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shall provide at least one of the following forms of
relief to persons that meet the criteria in paragraph
(2):
(A) Change the control status of, or licens-
ing requirements on, all or some of the items in
question so as to eliminate the unfair impact.
(B) Selectively approve the sale of con-
trolled items so as to eliminate the unfair im-
pact.
(C) Seek multilateral support to eliminate
the source of unfair impact. If relief under this
subparagraph is chosen and if such efforts fail
to achieve multilateral support, then the Sec-
retary, not later than 330 days from the date
of the Secretary’s initiation of the assessment
under paragraph (2), shall provide other relief
pursuant to subparagraph (A) or (B) or con-
clude pursuant to paragraph (4) that the grant-
ing of such relief would create a significant risk
to United States nonproliferation, foreign pol-
icy, or national security interests.
A determination that a petitioner qualifies for relief
under paragraph (2) shall not compel the United
States to remove controls from an item that remains
subject to control by a multilateral regime.
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(4) EXCEPTIONS FROM RELIEF.—The Secretary
shall provide relief under paragraph (3) to a peti-
tioner who qualifies for relief under paragraph (2)
unless the Secretary concludes that the granting of
such relief would create a significant risk to United
States nonproliferation, foreign policy, or national
security interests. In the event the Secretary deter-
mines to grant such relief, he or she may do so un-
less the President determines that such relief would
create a significant risk to the foreign policy, non-
proliferation, or national security interests of the
United States.
(5) PROCEDURES.—
(A) PUBLICATION.—In any case in which
the President or the Secretary determines that
relief under paragraph (3) will not be granted,
notwithstanding the existence of facts that con-
stitute a basis for granting relief, the Secretary
shall publish that determination, together with
a concise statement of its basis and the esti-
mated economic impact of the decision.
(B) NOTICE OF ASSESSMENTS.—Whenever
the Secretary undertakes an assessment under
paragraph (2), the Secretary shall publish in
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the Federal Register notice of the initiation of
such assessment.
(C) PROCEDURES
FOR
MAKING
DETER-
MINATIONS.—During the conduct of an assess-
ment under this subsection, the Secretary shall
consult with other appropriate departments and
agencies concerning the assessment. The Sec-
retary shall make a determination as to whether
relief is required under paragraph (2) within
120 days after the date of the Secretary’s re-
ceipt of the petition requesting relief or the date
of the Secretary’s initiation of the assessment
(as the case may be) and shall so notify the ap-
plicant. If the Secretary has determined that
relief is appropriate, the Secretary shall, upon
making such a determination, submit the deter-
mination for review to the Department of De-
fense and other appropriate departments and
agencies for consultations regarding the find-
ings and the relief selected. If the Secretary of
Defense or other department or agency head
disagrees with the Secretary’s determination, he
or she may appeal the determination to the
President in writing, but only on the basis of
the criteria set forth in paragraph (4). The
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President shall resolve any such disagreement
so that, in all cases, not later than 150 days
after the date of the Secretary’s receipt of the
petition requesting relief or the date of the Sec-
retary’s initiation of the assessment (as the
case may be), the Secretary responds in writing
to the petitioner and submits for publication in
the Federal Register, that—
(i) unfair impact exists and—
(I) the requirement of a license
has been removed;
(II) the control status of all or
some of the items in question has
been changed so as to eliminate the
unfair impact;
(III) the sale of controlled items
has been approved so as to eliminate
the unfair impact;
(IV) export controls under this
title are to be maintained notwith-
standing the finding under paragraph
(2); or
(V) 
the 
United 
States 
rec-
ommendation to remove the license re-
quirement or change the control sta-
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tus will be submitted to a relevant
multilateral regime for consideration
for a period of not more than 180
days beginning on the date of the
publication; or
(ii) a right to relief under paragraph
(2) does not exist.
The reasons for maintaining export controls
under clause (i)(IV) shall be included in the
submission to the petitioner and the publica-
tion. In any case in which the submission for
publication is not made within the 150-day pe-
riod required by this subparagraph, the Sec-
retary may not thereafter require a license for
the export of items that are the subject of the
allegation under paragraph (2).
(D) NEGOTIATIONS TO ELIMINATE UNFAIR
IMPACT.—(i) In any case in which export con-
trols are maintained under this section pursu-
ant to paragraph (4) despite a determination of
unfair impact, the Secretary of State shall ac-
tively pursue negotiations with the governments
of the appropriate foreign countries for the pur-
pose of eliminating the unfair impact. No later
than the commencement of such negotiations,
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the Secretary of State shall notify the Congress
in writing that the Secretary of State has begun
such negotiations and why it is important that
export controls on the items involved be main-
tained to avoid a significant risk to the foreign
policy, nonproliferation, or national security in-
terests of the United States.
(ii) Whenever the Secretary of State has
reason to believe that items subject to export
controls by the United States may become
available in fact from other countries to con-
trolled countries and that such availability can
be prevented or eliminated by means of negotia-
tions with such other countries, the Secretary of
State shall promptly initiate negotiations with
the governments of such other countries to pre-
vent such foreign availability.
(6) SHARING OF INFORMATION.—Each depart-
ment or agency of the United States, including any
intelligence agency, and all contractors with any
such department or agency, shall, upon the request
of the Secretary and consistent with the protection
of intelligence sources and methods, furnish informa-
tion to the Department of Commerce concerning for-
eign availability of items subject to export controls
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under this title. Consistent with the protection of in-
telligence sources and methods and classification re-
strictions, each such department or agency shall
allow the Department of Commerce access to such
information from a laboratory or other facility with-
in such department or agency.
(7) CONGRESSIONAL
NOTIFICATION
AND
RE-
PORTING REQUIREMENTS.—The Secretary shall each
year notify the Congress of all petitions for relief
under this subsection and the status of all such peti-
tions.
(l) EXCEPTIONS FOR MEDICAL AND HUMANITARIAN
PURPOSES.—This title does not authorize controls on—
(1) medicine or medical supplies; or
(2) donations of items that are intended to
meet basic human needs, including food, educational
materials, seeds, hand tools, water resources equip-
ment, clothing and shelter materials, and basic
household supplies.
(m) SANCTITY OF EXISTING CONTRACTS AND LI-
CENSES.—
(1) IN GENERAL.—In the case of a control im-
posed under section 106 on the export of any items,
the President may not prohibit the export of those
items—
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(A) in performance of a contract, agree-
ment, or other contractual commitment entered
into before the date on which the control is ini-
tially imposed, or the date on which the Presi-
dent reports to the Congress the President’s in-
tention to impose the control, whichever date
occurs first, or
(B) under a license or other authorization
issued under this title before the date on which
the control is initially imposed, or the date on
which the President reports to the Congress the
President’s intention to impose the control,
whichever date occurs first.
(2) EXCEPTION.—The prohibition in paragraph
(1) shall not apply if the President determines and
certifies to the Congress that—
(A) a breach of the peace poses a serious
and direct threat to the strategic interest of the
United States;
(B) the prohibition of exports under each
such contract, agreement, commitment, license,
or authorization will be directly instrumental in
remedying the situation posing the direct
threat; and
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(C) the export controls will continue only
so long as the direct threat persists.
The authority of the President to make determina-
tions under this paragraph may not be delegated.
(n) PUBLICATION OF DECISIONS AND ACTIONS OF
THE SECRETARY.—
(1) IN GENERAL.—The Secretary shall publish
in the Federal Register, to the greatest extent prac-
ticable, actions, procedures, and decisions of the Sec-
retary under this title, taking into account restric-
tions on disclosure of classified or confidential infor-
mation. The Secretary shall publish in the Federal
Register calculations by the Secretary of commonly-
used control index parameters for commodities and
technologies, including all officially accepted compos-
ite theoretical performance calculations for comput-
ers and microprocessors, except in a case in which
a private party requested the calculation and asked
that it not be published.
(2) NOTICE OF REVISIONS.—Whenever the Sec-
retary makes any revision in the control index with
respect to any commodity or technology, or with re-
spect to any country or destination affected by con-
trols imposed under section 105 or section 106, the
Secretary shall publish in the Federal Register a no-
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tice of such revision and shall specify in such notice
under which authority the revision is being made.
(o) NOTIFICATION OF THE PUBLIC; CONSULTATION
WITH INDUSTRY; RECORDKEEPING.—
(1) NOTIFICATION OF THE PUBLIC.—The Sec-
retary shall keep the public fully apprised of changes
in export control policy and procedures instituted
under this title with a view to encouraging trade.
(2) CONSULTATION WITH INDUSTRY.—The Sec-
retary shall meet regularly with export advisory com-
mittees appointed under section 104(f) in order to
obtain their views on United States export control
policy and the foreign availability of commodities
and technology.
(p) EXPORT CONTROL DUTIES.—
(1) ASSIGNMENT.—The Secretary shall ensure
that at least one full-time representative of the De-
partment of Commerce stationed in the People’s Re-
public of China has duties related to the implemen-
tation of export controls under this title. These du-
ties shall include giving priority to conducting
postshipment verifications and prelicense checks,
and to using other means to ensure that United
States exports from the United States of dual use
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items are not diverted to unauthorized end uses or
end users.
(2) OTHER RESOURCES.—The Secretary shall
ensure that appropriate resources are made available
and, if necessary, new procedures established to as-
sist the representative or representatives of the De-
partment of Commerce referred to in paragraph (1)
in carrying out their duties and to ensure that sen-
sitive items are not diverted to inappropriate end
uses or end users in the People’s Republic of China.
Efforts to carry out this paragraph shall include ap-
propriate coordination with United States officials in
Hong Kong to ensure that sensitive items exported
to Hong Kong are protected from diversion.
(3) AUTHORIZATION
OF
APPROPRIATIONS.—
There are authorized to be appropriated such sums
as may be necessary to carry out paragraph (1).
(q) AUTHORIZATION FOR TECHNICAL DATA.—A li-
cense authorizing the export of any commodities or tech-
nology under this title shall also authorize the export of
operation technical data related to such commodities or
technology, if the technical level of the data does not ex-
ceed the minimum necessary to install, repair, maintain,
inspect, operate, or use the commodities or technology.
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(r) LICENSES FOR SPARE PARTS NOT REQUIRED.—
A license shall not be required under this title for replace-
ment parts which are exported to replace on a one-for-
one basis parts that were in a commodity that was lawfully
exported from the United States, unless the President de-
termines that such a license should be required for such
parts.
SEC. 115. ANNUAL REPORT.
(a) CONTENTS.—Not later than March 1 of each
year, the Secretary shall submit to the Congress a report
on the administration of this title during the preceding
calendar year. All agencies shall cooperate fully with the
Secretary in providing information for such report. Such
report shall include detailed information on the following:
(1) The implementation of the policies set forth
in section 103, including delegations of authority by
the President under section 104(d), consultations
with the export advisory committees established
under section 104(f), and any changes in the exer-
cise of the authorities contained in sections 105(a),
106(a), 107(a), and 108(a).
(2) With respect to multilateral export controls
imposed or maintained under section 105, the fol-
lowing:
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(A) Adjustments to multilateral export
controls.
(B) The exercise of the Secretary’s author-
ity under section 105(e).
(3) Determinations made under section 114(k),
the criteria used to make such determinations, the
removal of any export controls under such section,
and any evidence demonstrating a need to maintain
export 
controls 
notwithstanding 
determinations
made under paragraph (2) of section 114(k).
(4) Short supply controls and monitoring under
section 107.
(5) Organizational and procedural changes un-
dertaken in furtherance of the policies set forth in
this title, including changes to increase the efficiency
of the export licensing process and to fulfill the re-
quirements of section 109, including an accounting
of appeals received, and actions taken pursuant
thereto, under section 109(g).
(6) Violations under section 110 and enforce-
ment activities under section 113.
(7) The issuance of regulations under this title.
(8) The results, in as much detail as may be in-
cluded consistent with the strategic and political in-
terests of the United States and the need to main-
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tain the confidentiality of proprietary information, of
the reviews of the multilateral control list, and any
revisions to the list resulting from such reviews, re-
quired by section 105.
(b) COMPARATIVE REPORT ON EXPORT CONTROL
SYSTEMS AMONG COUNTRIES.—The Secretary shall in-
clude, in each annual report under subsection (a), a de-
scription of significant differences between the export con-
trol laws and regulations of the United States and its
major trade competitors, particularly as these differences
relate to the implementation of multilateral export control
regimes. The Secretary shall include—
(1) an assessment of the impact of these dif-
ferences on important interests of the United States;
(2) a description of the extent to which the ex-
ecutive branch intends to address these differences;
and
(3) a listing of unilateral controls and embar-
goes imposed by the United States that are in effect,
with a quantification of their economic impact, in-
cluding the effect of such controls and embargoes on
employment in the United States.
(c) GAO REPORT.—The Comptroller General shall
prepare and submit to the Congress, not later than 120
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days after each report under subsection (b) is submitted,
an analysis of such report.
SEC. 116. DEFINITIONS.
As used in this title:
(1) AFFILIATE.—The term ‘‘affiliate’’ includes
both governmental entities and commercial entities
that are controlled in fact by a country.
(2) ADHERENT.—An ‘‘adherent’’ to a multilat-
eral regime is a country that is a member of that
regime or that, pursuant to an international under-
standing to which the United States is a party, con-
trols exports in accordance with the criteria and
standards of that regime.
(3) AUSTRALIA GROUP.—The term ‘‘Australia
Group’’ means the multilateral regime in which the
United States participates that seeks to prevent the
proliferation of chemical and biological weapons.
(4) CHEMICAL
WEAPONS
CONVENTION.—The
term ‘‘Chemical Weapons Convention’’ refers to the
Convention on the Prohibition of the Development,
Production, Stockpiling and Use of Chemical Weap-
ons and on Their Destruction of 1992.
(5) 
COMMODITY.—The 
term 
‘‘commodity’’
means any article, natural or manmade substance,
material, software, source code, supply, or manufac-
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tured product, including inspection and test equip-
ment, and excluding technical data.
(6) CONTROL
OR
CONTROLLED.—The terms
‘‘control’’ and ‘‘controlled’’ refer to a licensing re-
quirement, a written reexport authorization require-
ment, or a prohibition on an export.
(7) CONTROL
INDEX.—The term ‘‘control
index’’ means the United States Commodity Control
Index established under section 104(b)(1).
(8) CONTROLLED COUNTRY.—The term ‘‘con-
trolled country’’ means a country to which exports
are controlled under section 105 or 106.
(9) EXPORT.—(A) The term ‘‘export’’—
(i) means—
(I) an actual shipment, transfer, or
transmission of items out of the United
States; and
(II) a transfer to any person of items
either within the United States or outside
of the United States with the knowledge or
intent that the items will be shipped,
transferred, or transmitted outside the
United States; and
(ii) includes the term ‘‘reexport’’.
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(B) The Secretary may further define the term
export by regulation to include, among other con-
cepts, that—
(i) a transfer of items in the United States
to an embassy or affiliate of a country is an ex-
port to the country,
(ii) disclosure of technology to a foreign
person is deemed to be an export to the country
of which he or she is a national, and
(iii) transfer of effective control from one
country to another over a satellite above the
earth is an export from one country to another.
(C) As used in this paragraph, the term ‘‘for-
eign person’’ means—
(i) an individual who is not a United
States citizen or an alien lawfully admitted for
permanent residence to the United States;
(ii) any corporation, partnership, business
association, society, trust, organization, or other
nongovernmental entity created or organized
under the laws of a foreign country or that has
its principal place of business outside the Unit-
ed States; and
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(iii) any governmental entity of a foreign
country that is operating as a business enter-
prise.
(10) EXPORT
CONTROL
REGIME, MULTILAT-
ERAL
EXPORT
CONTROL
REGIME, MULTILATERAL
REGIME, AND REGIME.—The terms ‘‘export control
regime’’, ‘‘multilateral export control regime’’, ‘‘mul-
tilateral regime’’, and ‘‘regime’’ each means an
international agreement or an arrangement among
two or more countries, including the United States,
a purpose of which is to coordinate national export
control policies of participating countries regarding
certain items. Such terms include the Australia
Group, the Wassenaar Arrangement, the MTCR,
and the Nuclear Supplies Group.
(11) FOREIGN
AVAILABILITY, AVAILABLE
IN
FACT
TO
CONTROLLED
COUNTRIES.—The terms
‘‘foreign availability’’ and ‘‘available in fact to con-
trolled countries’’ each include production or avail-
ability of any item from any country—
(A) in which the item is not restricted for
export to any controlled country; or
(B) in which such export restrictions are
determined by the Secretary to be ineffective.