the export of the most sensitive dual
use items and munitions to rogue
countries such as Iran, Iraq, Syria,
Libya, Cuba, and North Korea; and
(D) not reducing existing levels of
controls on the export of sensitive
dual 
use 
items 
and 
munitions
through the creation of license-free
zones 
and 
substitute 
licensing
schemes.
(3) LICENSING REQUIREMENT.—
(A) LIST OF SENSITIVE ITEMS.—Not-
withstanding any other provision of
this title, the President, in consulta-
tion with the Secretary and the Sec-
retaries of State, Defense, and Energy
and the Director of the Arms Control
and Disarmament Agency, shall com-
pile a list of the most sensitive dual
use and munitions items the Presi-
dent wishes to deny to the countries
set forth in subparagraph (C). This
list shall indicate whether the item is
being controlled unilaterally or with
other countries and shall be pub-
lished in the Federal Register not
later than 60 days after the date of
the enactment of this Act.
(B) INDIVIDUAL VALIDATED LICENSE
REQUIREMENT.—The 
President 
shall
instruct the Secretary to require an
individual validated license for the
export to any destination of any item
on the list compiled under subpara-
graph (A).
(C) LIST OF COUNTRIES.—The coun-
tries referred to in subparagraph (A)
are Iran, Iraq, Syria, Libya, Cuba, and
North Korea.
SEC. 107. SHORT SUPPLY CONTROLS.
(a) AUTHORITY.—
(1) IN GENERAL.—In order to carry out the pol-
icy set forth in section 103(4), the President may pro-
hibit or curtail the export of any commodities subject
to the jurisdiction of the United States or exported by
any person subject to the jurisdiction of the United
States. In curtailing exports to carry out the policy
set forth in section 103(4), the President shall allocate
a portion of export licenses on the basis of factors
other than a prior history of exportation. Such factors
shall include the extent to which a country engages in
equitable trade practices with respect to United States
commodities and treats the United States equitably in
times of short supply.
(2) PUBLIC
PARTICIPATION.—Upon imposing
quantitative restrictions on exports of any commod-
ities to carry out the policy set forth in section
103(4), the Secretary shall include in a notice pub-
lished in the Federal Register with respect to such re-
strictions an invitation to all interested parties to
submit written comments within 15 days after the
date of publication on the impact of such restrictions
and the method of licensing used to implement them.
(3) LICENSE FEES.—In imposing export controls
under this section, the President’s authority shall in-
clude, but not be limited to, the imposition of export
license fees.
(b) MONITORING.—
(1) IN GENERAL.—In order to carry out the pol-
icy set forth in section 103(4), the Secretary shall
monitor exports, and contracts for exports, of any
commodity when the volume of such exports in rela-
tion to domestic supply contributes, or may contrib-
ute, to an increase in domestic prices or a domestic
shortage, and such price increase or shortage has, or
may have, a serious adverse impact on the economy
or any sector thereof. Any such monitoring shall com-
mence at a time adequate to assure that the monitor-
ing will result in a data base sufficient to enable poli-
cies to be developed, in accordance with section
103(4), to mitigate a short supply situation or serious
inflationary price rise or, if export controls are need-
ed, to permit imposition of such controls in a timely
manner. Information which the Secretary requires to
be furnished in effecting such monitoring shall be con-
fidential, except as provided in paragraph (2).
(2) REPORTS ON MONITORING.—The results of
monitoring under paragraph (1) shall, to the extent
practicable, be aggregated and included in weekly re-
ports setting forth, with respect to each item mon-
itored, actual and anticipated exports, the destination
by country, and the domestic and worldwide price,
supply, and demand. Such reports may be made
monthly if the Secretary determines that there is in-
sufficient information to justify weekly reports.
(3) CONSULTATION
WITH
SECRETARY
OF
EN-
ERGY.—The Secretary shall consult with the Sec-
retary of Energy to determine whether monitoring or
export controls under this section are warranted with
respect to exports of facilities, machinery, or equip-
ment normally and principally used, or intended to
be used, in the production, conversion, or transpor-
tation of fuels and energy (except nuclear energy), in-
cluding, but not limited to—
(A) drilling rigs, platforms, and equipment;
(B) petroleum refineries, and natural gas
processing, liquefaction, and gasification plants;
(C) facilities for production of synthetic
natural gas or synthetic crude oil;
(D) oil and gas pipelines, pumping sta-
tions, and associated equipment; and
(E) vessels for transporting oil, gas, coal,
and other fuels.
(c) PETITIONS FOR MONITORING OR CONTROLS OF
METALLIC MATERIALS.—
(1) IN GENERAL.—(A) Any entity, including a
trade association, firm, or certified or recognized
union or group of workers, that is representative of
an industry or a substantial segment of an industry
that processes metallic materials capable of being re-
cycled may transmit a written petition to the Sec-
retary requesting the monitoring of exports or the im-
position of export controls, or both, with respect to
any such material, in order to carry out the policy
set forth in section 103(4).
(B) Each petition shall be in such form as the
Secretary shall prescribe and shall contain informa-
tion in support of the action requested. The petition
shall include any information reasonably available to
the petitioner indicating that each of the criteria set
forth in paragraph (3)(A) is satisfied.
(2) PUBLICATION OF NOTICE.—Within 15 days
after receipt of any petition described in paragraph
(1), the Secretary shall publish a notice in the Fed-
eral Register. The notice shall—
(A) include the name of the material that is
the subject to the petition;
(B) include the schedule B number of the
material as set forth in the Statistical Classifica-
tion of Domestic and Foreign Commodities Ex-
ported from the United States;
(C) indicate whether the petition is request-
ing that controls or monitoring, or both, be im-
posed with respect to the exportation of such ma-
terial; and
(D) provide that interested persons shall
have a period of 30 days beginning on the date
on which the notice is published to submit to the
Secretary written data, views, or arguments,
with or without opportunity for oral presen-
tation, with respect to the matter involved.
At the request of the petitioner or any other entity de-
scribed in paragraph (1)(A) with respect to the mate-
rial which is the subject of the petition, or at the re-
quest of any entity representative of producers or ex-
porters of such material, the Secretary shall conduct
public hearings with respect to the subject of the peti-
tion, in which case the 30-day period may be ex-
tended to 45 days.
(3) DETERMINATION
OF
MONITORING
OR
CON-
TROLS.—(A) Within 45 days after the end of the 30-
or 45-day period described in paragraph (2), as the
case may be, the Secretary shall determine whether to
impose monitoring or controls, or both, on the export
of the material that is the subject of the petition in
order to carry out the policy set forth in section
103(4). In making such determination, the Secretary
shall determine whether—
(i) there has been a significant increase, in
relation to a specific period of time, in exports
of such material in relation to domestic supply
and demand;
(ii) there has been a significant increase in
domestic price of such material or a domestic
shortage of such material relative to demand;
(iii) exports of such material are as impor-
tant as any other cause of a domestic price in-
crease or shortage relative to demand found
under clause (ii);
(iv) a domestic price increase or shortage
relative to demand found under clause (ii) has
significantly adversely affected or may signifi-
cantly adversely affect the national economy or
any sector thereof, including a domestic indus-
try; and
(v) monitoring or controls, or both, are nec-
essary in order to carry out the policy set forth
in section 103(4).
(B) The Secretary shall publish in the Federal
Register a detailed statement of the reasons for the
Secretary’s determination under subparagraph (A) of
whether to impose monitoring or controls, or both, in-
cluding the findings of fact in support of that deter-
mination.
(4) PUBLICATION OF REGULATIONS.—Within 15
days after making a determination under paragraph
(3) to impose monitoring or controls on the export of
a material, the Secretary shall publish in the Federal
Register proposed regulations with respect to such
monitoring or controls. Within 30 days after the pub-
lication of such proposed regulations, and after con-
sidering any public comments on the proposed regula-
tions, the Secretary shall publish and implement final
regulations with respect to such monitoring or con-
trols.
(5) CONSOLIDATION
OF
PETITIONS.—For pur-
poses of publishing notices in the Federal Register
and scheduling public hearings pursuant to this sub-
section, the Secretary may consolidate petitions, and
responses to such petitions, which involve the same or
related materials.
(6) SUBSEQUENT
PETITIONS
ON
SAME
MATE-
RIAL.—If a petition with respect to a particular ma-
terial or group of materials has been considered in ac-
cordance with all the procedures described in this sub-
section, the Secretary may determine, in the absence
of significantly changed circumstances, that any other
petition with respect to the same material or group
of materials which is filed within 6 months after the
consideration of the prior petition has been completed
does not merit complete consideration under this sub-
section.
(7) PRECEDENCE OF PROCEDURES OVER OTHER
REVIEWS.—The procedures and time limits set forth
in this subsection with respect to a petition filed
under this subsection shall take precedence over any
review undertaken at the initiative of the Secretary
with respect to the same subject as that of the peti-
tion.
(8) TEMPORARY CONTROLS.—The Secretary may
impose monitoring or controls, on a temporary basis,
on the export of a metallic material after a petition
is filed under paragraph (1)(A) with respect to that
material but before the Secretary makes a determina-
tion under paragraph (3) with respect to that mate-
rial only if—
(A) the failure to take such temporary ac-
tions would result in irreparable harm to the en-
tity filing the petition, or to the national econ-
omy or segment thereof, including a domestic in-
dustry, and
(B) the Secretary considers such action to
be necessary to carry out the policy set forth in
section 103(4).
(9) OTHER
AUTHORITY
NOT
AFFECTED.—The
authority under this subsection shall not be construed
to affect the authority of the Secretary under any
other provision of this title, except that if the Sec-
retary determines, on the Secretary’s own initiative,
to impose monitoring or controls, or both, on the ex-
port of metallic materials capable of being recycled,
under the authority of this section, the Secretary shall
publish the reasons for such action in accordance with
paragraph (3)(A) and (B).
(10) SUBMISSION AND CONSIDERATION OF ADDI-
TIONAL
INFORMATION.—Nothing contained in this
subsection shall be construed to preclude submission
on a confidential basis to the Secretary of informa-
tion relevant to a decision to impose or remove mon-
itoring or controls under the authority of this title, or
to preclude consideration of such information by the
Secretary in reaching decisions required under this
subsection. The provisions of this paragraph shall not
be construed to affect the applicability of section
552(b) of title 5, United States Code.
(d) DOMESTICALLY PRODUCED CRUDE OIL.—
(1) PROHIBITION ON EXPORTS.—Notwithstand-
ing any other provision of this title and notwith-
standing subsection (u) of section 28 of the Mineral
Leasing Act of 1920 (30 U.S.C. 185), no domestically
produced crude oil transported by pipeline over right-
of-way granted pursuant to section 203 of the Trans-
Alaska Pipeline Authorization Act (43 U.S.C. 1652)
may, subject to paragraph (2), be exported from the
United States, except any such crude oil which—
(A) is exported to an adjacent foreign coun-
try to be refined and consumed therein in an ex-
change that—
(i) is for the same quantity of crude oil
being exported from that country to the
United States; and
(ii) results through convenience or in-
creased efficiency of transportation in lower
prices for consumers of petroleum products
in the United States as described in para-
graph (2)(A)(ii);
(B) is temporarily exported for convenience
or increased efficiency of transportation across
parts of an adjacent foreign country and reenters
the United States; or
(C) is transported to Canada, to be
consumed therein, in amounts not to exceed an
annual average of 50,000 barrels per day, in ad-
dition to exports under subparagraphs (A) and
(B), except that any ocean transportation of such
oil shall be by vessels documented under section
12106 of title 46, United States Code.
100
(2) EXCEPTIONS.—Crude oil subject to the prohi-
bition contained in paragraph (1) may be exported
only if—
(A) the President so recommends to the
Congress after making and publishing express
findings that exports of such crude oil, including
exchanges—
(i) will not diminish the total quantity
or quality of petroleum refined within,
stored within, or legally committed to be
transported to and sold within the United
States;
(ii) will, within 3 months following the
initiation of such exports or exchanges, re-
sult in—
(I) acquisition costs to the refiners
that purchase the imported crude oil
being lower than the acquisition costs
such refiners would have to pay for the
domestically produced oil in the ab-
sence of such an export or exchange,
and
(II) not less than 75 percent of
such savings in costs being reflected in
101
wholesale and retail prices of products
refined from such imported crude oil;
(iii) will be made only pursuant to
contracts which may be terminated if the
crude oil supplies of the United States are
interrupted, threatened, or diminished;
(iv) are clearly necessary to protect the
national interest; and
(v) are in accordance with the provi-
sions of this title; and
(B) the President includes such findings in
the recommendation to the Congress and the
Congress, within 60 days after receiving that rec-
ommendation, agrees to a joint resolution which
approves such exports on the basis of those find-
ings, and which is thereafter enacted into law.
(3) 
EXPORTS
UNDER
BILATERAL
AGREE-
MENTS.—Notwithstanding any other provision of this
section or any other provision of law, including sub-
section (u) of section 28 of the Mineral Leasing Act
of 1920, the President may export oil to any country
pursuant to a bilateral international oil supply
agreement entered into by the United States with such
country before June 25, 1979, or to any country pur-
102
suant to the International Emergency Oil Sharing
Plan of the International Energy Agency.
(e) REFINED PETROLEUM PRODUCTS.—
(1) EXPORT LICENSES.—In any case in which
the President determines that it is necessary to im-
pose export controls on refined petroleum products in
order to carry out the policy set forth in section
103(4), the President shall notify the Congress of that
determination. The President shall also notify the
Congress if and when the President determines that
such export controls are no longer necessary. During
any period in which a determination that such export
controls are necessary is in effect, no refined petro-
leum product may be exported except pursuant to an
export license specifically authorizing such export.
(2) NOTIFICATION
TO
CONGRESS
AND
LAY-
OVER.—(A) Not later than 5 days after an applica-
tion for a license to export any refined petroleum
product is received, the Secretary shall notify the
Congress of such application, together with the name
of the exporter, the destination of the proposed export,
and the amount and price of the proposed export.
Such notification shall be made to the chairman of
the Committee on Foreign Affairs of the House of
Representatives and the chairman of the Committee
103
on Banking, Housing, and Urban Affairs of the Sen-
ate.
(B) The Secretary may not grant such license
during the 30-day period beginning on the date on
which notification to the Congress under paragraph
(1) is received, unless the President certifies in writ-
ing to the Speaker of the House of Representatives
and the President pro tempore of the Senate that the
proposed export is vital to the national interest and
that a delay in issuing the license would adversely af-
fect that interest.
(3) EXCEPTION.—This subsection shall not apply
to—
(A) any export license application for ex-
ports to a country with respect to which histori-
cal export quotas established by the Secretary on
the basis of past trading relationships apply; or
(B) any license application for exports to a
country if exports under the license would not re-
sult in the export from the United States of more
than 250,000 barrels of refined petroleum prod-
ucts to such country in any fiscal year.
(4) DEFINITION.—For purposes of this sub-
section, the term ‘‘refined petroleum product’’ means
gasoline, kerosene, distillates, propane or butane gas,
104
diesel fuel, and residual fuel oil, that is refined within
the United States or entered for consumption within
the United States.
(5) EXTENSION OF LICENSE APPLICATION PROC-
ESSING TIME.—The Secretary may extend any time
period prescribed in section 109 to the extent nec-
essary to take into account delays in action by the
Secretary on a license application on account of the
provisions of this subsection.
(f) CERTAIN
PETROLEUM
PRODUCTS.—Petroleum
products refined in United States foreign trade zones, or
in the United States Territory of Guam, from foreign crude
oil shall be excluded from any quantitative restrictions im-
posed under this section, except that, if the Secretary finds
that a product is in short supply, the Secretary may issue
such regulations as may be necessary to limit exports.
(g) AGRICULTURAL COMMODITIES.—
(1) APPROVAL OF CONTROLS BY SECRETARY OF
AGRICULTURE.—The authority conferred by this sec-
tion shall not be exercised with respect to any agricul-
tural commodity, including fats and oils or animal
hides or skins, without the approval of the Secretary
of Agriculture. The Secretary of Agriculture shall not
approve the exercise of such authority with respect to
any such commodity during any period for which the
105
supply of such commodity is determined by the Sec-
retary of Agriculture to be in excess of the require-
ments of the domestic economy, except to the extent
the President determines that the controls on such ag-
ricultural commodities are also imposed under section
106. The Secretary of Agriculture shall, by exercising
the authority which the Secretary of Agriculture has
under other applicable provisions of law, collect data
with respect to export sales of animal hides and skins.
(2) PROTECTION OF STORED COMMODITIES FROM
FUTURE CONTROLS.—Upon approval of the Secretary,
in consultation with the Secretary of Agriculture, ag-
ricultural commodities purchased by or for use in a
foreign country may remain in the United States for
export at a later date free from any quantitative lim-
itations on export which may be imposed to carry out
the policy set forth in section 103(4) subsequent to
such approval. The Secretary may not grant such ap-
proval unless the Secretary receives adequate assur-
ance and, in conjunction with the Secretary of Agri-
culture, finds—
(A) that such commodities will eventually
be exported,
(B) that neither the sale nor export thereof
will result in an excessive drain of scarce mate-
106
rial and have a serious domestic inflationary
impact,
(C) that storage of such commodities in the
United States will not unduly limit the space
available for storage of domestically owned com-
modities, and
(D) that the purpose of such storage is to es-
tablish a reserve of such commodities for later
use, not including resale to or use by another
country.
The Secretary may issue such regulations as may be
necessary to carry out this paragraph.
(3) PROCEDURES
FOR
IMPOSING
CONTROLS.—
(A) If the President imposes export controls on any
agricultural commodity under section 106 (including
section 106(i)) or this section, the President shall im-
mediately transmit a report on such action to the
Congress, setting forth the reasons for the controls in
detail and specifying the period of time, which may
not exceed 1 year, that the controls are proposed to
be in effect. If the Congress, within 60 days after the
date of the receipt of the report, adopts a joint resolu-
tion pursuant to paragraph (4) approving the impo-
sition of the export controls, then such controls shall
remain in effect for the period specified in the report,
107
or until terminated by the President, whichever occurs
first. If the Congress, within 60 days after the date
of its receipt of such report, fails to adopt a joint res-
olution approving such controls, then such controls
shall cease to be effective upon the expiration of that
60-day period.
(B) The provisions of subparagraph (A) and
paragraph (4) shall not apply to export controls—
(i) which are extended under this title if the
controls, when imposed, were approved by the
Congress under subparagraph (A) and para-
graph (4); or
(ii) which are imposed with respect to a
country as part of the prohibition or curtailment
of all exports to that country.
(4) EXPEDITED
PROCEDURES.—(A) For pur-
poses of this paragraph, the term ‘‘joint resolution’’
means only a joint resolution the matter after the re-
solving clause of which is as follows: ‘‘That pursuant
to section 107(g)(3) of the Export Act of 1994, the
President may impose export controls as specified in
the report submitted to the Congress on lll.’’,
with the blank space being filled with the appropriate
date.
108
(B) On the day on which a report is submitted
to the House of Representatives and the Senate under
paragraph (3), a joint resolution with respect to the
export controls specified in such report shall be intro-
duced (by request) in the House by the chairman of
the Committee on Foreign Affairs, for the chairman
and the ranking minority member of the Committee,
or by Members of the House designated by the chair-
man and ranking minority member; and shall be in-
troduced (by request) in the Senate by the majority
leader of the Senate, for the chairman and the minor-
ity leader of the Senate, or by Members of the Senate
designated by the majority leader and minority lead-
er of the Senate. If either House is not in session on
the day on which such a report is submitted, the joint
resolution shall be introduced in that House, as pro-
vided in the preceding sentence, on the first day there-
after on which that House is in session.
(C) If the committee of either House to which a
joint resolution has been referred has not reported the
joint resolution at the end of 30 days after its refer-
ral, the committee shall be discharged from further
consideration of the resolution or of any other joint
resolution introduced with respect to the same matter.
109
(D) A joint resolution under this paragraph
shall be considered in the Senate in accordance with
the provisions of section 601(b)(4) of the Inter-
national Security Assistance and Arms Export Con-
trol Act of 1976. For the purpose of expediting the
consideration and passage of joint resolutions re-
ported or discharged pursuant to the provisions of
this paragraph, it shall be in order for the Committee
on Rules of the House of Representatives to present
for consideration a resolution of the House of Rep-
resentatives providing procedures for the immediate
consideration of a joint resolution under this para-
graph which may be similar, if applicable, to the pro-
cedure set forth in section 601(b)(4) of the Inter-
national Security Assistance and Arms Export Con-
trol Act of 1976.
(E) In the case of a joint resolution described in
subparagraph (A), if, before the passage by one House
of a joint resolution of that House, that House re-
ceives a resolution with respect to the same matter
from the other House, then—
(i) the procedure in that House shall be the
same as if no joint resolution has been received
from the other House; but
110
(ii) the vote on final passage shall be on the
joint resolution of the other House.
(5) COMPUTATION
OF
TIME
PERIODS.—In the
computation of the period of 60 days referred to in
paragraph (3)(A) and the period of 30 days referred
to in paragraph (4)(C), there shall be excluded the
days on which either House of Congress is not in ses-
sion because of an adjournment of more than 3 days
to a day certain or because of an adjournment of the
Congress sine die.
(h) BARTER AGREEMENTS.—
(1) EXEMPTION
FROM
CONTROLS.—The expor-
tation pursuant to a barter agreement of any com-
modities which may lawfully be exported from the
United States, for any commodities which may law-
fully be imported into the United States, may be ex-
empted, in accordance with paragraph (2), from any
quantitative limitation on exports (other than any re-
porting requirement) imposed to carry out the policy
set forth in section 103(4).
(2) CRITERIA FOR EXEMPTION.—The Secretary
shall grant an exemption under paragraph (1) if the
Secretary finds, after consultation with the appro-
priate department or agency of the United States,
that—
111
(A) for the period during which the barter
agreement is to be performed—
(i) the average annual quantity of the
commodities to be exported pursuant to the
barter agreement will not be required to sat-
isfy the average amount of such commod-
ities estimated to be required annually by
the domestic economy and will be surplus
thereto; and
(ii) the average annual quantity of the
commodities to be imported will be less than
the average amount of such commodities es-
timated to be required annually to supple-
ment domestic production; and
(B) the parties to such barter agreement
have demonstrated adequately that they intend,
and have the capacity, to perform such barter
agreement.
(3) DEFINITION.—For purposes of this sub-
section, the term ‘‘barter agreement’’ means any
agreement which is made for the exchange, without
monetary consideration, of any commodities produced
in the United States for any commodities produced
outside of the United States.