H. R. 5515—571 
of enhancing interagency coordination and collaboration in car-
rying out the functions of the Committee under this section. 
‘‘(2) FUNCTIONS.—Functions that may be centralized under 
paragraph (1) include identifying non-notified and non-declared 
transactions pursuant to subsection (b)(1)(H), and other func-
tions as determined by the chairperson and the Committee. 
‘‘(3) RULE OF CONSTRUCTION.—Nothing in this section shall 
be construed as limiting the authority of any department or 
agency represented on the Committee to represent its own 
interests before the Committee.’’. 
SEC. 1725. CONFORMING AMENDMENTS. 
Section 721 of the Defense Production Act of 1950 (50 U.S.C. 
4565), as amended by this subtitle, is further amended— 
(1) in subsection (b)— 
(A) in paragraph (1)(D)(iii)(I), by striking ‘‘subsection 
(l)(1)(A)’’ and inserting ‘‘subsection (l)(3)(A)’’; and 
(B) in paragraph (2)(B)(i)(I), by striking ‘‘that threat’’ 
and inserting ‘‘the risk’’; 
(2) in subsection (d)(4)(A), by striking ‘‘the foreign interest 
exercising control’’ and inserting ‘‘a foreign person that would 
acquire an interest in a United States business or its assets 
as a result of the covered transaction’’; and 
(3) in subsection (j), by striking ‘‘merger, acquisition, or 
takeover’’ and inserting ‘‘transaction’’. 
SEC. 
1726. 
BRIEFING 
ON 
INFORMATION 
FROM 
TRANSACTIONS 
REVIEWED BY COMMITTEE ON FOREIGN INVESTMENT IN 
THE UNITED STATES RELATING TO FOREIGN EFFORTS 
TO INFLUENCE DEMOCRATIC INSTITUTIONS AND PROC-
ESSES. 
Not later than 60 days after the date of the enactment of 
this Act, the Secretary of the Treasury (or a designee of the Sec-
retary) shall provide a briefing to the Committee on Banking, 
Housing, and Urban Affairs of the Senate and the Committee 
on Financial Services of the House of Representatives on— 
(1) transactions reviewed by the Committee on Foreign 
Investment in the United States during the 5-year period pre-
ceding the briefing that the Committee determined would have 
allowed foreign persons to inappropriately influence democratic 
institutions and processes within the United States and in 
other countries; and 
(2) the disposition of such reviews, including any steps 
taken by the Committee to address the risk of allowing foreign 
persons to influence such institutions and processes. 
SEC. 1727. EFFECTIVE DATE. 
(a) IMMEDIATE APPLICABILITY
OF CERTAIN PROVISIONS.—The 
following shall take effect on the date of the enactment of this 
Act and, as applicable, apply with respect to any covered transaction 
the review or investigation of which is initiated under section 721 
of the Defense Production Act of 1950 on or after such date of 
enactment: 
(1) Sections 1705, 1707, 1708, 1709, 1710, 1713, 1714, 
1715, 1716, 1717, 1718, 1720, 1721, 1722, 1723, 1724, and 
1725 and any amendments made by those sections.
H. R. 5515—572 
(2) Section 1712 and the amendments made by that section 
(except for clause (iii) of section 721(b)(4)(A) of the Defense 
Production Act of 1950, as added by section 1712). 
(3) Paragraphs (1), (2), (3), (4)(A)(i), (4)(B)(i), (4)(B)(iv)(I), 
(4)(B)(v), (4)(C)(v), (5), (6), (7), (8), (9), (10), (11), (12), and 
(13) of subsection (a) of section 721 of the Defense Production 
Act of 1950, as amended by section 1703. 
(4) Section 721(m)(4) of the Defense Production Act of 1950, 
as amended by section 1719 (except for clauses (ii), (iii), (iv), 
and (v) of subparagraph (B) of that section). 
(b) DELAYED APPLICABILITY OF CERTAIN PROVISIONS.— 
(1) IN GENERAL.—Any provision of or amendment made 
by this subtitle not specified in subsection (a) shall— 
(A) take effect on the earlier of— 
(i) the date that is 18 months after the date of 
the enactment of this Act; or 
(ii) the date that is 30 days after publication in 
the Federal Register of a determination by the chair-
person of the Committee on Foreign Investment in 
the United States that the regulations, organizational 
structure, personnel, and other resources necessary to 
administer the new provisions are in place; and 
(B) apply with respect to any covered transaction the 
review or investigation of which is initiated under section 
721 of the Defense Production Act of 1950 on or after 
the date described in subparagraph (A). 
(2) NONDELEGATION OF DETERMINATION.—The determina-
tion of the chairperson of the Committee on Foreign Investment 
in the United States under paragraph (1)(A) may not be dele-
gated. 
(c) AUTHORIZATION FOR PILOT PROGRAMS.— 
(1) IN GENERAL.—Beginning on the date of the enactment 
of this Act and ending on the date that is 570 days thereafter, 
the Committee on Foreign Investment in the United States 
may, at its discretion, conduct one or more pilot programs 
to implement any authority provided pursuant to any provision 
of or amendment made by this subtitle not specified in sub-
section (a). 
(2) PUBLICATION IN FEDERAL REGISTER.—A pilot program 
under paragraph (1) may not commence until the date that 
is 30 days after publication in the Federal Register of a deter-
mination by the chairperson of the Committee of the scope 
of and procedures for the pilot program. That determination 
may not be delegated. 
SEC. 1728. SEVERABILITY. 
If any provision of this subtitle or an amendment made by 
this subtitle, or the application of such a provision or amendment 
to any person or circumstance, is held to be invalid, the application 
of that provision or amendment to other persons or circumstances 
and the remainder of the provisions of this subtitle and the amend-
ments made by this subtitle, shall not be affected thereby.
H. R. 5515—573 
Subtitle B—Export Control Reform 
SEC. 1741. SHORT TITLE. 
This subtitle may be cited as the ‘‘Export Control Reform Act 
of 2018’’. 
SEC. 1742. DEFINITIONS. 
In this subtitle: 
(1) CONTROLLED.—The term ‘‘controlled’’ refers to an item 
subject to the jurisdiction of the United States under part 
I. 
(2) DUAL-USE.—The term ‘‘dual-use’’, with respect to an 
item, means the item has civilian applications and military, 
terrorism, weapons of mass destruction, or law-enforcement- 
related applications. 
(3) EXPORT.—The term ‘‘export’’, with respect to an item 
subject to controls under part I, includes— 
(A) the shipment or transmission of the item out of 
the United States, including the sending or taking of the 
item out of the United States, in any manner; and 
(B) the release or transfer of technology or source 
code relating to the item to a foreign person in the United 
States. 
(4) EXPORT
ADMINISTRATION
REGULATIONS.—The term 
‘‘Export Administration Regulations’’ means— 
(A) the Export Administration Regulations as promul-
gated, maintained, and amended under the authority of 
the International Emergency Economic Powers Act and 
codified, as of the date of the enactment of this Act, in 
subchapter C of chapter VII of title 15, Code of Federal 
Regulations; or 
(B) regulations that are promulgated, maintained, and 
amended under the authority of part I on or after the 
date of the enactment of this Act. 
(5) FOREIGN PERSON.—The term ‘‘foreign person’’ means— 
(A) any natural person who is not a lawful permanent 
resident of the United States, citizen of the United States, 
or any other protected individual (as such term is defined 
in section 274B(a)(3) of the Immigration and Nationality 
Act (8 U.S.C. 1324b(a)(3)); 
(B) any corporation, business association, partnership, 
trust, society or any other entity or group that is not 
incorporated in the United States or organized to do busi-
ness in the United States, as well as international organiza-
tions, foreign governments and any agency or subdivision 
of a foreign government (e.g., diplomatic mission). 
(6) IN-COUNTRY TRANSFER.—The term ‘‘in-country transfer’’, 
with respect to an item subject to controls under part I, means 
a change in the end-use or end user of the item within the 
same foreign country. 
(7) ITEM.—The term ‘‘item’’ means a commodity, software, 
or technology. 
(8) PERSON.—The term ‘‘person’’ means— 
(A) a natural person; 
(B) a corporation, business association, partnership, 
society, trust, financial institution, insurer, underwriter,
H. R. 5515—574 
guarantor, and any other business organization, any other 
nongovernmental entity, organization, or group, or any 
government or agency thereof; and 
(C) any successor to any entity described in subpara-
graph (B). 
(9) REEXPORT.—The term ‘‘reexport’’, with respect to an 
item subject to controls under part I, includes— 
(A) the shipment or transmission of the item from 
a foreign country to another foreign country, including 
the sending or taking of the item from the foreign country 
to the other foreign country, in any manner; and 
(B) the release or transfer of technology or source 
code relating to the item to a foreign person outside the 
United States. 
(10) SECRETARY.—Except as otherwise provided, the term 
‘‘Secretary’’ means the Secretary of Commerce. 
(11) 
TECHNOLOGY.—The 
term 
‘‘technology’’ 
includes 
information, in tangible or intangible form, necessary for the 
development, production, or use of an item. 
(12) UNITED STATES.—The term ‘‘United States’’ means the 
several States, the District of Columbia, the Commonwealth 
of Puerto Rico, the Commonwealth of the Northern Mariana 
Islands, American Samoa, Guam, the United States Virgin 
Islands, and any other territory or possession of the United 
States. 
(13) UNITED STATES PERSON.—The term ‘‘United States per-
son’’ means— 
(A) for purposes of part I— 
(i) any individual who is a citizen or national of 
the United States or who is an individual described 
in subparagraph (B) of section 274B(a)(3) of the 
Immigration 
and 
Nationality 
Act 
(8 
U.S.C. 
1324b(a)(3)); 
(ii) a corporation or other legal entity which is 
organized under the laws of the United States, any 
State or territory thereof, or the District of Columbia; 
and 
(iii) any person in the United States; and 
(B) for purposes of part II, any United States resident 
or national (other than an individual resident outside the 
United States and employed by other than a United States 
person), any domestic concern (including any permanent 
domestic establishment of any foreign concern) and any 
foreign subsidiary or affiliate (including any permanent 
foreign establishment) of any domestic concern which is 
controlled in fact by such domestic concern, as determined 
under regulations by the Secretary. 
(14) WEAPONS OF MASS DESTRUCTION.—The term ‘‘weapons 
of mass destruction’’ means nuclear, radiological, chemical, and 
biological weapons and delivery systems for such weapons. 
PART I—AUTHORITY AND ADMINISTRATION 
OF CONTROLS 
SEC. 1751. SHORT TITLE. 
This part may be cited as the ‘‘Export Controls Act of 2018’’.
H. R. 5515—575 
SEC. 1752. STATEMENT OF POLICY. 
The following is the policy of the United States: 
(1) To use export controls only after full consideration 
of the impact on the economy of the United States and only 
to the extent necessary— 
(A) to restrict the export of items which would make 
a significant contribution to the military potential of any 
other country or combination of countries which would 
prove detrimental to the national security of the United 
States; and 
(B) to restrict the export of items if necessary to further 
significantly the foreign policy of the United States or 
to fulfill its declared international obligations. 
(2) The national security and foreign policy of the United 
States require that the export, reexport, and in-country transfer 
of items, and specific activities of United States persons, wher-
ever located, be controlled for the following purposes: 
(A) To control the release of items for use in— 
(i) the proliferation of weapons of mass destruction 
or of conventional weapons; 
(ii) the acquisition of destabilizing numbers or 
types of conventional weapons; 
(iii) acts of terrorism; 
(iv) military programs that could pose a threat 
to the security of the United States or its allies; or 
(v) activities undertaken specifically to cause 
significant interference with or disruption of critical 
infrastructure. 
(B) To preserve the qualitative military superiority 
of the United States. 
(C) To strengthen the United States defense industrial 
base. 
(D) To carry out the foreign policy of the United States, 
including the protection of human rights and the promotion 
of democracy. 
(E) To carry out obligations and commitments under 
international agreements and arrangements, including 
multilateral export control regimes. 
(F) To facilitate military interoperability between the 
United States and its North Atlantic Treaty Organization 
(NATO) and other close allies. 
(G) To ensure national security controls are tailored 
to focus on those core technologies and other items that 
are capable of being used to pose a serious national security 
threat to the United States. 
(3) The national security of the United States requires 
that the United States maintain its leadership in the science, 
technology, engineering, and manufacturing sectors, including 
foundational technology that is essential to innovation. Such 
leadership requires that United States persons are competitive 
in global markets. The impact of the implementation of this 
part on such leadership and competitiveness must be evaluated 
on an ongoing basis and applied in imposing controls under 
sections 1753 and 1754 to avoid negatively affecting such 
leadership. 
(4) The national security and foreign policy of the United 
States require that the United States participate in multilateral
H. R. 5515—576 
organizations and agreements regarding export controls on 
items that are consistent with the policy of the United States, 
and take all the necessary steps to secure the adoption and 
consistent enforcement, by the governments of such countries, 
of export controls on items that are consistent with such policy. 
(5) Export controls should be coordinated with the multilat-
eral export control regimes. Export controls that are multilat-
eral are most effective, and should be tailored to focus on 
those core technologies and other items that are capable of 
being used to pose a serious national security threat to the 
United States and its allies. 
(6) Export controls applied unilaterally to items widely 
available from foreign sources generally are less effective in 
preventing end-users from acquiring those items. Application 
of unilateral export controls should be limited for purposes 
of protecting specific United States national security and foreign 
policy interests. 
(7) The effective administration of export controls requires 
a clear understanding both inside and outside the United States 
Government of which items are controlled and an efficient 
process should be created to regularly update the controls, 
such as by adding or removing such items. 
(8) The export control system must ensure that it is trans-
parent, predictable, and timely, has the flexibility to be adapted 
to address new threats in the future, and allows seamless 
access to and sharing of export control information among 
all relevant United States national security and foreign policy 
agencies. 
(9) Implementation and enforcement of United States 
export controls require robust capabilities in monitoring, intel-
ligence, and investigation, appropriate penalties for violations, 
and the ability to swiftly interdict unapproved transfers. 
(10) Export controls complement and are a critical element 
of the national security policies underlying the laws and regula-
tions governing foreign direct investment in the United States, 
including controlling the transfer of critical technologies to cer-
tain foreign persons. Thus, the President, in coordination with 
the Secretary, the Secretary of Defense, the Secretary of State, 
the Secretary of Energy, and the heads of other Federal agen-
cies, as appropriate, should have a regular and robust process 
to identify the emerging and other types of critical technologies 
of concern and regulate their release to foreign persons as 
warranted regardless of the nature of the underlying trans-
action. Such identification efforts should draw upon the 
resources and expertise of all relevant parts of the United 
States Government, industry, and academia. These efforts 
should be in addition to traditional efforts to modernize and 
update the lists of controlled items under the multilateral 
export control regimes. 
(11) The authority under this part may be exercised only 
in furtherance of all of the objectives set forth in paragraphs 
(1) through (10). 
SEC. 1753. AUTHORITY OF THE PRESIDENT. 
(a) AUTHORITY.—In order to carry out the policy set forth in 
paragraphs (1) through (10) of section 1752, the President shall 
control—
H. R. 5515—577 
(1) the export, reexport, and in-country transfer of items 
subject to the jurisdiction of the United States, whether by 
United States persons or by foreign persons; and 
(2) the activities of United States persons, wherever located, 
relating to specific— 
(A) nuclear explosive devices; 
(B) missiles; 
(C) chemical or biological weapons; 
(D) whole plants for chemical weapons precursors; 
(E) foreign maritime nuclear projects; and 
(F) foreign military intelligence services. 
(b) REQUIREMENTS.—In exercising authority under this part 
to carry out the policy set forth in paragraphs (1) through (10) 
of section 1752, the President shall— 
(1) regulate the export, reexport, and in-country transfer 
of items described in subsection (a)(1) of United States persons 
or foreign persons; 
(2) regulate the activities described in subsection (a)(2) 
of United States persons, wherever located; 
(3) seek to secure the cooperation of other governments 
and multilateral organizations to impose control systems that 
are consistent, to the extent possible, with the controls imposed 
under subsection (a); 
(4) maintain the leadership of the United States in science, 
engineering, technology research and development, manufac-
turing, and foundational technology that is essential to innova-
tion; 
(5) protect United States technological advances by prohib-
iting unauthorized technology transfers to foreign persons in 
the United States or outside the United States, particularly 
with respect to countries that may pose a significant threat 
to the national security of the United States; 
(6) strengthen the United States industrial base, both with 
respect to current and future defense requirements; and 
(7) enforce the controls through means such as regulations, 
requirements for compliance, lists of controlled items, lists of 
foreign persons who threaten the national security or foreign 
policy of the United States, and guidance in a form that facili-
tates compliance by United States persons and foreign persons, 
in particular academic institutions, scientific and research 
establishments, and small- and medium-sized businesses. 
(c) APPLICATION
OF CONTROLS.—The President shall impose 
controls over the export, reexport, or in-country transfer of items 
for purposes of the objectives described in subsections (b)(1) or 
(b)(2) without regard to the nature of the underlying transaction 
or any circumstances pertaining to the activity, including whether 
such export, reexport, or in-country transfer occurs pursuant to 
a purchase order or other contract requirement, voluntary decision, 
inter-company arrangement, marketing effort, or during a joint 
venture, joint development agreement, or similar collaborative 
agreement. 
SEC. 1754. ADDITIONAL AUTHORITIES. 
(a) IN GENERAL.—In carrying out this part on behalf of the 
President, the Secretary, in consultation with the Secretary of State, 
the Secretary of Defense, the Secretary of Energy, and the heads 
of other Federal agencies as appropriate, shall—
H. R. 5515—578 
(1) establish and maintain a list of items that are controlled 
under this part; 
(2) establish and maintain a list of foreign persons and 
end-uses that are determined to be a threat to the national 
security and foreign policy of the United States pursuant to 
the policy set forth in section 1752(2)(A); 
(3) prohibit unauthorized exports, reexports, and in-country 
transfers of controlled items, including to foreign persons in 
the United States or outside the United States; 
(4) restrict exports, reexports, and in-country transfers of 
any controlled items to any foreign person or end-use listed 
under paragraph (2); 
(5) require licenses or other authorizations, as appropriate, 
for exports, reexports, and in-country transfers of controlled 
items, including— 
(A) imposing conditions or restrictions on United States 
persons and foreign persons with respect to such licenses 
or other authorizations; and 
(B) suspending or revoking such licenses or authoriza-
tions; 
(6) establish a process for an assessment to determine 
whether a foreign item is comparable in quality to an item 
controlled under this part, and is available in sufficient quan-
tities to render the United States export control of that item 
or the denial of a license ineffective, including a mechanism 
to address that disparity; 
(7) require measures for compliance with the export con-
trols established under this part; 
(8) require and obtain such information from United States 
persons and foreign persons as is necessary to carry out this 
part; 
(9) require, to the extent feasible, identification of items 
subject to controls under this part in order to facilitate the 
enforcement of such controls; 
(10) inspect, search, detain, or seize, or impose 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 trans-
ferred in violation of this part; 
(11) monitor shipments and other means of transfer; 
(12) keep the public appropriately apprised of changes in 
policy, regulations, and procedures established under this part; 
(13) appoint technical advisory committees in accordance 
with the Federal Advisory Committee Act; 
(14) create, as warranted, exceptions to licensing require-
ments in order to further the objectives of this part; 
(15) establish and maintain processes to inform 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 export; and 
(16) undertake any other action as is necessary to carry 
out this part that is not otherwise prohibited by law. 
(b) RELATIONSHIP TO IEEPA.—The authority under this part 
may not be used to regulate or prohibit under this part the export,
H. R. 5515—579 
reexport, or in-country transfer of any item that may not be regu-
lated or prohibited under section 203(b) of the International Emer-
gency Economic Powers Act (50 U.S.C. 1702(b)), except to the extent 
the President has made a determination necessary to impose con-
trols under subparagraph (A), (B), or (C) of paragraph (2) of such 
section. 
(c) COUNTRIES SUPPORTING INTERNATIONAL TERRORISM.— 
(1) COMMERCE LICENSE REQUIREMENT.— 
(A) IN GENERAL.—A license shall be required for the 
export, reexport, or in-country transfer of items, the control 
of which is implemented pursuant to subsection (a) by 
the Secretary, to a country if the Secretary of State has 
made the following determinations: 
(i) The government of such country has repeatedly 
provided support for acts of international terrorism. 
(ii) The export, reexport, or in-country transfer 
of such items could make a significant contribution 
to the military potential of such country, including 
its military logistics capability, or could enhance the 
ability of such country to support acts of international 
terrorism. 
(B) DETERMINATION
UNDER
OTHER
PROVISIONS
OF 
LAW.—A determination of the Secretary of State under 
section 620A of the Foreign Assistance Act of 1961 (22 
U.S.C. 2371), section 40 of the Arms Export Control Act 
(22 U.S.C. 2780), or any other provision of law that the 
government of a country described in subparagraph (A) 
has repeatedly provided support for acts of international 
terrorism shall be deemed to be a determination with 
respect to such government for purposes of clause (i) of 
subparagraph (A). 
(2) NOTIFICATION TO CONGRESS.— 
(A) IN GENERAL.—The Secretary of State and the Sec-
retary shall notify the Committee on Foreign Affairs of 
the House of Representatives and the Committee on 
Banking, Housing, and Urban Affairs and the Committee 
on Foreign Relations of the Senate at least 30 days before 
any license is issued as required by paragraph (1). 
(B) CONTENTS.—The Secretary of State shall include 
in the notification required under subparagraph (A)— 
(i) a detailed description of the items to be offered, 
including a brief description of the capabilities of any 
item for which a license to export, reexport, or in- 
country transfer the items is sought; 
(ii) the reasons why the foreign country, person, 
or entity to which the export, reexport, or in-country 
transfer is proposed to be made has requested the 
items under the export, reexport, or in-country 
transfer, and a description of the manner in which 
such country, person, or entity intends to use such 
items; 
(iii) the reasons why the proposed export, reexport, 
or in-country transfer is in the national interest of 
the United States; 
(iv) an analysis of the impact of the proposed 
export, reexport, or in-country transfer on the military