I
103D CONGRESS
1ST SESSION
H. R. 3534
To amend the Export Administration Act of 1979 with respect to export
controls on computers.
IN THE HOUSE OF REPRESENTATIVES
NOVEMBER 18, 1993
Mr. EDWARDS of California (for himself and Mr. COX) introduced the
following bill; which was referred to the Committee on Foreign Affairs
A BILL
To amend the Export Administration Act of 1979 with
respect to export controls on computers.
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 ‘‘Computer Equipment
and Technology Export Control Reform Act’’.
SEC. 2. ANNUAL REVIEW OF CONTROLS ON COMPUTERS.
Section 4 of the Export Administration Act of 1979
(50 U.S.C. App. 2403) is amended by adding at the end
the following new subsection:
‘‘(h) REVIEW OF EXPORT CONTROLS ON COMPUTER
EQUIPMENT AND TECHNOLOGY.—
‘‘(1) IN GENERAL.—In order to ensure that re-
quirements of validated licenses and other licenses
authorizing multiple exports are periodically removed
as computer equipment, computer communications
and networking equipment, computer software, and
related technology, that are subject to such require-
ments become obsolete with respect to the specific
objectives of the export controls requiring such li-
censes, the Secretary shall conduct periodic reviews
of such controls. The Secretary shall complete such
a review not later than 6 months after the date of
the enactment of this subsection, and not later than
the end of each 1-year period thereafter.
‘‘(2) REVIEW ELEMENTS.—In conducting each
review under paragraph (1), the Secretary shall do
the following with respect to the export controls re-
quiring a license described in paragraph (1):
‘‘(A) OBJECTIVES OF CONTROL.—The Sec-
retary shall identify the specific objectives of
the export controls, for the 12-month period be-
ginning on the date on which the review is com-
pleted, for each country for which a validated li-
cense is required. When an objective of an ex-
port control is to defer the development of a
specific capability in such country, the Sec-
retary shall specify for what period of time the
controls are expected to defer such capability.
‘‘(B) QUANTITY AND PERFORMANCE.—The
Secretary shall estimate, for the 12-month pe-
riod described in subparagraph (A), the quan-
tity and performance (measured in Composite
Theoretical Performance or other relevant per-
formance metrics) of computer systems that
must be obtained by each country for which a
validated license is required in order to defeat
the objectives of the export controls.
‘‘(C) AVAILABILITY TO CONTROLLED DES-
TINATIONS.—The Secretary shall evaluate the
effectiveness of the export controls in achieving
their specific objectives, including explicit de-
scriptions of the availability, during the 12-
month period described in subparagraph (A), to
controlled countries of computer equipment,
computer 
communications 
and 
networking
equipment, computer software, and related
technology on which the export controls are in
effect—
‘‘(i) from sources that do not control
the export of such items, and from sources
from which no effective export controls on
such items exist;
‘‘(ii) as a result of actual or potential
diversion, including potential diversion of
software over international computer or
telephone networks;
‘‘(iii) as a result of export license au-
thorizations from countries other than the
United States;
‘‘(iv) as a result of indigenous produc-
tion in controlled countries; and
‘‘(v) as a result of United States regu-
lations permitting exports to such coun-
tries of items with minimal United States
content by value.
‘‘(D) ECONOMIC IMPACT.—The Secretary
shall evaluate the economic impact, during the
12-month period described in subparagraph
(A), of the export controls on exporting compa-
nies, including estimates of lost sales, loss in
market share, and administrative overhead.
‘‘(3) INCREASE IN THRESHOLDS.—After com-
pleting each review under this subsection, the Sec-
retary shall increase, if warranted by the findings of
the review, the following export control thresholds,
consistent with the obligations of the United States
under bilateral and multilateral agreements:
‘‘(A) The performance levels at which com-
puter systems are eligible for delivery under a
distribution license.
‘‘(B) The performance levels at which com-
puter systems may be shipped under a general
license to countries other than controlled coun-
tries.
‘‘(C) The performance levels defining a
‘supercomputer’.
‘‘(D) The performance levels at which a
validated license is required for the export to a
controlled country of computer systems and pe-
ripherals, software, parts, and communications
equipment normally supplied with such com-
puter systems.
In any recommendation or publication for such in-
crease, the Secretary shall include the specific ra-
tionale for the increase.
‘‘(4) DEFAULT PROVISIONS.—If on the date by
which a review under this subsection must be com-
pleted, the review is not completed or a report on
the review has not been transmitted to the Congress
under paragraph (5), the performance levels de-
scribed in paragraph (3) then in effect, stated in
terms of Composite Theoretical Performance or
other relevant performance metrics, shall double, ef-
fective 90 days from that date. No change in regula-
tions or notice in the Federal Register shall be re-
quired to implement such increase in performance
levels.
‘‘(5) REPORT.—The Secretary shall transmit to
the Congress and to the Computer Systems Tech-
nical Advisory Committee (or successor technical ad-
visory committee) a report on the findings of each
review conducted under this subsection, addressing
each requirement set forth in paragraph (2). Within
60 days thereafter, the Computer Systems Technical
Advisory Committee (or successor technical advisory
committee) shall transmit to the Congress a concise
statement 
specifying 
its 
concurrence 
or
nonconcurrence with each matter contained in the
Secretary’s report, along with specific reasons for
such concurrence or nonconcurrence.
‘‘(6) HEARINGS.—The Secretary shall conduct
public hearings not less than once each year in order
to solicit information from all interested parties on