(b) 
ADMINISTRATIVE
AND
JUDICIAL
PRO-
CEEDINGS.—This title shall not affect any administrative 
or judicial proceedings commenced or any application for 
a license made, under the Export Administration Act of 
1979, that is pending at the time this title takes effect. 
Any such proceedings, and any action on such application, 
shall continue under the Export Administration Act of 
1979 as if that Act had not been repealed. 
(c) CERTAIN DETERMINATIONS AND REFERENCES.— 
(1) STATE SPONSORS OF TERRORISM.—Any de-
termination that was made under section 6(j) of the 
Export Administration Act of 1979, and is in effect 
on the day before the effective date of this title, shall 
continue in effect as if the determination had been 
made under section 104(c) of this Act. 
(2) REFERENCE.—Any reference in any other 
provision of law to a country the government of 
which the Secretary of State has determined, for 
purposes of section 6(j) of the Export Administra-
tion Act of 1979, is a government that has repeat-
edly provided support for acts of international ter-
rorism shall be deemed to refer to a country the gov-
ernment of which the President has determined, for 
purposes of section 104(c) of this Act, is a govern-
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ment that has repeatedly provided support for acts 
of international terrorism. 
TITLE II—ANTIBOYCOTT 
PROVISIONS 
SEC. 201. SHORT TITLE. 
This title may be cited as the ‘‘Antiboycott Act’’. 
SEC. 202. POLICY. 
(a) IN GENERAL.—It is the policy of the United 
States— 
(1) to oppose restrictive trade practices or boy-
cotts fostered or imposed by foreign countries 
against other countries friendly to the United States 
or against any United States person; 
(2) to encourage and, in specified cases, require 
United States persons engaged in the export of 
goods or technology or other information to refuse to 
take actions, including furnishing information or en-
tering into or implementing agreements, which have 
the effect of furthering or supporting the restrictive 
trade practices or boycotts fostered or imposed by 
any foreign country against a country friendly to the 
United States or against any United States person; 
and 
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(3) to foster international cooperation and the 
development of international rules and institutions 
to assure reasonable access to world supplies. 
(b) PROHIBITIONS AND EXCEPTIONS.— 
(1) PROHIBITIONS.—In order to carry out the 
purposes set forth in subsection (a), the President 
shall issue regulations prohibiting any United States 
person, with respect to that person’s activities in the 
interstate or foreign commerce of the United States, 
from taking or knowingly agreeing to take any of 
the following actions with intent to comply with, fur-
ther, or support any boycott fostered or imposed by 
a foreign country against a country that is friendly 
to the United States and is not itself the object of 
any form of boycott pursuant to United States law 
or regulation: 
(A) Refusing, or requiring any other per-
son to refuse, to do business with or in the boy-
cotted country, with any business concern orga-
nized under the laws of the boycotted country, 
with any national or resident of the boycotted 
country, or with any other person, pursuant to 
an agreement with, or requirement of, or a re-
quest from or on behalf of the boycotting coun-
try (subject to the condition that the intent re-
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quired to be associated with such an act in 
order to constitute a violation of the prohibition 
is not indicated solely by the mere absence of 
a business relationship with or in the boycotted 
country, with any business concern organized 
under the laws of the boycotted country, with 
any national or resident of the boycotted coun-
try, or with any other person). 
(B) Refusing, or requiring any other per-
son to refuse, to employ or otherwise discrimi-
nate against any United States person on the 
basis of the race, religion, sex, or national ori-
gin of that person or of any owner, officer, di-
rector, or employee of such person. 
(C) Furnishing information with respect to 
the race, religion, sex, or national origin of any 
United States person or of any owner, officer, 
director, or employee of such person. 
(D) Furnishing information (other than 
furnishing normal business information in a 
commercial context, as defined by the Sec-
retary) about whether any person has, has had, 
or proposes to have any business relationship 
(including a relationship by way of sale, pur-
chase, legal or commercial representation, ship-
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ping or other transport, insurance, investment, 
or supply) with or in the boycotted country, 
with any business concern organized under the 
laws of the boycotted country, with any national 
or resident of the boycotted country, or with 
any other person that is known or believed to 
be restricted from having any business relation-
ship with or in the boycotting country. 
(E) Furnishing information about whether 
any person is a member of, has made a con-
tribution to, or is otherwise associated with or 
involved in the activities of any charitable or 
fraternal organization which supports the boy-
cotted country. 
(F) Paying, honoring, confirming, or other-
wise implementing a letter of credit which con-
tains any condition or requirement the compli-
ance with which is prohibited by regulations 
issued pursuant to this paragraph, and no 
United States person shall, as a result of the 
application of this paragraph, be obligated to 
pay or otherwise honor or implement such letter 
of credit. 
(2) EXCEPTIONS.—Regulations issued pursuant 
to paragraph (1) shall provide exceptions for— 
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(A) compliance, or agreement to comply, 
with requirements— 
(i) prohibiting the import of items 
from the boycotted country or items pro-
duced or provided, by any business concern 
organized under the laws of the boycotted 
country or by nationals or residents of the 
boycotted country; or 
(ii) prohibiting the shipment of items 
to the boycotting country on a carrier of 
the boycotted country or by a route other 
than that prescribed by the boycotting 
country or the recipient of the shipment; 
(B) compliance, or agreement to comply, 
with import and shipping document require-
ments with respect to the country of origin, the 
name of the carrier and route of shipment, the 
name of the supplier of the shipment, or the 
name of the provider of other services, except 
that, for purposes of applying any exception 
under this subparagraph, no information know-
ingly furnished or conveyed in response to such 
requirements may be stated in negative, black-
listing, or similar exclusionary terms, other 
than with respect to carriers or route of ship-
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ment as may be permitted by such regulations 
in order to comply with precautionary require-
ments protecting against war risks and confis-
cation; 
(C) compliance, or agreement to comply, in 
the normal course of business with the unilat-
eral and specific selection by a boycotting coun-
try, or a national or resident thereof, of car-
riers, insurers, suppliers of services to be per-
formed within the boycotting country, or spe-
cific items which, in the normal course of busi-
ness, are identifiable by source when imported 
into the boycotting country; 
(D) compliance, or agreement to comply, 
with export requirements of the boycotting 
country relating to shipment or transshipment 
of exports to the boycotted country, to any busi-
ness concern of or organized under the laws of 
the boycotted country, or to any national or 
resident of the boycotted country; 
(E) compliance by an individual, or agree-
ment by an individual to comply, with the immi-
gration or passport requirements of any country 
with respect to such individual or any member 
of such individual’s family or with requests for 
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information regarding requirements of employ-
ment of such individual within the boycotting 
country; and 
(F) compliance by a United States person 
resident in a foreign country, or agreement by 
such a person to comply, with the laws of the 
country with respect to the person’s activities 
exclusively therein, and such regulations may 
contain exceptions for such resident complying 
with the laws or regulations of the foreign coun-
try governing imports into such country of 
trademarked, trade-named, or similarly specifi-
cally identifiable products, or components of 
products for such person’s own use, including 
the performance of contractual services within 
that country. 
(3) LIMITATION ON EXCEPTIONS.—Regulations 
issued pursuant to paragraphs (2)(C) and (2)(F) 
shall not provide exceptions from paragraphs (1)(B) 
and (1)(C). 
(4) ANTITRUST AND CIVIL RIGHTS LAWS NOT 
AFFECTED.—Nothing in this subsection may be con-
strued to supersede or limit the operation of the 
antitrust or civil rights laws of the United States. 
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(5) EVASION.—This section applies to any 
transaction or activity undertaken by or through a 
United States person or any other person with in-
tent to evade the provisions of this section or the 
regulations issued pursuant to this subsection. The 
regulations issued pursuant to this section shall ex-
pressly provide that the exceptions set forth in para-
graph (2) do not permit activities or agreements (ex-
pressed or implied by a course of conduct, including 
a pattern of responses) otherwise prohibited, which 
are not within the intent of such exceptions. 
(c) FOREIGN POLICY CONTROLS.—In addition to the 
regulations issued pursuant to subsection (b), regulations 
issued under title I to carry out the policy set forth in 
section 102(3) shall implement the policies set forth in 
section. 
(d) REPORTS.—Regulations issued under this section 
shall require that any United States person receiving a 
request to furnish information, enter into or implement 
an agreement, or take any other action referred to in sub-
section (a) shall report that request to the Secretary of 
Commerce, together with any other information con-
cerning the request that the Secretary determines appro-
priate. The person shall also submit to the Secretary of 
Commerce a statement regarding whether the person in-
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tends to comply, and whether the person has complied, 
with the request. Any report filed pursuant to this sub-
section shall be made available promptly for public inspec-
tion and copying, except that information regarding the 
quantity, description, and value of any item to which such 
report relates may be kept confidential if the Secretary 
of Commerce determines that disclosure of that informa-
tion would place the United States person involved at a 
competitive disadvantage. The Secretary of Commerce 
shall periodically transmit summaries of the information 
contained in the reports to the Secretary of State for such 
action as the Secretary of State, in consultation with the 
Secretary of Commerce, considers appropriate to carry out 
the purposes set forth in subsection (a). 
(e) PREEMPTION.—The provisions of this section and 
the regulations issued under this section shall preempt any 
law, rule, or regulation that— 
(1) is a law, rule, or regulation of any of the 
several States or the District of Columbia, or any of 
the territories or possessions of the United States, 
or of any governmental subdivision thereof; and 
(2) pertains to participation in, compliance 
with, implementation of, or the furnishing of infor-
mation regarding restrictive trade practices or boy-
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cotts fostered or imposed by foreign countries 
against other countries. 
SEC. 203. ENFORCEMENT. 
(a) CIVIL PENALTIES.—The President may impose 
the following civil penalties on a person who violates sec-
tion 202 or any regulation issued under this section: 
(1) A fine of not more than $250,000 or an 
amount that is twice the amount of the transaction 
that is the basis of the violation with respect to 
which the penalty is imposed. 
(2) Revocation of a license issued under title I 
to the person. 
(3) A prohibition of the person’s right and abil-
ity to export or otherwise transfer outside the 
United States any good, service, or information, 
whether or not subject to controls under this Act. 
(b) PROCEDURES.—Any civil penalty under this sec-
tion may be imposed only after notice and opportunity for 
an agency hearing on the record in accordance with sec-
tions 554 through 557 of title 5, United States Code, and 
shall be subject to judicial review in accordance with chap-
ter 7 of such title. 
(c) STANDARDS FOR LEVELS OF CIVIL PENALTY.— 
The President may by regulation provide standards for es-
tablishing levels of civil penalty under this section based 
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upon the seriousness of the violation, the culpability of the 
violator, and the violator’s record of cooperation with the 
Government in disclosing the violation. 
TITLE III—SANCTIONS REGARD-
ING MISSILE PROLIFERATION 
AND 
CHEMICAL 
AND 
BIO-
LOGICAL 
WEAPONS 
PRO-
LIFERATION 
SEC. 301. MISSILE PROLIFERATION CONTROL VIOLATIONS. 
(a) VIOLATIONS BY UNITED STATES PERSONS.— 
(1) SANCTIONS.— 
(A) SANCTIONABLE ACTIVITY.—The Presi-
dent shall impose the applicable sanctions de-
scribed in subparagraph (B) if the President 
determines that a United States person know-
ingly— 
(i) exports, transfers, or otherwise en-
gages in the trade of any item on the 
MTCR Annex, in violation of the provi-
sions of section 38 (22 U.S.C. 2778) or 
chapter 7 of the Arms Export Control Act, 
title I of this Act, or any regulations or or-
ders issued under any such provisions, 
(ii) conspires to or attempts to engage 
in such export, transfer, or trade, or 
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(iii) facilitates such export, transfer, 
or trade by any other person. 
(B) SANCTIONS.—The sanctions that apply 
to a United States person under subparagraph 
(A) are the following: 
(i) If the item on the MTCR Annex 
involved in the export, transfer, or trade is 
missile equipment or technology within cat-
egory II of the MTCR Annex, then the 
President shall deny to such United States 
person, for a period of 2 years, licenses for 
the transfer of missile equipment or tech-
nology controlled under title I. 
(ii) If the item on the MTCR Annex 
involved in the export, transfer, or trade is 
missile equipment or technology within cat-
egory I of the MTCR Annex, then the 
President shall deny to such United States 
person, for a period of not less than 2 
years, all licenses for items the transfer of 
which is controlled under title I. 
(2) DISCRETIONARY SANCTIONS.—In the case 
of any determination referred to in paragraph (1), 
the President may pursue any other appropriate 
penalties under section 109 of this Act. 
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(3) WAIVER.—The President may waive the im-
position of sanctions under paragraph (1) on a per-
son with respect to a product or service if the Presi-
dent certifies to the Congress that— 
(A) the product or service is essential to 
the national security of the United States; and 
(B) such person is a sole source supplier of 
the product or service, the product or service is 
not available from any alternative reliable sup-
plier, and the need for the product or service 
cannot be met in a timely manner by improved 
manufacturing processes or technological devel-
opments. 
(b) TRANSFERS OF MISSILE EQUIPMENT OR TECH-
NOLOGY BY FOREIGN PERSONS.— 
(1) SANCTIONS.— 
(A) SANCTIONABLE ACTIVITY.—Subject to 
paragraphs (3) through (7), the President shall 
impose the applicable sanctions under subpara-
graph (B) on a foreign person if the Presi-
dent— 
(i) determines that a foreign person 
knowingly— 
(I) exports, transfers, or other-
wise engages in the trade of any 
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MTCR equipment or technology that 
contributes to the design, develop-
ment, or production of missiles in a 
country that is not an MTCR adher-
ent and would be, if it were United 
States-origin equipment or technology, 
subject to the jurisdiction of the 
United States under title I; 
(II) conspires to or attempts to 
engage in such export, transfer, or 
trade; or 
(III) 
facilitates 
such 
export, 
transfer, or trade by any other person; 
or 
(ii) has made a determination with re-
spect to the foreign person under section 
73(a) of the Arms Export Control Act. 
(B) SANCTIONS.—The sanctions that apply 
to a foreign person under subparagraph (A) are 
the following: 
(i) If the item involved in the export, 
transfer, or trade is within category II of 
the MTCR Annex, then the President shall 
deny, for a period of 2 years, licenses for 
the transfer to such foreign person of mis-
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sile equipment or technology the transfer 
of which is controlled under title I. 
(ii) If the item involved in the export, 
transfer, or trade is within category I of 
the MTCR Annex, then the President shall 
deny, for a period of not less than 2 years, 
licenses for the transfer to such foreign 
person of items the transfer of which is 
controlled under title I. 
(2) INAPPLICABILITY WITH RESPECT TO MTCR 
ADHERENTS.—Paragraph (1) does not apply with 
respect to— 
(A) any export, transfer, or trading activ-
ity that is authorized by the laws of an MTCR 
adherent, if such authorization is not obtained 
by misrepresentation or fraud; or 
(B) any export, transfer, or trade of an 
item to an end user in a country that is an 
MTCR adherent. 
(3) EFFECT
OF
ENFORCEMENT
ACTIONS
BY 
MTCR
ADHERENTS.—Sanctions set forth in para-
graph (1) may not be imposed under this subsection 
on a person with respect to acts described in such 
paragraph or, if such sanctions are in effect against 
a person on account of such acts, such sanctions 
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shall be terminated, if an MTCR adherent is taking 
judicial or other enforcement action against that 
person with respect to such acts, or that person has 
been found by the government of an MTCR adher-
ent to be innocent of wrongdoing with respect to 
such acts. 
(4) ADVISORY OPINIONS.—The President may, 
upon the request of any person, issue an advisory 
opinion to that person as to whether a proposed ac-
tivity by that person would subject that person to 
sanctions under this subsection. Any person who re-
lies in good faith on such an advisory opinion which 
states that the proposed activity would not subject 
a person to such sanctions, and any person who 
thereafter engages in such activity, may not be made 
subject to such sanctions on account of such activity. 
(5) WAIVER AND REPORT TO CONGRESS.— 
(A) WAIVER
AUTHORITY.—In any case 
other than one in which an advisory opinion has 
been issued under paragraph (4) stating that a 
proposed activity would not subject a person to 
sanctions under this subsection, the President 
may waive the application of paragraph (1) to 
a foreign person if the President determines 
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that such waiver is essential to the national se-
curity of the United States. 
(B) NOTIFICATION AND REPORT TO CON-
GRESS.—In the event that the President decides 
to apply the waiver described in subparagraph 
(A), the President shall so notify the Congress 
not less than 20 working days before issuing 
the waiver. Such notification shall include a re-
port fully articulating the rationale and cir-
cumstances which led the President to apply the 
waiver. 
(6) ADDITIONAL WAIVER.—The President may 
waive the imposition of sanctions under paragraph 
(1) on a person with respect to a product or service 
if the President certifies to the Congress that— 
(A) the product or service is essential to 
the national security of the United States; and 
(B) such person is a sole source supplier of 
the product or service, the product or service is 
not available from any alternative reliable sup-
plier, and the need for the product or service 
cannot be met in a timely manner by improved 
manufacturing processes or technological devel-
opments. 
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(7) EXCEPTIONS.—The President shall not 
apply the sanction under this subsection prohibiting 
the importation of the products of a foreign per-
son— 
(A) in the case of procurement of defense 
articles or defense services— 
(i) under existing contracts or sub-
contracts, including the exercise of options 
for production quantities to satisfy require-
ments essential to the national security of 
the United States; 
(ii) if the President determines that 
the person to which the sanctions would be 
applied is a sole source supplier of the de-
fense articles and services, that the defense 
articles or services are essential to the na-
tional security of the United States, and 
that alternative sources are not readily or 
reasonably available; or 
(iii) if the President determines that 
such articles or services are essential to the 
national security of the United States 
under defense coproduction agreements or 
NATO Programs of Cooperation; 
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