H. R. 5515—580 
capabilities of the foreign country, person, or entity 
to which such transfer would be made; 
(v) an analysis of the manner in which the pro-
posed export, reexport, or in-country transfer would 
affect the relative military strengths of countries in 
the region to which the items that are the subject 
of such export, reexport, or in-country transfer would 
be delivered and whether other countries in the region 
have comparable kinds and amounts of items; and 
(vi) an analysis of the impact of the proposed 
export, reexport, or in-country transfer on the relations 
of the United States with the countries in the region 
to which the items that are the subject of such export, 
reexport, or in-country transfer would be delivered. 
(3) PUBLICATION IN FEDERAL REGISTER.—Each determina-
tion of the Secretary of State under paragraph (1)(A)(i) shall 
be published in the Federal Register, except that the Secretary 
of State may exclude confidential information and trade secrets 
contained in such determination. 
(4) RESCISSION OF DETERMINATION.—A determination of the 
Secretary of State under paragraph (1)(A)(i) may not be 
rescinded unless the President submits to the Speaker of the 
House of Representatives, the chairman of the Committee on 
Foreign Affairs, and the chairman of the Committee on 
Banking, Housing, and Urban Affairs and the chairman of 
the Committee on Foreign Relations of the Senate— 
(A) before the proposed rescission would take effect, 
a report certifying that— 
(i) there has been a fundamental change in the 
leadership and policies of the government of the 
country concerned; 
(ii) that government is not supporting acts of inter-
national terrorism; and 
(iii) that government has provided assurances that 
it will not support acts of international terrorism in 
the future; or 
(B) at least 45 days before the proposed rescission 
would take effect, a report justifying the rescission and 
certifying that— 
(i) the government concerned has not provided any 
support for acts international terrorism during the pre-
ceding 6-month period; and 
(ii) the government concerned has provided assur-
ances that it will not support acts of international 
terrorism in the future. 
(d) ENHANCED CONTROLS.— 
(1) IN
GENERAL.—In furtherance of section 1753(a), the 
President shall, except to the extent authorized by a statute 
or regulation administered by a Federal department or agency 
other than the Department of Commerce, require a United 
States person, wherever located, to apply for and receive a 
license from the Department of Commerce for— 
(A) the export, reexport, or in-country transfer of items 
described in paragraph (2), including items that are not 
subject to control under this part; and 
(B) other activities that may support the design, 
development, production, use, operation, installation,
H. R. 5515—581 
maintenance, repair, overhaul, or refurbishing of, or for 
the performance of services relating to, any such items. 
(2) ITEMS DESCRIBED.—The items described in this para-
graph include— 
(A) nuclear explosive devices; 
(B) missiles; 
(C) chemical or biological weapons; 
(D) whole plants for chemical weapons precursors; and 
(E) foreign maritime nuclear projects that would pose 
a risk to the national security or foreign policy of the 
United States. 
(e) ADDITIONAL
PROHIBITIONS.—The Secretary may inform 
United States persons, either individually by specific notice or 
through amendment to any regulation or order issued under this 
part, that a license from the Bureau of Industry and Security 
of the Department of Commerce is required to engage in any activity 
if the activity involves the types of movement, service, or support 
described in subsection (d). The absence of any such notification 
does not excuse the United States person from compliance with 
the license requirements of subsection (d), or any regulation or 
order issued under this part. 
(f) LICENSE REVIEW STANDARDS.—The Secretary shall deny an 
application to engage in any activity described in subsection (d) 
if the activity would make a material contribution to any of the 
items described in subsection (d)(2). 
SEC. 1755. ADMINISTRATION OF EXPORT CONTROLS. 
(a) IN GENERAL.—The President shall rely on, including through 
delegations, as appropriate, the Secretary, the Secretary of Defense, 
the Secretary of State, the Secretary of Energy, the Director of 
National Intelligence, and the heads of other Federal agencies as 
appropriate, to exercise the authority to carry out the purposes 
set forth in subsection (b). 
(b) PURPOSES.—The purposes of this section include to— 
(1) advise the President with respect to— 
(A) identifying specific threats to the national security 
and foreign policy that the authority of this part may 
be used to address; and 
(B) exercising the authority under this part to imple-
ment policies, regulations, procedures, and actions that 
are necessary to effectively counteract those threats; 
(2) review and approve— 
(A) criteria for including items on, and removing such 
an item from, a list of controlled items established under 
this part; 
(B) an interagency procedure for compiling and 
amending any list described in subparagraph (A); 
(C) criteria for including a person on a list of persons 
to whom exports, reexports, and in-country transfers of 
items are prohibited or restricted under this part; 
(D) standards for compliance by persons subject to 
controls under this part; and 
(E) policies and procedures for the end-use monitoring 
of exports, reexports, and in-country transfers of items 
controlled under this part; and 
(3) benefit from the inherent equities, experience, and 
capabilities of the Federal officials described in subsection (a).
H. R. 5515—582 
(c) SENSE
OF CONGRESS.—It is the sense of Congress that 
the administration of export controls under this part should be 
consistent with the procedures relating to export license applications 
described in Executive Order 12981 (1995). 
SEC. 1756. LICENSING. 
(a) IN GENERAL.—The Secretary shall, consistent with delega-
tions as described in section 1755, establish a procedure to license 
or otherwise authorize the export, reexport, and in-country transfer 
of items controlled under this part in order to carry out the policy 
set forth in section 1752 and the requirements set forth in section 
1753(b). The procedure shall ensure that— 
(1) license applications and other requests for authorization 
are considered and decisions made with the participation of 
appropriate Federal agencies, as appropriate; and 
(2) licensing decisions are made in an expeditious manner, 
with transparency to applicants on the status of license and 
other authorization processing and the reason for denying any 
license or request for authorization. 
(b) SENSE
OF CONGRESS.—It is the sense of Congress that 
the Secretary should make best efforts to ensure that an accurate, 
consistent, and timely evaluation and processing of licenses or other 
requests for authorization to export, reexport, or in-country transfer 
items controlled under this part is generally accomplished within 
30 days from the date of such license request. 
(c) FEES.—No fee may be charged in connection with the 
submission, processing, or consideration of any application for a 
license or other authorization or other request made in connection 
with any regulation in effect under the authority of this part. 
(d) ADDITIONAL PROCEDURAL REQUIREMENTS.— 
(1) IN GENERAL.—The procedure required under subsection 
(a) shall provide for the assessment of the impact of a proposed 
export of an item on the United States defense industrial base 
and the denial of an application for a license or a request 
for an authorization of any export that would have a significant 
negative impact on such defense industrial base, as described 
in paragraph (3). 
(2) INFORMATION FROM APPLICANT.—The procedure required 
under subsection (a) shall also require an applicant for a license 
to provide the information necessary to make the assessment 
provided under paragraph (1), including whether the purpose 
or effect of the export is to allow for the significant production 
of items relevant for the defense industrial base outside the 
United States. 
(3) SIGNIFICANTLY NEGATIVE IMPACT DEFINED.—A signifi-
cant negative impact on the United States defense industrial 
base is the following: 
(A) A reduction in the availability of an item produced 
in the United States that is likely to be acquired by the 
Department of Defense or other Federal department or 
agency for the advancement of the national security of 
the United States, or for the production of an item in 
the United States for the Department of Defense or other 
agency for the advancement of the national security of 
the United States. 
(B) A reduction in the production in the United States 
of an item that is the result of research and development
H. R. 5515—583 
carried out, or funded by, the Department of Defense or 
other Federal department or agency to advance the national 
security of the United States, or a federally funded research 
and development center. 
(C) A reduction in the employment of United States 
persons whose knowledge and skills are necessary for the 
continued production in the United States of an item that 
is likely to be acquired by the Department of Defense 
or other Federal department or agency for the advancement 
of the national security of the United States. 
SEC. 1757. COMPLIANCE ASSISTANCE. 
(a) SYSTEM
FOR SEEKING ASSISTANCE.—The President may 
authorize the Secretary to establish a system to provide United 
States persons with assistance in complying with this part, which 
may include a mechanism for providing information, in classified 
form as appropriate, who are potential customers, suppliers, or 
business partners with respect to items controlled under this part, 
in order to further ensure the prevention of the export, reexport, 
or in-country transfer of items that may pose a threat to the 
national security or foreign policy of the United States. 
(b) SECURITY CLEARANCES.—In order to carry out subsection 
(a), the President may issue appropriate security clearances to 
persons described in that subsection who are responsible for com-
plying with this part. 
(c) ASSISTANCE FOR CERTAIN BUSINESSES.— 
(1) IN GENERAL.—Not later than 120 days after the date 
of the enactment of this Act, the President shall develop and 
submit to Congress a plan to assist small- and medium-sized 
United States businesses in export licensing and other processes 
under this part. 
(2) CONTENTS.—The plan shall include, among other things, 
arrangements for the Department of Commerce to provide coun-
seling to businesses described in paragraph (1) on filing applica-
tions and identifying items controlled under this part, as well 
as proposals for seminars and conferences to educate such 
businesses on export controls, licensing procedures, and related 
obligations. 
SEC. 1758. REQUIREMENTS TO IDENTIFY AND CONTROL THE EXPORT 
OF EMERGING AND FOUNDATIONAL TECHNOLOGIES. 
(a) IDENTIFICATION OF TECHNOLOGIES.— 
(1) IN
GENERAL.—The President shall establish and, in 
coordination with the Secretary, the Secretary of Defense, the 
Secretary of Energy, the Secretary of State, and the heads 
of other Federal agencies as appropriate, lead, a regular, 
ongoing 
interagency 
process 
to 
identify 
emerging 
and 
foundational technologies that— 
(A) are essential to the national security of the United 
States; and 
(B) are not critical technologies described in clauses 
(i) through (v) of section 721(a)(6)(A) of the Defense Produc-
tion Act of 1950, as amended by section 1703. 
(2) PROCESS.—The interagency process established under 
subsection (a) shall— 
(A) be informed by multiple sources of information, 
including— 
(i) publicly available information;
H. R. 5515—584 
(ii) classified information, including relevant 
information provided by the Director of National Intel-
ligence; 
(iii) information relating to reviews and investiga-
tions of transactions by the Committee on Foreign 
Investment in the United States under section 721 
of the Defense Production Act of 1950 (50 U.S.C. 4565); 
and 
(iv) information provided by the advisory commit-
tees established by the Secretary to advise the Under 
Secretary of Commerce for Industry and Security on 
controls under the Export Administration Regulations, 
including the Emerging Technology and Research 
Advisory Committee; 
(B) take into account— 
(i) the development of emerging and foundational 
technologies in foreign countries; 
(ii) the effect export controls imposed pursuant 
to this section may have on the development of such 
technologies in the United States; and 
(iii) the effectiveness of export controls imposed 
pursuant to this section on limiting the proliferation 
of emerging and foundational technologies to foreign 
countries; and 
(C) include a notice and comment period. 
(b) COMMERCE CONTROLS.— 
(1) IN GENERAL.—Except to the extent inconsistent with 
the authorities described in subsection (a)(1)(B), the Secretary 
shall establish appropriate controls under the Export Adminis-
tration Regulations on the export, reexport, or in-country 
transfer of technology identified pursuant to subsection (a), 
including through interim controls (such as by informing a 
person that a license is required for export), as appropriate, 
or by publishing additional regulations. 
(2) LEVELS OF CONTROL.— 
(A) IN GENERAL.—The Secretary may, in coordination 
with the Secretary of Defense, the Secretary of State, and 
the heads of other Federal agencies, as appropriate, specify 
the level of control to apply under paragraph (1) with 
respect to the export of technology described in that para-
graph, including a requirement for a license or other 
authorization for the export, reexport, or in-country 
transfer of that technology. 
(B) CONSIDERATIONS.—In determining under subpara-
graph (A) the level of control appropriate for technology 
described in paragraph (1), the Secretary shall take into 
account— 
(i) lists of countries to which exports from the 
United States are restricted; and 
(ii) the potential end uses and end users of the 
technology. 
(C) MINIMUM REQUIREMENTS.—At a minimum, except 
as provided by paragraph (4), the Secretary shall require 
a license for the export, reexport, or in-country transfer 
of technology described in paragraph (1) to or in a country 
subject to an embargo, including an arms embargo, imposed 
by the United States.
H. R. 5515—585 
(3) REVIEW OF LICENSE APPLICATIONS.— 
(A) PROCEDURES.—The procedures set forth in Execu-
tive Order 12981 (50 U.S.C. 4603 note; relating to adminis-
tration of export controls) or a successor order shall apply 
to the review of an application for a license or other 
authorization for the export, reexport, or in-country 
transfer of technology described in paragraph (1). 
(B) CONSIDERATION
OF
INFORMATION
RELATING
TO 
NATIONAL
SECURITY.—In reviewing an application for a 
license or other authorization for the export, reexport, or 
in-country transfer of technology described in paragraph 
(1), the Secretary shall take into account information pro-
vided by the Director of National Intelligence regarding 
any threat to the national security of the United States 
posed by the proposed export, reexport, or transfer. The 
Director of National Intelligence shall provide such 
information on the request of the Secretary. 
(C) 
DISCLOSURES
RELATING
TO
COLLABORATIVE 
ARRANGEMENTS.—In the case of an application for a license 
or other authorization for the export, reexport, or in-country 
transfer of technology described in paragraph (1) submitted 
by or on behalf of a joint venture, joint development agree-
ment, or similar collaborative arrangement, the Secretary 
may require the applicant to identify, in addition to any 
foreign person participating in the arrangement, any for-
eign person with significant ownership interest in a foreign 
person participating in the arrangement. 
(4) EXCEPTIONS.— 
(A) MANDATORY EXCEPTIONS.—The Secretary may not 
control under this subsection the export of any technology— 
(i) described in section 203(b) of the International 
Emergency Economic Powers Act (50 U.S.C. 1702(b)); 
or 
(ii) if the regulation of the export of that technology 
is prohibited under any other provision of law. 
(B) REGULATORY EXCEPTIONS.—In prescribing regula-
tions under paragraph (1), the Secretary may include regu-
latory exceptions to the requirements of that paragraph. 
(C) ADDITIONAL EXCEPTIONS.—The Secretary shall not 
be required to impose under paragraph (1) a requirement 
for a license or other authorization with respect to the 
export, reexport, or in-country transfer of technology 
described in paragraph (1) pursuant to any of the following 
transactions: 
(i) The sale or license of a finished item and the 
provision of associated technology if the United States 
person that is a party to the transaction generally 
makes the finished item and associated technology 
available to its customers, distributors, or resellers. 
(ii) The sale or license to a customer of a product 
and the provision of integration services or similar 
services if the United States person that is a party 
to the transaction generally makes such services avail-
able to its customers. 
(iii) The transfer of equipment and the provision 
of associated technology to operate the equipment if 
the transfer could not result in the foreign person
H. R. 5515—586 
using the equipment to produce critical technologies 
(as defined in section 721(a) of the Defense Production 
Act of 1950, as amended by section 1703). 
(iv) The procurement by the United States person 
that is a party to the transaction of goods or services, 
including manufacturing services, from a foreign per-
son that is a party to the transaction, if the foreign 
person has no rights to exploit any technology contrib-
uted by the United States person other than to supply 
the procured goods or services. 
(v) Any contribution and associated support by 
a United States person that is a party to the trans-
action to an industry organization related to a standard 
or specification, whether in development or declared, 
including any license of or commitment to license 
intellectual property in compliance with the rules of 
any standards organization (as defined by the Sec-
retary by regulation). 
(c) MULTILATERAL CONTROLS.— 
(1) IN GENERAL.—The Secretary of State, in consultation 
with the Secretary and the Secretary of Defense, and the heads 
of other Federal agencies, as appropriate, shall propose that 
any technology identified pursuant to subsection (a) be added 
to the list of technologies controlled by the relevant multilateral 
export control regimes. 
(2) ITEMS ON COMMERCE CONTROL LIST OR UNITED STATES 
MUNITIONS LIST.—If the Secretary of State proposes to a multi-
lateral export control regime under paragraph (1) to add a 
technology identified pursuant to subsection (a) to the control 
list of that regime and that regime does not add that technology 
to the control list during the 3-year period beginning on the 
date of the proposal, the applicable agency head may determine 
whether national security concerns warrant the continuation 
of unilateral export controls with respect to that technology. 
(d) REPORT TO COMMITTEE ON FOREIGN INVESTMENT IN THE 
UNITED STATES.—Not less frequently than every 180 days, the 
Secretary, in coordination with the Secretary of Defense, the Sec-
retary of State, and the heads of other Federal agencies, as appro-
priate, shall submit to the Committee on Foreign Investment in 
the United States a report on the results of actions taken pursuant 
to this section. 
(e) REPORT TO CONGRESS.—Not less frequently than every 180 
days, the Secretary, in coordination with the Secretary of Defense, 
the Secretary of State, and the heads of other Federal agencies, 
as appropriate, shall submit a report on the results of actions 
taken pursuant to this section, including actions taken pursuant 
to subsections (a), (b), and (c), to— 
(1) the Committee on Banking, Housing, and Urban Affairs, 
the Committee on Foreign Relations, the Committee on Armed 
Services, and the Select Committee on Intelligence of the 
Senate; and 
(2) the Committee on Financial Services, the Committee 
on Foreign Affairs, the Committee on Armed Services, and 
the Permanent Select Committee on Intelligence of the House 
of Representatives. 
(f) MODIFICATIONS TO EMERGING TECHNOLOGY AND RESEARCH 
ADVISORY COMMITTEE.—
H. R. 5515—587 
(1) IN GENERAL.—The Secretary shall revise the objectives 
of the Emerging Technology and Research Advisory Committee, 
established by the Secretary under the Export Administration 
Regulations, to include advising the interagency process estab-
lished under subsection (a) with respect to emerging and 
foundational technologies. 
(2) DUTIES.—The Secretary— 
(A) shall revise the duties of the Emerging Technology 
and Research Advisory Committee to include identifying 
emerging and foundational technologies that may be devel-
oped over a period of 5 years or 10 years; and 
(B) may revise the duties of the Advisory Committee 
to include identifying trends in— 
(i) the ownership by foreign persons and foreign 
governments of such technologies; 
(ii) the types of transactions related to such tech-
nologies engaged in by foreign persons and foreign 
governments; 
(iii) the blending of private and government invest-
ment in such technologies; and 
(iv) efforts to obfuscate ownership of such tech-
nologies or to otherwise circumvent the controls estab-
lished under this section. 
(3) MEETINGS.— 
(A) 
FREQUENCY.—The 
Emerging 
Technology 
and 
Research Advisory Committee should meet not less fre-
quently than every 120 days. 
(B) ATTENDANCE.—A representative from each agency 
participating in the interagency process established under 
subsection (a) should be in attendance at each meeting 
of the Emerging Technology and Research Advisory Com-
mittee. 
(4) CLASSIFIED INFORMATION.—Not fewer than half of the 
members of the Emerging Technology and Research Advisory 
Committee should hold sufficient security clearances such that 
classified 
information, 
including 
classified 
information 
described in clauses (ii) and (iii) of subsection (a)(2)(A), from 
the interagency process established under subsection (a) can 
be shared with those members to inform the advice provided 
by the Advisory Committee. 
(5) APPLICABILITY OF FEDERAL ADVISORY COMMITTEE ACT.— 
Subsections (a)(1), (a)(3), and (b) of section 10 and sections 
11, 13, and 14 of the Federal Advisory Committee Act (5 U.S.C. 
App.) shall not apply to the Emerging Technology and Research 
Advisory Committee. 
(6) REPORT.—The Emerging Technology and Research 
Advisory Committee shall include the findings of the Advisory 
Committee under this subsection in the annual report to Con-
gress required by section 1765. 
(g) RULE
OF CONSTRUCTION.—Nothing in this subtitle shall 
be construed to alter or limit— 
(1) the authority of the President or the Secretary of State 
to designate items as defense articles and defense services 
for the purposes of the Arms Export Control Act (22 U.S.C. 
2751 et seq.) or to otherwise regulate such items; or
H. R. 5515—588 
(2) the authority of the President under the Atomic Energy 
Act of 1954 (42 U.S.C. 2011 et seq.), the Nuclear Non-Prolifera-
tion Act of 1978 (22 U.S.C. 3201 et seq.), the Energy Reorga-
nization Act of 1974 (42 U.S.C. 5801 et seq.), or the Export 
Administration Act of 1979 (50 U.S.C. 4601 et seq.) (as contin-
ued in effect pursuant to the International Emergency Economic 
Powers Act (50 U.S.C. 1701 et seq.)) or any other provision 
of law relating to the control of exports. 
SEC. 1759. REVIEW RELATING TO COUNTRIES SUBJECT TO COM-
PREHENSIVE UNITED STATES ARMS EMBARGO. 
(a) IN GENERAL.—The Secretary, the Secretary of Defense, the 
Secretary of State, the Secretary of Energy, and the heads of other 
Federal agencies as appropriate, shall conduct a review of license 
requirements for exports, reexports, or in-country transfers of items 
to countries subject to a comprehensive United States arms 
embargo, including, as appropriate— 
(1) the scope of controls under title 15, Code of Federal 
Regulations, that apply to exports, reexports, and in-country 
transfers for military end uses and military end users in coun-
tries that are subject to a comprehensive United States arms 
embargo and countries that are subject to a United Nations 
arms embargo; and 
(2) entries on the Commerce Control List maintained under 
title 15, Code of Federal Regulations, that are not subject 
to a license requirement for the export, reexport, or in-country 
transfer of items to countries subject to a comprehensive United 
States arms embargo; 
(b) IMPLEMENTATION OF RESULTS OF REVIEW.—Not later than 
270 days after the date of the enactment of this Act, the Secretary 
shall implement the results of the review conducted under sub-
section (a). 
SEC. 1760. PENALTIES. 
(a) UNLAWFUL ACTS.— 
(1) IN GENERAL.—It shall be unlawful for a person to vio-
late, attempt to violate, conspire to violate, or cause a violation 
of this part or of any regulation, order, license, or other 
authorization issued under this part, including any of the 
unlawful acts described in paragraph (2). 
(2) SPECIFIC UNLAWFUL ACTS.—The unlawful acts described 
in this paragraph are the following: 
(A) No person may engage in any conduct prohibited 
by or contrary to, or refrain from engaging in any conduct 
required by this part, the Export Administration Regula-
tions, or any order, license or authorization issued there-
under. 
(B) No person may cause or aid, abet, counsel, com-
mand, induce, procure, permit, or approve the doing of 
any act prohibited, or the omission of any act required 
by this part, the Export Administration Regulations, or 
any order, license or authorization issued thereunder. 
(C) No person may solicit or attempt a violation of 
this part, the Export Administration Regulations, or any 
order, license or authorization issued thereunder. 
(D) No person may conspire or act in concert with 
one or more other persons in any manner or for any purpose 
to bring about or to do any act that constitutes a violation
H. R. 5515—589 
of this part, the Export Administration Regulations, or 
any order, license or authorization issued thereunder. 
(E) No person may order, buy, remove, conceal, store, 
use, sell, loan, dispose of, transfer, transport, finance, for-
ward, or otherwise service, in whole or in part, or conduct 
negotiations to facilitate such activities for, any item 
exported or to be exported from the United States, or 
that is otherwise subject to the Export Administration 
Regulations, with knowledge that a violation of this part, 
the Export Administration Regulations, or any order, 
license or authorization issued thereunder, has occurred, 
is about to occur, or is intended to occur in connection 
with the item unless valid authorization is obtained 
therefor. 
(F) No person may make any false or misleading rep-
resentation, statement, or certification, or falsify or conceal 
any material fact, either directly to the Department of 
Commerce, or an official of any other United States agency, 
including the Department of Homeland Security and the 
Department of Justice, or indirectly through any other 
person— 
(i) in the course of an investigation or other action 
subject to the Export Administration Regulations; 
(ii) in connection with the preparation, submission, 
issuance, use, or maintenance of any export control 
document or any report filed or required to be filed 
pursuant to the Export Administration Regulations; 
or 
(iii) for the purpose of or in connection with 
effecting any export, reexport, or in-country transfer 
of an item subject to the Export Administration Regula-
tions or a service or other activity of a United States 
person described in section 1754. 
(G) No person may engage in any transaction or take 
any other action with intent to evade the provisions of 
this part, the Export Administration Regulations, or any 
order, license, or authorization issued thereunder. 
(H) No person may fail or refuse to comply with any 
reporting or recordkeeping requirements of the Export 
Administration Regulations or of any order, license, or 
authorization issued thereunder. 
(I) Except as specifically authorized in the Export 
Administration Regulations or in writing by the Depart-
ment of Commerce, no person may alter any license, 
authorization, export control document, or order issued 
under the Export Administration Regulations. 
(J) No person may take any action that is prohibited 
by a denial order or a temporary denial order issued by 
the Department of Commerce to prevent imminent viola-
tions of this part, the Export Administration Regulations, 
or any order, license or authorization issued thereunder. 
(3) ADDITIONAL REQUIREMENTS.—For purposes of paragraph 
(2)(F), any representation, statement, or certification made by 
any person shall be deemed to be continuing in effect. Each 
person who has made a representation, statement, or certifi-
cation to the Department of Commerce relating to any order, 
license, or other authorization issued under this part shall
H. R. 5515—590 
notify the Department of Commerce, in writing, of any change 
of any material fact or intention from that previously rep-
resented, stated, or certified, immediately upon receipt of any 
information that would lead a reasonably prudent person to 
know that a change of material fact or intention had occurred 
or may occur in the future. 
(b) CRIMINAL PENALTY.—A person who willfully commits, will-
fully attempts to commit, or willfully conspires to commit, or aids 
and abets in the commission of, an unlawful act described in sub-
section (a)— 
(1) shall be fined not more than $1,000,000; and 
(2) in the case of the individual, shall be imprisoned for 
not more than 20 years, or both. 
(c) CIVIL PENALTIES.— 
(1) AUTHORITY.—The Secretary may impose the following 
civil penalties on a person for each violation by that person 
of this part or any regulation, order, or license issued under 
this part, for each violation: 
(A) A fine of not more than $300,000 or an amount 
that is twice the value of the transaction that is the basis 
of the violation with respect to which the penalty is 
imposed, whichever is greater. 
(B) Revocation of a license issued under this part to 
the person. 
(C) A prohibition on the person’s ability to export, 
reexport, or in-country transfer any items controlled under 
this part. 
(2) PROCEDURES.—Any civil penalty under this subsection 
may be imposed only after notice and opportunity for an agency 
hearing on the record in accordance with sections 554 through 
557 of title 5, United States Code. 
(3) STANDARDS FOR LEVELS OF CIVIL PENALTY.—The Sec-
retary may by regulation provide standards for establishing 
levels of civil penalty under this subsection based upon factors 
such as the seriousness of the violation, the culpability of 
the violator, and such mitigating factors as the violator’s record 
of cooperation with the Government in disclosing the violation. 
(d) CRIMINAL FORFEITURE.— 
(1) IN GENERAL.—Any person who is convicted under sub-
section (b) of a violation of a control imposed under section 
1753 (or any regulation, order, or license issued with respect 
to such control) shall, in addition to any other penalty, forfeit 
to the United States any of the person’s property— 
(A) used or intended to be used, in any manner, to 
commit or facilitate the violation; 
(B) constituting or traceable to the gross proceeds 
taken, obtained, or retained, in connection with or as a 
result of the violation; or 
(C) constituting an item or technology that is exported 
or intended to be exported in violation of this title. 
(2) PROCEDURES.—The procedures in any forfeiture under 
this subsection shall be governed by the procedures established 
under section 413 of the Comprehensive Drug Abuse Prevention 
and Control Act of 1970 (21 U.S.C. 853), other than subsection 
(d) of such section. 
(e) PRIOR CONVICTIONS.— 
(1) LICENSE BAR.—
H. R. 5515—591 
(A) IN GENERAL.—The Secretary may— 
(i) deny the eligibility of any person convicted of 
a criminal violation described in subparagraph (B) to 
export, reexport, or in-country transfer outside the 
United States any item, whether or not subject to 
controls under this part, for a period of up to 10 years 
beginning on the date of the conviction; and 
(ii) revoke any license or other authorization to 
export, reexport, or in-country transfer items that was 
issued under this part and in which such person has 
an interest at the time of the conviction. 
(B) VIOLATIONS.—The violations referred to in subpara-
graph (A) are any criminal violations of, or criminal attempt 
or conspiracy to violate— 
(i) this part (or any regulation, license, or order 
issued under this part); 
(ii) any regulation, license, or order issued under 
the International Emergency Economic Powers Act; 
(iii) section 371, 554, 793, 794, or 798 of title 
18, United States Code; 
(iv) section 1001 of title 18, United States Code; 
(v) section 4(b) of the Internal Security Act of 
1950 (50 U.S.C. 783(b)); or 
(vi) section 38 of the Arms Export Control Act 
(22 U.S.C. 2778). 
(2) APPLICATION TO OTHER PARTIES.—The Secretary may 
exercise the authority under paragraph (1) with respect to 
any person related, through affiliation, ownership, control, posi-
tion of responsibility, or other connection in the conduct of 
trade or business, to any person convicted of any violation 
of law set forth in paragraph (1), upon a showing of such 
relationship with the convicted party, and subject to the proce-
dures set forth in subsection (c)(2). 
(f) OTHER AUTHORITIES.—Nothing in subsection (c), (d), or (e) 
limits— 
(1) the availability of other administrative or judicial rem-
edies with respect to violations of this part, or any regulation, 
order, license or other authorization issued under this part; 
(2) the authority to compromise and settle administrative 
proceedings brought with respect to violations of this part, 
or any regulation, order, license, or other authorization issued 
under this part; or 
(3) the authority to compromise, remit or mitigate seizures 
and forfeitures pursuant to section 1(b) of title VI of the Act 
of June 15, 1917 (22 U.S.C. 401(b)). 
SEC. 1761. ENFORCEMENT. 
(a) AUTHORITIES.—In order to enforce this part, the Secretary, 
on behalf of the President, may exercise, in addition to relevant 
enforcement authorities of other Federal agencies, the authority 
to— 
(1) issue orders and guidelines; 
(2) require, inspect, and obtain books, records, and any 
other information from any person subject to the provisions 
of this part;
H. R. 5515—592 
(3) administer oaths or affirmations and by subpoena 
require any person to appear and testify or to appear and 
produce books, records, and other writings, or both; 
(4) conduct investigations within the United States and 
outside the United States consistent with applicable law; 
(5) inspect, search, detain, seize, or issue temporary denial 
orders with respect to items, in any form, that are subject 
to controls under this part, or conveyances on which it is 
believed that there are items that have been, are being, or 
are about to be exported, reexported, or in-country transferred 
in violation of this part, or any regulations, order, license, 
or other authorization issued thereunder; 
(6) carry firearms; 
(7) conduct prelicense inspections and post-shipment 
verifications; and 
(8) execute warrants and make arrests. 
(b) UNDERCOVER INVESTIGATIONS.— 
(1) IN
GENERAL.—Amounts made available to carry out 
this part may be used by the Secretary to carry out undercover 
investigations that are necessary for detection and prosecution 
of violations of this part, including to— 
(A) purchase property, buildings, and other facilities, 
and to lease space, within the United States, the District 
of Columbia, and the territories and possessions of the 
United States without regard to— 
(i) sections 1341 and 3324 of title 31, United States 
Code; 
(ii) section 8141 of title 40, United States Code; 
(iii) sections 3901, 6301(a) and (b)(1) to (3), and 
6306 of title 41, United States Code; and 
(iv) chapter 45 of title 41, United States Code; 
and 
(B) establish or acquire proprietary corporations or 
business entities as part of the undercover operation and 
operate such corporations or business entities on a commer-
cial basis, without regard to sections 9102 and 9103 of 
title 31, United States Code. 
(2) DEPOSIT OF AMOUNTS IN BANKS OR OTHER FINANCIAL 
INSTITUTIONS.—Amounts made available to carry out this part 
that are used to carry out undercover operations under para-
graph (1) may be deposited in banks or other financial institu-
tions without regard to the provisions of section 648 of title 
18, United States Code, and section 3302 of title 31, United 
States Code. 
(3) OFFSET OF NECESSARY AND REASONABLE EXPENSES.— 
Any proceeds from an undercover operation carried out under 
paragraph (1) may be used to offset necessary and reasonable 
expenses incurred in such undercover operation without regard 
to the provisions of section 3302 of title 31, United States 
Code. 
(4) DISPOSITION
OF
CORPORATIONS
AND
BUSINESS
ENTI-
TIES.—If a corporation or business entity established or 
acquired as part of an undercover operation carried out under 
paragraph (1) with a net value of over $50,000 is to be liq-
uidated, sold, or otherwise disposed of, the Secretary shall 
report the circumstances to the Comptroller General of the 
United States as much in advance of such disposition as the
H. R. 5515—593 
Secretary determines is practicable. The proceeds of the liquida-
tion, sale, or other disposition, after obligations are met, shall 
be deposited in the Treasury of the United States as miscella-
neous receipts. Any property or equipment purchased pursuant 
to paragraph (1) may be retained for subsequent use in under-
cover operations under this section. When such property or 
equipment is no longer needed, it shall be considered surplus 
and disposed of as surplus government property. 
(5) DEPOSIT OF PROCEEDS.—As soon as the proceeds from 
an undercover operation carried out under paragraph (1), with 
respect to which an action is certified and carried out under 
this subsection, are no longer needed for the conduct of such 
operation, the proceeds or the balance of such proceeds 
remaining at the time shall be deposited into the Treasury 
of the United States as miscellaneous receipts. 
(c) ENFORCEMENT OF SUBPOENAS.—In the case of contumacy 
by, or refusal to obey a subpoena issued to, any person under 
subsection (a)(3), a district court of the United States, after notice 
to such person and a hearing, shall have jurisdiction to issue 
an order requiring such person to appear and give testimony or 
to appear and produce books, records, and other writings, regardless 
of format, that are the subject of the subpoena. Any failure to 
obey such order of the court may be punished by such court as 
a contempt thereof. 
(d) BEST PRACTICE GUIDELINES.— 
(1) IN GENERAL.—The Secretary, in consultation with the 
heads of other appropriate Federal agencies, should publish 
and update ‘‘best practices’’ guidelines to assist persons in 
developing and implementing, on a voluntary basis, effective 
export control programs in compliance with the regulations 
issued under this part. 
(2) EXPORT
COMPLIANCE
PROGRAM.—The implementation 
by a person of an effective export compliance program and 
a high quality overall export compliance effort by a person 
should ordinarily be given weight as mitigating factors in a 
civil penalty action against the person under this part. 
(e) REFERENCE TO ENFORCEMENT.—For purposes of this section, 
a reference to the enforcement of, or a violation of, this part includes 
a reference to the enforcement or a violation of any regulation, 
order, license or other authorization issued pursuant to this part. 
(f) WIRETAPPING.—Section 2516(1) of title 18, United States 
Code, is amended— 
(1) in subparagraph (s), by striking ‘‘or’’ at the end; 
(2) by redesignating subparagraph (t) as subparagraph (u); 
and 
(3) by inserting after subparagraph (s) (as amended by 
paragraph (1) of this subsection) the following new subpara-
graph: 
‘‘(t) any violation of the Export Control Reform Act 
of 2018; or’’. 
(g) IMMUNITY.—A person shall not be excused from complying 
with any requirements under this section because of the person’s 
privilege against self-incrimination, but the immunity provisions 
of section 6002 of title 18, United States Code, shall apply with 
respect to any individual who specifically claims such privilege. 
(h) CONFIDENTIALITY OF INFORMATION.— 
(1) EXEMPTIONS FROM DISCLOSURE.—