
2404(f)(6)) is amended by striking ‘‘Under Sec-
retary of Commerce for Export Administration’’ and 
inserting ‘‘Under Secretary of Commerce for Indus-
try and Security’’. 
(2) CONFORMING AMENDMENT.—Section 5314 
of title 5, United States Code, is amended by strik-
ing ‘‘Under Secretary of Commerce for Export Ad-
ministration’’ and inserting ‘‘Under Secretary of 
Commerce for Industry and Security’’. 
(b) AMENDMENTS TO TITLE 31, UNITED STATES 
CODE.— 
(1) Section 9703(a) of title 31, United States 
Code (as added by Public Law 102–393), is amend-
ed, in the matter preceding paragraph (1), by strik-
ing ‘‘or the United States Coast Guard’’ and insert-
ing, ‘‘, the United States Coast Guard, or the Bu-
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reau of Industry and Security of the Department of 
Commerce’’. 
(2) Section 9703(o)(1) of title 31, United 
States Code (as added by Public Law 102–393) is 
amended by adding at the end the following: ‘‘In ad-
dition, for purposes of this section, the Bureau of 
Industry and Security of the Department of Com-
merce shall be considered to be a Department of the 
Treasury law enforcement organization.’’. 
(c) CIVIL
FORFEITURE
PROCEEDINGS.—Section 
983(i)(2) of title 18, United States Code, is amended— 
(1) by striking ‘‘or’’ at the end of subparagraph 
(D); 
(2) by striking the period at the end of sub-
paragraph (E) and inserting ‘‘; or’’; and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(F) the Export Administration Act of 
1979.’’. 
(d) CLERICAL AMENDMENT.—Paragraph (3) of sec-
tion 11A(k) of the Export Administration Act of 1979 (50 
U.S.C. App. 2410A(k)(3)) is amended— 
(1) by redesignating that paragraph as para-
graph (2); and 
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(2) by striking ‘‘paragraph (2)’’ and inserting 
‘‘paragraph (1)’’. 
(e) ANNUAL REPORT.—Section 14(a)(15) of the Ex-
port Administration Act of 1979 (50 U.S.C. App. 
2413(a)(15)) is amended by striking ‘‘the export licensing 
process and’’ and inserting export licensing, an assessment 
of the impact of licensing exemptions on licensing case-
loads, numbers of licensing officers, and the budget of the 
Bureau of Industry and Security, and efforts. 
SEC. 108. REPORTS BY COMPTROLLER GENERAL ON EX-
PORT CONTROL VULNERABILITIES. 
(a) IN GENERAL.—Not later than the date that is 
1 year, 2 years, and 3 years after the date of the enact-
ment of this Act, the Comptroller General of the United 
States shall submit to the appropriate congressional com-
mittees a report assessing any progress made in resolving 
export control issues identified by the Government Ac-
countability Office in— 
(1) its report (GAO–09–767T) entitled ‘‘Export 
Controls: Fundamental Reexamination of System Is 
Needed to Help Protect Critical Technologies’’, 
dated June 4, 2009; and 
(2) its report (GAO–11–278) entitled ‘‘High- 
Risk Series: An Update’’, dated February 16, 2011. 
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(b) APPROPRIATE CONGRESSIONAL COMMITTEES.— 
For purposes of subsection (a), the term ‘‘appropriate con-
gressional committees’’ means— 
(1) the Committee on Foreign Affairs and the 
Committee on Armed Services of the House of Rep-
resentatives; and 
(2) the Committee on Banking, Housing, and 
Urban Affairs, the Committee on Armed Services, 
and the Committee on Foreign Relations of the Sen-
ate. 
SEC. 109. EFFECTIVE DATE. 
Subject to sections 101(f) and 102(b), this title and 
the amendments made by this title shall take effect on 
the date of the enactment of this Act. 
TITLE II—CONTROL OF GENERIC 
PARTS AND COMPONENTS 
SEC. 201. TREATMENT OF GENERIC COMPONENTS OR 
PARTS. 
Section 38(a)(1) of the Arms Export Control Act (22 
U.S.C. 2778(a)(1)) is amended by adding at the end the 
following: ‘‘Nothing in this section shall be construed to 
require the President to include as a defense article any 
component, accessory, attachment, or part associated with 
any end-item included on the United States Munitions 
List, if such component, attachment, or part does not have 
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specialized or unique military or intelligence capability or 
significance such that control under the Arms Export Con-
trol Act is warranted.’’. 
SEC. 202. INTERAGENCY PROCESS FOR SUBSEQUENT CON-
TROL OF ITEMS REMOVED FROM U.S. MUNI-
TIONS LIST. 
(a) LEVEL OF EXPORT CONTROLS ON ITEMS RE-
MOVED FROM UNITED STATES MUNITIONS LIST.—If an 
item is removed from the United States Munitions List 
under section 38(f) of the Arms Export Control Act (22 
U.S.C. 2778(f)), the item may not be made subject to ex-
port controls that are less restrictive than the export con-
trols that are imposed on the item at the time it is re-
moved from the Munitions List, unless the President— 
(1) determines that such less restrictive controls 
are appropriate and in the national security and eco-
nomic interests of the United States; and 
(2) complies with the 30-day notification re-
quirement set forth in section 15(b)(2) of the Export 
Administration Act of 1979 with respect to the pro-
posed controls, together with a description of, and 
justification for, the less restrictive controls. 
(b) CONSENSUS
OF DEPARTMENT HEADS.—The 
President shall ensure, through interagency procedures or 
regulation, that when an item that is removed from the 
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United States Munitions List under section 38(f) of the 
Arms Export Control Act is subject to controls under the 
Export Administration Act of 1979, the Secretaries of 
State, Defense, and Commerce concur on all subsequent 
modifications to the export controls on the item. 
SEC. 203. EXPORTS TO CERTAIN COUNTRIES. 
(a) EXPORTS TO CHINA.— 
(1) PRESUMPTION OF DENIAL.—There shall be 
a presumption of denial of any application for a li-
cense or other approval to export to the People’s Re-
public of China any item that is removed from the 
United States Munitions List under section 38 of 
the Arms Export Control Act and is listed on the 
‘‘Very Sensitive List’’ or ‘‘Sensitive List’ ’’ of the 
Wassenaar Arrangement on Export Controls for 
Conventional Arms and Dual-Use Goods and Tech-
nologies. 
(2) WAIVER.—The President may waive the ap-
plication of paragraph (1) on a case-by-case basis if 
the President— 
(A) determines that the waiver is in the 
national security and economic interest of the 
United States; and 
(B) at least 15 days before the waiver is 
to take effect, the President submits to the 
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Committee on Foreign Affairs of the House of 
Representatives and the Committees on Bank-
ing, Finance, and Urban Affairs and on For-
eign Relations of the Senate a report describing 
the reasons for the waiver. 
(b) EXPORTS TO CERTAIN COUNTRIES.—An applica-
tion for a license or other approval to export any item that 
is removed from the United States Munitions List under 
section 38 of the Arms Export Control Act for export to 
any country or end-user that is subject to section 126.1 
of title 22, Code of Federal Regulations (and any suc-
cessor regulations), or to a multilateral arms embargo 
under the United Nations Security Council shall be de-
nied. 
SEC. 204. EFFECTIVE DATE. 
(a) SECTION 201.—Section 201 shall take effect on 
the date of the enactment of this Act. 
(b) SECTION 202.—Section 202 shall apply with re-
spect to any item removed from the United States Muni-
tions List on or after the date of the enactment of this 
Act. 
(c) SECTION 203.—Section 203 shall apply to any ap-
plication for a license or other approval to export that is 
made on or after the date of the enactment of this Act. 
Æ 
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